章節 213: Chapter 213: What is a Consortium?
"Very good, you did well! Keep up the good work!"
After reading the report, Xia Yu looked up and praised the eager Gavin Peters.
"Thank you for the compliment, Boss!"
Gavin Peters was thrilled by Xia Yu's praise, but he kept his head cool. He knew that the high sales of "The Legend of Qin" were not solely his achievement. The book's foundation and influence were substantial, and with the constant support from the Jiuding Daily, even if it had been published by the old Jiuding Newspaper Company, the sales wouldn't have differed much.
So, Gavin Peters remained calm and collected. This achievement was not his, merely the execution of Xia Yu's orders. His true abilities would be demonstrated with future book releases and business expansions, where his performance would truly reflect his skills.
Seeing Gavin Peters so composed and not complacent, Xia Yu nodded to himself, appreciating his restraint. After all, this was the kind of person who could lead Penguin Publishing Group to become the industry leader in the future.
Looking at the data in his hand, Xia Yu asked, "Has this data been released to the public?"
"Yes, it has been released. We worked overtime last night to prepare the report, and I coordinated with Yan Wenhan to publish the data in the Jiuding Daily for promotion," Gavin Peters quickly replied.
"Good job!"
Xia Yu nodded in approval.
Typically, Jiuding Newspaper Company and Jiuding Publishing Company are separate entities, and cooperation between them should follow proper procedures. For example, if Jiuding Publishing Company wanted to advertise in Jiuding Daily, they would need to pay for the advertisement.
However, since "The Legend of Qin" was Xia Yu's project, Yan Wenhan wouldn't put up any obstacles. After all, the money would just be transferred between departments, and any extra tax would come from Xia Yu's pocket.
Moreover, the record-breaking sales of "The Legend of Qin" itself was explosive news. Even if Gavin Peters hadn't mentioned it, a competent head of a newspaper company would arrange coverage of such news.
Of course, the most important point was that although they were two companies, they were both wholly owned by the same boss, effectively like close siblings with no external interference. Xia Yu had also mentioned that while some regulations should be followed, certain rules could be overlooked to expedite processes and promote faster development.
Consequently, Yan Wenhan, Wang Qi, Ma Tengdong, and Gavin Peters had become good friends, facilitating smooth communication and mutual assistance. This cooperation was something Xia Yu was pleased to see.
With these four companies developing, they were already forming a small consortium. Adding a bank would make it a solid regional consortium, though it might still seem limited due to the lack of diversity in industry types.
For a consortium, it's crucial that core enterprises share resources and help each other grow, presenting a united front to the outside world. A consortium, by its very definition, means pooling wealth and resources to develop together.
After spending some more time at Jiuding Publishing Company, Xia Yu encouraged Gavin Peters and then headed to Jiuding Animation Company, located in the same building.
---
"Boss!"
"Good morning, Boss!"
"Hello!"
As Xia Yu entered the company with his hands behind his back, the employees greeted him respectfully. Xia Yu responded with a friendly smile and a nod.
Xia Yu noticed a significant change in the employees' attitudes toward him. Previously, they had shown respect, but now there was a palpable sense of awe.
Upon reflection, Xia Yu realized this shift began when he started reorganizing the Hong Kong comic industry. The shutdowns of Yulang Publishing Company and Sacred Fire Publishing, along with the impact on other comic companies, had fundamentally changed employees' perceptions.
The drastic measures he took must have shocked them. They hadn't expected this seemingly harmless boss to act so decisively, especially those who had moved from other comic companies, who might have felt particularly conflicted.
Understanding this, Xia Yu didn't mind. Employees would have to adapt to him rather than the other way around.
As Xia Yu walked through the company, he passed Ma Tengdong's office. The door was open, and Ma Tengdong was deep in thought, looking troubled and distracted. He seemed so absorbed that he didn't notice Xia Yu at the door.
Xia Yu knocked on the door, and Ma Tengdong, slightly annoyed, looked up. Seeing Xia Yu, he immediately stood up, masking his irritation with a respectful demeanor and said, "Boss!"
"Mm."
"Oh? The first issue of 'Zhiyin Comic Magazine' is done?"
Approaching the desk, Xia Yu glanced at the items on Ma Tengdong's desk, raising an eyebrow and asking.
"Yes, Boss. We've just arranged for the first issue to be printed today. I was about to report this to you. Please take a look."
Ma Tengdong immediately responded and handed the magazine to Xia Yu.
"Okay, I'll take a look."
Xia Yu took the magazine and sat on the sofa, examining it with a critical eye.
Ma Tengdong started making tea, occasionally glancing at Xia Yu to gauge his reaction.
Xia Yu focused on the magazine's structure, layout, and typography rather than its content.
After a while, Xia Yu finished reviewing the magazine and smiled with satisfaction, saying, "Mm, very good. Just follow this template for printing."
Ma Tengdong sighed with relief, showing a smile as he responded, "Alright, I'll make the arrangements."
"By the way, what is the cost of this magazine, and do you have any suggestions for the pricing?"
"Boss, our magazine is designed in a 16-page format, with a total of 48 pages. Following your requirement for full-color pages, the printing cost is relatively high."
