Huayu: A master director who debuted as a singer

President Wang took a piece of paper from the drawer and pushed it in front of Zheng Hui.

"Here's the number, contact him yourself."

Zheng Hui picked up the slip of paper, which only had a Hong Kong phone number and the words "Manager Chen" on it.

Without asking any further questions, he dialed the number.

After the call was connected, Zheng Hui introduced himself.

The person on the other end of the line said in Cantonese-accented Mandarin, "Oh, it's Mr. Cheng. Hello, hello, I'm Chen from PolyGram."

Zheng Hui recognized the voice; it was the A&R manager he had met at PolyGram.

……

The acquisition deal between PolyGram and Universal Music is nearing completion, and there is a lot of anxiety within the company, with many employees worried about their future.

Manager Chen was one of them. He was unsure whether he would be among those laid off after the transaction was completed, so he had to find a way to save himself.

Since CCTV's "Variety Show" broadcast Zheng Hui's live performance, his rendition of "I Believe" has been like a signal flare, instantly igniting the night sky over southern China.

Hong Kong television can receive CCTV signals, and Guangdong radio broadcasts can easily cross the Shenzhen River.

This song soared to the top of the Mandarin/Cantonese pop chart on Lingnan Radio.

Along with "Stubborn" and "The Brightest Star in the Night Sky", they also made it into the top ten.

The name Zheng Hui began to appear in the corners of the entertainment sections of some Hong Kong newspapers and magazines.

Manager Chen immediately recognized that this young man who had stirred up a storm in mainland China was the same person who had come alone a few months earlier with samples and manuscripts to test the waters.

The sales figures coming from the mainland were too astonishing. Manager Chen held Zheng Hui's tape and studied it repeatedly with several colleagues in the company whose futures were also uncertain.

Everyone agreed that the inspirational and positive style of these songs perfectly matched the market sentiment in Hong Kong, Macau, Taiwan, and even the entire Southeast Asia region after being impacted by the financial crisis.

While no one would dare to guarantee that it will trigger a phenomenal explosion, profitability is almost a certainty.

With this assessment in mind, Manager Chen approached several senior executives who shared similar concerns about their positions. After discussing it, they decided to take a gamble.

They secured the distribution rights for the album in Hong Kong, Macau, Taiwan, and Southeast Asia, achieving impressive results. When Universal Music officially took over, they wouldn't easily fire an employee with proven track record.

"Manager Chen, is there something you need?"

Manager Chen on the other end of the phone immediately got to the point: "Mr. Zheng, it's like this. I'm representing PolyGram and would like to discuss the distribution rights for your album in Hong Kong, Macau, Taiwan, and Southeast Asia. Would it be convenient for you to meet now to discuss this?"

I'm in Guangzhou.

"That's great, I'm in Guangzhou too. Where is it convenient for you? I'll come over to you." The other person adopted a very humble attitude.

Zheng Hui gave the address of the restaurant at the White Swan Hotel.

Half an hour later, Zheng Hui met Manager Chen at a booth in the hotel restaurant.

"Mr. Zheng, I'm sorry to have kept you waiting." Manager Chen walked over quickly and extended his hands.

Zheng Hui stood up, shook hands with him, and gestured for him to sit down.

When the waiter came to take orders, Manager Chen only ordered a glass of iced lemon tea.

Manager Chen got straight to the point: "Mr. Zheng, I won't beat around the bush."

Your songs are very popular in mainland China right now, and we've heard about them in Hong Kong too. Our company is very optimistic about the market potential of this album.

"I have a question: Do you still own the copyrights to the lyrics, music, and recording of all the songs on this album?"

"They're all here." Zheng Hui nodded.

Manager Chen visibly breathed a sigh of relief: "That's great! Our company would like to represent the distribution rights of your album in Hong Kong, Macau, Taiwan, and Southeast Asian regions such as Singapore and Malaysia."

He took a contract out of his briefcase and pushed it in front of Zheng Hui.

"We've looked into it. Your album was produced entirely by yourself in mainland China, so we won't discuss the production costs. We're willing to offer a 12% royalty rate."

"In addition, we will prepay you HK$500,000 in royalties. This amount will be paid immediately after signing the contract and will be deducted from your share of the singer's profits."

