Huayu: Starting from joining the mainstream entertainment industry in 96

Chapter 351, Page 349: Finalized

After reaching a preliminary cooperation agreement with Jackie Chan, the financing process was immediately initiated.

A week later.

In the conference room on the top floor of the Jingxin Building.

Representatives from the core investors of the "Night at the Museum" project sat on either side of the large mahogany conference table.

As the project initiator and leader, Wang Sheng naturally occupied the main position, surrounded by Sheng Ying Media's CFO, deputy CFO, and legal team.

Opposite him was Han Sanping, vice chairman of China Film Group, representing the strong support of state capital.

On either side are the directors or authorized representatives of eight major film studios: Xi'an Film Studio, Shanghai Film Studio, Changchun Film Studio, Pearl River Film Studio, Suzhou Film Studio, Tianjin Film Studio, Emei Film Studio, and Hunan Film Studio, as well as the heads of Poly Culture and Beijing Forbidden City Film Industry.

Jackie Chan and Willie Chan are also prominently listed, as key partners in the project and major beneficiaries of future profits.

The atmosphere in the meeting room was both solemn and warm.

Witnessed by multiple media outlets, Wang Sheng and representatives from all parties solemnly signed multiple copies of the "Letter of Intent for Cooperation on the Film <Night at the Museum> Project" and the "Joint Investment Agreement".

This letter of intent clarifies several core terms:

Investment Structure and Share: The total investment budget for the project is tentatively set at 2.26 million yuan, with the first phase allocating 2.26 million yuan to film production. The specific breakdown is as follows:

Shengying Media invested 5000 million yuan.

China Film Group invested 5000 million yuan.

Eight major film studios—Xi'an Film Studio, Shanghai Film Studio, Changchun Film Studio, Pearl River Film Studio, Suzhou Film Studio, Tianjin Film Studio, Emei Film Studio, and Hunan Film Studio—each contributed 500 million yuan, totaling 4000 million yuan.

The remaining 23 film studios in the film studio alliance invested between 1 million and 3 million yuan, depending on their own strength, totaling 36 million yuan.

Poly Culture invested 2000 million yuan (investment brought in by Han Sanping).

The Beijing Forbidden City Film Industry invested 1000 million yuan (reflecting the strategic support from Beijing's cultural authorities).

Jackie Chan's cooperation model: Jackie Chan forgoes a fixed high salary, and his compensation will be converted into 10% of the film's global box office net revenue (after deducting distribution, marketing and other costs), as well as 10% of all subsequent derivative revenue of the project (including but not limited to television broadcasting, audio-visual products, licensed merchandise, theme park revenue, etc.). This move greatly reduces the cash flow pressure in the early stages of the project and demonstrates his determination to form a deep partnership.

Distribution of Remaining Profits: After paying Dragon's 10% share of the profits, the remaining 90% of the profits will be distributed strictly according to the investment ratio of each investor among all investors (including Sheng Ying, China Film Group, various film studios, Poly, and Forbidden City Film Group).

As the leading party, Shengying Media not only receives dividends according to its investment ratio, but also enjoys project leadership and corresponding project management fees.

Related to "Jackie Chan Happy Park": The agreement clarifies that the core set of the "Chinese Civilization Museum" built in the movie will be permanently preserved after filming, serving as the foundation for the first phase of the core project of "Jackie Chan Happy Park".

The investment, construction and operation of the park will be handled by a dedicated project company to be established later. Jackie Chan's side has promised to introduce international capital and jointly develop the park with Sheng Ying, China Film Group and others.

……

With the funding situation largely settled, the selection of the physical location for the project—"Jackie Chan Happy Park," the main filming location for "Night at the Museum"—became an urgent matter.

As instructed by relevant departments, this project, which combines short-term filming with long-term cultural and tourism value, must be located in Beijing.

With the Olympic bid in its final sprint, building the image of a "cultural center" and an "international metropolis" is of paramount importance.

A film and television cultural tourism complex with the participation of top international stars, huge investment, high technology content, and profound cultural heritage is undoubtedly a dazzling cultural calling card. It can effectively enhance Beijing's international image and cultural soft power, and also have a positive side effect on the bid for the Olympics.

After multiple rounds of communication with relevant departments in Beijing, such as planning, culture, and land, attention was focused on Huairou County.

At this time, Huairou had not yet been upgraded from a county to a district, but its locational advantages and basic conditions for developing the film and television industry had already begun to emerge.

In terms of location and transportation: Huairou is located in the northeast of Beijing, about 50 kilometers from the city center, which is a moderate distance compared to other more distant districts and counties.

The Beijing-Chengde Expressway is under construction and will greatly shorten the travel time to and from the city center once completed.

The area is mountainous with abundant waterways and distinct natural landscapes, which not only meet the diverse outdoor shooting needs of film and television productions but also comply with the ecological environment requirements of theme parks.

In terms of industrial foundation: Feiteng Film and Television Base has been established and operating here for some time, and has initially formed a certain industrial agglomeration effect, with a certain reserve of professional talents and supporting service capabilities.

Choosing Huairou allows you to leverage existing infrastructure to quickly achieve economies of scale and reduce initial construction costs.

Regarding land costs and policy support: In 2001, land prices in Huairou were relatively lower than in other suburban districts and counties.

Based on the market conditions at the time, the cost of acquiring non-core agricultural land or unused land in Huairou suitable for large-scale projects was approximately 5 to 8 yuan per mu (including compensation).

