Chapter 707: Wealth Making Machine

Xinye Film and Television Group, although far less than Xinche Electronics Group, has roughly the same level of influence as Xinche Publishing Group.

In the Chinese-speaking entertainment industry, the new venture film and television group is undoubtedly a super giant, controlling the largest TV media in Hong Kong, with the most powerful film production team, and the star economy business is also a monopoly of about 50% of the market. In addition, there is also the Shaw Brothers Cinema Line, as well as the world's widest coverage of VCD distribution channels.

What's even more awesome is that the Humen Film and Television Base, which has been developed for many years in dozens of square kilometers, produces no less than 100 movies and TV series every year. It is expected that in a year or two, Humen Film and Television Base will surpass Hong Kong and become the new Oriental Hollywood.

However, before the listing, 51% of the shares of Humen Film and Television Base Co., Ltd. held by Xinye Film and Television Group were transferred to the parent company Xinqi Future Holdings.

In addition, Xinqi Future Holdings also has Columbia Pictures in the United States. With the help of cooperation with Columbia Pictures, the new venture film and television group has also put half of its hand into Hollywood.

This listing communicated with the Stock Exchange, only 15% of the shares were issued, and after the IPO, the market value was 10 billion Hong Kong dollars.

This market value is not very large-scale in the new entrepreneurship department, but only listing on this market value scale can also allow the company's employees to obtain a huge return on investment.

"The successful listing of the new venture film and television group means a new beginning!" Huang Xizhao, as the general manager of the company, is very excited, "We are the core film and television listed company of the new venture department. In the future, we will take advantage of our positioning in the group and the opportunities provided by the capital market to further expand into the world's top cultural aircraft carrier. Chairman Lin Qi said very early on that he wanted to build us into a giant no less than Disney, and the market value, assets, and profits would reach that level. Although, now we are still far from Disney, less than one-tenth of the others. But...... Recall that in the beginning, our market share in the cultural industry was less than one-thousandth of that of others......! After the listing, we will work further hard to make our market value gradually reach the level of Disney!"

Although Disney is not as huge as it was later, it is already the only listed cultural and entertainment company with an annual operating income of 10 billion US dollars and an annual net profit of more than 1 billion US dollars. The market capitalization is more than $30 billion, while Disney's liabilities are only $3 billion, and the cash lying in the bank is more than $2 billion. So much so that soon after, Disney annexed the ABC television network, further consolidating its position in the American cultural industry, raising its market value to more than $50 billion in one fell swoop. Although Disney in the future is no longer growing at a high speed, relying on mergers and acquisitions and slow growth every year, the market value once approached 200 billion US dollars, and the revenue scale also reached an astonishing more than 50 billion US dollars. Of course, movies only account for a small part of Disney's revenue. Disney is now a Hollywood movie giant, but it only earns $1 billion at the box office. In the future, Disney will be the world's No. 1 film company, but the total annual box office is more than 60 US dollars, and the growth is not so beautiful. Disney's future revenue growth is largely due to the layout of the whole industry chain, including TV networks, Disneyland, Internet interactive entertainment (online games), video, publishing, toy peripherals, food and beverage, financial investment, real estate, hotels, tourism, etc., a series of businesses. Of course, the foundation lies in its cultural industry, which can provide stable performance.

The first step to Disney's success lies in the animation industry, and Mickey Mouse and Donald Duck will never ask for a salary increase. Therefore, the cost of Disney will always be lower than that of live-action movie stars. Subsequently, Disney began to accumulate a large amount of capital, and gradually made peripheral toys. Peripheral toys have further enhanced Disney's profit scale, and it is to invest in real estate to build Disney amusement parks.

Disneyland is gradually entering the stage of profitability, in addition to building more Disney parks around the world. Disney began to invest massively in beverages, fast food, hotels. After that, it entered live-action movies on a large scale, because other opponents who mainly focused on live-action movies had far less stable income than Disney, and in the end, Disney went from two-dimensional entertainment to three-dimensional entertainment. From children, to young adults, entertainment is very close.

Disney's rival, Warner, is also at a similar pace of expansion. However, Warner's initial roots in live-action movies led to a less stable cash flow than Disney's. Moreover, Warner's investment in Atari was a very awesome investment, but because of improper employment, Atari quickly collapsed, causing Warner to miss an opportunity to become the hegemon of the global entertainment industry. It is precisely because of the 80-year-old Warner that it still licks its wounds, which has led Disney to consolidate its position.

In general, the total income of the current Chinese film and television music industry is not as good as the income of a Disney or a Warner company.

But here's the problem...... Disney and Warner are already in a slow growth phase. The future of Chinese entertainment depends on the rise of China's economy and the degree of market development. Once China's market of more than one billion people is developed, there will be no worries about the growth of the entertainment and cultural industry in the coming decades.

In the early days of reform and opening up, China realized that it could not meet the people's growing demand for material, spiritual, and cultural consumption. Therefore, it is necessary to continuously develop the productive forces.

The fundamental purpose of the productive forces is to satisfy people's material and spiritual consumption needs.

……

On the day of the listing of the new venture film and television group, it quickly became the biggest news in Hong Kong's financial industry. In the major newspapers, it is listed as the headline.

Hong Kong's Stock Exchange, financial practitioners, even regard the new venture film and television group as the largest IPO this year.

Huang Xizhao is naturally high-spirited, and the people who also attended the meeting also included its management team and core creative team, in addition, there were Xu Xiaoming, Wang Jing, Stephen Chow, Tsui Hark, etc., representatives of these companies were also full of laughter.

Because, the listing of the new venture film and television group this time has made these people a lot of money, basically, relying on the equity they hold, they can get tens of millions of returns, and hundreds of millions of returns.

Among them, Huang Xizhao, Xu Xiaoming and other management do not participate in film and television content dividends, but there are more equity incentives. Huang Xizhao holds 2.5% of the shares, and has a net worth of 250 million with the current market value alone. Xu Xiaoming, as the general manager of Xingchen TV, and Huang Xizhao's cadres, also have 1.2% of the shares.

Wang Jing, Stephen Chow, and Tsui Hark do not have as much equity as them, but they have the equity of a joint venture subsidiary, as well as the sharing income from filming film and television content.

But in general, the listing of the film and television company this time still made many insiders feel satisfied.