1978: Female educated youth, don’t want an illiterate husband

The door closed gently behind him, leaving a space filled with calculation, struggle, and immense pressure for the pale-faced Japanese executive who was slumped on the sofa.

Fu Qi looked at Sato Taro's distraught appearance and clicked his tongue in amazement.

Teacher Cheng's tactic of feigning indifference and using someone else's strength against them was incredibly skillful and brilliant.

A $30 million revenue share is practically going to rip off Daiwa Studios!

But he also knew that given the quality and current popularity of "Shaolin Temple," coupled with Cheng Xuemin's precise exploitation of the other party's weaknesses, this seemingly impossible exorbitant price might actually be forced out.

The afternoon sun in Hong Kong shone through the window, illuminating a corner of the room, but it did nothing to dispel the silent tension that permeated the negotiating table.

A game concerning huge profits and the future market landscape has only just entered its most intense phase.

Cheng Xuemin met Brian, who looked travel-worn, in another, more spacious meeting room at the hotel.

Unlike Sato's cautious and gloomy demeanor, Brian immediately gave Cheng Xuemin an exaggerated American hug upon meeting him, his voice loud and full of enthusiasm:

"Cheng! My dear friend! God, you are a genius! I've seen the trailer for 'Shaolin Temple,' and it's even better than 'Tai Chi'!"
Those fight scenes, my God, how did you film them? This is definitely the next Tai Chi! No, it's even better!

Cheng Xuemin greeted him with a smile and led him to a seat.

Brian couldn't wait to get to the point: "Cheng, I know the rules. This time, for the global rights, you name your price! I hope we can continue the good cooperation we had during the 'Tai Chi' era."

I can handle the Japanese market and the Colombian market too, I guarantee it will be even smoother than last time!

Cheng Xuemin did not offer a price directly. Instead, he leisurely sipped his tea and smiled, "Mr. Brian, thank you for your kindness. However, this situation is a bit special!"

"Oh? Is there a problem?" Brian's smile faded, and he looked slightly nervous.

“Mr. Sato from Daiwa Pictures is in the next room considering my offer,” Cheng Xuemin said casually. “They also seem very interested in the global rights.”

Brian's face changed instantly, and he stood up abruptly: "Sato? That idiot! Cheng, you absolutely cannot sell the rights to him! They have no idea how to market this kind of film on the international market!"

"Tai Chi would never have achieved such success in Japan if it weren't for Colombian involvement later on! They would have only ruined Shaolin Temple!"

Cheng Xuemin raised his hand to signal him to calm down: "Mr. Brian, don't get agitated. In business, the highest bidder wins, but we also need to consider the terms of the cooperation."

"My offer is $30 million, with global box office revenue sharing, the percentage of which is negotiable. Mr. Sato is hesitating. If you are interested, we can discuss this based on these terms."

“Thirty million? Revenue sharing?” Brian gasped, pacing around the room. “Cheng, this price… is too high! Revenue sharing is too risky! Do you know how high the distribution costs are in North America?”

"Risk and reward go hand in hand, Mr. Brian," Cheng Xuemin said calmly.

"You know how much 'Tai Chi' has made you. The potential of 'Shaolin Temple' is only greater. If you feel you can't afford the risk, then I can only... give priority to Mr. Sato, who seems to be more sincere."

Cheng Xuemin deliberately emphasized the word "sincerity".

Brian stopped and stared at Cheng Xuemin, his eyes darting around as he rapidly calculated in his mind.

The $30 million revenue-sharing threshold means that the box office needs to reach an extremely high number to break even.

But Cheng Xuemin is right, the quality and popularity of "Shaolin Temple" are obvious to the naked eye.

More importantly, if Daiwa Studios were to acquire the global rights, leveraging its strength in the domestic market, it could potentially recoup most of its costs in the Asian market, thereby squeezing profit margins in the European and American markets, which is something he absolutely cannot accept.

He still vividly remembers the thrill of teaming up with Columbia Pictures to rip off Daiwa Studios last time.

“Cheng…” Brian took a deep breath, as if he had made a huge decision, “I can discuss the revenue-sharing model!”

"But a minimum guarantee of 30 million is too high! We must set the tiered revenue sharing ratio based on a more reasonable box office expectation!"
Furthermore, the distribution in the Japanese market must be led by me, or jointly by us; it absolutely cannot be controlled by Yamato Pictures alone!

