We're building a super chaebol in Hong Kong

"Mr. Su, that's a very sudden question. I'm not prepared at all. As far as I know, the movie industry is much slower at making money compared to real estate. Is Mr. Su planning to venture into the movie business?" Lin Baixin said with surprise and curiosity.

"Mr. Lin should know that I acquired Jia Yi Television at the end of July. In the past month or so, I've been setting up things in the film and television industry. Besides the television station, I've also established a film department. Whether it's Shaw Brothers or Golden Harvest, they all have their own theater chains. Since I'm entering this industry, I naturally need to have my own theater chain," Su Cheng explained.

The movie industry isn't very fast at making money. Last year, the highest-grossing film in Hong Kong was the imported movie '007: The Spy Who Loved Me,' with a box office of only HK$5.26 million.

And the highest-grossing local film was Golden Harvest's 'Money Crazy,' with a box office of HK$5.05 million.

Hong Kong's population is only so big, and the movie market is only so large, so the box office can't be very high.

And the highest-grossing film in Hong Kong throughout the entire 1970s was 'The Private Eyes,' released in 1976. It was very popular after its release and defeated the imported blockbuster 'Jaws,' eventually achieving a box office of HK$8.53 million.

Of course, these are just the box office numbers for Hong Kong. Nowadays, Hong Kong also has many important overseas markets, such as Taiwan and Singapore, which are almost all targeted at the Chinese community. Taiwan, in particular, is one of the most important box office sources for Hong Kong films.

Even so, the box office for a champion film, including overseas box office, is only tens of millions of Hong Kong dollars.

And with movies, it's not like you get to keep all the box office revenue you earn. You also have to share it.

For independent producers who don't have their own theater chains, the box office revenue sharing ratio in Hong Kong is only between 30% and 45%. The revenue sharing for overseas markets is even less, with a ratio of only 20% to 30%.

Of course, for companies like Shaw Brothers and Golden Harvest, which have a complete film industry chain, the profits are much higher. Basically, after deducting production costs and salaries, the rest belongs to the company.

The salaries of Hong Kong actors are not like those in mainland China in later generations, where a star actor can easily command tens of millions of yuan for a single film. The salaries of Hong Kong actors are very low, and they basically implement a salary system, so the production costs are not very high.

This is probably why so many people invest in movies in Hong Kong: the investment is small.

Why does Su Cheng want to enter the not-so-profitable movie industry?

Of course, there are reasons.

First of all, he has many high-grossing Hong Kong movies from later generations in his hands. If he operates them properly, earning several hundred million a year won't be difficult.

Secondly, when the film business develops to a certain stage, he can also shoot those high-grossing international movies.

Chinese movies are not suitable for the European and American markets? He has suitable scripts. Moreover, Hong Kong is not lacking in foreigners at all.

Chinese people can't capture the feeling of Western movies?

Then he'll poach talent from Hollywood, poaching good producers and directors. Anyway, he has plenty of scripts.

Cultivating foreign actors who belong to Hong Kong is not difficult either.

Moreover, movies are only one aspect.

A high-grossing movie can make many actors famous.

And these actors will naturally be contracted artists under Su Cheng's banner.

When artists become famous, they can naturally earn him more money.

Fans' money is the easiest to earn.

Therefore, a movie company can actually drive a lot of development. It's not just movies that make money; the added value is considerable.

Lin Baixin considered for a long time, exchanged glances with Lin Jianming, and then said, "Mr. Su, selling our group's cinemas to you is not impossible. After all, this is just our side business. I just don't know what price Mr. Su can offer."

The investment in cinemas is just an experiment for Lai Sun Group.

What they value more now is the real estate industry.

As for the textile industry, that is their founding business, so it is naturally impossible to abandon it.

However, the film industry is indeed dispensable to them at the moment.

Moreover, if they can sell the cinemas now and recover some funds, they can continue to develop in the real estate industry this year.

However, in this way, if they sell it after having a certain foundation in the film industry, they will completely leave the film industry.

Therefore, if they decide to sell, there will definitely be advantages and disadvantages, but for them, the advantages outweigh the disadvantages.

In the world, almost everything can be bought and sold. The reason for not closing a deal may just be that the price has not been agreed upon.

Therefore, Lin Baixin naturally did not refuse.

Cinemas are not an important investment direction for Lai Sun Group. They cannot contribute much profit to their group in a year.

If they sell the cinemas to Su Cheng, they can also gain Su Cheng's favor and lay a more solid foundation for future cooperation.

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Hearing Lin Baixin say this, Su Cheng knew that there was a chance to buy their cinemas.

Su Cheng directly proposed to acquire their cinemas because Lin Baixin had said earlier that their investment in cinemas was purely a hobby.

In other words, cinemas are not an important industry for them.

"Mr. Lin, I would like to ask, how much are your cinemas currently worth? So that I have a basis," Su Cheng asked again.

In fact, Su Cheng had already understood the Hong Kong cinema market before he came and knew their general situation.

Moreover, he had naturally investigated the situation of the six cinemas under Lai Sun Group, otherwise he would not have made up his mind to acquire these cinemas.

However, since he is taking the initiative to acquire them, he should first ask about their desired price in order to negotiate.

"This is really hard to say. Referring to the prices of other cinemas that have been transferred, the selling price ranges from several hundred thousand to two or three million per cinema. This depends on the size of the cinema hall, profitability, location, and other factors to determine its value. Although our six cinemas are not the most profitable in Hong Kong, they are not bad. Among them, three ranked in the top ten in Hong Kong cinemas in terms of the number of viewers last year, and the other three were also in the top twenty. Such cinemas are not a problem to transfer for more than one or two million in Hong Kong.

Our cinemas can be said to have a very good reputation among citizens. This is also a reputation and fame that we have worked hard to build over three years. Many independent producers' movies in Hong Kong are shown in our cinemas. In addition, even Golden Harvest's movies are one of our sources of films. When we encounter weekends and holidays, we are basically full for every show, so our profits are very good!"

In Hong Kong, cinemas are always called theaters, so many cinema names are named after a certain theater.

Obviously, after knowing that Su Cheng wanted to buy the cinemas under Lai Sun Group, Lin Baixin decided to sell the cinemas after thinking about it.

It's just that on the issue of price, he didn't want to quote himself, but threw the question to Su Cheng.

Su Cheng's financial strength has been dug out by everyone in just a few months.

Without a doubt, this is really a businessman who is one or two levels higher than him, Lin Baixin.

Therefore, Lin Baixin also hopes to take this opportunity to build a good relationship with Su Cheng, and there will be more opportunities for cooperation in the future.

"I offer HK$10 million to purchase all the rights to your six theaters. I wonder what Mr. Lin thinks?" Su Cheng said a relatively reliable number.