Huayu: From the Era of Ringtones to Becoming a Legend

The plane slowly descended, the roar of the engines gradually subsided, and more than two hours later, it landed steadily at Baiyun International Airport in Guangdong Province.

The three of them took a taxi to the vicinity of Jinyu Film and Television and found a place to stay. Lu Jiuge led the group out for dinner.

Upon arriving at the restaurant, they found a small private room by the window and sat down. Xu Xin then pushed her laptop in front of Lu Jiuge.

"President Lu, I had my team conduct due diligence overnight, and we have a good grasp of about 70-80% of the operational situation of Jinyu Film and Television."

Xu Xin's efficiency surprised Lu Jiuge, who looked intently at the laptop screen.

After glancing through it briefly, Lu Jiuge looked up at Xu Xin:

"Your report is too detailed. Just tell me the general situation, and you can handle the specific details!"

Xu Xin nodded and continued:

"Jinyu Films currently owns 15 directly operated cinemas, 11 of which are in Guangdong Province and four are in surrounding provinces. The locations are not bad, and the profitability of each cinema is actually quite good."

Seeing that Lu Jiuge wasn't looking at the report, Xu Xin took the laptop and reported while swiping the screen:

"They started their nationwide expansion plan last year, aiming to reach 70 cinemas within three years and become a top-tier cinema chain brand."

Seeing Xu Xin's strong work ability, Zheng Shuyi was not to be outdone and added from the side:

"I also asked some organizations in Hong Kong to inquire with cinemas in mainland China, and Jin Yu has indeed made great strides in the past two years."

Equipment upgrades and store rentals cost a lot of money at once, putting a tight strain on our cash flow.

Xu Xin nodded and continued:

"The problem lies with the shareholders. The controlling shareholder is Jiayu Real Estate, which is basically just dabbling in other industries."

"In the past two years, when the real estate market was booming, we were willing to invest some money. Now, with slow capital recovery, we've long since lost the desire to continue pouring money into the film and cinema sector, and our attitude towards expansion is basically negative."

After a pause, Xu Xin sighed:

"The real trouble is another minority shareholder, Yangcheng Film Company, which has a state-owned background and only holds 4% of the shares, but its influence is by no means weak."

Lu Jiuge asked in confusion:

"State-owned assets?"

"Yes. Yangcheng Film Company is a purely state-owned enterprise. They are very inflexible in their work and have many procedures."

"If this collaboration encounters difficulties, it's most likely their fault!"

Lu Jiuge lightly tapped the desktop with her fingertip:

"So, Jiayu Real Estate is a burden they're trying to get rid of, while Yangcheng Film Company is an obstacle?"

That's pretty much the situation.

Xu Xin nodded:

"Home Entertainment Real Estate is eager for someone to come in and take over, inject capital, and they are even willing to dilute their shares."

"But if Guangzhou Film Company vetoes our application, we won't be able to get in, no matter how much money we have."

"What about the valuation?"

Lu Jiuge stopped dwelling on it and changed the subject.

Xu Xin scrolled through the computer screen:

"Based on a comprehensive assessment of Jinyu Film & Television's assets, revenue, and liabilities, our team has given a valuation of 4 million to 4.5 million Dragon Coins."

Lu Jiuge was silent for a few seconds before slowly speaking:

"Price is not an issue. What I want is not a small stake, but complete control over the cinema sector."

"Qianxing Entertainment invests heavily in projects every year; content resources are our lifeline."

"Without our own cinemas, and with distribution rights and box office revenue sharing controlled by others, my closed-loop industry chain doesn't really mean I have true control."

Xu Xin nodded in agreement and reminded her:

"If you want to have a say, you must increase capital and expand shares, or directly acquire shares. Both of these steps cannot bypass the shareholders' meeting, and you still can't avoid the hurdle of Yangcheng Film Company."

"Let's put the obstacles aside for now."

Once all the dishes were served, Lu Jiuge stopped talking about work and picked up her chopsticks:

"Let's eat first, then go back and rest to recharge."

I'll go directly to Jinyu Film and Television tomorrow at noon, meet with Sun Minghai, and then we'll make further plans.

After picking up a piece of food, Lu Jiuge suddenly asked:

"Have you heard anything about Sun Minghai?"

"I've looked into it."

Xu Xin looked at the laptop again and said:

"Sun Minghai is the vice president sent by Jiayu Real Estate, and also serves as the chairman of Jinyu Film and Television. He was the one who came up with the expansion strategy."

