Chinese entertainment: What's wrong with actresses wanting to improve?

Chapter 288 China Film Group

March 23, evening.

A private restaurant on the East Third Ring Road.

The private room was small and decorated in a simple, rustic style.

When Fu Yibai arrived, Han Shanping had already brewed a pot of Tieguanyin tea.

"Yi Bai is here, please have a seat."

Fu Yibai took off his coat and hung it on the hanger, sat down opposite Han Shanping, and took a sip of tea.

"Chairman Han invited me for tea today, there must be something he wants to discuss."

"Something happened, or it's great news."

"Great news! Could it be that Chairman Han has his eye on another big project and wants to involve me?"

The last time Han Shanping invited him to invest in "Red Cliff," it was a huge success, taking two years from preparation to release.

The final return on investment is no more than 20%, which is really boring.

No, no.

Huayi has submitted its listing application again.

Han Shanping gently put down his teacup, his gaze carrying a hint of profound meaning.

"They were very well prepared this time, and the Securities and Futures Commission has already shown signs of softening its stance."

I've heard about that.

When Chairman Han mentioned Huayi, could it be that Chairman Han obtained their internal shares?

Want to share some with me?

Fu Yibai said with a smile, teasingly.

"Hey, don't talk nonsense."

I am the chairman of China Film Group Corporation.

"Hahaha."

"They're mentioned because China Film Group is also preparing for its IPO."

China Film Group going public?

China Film Group is not…

"I know what you mean."

Han Shanping waved his hand, interrupting Fu Yibai's next words.

"To be precise, China Film Group is preparing to join forces with several entities to establish a 'China Film Co., Ltd.' and then apply for listing under the name of a joint-stock company."

Han Shanping leaned forward slightly and lowered his voice.

"This is not just about financing, but also a major reform within the system."

We plan to introduce strategic investors to optimize our equity structure.

Yi Bai, your vision and resources are highly valued by us.

Fu Yibai picked up his teacup, took a sip, and didn't rush to reply.

He was considering the pros and cons of this matter.

Advantage: To obtain China Film Group's credit endorsement and distribution channels with minimal capital cost.

In the future, there will be no need to ask for favors regarding the approval of films with special themes, the import of films, and the scheduling of films in theaters.

It's better to rely on yourself than on others, and it's better to be treated like one of your own than to rely on yourself.

Disadvantages: If you participate, this equity stake will lock up a sum of cash, and the return will not keep up with inflation.

More importantly, after Han Shanping retires, no one knows how much value this relationship will still have.

Han Shanping didn't urge him, he just watched him.

A few seconds later, Fu Yibai put down the cup.

"Chairman Han, I will definitely support the restructuring of China Film Group."

But Chenxi can't take too much.

Han Shanping raised an eyebrow.

"How much?"

"5% is fine."

"5%?"

Han Shanping was clearly taken aback for a moment, then shook his head and chuckled.

"Yi Bai, are you being too polite with me?"

I called you here because I genuinely wanted you to get more.

"And now you're pushing it away?"

Fu Yibai smiled.

"Chairman Han, I'm telling you the truth."

The listing of China Film Group will not result in a high price or a particularly strong return.

I invested hundreds of millions, but the return on investment couldn't keep up with the returns of the projects I invested in myself.

But since you've brought it up, I'll definitely give you face.

I'll invest 5%, so the proportion of private enterprises isn't high, the fundamental nature of state-owned enterprises remains unchanged, and the approval process won't get stuck.

Moreover, I don't like being restricted.

"With a 5% share, I can always walk away if I feel uncomfortable."

Han Shanping was silent for a moment, then laughed, a genuine laugh.

"You, you're more shrewd than anyone else."

Fu Yibai smiled too.

"You can't be mediocre; if you expand too much, you have to be careful with your money."

"Okay, 5% it is."

"Thank you, Chairman Han."

Don't give me that.

Han Shanping glanced at Fu Yibai.

"By the way, Yibai."

Have you ever considered turning Dawn into a publicly listed company?

The private room was silent for a few seconds.

"Chairman Han, Chenxi's current cash flow is very healthy, and there is no need to raise funds through an IPO."

I know you don't lack money.

But going public is not just about raising funds.

Going public means standardization and transparency, and it means that Morningstar is transforming from a private company into a public company.

This represents a qualitative leap for the Dawn brand and for your standing in the industry.

He paused, his gaze fixed on Fu Yibai.

"Moreover, the government will provide increasing support for the cultural industry."

In the next few years, film and television companies going public will become a trend.

Huayi is already in preparation, and fiber optics are also in preparation.

Whoever goes public first will gain a competitive advantage.

Fu Yibai remained silent for a few seconds.

He had certainly considered what Han Shanping was saying.

Huayi Brothers, the former founder of Huayi Brothers, went public on the ChiNext board in October 2009, becoming the first listed film and television company in China. On the day of its listing, the stock price doubled, and the Wang brothers, Zhongjun and Zhonglei, saw their net worth skyrocket overnight.

Following closely behind were companies like fiber optics and Huace, thus initiating a wave of film and television company IPOs.

But Chenxi and Huayi are different.

Huayi is a pure film and television company with a single business structure, and going public is its only way out.

Chenxi is a comprehensive group spanning film, music, games, video, technology, and investment, with many of its subsidiaries possessing the capability for independent listing.

Even if they were to go public, it should be a few subsidiaries first, such as Nebula Video or Xingmeng Digital Entertainment. The timing is not right for the whole group to go public as a package; the scale is too large, and the story will be harder to tell.

"Chairman Han, I need to think about this matter again."

Han Shanping glanced at him and nodded.

"Okay, take your time thinking about it."

I'm just offering a suggestion; the specifics are up to you.