supergiant age

Chapter 778 Premium Investment
Zheng Liaoyuan smiled. In fact, only their studio has the confidence to reject investment from other film and television companies or investment companies.

The film and television industry is an asset-light industry, and it is difficult to use financing leverage. In addition, the capital turnover rate of film and television dramas is very low, which exacerbates the lack of money.

A TV series often goes through a cycle of one to two years from development, production, broadcast, and payment collection.

The average capital turnover cycle is usually more than one year, which means that the funds of film and television companies are only recycled once a year.

Among the assets of film and television companies, accounts receivable account for a very high proportion, exacerbating their cash gap.

In other words, a very large proportion of the TV series that have been sold cannot be recovered on time.

As the main buyer, the TV station relied on its strong position to extend the payment period for no reason.

The billing period can be as short as a few months and as long as more than a year. In fact, film and television companies that are already short of funds have to provide financing for downstream buyers, and TV stations have been occupying the funds of film and television companies for free for a long time.

It can be seen from the statements of most listed film and television companies that their operating cash flow is often negative, which means that the cash from business income is not enough to cover the cash needs of business expenses.

This part of the cash flow gap must be supplemented by its own funds. If it wants to continue to expand production capacity, film and television companies have to continue to raise external financing.

Just like the TV series "Conquer" and the film "Infernal Affairs" invested by the studio and Shanying Group before, even now, all the money has not been recovered.

This is a disadvantage determined by the overall market atmosphere, and this is also the reason why Yi Shuihan was willing to cooperate with Harbor Satellite TV before, because they paid back quickly.

The reason why Yi Shuihan Studio has the confidence to reject other people's investment is because of its absolute confidence in the TV series, he does not need other groups to take risks for him.

Another point is that each of Yi Shuihan's previous works has maintained a high rate of return, so the working capital of the studio can be sufficient to support the shooting of the entire TV series.

Yi Shuihan was communicating with Zheng Liaoyuan. At Qiantang Airport, two middle-aged men in suits and leather shoes rushed to Yi Shuihan's studio as soon as they got off the plane. They were Wang Qianye, director of the investment department of Shanying Group, and his assistant Xu Bowen.

"Minister Wang...I don't understand," Xu Bowen asked after hesitating for a moment, "Is that how you like this TV series? Although the first part of "Legend of Sword and Fairy" did well, it doesn't mean that it will be a sequel." It will be good, do we need to come to the door in person? And our group also has a TV series "Phoenix Yu Fei" filming..."

Wang Qianye took a look at Xu Bowen. He still regarded his assistant very highly. After pondering for a while, he said, "You can't look at the problem one-sidedly, and you can't analyze it separately. You have to combine it with the whole. The first point, "Legend of Sword and Fairy" According to word of mouth, Yi Shuihan's studio just released a piece of news, and it has already gained so much attention before it was finished or even started. This is a natural advantage for shooting a sequel.

The second point is the word-of-mouth of Yi Shuihan's studio. Although they are just a small studio, the word-of-mouth of their studio has gradually caught up with our Shanying Group! "Legend of Sword and Fairy", "New Life", "Dragon and Babu", the success of several TV series in succession has accumulated countless fans for them.

The third point, compared to this "Chinese Paladin II", what I like more is Yi Shuihan's investment vision... Every TV series and movie he invested in has achieved great success, every one!
I think what we care about is whether the other party is willing to let us invest..."

"Why don't you want to invest..." Xu Bowen stopped in the middle of speaking, as if the other party really didn't need to invest in the current situation.

Not long after, they came to Yishuihan Studio. Compared with Shanying Group, Yishuihan Studio was much smaller, but in terms of last year's profit, it was almost the same as that of Shanying Group with many businesses. Shocking.

At this time, Yi Shuihan and Zheng Liaoyuan were discussing, and when they heard the secretary report that the Shanying Group was coming, they looked at each other, and they were very clear about the other party's purpose - the other party also came for the movie "Legend of Sword and Fairy II".

After the visitor opened the door, Zheng Liaoyuan was taken aback. The head of the investment department actually came in person. It seemed that they had great determination.

It's just... Zheng Liaoyuan took a look at Yi Shuihan, they just discussed and planned to fully invest in this TV series.

"A distinguished guest is coming, Minister Wang, I'm sorry to welcome you!" Zheng Liaoyuan got up and shook hands with Wang Qianye, and said with a smile on his face.

"Yi Shuihan, welcome to visit Minister Wang!" Yi Shuihan also smiled and stood up.

"Director Yi, Mr. Zheng is too polite and dare not take it on." Wang Qianye responded with a smile.

"Just call me Ahan, I'm not used to calling me Dong Yi out of the blue." Yi Shuihan said with a laugh

After the three sat down, they exchanged pleasantries for a while, and naturally talked about the purpose of today's visit.

"Recently, the Internet has been very lively. They are all discussing the news of the second part of the Immortal Sword. It seems that your studio is going to do a big job!" Wang Qianye sighed with a smile, and was also probing.

"It's just eating and drinking, Minister Wang laughed at me." Yi Shuihan responded with a smile.

Regarding Yi Shuihan's self-effacing, Wang Qianye also laughed it off, even if he was living on his laurels, it would definitely not be an ordinary profit, otherwise, from Yi Shuihan's perspective, he would not have spent such a great effort on a sequel.

"Ahan is being modest, Shanying Group is very optimistic about this TV series, but don't know if it's convenient to read the script?" Wang Qianye asked with a smile, which is equivalent to asking straight to the point.

Yi Shuihan and Zheng Liaoyuan looked at each other, and after pondering for a moment, they said: "The script can be shown to Minister Wang at any time, but...we have no plans to raise funds for the time being, and I am afraid that it will be a waste of time for Minister Wang to go. Feel sorry."

Xu Bowen was shocked, but he didn't expect that Minister Wang really expected that the other party was really unwilling to accept investment from other companies. Could it be that they were really so confident?
For this answer, Wang Qianye was also mentally prepared, but his determination was stronger than they imagined.

He frowned and thought for a while, and finally made up his mind: "Don't rush to refuse... What if I want to invest at a premium?"

Yi Shuihan, Zheng Liaoyuan, and Xu Bowen were shocked at the same time, but they did not expect such a request from the other party.

Premium investment, that is to say, Wang Qianye is willing to spend more money to obtain a certain amount of equity, which is equivalent to Xu Bowen taking a greater risk...

(End of this chapter)