Chapter 381 Jiahe Total Share Capital and Stock Issue Price

The summer season is in full swing, but domestic films do not have much presence. Several Hollywood blockbusters have finished competing in North America and are now competing fiercely in mainland China.

But there is no way around it. At present, domestic films as a whole are indeed not as good as Hollywood films, not to mention the Hollywood blockbusters that have proven to have super high box office in North America.

Only a few top domestic films each year can compete with Hollywood blockbusters.

Therefore, in order to prevent Hollywood blockbusters from wreaking havoc in the mainland film market, they can only be gathered together and let them fight each other to the death.

To be honest, this is actually a bit frustrating for Chinese-language filmmakers.

But there is no other way. We are not as strong as others now, and we can only protect domestic films through such means.

If you follow Liu Zhou's idea, there is nothing wrong with your protection in the past few years. After all, domestic commercial films were just starting out at that time, and there was indeed a big gap compared to Hollywood films.

But now, Liu Zhou feels that there is no need to protect it like this. Two years later, he even went so far as to establish a domestic film protection month.

In fact, as early as 2004, the authorities issued a notice hoping that theater chains across the country would support domestic films. Later, this gradually became an unwritten rule in the country, namely the Domestic Film Protection Month.

But because domestic films were protected too well, although the box office of domestic films continued to increase, they tended to follow the trend and were extremely lacking in innovation.

However, at that time, Hollywood's special effects blockbusters had been released for more than ten years, and domestic audiences were tired of them, so domestic films could compete head-on with Hollywood blockbusters.

Even the situation of head-on blasting of Hollywood blockbusters has occurred frequently, and the somewhat humiliating regulation of the Domestic Film Protection Month has officially become history.

But this is not Liu Zhou's decision. Not only do the major film and television companies below hope so, but Han Shanping also agrees to continue protecting domestic films.

Liu Zhou didn't care about the fierce competition among several Hollywood blockbusters. Needless to say, "Transformers 2" would be the final winner.

As of July 2, "Transformers 3.2" has grossed million yuan at the box office, far ahead of several other Hollywood blockbusters.

"The Sound of Wind" is scheduled to be released on July 29th, which is only half a month away.

However, the existing publicity has been handed over to the group's publicity and promotion department. Several senior executives such as Liu Zhou and Zhang Zhao are busy preparing for Jiahe's listing roadshow.

After consultation with CITIC Securities, only four cities were selected for the roadshow: Beijing, Shanghai, Shenzhen and Hong Kong.

The roadshows in these four cities will be completed within a month, with Magic City being the last stop.

A roadshow is equivalent to selling goods, and the people you sell goods to are all experienced people who won’t show their eagle until they see the rabbit.

So even though Jiahe Group has the highest market value and is the most well-known among the companies listed in the same batch, Liu Zhou still dares not be complacent and prepares for the roadshow seriously.

In addition to determining the time and location of the roadshow, the number of Golden Harvest shares and the stock issue price were also determined some time ago.

After discussion and decision, the total share capital of Jiahe stock is 30 billion shares, and the issue price is four yuan.

In other words, before its listing, the market value of Jiahe Group was as high as 108 billion, an increase of 12 billion compared to the initial valuation of billion when CITIC Group invested.

In just a few months, the market value increased by 1.2 billion. To be honest, even Liu Zhou felt that the increase was too much.

After all, the scale of Jiahe itself is over 10 billion, and 1.2 billion is not a small amount. The total market value of some listed companies may not even be 1.2 billion.

However, people from CITIC Group tried their best to assure that the increase was not too much, that the recent performance of Golden Harvest Group was worth it, and that shareholders would definitely buy it.

In the past few months, the only good news for Golden Harvest Group was the huge success of "Twilight" produced by Summit Entertainment.

And this is enough for CITIC Group. Not to mention that the "Twilight" series is valuable, and the foreign monks also chant well.

Good news at home is far less stimulating to investors than good news from abroad. As long as a Hollywood story is told, investors and even some investment institutions will be excited.

As the largest securities company in China, CITIC Securities is best at telling stories.

Coupled with some recent domestic plans of Jiahe Group, CITIC Securities is even more confident about increasing the market value of Jiahe Group by 1.2 billion.

Liu Zhou thought that CITIC Securities was professional and more experienced after all, and with the current momentum of Jiahe Group, it would not be possible for the market value to increase by 1.2 billion and lead to a price drop on the day of listing.

