1982 Started from Hong Kong

Chapter 292 Expansion
1859 years.

A businessman named Edwin Drake discovered oil in Pennsylvania.

It is easy to transport, more efficient than coal, and has a wider range of uses.

Oil is rapidly becoming a necessity around the world.

But the price of oil never goes up.

In order to make profits, companies are frantically mining, pushing their own prices to the lowest level and competing fiercely.

Suddenly one day everyone figured it out.

Why are we fighting each other? Shouldn't we unite and form an organization so we can raise oil prices as much as we want?

We can even force the government to reduce or exempt taxes. If you don't reduce taxes, we will unite and not exploit your country's oil.

"So the three giants of the oil market met secretly in Scotland and signed a non-war agreement. Later, another four major companies joined them. Together, the seven companies formed a secret alliance that not only monopolized almost all the oil extraction rights in the world, but also obtained 85% of the world's oil reserves."

In the night breeze, Ye Zhiming told Zhai Yuan a legend about the oil industry: "Later, Italy's national oil company also wanted to join in to share a piece of the pie, but all seven companies rejected it, so Italy cursed these seven companies as the Seven Sisters, and the name spread. The Seven Sisters once dominated the international oil market for more than a decade, controlling oil pricing and sales channels."

"What the Seven Sisters did is called a cartel in economics. Once competition begins, the overall benefits of the industry will inevitably decline. Therefore, practitioners must work together. Although this will cause losses to the market and consumers, it will only benefit the practitioners."

Ye Zhiming continued, "If you want to make movies, you shouldn't just produce good works to compete with Jiahe and New One City. Wouldn't that be cheapening the audience who bought tickets to the theater? There are only six words to do business: money, money, and money! First, build your CD distribution channels, and then force Jiahe and New One City to merge into Jiuyi Entertainment. Then you can dominate the local film market."

"Do you know how much the foreigners are charging now? The entertainment tax for making a movie alone is 17.5%, and there are also various profits tax, value-added tax, stamp duty... A foreigner from the tax department on the gambling boat told me that Hong Kong films are now an important source of tax revenue for the government. In addition to collecting fees from theaters and film companies, they also collect fees from entertainment companies, actors and singers. Why should they be given this money?"

"If you really become the biggest, you can negotiate pricing power with the foreigners. High taxes? Then everyone's movies will only be sold overseas. Whether it's in theaters or on your discs, the Hong Kong market won't be able to see a single movie scene... Little brother, do you understand what I mean?"

…………

Ye Zhiming used the example of the seven sisters to explain a simple and easy-to-understand truth.

In business, harmony is the most important thing.

However, the prerequisite is to have the strength and means to negotiate peace.

Otherwise, everyone understands why Ye Zhiming's Colorful Pictures and Lianhua Cinema Chain were taken away by others.

"It depends on how effective the CD can be."

Zhai Yuan sat in his office and pondered for a while, then patted Zhou Huimin's hips and said, "Go, call Shi Nansheng in for me."

Shi Nansheng walked in quickly.

"Boss, are you looking for me?"

"Please contact Zou Wenhuai and Lei Juekun and ask them if Jiahe and New One City are willing to sell?"

Shi Nansheng's expression froze instantly.

Is the stock market really that profitable?
Looking at the boss's confident look now, the answer seems obvious.

mid-October.

After the Plaza Accord was declared successful, the Japanese yen exchange rate went through a cooling-off period of half a month.

Just as November began, the foreign exchange dam dug by the Japanese suddenly broke, and the appreciation of the Japanese yen was like a wild dog that had broken free from its reins, running all the way.

Just a few days.

Even the most conservative Japanese market saw the yen appreciate from 216 to 207, continuing to rise at a rate of almost one dollar a day.

The Japanese government anxiously tried to stabilize the exchange rate, but to no avail.

When Zhai Yuan woke up, he found several hundred million more in his account. He paid off the debts owed to Ye Zhiming and the bank, and still had more than 800 million in hot money in his hands.

We have officially entered the era of billions of voices.

Shi Nansheng calmed himself down and said, "New One City is in financial trouble right now, so it's still possible. But Jiahe is booming right now, so I'm afraid they won't agree... How would Mr. Zhai like to negotiate the acquisition?"

"Company operations, actor contracts, theater chain holdings, including all the film copyrights of the two companies over the years."

Zhai Yuan explained the acquisition plan point by point, and Shi Nansheng frowned as he listened.

This is not how you play with money. Jiahe is a non-listed company, and the power of life and death lies in Zou Wenhuai's hands.

Even if Boss Zou is short of money, he will turn to his old friend Li Jiacheng for help. There is no reason for him to let the equity fall into Zhai Yuan's hands.

……

Shi Nansheng went out at noon.

Two hours later he came back covered in dust.

She shook her head at Zhai Yuan and said, "Boss Zou asked if you were drunk?"

