Chinese Entertainment Intelligence King

Chapter 392 Igniting the Entertainment Industry, Aiming for a Super Giant
Huayi Brothers, Headquarters
Wang Zhonglei took a sip of coffee, the bitterness in his mouth mirroring his mood.

"Brother, I checked this morning and Yi'an's price has gone up again."

Wang Zhongjun remained relatively calm, mainly because he had already roughly anticipated this, and was even somewhat relieved.

"Not bad, at least it didn't see a triple-digit increase."

Yan Li's aura is too great, Yi An has many advantages, and they can do more to create a story. If they really tell a compelling story, it wouldn't be difficult for them to turn it into a speculative stock that exceeds market expectations.

However, for reasons unknown, Yi An later became more low-key and conservative, which kept Yi An's gains within an acceptable range for everyone.

Wang Zhongjun is quite relieved about this, as Huayi Brothers' market value is still fluctuating around 10 billion yuan.

Although it's far from being as good as Yi An, it can still barely be considered second. But if Yi An reaches a market value of several hundred billion, Huayi Brothers will really have to step aside.

“Brother, I talked to Mr. Ma yesterday, and he said that Yan Li deliberately suppressed the rise in Yi An’s stock price.”

Wang Zhongjun nodded: "I have the same feeling, but I'm not quite sure about Yan Li's intentions."

“I asked Mr. Ma, and he shared some of his judgments with me, which I found quite reliable.”

Wang Zhonglei began to relay Jack Ma's words, in which Jack Ma believed that Yan Li was always cautious and would plan before acting.

This can be seen from some of his investments and operations: he considers the possibility of failure before he wins, does not covet big profits, knows when to stop, and prefers to earn less rather than take risks.

If Yi'an becomes a speculative stock with a market value of tens of billions, it could easily be trapped in a downward spiral.

It's important to understand that the cultural and entertainment industry is only worth two to three hundred billion yuan. This market size simply cannot accommodate a behemoth like Yi'an.

With a market capitalization of several hundred billion, Yi'an has essentially overdrawn the market's optimism about the future of the entertainment and film industry, creating a false prosperity that is detached from its current actual value—a so-called bubble.

Once a bubble forms, Yi'an must develop rapidly and race against the bubble.

They not only want to develop themselves, but also to drive the entire industry's improvement at all costs, turning the bubble from a bubble into a reality.

It sounds good. As long as Yanli develops vigorously and outperforms the bubble, Yi'an will become a hot stock, and the company will have better development. The benefits outweigh the drawbacks.

But setting aside the possibility of the company collapsing if it fails to outperform, the most crucial point is that the bubble is very likely to grow bigger and bigger.

When it was 20 billion, it was touted as several hundred billion. When it actually reached several hundred billion, it was touted as hundreds of billions, or even trillions.

Even if Yan Li slams on the brakes until sparks fly, it won't help. Once the stock market goes crazy, even the government can't stop it.

The entertainment and film sector is strong in its influence, but its size is limited. Moreover, its development has its peak periods, but it also has times of stagnation and decline.

Once the market cools down, one can imagine what will happen to Yi'an, which has been swept up in the high-speed surge.

As the actual controller of Yi'an, even if it wasn't Yan Li's original intention, how could he possibly eliminate all of them?

Yan Li has more than just Yi An under his command; he also has the more promising Weibo and Yanye Capital, which has invested in many popular companies. There's no need for him to go all in on a gamble.

Yi An is currently considered popular, but that's not an exaggeration; she's within Yan Li's control.

By partnering with companies like Weibo and Tudou.com to gradually build their own entertainment empire, and as they ascend to the top of the market, their foundation becomes more solid, with lower risks and fewer hidden dangers. Why not do it?

You can criticize Yan Li for lacking courage and being too conservative.

But when Yi An has made steady progress, remaining calm and composed amidst the storms, and watching many companies that rushed into development fail, then we should praise him for his foresight and long-term vision.

In the end, Jack Ma even expressed some envy for Yan Li, who had a backup plan, a well-established industrial chain, and a deep and wide moat, allowing him to make strategic plans at his own pace.

Most companies and entrepreneurs do not have this capability.
In fact, many people and companies are unwilling to gamble, but due to pressure from all sides and the situation, they have no choice but to take a desperate gamble.

