Chapter 1124: Chapter 440: Conflict of Interests (Part 2)
We will operate the new company independently, fully integrating resources to create this clothing brand with effort.
This way, we can ensure Songi’s independence while sharing all of Huashang’s resources.”
Upon hearing this, Tang Song imdiately understood.
He Jingping had his eye on the IP and traffic of Songi Clothing.
Currently, Huashang Clothing operates with a dual focus on independent brands and OEM, but the OEM business is declining due to the impact of the Southeast Asian market, and the independent brands have shown no significant improvent.
Huashang Clothing, which has been seeking to go public, is looking for new growth opportunities.
Seeing Tang Song’s silence, He Zhihui chid in, “I once spoke with President Zhang from Redwood, and the model of live e-comrce plus a flexible supply chain is a popular investnt trend right now.
If our joint venture can achieve a GMV of 500 million yuan in the future, estimated at a price-to-sales (PS) ratio of 4 tis, that’s a valuation of 2 billion yuan!
Most importantly, this could accelerate the overall listing of Huashang Clothing, at which point the equity value you hold could at least triple!”
Tang Song looked at He Zhihui, “President He knows a lot.”
He Jingping patted his son’s shoulder and smiled, “Chairman Tang, Zhihui was responsible for the brand operation of Huashang Light Words, and he is experienced in this area. Later, he managed Huashang Cultural Creation and has had close collaborations with many large live e-comrce companies.
Once our joint venture is established, I would like to recomnd him as the person in charge.”
He Zhihui wore a confident smile, his voice clear, “Chairman Tang, you are also a shareholder of Huashang Clothing, and our interests are aligned.
The era of going solo is over. To beco bigger and stronger, we must integrate resources and develop collaboratively.
With Huashang Clothing’s comprehensive support, inventory risks and financial pressures will vanish, and the joint venture’s future is absolutely promising!
Huashang Clothing and Songi Clothing will also encounter new opportunities!”
After speaking, the father and son looked at Tang Song with full confidence.
No matter how you look at it, this is a great opportunity.
The listing of Huashang Clothing, in particular, is a temptation that no one can refuse.
Currently, Huashang Clothing’s net asset is 800 million yuan. Coupled with the prospects of the joint venture, the PB after listing could reach 3.55~4.55 tis, with the final market value possibly exceeding 3 billion yuan.
They didn’t think Tang Song would refuse.
As Tang Song remained silent, the private room plunged into a quiet, tense atmosphere.
Lin Muxue shifted her legs, her attention drawn in.
Although she didn’t quite understand, having worked in a financial company for so long, she could grasp the general idea.
On a personal level, she quite disliked He Zhihui and didn’t want him to have too much collaboration with Tang Song.
But she understood the stakes.
This is about going public, the ultimate goal of many companies and the most important channel for shareholders to realize their investnts.
“I’m sorry, Chairman He.” Tang Song shook his head regretfully, his tone earnest, “I have a clear direction for the future of Songi Clothing, including the positioning and developnt path of the new brand HEYI Studio. I believe Songi needs to focus on its own brand building, rather than be distracted by the joint venture.”
As he finished speaking, the atmosphere in the private room seed to freeze for a few seconds.
He Zhihui furrowed his brow, and the look in his eyes when he glanced at Tang Song changed subtly.
He Jingping’s smile stiffened montarily but quickly returned to normal.
He raised his wine glass, took a sip, and spoke with a hint of probing in his tone, “Chairman Tang, are you concerned about the control rights of the joint venture? We can discuss this to ensure your interests are protected.”
“No.” Tang Song placed his hands crossed on the table, “The joint venture model would affect my strategic layout for Songi Clothing, and it contradicts my goals, so I’m very sorry.”
Seeing this, He Zhihui couldn’t help but interject, “Chairman Tang, with the current fierce market competition, relying on just one company…”
Tang Song directly interrupted, his tone calm, “Let’s talk about the OEM business instead.”
Although what He Jingping and his son suggested was tempting, it didn’t affect him at all.
Songi Clothing carries his Growth Plan Task and must proceed step by step according to the plan.
Besides, the future is uncertain, and the current scale of the two companies is completely unequal; cooperation would only reduce Songi Clothing to a subsidiary, which is unnecessary.
He had no need to cash in by selling the company or going public.
Having been directly interrupted by Tang Song, a surge of inexplicable anger rose in He Zhihui’s heart.
This guy didn’t take him seriously at all and had a casual attitude toward him.
Clenching his teeth, He Zhihui said, “Chairman Tang, we have already contacted several live e-comrce companies in Hang City, and two of them are willing to establish a joint venture with Huashang Clothing, even considering cross-shareholding, while we currently only have one flexible production line.”
“Alright, Zhihui!” He Jingping waved his hand, still maintaining a smile, “Chairman Tang, we can take our ti discussing the cooperation, no rush.”
Tang Song cast a casual glance at He Zhihui and stated firmly, “Chairman He, I attach great importance to this matter and don’t want to delay further. Give a definitive answer.”
As a chairman and a 35% shareholder, he proactively reached out to He Jingping seeking cooperation; this was also to create value and business for Huashang Clothing.
But He Jingping clearly had his own considerations.
One aim was to find new growth opportunities for Huashang Clothing, but probably more so to train his son as a successor.
After all, at 55 years old, he wanted to groom He Zhihui to take over, so he needed to achieve significant results.
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