Huayu: A master director who debuted as a singer

Chapter 92 Acquiring a Shell Company and Setting Up a Scheme

Li Zongming climbed out of a van, looked up at the two-story building in front of him, and saw a sign on the door that read "Hongda Business Consulting Co., Ltd." He then pushed open the door.

"Hey, Brother Li! You're a rare guest, please have a seat!" A middle-aged man immediately came up to greet him and offered Li Zongming a cigarette in a familiar manner.

This is Lao Sun, an agent in Beijing who specializes in business registration. When Li Zongming was working in the media, he had dealt with all sorts of people like him.

Li Zongming waved his hand, declining the cigarette, and sat down on the sofa: "Old Sun, let's not beat around the bush. How's that thing I mentioned to you on the phone yesterday going?"

I need a company with proper talent agency qualifications and all the necessary permits, the sooner the better.

Old Sun poured Li Zongming a cup of high-quality tea, sat down opposite him, and looked troubled: "Brother Li, it's not that I'm not doing my best. With the current policies, registering a new entertainment company and going through the approval process will take at least two months."

The Cultural Affairs Bureau is very strict. They require a fixed office location, qualified full-time staff, and verification reports—nothing is missing. You're asking for this too urgently.

Li Zongming didn't respond. He knew that Lao Sun was using the old trick of praising first and then criticizing, which was a common practice in business negotiations.

Sure enough, Old Sun continued, "However, since you've asked, Brother Li, I'll definitely cover for you."

Re-registering is too late, but in Beijing, there are ready-made shell companies. They have all the necessary licenses, official seals, and tax registration certificates, with a business scope including entertainment brokerage, and no debts or disputes—clean and simple.

"How much?" Li Zongming got straight to the point.

"A little over ten thousand, Brother Li, that's not expensive."

These were all arranged through connections a couple of years ago, but the funding chain broke and the business fell through, so they've just been kept as empty shells ever since.

Once you take over, all you need to do is go to the Administration for Industry and Commerce to change the legal representative and equity ownership. At most, within a week, you'll be able to legally sign contracts with the company seal in hand.

After listening, Li Zongming couldn't help but feel a sense of感慨 (gan3kai3, mixed feelings). A few years ago, when he left the Beijing newspaper and went south to Guangdong, the authorities were quite strict in regulating these kinds of performing arts companies with cultural attributes. Not only did they require layers of approval, but they also needed strong state-owned backgrounds or connections within the cultural system.

Back then, let alone tens of thousands, even if you had a million, you might not be able to get a business license if you didn't find the right place to do it.

But now? In just two or three years, a clean shell can be bought for a few hundred thousand yuan.

"Okay, let me take a look at the documents first. If there are no problems, I'll give you a definite answer later." Li Zongming carefully reviewed the photocopies of the documents from the companies that Lao Sun handed him. After confirming that the qualifications were correct, he put the documents in his briefcase and turned to leave the agency.

Back in his suite at the VIP Hotel, Li Zongming reported the situation to Zheng Hui.

"Boss, that's the situation. I can't afford to register it myself, so I'll just buy a shell company for over ten thousand. But I've checked it, and the qualifications are all there. There are advantages to shell companies too, they're clean and efficient." Li Zongming spread the copies on the coffee table.

Zheng Hui immediately made the decision: "Exchanging tens of thousands for two months is a great deal. Brother Zongming, let's do as you say and just buy one."

"The money will come from my account, and your name will be added as the legal representative. Get the change of registration done as soon as possible. Fan Binbin can't wait much longer; we need to talk to Chen Yong in the company's name."

"Okay, leave this to me. I'll have the new company's official seal right in front of you within three days."

Li Zongming agreed, and then he sat down opposite Zheng Hui, his expression becoming somewhat serious: "However, boss, I've thought about investing in 'Young Justice Bao' carefully. We can't just swagger in and go directly to Chen Yong like this."

Zheng Hui looked at Li Zongming: "What do you mean?"

"Think about it, what is your status now?"

Li Zongming analyzed for Zheng Hui: "You are a singer who is famous all over the country. Your tapes have sold tens of millions of copies. Who in and out of the industry doesn't know that you have a lot of cash in your hands now?"

If you proactively send someone to contact Chen Yong and say you want to invest in his film, what do you think he'll think?

Zheng Hui frowned: "He'll treat me like a fat sheep waiting to be slaughtered."

"Absolutely right! Hong Kong filmmakers are now going north to the mainland, and although they talk about cooperation, they have a sense of superiority in their hearts."

In their eyes, coal bosses, nouveau riche, and even young celebrities like you who suddenly become wealthy are all clueless suckers.

"If you approach him directly, even if I represent the company, he'll still demand an exorbitant amount regarding investment ratios, control of the production team, and even copyright revenue sharing. You can have the lead role, but he'll absolutely demand a sky-high premium for it, and we'll lose big on that deal."

