Reborn in Hong Kong as a Tycoon

Chapter 388 78 Corporate Annual Report ([-])
Star Films, Lin Baicheng invested 2000 million Hong Kong dollars at the beginning, spent 100 million Hong Kong dollars to acquire Wu Siyuan's company, and gave Wu Siyuan 2% of the shares, so this company is not Lin Baicheng's exclusive holding, but a partner, although The partners' shares are very small.

In 1978, Star Films produced two films, both of which were "Serpentine" and "Drunken Master" starring Cheng Long. Both films were profitable at the box office, with a total box office of about 1000 million Hong Kong dollars.

The total box office is 1000 million Hong Kong dollars, and the box office share is 500 million Hong Kong dollars. The cost of production, shooting, publicity, and copying of the two films is 140 million Hong Kong dollars. The main reason is to give some bonuses to the production team after the box office hits, otherwise the cost can be less Some.But there is no need to be so stingy. The movie is a big hit, and the production team is given red envelopes as bonuses. This is an unspoken rule.

As a producer, in addition to box office income, there are also video tape distribution and overseas income.In this era, there is no concept of advertising placement in films, and TV stations will not buy film screenings from production companies, but make their own TV screenings.

As for peripheral income such as toys, dolls, clothing, accessories, etc., there is no need to think about it. One is that the film is not popular to that extent, and the other is that pirates will pirate after seeing the benefits, unless the film company gives authorization in the first place. , so that genuine products enter the market earlier.

As for combating piracy, it is not an easy task. Many piracy in this era are related to black people. If the background is not strong enough, who would dare to fight with those people.

Because the channels of Star Cinema have not been deployed overseas, so in Bend Island, Southeast Asia, Japan, South Korea and other places, the two films "Serpentine Hand" and "Drunken Master" of Star Films are all sold at one time. Discontinued to channel providers in various countries.

As for Western countries, only the United States has authorized Morningstar Pictures to release video tapes, and the licensing fees charged are basically negligible. The main purpose is to let more audiences know Cheng Long as the leading actor, and lay the audience foundation for Cheng Long, the leading actor, to break into Hollywood in the future. .

There are so many things, the videotape distribution and overseas income of the two films add up to 330 million Hong Kong dollars, which is not too small.The overseas income of a film usually means that the higher the local box office in Xiangjiang, the higher the overseas income.

"Drunken Master" ranks second in the box office rankings, and most of the overseas income is contributed by this movie. However, Cheng Long is almost not well-known in Southeast Asia and other countries, so overseas income is not high.

If Cheng Long's reputation is getting higher and higher, even reaching the level of Xiangjiang superstar, even if the movie theaters of Star Cinema are not opened in a certain country, and the box office cannot be divided, the money that can be earned by one-time selling out will only be more. It is not comparable now.

In addition to the two self-produced films, Star Films also distributed three films released by Hsu Films and Seven Little Fortunes.These three films are not directly screened by their respective companies when they get them to Star Cinemas. They must be handed over to Star Films for distribution.

In this way, Star Pictures can earn a 10% profit from the box office.Copying, publicity and other expenses are all paid by Star Films first, and after the film is released and the box office share is credited, Star Films will deduct it, which means that 10% of the profit is purely earned.

The box office of the three films "The Deed of Sale", "Tiger Frog" and "Mr. Zan and Changqianhua" was more than 1300 million Hong Kong dollars, so Star Pictures, as the distribution company, easily earned more than 130 million Hong Kong dollars.

In addition, after letting Star Films distribute the film, the copyright of the film will belong to Star Films, so Star Films also participated in overseas distribution and peripheral authorization, and also earned 10% of the profit.

Don't think about peripheral licensing at present. Only overseas sales and video tape distribution are the two incomes. The 10% profit of the two incomes of the three films still contributes about 60 Hong Kong dollars.

It is not just talk that distribution companies are in the upper reaches of the film industry.

In other words, in 1978, the total revenue of Star Pictures was more than 890 million Hong Kong dollars, and the expenditure on employee salaries and other aspects was not much, which added up to less than 30 Hong Kong dollars, mainly due to the small number of employees.

However, the profit of Star Pictures in 1978 was not as much as 860 million Hong Kong dollars.

First of all, the company spent 100 million Hong Kong dollars to buy Cheng Long's contract from Luo Wei Films, and then gave Cheng Long a signing fee of 200 million Hong Kong dollars when signing Cheng Long. It cost 300 million Hong Kong dollars just for Cheng Long. Six or seven films have been made.

Of course, signing Cheng Long also got the rewards he deserved. After "Serpentine Hand" and "Drunken Master", Cheng Long can be said to be in his early years in the Xiangjiang film circle, not to mention that these two films have brought a lot of money to the company. The profit has far exceeded the investment in Cheng Long.

In addition to spending on Cheng Long, Star Films also purchased advanced production equipment, and invested in three film companies, Xu's Films, New Art City, and Seven Little Fortunes, all of which cost a lot of money.

Calculated in this way, the profit of Star Pictures in 1978 was only about 300 million Hong Kong dollars.

Fortunately, Star Films also bought shares in three companies, Xu's Films, Seven Little Fortunes, and New Art City. Not counting New Art City, both Xu's Films and Seven Little Fortunes made money in 1978.In particular, Xu's Films has made a lot of money. Unfortunately, Star Films only has 20% of the shares in Xu's Films, so they only get 50 Hong Kong dollars. The remaining funds will be reserved for the company's recruitment, equipment purchase and production next year.

Star Films has 51% of the shares of Seven Little Fortune Film Company, but the profit of Seven Little Fortune Film Company in 1978 was only 320 million Hong Kong dollars, and 51% was only a little more than 160 million Hong Kong dollars.And the money will be reserved for filming next year, so there is no share.

In other words, the profit of Star Pictures in 1978 was only 350 million Hong Kong dollars.Fortunately, there is no need to calculate a lot of costs this year. In addition, there must be more than two films made throughout the year. Unless most of the films hit the street, the revenue and profit will definitely be more.

Although the star film company did not earn much in 1978, after nearly a year of development in 1978, the company not only added a lot of equipment, but also made Cheng Long popular, and even owned three film companies in different proportions. It can be said that the company has grown a lot.

If Star Films is to be valued, based on the fact that Star Films currently has about 2300 million Hong Kong dollars in its company account, the company's valuation can at least double.The main reason is that the uncertainty of movies is too high. No one can be sure whether the movies produced and distributed by the company in the future can make money. It is entirely possible to lose money if it is not good.

However, no matter what the valuation of Star Films is, Lin Baicheng will definitely not just sell it. On the contrary, he will not take any profit from Star Pictures, and the company's profits will be used for the company's development within a few years.

In general, Star Films developed quite well in 1978.

　(Thanks to 'Time 1979' for the big 500 point reward support!)

　　
　
(End of this chapter)