Huayu: Starting from joining the mainstream entertainment industry in 96

Chapter 517, Section 515: The Awe of Shanghai Film Group
September 2004, 2, Beijing.

The aftershocks of yesterday's private sector symposium have not yet completely subsided, but the atmosphere in the same conference room in the General Administration building is already quite different.

Today's meeting is a symposium for state-owned film groups to "study and implement the 'Opinions on Accelerating the Development of the Film Industry'".

Compared to the undercurrents and tentative clashes among private capital yesterday, today's meeting was more solemn and serious, with a sense of order unique to those within the system permeating the air.

The seating arrangement around the oval conference table remains clear, but the faces are completely different.

Wang Sheng remains the focus, but today his role is even more special—he is the only private capital representative invited to attend.

This in itself is a strong signal, signifying that he has transcended the category of a simple private entrepreneur in the landscape of China's film industry and become a special entity capable of standing on equal footing with state-owned giants.

He was still wearing a well-tailored dark suit, sitting calmly in a slightly back position with an excellent view, neither too conspicuous nor easily overlooked.

Before the meeting began, the attendees entered the room one after another and exchanged pleasantries.

Seated to one side of the main seat was Han Sanping, chairman of China Film Group.

He had a ruddy complexion and was in good spirits. As the "big brother" of state-owned films and a strategic investor in Shengying Media, his relationship with Wang Sheng had long been an open and close alliance.

Upon seeing Wang Sheng, he nodded slightly and gave a knowing smile.

Immediately afterwards, a middle-aged man with a refined demeanor and wearing gold-rimmed glasses walked over to Wang Sheng with a warm and sincere smile on his face.

This person is Ren Zhonglun, chairman of Shanghai Film Group Corporation.

Ren Zhonglun has been at the helm of Shanghai Film Group for some time and is vigorously promoting the group's market-oriented reforms and industrial development.

"Chairman Wang, it's been a long time!" Ren Zhonglun was the first to extend his hand and shake hands firmly with Wang Sheng. "This time, I must personally express our sincerest gratitude to you on behalf of Shanghai Film Group, especially on behalf of the retired Chairman Zhu Yongde!"

His voice wasn't loud, but in the relatively quiet conference room, it was enough for the several state-owned enterprise executives around him to hear clearly.

Wang Sheng smiled and humbly replied, "Chairman Ren, you flatter me. How is Mr. Zhu's health? 'The Pursuit of Happyness' is the result of everyone's joint efforts. Shanghai Film Group, as a co-producer, has provided tremendous support to the project."

"Mr. Zhu is doing very well. He often talks about you, saying that you are a benefactor to Shanghai Film Group!" Ren Zhonglun said earnestly. He lowered his voice slightly, but the information in his words was very weighty. "To be honest, Chairman Wang, this film, 'The Pursuit of Happyness,' has really given us a huge surprise!"

The latest North American box office figures, released yesterday, have already surpassed $8000 million! Disney has decided to follow the example of "My Big Fat Greek Wedding" and give it an extended run, expected to last a full year! This is practically creating a box office miracle for a low-budget drama!

He paused, his eyes gleaming with barely suppressed excitement and pride: "And awards too, seven Oscar nominations, and a whole bunch of other preliminary awards... This is a project that our Shanghai Film Group has invested in, and it's truly gained international recognition both commercially and artistically! It's incredibly significant!"

These words were addressed not only to Wang Sheng, but also to his colleagues from other state-owned film groups present.

As is well known, a few years ago when Han Sanping and Wang Sheng of Beijing Film Studio joined forces to form the "Film Studio Alliance" in an attempt to integrate film production resources across the country, the "Shanghai circle" and "Shanghai faction" represented by Shanghai Film Studio were quite unhappy, believing that Beijing Film Studio was trying to reshape industry rules and challenge their traditional status and influence by using private capital.

There were indeed covert resistance and obstacles.

But at this moment, Ren Zhonglun's attitude made a 180-degree turn.

Faced with tangible benefits and honors, past squabbles seem insignificant.

The international success of "The Pursuit of Happyness" has brought pride to Shanghai Film Group, adding a significant chapter to its transformation into a large-scale film group that is "modern, market-oriented, and international."

This made them realize that instead of resisting Wang Sheng's emerging power, they should take the initiative to embrace cooperation and leverage his extraordinary capabilities in international markets, capital operations, and project development to achieve their own leapfrog development.

"Chairman Wang, from this day forward, you will be our Shanghai Film Group's closest strategic partner!" Ren Zhonglun solemnly emphasized at the end, "If Shanghai Film Group wants to go global and compete for international awards, we will have to rely on your guidance, Chairman Wang, even more!"

This statement was both humble and clear.

Several executives from state-owned enterprises around, such as the heads of Xi'an Film Studio, Xiaoxiang Group, and Emei Group/factory, had different expressions upon hearing this, but their eyes all revealed similar contemplation and weighing of options.

Wang Sheng maintained a polite smile and responded, "Chairman Ren, you're too kind. Cooperation and mutual benefit are fundamental. For Chinese films to go global, we need everyone's concerted efforts. Shanghai Film Group has a profound foundation and a wealth of talent, and there is vast potential for future cooperation." At this point, the meeting officially began.

