Chapter 121 The Real Appearance Of Wa-wah 2.0 (1/2)
One day, the treasurer, Zhu Yuefang, pulled Chen Jin aside and quietly spoke to him. ”President Chen, the company funds don't seem to be sufficient.”
What?Hearing this, Chen Jin stood rooted to the ground. Insufficient funds?
Was there not a few billion in the company account just some time ago? How was it possible that such a huge sum of money could be gone so quickly?
Zhu Yuefang took out a detailed list with some reluctance and gave a report on his extravagant expenses.
One: Currently, the company employed 1,781 staff. It had three development plants and one rented office building. The monthly rent, utilities, consumables, salaries, and other expenses were over 100 million per month.
Two: Purchase of three workshops cost 55 million.
Three: Purchase of various technological patents cost 300 million.
Four: The development costs for ”Wa-wah 2.0” incurred by the project department was 350 million.
Five: Purchases of office equipment cost 420 million.
Six: 500 million was allocated for the establishment of a department for the development of the chip.
Seven: Purchase of a super calculator costs 550 million.
Eight: 250 million was allocated for the construction of a large-scale hardware R&D facility.
Other expenses cost 150 million.
Total expenses incurred were 5.025 billion.
How much did Xing Hai Technologies earn this entire time?
The total revenue had been calculated. The three million units of Wa-wah Robot 1.0 edition that were sold generated a cash flow of 1.67 billion for the company. It had been two months since the launch of the Wa-wah 1.1 in May. According to the statistics by the sales department, a total of 2.75 million units of the Wa-wah Robot 1.1 were sold. This included all editions of the 1.1 robot. The average net profit from each unit was $1,203. Multiplied by 2.75 million… The company earned another 3.3 billion during those two months. In addition, Da Mi Technologies had sold around two million Love Mi robots. This meant a total payout of 250 million to Xing Hai Technologies for the cost of its exclusive rights.
The total profits were 5.22 billion (The bonuses paid to Youying Motors and Bi Long Technologies were temporarily excluded). After subtracting the sum of expenses from the total profits, the leftover profit on paper was less than 200 million.
Chen Jin patted his chest as he let out a sigh of relief. Looking at Zhu Yuefeng, he said, ”Manager Zhu, you scared me! Why are you making a fuss about nothing? Don't we still have 200 million?”
”President Chen, I'm not scaring you. You are spending money way too fast. According to this spending rate, the available cash flow of the company would dip below the warning level within a few days. For long-term growth companies like us, it's not too safe to have funds that show up on the books as less than 500 million.”
”I think it would better if you control some of your expenses. The company is expanding too quickly. There is no reason to rush. Some expenses really should not be incurred; it's best not to spend on those items.” Zhu Yuefang knew that the boss may dislike hearing those words, but he still advised him earnestly. After all, it was a high-tech enterprise with a bright future that had been established for less than a year before its legendary rise to the top of the 500 most powerful domestic companies with the highest sales revenues. It should take a safer and more reliable route. It should have a clearer direction for its development. Hitting out in all directions to seize all the opportunities and profits becomes a suitable course of action only when the company has grown into a giant leading corporation.