"Drop! What else did you say?"

"Jiahe will give you a lower price, 1.5 billion Hong Kong dollars."

"1.5 billion? Raymond Chow really thinks highly of his company. I actually suspect he's just drunk."

Zhai Yuan rolled his eyes, knowing that Jiahe had no hope of reaching an agreement, and asked again, "What did Lei Juekun say?"

Shi Nansheng nodded slightly: "I have discussed with Boss Lei and he is willing to sell. But now New One City is just an empty shell, Li Xiuxian's Universal Film Company doesn't have many talents, Chen Xunqi and Li Ying's Yongjia Film Company is so-so, and only the Silver Princess's cinema chain is somewhat attractive."

Zhai Yuan asked, "I heard Chen Xunqi is a versatile person."

"Yes. He is a good director, actor, producer, and distributor. In particular, he learned film music from Wang Fuling. Before he founded Yongjia Film Company, he participated in the production of more than 80% of the music for Hong Kong films, so he has a wide network of contacts."

Shi Nansheng introduced Chen Xunqi and said, "He used to be the head of the distribution department of Chen Shilong's Quanwei Company. If Mr. Zhai wants to get the distribution channels, he does need someone with such a wide network of contacts to communicate everywhere, but I don't think it's necessary to acquire the entire company."

"I still want to get the Silver Princess theater chain first. 1024 now has five theaters which is a bit too few."

Zhai Yuan tapped the edge of the table, thought for a moment, then looked up and asked, "How much does Lei Juekun want?"

"Silver Princess has 18 theaters. The five leading theaters, namely, Lisheng, Lesheng, Kaisheng, Xinsheng, and Jinhongji, are priced at over 13 million yuan in a minute. Although the remaining theaters are a bit smaller, they are at least worth tens of millions."

Shi Nansheng analyzed the situation and said, "Boss Lei is asking for 350 million yuan for all the actor contracts and film copyrights for the three film companies, including New One City."

"He has the final say over all 18 theaters?"

"There are several cinemas operated by KMB and KMC, but Boss Lei said he can take care of it." Zhai Yuan hesitated for a moment and did not speak.

Buying 18 theaters for million is definitely a sure win, but Lei Juekun is short of funds now, and New One City is demoralized and unable to make ends meet, so he was able to get this price.

It also includes the contractual copyrights of three film companies.

Although New One City has few memorable films other than the Best Partner series, it signed many directors and actors during this period.

Huang Boming, Lin Lingdong, Chen Xunqi...

"Don't want 350 million, 280 million, everyone can give it!"

Zhai Yuan gave a figure and then said, "I'll pay 85 million to acquire 1024% of Lei Juekun's shares. All the theaters under Princess Silver will be renovated and have signs saying . We're open for negotiation. I'll ask him out for a chat tomorrow."

Shi Nansheng was stunned by the business worth hundreds of millions, and couldn't help wondering how rich the boss was now.

the next day.

Zhai Yuan and Lei Juekun officially met in a restaurant room.

This was Zhai Yuan's first close contact with Lei Juekun.

In the hundred years of Hong Kong film industry, only Zhaoshi and Jiahe have remained standing. Boss Lei was able to emerge from these two major companies and dominate the market share for nearly ten years. He is considered a very remarkable figure.

"I never felt old before, but after turning 50 this year, I realized why everyone is younger than me. You, Zhai Yuan, are 20 years old this year, and the second-generation head of Sun Hung Kai, Li Jiajie, is 22 years old. Deng Zhaojian and Yan Chengkun have also retired to train the next generation. When a person reaches my age, his brain power and eyesight are declining, so it's time to retire."

Lei Juekun's two major treasuries, Kowloon Motor Bus and Kowloon Construction, support him to spend money lavishly in the film industry.

However, the Hong Kong government had previously issued regulations that the annual profit margin return of public utility bus companies should not exceed 16%, which caused the stock price of Kowloon Motor Bus to plummet. Subsequently, Sun Hung Kai Properties took advantage of the opportunity and acquired 47% of Kowloon Motor Bus's shares in just over a month.

Another treasury, Kowloon Development Company, is also the holding company of Silver Princess Cinema Chain. Its market performance is only satisfactory. The partner Wu family is even more dissatisfied with his focus on the entertainment company Silver Princess. Kowloon Development Company has been unable to be listed on the main board of the stock exchange. The relationship between the two families, Lei and Wu, who were once good friends with their fathers, is now gradually deteriorating.

After the collapse of New One City, Silver Princess's production volume dropped significantly this year, which made him lose confidence in the film industry.

At this point, it would be useless to criticize Zhai Yuan for poaching. In the business world, one must accept defeat when one gambles, and Lei Juekun was very open-minded about this.