Cheng Xuemin knew that Brian had already given in.

The core of the negotiations shifted from whether to accept profit sharing to how to share it, which was a major victory.

Cheng Xuemin smiled slightly and said, "Of course we can discuss the details. I can give you priority in negotiations."

"If we can reach a preliminary agreement on the revenue sharing ratio and arrangements for the Japanese market before 8 p.m. tonight, then the global rights are yours."

Otherwise... I'll have to see how sincere Mr. Sato is."

Just as Cheng Xuemin and Brian were arguing heatedly about details such as the revenue sharing ratio and regional distribution rights, the door to the suite was gently pushed open.

Fu Qi walked in and whispered a few words in Cheng Xuemin's ear.

A hint of expectation flashed in Cheng Xuemin's eyes. He raised his hand to interrupt Brian's impassioned statement and nodded to Fu Qi.

Then he looked at Brian, giving him a slightly apologetic expression:

“Mr. Brian, I’m very sorry, I need to interrupt for a moment. There seems to be new progress on Mr. Sato’s end, and he needs to speak with me urgently. You see…”

Brian's heart sank.

He certainly understood what the new developments meant; that persistent Sato was indeed preparing to succumb to immense pressure!

He absolutely cannot let this opportunity slip away!

“Cheng!” Brian said hurriedly, his words coming out like gunfire, “Let’s go with the second plan you just mentioned! You’ll get 35% of the box office revenue in North America and Europe, excluding Japan, after deducting the theaters’ share!”
In the Japanese market, we co-distribute with Columbia Pictures and collaborate with Daiwa Studios, but we must maintain control!

A minimum guarantee of twenty million US dollars, payable upon signing the contract! This is my absolute bottom line!

Although this offer is lower than Cheng Xuemin's initial fixed price of 30 million, with the addition of high profit sharing and guaranteed minimum, the total revenue may far exceed 30 million, and the risk is partially transferred to the issuer.

Seeing Brian's anxious expression, Cheng Xuemin knew that the time was almost right.

He hesitated for a full half minute; those thirty seconds felt like an eternity to Brian.

“Alright, Mr. Brian.” Cheng Xuemin finally extended his hand. “Considering the pleasant collaboration on Tai Chi and your unwavering confidence in Shaolin Temple, I agree to this framework in principle. The specific details will be finalized by Mr. Fu and your team before tonight.”

Brian breathed a long sigh of relief, gripping Cheng Xuemin's hand tightly, as if afraid he might change his mind: "That's great! Cheng! You won't regret this decision! I guarantee, 'Shaolin Temple' will be a global sensation!"

After seeing Brian off, who was satisfied and in a hurry to prepare the contract, they left.

Cheng Xuemin returned to the suite he had stayed in before.

Sato Taro remained seated there like a statue, his face ashen, but his eyes held a hint of desperate resolve.

Clearly, the call with headquarters was extremely difficult, but he had obviously obtained some kind of authorization.

"Cheng-san!" Sato Taro stood up, his voice hoarse and urgent. "Our headquarters... agrees to your terms. Thirty million US dollars, distributed globally. The specific percentage can be discussed further. Please give us this opportunity!"

Cheng Xuemin looked at Sato, his heart not stirred much. That's how business negotiations are; opportunities are fleeting.

He sighed, his tone carrying just the right amount of regret: "Mr. Sato, I'm sorry. Just now, I reached a preliminary agreement with Mr. Brian from the United States. I'm afraid we won't be able to cooperate this time."

Sato Taro was struck dumb, his body swayed, and he barely managed to stand up by holding onto the back of the sofa.

He opened his mouth, as if to say something, but in the end, he couldn't utter a single word. He could only mutter listlessly, "Is...that's how it is...or...it's too late..."

"However!" Cheng Xuemin changed the subject, "the distribution rights for the Japanese market have not yet been finalized."

"If your company is interested, we can discuss the copyright in Japan separately. Of course, the terms will be different from the global copyright terms."

This can be seen as giving Taro Sato a way out, and also as leaving the last piece of cake for Yamato Pictures.

After all, completely offending Japan's largest film company is not the best strategy. Moreover, having Yamato Pictures, which is familiar with the local market, handle the Japanese distribution might be more effective.

Sato Taro suddenly raised his head, a faint flame of hope rekindling in his eyes.

