Chapter 432 - 376: Cash Cow - Kunpeng Games (Part 2)

"Our company’s total sales for the first quarter were 269 million US dollars, which is 1.883 billion Huaxia Coins!"

Hearing this number, Wen Meng’s hand, which was holding Wu Yun’s, trembled. She looked at him with pure adoration in her eyes.

"After deducting 20% in fees, our company’s first-quarter revenue reached 215.2 million US dollars, or 1.5064 billion Huaxia Coins!"

As he said this, Ling Yi’s voice held a trace of irrepressible excitement. If the company was making money, they were making money too!

Lu Changsheng, who was listening nearby, also clenched his fists in excitement.

"Oh, and Valve Corporation’s reply said they’ll be transferring the funds to the company’s corporate account on the 10th of this month."

"Factoring in Rongcheng City’s support for tech companies and its preferential tax policies, after deducting taxes, development costs, marketing expenses, and other fees, our net profit will be 1.4 billion Huaxia Coins!"

Wu Yun couldn’t help but nod. He knew that in his previous life, PlayerUnknown’s Battlegrounds had brought Tencent 7.596 billion in revenue in its first year.

On average, his first-quarter results weren’t as good as Tencent’s had been, but Wu Yun was still very satisfied. As long as they ramped up their marketing, there was a good chance they could match or even surpass those numbers. After all, the reports showed that PlayerUnknown’s Battlegrounds’ metrics were climbing steeply every month.

"Excellent! Allocate one hundred million Huaxia Coins for marketing in the second quarter. If you need to shoot a promotional short, don’t skimp on the special effects budget."

Seeing Wu Yun’s commanding presence, Wen Meng’s gaze filled with even more admiration and love.

"Right, while I was in the United States, you mentioned some venture capital firms made offers to invest in the company?!" Wu Yun recalled, asking about it.

Ling Yi nodded. "Yes! Several major domestic VC firms, including Tencent, have given us valuation offers!"

At this, Ling Yi started to laugh. "Aside from Tencent and Sequoia Capital, who were at least somewhat serious, the others were a complete joke. Their valuations were barely higher than our revenue!"

There are rough industry standards for valuing companies with stable income, though of course, a final, accurate valuation can only be determined after completing due diligence.

For a steadily profitable enterprise, if annual profit growth reaches 30%, the company’s valuation is typically five to ten times the previous year’s profit.

If annual profit growth is less than 30%, the valuation is four to five times the previous year’s profit.

Since Kunpeng Games has no previous year’s report, a median value based on this standard would be used.

Assuming Kunpeng Games maintained a net profit of 1.4 billion Huaxia Coins for all four quarters, that would be 5.6 billion for the year. Multiplied by five, that means Kunpeng Games’ valuation by year’s end would be at least 28 billion Huaxia Coins, or 4 billion US dollars!

Even based on the first quarter alone, that’s a 1 billion US dollar valuation. It’s a unicorn company, no question about it!

So, unless a company is desperate for cash or resources, no one in their right mind would offer up a high-income enterprise like this for a funding round. Isn’t it better to just quietly make a fortune?

Wu Yun asked about the offers from Tencent and Sequoia Capital, then put the matter out of his mind.

"President Lu, how is the mobile game development coming along?"

Lu Changsheng, who had been listening quietly, immediately perked up. He said with a chuckle, "President Wu, at our current pace, we’ll be able to finish the closed beta before May 1st."

Wu Yun thought for a moment but didn’t press further about the mobile game. Instead, he brought up NetEase. "I’ve heard from some friends that NetEase seems to be developing a similar mobile game called Wilderness Action."

"I just wonder how fast their development is coming along."

A look of realization crossed Lu Changsheng’s face. "I think I’ve heard that rumor as well, but we haven’t paid it much mind. If they insist on plagiarizing us, we have the copyrights and patents in hand. We can sue them so hard they’ll be crying for their mamas!"

Wu Yun leaned back on the sofa, a smirk playing on his lips. "It’s fine, let them copy. They want to ride our coattails? I’ll make sure the wind blows them right off a cliff. Once they release their game and the evidence is irrefutable, we’ll just get ready to absorb their player base!"