The meeting was chaired by the deputy director of the State Administration of Radio, Film and Television who was in charge of the film industry.

He surveyed the room, his gaze lingering briefly on Wang Sheng, before beginning his introductory remarks.

The content was largely the same as yesterday's, still emphasizing the importance of the "Several Opinions," elaborating on the opportunities and challenges currently facing the film industry, and encouraging state-owned film groups to deepen reforms, stimulate vitality, and play a leading role in the market.

The difference today is that the speeches focus more on the social responsibility, ideological attributes, and main role of state-owned cultural enterprises in building a modern film industry system.

After the speeches were finished, it was the usual turn for the participating representatives to speak.

Several heads of large state-owned film groups spoke in turn, mostly discussing how to implement the "Several Opinions," how to deepen reforms, adjust structures, and create high-quality works, based on their own circumstances.

Most of their speeches were conventional and appropriate to their positions, emphasizing responsibility and commitment, but they also subtly revealed the pressure and anxiety they felt when facing market competition, especially when facing a behemoth like Sheng Ying.

When it was Wang Sheng's turn to speak, the atmosphere in the meeting room became noticeably more focused.

Everyone wanted to hear what insights this only "outsider" present, this young man who had created countless miracles, had on the future development of the state-owned film group.

Wang Sheng cleared his throat. Facing a group of state-owned enterprise executives, he maintained a humble yet assertive demeanor, speaking calmly and confidently.

"I am grateful for the trust of the leaders of the State Administration of Taxation and my colleagues from state-owned enterprises, which gives me the opportunity to attend and learn here."

He began with humility, saying, "Yesterday at the symposium for private enterprises, I shared some basic thoughts on creative principles. Today, facing the mainstays of the 'national team' of the Chinese film industry, I would like to take a different perspective and talk about how, under the guidance of the 'Several Opinions,' state-owned film groups and private capital can complement each other's strengths and jointly build a healthy and prosperous new ecosystem for the film industry."

This angle immediately attracted everyone's attention.

"First of all, I believe that the core advantage of the 'national team' lies in its deep industrial foundation, policy resources, and accurate grasp of mainstream values."

Wang Sheng analyzed, "State-owned enterprises play an irreplaceable role in major historical themes, realistic masterpieces, and key projects that represent the national cultural image."

For example, the films produced by China Film Group to commemorate National Day, the urban romance dramas that Shanghai Film Group excels at, and the western-themed films produced by Xi'an Film Group—these are all indispensable components of the treasure trove of Chinese cinema.

He first affirmed the value of state-owned enterprises, which eased the tension among the CEOs present.

"The advantages of private capital like Shengying lie in its market sensitivity, flexible and efficient decision-making mechanism, experience in genre exploration and industrialized production, and... its initial international cooperation and distribution network."

He then changed the subject, saying, "The success of 'The Pursuit of Happyness' is a good example. Shanghai Film Group provided brand support and domestic resources, while we brought project ideas, international production experience, and cooperation channels with Disney."

Ultimately, the project was a success, benefiting all parties involved. More importantly, it enhanced the international visibility of Chinese films as a whole.

He used this as an example to elaborate: "Therefore, I believe that future cooperation models can be more diversified. It shouldn't just be simple joint ventures for projects, but can be deepened in the following aspects:"

"First, there is a division of labor and cooperation within the industry chain. State-owned groups can focus more on guiding the direction, incubating major themes of strategic significance, and managing large production bases and fixed assets; while private capital can focus more on developing cutting-edge genres, technological innovation, precision marketing, and post-production product development. Everyone can give full play to their strengths and avoid homogeneous competition."

"Second, deep integration at the capital level. Similar to the model of China Film Group investing in Shengying, other state-owned groups can also consider establishing equity-level cooperative relationships with leading private companies. This is not only about financial support, but also about sharing ideas, resources and risks, which can form a more stable community of interests."

"Third, we should jointly explore the international market. State-owned enterprises have advantages in intergovernmental cultural exchanges and official selection for film exhibitions due to their official background; private capital is more flexible in commercial distribution and overseas co-production. Combining the two can form a new paradigm for Chinese films to go global: 'officially promoted and commercially operated'."

Wang Sheng's gaze swept over everyone present, finally settling on Han Sanping and Ren Zhonglun: "I believe that as long as the 'national team' and the 'private team' can eliminate the barriers, cooperate sincerely, find their respective positions, and form a joint force, they will definitely be able to promote the Chinese film industry to achieve the grand goals proposed in the 'Several Opinions', not only to prosper and grow in the domestic market, but also to occupy an important place in the global cultural landscape."

His speech was not aggressive, but rather a strategic vision based on rational analysis and successful cases. It pointed out the advantages and disadvantages of state-owned enterprises, clarified the role and value of private capital, and outlined a blueprint for coordinated development.

The meeting room was quiet for a moment, then erupted in enthusiastic applause.

Wang Sheng succeeded, so everything he says makes sense; even his farts smell good.

(End of this chapter)