Huayu: Starting from joining the mainstream entertainment industry in 96

Chapter 457, Section 455: Planning Ahead

As the year drew to a close in the last week of 2002, the bitter cold of Beijing did nothing to dampen the raging fire that had been ignited in the film market by "Night at the Museum."

Media headlines, street corners, online forums—almost every public space was filled with discussions, praise, and exclamations related to this film.

The $1.32 million box office gross in its opening week worldwide is like a shining monument, not only establishing "Night at the Museum" as a phenomenal blockbuster of the year, but also propelling Wang Sheng and his Shengying Media to an unprecedented peak of power in the Chinese film industry.

Compared to the hustle and bustle of the outside world, the Shengying Media headquarters, located on the top floor of the Jingxin Building, presents an unusual calm and orderly atmosphere.

Outside the huge floor-to-ceiling windows, the gray winter sky and city skyline stretched out before them. Inside, Wang Sheng was presiding over the company's most important strategic meeting of the year.

In the spacious conference room sat the core management team of Shengying Media and its affiliated company, Enlight Media, including Chen Yu, Pang Guowei, Guo Liang, Su Yang, Chen Liang, Li Tingting, Cai Yinong, Zhao Jinsong (who joined via an overseas call), and heads of various departments and business segments.

Although the atmosphere was invigorated by the recent brilliant achievements, it was more of a focused and cautious one influenced by Wang Sheng's aura.

Wang Sheng did not spend too much time basking in the joy of the success of "Night at the Museum".

After listening to the routine operational data report and market analysis, he directly steered the conversation toward the future, toward 2003, a year that seemed bright but in his eyes harbored uncertainties.

"The success of 'Night at the Museum' is the culmination of the hard work of all our colleagues over the past few years, proving that the path we have chosen is the right one."

Wang Sheng's voice was calm, without much excitement, as if he were stating a fact unrelated to himself: "But this is only a stage victory. The market is changing, the environment is changing, and we cannot be blinded by temporary success. We must prepare for the next stage, and even for the challenges that may arise."

He first announced adjustments to next year's film production plans.

"Based on the assessment of market size and evolving audience tastes,"

Wang Sheng's gaze swept over the assembled executives. "Next year, Shengying Media will implement a strategy of 'reducing quantity and improving quality, focusing on high-quality productions' in its domestic theatrical film projects."

The projection screen behind him displayed a preliminary list of plans: "In 2003, Shengying will take the lead in managing domestic theatrical film projects, tentatively ten."

This number surprised some of the executives present.

Given Sheng Ying's current meteoric rise and strong production capabilities, releasing fifteen to twenty films a year would be normal; ten seems too conservative and restrained.

Wang Sheng didn't give them much time to question, and continued to explain his reasoning: "The reduction in quantity does not mean a reduction in investment. On the contrary, we will concentrate our resources on these ten projects more effectively."

Each script must be rigorously reviewed from the script development stage, ensuring it is a 'high-quality' work with a clear market positioning, excellent content quality, and potential positive word-of-mouth.

We need to move beyond the initial stage of simply accumulating market share through sheer volume, and shift to a deeper stage where top-tier content leads the market and defines the brand.

He explained in detail: "This means that the development cycle of each project can be longer, the production budget can be more abundant, and the publicity and distribution resources can be more allocated."

What we need are not ten products that are above average, but ten representative works that can make an impact in their respective genres, compete for awards, and expand into overseas markets.

For example, the main series of director Tsui Hark's *Zu: Warriors from the Magic Mountain* could be included, but the script must be fully mature; if *Brotherhood of Blades* continues to receive positive market feedback, a series could be considered, but the sequel script must surpass the original; realistic themes and comedies also need strong works that can carry on the reputation of *The Pursuit of Happyness* and *Happy Family*.