The three men burst into laughter.

After chatting for a while longer about the company’s internal affairs, Ling Yi and Lu Changsheng finally took their leave.

Only then did Wu Yun notice the strange look in Wen Meng’s eyes. He grinned and asked, "What’s wrong? Never seen anyone this handsome before?"

Wen Meng played along. "I’ve never seen anyone so handsome *and* so capable. Hey, handsome, you in the market for a wife?"

Wu Yun suddenly pulled Wen Meng into his lap, gave her a firm smack on the butt with his right hand, and then started tickling her. "You dare tease me!"

"Hahaha—I was wrong!" Wen Meng squirmed, trying to escape Wu Yun’s clutches.

After their tussle, Wen Meng lay panting on Wu Yun’s lap, her chest rising and falling with her heavy breaths.

"Al... right! Junior! That’s enough! I give up!" Wen Meng gasped. "I want to try playing your company’s game, PlayerUnknown’s Battlegrounds!"

"I used to hear some of the guys in my class talking about it all the time. I can’t believe it’s actually your company’s game!"

As she spoke, an expression of disbelief crossed Wen Meng’s face. "I had no idea a game could make so much money."

Wu Yun chuckled. "Other industries make their money off women and children. The gaming industry is one of the few that can really rake in cash from men!"

"Ask a man to spend ninety-nine Huaxia Coins on a bottle of face wash, and he might hesitate. But ask him to spend ninety-nine for a game account he wants, and he won’t think twice!"

Wu Yun couldn’t help but recall a time in his past life when he was obsessed with a certain wuxia MMO. He’d sunk a good chunk of his monthly salary into it. If he hadn’t gotten a girlfriend later and found himself short on cash, he probably never would have quit.

Even so, despite having spent tens of thousands in total, he was only considered a minorly well-known player. In front of the real whales, he was just a piece of meat who could withstand a few extra hits.

’Maybe I should experience the thrill of being a whale myself when I have the time?’ Wu Yun thought. He helped Wen Meng up and led her over to his desk.

Wu Yun’s computer was a top-of-the-line model with the best specs money could buy, and it booted up in seconds.

A moment later, Wu Yun logged into his Steam account. After a few minutes of updates, he launched the game.

"Senior, why don’t you practice the basic controls first?" Wu Yun said, clicking into the training grounds and starting to explain the controls to Wen Meng.

Wen Meng, who was usually so graceful from her dance training, seemed clumsy now. Her fingers felt as if they had sandbags tied to them, and she didn’t know which keys to press.

"RAT-A-TAT-TAT-TAT~"

"Whoa, why is it shooting at the sky!" Wen Meng cried out. She was holding down the left mouse button, and all she saw was the view on the screen jerk skyward with the recoil.

Wu Yun facepalmed. He pressed up against Wen Meng from behind, placed his hand over hers, reloaded the magazine, and fired again. This time, every bullet hit the target.

A look of dawning comprehension crossed Wen Meng’s face. "Oh, I get it now! You guys are just naturally better at this sort of thing!"

A wicked grin spread across Wu Yun’s face. He leaned down and whispered in her ear, "I’m good at a lot of things."

Wen Meng didn’t register it at first, but when she turned and saw the smile on Wu Yun’s face, she instantly understood. "You’re terrible. Is that all you think about all day?"

"I only get like this when I’m with *you*. Or would you rather I go say these things to Zhang Qiuyue?"

The moment he spoke, Wen Meng dropped the mouse, grabbed his forearm, and twisted. "You dare! Watch out, or I’ll snip it off in your sleep tonight!"

"Mwah~" Bracing a hand on the desk, Wu Yun leaned down and planted a kiss on Wen Meng’s upturned, crimson lips.

"This lipstick is sweet! I’ll have to buy you a few more in different colors," Wu Yun said with a grin, wiping his mouth.

"Hmph!" Wen Meng huffed, grabbing the mouse. Her in-game character raised an M4A1 and unloaded on a player in front of her, sending sprays of green blood everywhere.