At the same time, if the market value increases, more funds can be raised. In the end, Liu Zhou agreed with CITIC Securities' idea.

Then it plans to list and issue 7.5% of the total share capital, which means million shares will enter the market.

However, out of these 7.5 million shares, million shares will be used for internal purchase within the company, and at half price.

This can also be regarded as Liu Zhou's care for the company's internal employees.

But there is a limit to the number of shares each person can buy.

For example, Qin Hao, Fan Xiaopang, Huang Xiaoming, Liu Ye, Zhou Gongzi, Liu Yifei, Hu Jun and executives at the director level of each department can subscribe for a maximum of 8 million shares.

The two contracted directors, Xu Ke and Ning Hao, can subscribe for up to 10 million shares.

Then Zhu Yawen, Zhang Yi, Huang Bo and middle-level managers at the manager level can subscribe for a maximum of four million shares.

As for Dou Xiao, who had just joined Jiahe, he was not eligible to purchase internal original shares.

However, Liu Zhou had a good idea and felt that it was a way to take care of internal employees, but their desire to buy was not very strong.

On the contrary, there are many people outside the company who are trying every means to buy Golden Harvest's original shares, even if they don't have to pay half price, they will buy them at the original price.

In response, Liu and Zhou all refused and did not allow non-company employees to purchase original shares.

Among the people in the company, only the artists Huang Xiaoming and Liu Yifei bought all the 8 million shares they were able to subscribe for.

As for the others, Qin Hao and Liu Ye only bought 5 million, Fan Xiaopang and Hu Jun bought 3 million, and Mr. Zhou did not buy a single share.

Zhu Yawen, Zhang Yi and Huang Bo only bought two million shares each.

Liu Zhou could have predicted that Huang Xiaoming would buy all eight million shares. After all, he had always been very passionate about investment and now he had quite a fortune, so spending sixteen million to buy stocks was no problem for him.

Liu Yifei's mother was very optimistic about Jiahe's stock and asked her to buy all the original shares she could.

Qin Hao and Liu Ye only bought 5 million shares. Liu Zhou thought they didn't have enough money, so he called them to ask.

But the two of them didn't buy this because they didn't have enough money, they were just being conservative.

What made Liu Zhou even more angry and amused was that they originally didn't want to buy a single share, but in order to support him, Liu Zhou, they reluctantly bought 5 million shares with tears in their eyes. When Liu Zhou learned of their thoughts, he immediately felt like a thousand horses galloping past him.

Liu Zhou wanted to make money with them, but in their eyes, Jiahe stocks seemed to be unsellable.

Finally, Liu Zhou spit in their faces and scolded the two of them heartily, and only then did they reluctantly buy the remaining three million shares.

As for Fat Fan, this woman is just as conservative as Qin Hao and Liu Ye.

However, she didn't intend to buy a single share, but she didn't dare to invest too much in the stock, so she only bought three million shares to give it a try.

Among all the artists in Jiahe, Fan Xiaopang is the richest except Huang Xiaoming. Even Qin Hao cannot compare to her. Moreover, if Huang Xiaoming does not do business, his ability to make money is also not as good as hers.

But she worked so hard to earn money, and almost all of it was spent on buying houses. Now she owns more properties than Liu Zhou.

She has never been interested in investing or anything like that, but she has a special liking for buying houses.

In history, she also bought a lot of houses. Later, she had to pay a fine of 8 million yuan. Some media reported that Fan Xiaopang sold houses to pay the fine, making it seem as if she was going to fall into poverty.

It is true that she sold her house to pay the fine, but she had a lot of properties under her name, and the housing prices were so high at that time, so 800 million was not a big deal for her, and she still lived a very comfortable life.

Not being able to make a comeback is the biggest harm to her.

In her opinion, a house is something that can be seen and touched, and house prices have been rising every day in recent years, so Fan Xiaopang has spent almost all of his earnings on buying houses.

If it weren't for the close relationship between him and her, Liu Zhou would not have bothered to pay attention to her.

But after all, she was one of theirs, and Liu Zhou didn't want her to miss the opportunity to make money, so he persuaded her to buy all eight million shares.

As for Mr. Hu, he was interested in Golden Harvest stocks, but the reason why he only bought three million shares was because he did not have enough funds.

Although Hu Jun debuted very early, he did not become popular until "Demi-Gods and Semi-Devils", and only started to make some money after 2003.