Zhai Yuan looked at the plump old man in front of him and said with a smile, "Jiuyi has several dramas coming out this year. Princess Yin has changed the name to 1024. You still have a 15% controlling stake. You can become a rich man and get dividends. Harmony is the most important thing between us."

…………

mid-December.

With no deliberate concealment, media reports came out one after another, and the entire Hong Kong entertainment industry was caught in a major earthquake.

"Seizing Gold in the Stock Market, Prodigy Yuan Zhaiyuan Spends 85 Million Yuan to Acquire % of Silver Princess Group's Shares"

The newspapers are full of news.

As soon as Zhai Yuan came downstairs, he was immediately surrounded by paparazzi who were following him and they all rushed to put the microphone to his mouth.

"Mr. Zhai, is it true that you have acquired 18 theaters from Silver Princess?"

"Meh, it's all rumored outside, isn't it you reporters who are spreading the most rumors? Well, I'm telling you now, I do have a partnership with Mr. Lei Juekun, and the negotiations are still ongoing."

"Jiuyi is now Hong Kong's leading film company. You are working with Boss Lei again this time. Will you take on Jiahe next?"

"No, it's just friendly competition! 1024 hopes to collaborate with Silver Princess to create international audiovisual works and artists. Jiahe isn't a big threat to us right now..."

The next day.

The news headline was posted: "Prodigy Yuan is full of ambition, vowing to expand into the international market, and saying he never took Jiahe seriously."

Zhai Yuan shook the newspaper in his hand: "Is this appropriate?"

Shi Nansheng immediately said, "I'll call the newspaper to handle it."

Zhai Yuan shook his head: "Forget it, forget it, that's what I meant anyway... What's the new development of Jiahe now?"

"Their 'Summer Lucky Stars' last month faced 'The Invisible Woman' and took in over 2700 million yuan at the box office, but 'The Invisible Woman' was a low-budget film, so it still made more money."

Shi Nansheng continued, "Jiahe is very motivated this year. "Summer Lucky Stars" has just been withdrawn from the schedule, and a new film called "Heart of Dragon" has been quickly replaced. I heard that Chen Shilong just came out of the crew and was sent out to shoot his independent film without stopping. This time, there is no Hong Xinbao and Yuan Biao as partners in the play."

Zhai Yuan became more interested and asked, "What genre is Chen Shilong's new film?"

Shi Nansheng shook his head and said, "It's not clear yet, but someone saw their crew starting filming near Nathan Road. Chen Shilong seems to be playing a policeman this time, and even Lin Qingxia came from Taiwan for an audition."

Zhai Yuan understood that the classic image of Chen Jiaju in film history was about to appear.

"It seems that we have to shoot it during the Christmas season. Let's schedule Once Upon a Time in China this month, and then we'll release Mr. Vampire to compete with Jiahe during the Christmas season."

After thinking about it, Zhai Yuan felt that it was not stable enough, so he picked up the phone and dialed Chen Jiale's number: "Your piracy team can prepare first. After Jiahe's new film is released, book a theater to shoot frame by frame and send it to Yuen Long Qvod Company..."

11 month 18 number.

The Hong Kong premiere of "Once Upon a Time in China".

Zhai Yuan appeared in the theater, accompanied by reporters from a TV crew.

"In addition to the release of the movie "Huang Feihong" today, there is another piece of news to inform everyone. Our company has recently launched a VCD player, Video Compact Disc, which can be used with this small disc to display the picture in the player..."

After going through many hardships and obstacles, VCD and CD finally appeared in front of the public for the first time.

Zhai Yuan demonstrated CD technology in a theater, answered a bunch of pre-arranged questions, and talked freely in front of the TV camera.

"Currently, our two products are ready for mass production. We have also applied for a total of 12 patents in the United States. We would like to take this opportunity to announce them today and hope to find a suitable partner."

An audience member asked: "Where can I buy it?"

Zhai Yuan smiled and said, "There is only one company in Hong Kong that has obtained the license for VCD sales. You can go to Hua En Department Store for consultation. In addition, two discs are given with the purchase of the machine. One is the complete version of the movie "Huang Feihong" and the other is a TV series disc, which includes the first five episodes of the mainland version of "Journey to the West"... In the future, Jiuyi will not only be involved in the film industry, but also participate in the production of TV series. We also hope that more knowledgeable people will join us through this opportunity."

After Zhai Yuan finished speaking in the theater.

That afternoon, all prime-time advertisements on TVB and ATV were replaced with VCDs and CDs produced by Qvod.

The child prodigy has not appeared in Hong Kong for a long time. This time, he first acquired Silver Princess and then launched a groundbreaking product. In the media's vivid portrayal, Zhai Yuan transformed from an entertainment tycoon into a technology tycoon.

"It's a pity that I don't build cars."

After Zhai Yuan released his Kuaibo advertisement, orders came pouring in. This time, with the real estate business, he was able to gain a firm foothold in Hong Kong.

(End of this chapter)