Market competition is too fierce. Stepping on the gas pedal too hard might cause the car to overturn or crash into a mountain, but stepping on the brakes can also easily lead to being hit and overturned by the car behind.

It's not wise to give up eating for fear of choking; we must first survive and then consider the future.

Jack Ma spoke with emotion about the matter, and the two Wangs of Huayi Brothers sighed with regret.

Some people gamble even when they can. Some gamble because they don't want to, and others, like them, don't even have the right to gamble.

Huayi Brothers' previous performance had somewhat resembled that of a speculative stock, but with Yi'an's listing, a true industry ceiling has been established. With Yi'an leading the way, Huayi Brothers can certainly benefit from the industry trend, but it's out of the question that it can take off with a gamble.

Not only Huayi Brothers, but also all listed companies in the industry will be affected, unless they can surpass Yi An in size and strength.

Therefore, to some extent, Yan Li's conservatism is not a good thing for Huayi Brothers. The two kings hope that Yi An will go wild, and then Huayi Brothers can also go wild.

Even if the bubble bursts and Huayi Brothers collapses along with it, with Yi An and Yan Li holding the line, the impact won't be that great.

Even if Huayi Brothers collapses, the two brothers can still make a lot of money during that time.

Unfortunately, Yan Li was stable enough, so Huayi Brothers had no choice but to abandon its illusions and focus on steady development.

"Zhonglei, go and ask if Yi'an will allow outsiders to participate in her victory celebration. I'll go there in person. If not, prepare a generous gift and send it over, then arrange a time for me to visit her in person."

Wang Zhongjun gave his younger brother an instruction, and Wang Zhonglei nodded silently.

After its listing, Yi'an has undoubtedly become the industry leader, and it is far ahead of its peers. Such a leading company has a great influence within the industry, and it can also make suggestions and formulate some industry rules to the outside world.

Although Huayi Brothers is still Yi An's competitor, the situation is beyond their control, and there is a gap in strength. It wouldn't hurt to adopt a more humble attitude.

Most importantly, the two companies have a bad relationship, and Huayi Brothers is genuinely worried that if Yi An gains power, she will suppress or even eliminate Huayi Brothers.

You can't hit someone who's smiling at you. No matter what you think in private, you have to be polite on the surface.

Wang Zhonglei went out to run errands, and Wang Zhongjun sighed and silently began his work.

According to Yan Li's intelligence regarding Huayi Brothers' future, Wang Zhongjun will be living a very carefree life after Huayi Brothers goes public.

At his most carefree time, aside from some social engagements and events, and visiting film sets, Wang Zhongjun's daily routine consisted of sleeping until he naturally woke up, then going to Sanlitun to play Texas Hold'em with friends, riding horses, tending trees, and, more importantly, collecting art on weekends.

Even Jack Ma, half-complaining and half-remarking, said that Wang Zhongjun was the laziest company CEO he had ever met.

However, with Yi An as a formidable obstacle above and various film and television companies eyeing the market below, Huayi Brothers' industry advantages are not obvious, and the competitive pressure is immense.

Now Wang Zhongjun can no longer be carefree. Forget about putting the company aside to play cards, he's busy with overtime every day, and his hair has turned several shades white from worry.

However, every mistake has its advantage. The two Wangs of Huayi Brothers are capable, have a stable mindset, and work hard. Although Huayi Brothers cannot compare with Yi An, it is developing well. At least so far, no other company has been able to threaten its second-place position.

...

The two Wangs of Huayi Brothers felt the pressure and worked diligently to consolidate Huayi's position as much as possible, and hopefully catch up with and close the gap with Yi'an.

For other film and television companies, there is no need to consider competing with Yi'an for the time being. The biggest feeling they have about Yi'an's listing is excitement.

Huayi Brothers had already opened everyone's eyes and opened the door to the capitalization of the entertainment industry.

The listing of Yi'an further ignited everyone's enthusiasm.

Compared to Huayi Brothers, Yi An's company created more and more wealthy and successful individuals.

Yan Li alone made billions, Yi An's investment institutions made a fortune, and there were many other celebrities who were billionaires, and even more millionaires.

Film company owners are envious, celebrities are jealous, and various types of capital are flocking to the scene.

For a time, the entire entertainment industry was in turmoil, with a gathering of talents and a chaotic scene of gossip and controversy that was hard to stop.

