Chapter 79: Restart the Glory, Today
The negotiations between Dunhuang and the three investors are moving forward step by step.
Facts have proved that when Lao Wang wants to seriously "pit money", he is really professional.
After the fixed rate of return was raised to 10.8 percent for the interest-bearing bond financing plan, Dunhuang resolutely refused to raise it further.
But Wang Chuanqi saw the mentality of the island people to avoid danger as much as possible, and put forward a plan that they couldn't refuse-
In the first phase of investment cooperation between the two sides, the return of funds and income account period is three years, that is to say, once the three-year contract period expires, Dunhuang will pay off all the investments of the island country investors at one time with interest.
This point makes the representatives of the investors of the island countries crazy in their hearts.
This is a good feeling!
You know, there is a cost to the use of funds.
If you invest a large amount of money, it will take seven or eight years to recover more than 10 percent of the income, which seems to generate profits, but what about the time cost? For example, what about the cost of currency depreciation and interest loss 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 minimized.
Dunhuang gave sincerity, and the island country naturally had to make corresponding concessions, and the negotiations between the two sides accelerated, and finally reached a financing agreement that was satisfactory to both sides a week later.
-- Dunhuang Film Co., Ltd. launched a total of two phases of financing to the island country film investment fund in the form of interest-bearing bonds, the first of which raised 300 million yuan.
The first tranche of financing lasts for three years, starting from the arrival of the funds in Dunhuang's account, after which Dunhuang needs to repay the principal of the bonds of the island country film investment fund and 10.8% interest.
The agreement clearly stipulates that the financing initiated by Dunhuang can only be invested in its film projects, but the specific film to invest in, as well as the specific work of investing in and producing and distributing films, the island country film investment fund has no right to interfere.
After the first phase of financing is fully received, Dunhuang can launch the second phase of financing from the island country film investment fund according to actual needs. The amount of the second tranche of financing can be up to 500 million yuan, and the actual amount will be adjusted according to the investment fund's own financial situation.
This is the main clause of investment and income, and there are more terms in detail.
For example, if Dunhuang fails to complete the repayment of the first phase of financing on time, the island country film investment fund has the right to unilaterally suspend subsequent investment.
Hundreds of pages of formal contracts were drawn up.
Another Northern Korean investment group, after appropriate modifications, also signed a similar investment contract with Dunhuang.
This phase of investment is also for three years, with a fixed rate of return of 10.5 percent, and the investment amount is 150 million yuan, which will be paid in two installments over four months.
The two sides 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 Gunman", which seems to be a sure way to make a profit, as well as the third-party guarantee of the insurance company, Wang Chuanqi also made an additional promise - no matter how high or low the division is, the original investment principal will be returned after three years.
As a result, the two sides reached a cooperation intention more quickly, and the Indian investment fund will provide at least 120 million yuan of investment to Dunhuang to participate in some film and television projects in Dunhuang in the next three years.
Well, as is the case in the circle, this "participation" naturally refers to financial participation, and there is still nothing to do with Indian investors in terms of specific operation.
The conversation went so smoothly, which was really a bit unexpected by Wang Wei.
However, looking at the investment agreement that needed to be signed by him, he understood it somewhat.
"This principal-guaranteed 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.
"If it's a pit and leave, of course I don't have to be so considerate; But since you want to borrow chickens to lay eggs for a long time, you must not take any investor for a fool. Wang Chuanqi has a lot of experience, "There is a certain risk in doing this, but opportunities and risks coexist." ”
The opportunities are clear.
Nearly 600 million yuan was raised at one time, and even if Dunhuang operated multiple medium- and large-scale production projects at the same time, the capital budget was quite sufficient.
Lao Wang said in high spirits: "From next year, we can't just make one or two movies, but make a series of movies every year, as long as some films have a good market response, even if it is not a box office hit, it is enough to return the investor's funds." ”
Wang Wei pouted.
This is indeed a common investment strategy in the industry.
Even for those in the industry, it can be difficult to predict which films will stand out.
Sometimes, you know that the big stars are sure to get off to a good start, but even then, you can't know what kind of box office performance the film will end up with.
That's why it's important to have a good portfolio.
As Lao Wang said, spread the money across a series of films, hoping that some films will stand out and become blockbusters, so as to make up for those that don't.
And this has the added benefit of expanding the company's film library.
Many times, even if a film does not box office well during theatrical releases, it may still have value in the film library years later, in contrast to high-tech products that quickly become obsolete.
The most beautiful thing is that the library resources that can make long-term profits have nothing to do with investors.
Of course, there is no need for Wang Wei to remind Wang Wei of the risks, and Lao Wang is also clear.
If there are not enough blockbuster movies to make up for those movies that do not do well at the box office, Dunhuang will be beaten back to its original shape with a stick!
This is also a true portrayal of the vast majority of small companies in the industry - the creative ability is extremely unstable, resulting in poor creditworthiness; Poor creditworthiness leads to extremely low financing capacity, let alone the ability to ensure stable creative ability without money......
It's a vicious circle.
"All my trust is on you."
Lao Wang pushed 625, saying that the plans he made relied on hard power to speak, and they were 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 unbearable reputation into a legendary reputation, he wouldn't have dared to think of raising such a large amount of money at one time.
Lao Wang waved his arms with the excitement of financing success: "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 is destined to shine in the hands of geniuses like you......"
The corners of Wang Wei's mouth twitched.
No, I wasn't the only one who inherited my grandfather's mantle.
At least the mantle of pouring chicken soup has been passed on to Ling.
If you want to squeeze me, I will say it directly, you don't have to sacrifice this ancestral hundred-year-old chicken soup at every turn, it's too good!
Lao Wang saw Wang Wei's contempt, but he was still in a very good mood: "Don't believe it? I just got a message, guess what? ”
He didn't wait for Wang Wei's reaction, so he blurted out: "It was Dunhuang that regained the nomination of the rating committee!" ”
"At the same time as raising a lot of money, it is expected to return to the rating committee...... What are you not a halo plus? ”
"Restart the glory, just today!"
The news is good news.
But Wang Wei looked at him as if he was first drunk with his own chicken soup!
……