Hong Kong film: My brother, Big D, I really don't know kung fu.

Lei Hao paused briefly, looked around at everyone present, and then posed a thought-provoking question:

"Ladies and gentlemen, do you know how many VCRs were sold globally last year? The answer is over 4000 million units, of which the United States alone contributed a staggering 1360 million units."

"Have you ever thought about what an amazing fortune it would be if our VCD player successfully replaced the VCR?"

His voice suddenly became powerful and resonant, each word like a heavy gold coin, striking the hearts of the tycoons present who were filled with an insatiable thirst for wealth.

After hearing Lei Hao's introduction, Huang Shitong, Li Shutang, and the others were all shocked.

(Li Zhaohao) They immediately understood the huge business opportunities and unlimited possibilities contained in VCDs.

Huang Shitong's Adam's apple bobbed, and he eagerly pressed, "Ah Hao, what exactly are the production costs of VCDs? And how much profit can we make from them?!"

Lei Hao smiled slightly and slowly uttered the number that was enough to ignite the nerves of all the bigwigs present: "Ladies and gentlemen, after careful calculation, the current production cost of a VCD player is approximately HK$200."

"However, if mass production can be achieved, its cost can be quickly reduced to around HK$100, which is only one-fifth of the production cost of traditional video recorders!"

He added, "Furthermore, the production cost of CDs is extremely low. The cost of a single CD can be controlled between HK$1 and HK$2.5, with the specific cost calculated based on the storage capacity. This is far lower than the cost of a videotape, which is tens of dollars per disc!"

"This means that the cost of copying and disseminating content will decrease exponentially, while our profit margins will be infinitely expanded, reaching an unprecedented level!"

"Have you ever imagined a VCD player that costs only HK$100 to produce selling for a staggering HK$5000 worldwide?"

With each number he mentioned, the bigwigs' eyes shone even brighter, their breathing quickened, and they were filled with anticipation and excitement.

Then, recalling what Lei Hao said earlier, that global sales of video recorders exceeded 4000 million units last year.

They couldn't help but start calculating: if their VCDs could capture half of the market share in the future, that would be an astonishing fortune of tens of billions of Hong Kong dollars every year!

The thought of the astonishing profits that VCDs could bring ignited everyone's emotions, and the entire lobby instantly became abuzz with excitement.

A cacophony of voices rose and fell, everyone excitedly discussing and calculating the enormous profit potential hidden within.

Big D and Zhou Chaoxian's eyes gleamed with gold, as if they could already see mountains of gold and silver beckoning to them.

Zhou Chaoxian really wanted to tell Lei Hao that he had been too loud before, which was entirely due to his ignorance, and he hoped that his cousin wouldn't hold it against this country bumpkin.

Chapter 84 The Battle for VCD Distribution Rights

Holiday home on Qingshan Avenue.

Inside the spacious lobby, Lei Hao's grand business blueprint sparked heated discussions among everyone present, as if immense wealth was within easy reach.

At this moment, Han Bin and Lin Yaodong suddenly realized that they were fortunate enough to join such an organization with enormous development potential.

While others are still basking in the glory of earning hundreds of thousands or millions of Hong Kong dollars from a single deal.

They were able to follow Lei Hao and participate in discussions and planning of a phenomenal business that could generate tens of billions in profits annually.

This huge difference made them both excited and somewhat incredulous.

Of course, it would be even better if they could also join this business and get a share of the profits.

However, Lin Yaodong and Han Bin exchanged a glance, both seeing a strong desire for profit in each other's eyes, but neither of them was foolish enough to be the first to express their wishes.

They knew full well that they had only recently joined the organization.

If you rashly step forward now, you'll never be able to participate in any of Lei Hao's businesses again.

I'm afraid they might not even get through today safely, and they'll be kicked out of the game, which would be a huge loss.

Li Wenbin could not hide his excitement at this moment. He asked his father, Li Shutang, in a low voice, "Dad, does our family also have a share in the VCD business?"

