Huayu: Starting from joining the mainstream entertainment industry in 96

Chapter 302: The Unyielding Figure of the Capital
In July, Beijing was sweltering, with heat waves swirling and distorting in the air rising from the asphalt roads, yet this did nothing to slow the rumble of the gears of change in China's film industry.

With the State Administration of Radio and Television officially approving the first batch of seven entities to obtain pilot qualifications for the distribution of domestic films, as well as the more crucial pilot qualifications for the establishment of inter-provincial cinema chains, a long-awaited channel revolution has finally entered the substantive implementation stage.

In the conference room of China Film Group, the inaugural meeting and first shareholders' meeting of "China Film Grand Cinema Line Co., Ltd." were officially held.

After much deliberation, the name "Shengshi" was finally chosen. It not only subtly echoes Wang Sheng's "Shengying Media" but also implies a bright expectation for the future of the industry. More importantly, the name has been recognized by all parties and appears grand yet tactful.

The equity structure of the new company is the result of a power struggle and balance of interests among multiple parties.

With a registered capital of 260 million yuan, China Film Group, as a representative of the state-owned enterprises, invested 110 million yuan, holding 31.875% of the shares and maintaining relative control, reflecting the dominant position of state capital in key reform areas.

Wang Sheng's Shengying Media invested a remarkable 100 million yuan in cash, acquiring a 31.25% stake and becoming the second-largest shareholder, thus forming a de facto "dual-core drive" with China Film Group.

Part of this huge sum will be specifically used for the construction, decoration, and equipment procurement of the first five "China Film Grand Cinemas" flagship stores in Beijing.

The remaining 36.875% of the shares were divided among local "local bullies".

This reflects both recognition of their influence and resource investment in their respective regions and a necessary exchange of interests to ensure that this emerging cinema chain can quickly take root in the most important box office cities in the country.

Beijing needs to use this opportunity to consolidate its position as the national cultural center; Shanghai Film Group, under the leadership of Zhu Yongde, while still ambitious, understands the importance of integrating into the national network; Guangdong Province, as the forefront of reform and opening up, has huge market potential, and the participation of its representative forces is crucial.

This equity arrangement, under the background of the state-owned enterprise reform in 2000 which emphasized "grasping the large and letting go of the small" and "entering and exiting," allowed state-owned capital to maintain a controlling stake while introducing highly dynamic private capital and strong local state-owned enterprises to form a mixed ownership system and jointly explore new market paths. It was a reasonable attempt that was in line with policy guidance.

Wang Sheng, as the second largest shareholder of Shengying Media, naturally obtained a board seat.

Although he was so young that he seemed like a junior in front of the other directors, no one dared to underestimate the power behind this seat—not only the 100 million yuan in real money, but also the powerful content production capabilities and market appeal of the "Shengying Group" that he had built.

……

Almost simultaneously with the establishment of "China Film Prosperity", Wang Sheng also reorganized and restructured his increasingly large industry.

He has not yet undertaken a complex group restructuring, as that would be too ambitious and could easily attract unnecessary attention.

Instead, they adopted a more flexible and covert approach—establishing a series of business-focused subsidiaries, with symbolic shares held by people they absolutely trusted, to ensure that control was watertight.

"Shengshi Cinema Management Co., Ltd." was established, with Li Tingting, who had followed Wang Sheng for many years and was known for her meticulousness and steadiness, as the legal representative.

This company takes over the daily operation and management, brand output, and personnel training of all cinemas under China Film Shengshi Cinema Line. It operates with a light asset model and has a clear source of profit.

Wang Sheng holds 98% of the shares, while Li Tingting and another early-joining operational backbone each hold 1%.

The establishment of "Shengshi Investment Co., Ltd." is even more significant. The legal representative is Chen Liang, Wang Sheng's childhood friend and earliest collaborator.

The shareholding structure is as follows: Wang Sheng holds 95% of the shares, his father Wang Jianguo and mother Li Sufeng each hold 2% of the shares, and Chen Liang holds a symbolic 1% of the shares.

