Hong Kong Stubborn - Chapter 133

At the same time, the three founders of Galaxy Image Film Company, Du Qifeng, Wei Jiahui, and You Zhida, which was just established in early 1996, were also discussing the introduction of Luo Junyan’s participation.

The demand for liquidity of film production companies is always hungry. Small and medium-sized production companies often introduce large companies such as Jiahe to invest in filming, but most of the box office profits are also distributed to the product side, that is, the investment company.

Just like Snowman Century Entertainment and Media Asia Pictures jointly invested in the new film “Flying Tiger” by Xiangjiang Doujin Productions. Xiangjiang Douren Production Co., Ltd. is equivalent to taking dry shares, and does not account for investment shares on the book. If the film is profitable, it can get 15% of the net box office income. If the film loses, it has nothing to do with the production company.

Galaxy Image also faces this problem. Finding someone to invest in the film does not have to bear the risk, but it is equivalent to working for the capital side.

If you take the same dividends as the executives, the company’s development will be very slow, and all the money will be invested by your own company. The risk is abnormally high, but the profit may also be very good.

These film studios are different from the original Snowman Century Entertainment. Most of the production companies raise the entire production team, and the annual output must be guaranteed to ensure that the team can start work at any time.

Luo Junyan’s practice of hiring someone to shoot one or two movies every year can’t be learned by others. He has completed the original accumulation, has a lot of money to produce films by himself, and at the beginning of the sharp increase in production costs, he has arranged distribution, publicity and theater, and all the proceeds of each link belong to him.

Moreover, people in the circle have to admit that Luo Junyan is lucky enough, and he is particularly good at hyping popularity. The films he made can always sell well in local and other markets, which even Jiahe’s Zou Wenhuai and He Guanchang are jealous.

Brother Long’s films can also sell well, but the production cost of a film can easily be hundreds of millions, and Luo Junyan’s total cost of a film exceeds 20 million is less. Therefore, he doesn’t need a team at all, it is enough to stir up in the circle on his own.

Du Qifeng’s impression of Luo Junyan was quite good, and the scene of kneeling down to thank Master Wang Tianlin made him still fresh in his memory. The introduction of Luo Junyan’s Snowman into shares is not just a question of financing. Galaxy Image will have a solid source of investment in the future, and there will be opportunities to enter the market in other cities.

It is not without intention for Luo Junyan to let South Korean companies invest in shares. The only thing that is debatable is that Luo Junyan sold the theater, will it affect the film’s screening?

The three founders basically agreed to introduce the Snowman system into shares, but Du Qifeng first had to talk to Luo Junyan to understand Luo Junyan’s thoughts on future development.

Johnnie To generally belongs to the kind of director who can’t let go of artistic pursuits, and is a person who has certain pursuits. Let him talk to Luo Junyan, isn’t it because the talent meets the soldiers.

Luo Junyan belongs to you who like art and I talk to you about art, and you like to benefit. I talk to you about benefits. Under the guise of revitalizing the Korean national entertainment industry, he can fool the high-ranking officials of the Korean Film Bureau for a while, making these high-ranking officials open the door to the South Korean Silver Snow Throne Entertainment. It is even more absent to buy shares in Galaxy Image. Next.

Sure enough, Du Qifeng talked to Luo Junyan for a few words, and Luo Junyan probably understood his mind. Isn’t it just the pursuit of a balance between art and commerce? People with this kind of thinking are the best to fool.

Luo Junyan also knows that a large number of shares in various entertainment companies will definitely lose more money and make less money, but one profit can exceed the loss of ten shares. The entertainment industry is such a virtue. Moreover, the Lion King is still peeing around the territory, so you can’t even bother to pee.

Luo Jun Yan Shunzui threw out the yeti-based Asian theater plan, anyway, bragging about not taxing, and fooling you about the cost. He also invited Qifeng To to visit the Throne Studios under construction in South Korea, and when the Throne Studios entertainment complex model was successful, he would promote it to Asia.

In fact, Luo Junyan decided to introduce restaurants, games and fashion goods stores to set up a movie theater in order to make up for the loss of the movie theater. This was the idea that Brother Cheng gave him. It really allowed him to expand and build in Asia on a large scale, and tens of billions of Hong Kong dollars were not enough.

Du Qifeng was also skeptical, sounding too mysterious. Luo Junyan is not enough, and he has to get some dry goods. He has discussed with sister army and is planning to establish a partner support fund to cooperate with the enclosure movement of the Silver Snow Throne.

