<h4>Chapter 314: Holding Onto A Support</h4>
<strong>Trantor: </strong>Nyoi-Bo Studio <strong>Editor: </strong>Nyoi-Bo Studio
“President Chen, are you going to enter the entertainment industry? Can I partner with you and invest a little money in yourpany?” The first one to call him was the most famous “30 billion director” in the nation who coborated with Chen Jin many times, Shi Xiaotao. The purpose of her call was to invest in Xing Hai Entertainment. She wanted to seize this opportunity and have a slice of the profits.
Chen Jin was quite surprised. “Xiaotao, don’t you have a production studio of your own? Why do you want to invest in mypany?” Taotao Studios was definitely the top film and television studio in the country. The studiounched six movies. There was none that had a box office sales of less than 3 billion. The total box office sales for the 6 movies was more than 30 billion. Therefore, Shi Xiaotao held the title of “30 billion director.” It was obvious that this number would be refreshed and increased in the future. The potential for profits was infinite. Such a talented and capable director did not want to make her studio bigger and stronger, but instead, she wanted to invest in otherpanies.
“Because yourpany has greater potential for profits,” Shi Xiaotao said.
This went without asking. Xing Hai Entertainment Company was backed by Xing Hai Technologies. Whatever the entertainmentpany wanted, it would get, including funds, technologies, movie box offices, video clicks, and TV ratings. It was as easy as pie. Even if it’s asionally shot. Even producing the asional bad film would have no serious impact. Thepany had a strong ability to withstand risks.
Her studio looked pretty good now, but to make those movies that required investments of hundreds of millions, even billions at every turn, she would still have to pull in a lot of investment for herpany. Inevitably, arge number of profits would have to be divided. If you wanted to make more money, you would have to foot more of the expenses, but you also have to shoulder the huge risks.
When it came to the risks of making movies, as long as there were more than threerge-scale production movies whose box office sales flopped, the production houses would face the risk of copsing. This was true even for Hollywood’s eight major filmpanies, such as MGM and Warner Bros., who were film giants.
Shi Xiaotao was now the most sessful director of Z country. She was worth a lot of money. But if she used her own money to shoot a big movie with a production value of 1 billion, she would immediately be a poor man once the movie flopped. Just one major production that turned out bad could destroy all her previous achievements. Her ability to take risks was only at a score of one. It was totally possible for an outstanding director to produce a rotten film. Moreover, good movies that could not rake in box office sales were everywhere too. Shi Xiaotao did not think that her luck would endure. Sooner orter, she would produce a bad film... She dared not stake all on one attempt.
However, there was a type of filmpany that could not only make movies as they desired, but they were also unafraid of poor box office sales. Even if they made 3 films that did badly in the box office in a row (or even 5 films and above), there was no need for them to worry about thepany going bankrupt. Such filmpanies relied onrge internationalpanies and financial groups to back them up. They were extremely resistant against risk.
For example, Marvel Pictures and 20th Century Fox had the Disney Group backing them. Sony Pictures and MGM had Sony Group backing them. Warner Pictures had The Times Media backing them.
If there are no big internationalpanies acting as a support behind the scenes, independent film and television productionpanies could easily find themselves falling into a major crisis because of one or two box office losses.
Xing Hai Technologies, which had annual revenue of more than one trillion, was undoubtedly a “supergiant enterprise.” With such a bigpany backing them from behind the scenes, Xing Hai Entertainment would not copse even if they produced 100 bad films in a row. Their ability to withstand risks was extremely high. Of course Shi Xiaotao would want to invest in such apany.
Chen Jin nodded, he understood Shi Xiaotao’s considerations. Her meaning was simple: holding onto a support. “All right, Xiaotao, you can invest in my Xing Hai Entertainment. How much do you n to invest?”
“You agree? That’s great!” Shi Xiaotao was overjoyed. After some thought, she tested the waters by asking, “I want to invest 1 billion in exchange for a third of the shares, is that possible?”
“1 billion?” Chen Jin’s eyes widened. “You are actually this rich?”
Shi Xiaotao’s family was not well-to-do. In order to raise money for the production of “Wa-wah 1,” the family nearly mortgaged the property to stake all on that one movie. The total assets of her family would not exceed 100 million. But only a mere three or four years passed and now she could so easilye up with one billion. Was this cash?
