Chapter 2041: Go Public as Soon as Possible

Time passed quickly, and before long, it was September.

Zhao Feng's one-month-old celebration was very low-key.

Zhao Fusheng did not invite many people; he only gathered the core management of the Future Group at his villa for a get-together.

The matter of buying an island had been put on the agenda. Since Fan Baobao was in confinement, she naturally couldn't go for a site inspection. It happened that Dong Chenxi was going to the United States for a meeting, so Zhao Fusheng asked her and Tan Kaixuan to help choose.

Money was not an issue; choosing a comfortable one was what mattered.

Tan Kaixuan greatly appreciated that Zhao Fusheng had finally realized how to spend money and happily agreed to the task.

Soon, they sent Zhao Fusheng and Fan Baobao a large pile of photos and materials.

"You decide."

Zhao Fusheng felt dizzy looking at the pile of materials, so he said to Fan Baobao, "Pick whichever you like. Don't worry about the money."

"Okay."

Fan Baobao knew Zhao Fusheng wasn't joking and nodded in agreement.

...

...

"When will you come and take a look?"

Jiang Wen called Zhao Fusheng.

"What do you mean?" Zhao Fusheng was a bit puzzled.

"We've finished half of 'The Bullet.' I estimate we'll finish the rest in another half year," Jiang Wen said proudly.

"..."

Zhao Fusheng was speechless. At this speed, what right did he have to be proud? At this rate, someone else would have finished filming an entire movie.

But he also knew that Jiang Wen was notorious for taking his time to produce fine work. This speed was actually pretty good. If not for his urging, Old Jiang might really have dragged it out until 2010.

"So, are you coming to visit the set?" Jiang Wen asked.

"Not interested."

Zhao Fusheng flatly refused.

But because of Old Jiang's call, he suddenly remembered that he hadn't yet found time to visit Future Films since returning.

"Why are you at the company?"

Ye Jing asked Zhao Fusheng in surprise.

He was genuinely taken aback.

Just a few days ago at Zhao Fusheng's place, during the gathering, they had talked about the company's situation. At that time, Zhao Fusheng hadn't mentioned anything about coming to inspect.

"Old Jiang called me, so I came to take a look."

Zhao Fusheng said with a smile, "That guy actually bragged to me about how fast he's been filming."

"Haha, where does he get the nerve?"

Ye Jing laughed too upon hearing this.

He was well aware of Jiang Wen's filming speed, but he hadn't expected the guy to have the audacity to call Zhao Fusheng.

Blind self-confidence!

"How's it going? Is the company doing well?" Zhao Fusheng asked Ye Jing.

Ye Jing nodded, picked up the phone on the desk, and gave a few instructions to his secretary.

Soon, the secretary came in holding a report in her hands.

"Take a look, this is the latest briefing."

Ye Jing said to Zhao Fusheng.

Zhao Fusheng nodded and picked up the report to read.

It had to be said that recently, the development of Future Film and Television was indeed very good. Whether it was the construction of the film base or the small theaters, everything was proceeding smoothly.

Most importantly, several films and TV series invested in earlier, led by "Crazy Racer," had all yielded considerable profits.

Although recovering these investments would take some time, overall, it was still quite good.

"How are things going on the Hong Kong side?" After reading for a while, Zhao Fusheng looked up and asked Ye Jing.

Since the company's situation was like this, naturally it was time to consider the issue of going public.

"We've already contacted them."

Ye Jing nodded: 'Overall, they are quite satisfied with our company.'

After all, Future Films has been profitable since its inception.

And what a stock values most is its price-to-earnings ratio.

We must understand that one of the cores of value investing is to find the intrinsic true value of all invested companies. In plain language, you need to know exactly how much this stock you intend to buy is worth.

In most cases, the market's pricing has a premium, so understanding its intrinsic value becomes particularly important. In the process of stock valuation, the price-to-earnings ratio is often the most commonly used indicator.

We all know that the formula for the price-to-earnings ratio is the stock price divided by earnings per share, or the company's total market value divided by the total annual profit.

In plain terms, it means that based on the total annual profit, if I invest in this stock, how many years will it take to recover the cost.

If the price-to-earnings ratio is over sixty times, it means that to recover my cost, it would take over sixty years to break even.

In Zhao Fusheng's understanding, let's take an example.

There is a small internet café on the street corner. The owner urgently needs 400,000 yuan. If he were to sell off the various electronic equipment, tables, and chairs separately, he might only get 500,000 yuan.

However, this internet cafe was profitable, earning a net profit of two hundred thousand yuan in the past year alone, so selling the equipment directly would obviously be a loss.

But the boss urgently needed money and couldn't wait as long as two years.

So the boss divided the internet cafe into one hundred thousand shares, intending to sell forty percent of it to his close friend, promising to distribute fifty percent of the annual net profit as dividends, while the other half would be saved for expansion.

If the deal went through, the internet cafe equipment worth two hundred thousand yuan would belong to the boss's friend, and if the internet cafe maintained its current performance with an annual net profit of two hundred thousand yuan, then forty percent of that, or eighty thousand yuan, would belong to the friend. Forty thousand yuan would be distributed as cash dividends to the friend, and the other half would be saved for expansion.

The boss's friend thought this was acceptable, paid four hundred thousand yuan to buy forty thousand shares, and became a shareholder holding forty percent of the shares.

This is the role of the price-to-earnings ratio.

The price-to-earnings ratio of Future Film and Television was undoubtedly extremely high.

After all, Zhao Fusheng's previous investments, coupled with the fact that since Ye Jing took over the company, there had been almost no failed productions, which was undoubtedly rare for a company.

"In that case, let's push forward with this matter with full force."

Zhao Fusheng said to Ye Jing.

"What, can't you wait any longer?" Ye Jing raised an eyebrow and asked Zhao Fusheng with some surprise.

Zhao Fusheng shook his head.

"It's not that I can't wait; I just think dragging it out like this is meaningless."

After thinking for a moment, Zhao Fusheng explained to Ye Jing: "We still have many things to do. The future development of Future Film and Television should be faster and better, so there's no need to keep dragging this out."

"Present our conditions to the Hong Kong Stock Exchange. If they accept, we'll go public. If not, then we won't."

Zhao Fusheng said decisively.

"Okay."

Ye Jing nodded.

Zhao Fusheng rarely made such firm decisions, but since he had already decided, Ye Jing had to support him.

Moreover, Ye Jing also knew that Zhao Fusheng was right.