Meanwhile, Yan Li, the key figure who triggered this industry storm, quietly returned to Beijing after dealing with the follow-up matters related to the listing.

Fuli City, Bedroom
"Yan Jingxin, call me Dad."

Yan Li poked his eldest son's chubby cheeks, teasing him to call him "Dad." The latter squinted at his father, then closed his eyes and turned away.

"..."

Yan Li was speechless, while Qin Lan next to him chuckled, and Zhang Hong next to him also laughed out loud, while casually scolding her own son.

"He's not even a month old yet, why would he call me 'Dad'?"

"You don't have to call me 'Dad,' just make a couple of babbling sounds, that's fine too."

Yan Li started poking his son again, but the latter still ignored him, perhaps because he was shy around strangers.

"Just bring it more often."

Zhang Hong offered a word of comfort, then praised the child: "My grandson is so good. He doesn't cry, doesn't make a fuss, and isn't clingy. He's quiet and well-behaved, and everyone loves him."

Qin Lan nodded in agreement. Although it was her first time being a mother, she did have friends who were mothers, such as Ma Yili, whose child was quite young.

In comparison, Young Master Yan is indeed much less of a worry.

It could also be because they are still young. Many children are relatively easy to take care of when they are first born, but they start to cause trouble when they get older.

After playing with the child for a while, he got tired and fell asleep. Zhang Hong stayed with her eldest grandson and chased Yan Li and the other man out of the room.

"Is my mom alright at home?"

Yan Li asked if there was a postpartum nanny and a housekeeper at home, and if Qin's mother was also there.

But Zhang Hong was worried about her grandson and would come home every day, doing many things herself. Yan Li asked Qin Lan because he was worried that she would not dare to disobey Zhang Hong and would be wronged.

"It's okay. Mom listens to the doctor and the postpartum nanny. She's just too careful and meticulous with the baby."

Such an attitude could easily lead to spoiling, which Qin Lan couldn't say openly, so she could only try to prevent it through Yan Li.

"It was my first time being a grandma, and I was really getting into it, but I got back to it soon."

Yan Li told Qin Lan not to put so much pressure on herself, as Dong Xuan would be giving birth in two or three months. Zhang Hong would be running back and forth between the two places, and with the time passing, she definitely wouldn't be as proactive as she is now.

Qin Lan nodded and even asked about Dong Xuan, as the two hadn't seen each other since the New Year.

She was busy having a baby and didn't pay much attention to Dong Xuan's situation, but now she's thinking of sharing her experience with her.

"Well, you probably don't need to worry about her."

Yan Li shook his head. Not only had he hired professionals for Dong Xuan, but there was also Guan Yue. The two women became pregnant around the same time, and many things were happening simultaneously. Guan Yue was pregnant with her second child, so she was more experienced than Qin Lan and more trusted by Dong Xuan.

"She's quite lucky."

Qin Lan was somewhat envious, and Yan Li agreed. Having a good friend get pregnant together was indeed a good thing, as it could greatly alleviate related stress and emotions.

During Dong Xuan's pregnancy, he was significantly less concerned about her than Qin Lan, and Guan Yue deserves much credit for this.

Later, when Guan Yue's child is born, he will prepare a generous gift as a token of his appreciation.

After chatting for a while, Qin Lan felt a little unwell, so Yan Li heated up some milk for the baby and tasted it himself.

To be honest, it wasn't very tasty, but the texture was quite good.

It meant that Qin Lan would have to clean and disinfect the area, as newborns have low immunity and it was necessary to prevent the spread of germs.

After that, nothing much happened. Qin Lan was still in her postpartum period, so no matter how anxious she was, she could only endure it.

Of course, the main reason is Qin Lanren. Yan Li is a scoundrel, and he has never mistreated her.

The next day, Yan Li went to Yi'an to preside over the first company meeting after the listing. As soon as he entered the company gate, he was greeted with applause from all the employees, and the company's senior management lined up to greet him.

Yan Li had no choice but to give another speech before the meeting.

However, this was a piece of cake for Yan Li. He didn't need to think before speaking; he could just launch into a tirade of motivational speeches, and the flatbread was soft and fragrant.

"...Together, we will accompany the company to greater heights."

