The entertainment industry shouldn't be like this

Chapter 79 Restarting glory, today

The negotiations started simultaneously between Dunhuang and the three parties’ investors are moving forward step by step.

Facts have proved that when Lao Wang wants to seriously "cheat money", he is really professional.

Regarding the interest-bearing bond financing plan, after the fixed rate of return was raised to 10.8%, Dunhuang was determined not to raise it any higher.

But Wang Chuanqi recognized the islanders' mentality of avoiding risks as much as possible and proposed a plan they couldn't refuse——

For the first phase of investment cooperation between the two parties, the return of funds and the accounting period for income are three years. In other words, once the three-year contract period is up, Dunhuang will repay all the investments of the island country investors in one go, including principal and interest.

This fact makes the investor representatives from the island countries feel crazy.

This is great!

You know, funds also have usage costs.

If you invest a large amount of money, it will take seven or eight years to recover more than 10% of the income. It seems to have generated a profit, but what about the time cost? For example, what about the currency depreciation that goes with time and the cost of interest losses?

However, the time cycle for film investment to recover costs and benefits is often more than five years.

With a one-time financing of nearly 600 million yuan, even if Dunhuang operates multiple medium and large-scale production projects at the same time, the capital budget is still quite sufficient.

Wang Wei curled his lips.

Lao Wang pushed 625, saying that the plan he made must rely on hard power, and it was all based on Wang Wei's ability and vision.

After many discussions, the formal contract drawn up was hundreds of pages long.

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

As a result, the two parties reached a cooperation intention more quickly. The Indian Investment Fund will provide at least 120 million yuan of investment to Dunhuang and participate in some of Dunhuang's film and television projects in the next three years.

The opportunities are clear.

The conversation went so smoothly, which was a bit beyond Wang Wei's expectation.

"All my reliance is on you."

So making a good investment portfolio is the most important thing.

Without waiting for Wang Wei's reaction, he blurted out: "Dunhuang was re-nominated by the rating committee!"

"If you are cheating and leaving, of course I don't have to be so considerate; but since you are planning to borrow the chicken to lay eggs for a long time, you must not treat any investor as a fool." Wang Chuanqi said with insight, "There is a certain limit to this.

risks, but opportunities and risks coexist.”

This is a vicious cycle.

If there aren't enough blockbuster movies to make up for those movies that don't do well at the box office, Dunhuang will be beaten back to its original shape!

Lao Wang said enthusiastically: "Starting from next year, we can't just make one or two movies, but a series of movies every year. As long as some of the movies have a good market response, even if they don't become box office hits, it will be enough to return the money to the investors."

Funds are available.”

This phase of investment also lasts for three years, with a fixed rate of return of 10.5%, and an investment amount of 150 million yuan, which will be paid in two installments within four months.

This is also a true portrayal of the vast majority of small-scale companies in the industry - their creative capabilities are extremely unstable, leading to poor credit; poor credit leads to extremely low financing capabilities, and without money, it is impossible to guarantee stable creative capabilities...

Another Northern Dynasty investment group also signed a similar investment contract with Dunhuang after appropriate modifications.

However, after looking at the investment agreement that required his signature, I understood it more or less.

Of course, there is no need for Wang Wei to remind you of the risks, Lao Wang is also aware of them.

The corner of Wang Wei's mouth twitched.

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 "The Gunslinger" that seems to be a sure profit, as well as the third-party guarantee from the insurance company, Wang Chuanqi also made an additional commitment - regardless of the level of the share, the three parties will

The original investment principal will be repaid after the year.

No, I am not the only one who has inherited my grandfather's legacy.

Well, as is customary in the industry, this "participation" naturally refers to financial participation. In terms of specific operations, there is still nothing happening with Indian investors.

"While raising a huge amount of money, you are expected to return to the rating committee... What is this if you don't have a halo?"

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

——Dunhuang Pictures launched a total of two phases of financing from the Island Film Investment Fund in the form of interest-bearing bonds, with the first phase financing of RMB 300 million.

These are the main terms of investment and income, and there are more detailed terms.

If you want to take advantage of me, just say so. You don’t have to resort to this centuries-old chicken soup that has been handed down from your ancestors at every turn. It’s so cool!

Lao Wang saw Wang Wei's contempt, but he was still in a good mood: "Don't believe it? I just got some news, what do you think it is?"

At least this mantle of chicken soup has been passed down to you.

"This capital guarantee clause has transferred a large part of the risk to us!" Wang Wei looked at Lao Wang suspiciously. It was hard to imagine that he would be so "considerate" to investors.

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

And this also has the advantage of expanding the company's film library resources.

Sometimes, you know a big star will guarantee a good start, but even then, you have no way of knowing how the movie will ultimately perform at the box office.

Many times, even if a movie does not do well at the box office during its theatrical run, it may still have value in the film library years later, as opposed to high-tech products that quickly become obsolete.

This is indeed a common investment strategy in the industry.

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

For example, if Dunhuang cannot complete the first phase of financing repayment on time, the Island Film Investment Fund has the right to unilaterally interrupt subsequent investments.

The two sides also agreed that if the cooperation is satisfactory, North Korea will continue to cooperate with Dunhuang.

Even for those in the industry, predicting which movies will stand out is difficult.

Just like what Lao Wang said, spread the funds over a series of movies, hoping that some movies will stand out and become blockbuster movies to make up for those movies that are not blockbusters.

The first phase of financing lasts for three years, starting from the time the funds arrive in Dunhuang's account. After the three-year period, Dunhuang needs to repay the principal of the Island Film Investment Fund bonds and 10.8% interest.

After all the first-phase financing is received, Dunhuang can initiate a second-phase financing from the Island Film Investment Fund based on actual needs. The second-phase financing amount can be up to 500 million yuan, and the actual amount will be based on the investment fund’s own financial status.

Adjustment.

After all, if Wang Wei had not produced two blockbuster movies in two consecutive years, and even turned Dunhuang's previous bad reputation into a legendary reputation, it would have been unthinkable to raise such a large amount of funds at once.

Lao Wang waved his arms with the excitement of successful financing: "Although I don't want to admit it, you have truly inherited the old man's mantle. They are all born with their own halo, so that all the elements of success gather around you, Dunhuang

It is destined to shine in the hands of geniuses like you..."

"Restart glory today!"

The news is good news.

But Wang Wei looked at him as if he was drunk first with his own chicken soup!

…

(End of chapter)