Zheng Hui nodded. Li Zongming's analysis was very thorough: "So, according to you, how should we set the trap?"

Li Zongming clearly had a plan in mind. He smiled and said, "We need to find someone who can keep him in check. Through him, we'll make Chen Yong come to Beijing begging for our investment."

Upon hearing Li Zongming's words, Zheng Hui immediately thought of someone: "President Wang? He told me earlier that White Swan has made a fortune because of my two albums, and he wants to get promoted based on this achievement."

However, I've been busy preparing for exams lately and haven't had a chance to ask if he's decided on his next move.

"It's settled! I've been in contact with President Wang recently, and the higher-ups have already formally spoken with him. The official document will be issued soon!"

"Up to where?"

"Deputy General Manager of Pearl River Film Studio, in charge of film and television production!"

The White Swan originally handled audio-visual distribution and production, and now it has been upgraded to film and television production at Pearl River Film Studio, which is a perfect match for its expertise.

The reason for this is that we value his courage in producing these two albums, and we hope he can help revive the currently stagnant Pearl River Film Studio.

Zheng Hui's heart skipped a beat. The Pearl River Film Studio was a long-established film studio in mainland China. Although it had been greatly impacted by the market in recent years, it was still a veritable local power in the film and television industry in the Lingnan area.

"Since Chen Yong registered his company in Guangzhou and wanted to make a living in the mainland, every move of the Pearl River Film Studio would be a top priority for him to keep an eye on every day."

Li Zongming continued, "Although President Wang's appointment hasn't been officially announced yet, rumors have already leaked out within the industry. At this point, if President Wang were to step in and call Chen Yong, saying that a friend in Beijing is very interested in his 'Young Justice Bao' and wants to discuss investment—"

"Chen Yong would not only not suspect anything, but would also feel that President Wang was promoting him and showing him the way."

Zheng Hui picked up the thread: "He's a newcomer who just arrived in the mainland, and he's worried about how to get on the good side of a giant like Pearl River Film Studio."

President Wang will be in charge of film and television production from now on, and he can't make movies without the resources of Pearl River Film Studio; even after the movies are finished, the distribution of DVDs and the sale of the series to television stations will still require President Wang's connections in the publishing house. This is a highly sought-after opportunity that he simply cannot refuse.

"That's right! As long as he flies to the capital in a hurry, the initiative will be completely in our hands."

"Okay, should I tell President Wang personally?" Zheng Hui asked.

"No need, it's just a small matter. It's more natural for me, as an old classmate, to ask." Li Zongming said, picking up the phone and dialing a long-distance number in Guangzhou.

The phone was answered after only a couple of rings, and President Wang's laughter came from the other end: "Old Li! How are you doing in Beijing during the Spring Festival? Should I congratulate Zheng Hui on getting into the Beijing Film Academy in advance?"

"Old Wang, thank you for your kind words. The interview is all set, now we just have to go through the motions of the joint entrance exam."

After exchanging a few pleasantries, Li Zongming got straight to the point: "Brother, I'm here today to ask you for a small favor, since you're about to be promoted."

Li Zongming recounted Chen Yong's involvement with "Young Justice Bao" and his desire for President Wang's introduction. He said that Zheng Hui and his new company were optimistic about the project and wanted to bring Zheng Hui to Beijing to discuss it.

After listening to the phone call, President Wang laughed heartily: "I thought it was something important! It's just making a phone call to a producer from Hong Kong, no problem!"

Even if you hadn't said anything, I would have had to investigate the film and television production companies in Guangzhou after I took office. I've heard of this Chen Yong; he's been running into walls everywhere trying to attract investment lately.

Okay, I'll make the call. I guarantee he'll come to Beijing to see you as quickly as possible!

For President Wang, this was indeed just a small favor.

Zheng Hui is a prominent figure in his political career. Why not help Zheng Hui secure an investment and do a favor for a local film and television company in Guangzhou?

Meanwhile, thousands of miles away in Guangzhou, Chen Yong was smoking a cigarette in frustration.

The ashtray on the table was overflowing with cigarette butts, and the script outline and various budget reports for "Young Justice Bao" were scattered in front of him.

"Mr. Chen, the boss from Zhejiang called again just now." The assistant cautiously pushed open the door and walked in. Looking at the boss's gloomy face, he said in a low voice, "They said they are still interested in investing, but they are not sure about our suspense and period drama theme. They are afraid that the audience will not buy it and they will not be able to break even."

They insisted that we sign a guarantee agreement, promising they would make a guaranteed profit before they would release the funds.

"You're crazy!" Chen Yong slammed his hand on the table, uttering a Cantonese curse in anger: "How can filming guarantee a 100% profit without any risk?"