Luo Junyan personally contributed 200 million Hong Kong dollars as the initial capital of this partner support fund, and the target of support is all companies in which the Snowman family shares. However, there are 10 places to apply for support each year. If you apply for the number of supports, you will get a free investment loan of 20 million Hong Kong dollars. ,

To put it bluntly, this means that the 20 million Hong Kong dollars will be loaned to you for one year. It is still free to sign artists for filming and recording, but it can only be used for project investment, not for company operations. At the end of the year, the principal will be returned if it is profitable. If it is lost, it will be returned as much as there is left. However, the company that loses will not be eligible to apply again in the future.

Luo Junyan also promised Du Qifeng that the amount of funds used by this support fund to support partners for free each year will not be less than 200 million. If the funds returned are less than 200 million, he will make up for it by himself. But when you apply, you have to submit the annual production plan, as well as the cost budget and profit forecast. Bian Sicong will guide various companies to do it.

Big deal, Du Qifeng has to admire Luo Junyan, which is equivalent to spending 200 million Hong Kong dollars a year to gamble.

But it is of great significance to film production companies such as Galaxy Image. Many new films do not need to distribute the bulk of the profits to the capital. This foundation allows high-quality small entertainment companies that have just started to achieve rapid development, and allows those high-quality start-ups to quickly complete the original accumulation.

In the end, South Korea’s Silver Snow Throne Entertainment Co., Ltd. invested 10 million Hong Kong dollars in exchange for a 30% stake in Galaxy Image. Du Qifeng doesn’t make any films by himself. He wants to apply for a support fund of 20 million Hong Kong dollars for the first year and devote himself to researching policies.

Soon, Snow Country Pictures Investment Co., Ltd., registered in the British Virgin Islands, was renamed Snow Country Entertainment Investment Co., Ltd. Luo Meizi withdrew from the company. Sister Army holds 60% of the shares and Luo Junyan holds 40% of the shares, turning the company into a mom-and-pop shop.

At the same time, Luo Junyan and his wife jointly injected 200 million Hong Kong dollars to establish the Ruixue Asian Partner Support Fund. The fund is affiliated to Snow Country Entertainment Investment Co., Ltd. and immediately began to receive applications for support quotas from various participating companies in order to determine the ownership of the 10 support quotas in 1997 before New Year’s Day.

The influence of this fund in the Hong Kong entertainment circle is considerable, but it is far from the influence in the Korean entertainment circle. If South Korean entertainment companies can apply for support from the fund, a company can spend 1.95 billion won in a year to complete new projects.

This has not yet reached the age of crazy devaluation of the Korean won, and the monthly salary of a second-tier star is only a few hundred thousand won. This time, no one in the Korean entertainment circle doubts Luo Junyan’s intentions anymore, and they all regard this product as a chaebol with internationalism and a top star who truly loves the entertainment industry.

Through fund support, Luo Junyan wants to unify the operating modes of these companies. When these companies get used to it, before thinking of changing paths, he will feel awkward internally.

Bian Sicong is very busy, and Snowman Century Entertainment’s work was first thrown aside. He will coach all the shares of Xiangjiang and South Korea’s joint stock companies, which are related to the planning of project establishment, capital budgeting, risk assessment, profit forecasting, and so on.

The first year of fund operation will certainly not be so smooth and regular, and there will be many hidden problems. But Luo Junyan can still afford it, and more and more entertainment companies will join his entertainment biological chain in the future. Master has said that when the benefits and the potential cannot be achieved, the reliance on the momentum is definitely not wrong.

On November 1, “Flying Tiger” was finished, and the final box office score was 17.33 million Hong Kong dollars. The publicity effect of Yingqu.com has once again withstood the test of the market, and it can start a large-scale fishing for fish.

How terrible the overall box office decline in the Xiangjiang film market this year is, you can see through “Flying Tiger”. The local box office of less than 20 million Hong Kong dollars, this result is currently ranked seventh in the annual box office list.

Xiangjiang Cinema has closed another 20 stores this year. Will it fall below the 100 mark next year? 70% of people in the circle have a pessimistic attitude. In fact, in a small place like Xiangjiang, 100 theaters are not a problem of saturation, but a problem of breaking the belly.

Since the Oriental Film Company took over the theater chain, its performance has also fallen sharply, and because of the large amount of energy involved in operating the theater chain, it has been produced and released throughout the year. There are only four movies in total, including one introduced by Luo Junyan in the past. Change”.

And only one “Big Three Dollars” released in the Spring Festival file got a box office of 25.21 million Hong Kong dollars. The other two films “Orient Express” and “The Big Robbery of the East Star” both dropped below 1 million. The overall box office The income can’t keep up with the income of a Spring Festival film in the previous two years.

Oriental Film Company is not a small start-up production company, and now it is considered to occupy a pivotal position in the Hong Kong film industry. Even it looks like this, you can imagine the situation of other production companies.

