Huayu: Hard fight against Zhang Weiping at the beginning

Chapter 637 Huayi Brothers, Pay 'Protection Fees'

In the Star Entertainment conference room, the lunch of the three was coming to an end.

How about braised pork rice?

"Not bad, where's your beef rice?"

"No, it doesn't taste as good as before," Dong Jianqiang said, wiping his mouth as he shook his head.

Zhang Chen laughed and said, "It's not that the taste has changed, it's that you've eaten too many good things."

Dong Jianqiang was taken aback, then smiled and nodded: "You're right. Come to think of it, it's been several years since I've eaten this."

Zhong Lifang sat opposite, wiping her fingers with a wet wipe: "Oh, right, don't forget what I told you before, we've arranged for a securities firm to come and give us training tomorrow, it'll be all day, so don't schedule anything else..."

"Understood, Mr. Zhong. You're an expert in this field. Do you think Huayi Brothers' stock will rise or fall after its IPO?"

"I think it should go up, after all, it's the first media company to be listed in mainland China."

"The first one?"

"Uh, I wasn't quite right. Hunan TV & Broadcast Intermediary Co., Ltd. was the first media company to be listed on the A-share market. They listed on the Shenzhen Stock Exchange in 99. Huayi Brothers should be considered the first privately-owned media company to be listed in mainland China..."

"Zhang Chen, what do you think?"

"It's definitely going to surge!"

He clearly remembered that after Huayi Brothers went public, the company's stock price soared, and those celebrities who bought the initial shares became rich.

Zhou Gongzi could have taken off too, but she never touched stocks or anything like that, so Huang Xiaoming took over her shares and she became the envy of everyone.

"I wish we could have some Huayi Brothers' original shares too!"

Dong Jianqiang's murmur seemed to open a new door for Zhang Chen.

It's a shame I'm a reborn person. Huayi Brothers' stock price soared after its IPO, why didn't I think of getting some? But it doesn't seem too late now.

"We can!"

"what?"

Dong Jianqiang didn't hear him clearly, so Zhang Chen repeated, "We can buy some Huayi Brothers stock at a low price from the Wang brothers."

"How could that be? They're about to go public, why would they sell shares now?"

Zhong Lifang shook her head: "They did internal subscriptions in 07 and 08, but back then our two families were bitter enemies."

Zhang Chen asked, "What was the price at which they subscribed internally?"

"It was 07 cents in 5, 3 yuan in 08, and the current issue price is at least 16..." Zhong Lifang knows all about these things.

"Then I won't bully them, I'll just set the price at 3 yuan."

"Are you serious?"

"Of course, do you two want some? If so, order some together."

"That's unlikely. Although our two families have thawed the ice, it's still improbable that you'd want to buy someone else's shares at such a low price..."

Zhong Lifang found it absurd. Huayi Brothers was just waiting to go public and raise money. The issue price was already set so high. How could they possibly resell it at a low price?
However, his relationship with Zhang Chen was not as close as that with Dong Jianqiang, so he was very careful with his words.

Dong Jianqiang echoed this sentiment: "The Wang brothers are so shrewd. In 08, they only gave shares to their own people. We had a falling out with them before, and the ice had just been broken at the premiere of 'Gravity.' Would they really be willing to give up their shares?"

Zhang Chen remained calm and composed: "Then think about it, why did they take the initiative to ease tensions with us during the 'Gravity' movie?"

Dong Jianqiang was taken aback, then instantly understood, and slapped his thigh. "You mean... make them pay 'protection money'?"

Zhong Lifang also realized what was happening, and almost spat out the mineral water she had just drunk. She quickly wiped her mouth with a tissue: "I understand. What they're most afraid of right now is something going wrong with their IPO. If you move a movie to the week they go public, or mention on Weibo that 'there are questions about Huayi Brothers' equity distribution,' their stock price will collapse, won't it?"

Zhang Chen smiled and nodded, looking quite composed: "That's roughly the idea, but we can't go directly to the Wang brothers. That would make us seem too domineering and give them something to criticize."

He paused, then found the name "Huang Xiaoming" in his contacts. "Let Xiaoming pass on a message to them. He's very tactful and has good relationships with both sides, so he's the most suitable person to relay the message."

Dong Jianqiang stroked his chin and nodded: "Okay, Xiaoming is a reliable person and won't spread rumors, but you have to make it clear to him so that he doesn't get caught in the middle."

Zhang Chen hummed in agreement and pressed the call button.

The phone was answered after three rings.

"Brother Chen? Why are you calling me all of a sudden?" Huang Xiaoming's voice came through the receiver, sounding a little puzzled.

Zhang Chen leaned back in his chair, speaking casually: "Nothing else, I just wanted you to do me a favor and pass on a message to Wang Zhongjun and Wang Zhonglei of Huayi Brothers."

"You said."

"Tell them that I want to buy some shares before Huayi goes public, at the price of the internal subscription price in 08."