His voice carried a hint of trepidation, but also an anticipation for the unknown.

Before Li Shutang could speak, Cai Yuanqi chimed in with a smile, his tone tinged with pride: "Wenbin, your father and Huang Sheng each own 10% of Lei's Holdings, while Raymond and I each own 5%."

At this point, Cai Yuanqi paused, turned his gaze to Lei Hao, and asked with a hint of inquiry, "Hao, how will the profits from this VCD be distributed?"

As soon as these words were spoken, everyone who had been discussing the matter turned their attention to Lei Hao, waiting for him to reveal the final decision.

Even Li Wenbin couldn't care less about the news that his family owned so many shares in Lei's Holdings; all his attention was focused on the profit distribution of VCDs.

After all, Lei Hao developed this VCD on his own. If he was unwilling to share this huge business opportunity with everyone, then no one present could get involved in this business.

Therefore, no one would object to Lei Hao personally distributing the profits.

Zhou Chaoxian, who was equally impatient, hurriedly urged, "Ah Hao, stop keeping us in suspense and tell us already! This is making us too curious!"

"Alright, alright!" Lei Hao smiled and waved his hand, signaling everyone to calm down. "I will establish a brand new company, Pioneer Technology. This VCD business will be entirely under the name of this company, with Lei's Holdings and Lei's Industry jointly holding 573 shares."

"Lei's Holdings will hold 50% of the total shares, Lei's Industry will hold 40%, and the remaining 10% will be used specifically to reward core management and technical personnel."

Lei Hao further explained, "Pioneer Technology will be built into a high-tech company, so the rewards for researchers cannot be too stingy."

"We must reward them handsomely. As long as we can attract enough outstanding researchers, we can theoretically continue to develop more competitive new products."

After hearing Lei Hao's words, everyone expressed that they had no objections.

Leihao has now fully demonstrated the importance and enormous potential of VCD, a product of epoch-making significance.

Therefore, they all agree that it is very feasible and strategically visionary for the newly established company to allocate a portion of its shares to attract top researchers.

The shareholders of Lei's Holdings had no objection to this distribution plan.

They can own 50% of the business, which means that even if they only make HK$1000 per VCD after it leaves the factory, if they can sell 2000 million units, their total profit can reach HK$200 billion.

Lei's Holdings will be able to receive 50% of this profit, which is as high as HK$100 billion, an astonishing figure.

Among Hong Kong's listed companies, only a handful can earn more than HK$100 billion a year.

In addition, the dividends for Lei's controlling shareholders are far more than these; they also receive an additional 70% of the profits from Lei's Industrial.

The shareholders of Lei's Industrial were also pleasantly surprised, as Lei Hao had not forgotten them, his employees who had worked hard for the company.

Even with only a 40% stake, based on previous calculations, this business could still generate up to HK$80 billion in profit annually.

Of the profits, 70% will go to the holding company, Lei's Holdings, which means HK$56 billion will be allocated to Lei's Holdings.

The dividends that actually belong to the minority shareholders of Lei's Industrial Company are only about HK$24 billion.

Even if it's only HK$24 billion, small shareholders like Dongguanzi, Han Bin, and Lin Yaodong can each receive HK$1.6 million.

This is undoubtedly a huge fortune for them.

As the CEO of Lei's Industries, Robinson owns 10% of the company and will receive HK$8 million.

More importantly, this is the profit that can be distributed every year in the future, rather than a one-time return on investment.

However, all of this is contingent on the market being successfully opened up for the company to reap such substantial profits.

Lei Hao, who had a comprehensive plan, was not worried at all; he was already confident in his abilities.

"Ah Hao, tell me, what do you need us to do next? How can we help?" Huang Shitong was the first to recover from his surprise and immediately asked Lei Hao.

