142: Chapter 142 New Project: The Sword of the Archangel

Just then, a head poked out from the bed next to Lin Xi's.

It was a girl who was quite pretty, with an oval face, fair skin, and features that had no major flaws, but she paled in comparison to Lin Xi.

"Xixi, when are you going to let us meet your boyfriend?"

"Exactly," Fang Linlin chimed in, "You're the only one in the dorm with a boyfriend, and you're hiding him from us. Are you afraid we'll steal him?"

Lin Xi felt a bit helpless at their back-and-forth banter, smiled, and said, "There will be a chance."

"What do you mean by 'a chance'? You have to set a time." Su Ting pushed up her glasses and pressed, looking very serious.

"Yeah, exactly," the oval-faced girl poked her head out from the upper bunk and joined in the fun, "Let us help you vet him. What if he's a scumbag?"

Fang Linlin rolled her eyes at her: "He Siyi, do you know how to talk?"

"I'm just joking."

Lin Xi didn't mind; her roommate He Siyi was, to put it nicely, naive, or to put it bluntly, she spoke without thinking.

Monday morning.

In the company conference room.

Chen Fan sat at the head of the table.

The others participating in the meeting were key employees like Zhang Tao and Liu Yuan, as well as the finance officer, Li Fang.

He looked at Li Fang: "Sister Fang, how much money is in the company account now?"

"As of now, there is already 16 million."

"Have the revenue shares from the various channels from last month arrived?"

"Basically all of them have arrived, except for one. However, the share involved in this channel is very small, only a little over 100,000."

"Have Wang Jing urge them later. If they are still this slow next month, we won't use this channel in the future."

"Okay."

"Right, the company account has enough funds now, and I want to increase the registered capital from 1 million to 10 million."

Li Fang looked up and pushed up her glasses: "General Manager Chen, are you planning to use undistributed profits to increase capital, or inject cash for the capital increase?"

"What's the difference?" Chen Fan leaned back in his chair.

"If you use undistributed profits, the money in the company account remains untouched, and we just make an accounting adjustment. But there is one problem—" Li Fang paused, "Individual shareholders have to pay 20% personal income tax."

Chen Fan frowned slightly: "20%?"

"Yes. The tax bureau has regulations that converting undistributed profits into registered capital is treated as distributing dividends first and then reinvesting them, which is taxed as 'interest, dividends, and bonuses.' According to current policies, small and medium-sized high-tech enterprises can apply to pay in installments over 5 years, but the tax must be paid."

Chen Fan thought for a moment: "Does that mean I have to pay 1.8 million on the 9 million?"

"Yes, if you want to increase the registered capital from 1 million to 10 million, the added portion is 9 million. 20% of 9 million is 1.8 million." Li Fang calculated, "Of course, if you use cash to increase capital, meaning you personally transfer another sum of money to the company, then it doesn't involve personal income tax; you only need to pay stamp duty."

Personally transferring another sum of money to the company.

Chen Fan dismissed this option in his mind without even thinking about it.

The company is not short of money now, and there is no need for him to inject more capital into it.

If the company had multiple shareholders, injecting capital would be to increase shares and voting power.

But now he is the 100% shareholder of the company, and the company is entirely his to command. He doesn't need to increase shares through capital injection.

So Chen Fan decided to go with the first option—converting undistributed profits into registered capital.

In this way, he would need to pay over a million in taxes. However, over a million is nothing to the company and Chen Fan, so he would just pay it.

"Let's go with the first option. You prepare the materials first, and tell me directly if you need my cooperation."

"Okay." Li Fang nodded.

"After the registered capital is changed, Wang Jing, you start working on applying for the 'Online Culture Business License'."

"Okay." Wang Jing agreed.

The reason Chen Fan was in a hurry to change the registered capital was because he needed to apply for this "Online Culture Business License."

With this license, Chen Fan could publish his games himself.

For mobile games, it wouldn't have much impact, as it was nothing more than adding an extra distribution channel.

At this stage, mobile game sales were still mainly concentrated on various channels, so self-publishing wouldn't increase volume by much.

But Chen Fan wasn't doing it for mobile games. It was because with this license, the company could consider making browser games and PC games.

These days, although mobile games are profitable, they are still a bit behind browser games and PC games.

A decent browser game could easily generate over 10 million in revenue per month, and it was not uncommon for top-tier products to have a monthly turnover exceeding 100 million.

Not to mention PC games—like "Fantasy Westward Journey," "Zhengtu," and "Dragon Oath," these classic PC games had a monthly turnover of several hundred million, and they were still on the charts after five or six years of operation.

Therefore, Chen Fan's next step was to make browser games.

For browser games, Chen Fan's first target was "archangels sword" from the 37 gift package.

The game had already been chosen: it was the browser game "archangels sword," released by 37 Interactive Entertainment in 2014.

Although this was a browser game, after its launch in 2014, its first-month turnover exceeded 100 million.

The daily recharge on a single platform exceeded 10 million.

This performance, not to mention for a browser game, was even better than the data of many PC games.

So Chen Fan planned to choose this for the next game.

Actually, 37 Interactive Entertainment had many games, and games like "Seeking the Dao" and "Primitive the legend of mir" had higher turnover than "archangels sword."

A monthly turnover of 400 to 500 million was the norm.

But the reason for the high turnover of these games was mainly because 37 Interactive Entertainment bought traffic; if there was 400 million in turnover a month, 300 million of that was used for buying traffic and promotion.

In his previous life, when Chen Fan scrolled through Douyin, he would often see advertisements for these games; this was the promotional traffic purchased by the game developers.

The current company couldn't afford this model, nor was there any need to play that way.

Moreover, these games were from after 2020, and with current mobile phone performance, they might not even be able to run them.

At this stage, it was still necessary to prioritize quality to conquer the market.

"archangels sword" was just such a high-quality product.

Although it was a browser game, the quality was very high; even a dozen years later, few people called it a "money-grabbing browser game."

However, there was one problem with choosing this game: the copyright issue.

"archangels sword" was a browser game adapted from the Korean company Webzen's "mu online."

Therefore, if Chen Fan wanted to make it, he had to obtain the official license for "mu online."

However, Chen Fan was not worried; since they were both domestic game companies, if 37 could get the license in a few years, there was no reason his company couldn't.

When the time came, he would first contact the parent company of mu online to see how much the licensing fee would be.

Hopefully, it wouldn't be too outrageous; otherwise, he would have to find another way.