Entertainment mogul: Starting his business with the internet

Chapter 18 Southern Cinema Circuit
Song Ci carefully examined the woman before him. She wore a dark gray fitted suit and had shoulder-length short hair. Just like in his past life, Liu Rong gave him an extremely shrewd and capable feeling. He stood up and shook hands with Liu Rong. "Please sit down. I just arrived a little while ago. Would you like something to drink, Ms. Liu?"

Liu Rong also observed Song Ci. Putting aside his handsome face, he was much younger than she had imagined, but he was poised and mature in his dealings with others.

"Latte, thanks."

Song Ci waved to the waiter and said, "Two lattes."

A moment later, the waiter brought the coffee over. "Two lattes, please enjoy."

Stirring her coffee with a small spoon, Liu Rong, who had already contacted Song several times, skipped the formalities and asked directly, "President Song, I'm curious, are you really going to start a cinema chain company and ask me to be in charge?"

Song Ci held the coffee cup by the handle, took a small sip of latte, savored the rich bitterness, and slowly said, "I thought Ms. Liu would be curious about why I found you, but it seems I was overthinking it."

The questions you asked show that you are very confident in your work abilities, which makes me even more certain of my choice.

Song Ci did not answer Liu Rong. After thinking for a moment, she asked in return, "Ms. Liu, how do you think the Chinese film market and cinemas will develop in the future?"

Knowing that this was Song Ci's test for his future partner, Liu Rong replied without hesitation: "In the early 90s and for many years before that, the box office of films in mainland China remained at around 30 billion."

However, with the popularization of VCDs and DVDs, cinemas declined for a time, with box office revenue falling below 10 billion yuan for many years. The 98 film "Titanic" marked the last glorious moment for auditorium-style single-screen cinemas. Since then, most cinemas have been converted into shopping malls, performance halls, etc.

After the establishment of the cinema chain system, a distribution and screening mechanism was implemented, which relied on several cinemas and used capital and film supply as the link. It was formed by a distribution entity and several cinemas, and implemented a unified brand, unified scheduling, unified operation and unified management, which opened up the market at the sales terminal.

The booming development of film is due to the reform of the cinema system. Influenced by the brilliant achievements of many blockbusters led by directors such as Zhang Yimou and Chen Kaige, people have discovered that commercial films can also be very profitable.

As a result, a lot of hot money flowed into the film industry, and more and more Hong Kong filmmakers went north, which promoted the further development of the mainland film market.

It is foreseeable that China's film market will experience unprecedented prosperity in the future, and this rapid development will, in turn, promote the continuous expansion of cinema chains. The film market and cinema chains are interdependent, progressing and prospering together.

Listening to Liu Rong's eloquent speech, Song Ci nodded in satisfaction. Indeed, professional matters should be handled by professionals. With a smile, she praised, "It seems that Ms. Liu has done her homework. Your answer is impeccable."

Liu Rong had done thorough preparation to give this answer, and her response accurately predicted the trends in the domestic film market and cinema development over the next fifteen years.

In her previous life, Liu Rong was able to become the chairman of Dadi Cinemas and develop it into one of the top three cinema chains in the country. Clearly, she had an extremely accurate vision for development and outstanding business capabilities, which was exactly the kind of partner Song Ci was looking for.

Having heard the answer that satisfied him, Song Ci got straight to the point: "Sister Liu, I plan to invest 100 million yuan over three years to establish Tengda Southern Cinema Line Company. I would like to invite you to become the head of the cinema line company and own 5% of the company's stock options, with full authority over the establishment of the cinema line company and the acquisition of cinemas. What do you think?"

Ignoring the change in address, I was shocked by the generous terms offered by Song Ci. Although it was an option, 5% of 1 million was 500 million.

Liu Rong was stunned for a long time before she came to her senses and said incredulously, "Invest 1 million and give me 5% stock options!"

In 2004, 100 million yuan in cash was considered a considerable sum; few private companies or individuals, aside from state-owned enterprises, could come up with that amount. "Yes, this 100 million is for your acquisition of the cinema chain. Of course, I'll inject the funds over three years, depending on the progress of the acquisition, and the 5% stock option is a token of my sincerity," Song Ci said confidently. He believed Liu Rong couldn't refuse such terms. Once he gradually sold his shares in the stock market at the end of the year, he would have the funds to acquire the cinema chain.

Taking a deep breath and calming down, Liu Rong smiled brightly: "Thank you for your kind words, President Song. I look forward to your guidance in my future work."

"The establishment of Southern Cinema Line will require a lot of effort from you, Sister Liu. If you encounter any difficulties in the acquisition of cinema lines, you can communicate with me."

Liu Rong assured Song Ci, "Don't worry, Mr. Song. I'll return to Guangdong Province tomorrow, hand over my current work, and then resign. I'll get the company up and running by the end of the month at the latest. However..."

Liu Rong looked troubled, as if he had something difficult to say.

Song Ci encouraged her, "From now on, we'll be working together. Sister Liu, feel free to speak your mind without any reservations."

“Mr. Song, I’d like to register the company in Guangdong Province. I’ve worked in the southern region for many years, and all my connections and resources are there. In the south, many state-owned cinemas are being sold off, ranging in size from 50 to 300 million yuan. Since you can guarantee that the company has sufficient funds, I want to acquire these state-owned cinemas as soon as possible. Only by registering the company there can I get the cinema chain up and running quickly.”

Liu Rong joined Nanhai Holdings in 2002. Nanhai Holdings is a state-owned enterprise established by Guangdong Province with state-owned assets investment. It was the holding company of Dadi Cinemas in her previous life. Thinking about it this way, there is a reason why Liu Rong was able to become the chairman of Dadi Cinemas in her previous life.

Upon hearing this, Song Ci understood immediately. Liu Rong was concerned that as the chairman, he resided in the capital, and if the company were located in Guangdong Province, it would be inconvenient for him to manage the company.

However, Song Ci said nonchalantly, "It doesn't matter to me where the company is registered."

The reason I named the company Southern Cinema Line is because I value your network of contacts in the southern coastal region. Registering the company in Guangdong Province will make your work more convenient, so let's register it there. However, I want to make it clear beforehand that I will have someone strictly oversee the financial audit.

"Thank you for your understanding, Mr. Song. Financial auditing is only a matter of course." Liu Rong thought to herself, it's really rare to encounter such a wealthy and reasonable boss.

"But I have a request?"

"You mean President Song?" Liu Rong became a little nervous upon hearing this.

Song Ci slowly said, "You don't need to worry about the company's funds. By 2008, you must develop Southern Cinema Line into one of the top five cinema chains in the country!"

During the 2008 global financial crisis, countless real estate properties were sold off. As long as Liu Rong doesn't slow down the pace in the next few years and seizes the opportunities, he will be able to develop Tengda Southern Cinema Line into the largest cinema line in the country.

Liu Rong responded firmly to Song Ci, “President Song, rest assured, as long as the company has sufficient funds, if Southern Cinema Line fails to meet your requirements by 2008, I will voluntarily give up my stock options.”

With the addition of a key figure, and the establishment of the cinema chain company, Tengda Culture's layout in the entertainment industry will be basically complete. Song Ci was in high spirits, "Welcome Sister Liu to the Tengda family!"

(End of this chapter)