This company became the core platform for Wang Sheng's personal financial investments.

The previous $200 million investment in Tencent (accounting for a 30% stake) was quickly transferred from Shengying Media's accounts to Shengshi Investment at a reasonable price. In the future, investments in cinema projects across the country (excluding scattered investments other than those injected into the China Film Shengshi flagship store) and even other non-core businesses will be conducted through this platform.

Chen Liang was nominally the legal representative, but the actual investment decisions and fund allocation were still firmly in Wang Sheng's hands, and Chen Liang was more of a scapegoat.

At the same time, Wang Sheng upgraded the responsibilities of the original management structure.

For example, the finance department of Shengying Media, headed by Chen Yu, has effectively become the financial management center for the entire "Shengying Group," responsible for financial audits, budget control, and fund allocation supervision of all affiliated companies, including newly established subsidiaries and shareholding companies. Although this is not a group in the legal sense, it has formed a highly efficient and covert control network centered on Wang Sheng and radiating to various business segments.

……

In mid-July, amidst widespread attention, the "China Film Grand Cinema" project broke ground or launched renovations of old cinemas in multiple locations across the country.

首期规划——京城5家、魔都5家、羊城3家、鹏城2家、津城2家、金陵2家、杭城2家、沈城2家、长安2家、鄂城2家……其余各电影厂属地（省城）至少一家，也就是22家，总计49家现代化多厅影院，这些影院预计在年底前陆续开业。

These 49 cinemas, like 49 boulders thrown into stagnant water, instantly stirred up a thousand waves.

Preliminary estimates indicate that the first phase of construction will leverage direct investment exceeding 500 million yuan!
This is not just about building cinemas; it also drives the development of upstream and downstream industries.

Film equipment factories across the country have ushered in a long-awaited spring, with orders pouring in like snowflakes. Projectors, sound equipment, screens, seats... even domestically produced 35mm film projectors, which had been difficult to sell at the time (there were no digital projectors available yet), have received a large number of orders.

Industries such as building decoration, air conditioning and ventilation, and low-voltage system integration also benefited.

This investment is undoubtedly a shot in the arm for traditional manufacturing industries that are currently undergoing painful transformation.

Such a large-scale and high-profile investment move naturally attracted attention from both inside and outside the industry, as well as from top management.

Some praised his courage and leadership in guiding the reform movement; others questioned the risks and stood by, waiting for failure.

But Wang Sheng's greatest wisdom lay in his extreme emphasis on relationships with local governments, especially those in Beijing.

When encountering specific issues such as policy coordination, land planning, and fire safety inspections during project implementation, Wang Sheng never resorts to underhanded tactics. Instead, he directly requests coordination and support from relevant authorities in Beijing through formal channels.

Shengying Media and its affiliated companies have clear accounts, pay taxes actively, and even proactively invite tax authorities to provide compliance guidance.

This attitude of "cooperation in the sunlight" earned the high trust of the authorities.

When professional personnel are needed, such as officials familiar with the approval process for large projects or cadres proficient in infrastructure management, Wang Sheng also uses organizational procedures to hire retired or corporate cadres on a short-term basis in the form of "secondment" or "expert consultants," providing them with market-based compensation. This not only solves the talent shortage but also strengthens the connection between the government and enterprises.

This close and healthy interaction has enabled Wang Sheng and his company to establish a deep foothold in Beijing, earning them the nickname "Beijing's Unbreakable Doll".

……

Aqiu~

Shenzhen, a thousand miles away.

Pony Ma, who was leading his team to develop the ticketing system, sneezed loudly. In his mind's eye, he felt someone chirping at him.

However, the order that Wang Sheng brought to Tencent was a huge business, with early-stage R&D and later-stage maintenance, which helped Tencent regain some of its revenue-generating capacity.

Mr. Wang is so kind.

Pony Ma felt like he was making a killing after securing Wang Sheng's investment.

(End of this chapter)