Although we missed out on the global market, securing the domestic market means we didn't leave empty-handed, and we can at least give back something to show for it. "Hey! Thank you, Mr. Cheng! Please give us this opportunity! The terms are negotiable!"

The pace of the subsequent negotiations was entirely in Cheng Xuemin's hands.

Ultimately, Daiwa Studios secured the exclusive Japanese distribution rights for "Shaolin Temple" with a minimum guarantee of $8 million and a 35% share of the Japanese box office revenue.

This price is far higher than the offer Brian made for the Japanese market, but lower than the price they paid to acquire Tai Chi from Brian.

When Taro Sato signed his name on the hastily drafted letter of intent, his hand was still trembling slightly.

He knew that this contract cost Yamato Pictures dearly, but at least it preserved its core domestic market and prevented it from being completely marginalized.

After seeing off the exhausted Sato, Cheng Xuemin stood in front of the floor-to-ceiling window, overlooking Victoria Harbour as the city lights began to twinkle.

Fu Qi and Huang Jianzhong walked in, their faces filled with barely suppressed excitement.

“Xuemin, thirty million… and it’s a split of the profits! This… this is simply unimaginable!” Huang Jianzhong’s voice trembled with excitement.

Fu Qi was calmer, but his eyes were full of admiration: "Teacher Cheng, your negotiation skills are truly... masterful."

First, they used Sato to pressure Brian, then used Brian to pressure Sato, and finally they even managed to sell a separate product in the Japanese market for a high price... It was a brilliant scheme, one thing leading to another!

Cheng Xuemin turned around, his face showing little joy, only a calm acceptance: "It was all forced upon us. Our family is waiting for us to cook rice, we don't have time to take our time."

Only by delivering results they can't refuse can we shut them up.

He walked back to the table, picked up the still-wet ink of the cooperation framework agreement with Brian, and flicked it lightly:

"Notify the family. The initial estimate is that the global revenue sharing of 'Shaolin Temple,' plus the guaranteed minimum from the Japanese market, will bring in nearly thirty million US dollars in the first batch. Let Director Wang, Old Wu, and Liao rest assured."

……

In a luxury suite on another floor of the Peninsula Hotel, the faint scent of air freshener couldn't mask the subtle smell of disinfectant.

The heavy curtains were drawn, shutting out the night view of Victoria Harbour, leaving only an amber wall lamp casting a dim yellow glow on the expensive cherry blossom patterned wallpaper.

Sato Taro bowed his head and presented a copy of the contract, still damp with ink and warm from the photocopier, to the woman sitting on the sofa.

The sweat on his forehead was still damp, and his breathing was still rapid, carrying the aftermath of his defeat at the negotiating table.

Naoko Tsuchino did not go to answer immediately.

She was wearing a well-tailored dark gray velvet suit, with a slender cigarette between her fingers, the ash of which had accumulated to a considerable length, yet she seemed oblivious to it.

Her gaze swept over Sato Taro's slightly trembling hand, finally settling on the few thin pages of paper, and a faint, almost icy smile curved her lips.

"Eight million US dollars... a minimum guarantee, plus a 35% commission."

Her voice was deep, with a metallic quality, and exceptionally clear in the quiet room. "Executive Director Sato, Yamato Pictures is now doing business with an astonishingly generous spirit."

Sato Taro lowered his head even further, his collar soaked with cold sweat: "Damn it! I'm incompetent! I've caused the company huge losses!"

"However... Cheng Xuemin's attitude is tough, and with that American Brian watching us like a hawk, I... I really had no choice but to do this in order to protect the Japanese domestic market..."

"Forced to do so?" Tsuchino Naoko chuckled softly, finally reaching out to take the contract, her fingertips tracing the edge of the paper, making a slight rustling sound.

She quickly scanned the key terms, her eyes sharp as knives, each line of text feeling like it was cutting into Taro Sato's heart.

"I think you've been manipulated. They first raised the price, then broke it up. They knew the Japanese market was a must-win for them, so they just raised the price on the spot."

"Sato-kun, you've been working in the trading company for over twenty years, and yet you've been forced into this situation by a young filmmaker with such a simple either-or choice?"

She casually tossed the contract onto the coffee table in front of her, leaned back slightly against the sofa cushion, took a drag of her cigarette, and slowly exhaled the smoke.