This "refined" rhetoric is logically clear, aligns with the company's long-term brand-building interests, and caters to some creative staff's pursuit of polished masterpieces. While it may seem like a somewhat cautious approach, it's not entirely unacceptable. Wang Sheng then discussed more practical financial strategies.

"Secondly, in order to prepare for the company's planned A-share listing next year and to meet the funding needs that may arise from the expansion of international business," Wang Sheng's tone became more pragmatic, "the finance department should start now to focus on optimizing the company's cash flow and increasing cash reserves on the books."

He looked at Chen Yu, the director of the finance department: "Director Chen, I need you to take the lead in reviewing next year's budget. Non-core and non-urgent investments can be postponed, and the payment cycle for some projects can be extended through negotiation. The goal is to increase the company's operating cash flow reserves by at least 50% by the middle of next year, while ensuring normal operations and the progress of key projects."

This requirement is more specific and also subtly implies a "stockpiling for winter" mentality.

An executive in charge of project development immediately raised a question: "Mr. Wang, with the market so hot right now, should we press our advantage and increase investment? Would tightening cash flow mean missing out on some market opportunities?"

Wang Sheng seemed to have anticipated this, responding calmly: "Opportunities will always exist, but risks also need to be managed. Financial soundness before listing is crucial, as it relates to valuation and investor confidence."

Moreover, international business is our next growth engine, requiring substantial financial support. Collaborations with Disney and New Line Cinema may involve joint investment and cross-border fund transfers; ample cash reserves will give us more leverage in negotiations and allow us to seize higher-quality opportunities.

He paused, then concluded in an unquestionable tone: "Looking at the long term, this temporary contraction is for a more powerful attack in the future. All decisions must be subordinate to the company's overall strategy and the overall listing situation."

He successfully silenced most potential opposition by waving the banners of "going public" and "international business".

In the face of capital and globalization, short-term market share expansion seems less important.

Finally, Wang Sheng announced his work priorities for next year.

“Next year, I will dedicate most of my time and energy to Hollywood,” Wang Sheng said, causing another subtle stir. “The main focus will be on pushing forward several key international cooperation projects.”

He specifically listed: "One is the international version of 'The Pursuit of Happyness,' a collaboration with Disney and Shanghai Film Group. This project is of great significance for exploring co-production models and learning from Hollywood's mature industrial experience. I must personally follow up on it to ensure that our core interests and cultural expression are not compromised."

"Secondly, we will explore the next stage of in-depth cooperation with New Line Cinema. The success of 'Shaolin Soccer' and 'Night at the Museum' has established mutual trust. We need to strike while the iron is hot, plan more ambitious projects, and consolidate our distribution channels and brand influence in North America and the global market."

"Domestic matters," Wang Sheng said, looking at Li Tingting and the vice presidents, "will be led by President Li, with collective decisions made by the management team. Any major issues should be reported to me immediately. My focus must be on international business, as this is crucial to the company's future market value and global competitiveness."

This explanation is flawless.

The boss personally goes to explore the most important overseas markets, adding a glamorous "international" weight to the listing. Who can object?
Moreover, with Han Sanping, a legendary figure, overseeing the domestic operations, and a mature management team in place, it seems unlikely that anything will go wrong.

Only Wang Sheng himself knows that shifting his focus to Hollywood is partly to advance those crucial international collaborations, and partly to provide the most reasonable explanation for his "coincidental" absence from the core decision-making circle in China at some point next year when domestic business may be forced to slow down due to force majeure.

He cannot show any "precognition" about the domestic market; he can only subtly guide the company through strategic adjustments and shifts in his personal work focus to help it weather potential storms as smoothly as possible.

At the end of the meeting, the participants left with mixed feelings.

There was reflection on the "premiumization" strategy, confusion about the tightening cash flow, and some apprehension about the boss's upcoming long-term overseas posting. But more than anything, there was a strong, habitual trust in Wang Sheng's foresight and strategic thinking.

After all, he has proven time and again that his decisions are always ahead of their time.

(End of this chapter)