Nobody knows movies better than me

Chapter 130 Moving Towards a New Stage

After finishing his work on "Bad Genius," Zhang Jun finally had time to take care of his own affairs.

Actually, it's not exactly "finally"; this has been dragging on for quite a while. It's been in the works since "Reign of Assassins," but it's only now that it's officially started.

What he wants to do is upgrade his personal studio into a company.

To be honest, Zhang Jun's studio has been established for quite some time. In the beginning, it was just a shell company, used for signing contracts and handling accounts.

Later, as the number of projects increased, we recruited several people and gradually things started to take shape.

But in the end, it's still a small workshop and can't support a very large operation.

It's different now.

The success of several films allowed Zhang Jun to accumulate a sum of money. More importantly, his position in the industry changed.

He used to be a new director, now he's a member of the "200 million club". He used to beg others to invest money, now others are begging him to invest money.

This change means he can do more.

Upgrading the studio into a company is the first step.

Ye Xiaoyi offered to help. She said that Guanzhi Pictures could provide manpower and resources to help him set up the framework.

Zhang Jun didn't refuse. He knew that in this industry, going it alone wouldn't work. Having someone to help was a good thing; he didn't have to force himself to do everything.

But while helping is one thing, the costs still need to be clearly calculated.

Zhang Jun held several meetings with Ye Xiaoyi and He Xuan to discuss the equity structure of the new company.

Initially, Ye Xiaoyi's idea was for Guanzhi Pictures to invest more money and take the lion's share, but Zhang Jun disagreed.

Ye Xiaoyi asked, "How much money can you come up with yourself?"

Zhang Jun did the math: "I've received quite a bit of profit sharing over the years, plus the box office revenue from 'Bad Genius' hasn't arrived yet, but if I put together the money myself, I should have enough to control the company."

Ye Xiaoyi pondered for a moment and said, "It's not impossible for you to own the entire company yourself. But I have to remind you, in business, especially in large companies that have grown, it's impossible for one person to own all the shares."

Zhang Jun knew she was right.

He recalled Ye Bingcheng's Chengxin Group. Ye Bingcheng was indeed the largest shareholder, but there were other shareholders in the group, more than a dozen in total, many of which were held by other companies.

This shareholding structure was not Ye Bingcheng's choice, but rather an inevitable result of the company's development. To raise funds, expand, and integrate resources, it was necessary to relinquish shares.

Zhang Jun doesn't reject this idea; he just wants to figure out what he should and shouldn't give in to.

The final agreement was that Zhang Jun would personally invest in the new company, holding 71% of the shares and having absolute control.

Guanzhi Pictures invested a portion, holding 15%, with the remainder reserved for potential future partners.

Ye Xiaoyi was quite satisfied with the plan. Fifteen percent wasn't much, but considering Zhang Jun's current position, getting this percentage was already pretty good.

Moreover, the two companies hold shares in each other, which strengthens their relationship.

Zhang Jun did indeed transfer his shares in Guanzhi Pictures to the new company.

He already owned shares in Guanzhi Pictures, which were initially given to him by Ye Bingcheng. He later bought some more, bringing his total to 15.6%.

This percentage ranks second among the shareholders of Guanzhi Pictures.

Transferring these shares to the new company means that Chenxing Pictures has become a shareholder of Guanzhi Pictures. Conversely, Guanzhi Pictures is also a shareholder of Chenxing Pictures.

This resulted in the two companies holding shares in each other.

Looking at the equity change documents, Ye Xiaoyi said to Zhang Jun, "You've got a pretty shrewd plan."

Zhang Jun smiled and said, "With cross-shareholdings, everyone feels at ease."

Ye Xiaoyi laughed too: "Alright, I won't lose out anyway."

Boss Wang also got involved. Ever since he filmed "Reign of Assassins," this coal mine owner's enthusiasm for the film and television industry has never waned.

The huge success of "Bad Genius" made him feel that he had made the right choice in casting his own.

Boss Wang's Daqiang Film and Television Production Company purchased shares from Ye Xiaoyi and Zhang Jun at a premium, acquiring approximately 5% of the shares in each company, thus becoming the third largest shareholder of both companies.

After the deal was settled, Boss Wang was quite happy. While having dinner with some coal mine owners, he couldn't help but show off a bit.

"Do you know where I am in the film and television industry right now?" he asked.

Several friends shook their heads.

Mr. Wang said, "I am now the third largest shareholder of two companies, one is Guanzhi Pictures and the other is Chenxing Pictures."

You know Guanzhi Pictures, right? They produced films like "Little Miss Sunshine," "About Time," "Reign of Assassins," and "Bad Genius."

Chenxing Pictures is a new company that Zhang Jun has just established, and all his projects will go through this company from now on.

A friend asked, "So how much money did you invest?"

Mr. Wang said, "I can't give you the exact figures, but I can tell you that we've invested quite a lot."

Another friend said sourly, "What's so great about him? He's just relying on Director Zhang."

Boss Wang wasn't angry. He smiled and said, "That's right, I relied on Director Zhang. I was convinced he could succeed, so I clung to him tightly and wouldn't let go."