There was a two-second silence on the other end of the phone, followed by Huang Xiaoming's troubled voice: "Brother Chen, I have to tell you the truth about this. The shares within Huayi Brothers have already been distributed. The 2008 distribution was the last one to give to the stars and core team. There are no extra shares in the company's accounts now. The Wang brothers all hold personal shares. How can we just give them away?"

"I know the shares have been distributed."

Zhang Chen interrupted him, his tone less relaxed and more certain than before.
“I know the rules from 08, but I have my reasons. You don’t need to know whether they have shares or why they are given them. Just convey the message.”

"Okay, Brother Chen, I'll call Boss Wang and the others right away."

Zhang Chen has already said that this matter has nothing to do with Huang Xiaoming; he was just passing on a message.

However, he was naturally kind-hearted, and especially knowing that Huayi Brothers and Star Entertainment had just thawed their relationship, he didn't want to see the two sides fall apart again, so he couldn't help but say, "But I have to tell you, the Wang brothers are also stubborn, especially Wang Zhonglei. If they don't agree..."

"They'll agree."

Zhang Chen's tone was firm, as if he had an unquestionable confidence, "You just need to deliver the message, and you don't need to worry about the rest."

After hanging up the phone, Zhang Chen tossed his phone onto the table and smiled at the two people opposite him.

Dong Jianqiang looked at him: "Is everything alright with Xiaoming? Don't think we're using him as a pawn."

"Don't worry, Xiaoming is sensible."

Zhang Chen knows Huang Xiaoming too well. He's a smart man. Even when they were at odds with Huayi Brothers, Huang Xiaoming never cut off contact with either side.

Although he did not join Huayi Brothers, he has a good relationship with the Wang brothers.

Zhong Lifang stacked the empty lunchboxes and threw them into the trash can: "What about the Wang brothers? Will they really give in so easily?"

"It's not easy, but they have no choice. Going public is a big deal, and they won't risk their future."

Otherwise, we could just post a Weibo message that makes it seem like we're targeting them, and their stock price wouldn't be able to take it..."

Dong Jianqiang listened and couldn't help but laugh: "That's a ruthless move of yours. But it makes sense. When dealing with the Wang brothers, you have to be more confident than them."

Zhang Chen paused for a moment: "They are very smart. They didn't release any movies during this year's Lunar New Year season, but this is also our opportunity. Otherwise, I really wouldn't have wanted their shares. No matter what movies they release, they will definitely be beaten to a pulp by 'Pacific Rim 2'..." Everyone knows that during "Gravity", the Wang brothers didn't really want to reconcile with him. They were just afraid of the capital and resources he had. Now, this "fear" is the basis for his confidence to ask for shares.

……

Meanwhile, in the conference room at Huayi Brothers' headquarters, the atmosphere was as if frozen.

Wang Zhonglei slammed his phone on the table, his voice filled with anger: "Zhang Chen is taking advantage of our misfortune! He wasn't eligible for the internal subscription in 2008, but now that we're going public, he's asking for shares, and even offering them at the 08 price. Why doesn't he just rob us?"

Wang Zhongjun sat opposite him, holding a pen in his hand, the nib poking a small hole in the "equity structure" page of the prospectus.

He was calmer than Wang Zhonglei, but he couldn't hide the displeasure in his eyes: "Do you think he really wants to buy shares? He wants 'protection money.' To put it bluntly, he's seen through our weaknesses."

"Then we should just give it to him?" Wang Zhonglei protested. "Our company is now valued at 3 billion, and he's asking for shares at a low price. Isn't that bullying?"

"You have to put up with it even if people bully you."

He glanced at Wang Zhonglei and said, "Our company is just one step away from going public. Whether we can successfully list and whether the stock price can be stabilized depends entirely on market confidence. You know who Zhang Chen is and how influential he is in the industry."

Wang Zhongjun rubbed his temples and pushed the prospectus in front of Wang Zhonglei. "Look at this issue price, 16.5-18.5 yuan. If the stock price falls below the issue price on the listing day, all our previous efforts will be in vain."

Who is Zhang Chen? He has 20 million followers on Weibo, and he can cause panic among retail investors with just a few words.

"If he were to throw out any one of his Hollywood projects and say it was going to compete with us, we wouldn't be able to withstand it. What would happen then? Our stock price would plummet..."

Wang Zhonglei fell silent. He leaned back in his chair, crossed his arms, and looked at himself with resentment in his eyes.

He knew Wang Zhongjun was right; Zhang Chen had their Achilles' heel—with the IPO imminent, they couldn't withstand any setbacks.

“The quota from 08 has long been liquidated. If we want to give Zhang Chen shares now, we can only do so from our brothers’ personal shareholdings.”

Wang Zhonglei's voice lowered, tinged with helplessness, "We worked so hard to get the company listed, and now we have to give up our shares. It's so frustrating."

Wang Zhongjun sighed, tracing lines on the prospectus with his finger: "We have to endure this frustration. Once the IPO is successful and the stock price increases tenfold or eightfold, what are these shares? No matter how arrogant Zhang Chen is, he still has to consider the face of capital. It's not worth arguing with him now."