For the first phase of "Jackie Chan Happy Park" (including the film shooting base), which is planned to cover an area of ​​about 1000 mu (referring to the initial scale of medium and large-sized theme parks at home and abroad), the land cost alone will require an investment of about 5000 million to 8000 million yuan.

Driven by the strategic consideration of building a "China Film Capital," the Beijing municipal government promised to provide significant policy incentives and support in areas such as land transfer fees, taxes, and infrastructure development.

In terms of future planning, the city intends to focus on developing Huairou as the core area for Beijing's film and television cultural industry, which aligns with the city's development strategy following the successful bid for the Olympics. The establishment of "Jackie Chan Happy Park" here is timely and will rapidly elevate Huairou's and even Beijing's position in the national film and television industry landscape.

……

After intensive investigation and negotiations.

In late May, witnessed by key officials from relevant departments in Beijing, several parties formally signed a framework agreement with the Huairou County government for the cooperative development of the "Jackie Chan Happy Park" and the filming location for "Night at the Museum".

The agreement specifies that the project site will be located on a high-quality plot of land north of Huairou County, relying on the natural landscape, with a preliminary planned area of ​​1000 mu.

The equity structure of the "Jackie Chan Happy Park" project company became the core of the negotiations.

Ultimately, based on the funding and resource contributions from all parties, the following consensus was reached:
Analysis of Total Investment and Equity Allocation of the "Jackie Chan Happy Park" Project:

Total share capital setting: The initial registered capital of the project company is set at 2.16 million yuan.

这一定价综合考量了土地成本（怀揉地价约每亩5-8万，1000亩约5000-8000万）、核心实景搭建成本（《博物馆》场景）、基础设施及前期研发费用。各方出资均以此为基础计算股权比例。

Jackie Chan's side (foreign capital + Hong Kong capital, total investment of HK$1 million):

Investment amount: Jackie Chan successfully introduced HK$5000 million in investment through his overseas and Hong Kong Island connections, and also contributed HK$5000 million of his own money, totaling HK$1 million, equivalent to RMB1.06 million.

Equity stake: 1.06 million / 2.16 million ≈ 49.07%.

As the core of the project's international brand and the main investor, Jackie Chan holds a single largest shareholder position of slightly less than 50%. This not only reflects his key role but also complies with the potential requirement in relevant policies for Sino-foreign joint ventures that the Chinese party must have control or dominance (although not a strict legal red line, it is an important commercial and political consideration), thus avoiding the sensitive issue of absolute foreign control.

Shengying Media (private capital):

Investment amount: RMB 3000 million.

Equity stake: 3000 million / 2.16 million ≈ 13.89%.

As the creative initiator and future main operator of the project, Shengying's investment ensures its significant say in the park's affairs, commensurate with its dominant position in the film project.

China Film Group (State-owned):

Investment amount: RMB 3000 million.

Equity stake: 3000 million / 2.16 million ≈ 13.89%.

China Film Group's investment represents the endorsement and support of state capital for the project. It plays an irreplaceable role in policy communication and resource coordination. Its equity is equal to that of Shengying Film Group, reflecting the equal cooperation and joint leadership of state-owned and private capital in this project.

Night at the Museum film project (project funding):
Funding amount: 2000 million yuan will be allocated from the film's 2.26 million yuan production budget, specifically for the physical construction of core scenes such as the "Chinese Civilization Museum" within the park.

These scenes will become assets of the theme park after the movie is filmed.

Equity stake: 2000 million / 2.16 million ≈ 9.26%.

This portion of the equity is held on behalf of the film project company, and future profits will be included in the film's total revenue pool for distribution.

Government offices in the capital (local government, with resources and capital as equity investment):
Form of investment: The capital city government (through its designated investment platform or state-owned asset company) did not invest entirely in cash.

Its investment includes:
Land transfer fee discount: a commitment to transfer land at a price far below the market valuation, with the difference being converted into capital investment.

Cash Support: Provide partial cash support for the construction of supporting infrastructure such as "seven connections and one leveling" around the project.

Policy support: Providing tax breaks and green channels for approvals, etc., although these do not directly translate into shares, constitute an important implicit investment.

Equity stake: Based on its various investments, its equity stake was determined to be 13.89% through negotiation.

Local governments contributing resources as equity is a common practice in the development of large-scale projects.

Its 13.89% stake makes it an important balancing force, similar to the shareholdings of Shengying and China Film Group. This ensures the government's say in project decision-making, guarantees that the project complies with urban development plans and public interests, and facilitates the coordination of resources from all parties.

中方合计股权（盛影13.89%+中影13.89%+电影项目9.26%+京城衙门13.89%）= 50.93%，实现了中方资本的绝对控股，符合战略要求。

Final Shareholding Structure Summary:
Jackie Chan and his affiliates: 49.07%
Shengying Media: 13.89%
China Film Group: 13.89%
Government offices in the capital (designated entity): 13.89%
The "Night at the Museum" film project (representing all film investors): 9.26%
Total: 100%
This is only the first phase of development funding for the project; further funding will be provided later. The immediate priority is to get the project off the ground.

……

At the signing ceremony, Wang Sheng, Han Sanping, Cheng Long, and the leaders of Huairou County shook hands tightly.

The media reporters present all used their cameras to record this moment.

(End of this chapter)