What about you? Did you have this foresight back then?

The friends fell silent.

Mr. Wang continued, "When I met him, he was just starting out. What were you doing back then? What projects were you investing in, and you lost money on every single one you invested in."

I made a profit by investing in just one of his stocks.

This may sound blunt, but it is the truth.

In those years, coal mine owners flocked to invest in the film and television industry, and nine out of ten were ripped off. Either the projects failed, or their money went down the drain.

Very few people can make a profit from every investment like Mr. Wang.

His secret is actually just those few words he said: Find the right person, stick close to them, and trust them completely.

The name of Chenxing Pictures was chosen by Boss Wang himself. He said that if he wanted to start a company, he needed to consult a master to come up with a good name for good luck.

Zhang Jun didn't really believe in these things, but he couldn't resist Boss Wang's enthusiasm, so he let him handle it as he saw fit.

Boss Wang found a supposedly famous master, gave him Zhang Jun's birth chart and the business the company wanted to do, and asked the master to do a calculation.

After calculating for a long time, the master said, "The name Chenxing is good. Chen means the residence of an emperor, and Xing means a bright star. It means that many stars gather together and talents abound."

Boss Wang relayed this to Zhang Jun, who thought it was acceptable. The name "Chenxing" sounded pleasant and had a good meaning, so he decided to go with it.

The reason Zhang Jun agreed to Boss Wang's request to buy shares at a premium was because he had a new plan and needed a cash flow.

Chenxing Pictures' money needs to be used for company operations and film and television production, and Zhang Jun doesn't want to do it through the company, but rather in his personal capacity.

The new company's office was located in an office building next to Guanzhi Film Studio.

That building is not far from Chengxin Plaza, with convenient transportation and complete surrounding facilities.

He Xuan transferred a few people from Guanzhi Pictures to help set up the company's framework.

According to Zhang Jun's plan, the company was set up with three departments: production, creative, and operations management.

The production department is easy to understand; it's responsible for filming and producing content.

The creative department is quite novel; currently, no domestic film and television company has this department, and creative work mainly depends on the individual.

But Zhang Jun felt that this was not the way a mature film and television company should operate, so he followed the example of Hollywood film companies and set up a creative department to recruit creative talents.

The Operations Management Department is responsible for daily affairs. There are also separate Finance and Legal departments.

In terms of personnel, Zhang Jun does not plan to recruit a large number of people.

His idea was to keep the core team lean and efficient, and to outsource or borrow staff from Guanzhi Pictures when needed. The two companies are close to each other, making resource sharing convenient.

The finance and legal staff were seconded from Guanzhi Pictures.

These two positions are too specialized, and we can't find suitable candidates for them in a short time. We'll temporarily use them until we find suitable replacements.

Recruiting for the creative department is the most difficult part, as many people don't understand what this department actually does. However, thanks to Zhang Jun's reputation, several screenwriters still managed to join the department.

They joined because they thought their script might be noticed by Zhang Jun and made into a movie.

In the Chinese-language film and television industry, directors wield immense power, and investors even more so. However, investors lack creative expertise, so what gets filmed is ultimately decided by the director.

In this situation, the status of screenwriters is diminished and they are not valued.

Apart from a few screenwriters, most screenwriters are like marginal figures in the film and television industry, while the directors and actors always shine.

This is actually quite normal; screenwriters are not valued much in Hollywood as well.

Therefore, the favor of important figures is crucial for success.

Although they didn't know exactly what the creative department did, the newly joined screenwriters were still very excited until Zhang Jun held a meeting with them.

"I know you're all wondering what exactly this creative department does."

Zhang Jun sat in the main seat of the conference room, holding a teacup in his hand, and said: "As the name suggests, this is a place to provide ideas."

I need you to use your imagination and your expertise to provide the company with new directions and stories, which we can then turn into film or television productions in the future.

He tapped the conference room table and said, "Remember, those old-fashioned stories aren't creative, and Chenxing doesn't need them."

The screenwriters exchanged bewildered glances. Zhang Jun's words made them realize that this job wasn't easy. They didn't want clichéd ideas, so they needed something fresh, but that wasn't easy to find!

However, considering Zhang Jun's unique characteristics, the screenwriters expressed their understanding.

The person in front of you is the creator of unique works such as "About Time" and "Bad Genius". He was able to rise to fame quickly because of his novel ideas and stories.

Zhang Jun didn't expect these screenwriters, whose thinking had become rigid, to complete the task he assigned. Their main task was actually to help him polish the script.

As the company expanded, Zhang Jun had more and more things to worry about, and he no longer had much time to polish each script.

Therefore, these screenwriters need to fill in the entire story based on the script outline he provides, and then show it to him.

Of course, this kind of polishing is done without attribution, since the story wasn't their own idea. However, Zhang Jun also promised that they could write their own scripts and recommend them to the company.

If your work is chosen, you'll receive both the copyright fees and the right to be credited.

After the establishment of Chenxing Pictures, Zhang Jun's career entered a new stage.

In the future, he will continue to expand his entertainment career not only as a film director, but also as a film company owner and producer.