He paused, then looked up at Wang Zhonglei: "Give him 500 million shares, at 3 yuan per share. But we must sign an agreement with him that he cannot mention this matter to outsiders within six months of the listing, nor can he go against our schedule."

Furthermore, let Huang Xiaoming explain to him that this is out of consideration for everyone in the industry, not because he's afraid of him.

Wang Zhonglei glanced at Wang Zhongjun, and finally nodded: "Okay, we'll do it your way. I'll have Huang Xiaoming liaise with Zhang Chen and get the agreement signed as soon as possible, to avoid any unforeseen complications."

Wang Zhongjun picked up a pen and signed his name on the prospectus. The sound of the pen tip gliding across the paper was particularly clear in the quiet conference room.

Looking out at the skyscrapers, he knew that these 500 million shares were not "protection money" for Zhang Chen, but "insurance money" for Huayi's listing.

Meanwhile, Zhang Chen had already received a call back from Huang Xiaoming.

Upon learning that the Wang brothers had agreed to give him 500 million shares, he expressed some dissatisfaction: "500 million shares? That's like giving alms to beggars! There aren't enough for the three of us. We need at least 1500 million shares!"

The Wang brothers on the other end were so angry they almost vomited blood after receiving another call from Huang Xiaoming.

This is too bullying.

Huang Xiaoming also felt a little embarrassed; Zhang Chen really didn't give him any face.

But now he really holds the reins of Huayi Brothers, and the Wang brothers are powerless to do anything about it.

“Tell them that we can only offer a maximum of 1200 million shares; any more than that, and we won’t have a single share left.”

Huang Xiaoming could hear the gritted teeth in the voice.

He called Zhang Chen again, and Zhang Chen readily agreed.

He felt that 1200 million shares were definitely not the Wang brothers' bottom line, but it was indeed inappropriate to pressure them any further.

As the old saying goes, know when to stop.

He handed the phone to Zhong Lifang: "Consult with Xiaoming, draft the agreement, and sign it as soon as possible."

Zhong Lifang took the phone and nodded: "Okay, I'll take care of it right away."

Dong Jianqiang looked at Zhang Chen and said with a smile, "Zhang Chen, you really know how to do things. Huayi Brothers went public, and we benefited from it. I'm thinking, maybe we can pull a similar trick on other media companies that go public in the future..."

He seems to have found a new way to get rich.

"You're overthinking it. I dared to do this at Huayi Brothers because the money was rightfully theirs. But if every company does this in the future, do you believe the China Securities Regulatory Commission will have a talk with us?"

"Haha, I was just saying, how could we possibly do such a thing?"

Dong Jianqiang chuckled awkwardly, feeling as if he had lost hundreds of billions of yuan.

Zhang Chen knew very well that this could only be done once.

Of all the domestic film and television companies, Zhang Chen actually looked down on Orange Sky the most, which is why he cut off its path to listing.

Huayi Brothers ranked second, and Zhang Chen wasn't actually averse to the other film and television companies.

Despite their various problems, companies like Xiao Ma, Enlight Media, and Bona Film Group have all had positive impacts on the domestic film industry.

They want to go public, and Zhang Chen will only give them a helping hand.

Zhang Chen has mixed feelings about Huayi Brothers.

There are many things I dislike about the Wang brothers; they are the ones who started this bad trend of using celebrities for public relations.

There's also the trend of de-cinematizing.

It's hard to imagine that a film and media company would propose to move away from film and television production after going public. What were they thinking?

But they have indeed made contributions to Chinese cinema.

Zhang Chen himself is a cheater, so this doesn't count.

In the original timeline, the movies produced by Huayi Brothers were all pretty good.

The stars under his wing have all achieved remarkable success:
Zhou Xun won the Hong Kong Film Awards and the Golden Horse Awards for Best Actress for her role in "Perhaps Love";
Li Binbin won the Golden Horse Award for Best Actress for her role in "The Message";

Zhang Hanyu won the Hundred Flowers Award for Best Actor for his role in "Assembly".
Huang Xiaoming won the Golden Rooster and Huabiao Awards for Best Actor for his role in "American Dreams in China";
These are all achievements made during his time at Huayi Brothers. Even Fan Xiaopang from the original timeline got a Best Supporting Actress award at the Hundred Flowers Awards.

Huayi Brothers certainly has some tricks up its sleeve in the original timeline; it deserves to be called the 'leading brother'.

They advocate the "one star, one director" system, and Little Cannon's movies are indeed quite good.

"A World Without Thieves," "Back to 1942," and "Assembly" are all excellent films. Although Feng Xiaogang often plays villains in Chinese films, he was indeed a pillar of Chinese cinema in that era.

Among the three major directors in China, Feng Xiaogang and Zhang Ke are far superior to the other mediocre director and have made genuine contributions to Chinese cinema.

Of course, his foul mouth has indeed caused a lot of controversy, and sometimes it's really his own fault.

(End of this chapter)