Reborn Xiangjiang as a Tycoon

Chapter 387 1978 Corporate Annual Report (3)

Lin Baicheng, a cinema chain company, invested a total of HK$170 million in Star Cinema. Cinema chain companies acquire venues in busy places and convert them into cinemas, so each cinema costs a relatively large amount of money.

However, Star Cinema currently only has 22 cinemas in Hong Kong, so not all of the HK$170 million has been spent, and there is even more than HK$100 million left.

Star Cinema's 22 cinemas basically cover the entire Xiangjiang area, but more than ten more will be opened in 1979 to cover remote and economically disadvantaged areas to achieve the goal of truly covering the entire Xiangjiang area. The remaining areas are due to

Because the location is relatively remote or the economy is poor, the venue cost will be less and the funds required will not be too much.

The remaining funds will naturally be used for overseas expansion. Markets such as Australia, Southeast Asian countries, and even Japan are expansion targets as long as they can enter, in order to create a cinema chain covering Southeast Asia.

Of course, to achieve such a big goal, Star Cinema's remaining funds of more than 100 million Hong Kong dollars are not enough, but this goal cannot be achieved at once. More than 100 million Hong Kong dollars was enough for the company to spend in 1979.

By the end of 1978, Star Cinema had released a total of five movies, two of which were shot by Star Cinema, namely "The Snake" and "Drunken Master" starring Cheng Long. Among the other three movies,

One is Hui's Film Company's "The Pledge of Allegiance" starring the three Hui brothers, and the other two films are "Tiger Frog" and "Mr.

"Salted Fish Stand" filmed by the New Art City Film Company established by Mecca and Shi Tian was scheduled to be released in January 1979. It is currently in the middle and late stages of release, so its performance cannot be counted in 1978.

In the annual report.

Among the five movies, "The Affair" had the highest box office, with nearly 8 million Hong Kong dollars. The cinema took half of the share, making nearly 4 million Hong Kong dollars. The printing, publicity and other expenses were all borne by Hui's Pictures as the producer, and

Star Cinema has nothing to do with it.

The box office of "Drunken Master" is not low, just over 7 million Hong Kong dollars. The box office of the three movies "Snake", "Tiger Frog" and "Mr.

8.2 million Hong Kong dollars, which is a little higher than a "Deed of Prosecution".

For these five movies, the theater chain took half of the box office share, which is about 11.5 million Hong Kong dollars, which is pretty good.

In 1978, the top two box-office rankings of Hong Kong movies were "The Affair" and "Drunken Master". The box office results of the two were not much different. But in third place, "The Big Evil and the Little Sister"

However, the box office of the movie was less than 3.6 million Hong Kong dollars, less than half of "The Contract".

The three films "The Snake", "Tiger Frog" and "Mr. Zan and the Money-seeker" were all ranked in the top ten of the Hong Kong movie box office rankings in 1978. Among them, "Tiger Frog" happened to be ranked tenth, only

The box office is about 20,000 Hong Kong dollars higher than the 11th place.

From a theater perspective, five of the movies released this year ranked among the top ten at the box office, which is already a pretty good performance. Especially since Star Cinema only released five movies in 1978, it happened to be

All of them are ranked in the top ten. Not only do they make a lot of profits, they are also quite respectable.

In addition to the box office share, the profits of the theater chain also include income from snacks and drinks in the theater, which includes the income from the arcade machines and claw machines placed in each theater. There are not many arcade machines and claw machines placed in the theater.

, mainly for leisure use by the audience waiting for the movie to start, so as not to make them impatient.

The assets of the arcade machines and claw machines placed in the theater belong to two companies, Galaxy Games and Jupiter Toys. However, these two companies put the machines in the theater, and the income from the theater's space and electricity costs is divided between the theater and the two companies.

The companies share equally.

Because the company is 100% controlled by the same boss, there is no need to worry about who has hacked whose money. As long as the employees have not hacked the boss Lin Baicheng's money, that's fine.

In 1978 last year, Star Cinema's box office share plus snacks and drinks and other income totaled 13.8 million Hong Kong dollars, and the profit was about 12 million Hong Kong dollars. The reason why there was such a high profit was because employee salaries plus water and electricity expenses were not

It's very big, and the main expense of the theater is the venue fee.

Compared with Star Cinema’s investment of more than 60 million Hong Kong dollars, the annual income in 1978 was 12 million Hong Kong dollars, and that was not the full-year income. If a few of the movies released in theaters every year can occupy the top ten in the box office rankings, then the theater’s

The income is absolutely explosive, and the cost can be earned back in just a few years.

It's a pity that the film industry is too uncertain. Whether it can make money is up to the audience, and no one is sure about the audience's taste. However, this is not a problem for Lin Baicheng, who has been reborn. He believes that those who were before his rebirth

Superstars can't be too bad in this life.

There is a big difference in whether a cinema is its own. Take Jiahe Cinema Line as an example. Except for a few cinemas in Jiahe Cinema Line, most of them are franchised by others. In addition to paying a fixed rent to the cinemas every year,

, a portion of the cinema’s box office share will also be given to the cinema.

In other words, with the same box office share of 10 million Hong Kong dollars, after deducting employee salaries, water, electricity and other expenses, Star Pictures can earn 89 million Hong Kong dollars, but Golden Harvest can earn less than half. This is the difference between cinemas and cinemas.

.

However, the high income of Star Cinema is based on high investment. It will take several years to recover the cost of the current investment of more than 60 million Hong Kong dollars, and it must also perform well if the movie released in the theater performs well, otherwise the performance will be worse.

The longer it takes to recover costs. Also, not everyone has so much money to invest.

In general, in 1978, although Star Cinema invested more than 60 million Hong Kong dollars, it also had a good start, with a profit of almost 12 million Hong Kong dollars. The results were quite good.

Currently, there are nearly 120 million Hong Kong dollars in the account of Star Cinema. Part of these funds will be invested in the construction of Xiangjiang Cinema next year, and a larger part will be invested in the construction of cinemas in Southeast Asia, Japan and other countries.

.

Of course, not all countries will go there. In addition to seeing which countries’ markets can be entered, it also depends on whether the market is friendly to Chinese people. Lin Baicheng will not just send money to your doorstep.

Lin Baicheng is not responsible for the specific operations. With Zuo Xiangqing as the manager, Lin Baicheng only needs to determine the general direction.

Lin Baicheng is quite satisfied with the performance of Star Cinema last year. He hopes that he can continue his efforts this year and that the performance in 1979 cannot be worse than that in 1978.

After looking at the performance of the theater chain, Lin Baicheng naturally looked at the performance of Xingchen Pictures. After all, the two are closely related.

(End of chapter)