In Hong Kong, we build a global business empire

Chapter 26 Dad, you actually invested in a movie?
Compared with his previous experience at Yumin Financial Company, Lin Haoran's loan experience this time was undoubtedly much smoother.

Not only did he bring collateral of equal value this time, he also demonstrated careful consideration and thorough preparation for the loan matter, which made it almost impossible for Ho Shanheng to find any flaws when assessing the risks.

Therefore, the entire loan process went extremely smoothly and the funds were in place quickly, far exceeding Lin Haoran's expectations.

When he was about to leave, Lin Haoran once again asked He Shanheng to keep the secret. His tone was sincere and firm, and he hoped that He Shanheng could keep the secret strictly, especially from his father Lin Wanan.

After hearing this, He Shanheng also made a solemn promise. He said that he fully understood and respected Lin Haoran's wishes and would never leak the news of the transaction to anyone, including Lin Wanan.

The tacit understanding and trust between the two were further deepened at this moment.

Sitting in the Mercedes-Benz, Lin Haoran leisurely instructed Li Weiguo to drive to the Deep Water Bay villa area. He couldn't wait to return to that quiet and comfortable home and enjoy the upcoming happy weekend holiday.

As his driver, Li Weiguo already knew the road to Deep Water Bay very well. Without Lin Haoran saying much, he firmly controlled the steering wheel, and the vehicle moved smoothly and quickly through the city.

On the way, Lin Haoran's attention was not attracted by the scenery outside the window. His mind was deeply immersed in the planning of financial operations.

At present, the total amount of HK$1007 million in operating funds he originally had on hand has climbed to HK$3000 million after the injection of an additional HK$4007 million loan, which undoubtedly provides solid support for his subsequent investment plans.

He thought to himself that with more than 4000 million Hong Kong dollars in funds, it would be enough to support his ambition of investing in two stocks at the same time.

Especially for the layout of Hutchison Whampoa, based on the initial investment of more than 8 million Hong Kong dollars, he expects the overall investment to be controlled within more than 30 million Hong Kong dollars.

He knew very well that with the fluctuations in the market, especially with the involvement of giants such as the charter king, Jardine Matheson and Hong Kong, the share price of Hutchison Whampoa would inevitably rise gradually.

Therefore, he had already set an upper limit for his investment to avoid the risks of blindly chasing high prices.

In his opinion, as long as he could grab more than 30 million Hong Kong dollars of Wharf's low-priced shares in this capital game, it would be a rare achievement.

His longer-term consideration is that he plans to use these funds to double his investment in Wharf Holdings.

Once successful, he will be able to easily cope with the repayment pressure of the loan from Yumin Financial Company due in a year, and may even be able to make arrangements in advance to further optimize the capital structure.

As for the remaining funds, Lin Haoran already has a clear destination in mind - to continue to increase investment in Qingzhou Yingni.

The 12.9% stake currently held is not enough to control the fate of the company.

The possibility of Cheung Kong Holdings entering the market at any time made him feel the urgency.

In order to take the initiative in future competition, he must further increase his shareholding ratio to ensure that he controls more Qingzhou Yingni shares.

Therefore, he has locked up the remaining funds for additional investment in Qingzhou Yingni, vowing to get a bigger piece of the pie in this capital feast where Chinese companies are swallowing up British companies.

When he returned home, Lin Haoran was surprised to find that his father Lin Wanan had returned early today.

"Dad, why are you back so early today?" Lin Haoran asked curiously. On weekdays, if Lin Wanan didn't have any business engagements, he would usually come home around seven in the evening.

And once he has a social engagement, it is possible that he will not be seen until after nine or even ten o'clock.

But at this moment, the clock on the wall just pointed to 5:30 in the afternoon. Such a time point was too rare for Lin Wanan.

Such an anomaly naturally made Lin Haoran feel surprised and curious, and he couldn't help but have many guesses in his mind.

"I have a movie celebration party to attend tonight, starting at seven o'clock. I was planning to come back and change into more appropriate clothes. Hao'er, why don't you come with us? It will always be beneficial to your future to make more contacts with friends in the business world." Lin Wanan replied gently.

"Movie celebration party? Dad, you actually invested in a movie?" Lin Haoran asked in surprise, obviously not expecting this.

“Haha, it’s just for fun. I invested 200,000 Hong Kong dollars in my personal name, which is a small 30% stake. It’s been exactly one month since the movie was released and the box office has exceeded 2.5 million Hong Kong dollars. I didn’t make much, but I mainly wanted to support my old friends and have some fun at the same time.” Lin Wanan explained with a smile, his words revealing his deep friendship for his old friend and his relaxed attitude towards film investment.

What Lin Wanan said was indeed true, and the profit situation he described was quite realistic.

The box office of HK$2.5 million may not seem like much, but it is already very good in this era.

But according to industry practice, movies have to pay 15% entertainment tax, with theaters taking 47%. Investors can usually only get less than 40% of the box office revenue. Even if the full 40% is taken, the actual amount they receive is only around HK$ million.

As for Lin Wanan personally, with his 30% stake, he can only get about HK$ in the end.

Investing HK$200,000 and recovering HK$100,000 seems to be a considerable profit margin on the surface. However, considering the relatively small box office base, such income is obviously difficult to support the dream of "getting rich overnight" in the face of the huge film production and operation costs.

Low-budget movies can indeed overcome numerous obstacles and win unexpected box office results with their unique reputation and creative spark.

However, behind such successful cases, there are also countless works that have been eclipsed for various reasons. They struggled in the torrent of the market and ultimately failed to escape the fate of losses.

What is particularly critical is that the scale of Hong Kong's film market is relatively limited. This reality greatly restricts the profit margins of film projects.

For example, the total box office of this year's Hong Kong annual box office champion was only more than 7 million Hong Kong dollars. This is undoubtedly a severe challenge that must be faced by those who are eager to realize their dreams of wealth through movies.

As for industry giants such as Shaw Brothers and Golden Harvest Films, despite their strong strength and abundant resources, their annual profits are often limited in the fiercely competitive film market.

Therefore, since being reborn into this world, Lin Haoran has been well aware of the situation and has never intended to devote too much energy to the turbulent waters of the entertainment industry.

In his view, the unpredictable stock market, the stable appreciation of real estate, the prosperity of import and export trade, and the solid foundation of manufacturing are his royal road to the peak of wealth.

As for making movies? That was just a small test in his spare time. Although the gorgeous scenes could bring a moment of applause and cheers, they could not reflect his pursuit of the grand blueprint of a business empire.

"Okay, Daddy, I'll go change into suitable clothes and go with you later. This celebration banquet sounds interesting, and I also want to see it." Lin Haoran also showed great interest in this celebration banquet.

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(End of this chapter)