However, although Hu Jun is popular, his commercial value is indeed not high, so his ability to make money is far less than that of Qin Hao and the other four young actors.

After deducting his own and his family's expenses, Hu Jun took out most of the funds he could mobilize and only bought three million shares.

Liu Zhou didn't say anything about this, and it is indeed necessary to do things within one's ability.

His relationship with Liu Zhou is not as close as that with Qin Hao and others, so it is impossible for Liu Zhou to persuade him or lend him money to buy stocks.

The same goes for Mr. Zhou. He can certainly come up with 16 million, but he has a natural aversion to stocks. He thinks stocks are unreliable, so he didn't buy a single share.

Liu Zhou did not try to persuade her. There was nothing wrong with her thinking. She was destined not to earn this money, but others should never treat her as a leek.

As for Zhu Yawen, Zhang Yi and Huang Bo, they have only become famous for a short time. Huang Bo may have been famous for a longer time, but his ability to make money is not as good as Hu Jun's.

So the three of them only bought two million shares, and the four million had already consumed most of the money they had saved.

As for Ning Hao and Xu Ke, they are both pillar directors of Golden Harvest and have created greater value for the company than the actors, so Liu Zhou also gave them 10 million shares each.

As for the 10 million original shares, both of them took them up without hesitation.

Xu Ke is a veteran director in Hong Kong. More than 20 years ago, he was no longer just a director. In the mid-1980s, he set up a film studio and became his own boss.

Moreover, in Hong Kong where capital is so developed, people have very active minds. He had witnessed with his own eyes the grand occasions when Golden Harvest and Yongsheng went public.

In his opinion, the current Golden Harvest is much stronger than the original Golden Harvest and Yongsheng, and the current Golden Harvest's listing situation is definitely much better than those two companies back then.

Therefore, Xu Ke was the one who could best understand Liu Zhou's intentions. Liu Zhou sold 10 million original shares to him at half the price, which was simply helping him make money.

Therefore, Xu Ke took out 20 million without hesitation and bought all the 10 million shares.

I even called Liu Zhou to ask if he could buy more.

However, this share was agreed upon and regulated by Liu Zhou and the senior management, so Liu Zhou could only tactfully reject Xu Ke's request.

Xu Ke didn't care about this. He was satisfied to get 10 million shares. In his opinion, as long as Jiahe went public, these 10 million shares of Jiahe would be worth hundreds of millions.

That is to say, he invested 20 million and got a five-fold return in less than three months.

When Golden Harvest and Yongsheng went public, he was not included in the list. Now he will finally experience the thrill of making quick money.

This might be money that one would have to make by shooting seven or eight movies, but now one can make it in a short time. No wonder the Mecca of New One City was so obsessed with stock trading.

Xu Ke now feels more and more how wise it is to join Golden Harvest. He feels that he can work at Golden Harvest until retirement.

As for Ning Hao, he is not a conservative person either.

After becoming famous in history, Ning Hao also engaged in many capital operations with Xu Zheng, but he was not as involved as Xu Zheng.

But of course Ning Hao did not hesitate to seize the opportunity that did not involve much risk and could make money.

However, as a director, Ning Hao did not earn as much money as the actors. Although Liu Zhou did not treat him unfairly, it was still difficult for Ning Hao to come up with 20 million.

Ning Hao may not have earned 20 million since joining Golden Harvest.

Ning Hao, who has been with Liu Zhou for six or seven years, is considered a veteran of the company, so Liu Zhou will lend him the funds that Ning Hao is short of.

Not only Ning Hao, but also middle and senior management who have the opportunity to buy Jiahe's original shares can be loaned money by Liu Zhou if they do not have enough funds.

It's not that Liu Zhou is kind or a saint, but that the money is meant to be made by someone else, and it's better to let people in the company make it than to let outsiders.

What's more, when they make money, they will feel more belonging to the company and work harder. Why not?

However, the managers are not that courageous. Those at the director level are still okay as they have a clearer understanding of the company and are more confident about Jiahe's listing, so they don't have many concerns.

When they didn't have enough money, they borrowed from Liu Zhou without hesitation, and bought almost all of the eight million shares.

Middle-level managers at the manager level are much more hesitant. After all, their salaries are not that high, so not many people have the courage to take a chance, less than half.

Liu Zhou can understand this. Everyone’s situation is different, and he will not interfere with their choices. Whether one can make a lot of money sometimes really depends on fate.

(End of this chapter)