“Nah, this can’t be considered very rich. All liquid capital has been withdrawn. Fortunately, the “Wa-wah 3″ at hand is nearly finished. When the movie is released, money will not be so tight.” Shi Xiaotao looked like a rich woman carefully calcting her assets.
“Ok, you’ll invest one billion then.” Chen Jin shook his head. He had to take his hat off. He hung up the phone.
But in less than five minutes, the phone rang again. He picked up the phone and saw that it was from his little aunt, He Jia. He made a sliding motion with his finger and epted the call. He immediately heard a gentle voice, “Xiao Jin, I heard that you are nning to open an entertainmentpany. This is a good thing...” This was wholly expected that He Jia also wanted to invest in hispany in exchange for shares so that she could have a slice of the profits from Xing Hai Entertainment.
As he listened to her rambling, Chen Jin facepalmed. Helpless. He felt really helpless. He could not help but ask, “Little aunt, the assets you invested in mypanies have exceeded 7 billion. You can’t use all that money even if you have 10 lives. Why do you want to earn so much? What is the meaning of making so much money?” He raised a spiritual question. Of course, he also asked himself this very same question. His own answer was this: he wanted to help more people live a happy life. So, he felt that he could pursue greater wealth.
But what about He Jia? She had so much wealth. But besides bringing happiness and satisfaction to herself, had she brought happiness and benefits to others? Obviously not much. He Jia was stunned by his question. She could not give a good answer for a while. After some time, she said, “Silly child, isn’t little aunt doing this to help you? If yourpany does well and grows big, I’ll benefit too. If you encounter difficulties or face cash flow issues, you can use the money that I gave you to tide you over... You are the one who has the skills. I don’t have any skills so I’ll entrust my money to you. Isn’t the meaning behind my having so much money your meaning too? Why are you asking me this kind of question?”
Chen Jin was stunned. He was a little entangled in her logic. After some careful thought, her argument seemed reasonable and true. “Ok, little aunt. How much do you want to invest?”
“One billion.”
“Ehhh... OK!” He ended the call with He Jia.
A momentter, his second eldest uncle also called, saying that he decided to sell hispany’s film and television department. He then withdrew the previous investment of 100 billion and wanted to put everything into Xing Hai Entertainment. He must be involved in the dream production of first-ss films and television works!
“Ok!”
By this time, it was not necessary for Xing Hai Technologies to foot the bill of the registered capital of 30 billion. But it was not over yet. Like a group of hyenas who smelled prey, he also received a number of phone calls in session. They were from Little Brother Ze, Brother Lei, and many big VIPs. Their purpose was the same: invest in Xing Hai Entertainment.
Chen Jin could not refuse in good stead. He had the title of “Sole Devourer” in the investment circle. He did not allow others to touch his Xing Hai Technologies, but he allowed others to buy shares in the non-key subsidiaries of Xing Hai Technologies. Xing Hai Entertainment was akin to a newly opened channel of investment. Naturally, the majority of investors did not want to miss this opportunity; all of them were throwing money at him. Therefore, he attracted investments of 5.5 billion with little effort.
Thest call was from Yuan Li. Chen Jin sighed in relief. It ended. The annoying and harassing calls finally stopped.
However, he heard Yuan Li saying, “Dear, I heard that you have opened a newpany. Can I invest in it?”
Chen Jin’s head was about to explode. “Why are you like this too? Can’t you keep your money and spend it for your pleasure? What’s the meaning of going back and forth with your money?”
Yuan Li pursed her lips. “I can’t finish the money and I don’t know how to invest. I lost more than 1 million by specting in stocks a few days ago. My heart hurts. It’s safe to park my money in yourpany. It’s best to invest my money in yourpany.”
He was speechless for a while. Chen Jin asked, “How much are you going to invest?”
“500 million.”
“Ok!”
The total investment he attracted reached an astonishing figure of 9 billion. Of course, Xing Hai Technologies itself had to invest some money into it in order to hold a certain percentage of shares. Chen Jin decided to round the figure up. The registered capital was changed to 10 billion. Including the investment in technology, talents, hardware, etc., the parentpany, Xing Hai Technologies ounted for 30% of the shares. The remaining 70% of the shares would be allocated amongst the other shareholders ording to the investment ratio.
To register a capital investment of ten billion was not a small move, but a move big enough to shake up the entertainment industry.
Chen Jin shook his head. “I only intended to do things on a small scale, not to make waves. Now, driven by capital, it can only be turned into a giant. The entertainment industry will be turned upside down.”