"Movies are merely cultural consumer products, a minor art form. They entertain the masses and generate meager profits, nothing more. What truly determines a nation's strength is steel, machinery, and the core technologies of heavy industry!"

Her tone suddenly turned cold, carrying a condescending contempt: "A hot rolling mill production line is worth five hundred million US dollars. It is related to the lifeline of a country's basic industry. That is the battlefield we should be fighting for!"

Spending such a huge sum for the premiere rights of a mere film, haggling over a few percentage points of box office revenue… Executive Director Sato, when did your vision become so narrow?

Sato Taro's face turned pale, his lips moved, but he dared not refute.

He clearly remembered that last year in Yanjing, Miss Naoko personally presided over the negotiations, intending to exchange a discarded production line for huge political and commercial benefits, but Cheng Xuemin, who suddenly appeared out of nowhere, disrupted the process by leveraging his influence over the upper echelons.

Ultimately, the trading company not only failed to achieve its strategic goals, but also essentially gave away a new production line to the Chinese side for free.

That was a rare Waterloo in Ms. Nako's career, and she regarded it as a great disgrace.

Since then, anything related to Cheng Xuemin's name can easily trigger her most sensitive nerves.

"I know I was wrong!" Sato Taro bowed deeply. "The failure of this negotiation is entirely my fault! Please punish me, Miss Nako!"

Naoko Tsuchino waved her hand, signaling him to get up.

She stubbed out her cigarette and turned her gaze back to the darkness outside the window, hidden by the curtains, as if she could see through the thick velvet to her rival of the same age across the street, who was full of self-satisfaction.

"What's the point of punishing you? Cheng Sang is as cunning as a fox and adept at leveraging power. On the surface, he's competing with you for box office revenue, but he may have other motives behind the scenes."

She paused, her tone becoming unusually calm, "My trip to Hong Kong was completely secret. Are you sure the other side didn't notice my presence?"

Taro Sato quickly assured him, "Hey! Absolutely not! All contact was through legitimate business channels. The other party only knows that we are negotiating with Yamato Pictures."

"Miss Naoko, you're staying here under an alias; even the hotel's senior management doesn't know. Cheng Xuemin's attention is entirely focused on Brian and the copyright deal; he'd never suspect you've actually come to Hong Kong."

"That would be for the best." A cold glint flashed in Tsuchino Naoko's eyes. "Last time in Yanjing, he took advantage of the terrain and the people to catch us off guard."

"This time in Hong Kong, we have the perfect combination of timing and location. This is a free port where capital reigns supreme. For the film business, you can simply follow the contract; there's no need to create any further complications."

Eight million US dollars is a painful sum, but if it can stabilize the domestic market, it will be a satisfactory outcome.

She stood up, walked to the liquor cabinet, poured herself a small glass of whiskey, and the amber liquid swirled in the glass.

"The real battlefield is not in movie theaters."

She took a sip of wine, feeling the spicy liquid slide down her throat. "I've heard rumors that Cheng Xuemin is ambitious and not content with just selling films to earn foreign exchange."

Through his aunt Gu Qiuna in the United States, he is secretly working to establish his own theatrical distribution network there. This is the real threat.

Sato Taro was shocked: "Building a theater chain in the United States? This...this requires astronomical sums of money and deep political and business connections! How could a director from mainland China possibly do that..."

“That’s why he’s so eager to amass wealth!” Tsuchimiya Naoko interrupted him, saying with certainty:
"The more than 20 million US dollars from 'Tai Chi,' the 30 million US dollars from 'Shaolin Temple,' plus the guaranteed minimum from the Japanese market, add up to a huge sum. But this is far from enough. He will definitely have follow-up actions, which will require more and larger financial support."

She turned around and stared intently at Taro Sato: "We have been operating in North America, especially on the West Coast, for many years and have extensive connections."

You must immediately mobilize all resources to keep a close eye on Gu Qiuna's every move in the US. I need to know immediately which banks she's contacted, which investors she's met, and which cinema chains she's looking at for sale!

If necessary, some obstacles can be set up. Acquisition bidding, policy reviews, labor issues—there are plenty of methods. I want to make his North American theatrical dream difficult from the very beginning!

"Yes, sir! Understood!" Sato Taro perked up and immediately accepted the order.

This is the battlefield he is familiar with, where he secretly competes with capital and rules, rather than engaging in face-to-face verbal battles at the negotiating table.

……

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