Entertainment: I am the peak

Chapter 651 Times Change

But how can box office revenue compare to the profits from the stock market?
The statement that "box office revenue has little impact on the stock price of listed companies" is both true and false. Generally speaking, whether a movie's box office is high or low, or whether it makes a profit or a loss, it does not have much impact on the stock price of listed companies.

In the current environment, it's fair to say that box office revenue below 20 billion yuan won't boost the stock price of listed companies.

However, if a company produces a record-breaking blockbuster, its impact on the stock price will be extraordinary.

Wolf Warrior 2 is such a movie.

《战狼2》6天15亿，其中4个交易日，秋天影业股价从26.5暴涨至35.65，涨幅高达34.54%。

The company's market value exceeded 71 billion yuan, marking the first time it has surpassed the 70 billion yuan mark in 18 months. The company's market value surged by 18 billion yuan in just four days, creating a stock market growth myth this year.

In just four days, it has helped countless people make money.

In retrospect, wasn't Li Qiutang's decision to increase his stock holdings by 2 million yuan half a month ago particularly prescient?
Of course, while enjoying meat in autumn, our partners can also have a sip of soup.

The co-producers, including Wanda Films and Guangxian Media, benefited from the success of "Wolf Warrior 2," and their stock prices rose by as much as 7% and as little as 3% in the past four days.

This has swept away the overall slump in film and media stocks that had been caused by the LeEco scandal a month ago.

"Are you all blind?!" Yu Dong slammed his fist on the table again, yelling at his production manager. "The first film grossed 5 million, why not invest in the second one?"

Until the beginning of this year, Autumn Pictures had been looking for co-producers for "Wolf Warrior 2". They did approach Bernard, but he preferred to give money to Hong Kong directors rather than Wu Jing.

The production manager was so badly scolded that he couldn't lift his head, but he also thought to himself, "The company has already delisted from the US stock market, so even if we invest, we won't get any benefit."

Yu Dong took a deep drag of his cigarette, exhaled slowly, and said, "From now on, all the projects in the fall should be brought to me. Don't touch them."

Yu Dong was genuinely worried that he might miss out on another "Wolf Warrior 2". Although such record-breaking films are not something that can be made on a whim, he believed that Qiu Tian had not expected "Wolf Warrior 2" to sell so well. But whether it was luck or talent, they just made it, and the stock price soared.

"What about 'The Wandering Earth'?" the manager reminded Yu Dong. The main producers of "The Wandering Earth" have stopped recruiting, leaving only Autumn Film, China Film Group, and Wanda Film Group. However, the more co-producers the better, preferably those who can bring their own resources.

Yu Dong took another drag of his cigarette. He was indeed very pessimistic about science fiction films. Although Liu Cixin had generated a lot of buzz in recent years, he still didn't think that domestic science fiction films could be done well. But now, it was Li Qiutang, the most talented commercial film director in the Chinese film industry.

The investors gave him 5 million, were they just going to let him play in the mud?
What if he manages to pull it off?

Yu Dong took another drag of his cigarette, slowly exhaled, and finally, as if making a decision, said, "Give it to him! How much does he want?"

"Co-produced, starting at 200 million."

“Give him 2000 million, no, 3000 million.”

But the production manager said, "Wouldn't that make us the fourth largest producer? Isn't that too risky?"

"The more you invest, the more you earn; even if you lose, it's only 3000 million, which I can afford." If it weren't for "Operation Mekong," "League of Gods" would have bankrupted Bona. Even after recovering, Yu Dong's gambling instincts remain unchanged.

If you want to make money, you have to be willing to take risks. Back then, he dared to be the first to take the plunge and become a private distributor, and he dared to go to Hong Kong alone to discuss films. Why doesn't he dare to invest in the uncertain future of "The Wandering Earth" now?
But his production manager then brought up another film for the fall, "Ne Zha".