Huang Shitong had already quickly calculated in his mind that once the VCD market was successfully opened up, the profits he could receive each year could easily reach HK$15 billion or even more.

He knew that if he simply sat and waited to receive his share of the money without doing anything, even the most greedy person would feel uneasy.

“Yes, Ah Hao, tell me what we can do!” Li Shutang, who hadn’t spoken for a long time, said breathlessly, his eyes filled with longing.

The temptation of at least a billion Hong Kong dollars in legitimate profits a year is so great that even the top dog would have to kneel down.

Moreover, once the Li family possesses such wealth, their descendants may no longer need to be police officers, but could directly enter politics, enjoying a broader and more enviable future.

Seeing that everyone was excited and enthusiastic, Lei Hao did not dare to go against their wishes. He smiled and said, "Everyone, please calm down and listen to my overall plan for the VCD product."

"First of all, my Nikkei index futures investment will be closed out for profit in a few days, at which point the investment will come to an end, and I will also prepare to go to Japan to personally order a VCD production line."

At this point, Lei Hao looked at Zhou Chaoxian, whose lips were curling into a wide grin: "Cousin, you know that area well, so you'll come with me to Japan!"

Zhou Chaoxian nodded hurriedly, patting his chest and saying, "Don't worry, Hao! I will definitely help you find the most suitable manufacturer, and I guarantee everything will be perfect!"

Huang Shitong interjected, "Ah Hao, if you want to customize a production line, I can help you contact suppliers both domestically and internationally. Why do you need to make a trip to Japan yourself?"

Lei Hao smiled and shook his head: "Uncle Tong, I have other more important business to handle in Japan. In addition to the expansion of Xuewang Beverages in Japan, I also want to open a film and television company in Japan, which is dedicated to shooting erotic films."

"Everyone has witnessed the superior performance of VCDs. Since we have such a good playback platform, it would be a waste not to make good use of it."

Lei Hao explained, "After a detailed investigation, I found that the market share of Japanese erotic films alone is no less than 500 billion US dollars every year. Faced with such a huge market, I am not willing to just watch and not take a bite."

Huang Shitong: "..."

Neither Huang Shitong nor anyone else present could have imagined that Lei Hao's real reason for personally going to Japan was to open an adult film company.

However, when they heard that the Japanese adult film market could reach 500 billion US dollars annually, they suddenly felt that doing this business was a matter of course.

Although this business sounds bad, those who have been in contact with the industry, like Big D, are very clear about how amazing the profits are.

Just like Mona, who makes films for them, the cost of each film is no more than 30,000 to 50,000 Hong Kong dollars, but the box office revenue can easily bring in hundreds of thousands of Hong Kong dollars.

As long as filming is done frequently and post-production is done well, actors in erotic films can shoot two films a day without any problem, which is incredibly efficient.

So during this period, Mona's erotic films had already earned them several million Hong Kong dollars, a considerable profit.

"Alright, let's get back to the main topic!" Lei Hao clapped his hands, pulling everyone's scattered thoughts back to the lobby and guiding them back to the core issue of VCDs.

"Next, let's talk about the production and sales of VCDs. I've decided to locate the factory in Shenzhen, so that we can keep production costs to a minimum and ensure that our products have strong market competitiveness."

"In addition, I plan to reduce the production cost of VCDs to HK$100 per unit, set the ex-factory price at HK$1999, and suggest setting the retail price between HK$3999 and HK$4999."

"The cost of the VCD disc can be controlled at only HK$15. The discs are erotic films recorded by our own company, so there is no need to pay any copyright fees. The ex-factory price is set at HK$1.5 per disc, and the retail price is suggested to be between HK$25 and HK$40."

Lei Hao's words startled everyone. Many people keenly grasped the difference between the ex-factory price and the retail price, as well as the huge price difference between them.

"Lei Sheng, the difference between the ex-factory price and the retail price is so big. Isn't it a bit of a pity to give up so much profit?" Han Bin couldn't help but ask.