"If they want me to sign this kind of guaranteed minimum agreement, then what's the point of being a producer? I might as well just work for them for free for the rest of my life!"

Chen Yong was so angry that his chest heaved violently. He had worked for Cinema City and D&B Films in Hong Kong in the 1990s and had seen countless ups and downs.

But now that the Hong Kong film market has collapsed, he went north to start a business with ambition, only to find that money in the mainland is not as easy to obtain as he had imagined.

The mainland film and television market is just starting out. Many bosses have money in hand, and they all want to get involved when they hear that making TV dramas is profitable. There are indeed a lot of investment intentions.

But when it comes to actually spending real money, they become more shrewd than anyone else, full of doubts about new themes, afraid of losing everything, and only dare to hold onto their money and wait and see.

He poured his heart and soul into the script for "Young Justice Bao," subtly blending the suspenseful core of Japanese mystery anime with the background of classic Chinese Bao Gong cases, and packaging it as a youth idol drama. He was certain that once the series was filmed, it would be a huge hit.

However, with a budget of six million, he only managed to raise a little over one million despite running himself ragged, because the bosses were hesitant and afraid of losing money. There was a huge funding gap.

Just as Chen Yong was frowning and even considering whether to compromise and sign the guaranteed minimum agreement, the black phone on the table suddenly rang.

He glanced at the number with some annoyance, and his expression instantly changed.

The caller ID number is the dedicated line for the president's office at Swan Audio-Visual Publishing House!

In Guangzhou's film and television industry, who doesn't have a contact list of important figures on their desk? Rumors have been circulating for a while now that President Wang of the White Swan Film Studio is about to be transferred to Pearl River Film Studio as vice president, in charge of film and television production!

Chen Yong immediately cleared his throat and pressed the answer button: "Hello, President Wang! Hello! This is Chen Yong from Oriental Pearl! I never expected you to call me personally, I'm truly flattered!"

"President Chen, did I disturb your work?" President Wang's voice, with a touch of official jargon yet friendly, came over.

"No, no! Absolutely not! I have to answer your call right away, even if I'm sleeping in the middle of the night!"

"Is that so? I recently heard from friends in the industry that President Chen has drafted a script for 'Young Justice Bao' and is looking for funding?" President Wang asked.

Chen Yong thought to himself that the Pearl River Film Studio's eyes and ears were indeed very sharp, and he quickly complained: "President Wang is very perceptive, this is a good script."

Unfortunately, as a newcomer, I, Chen Yong, found that while the mainland business owners were interested in investing, they lacked confidence in this novel theme. They were all hesitant and worried about not recouping their investment, which stalled progress.

"It's normal to encounter difficulties in the film and television industry. We're all just trying to make a living in Guangdong. If Pearl River Film Studio has any projects in the future, we might have to rely on General Manager Chen for help."

"Oh, President Wang, you flatter me! From now on, if you give the order, I, Chen Yong, will go through fire and water without hesitation!" Chen Yong didn't dare to accept such a reply. He was just worried that his projects wouldn't be tripped up by this local bully. He didn't dare to act like a big shot anymore.

"No problem, no problem." President Wang got down to business: "I called you today because I wanted to make you a connection."

I have a friend named Li Zongming who recently started a talent agency in Beijing and has plenty of cash on hand. He called me yesterday and asked if I knew of any good projects in the south, so I casually mentioned your show, "Young Justice Bao," and he seemed very interested.

Chen Yong's breathing quickened. "An investor personally introduced by President Wang?"

The incoming General Manager Xian of Zhuying Film Studio wields considerable power; his word is worth a fortune. Friends who can be personally recommended and endorsed by him must be capable and knowledgeable in the industry.

"President Wang, thank you so much! You're like a second parent to me!" Chen Yong showered the president with compliments.

"Alright, enough with the formalities. Mr. Li is a straightforward person, but he's very busy with affairs in Beijing and can't possibly come to Guangzhou in person to conduct an inspection."

If you really want to secure this investment, take your script and your sincerity, and go to Beijing. I'll give you his contact information; you can contact him yourself when you get there.

"I'll go! I'll go right away!" Chen Yong agreed without hesitation. "I'll have my assistant book the fastest flight to Beijing right away! President Wang, I can't thank you enough. Once this is done, I, Chen Yong, will definitely host a banquet for you when I return to Guangzhou and toast you properly!"

After hanging up the phone, Chen Yong excitedly pumped his fist.

"Mr. Chen, what's wrong?" The assistant looked blankly at his boss, who had just been full of worry but was now beaming.

"What are you waiting for? Go book a plane ticket! Book a ticket to Beijing this afternoon!"

Chen Yong, brimming with confidence, loudly ordered, "Let those hesitant bosses who dare not part with their real money wait and see! We're going to Beijing to meet the big investors! With President Wang from the daytime company acting as our go-between, this play is a success!"

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