"I've calculated that for a print run of 100,000 copies, the total cost can be controlled around 1.3 HKD per copy. Costs decrease with higher print volumes. To ensure a profit, I suggest a factory price of 2.2 HKD per copy and a retail price of 3 HKD, leaving a 26.7% gross profit margin for distributors."
Ma Tengdong recited the figures confidently. He was well-versed in the details.
Hearing Ma Tengdong's proposal, Xia Yu thought for a moment and nodded in approval. He was familiar with the Hong Kong comic industry.
The "Dragon Ball" magazine by Huang Yulang was also in a 16-page format but horizontal, whereas "Zhiyin Comic Magazine" was vertical. Both had the same number of pages, so their paper costs were similar.
"Dragon Ball" was also full-color, priced at 2.5 HKD per copy, but that price had been unchanged for two years since 1976.
Thus, raising "Zhiyin Comic Magazine" to 3 HKD per copy wasn't too high. An increase of 0.5 HKD over two years seemed reasonable, and readers would likely accept it, especially given the current scarcity of available comics.
Raising the price would result in an extra 0.5 HKD gross profit per copy. With a print run of 100,000 copies, a cost of 1.3 HKD, and a factory price of 2.2 HKD, the gross profit margin on sales alone would be 40%. If print volumes increased and costs fell, the margin would be even higher.
Compared to "Dragon Ball" with a retail price of 2.5 HKD and a factory price of 1.8 HKD, with a cost around 1.4 HKD, the gross profit was only 22.2%.
However, in the comic industry, making a profit from magazines was already quite good. Additional revenue came from advertising and peripheral licensing, which were more substantial.
Xia Yu's calculation of a high gross profit for "Zhiyin Comic Magazine" was primarily due to the price increase of 0.5 HKD per copy.
"Okay, let's go with this price."
Xia Yu told Ma Tengdong, who was awaiting his response.
Ma Tengdong nodded, saying, "Yes!"
Suddenly, Xia Yu recalled Ma Tengdong's earlier troubled expression and asked, "Tengdong, I saw you looking worried earlier. Is something wrong? Any trouble?"
Ma Tengdong was surprised that Xia Yu had noticed his distress. Since Xia Yu had asked, Ma Tengdong decided to voice his concerns.
After making up his mind, Ma Tengdong braced himself and said, "It's not a major issue, but I wanted to ask when our comic magazine will be released. The current state of the Hong Kong comic industry and public opinion seems..."
Ma Tengdong hesitated at the end, unsure how to express his concerns without seeming to blame Xia Yu, as the current situation was partly due to Xia Yu's actions.
However, even though Ma Tengdong didn't elaborate further, Xia Yu understood the underlying concern.
"I see, that's the issue. I thought you were worried about something else."
Xia Yu replied casually with a smile.
Seeing Xia Yu's reaction, Ma Tengdong was puzzled. Xia Yu didn't seem surprised or worried. Did Xia Yu already have a plan?
Ma Tengdong hoped for the best, focusing intently on Xia Yu.
"I hadn't explained this clearly before. My intention was to use public opinion to clear out competitors, reshape the comic industry, and set new rules, not to destroy it."
"The plan is only partially implemented. Since 'Zhiyin Comic Magazine' is already finalized, it's time for the comic industry to get back on track."
"I can influence public opinion one way, and I can turn it around just as easily. So don't worry; just prepare for the magazine's release."
Xia Yu explained with a calm smile.
Ma Tengdong was overjoyed and relieved, realizing he had overthought the issue. Xia Yu had considered more than
he had.
As the magazine's release approached, Ma Tengdong was eager to see the results after two months of effort. He couldn't help but clench his fists in anticipation.
"Now, focus on preparing everything. If you mess up when the time comes, I'll have to hold you accountable."
Xia Yu joked with a smile.
Even though Xia Yu said it lightly, Ma Tengdong took it very seriously, responding earnestly, "Boss, don't worry. I'll be fully prepared and won't make any mistakes!"
"Mm, finalize the release plan and show it to me in a few days."
Xia Yu patted his shoulder encouragingly and added, "Yes!"
Ma Tengdong replied loudly, affirming his commitment.
"Let's go, take me to each comic studio so I can understand the progress."
After finishing his tea, Xia Yu set his cup down and stood up.
"Please follow me!"
Ma Tengdong promptly said, leading Xia Yu to the comic studios.
The first studio they visited was the "Dragon Ball" studio.
Upon entering, they saw dozens of employees engrossed in drawing, with the room filled with the 'shh-shh' sound of pens on paper.
Xia Yu and Ma Tengdong walked in, and as employees looked up and noticed them, they started to speak, but Xia Yu waved to stop them.
At that moment, Xia Yu saw Ma Rongcheng diligently working on his drawings. He approached Ma Rongcheng, watched him for a minute, and smiled with satisfaction.
Indeed, Ma Rongcheng, though still developing his skills, showed notable talent for his age, already on par with older employees.
Returning his gaze to Song Quanping, who was waiting quietly, Xia Yu nodded and said, "Let's discuss this in your office. Call the other two team leaders."
Song Quanping acknowledged and led Xia Yu and Ma Tengdong to the office.
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