Bang bang bang~
After a few minutes of speech, accompanied by thunderous applause, Yan Li led the senior executives into the conference room to begin the meeting.

Having already given them a pep talk and made promises, Yan Li didn't repeat himself much. After a few pleasantries and jokes to liven up the atmosphere, he got straight to the point.

Yi'an went public and raised a large amount of money. This money cannot stay in the account; it must be spent.

However, how to spend the money, how much to spend, and whether it can be spent effectively still need to be discussed.

First and foremost, and also the main direction of funding, is the expansion of cinema chains.

The cinema business cannot be neglected; a significant portion of Yian's current high market value is supported by these cinemas.

As mentioned earlier, cinema chains themselves are not that valuable, and Yi'an's film and television business is rather superficial; each has its flaws when considered individually.

However, by combining the virtual and the real, and integrating the industry chain, Yi'an has both content and profits, as well as a solid physical foundation, which is why it is viewed favorably by the market.

Under these circumstances, Yi'an cannot afford to relax its efforts in developing cinema chains; in fact, it may even intensify its efforts to further enhance its strength and influence in the industry.

To date, Yi'an has 48 cinemas in operation, with 331 screens, through self-construction and acquisition. Although it has not reached the top five in the industry, it is not far off.

This growth rate and scale are already quite impressive, but it still lags behind the explosive growth of the cinema market.

According to the information Yan Li has received so far, the cinema market is making a full-fledged effort this year, with many cinema chains planning to add double-digit numbers of new cinemas, and many adding more than three digits of screens this year.

This data is outrageous!
When Yan Ligang was developing the cinema chain, the entire cinema market only added a few dozen cinemas and two to three hundred screens a year.

Judging from the current trend, the number of screens this year will increase by thousands, and not just over a thousand, but probably around 1,500 or 1,600.

What's even more alarming is that, despite this situation, a large number of new cinemas are still under construction, and the cinema market is expected to experience an even bigger boom next year, with perhaps two to three thousand new screens added annually.

With this level of development, Yi'an's previous years of accumulation may be overtaken by competitors in just one or two years.

Therefore, if Yi'an wants to maintain its industry position, it has to join in by investing heavily.

Even simply throwing money at the problem isn't enough. Yi'an plans to implement a franchise program to attract some small and medium-sized cinema chains or independent cinemas to affiliate with them and seize market share.

Yan Li therefore requested the theater chain department to formulate a three-year development plan.

In 2010 alone, the requirement was to open no fewer than 15 new cinemas and add more than 120 screens.

By 2011, based on this year's figures, the number of new cinemas and screens should increase by at least 50%, and if necessary and conditions are right, it could even double.

At the same time, we will explore franchise models, formulate practical and feasible plans, conduct pilot programs this year, and begin vigorous promotion in the next two years.

Don't be afraid to spend money; you can always raise more if you run out.

As I said before, money is worthless in the entertainment industry now; talent and influence are what matter. As long as Yi An maintains her position, there are plenty of ways to make money.

Besides cinemas, Yi'an cannot neglect film and television production and distribution; this is Yi'an's foundation.

Yan Li suggested several directions, one of which is to cultivate a talent pool. Yi An is a content creator, and content cannot exist without people, so talent must be valued.

Another strategy is to seize intellectual property (IP). Since content talent is not easy to find, you should first grab the existing copyrights.

Although Yan Li has already started to develop online literature, it is still in its early stages and the time is not yet ripe for success. Therefore, while the relevant IP copyrights are not yet highly valued, he wants to buy them up at rock-bottom prices to enrich his own inventory and prevent others from benefiting from them.

Another area is deep technology extension, with plans to invest in and acquire visual effects and post-production companies.

This move is risky, but once Yi'an becomes the leader, there are certain things she cannot refrain from doing. Moreover, once the plan is successfully implemented, the rewards will be substantial, and it could even become a crucial weapon for Yi'an.

Another aspect is investing in and collaborating with relevant companies and artists.

No matter how well Yi'an does her job, she can't manage everything. She might as well use some funds and resources to invest in and support some small and medium-sized companies.

Yi An can reap the benefits of their profits or growth, and can exert influence and control over the company or artists through various means, thereby affecting the entire industry.

To put it more bluntly, Yi'an has already achieved its goal of becoming an industry leader. The next step is to transform from a leader into a super behemoth that has penetrated all aspects of the industry, with deep roots and lush branches.