Things are going back and forth, and the foreign films introduced by Snow Knight Distribution Company have become a life-saving straw for Oriental Cinemas. Hu Xin is really lucky this time, and he can make a lot of money with five Hollywood movies. Therefore, if he keeps up with the trend and gambles in the right direction, this is the basis for making money.

According to sister army’s forecast, Oriental Cinemas should consider reducing the number of self-operated theaters next year. With the soaring property prices in Hong Kong this year, the rents of commercial properties in Hong Kong have risen too drastically. It is difficult to control the cost of theaters. Net profit will inevitably fall sharply. It is impossible to maintain so many cinemas.

Just when Luo Junyan was already looking forward to going to Qinghuan Island for vacation with sister army and children at the end of the year, Luo Zhaohui called Luo Junyan to meet. Luo Junyan thought he wanted to borrow money, so he hesitated for a while before agreeing to keep the appointment.

In the end, it had nothing to do with borrowing money, but sold it to Luo Junyan, at least on the surface.

Luo Zhaohui revealed to Luo Junyan that the Guo family reduced their holdings of a large number of shares in the “South China Daily”, and the shareholding ratio fell to a historical low. What does that mean? In other words, there is an opportunity to attack the “South China Daily” in the stock market. If Luo Junyan obtains a controlling stake in the “South China Daily”, it will definitely shake the Guo family’s foundation in the media industry.

Luo Junyan was curious about why Luo Zhaohui took the initiative to come to his house to avenge himself. This guy is definitely not a person who values ​​love and righteousness, and is typically unprofitable and early.

Luo Zhaohui explained the reason clearly. “South China Daily”, a listed company, has many land assets in Hong Kong, Taiwan and Southeast Asia. Branches and printing factories all over the country have their own land. Anyway, Luo Junyan doesn’t really want to run the “South China Daily”. When Luo Zhaohui cooperates with him, he can completely take out the land at a low price and hollow out the listed company.

During the interview between the two, Luo Junyan told Luo Zhaohui that all his money was invested in South Korea and he invested in the establishment of two funds. This is a well-known thing. Now that yachts have to be sold for money, how can there be extra funds to buy “South China Daily”?

But when Luo Junyan returned home that night, he quickly asked the army sister to check the situation in the Nanhua Daily.

The information obtained in the next few days is that the Guo family has reduced its holdings a lot, and its shareholding ratio is only 30.7%. Probably because the expectations for the stock market are not too optimistic, this is also a strategic reduction in holdings.

“South China Daily” is a behemoth in the Hong Kong stock market, with a profit of nearly 800 million Hong Kong dollars a year for the past two years. A few years ago, the Guo family spent $350 million on private acquisitions in order to obtain a controlling stake. Today, the Hong Kong stock market has risen by more than 14,000 points, continuously hitting new historical highs. It is not known how much the market value has increased.

Luo Junyan never thought about buying the South China Daily, but it would be good to mix it up, forcing the Guo family to buy the stock back at a high price. This is an excellent opportunity for revenge. Luo Junyan has been silently waiting for such an opportunity, and there are not many ways to make the opponent hurt.

Sister Army did not agree with Luo Junyan’s idea. This is an investment of more than one billion Hong Kong dollars, not children’s games. Not to mention professional matters such as acquisitions and anti-acquisitions, what should the Hong Kong stock market change from an upward trend to a downward trend? Then all of your own funds are in it. How much money do you have to support the stock price of the giant “South China Daily”.

Luo Junyan doesn’t give up, and there are not many opportunities for revenge. Now he wants to know how to make the operation safer? It doesn’t matter if all the funds are used.

Sister Army has nothing to do with him, so she can only hedge and avoid systemic risks. But the risk of hedging is also very high. Although the “South China Daily” is a constituent stock of the Hang Seng Index, if it deviates from the trend of the broader market, it will suffer even worse.

Luo Junyan decided to give it a try. Although his thoughts of revenge have faded a lot after he married sister army, it does not mean that the resentment in his heart has diminished in the slightest, especially after his father’s accidental death. Anyway, he would go wherever he came. If he didn’t work, he would lose all of the 2 billion Hong Kong dollars, and he would make a movie to make money.

Luo Zhaohui clearly knew that Luo Junyan was the same type of person as himself, so he planned such a round. After the auction of the Snowman Times Building, Luo Zhaohui came to his senses. He was attacked once by Luo Junyan’s beauty. It is not his character to have grudges and not repay him.

As long as Luo Junyan starts to absorb the shares of “South China Daily”, Luo Zhaohui will also use leveraged funds to secretly raise funds. Taking a ride this time will not only make a fortune, but also send Luo Junyan to the top of the mountain. After Luo Junyan jumps off the cliff, even if he doesn’t fall to death, he will at least become a lame disabled person.