He is very capable, has resources, and is ambitious, but he lacks power and money, and is feeling very uncomfortable being controlled by the two shareholders.

After listening, Lu Jiuge smiled and said:

"It seems this Sun Minghai is quite a talent. I'll have a good talk with him tomorrow!"

……

The next day at noon, Lu Jiuge and the other two took a taxi to the Jinyu Film and Television Building.

Lu Jiuge got out of the car and led Xu Xin and Zheng Shuyi straight into the lobby.

The receptionist had already been notified, and as soon as Lu Jiuge gave her name, she immediately stood up and bowed.

"Hello, Mr. Lu. Mr. Sun is already waiting for you in his office upstairs. I'll take you up there now."

The three were led by the receptionist to the top floor chairman's office by elevator.

As soon as the elevator doors opened, Sun Minghai was already standing at the elevator entrance waiting for them.

He was in his early forties, slightly overweight, with a very warm smile, and quickly stepped forward to extend his hand:

"Mr. Lu! We've been waiting for you! I've heard so much about you!"

"Mr. Sun, you're too kind. I apologize for the intrusion and for disturbing your work."

Lu Jiuge reached out and shook hands with him.

"Not at all. Mr. Wang personally made the arrangements, so even if I'm busy, I have to wait for him in person."

Sun Minghai stepped aside to lead the way: "President Lu, please come in. Let's sit in the office and talk slowly."

Sun Minghai stepped aside to lead the way: "President Lu, please come in. Let's sit in the office and talk slowly."

After entering the office, and after the receptionist had made tea for them and left, Sun Minghai finally spoke:

"Mr. Lu, I have been paying attention to Qianxing Entertainment Group recently."

Especially after you returned to Hong Kong from South Korea and became a top figure in the Asian entertainment industry, you've become a prominent figure that everyone talks about at gatherings!

Lu Jiuge smiled faintly:

"Mr. Sun, you flatter me. These are just small-scale operations."

"This is no small matter."

Sun Minghai waved his hand, his tone serious:

"I have studied the entire industry chain layout of Qianxing Entertainment. From music production to artist management, and then to film and television investment and content distribution, the chain has been fully opened up, except for the most core terminal cinema segment."

"Without its own cinemas, no matter how high the quality of the content, the rights to screen films, the coordination of release dates, and the resources for publicity and distribution will be firmly controlled by the upstream cinemas. This is always a fatal weakness for a full-industry chain group like Mr. Lu's."

He spoke directly, so Lu Jiuge dropped the pretense and got straight to the point:

"Since Mr. Sun has put it this way, I won't beat around the bush."

I do want to invest in Jinyu to fill the last gap in Qianxing Entertainment's business.

He looked directly at Sun Minghai:

"Then Mr. Sun, please be frank. Given Jinyu's current situation, what are the chances of my investment succeeding?"

Sun Minghai's smile faded, and he sighed.

"Mr. Lu, to be honest, it's quite difficult. Jin Yu's two shareholders have completely different attitudes."

"The major shareholder, Jiayu Real Estate, has long lost patience with the cinema business. If you are willing to invest more and shoulder the pressure, they will wholeheartedly support you. There should be no problem with this."

"But the other hurdle is difficult."

Lu Jiuge spoke calmly:

"Yangcheng Film Company, right?"

Sun Minghai was somewhat surprised:

"Did President Lu even find out this beforehand?"

"You always have to do your homework before you do anything."

Lu Jiuge spoke calmly:

"With state-owned background, they seek stability and fear losses, oppose expansion, and will reject any capital increase that may bring risks."

Sun Minghai was also somewhat frustrated:

"That's absolutely right. They only own 4% of the shares, but they're using the rules of state-owned assets to obstruct everything."

"I want to expand, but they disagree. I want to bring in strategic investment, but they still disagree. As chairman, I'm often just a figurehead."

Lu Jiuge leaned back in her chair, tapping the armrest lightly with her fingertips. The smile on her face faded, and her tone carried a hint of regret:

"So even if I were willing to invest in Jinyu Film and Television, it would ultimately come to nothing if I got stuck at Yangcheng Film Company."

He paused deliberately, his gaze falling on Sun Minghai's face as he observed the other's reaction.

Sun Minghai's heart leaped into his throat, and his tone suddenly became urgent:

"President Lu, don't worry! I have a very practical suggestion that can completely bypass this problem!"