Animated films are truly a hot commodity. "Ne Zha" was initiated in 15, and two years later, Almond Pictures has been trying to attract investment for it. Initially, when they heard it was a project for the fall, investors were very interested, but as soon as they learned it was an animated film, nine out of ten investors left, and one couldn't leave because his wheelchair broke.

In the fall, he told Bernard more than once that animated films had great potential and invited them to invest.

Even Li Qiutang herself personally endorsed Almond Films. However, while Yu Dong was able to invest in "The Wandering Earth" because he believed in Li Qiutang, he wouldn't invest in animated films for the same reason.

Because animated films were too unfamiliar to Dong and Berna Films, they were venturing into them without knowing the risks.

Li Qiutang, of course, would not admit that he was a prophet. He pretended, saying, "I told you all a long time ago that this film would make 30 billion. Who can you blame for not believing me?"

He didn't overstate the box office predictions initially. The company's internal assessment was that it could reach 10 billion or 11 billion, similar to "Operation Mekong." He tentatively predicted 30 billion, saying that it could at most break the record set by "The Mermaid."

But when Zhang Zhao spoke to him on the phone, he reminded him of an important issue: "The timing of Haitang International's increase in its shareholding is too sensitive. I'm worried that some people might say you are suspected of insider trading."

"I increased my holdings to stabilize the market, how did that constitute insider trading? Who the hell predicted that Wu Jing could break records!" Even if it happened again, many people would not have expected that "Wolf Warrior 2" would achieve such success.

"Last month, at least eight out of ten film and television companies across the country announced plans to increase their shareholdings. Why am I accused of insider trading? Did we make a mistake by producing a blockbuster?"

At that time, the board of directors proposed two plans to increase its shareholding: one was for Chairman Li Qiutang to provide the funds, and the other was for the company's senior executives to share the profits.

Li Qiutang knew that the executives were unwilling to spend too much money to increase their stake in the company at that time, so he simply paid for it himself. 2 million was nothing.

"Now some people in the company are saying that you're getting rich but not taking care of your subordinates."

Li Qiutang was so angry she laughed: "I've already engaged in insider trading, why are you bringing my subordinates along? Are you trying to get me arrested?"

"The company stock is there, freely traded, and I didn't stop anyone. You can buy it now." It's up 34.54% in 4 days, so you probably don't dare to chase it anymore.

It's normal for a chairman to be teased; Li Qiutang doesn't care about these rumors.

Those who dared to buy shares after seeing Li Qiutang increase his holdings last month naturally made a fortune, and they naturally stood on Li's side and spoke up for him.

The stock market was a minor matter; Zhang Zhao knew it wouldn't have much impact on Li Qiutang. He had something more important to discuss with her when he called today.

"Old Jia came to me again, saying he wanted to borrow money." Old Jia knew that Li Qiutang didn't like him, so he went directly to Zhang Zhao.

Things change. Before the collapse, LeEco was a mess, but after the collapse, it was a completely different story.

Qiu Tian has a large family and business, and lacks nothing except for her own streaming media platform.

Mr. Jia asked Qiu Tian for a loan, which was possible, but Zhang Zhao demanded that LeEco pay with their lives.

After Zhang Zhao said that, Li Qiutang was genuinely moved. It was also his fault for being too busy lately and not paying much attention to LeEco's movements.

"But Lao Jia should know that he still has cards to play, so during this period he has just been borrowing money everywhere and does not want to sell assets."

Nobody would believe that Jia Yueting has no money; it's just a matter of whether he's willing to put it out.

Li Qiutang pondered for a moment and said, "This matter needs to be handled gradually; it cannot be rushed."

“I know that even if we want to buy, they have to want to sell. I received some calls from friends a few days ago. The higher-ups have already taken notice of LeEco's problems, but they also know that we can't rush things. Jia Yueting can't escape anyway, and the higher-ups are willing to give him time to deal with it. It all depends on whether he can handle it.”

"If he manages to keep his position, he can live a better life for the rest of his days and be a wealthy idler. If he doesn't, the domestic shareholders and investors could drown him with their spittle."

(End of this chapter)