The entertainment industry shouldn't be like this

Chapter 79 Restart the glory, just today

The negotiations started at the same time between Dunhuang and the three investors are moving forward step by step.

Facts have proved that when Pharaoh wanted to "cheat money" seriously, he was really professional.

Regarding the interest-bearing bond financing plan, after the fixed rate of return was increased to [-]%, Dunhuang firmly refused to raise it any further.

But Wang Chuanqi saw the islanders' mentality of avoiding risks as much as possible, and proposed a plan that they could not refuse——

For the first phase of the investment cooperation between the two parties, the repayment of funds and the income account period are three years. That is to say, once the three-year contract period expires, Dunhuang will pay off all the investment of the island country investor with the principal and interest at one time.

This made the investment representatives of the island countries feel crazy.

It's so brave!
You know, funds also have a cost of use.

If you invest a large amount of money, it will take seven or eight years to recover more than [-]% of the return, which seems to be profitable, but what about the time cost?For example, what about currency depreciation and interest loss costs over time?

However, the time period for film investment to recover costs and benefits abounds in more than five years.

If it is shortened to three years, there is no doubt that the time cost can be compressed to the minimum.

Dunhuang showed sincerity, and the island country naturally had to make corresponding concessions. The negotiations between the two sides accelerated, and finally reached a financing agreement that both parties were relatively satisfied with a week later.

——Dunhuang Films launched a total of two phases of financing to the Island Film Investment Fund in the form of interest-bearing bonds. The first phase of financing was 3 million yuan.

The first phase of financing lasts for three years, starting when the funds arrive in Dunhuang’s account. After the three-year period, Dunhuang needs to repay the bond principal and [-]% interest of the Island Film Investment Fund.

The agreement clearly stipulates that the financing initiated by Dunhuang can only invest in its film projects, but the island country film investment fund has no right to interfere with the specific investment in which film, as well as the specific work of investment, production and distribution of the film.

After the first phase of financing is fully credited, Dunhuang can initiate the second phase of financing from the Island Film Investment Fund according to actual needs.The second phase of financing can reach up to 5 million yuan, and the actual amount will be adjusted according to the capital status of the investment fund itself.

This is the main clause of investment and income, and there are more clauses on the details.

For example, if Dunhuang fails to complete the repayment of the first phase of financing on time, the Island Film Investment Fund has the right to unilaterally suspend subsequent investment.

There are many things down, and the formal contract drawn up is hundreds of pages thick.

And another investment group from the Northern Dynasties signed a similar investment contract with Dunhuang after appropriate modification.

This phase of investment also lasts for three years, with a fixed rate of return of 1.5%. The investment amount is [-] million yuan, which will be paid in two installments within four months.

The two parties also agreed that if the cooperation is satisfactory, the DPRK side will continue to cooperate with Dunhuang.

As for Indian investors who are more willing to invest in specific film and television projects, in addition to the start-up project of the drama version of "Genius Gunner" that seems to be profitable without losing money, as well as the third-party guarantee from the insurance company, Wang Chuanqi also made an additional promise-no matter how high or low the share is, three After one year, the original investment principal will be refunded.

As a result, the two parties reached a cooperation intention more quickly, and the Indian investment fund will provide Dunhuang with an investment of at least 1.2 million yuan to participate in some of Dunhuang's film and television projects in the next three years.

Well, according to the practice in the circle, this "participation" naturally refers to the participation of funds, and there is still nothing to do with Indian investors in terms of specific operations.

It was a bit beyond Wang Wei's expectation that the talk went so smoothly.

However, looking at the investment agreement that needs to be signed by him, he somewhat understands it.

"This capital preservation clause transfers a large part of the risk to us!" Wang Wei looked at Lao Wang suspiciously, and it was hard to imagine that he would be so "considerate" to investors.

"Of course, I don't have to be so considerate if I just get out of the way; but since I want to borrow chickens to lay eggs for a long time, then don't treat any investors as fools." Wang Chuanqi said quite thoughtfully, "It is necessary to risks, but opportunities and risks coexist.”

The opportunities are obvious.

Nearly 6 million yuan was raised at one time. Even if Dunhuang is operating multiple medium and large-scale production projects at the same time, the capital budget is quite sufficient.

Lao Wang said in high spirits: "From next year, we can't just make one or two movies, but a series of movies every year. As long as some movies are well received by the market, even if they don't hit the box office, they will be enough to return the investors' money." funds."

Wang Wei pouted.

This is indeed a common investment strategy in the industry.

Even for those in the industry, it is very difficult to predict which movies will stand out.

Sometimes, you know a big star will secure a big opening, but even then, you have no way of knowing how the movie will end up doing at the box office.

So it is the most important to do a good job in the investment portfolio.

As Lao Wang said, spread the funds over a series of movies, hoping that some movies will stand out and become blockbuster movies, so as to make up for the movies that don't.

And there is another benefit - to expand the company's film library resources.

Many times, even if a movie doesn't do well during its theatrical run, it may still have value in a film library years later, the opposite of a high-tech product that quickly becomes obsolete.

The most wonderful thing is that the film library resources that can achieve long-term profitability have nothing to do with investors.

Of course, there is no need for Wang Wei to remind you of the risks, and Lao Wang knows it all too well.

If there aren't enough blockbuster movies to make up for those poor box office movies, Dunhuang will be beaten back to its original shape with a stick!

This is also a true portrayal of most small-scale companies in the industry-creative ability is extremely unstable, resulting in poor credit; poor credit leads to extremely low financing ability, and it is impossible to guarantee stable creative ability without money...

It's a vicious cycle.

"All I rely on is on you."

Lao Wang pushed [-], saying that the plan he made had to rely on hard power to speak, and it was all based on Wang Wei's ability and vision.

After all, if Wang Wei hadn’t come up with two blockbusters for two consecutive years, and even turned Dunhuang’s previous bad reputation into a legendary reputation, it would be unthinkable to raise such a large sum of money at once.

Lao Wang waved his arms with the excitement of successful financing: "Although I don't want to admit it, you really have completely inherited the mantle of the old man. You are born with your own halo, so that all the elements of success gather around you. Dunhuang Destined to shine in the hands of geniuses like you..."

The corner of Wang Wei's mouth twitched.

No, I'm not the only one who inherited my grandfather's mantle.

At least the mantle of pouring chicken soup has been passed on to you.

If you want to squeeze me, just say it, you don’t have to sacrifice this century-old chicken soup handed down from your ancestors, it’s too bad!
Old Wang saw Wang Wei's contempt, but he was still in a good mood: "Don't believe me? I just got some news. Guess what it is?"

Without waiting for Wang Wei's reaction, he blurted out: "Dunhuang has been nominated by the rating committee again!"

"While raising a huge amount of money, it is expected to return to the rating committee... What are you not haloing?"

"Restart the glory, just today!"

The news is good news.

But Wang Wei looked at him as if he was first pumped up by his own chicken soup!

……

(End of this chapter)