In the past, Yi An Niu was just a powerful company, and others dared not offend it, but it did not have much control over the industry.

But the future is uncertain. If Yi'an penetrates the market effectively and collaborates with companies like Weibo and Tudou, while it may not be able to claim a monopoly or be unmatched, few will dare to openly oppose it.

The meeting lasted a whole day, but only a general direction was set. Further discussions are needed, and then we will have a detailed chat with each of the responsible persons.

Yan Li is not Wang Zhongjun; he is not so careless as to abandon the company after it goes public.

Of course, once the money is allocated and everything proceeds in an orderly manner, Yan Li's work in Yi'an will be much easier.

After some time, he will select a new president for Yi'an to be in charge of the specific execution and take over some of the work, which will make Yan Li's life easier.

After the meeting ended, Yan Li returned to his office to rest. A while later, two senior executives came over to inquire about his situation.

Within the company, there is another proposal that has garnered considerable support regarding how to spend the newly raised funds.

Build or buy a headquarters building!

The headquarters building is a fixed asset, which can help the company preserve and increase its asset value, save a lot of rent, and can also be used as collateral for financing in the future.

At the same time, having a headquarters building is also a significant moment for the company, as it can unite people, boost morale, and demonstrate Yi'an's strength and status.

Yan Li had mentioned before that when he had money, he could build a headquarters building so that Yi An could have her own home.

Yi'an currently has ample funds and the market is performing well, so is it a good time to make a move?

Yan Li pondered for a few minutes: "The plan is good, but the timing is not right. Let's wait a bit."

Having a headquarters building certainly has many advantages, but now that Yi'an has just gone public, everyone is looking forward to its next move.

Instead of expanding the market and developing vigorously at this time, spending a lot of money to build or buy buildings is likely to create a bad association with people.

Therefore, the headquarters building project is feasible, but it should be put on hold for now. We should focus our funds on what's truly important, concentrating our efforts on conquering new territories and seizing market share.

It's not too late to build a headquarters building once the development reaches a certain level; it can even serve as a symbol of Yi'an's established power and strength.

Of course, this might increase the cost of building or buying a building, but Yi'an is doing well, so the extra cost has already been recouped and is nothing to worry about.

They even have more funds and confidence to own a better headquarters building than they currently envision.

Yan Li's authority in Yi'an goes without saying; with his decision, the matter of the headquarters building is settled.

The company's senior management didn't dare to object, but it was clear they were somewhat disappointed.

Yan Li's situation is understandable. Chinese people are obsessed with "home." Individuals want to buy houses, and companies want buildings. Having a "home" gives them a sense of security and peace of mind.

Therefore, Yan Li only postponed the project, but did not abandon the plan for the Yi An headquarters building. Having a "home" as a spiritual fortress will enhance employees' sense of identity and belonging.

Well, some preparatory work can be done during this period, after all, building a large building is not a simple matter.

Buying is fine, but building is much more time-consuming and requires a lot of resources. It's best to make arrangements early, wait for the right time and the right funds, and then get started.

Yan Li was busy until evening before finally getting off work. Before she could even go home, her schedule was already full of social engagements.

When Yi'an went public, Yan Li became the center of attention. People from all walks of life came to consult him, seek cooperation, or offer congratulations. He couldn't refuse any of them, and Yan Li could only entertain them occasionally.

It wasn't until nearly dawn that Yan Li went to Wancheng Huafu to visit Dong Xuan.

On one hand, she was pregnant, and on the other hand, Fan Xiaopang and Yi An had made a fortune. Qin Lan and Dong Xuan might have their own thoughts about it, so he had to appease them.

When Yan Li arrived home, Dong Xuan was already asleep. He didn't disturb her, took a shower, and, at Dong's mother's recommendation, looked at the maternity photos that Dong Xuan and Guan Yue had taken.

Yan Li thought it looked good, so he took a picture and sent it to Qin Lan and Fan Xiaopang via MMS so they could see it.

Qin Lan exclaimed in regret that she hadn't thought of filming when she was pregnant, while Fan Xiaopang's ideas were much more peculiar.

"With such big bellies, are you two lying down or sitting?"

Yan Li: "..."

This woman's brains must be yellow...

　(4000/285000)

　　
　
(End of this chapter)