Zheng Hui picked up the contract and quickly glanced through it.

The terms are clearly stated; it is purely a distribution agency agreement, without any brokerage or creative contracts.

After reading the document, Zheng Hui put it down and looked up at Manager Chen: "I have a question."

"Please speak."

"Last time I visited your company, you told me that you were being acquired and that all new employee recruitment was suspended. How come it's possible again now?"

A hint of embarrassment flashed across Manager Chen's face: "Mr. Zheng, times have changed."

"To be honest, when you came last time, we didn't have a clear market assessment of your songs."

For a complete newcomer, investing hundreds of thousands in an album is a huge waste if the market doesn't accept it. Nobody dares take that risk when the company is in turmoil.

"But things are different now," Manager Chen said, his pace quickening.

"Your song has already proven itself in the mainland market, and it's been a huge hit, which gives us peace of mind. All we need to do now is put this proven bestseller on the new shelves."

Even if there's a possibility of the album not adapting well to the local environment, releasing this album will definitely break even.

Taiwan, Singapore, and Malaysia have huge Chinese-speaking markets where people speak Mandarin. A song that's this popular in mainland China will definitely sell well there too.

His words were very practical, clearly outlining the logic of a businessman.

For these record companies, Zheng Hui is no longer a newcomer who needs to be nurtured, but a finished product that can generate profits immediately.

However, Zheng Hui is the same way. Now, he only sees big companies like PolyGram as new distribution channels. There's nothing wrong with having another way to make money.

In the Hong Kong, Macau, and Taiwan markets of 1998, cassette tapes were beginning to be phased out, and CDs were the mainstream medium. The price of a CD ranged from seventy or eighty to over one hundred Hong Kong dollars.

Zheng Hui quickly did the math.

Based on a CD price of HK$80, with a 12% royalty rate, he would receive HK$9.60.

In addition, he has registered the copyrights to all his songs with CASH (Composers and Authors Society of Hong Kong). According to industry practice, the lyricist and composer can receive eight or nine dollars for every record sold.

Together, he can earn close to twenty dollars for every CD he sells.

This profit margin is much higher than that of selling cassette tapes in mainland China.

Even if only 100,000 CDs are sold in the first batch from Hong Kong, Macau, Taiwan, and Southeast Asia, he can still make a profit of nearly two million, which is roughly equivalent to the revenue from selling one million cassette tapes in mainland China.

Moreover, he didn't think he would only sell that few.

The contract is for two years, and there is a clause that if CD sales exceed 50,000 copies within two years, the distribution rights will be automatically renewed for another year.

If sales fall below 30,000 units, both parties may terminate the contract unconditionally without pursuing any further liability.

This clause is fair, giving both parties a clear expectation and a way out.

Zheng Hui closed the contract and looked at Manager Chen across from him.

"I've read the contract, and there are no problems."

So both parties picked up pens and signed their names at the end of the contract.

Two copies are made, and the two people exchange them.

Manager Chen carefully put his copy of the contract into his briefcase, and his entire demeanor was different from when he first arrived.

"It's a pleasure doing business with you, Mr. Zheng."

"It's a pleasure working with you."

"By the way, with the album release, we'll definitely need to promote it. We need to arrange some radio chart appearances and TV appearances, mainly in Hong Kong and Taiwan. When would be a convenient time for you?"

Zheng Hui thought for a moment and said, "I'm going to be doing commercial performances in mainland China soon, and my schedule is already full."

Li Zongming had painstakingly secured dozens of commercial performances, which represented a significant amount of money. He couldn't possibly turn them all down for an uncertain market in Hong Kong and Taiwan.

Manager Chen was in a dilemma. Without promotion, it would be difficult to increase sales by simply distributing goods.

"Can't you spare even a little time? Even just one week would be fine; we can combine all the announcements together."

Zheng Hui looked at the calendar and calculated that the Spring Festival Gala rehearsals wouldn't start until mid-December.

"Alright, I can give you a week in mid-November. You can arrange the specific itinerary."

"Great! It will take about a month for the mother to take it away, remake, print, and press into tablets, which is perfect." Manager Chen immediately agreed: "Then I'll go back to Hong Kong to make the arrangements. I'll contact you again for the follow-up schedule."

"no problem."