Chapter 409 Distribution of Funds Raised
The wealth-making myth created by the listing of Golden Harvest Group has aroused great attention from the outside world.

People in the circle may be envious and jealous, but they will only communicate within a small circle. The ones who are most interested in this are netizens.

Especially fans of Liu Zhou, Qin Hao, Fan Xiaopang and other fans of artists under Golden Harvest, felt proud and joined hands with those spectators to create huge heated discussions online.

Moreover, the equity structure of Golden Harvest was inevitably brought up by the media again to discuss the vision of these stars and analyze their position in Golden Harvest.

So in addition to related terms such as Jiahe's listing, related searches on Weibo also occupied several positions on the hot search list, including those about Qin Hao, Fan Xiaopang and others.

However, some are happy while others are sad. While fans of Qin Hao, Fan Xiaopang and others were cheering, the fact that Mr. Zhou did not get even a trace of Golden Harvest shares caused great dissatisfaction among his fans.

They believed that Jiahe was suppressing Mr. Zhou and supporting Fan Xiaopang, because Fan Xiaopang was considered a direct descendant of Jiahe, while Mr. Zhou joined in the middle.

It’s no wonder that this statement is quite popular on the Internet.

Mr. Zhou is already very popular and well-liked by the public, and this kind of inference with a hint of conspiracy theory is also quite eye-catching.

Seeing this, some entertainment gossip media immediately followed up and added fuel to the fire.

Most of the domestic media are reporting on the news about Golden Harvest's listing. People have many options for obtaining information, and these entertainment media simply cannot compete with those major newspapers.

Therefore, if you want to have clicks and sales, you have to find another way. The fact that Mr. Zhou gained nothing from the listing of Golden Harvest is undoubtedly more interesting.

In addition, when Golden Harvest went public, there were also cameras capturing Zhou Gongzi looking unhappy, while the other artists next to him were all smiling, with Zhu Yawen even grinning.

When this picture was released, it immediately attracted the attention of Zhou Gongzi's fans. They seemed to have found evidence and began to speak up for Zhou Gongzi with great confidence.

Under the hype of these entertainment media, there were endless reports that Mr. Zhou was suppressed, Golden Harvest artists were fighting among themselves, and Mr. Zhou was about to jump ship and leave.

There are all kinds of opinions.

Regarding this aspect of public opinion, Golden Harvest has remained silent, and other artists under its banner have not expressed any opinions on this either.

Almost everyone inside Jiahe or in the circle knows that Jiahe gave Ms. Zhou a share to buy stocks, but she herself refused.

She can't blame anyone else but herself for having poor vision.

However, Golden Harvest is not in a position to explain the reason.

Regardless of whether Zhou Gongzi’s fans believe it or not, doing so would have a bad impact on Zhou Gongzi and would also affect the relationship between them.

Therefore, Golden Harvest adopted the cold treatment approach and ignored it.

Such things should only be hot for a while, not to mention that the biggest hot topic right now is still Golden Harvest's listing, so it won't cause too much impact on public opinion.

However, Master Zhou was more sensible and did not allow the matter to continue to ferment.

She posted a long article on her Weibo, explaining the reasons in detail and saying that it was all her fault and that she did not seize the opportunity.

Once Zhou Gongzi published this long article, she finally calmed down most of her fans.

Although there are still some extreme fans and entertainment media who want to stir up trouble, they are no longer a big deal. In addition, Golden Harvest started to control comments, and the public opinion on this matter began to slowly subside.

On the other hand, after Jiahe’s successful listing, Liu Zhou was finally able to put his mind at ease.

Especially on the second day, Jiahe’s stock was still rising slowly, and Liu Zhou felt completely relieved.

That evening, Liu Zhou invited Golden Harvest's executives and artists to Yan's Garden for dinner as an internal celebration.

After the meal, everyone has to continue working.

It is not the end of the world just because Jiahe is listed on the stock market. There is still a lot of work to be done afterwards. Even Liu Zhou needs to stay in Shanghai for a few more days before he can go back.

As for Qin Hao and the others, they had taken leave to come here because they were filming a movie, and now they have to go back to continue filming.

After staying in Shanghai for another two days, Liu Zhou's parents returned to Guangzhou.

He and Zhang Zhao and others stayed in the Magic City for three days. After dealing with the follow-up matters, everyone returned to the capital together.

Everyone has been very busy during this period, but now that everything has settled down, Liu Zhou gave several people three days off as he himself wanted to take a break.

Three days later, it was September 3rd.

Liu Zhou convened the first high-level meeting after Jiahe went public.

When Liu Zhou walked into the conference room, everyone was already there. Seeing the joy on their faces, he smiled and said:

"How was your rest? We may be busy again next time."

"Mr. Liu, I'm fully recovered and can get back to work at any time." Gao Jun also replied with a smile.

"Yes, judging from your condition, you should have rested well. Let's have a meeting first."

After sitting down, Liu Zhou drank a sip of tea and then said:

“The success of Golden Harvest’s IPO is also thanks to all of you present here. I have also fulfilled the promise I made to you. Now, all of you have become billionaires.

However, although we have achieved the major goal of listing Golden Harvest, it does not mean that we can relax.

Not to mention that there are companies like Huayi, Guangguang, and Bona who are catching up, we at Golden Harvest should also set more ambitious goals.

Jiahe’s current market value is over 50 billion yuan, which is very high. The market value of most domestic industrial or technology companies is not as high as ours.

Therefore, some so-called experts criticized us for being unworthy of our position. The entertainment industry has not promoted China's economy much at all, but it is highly sought after by investors, causing domestic funds to flow to places that cannot create much value, that is, us at Golden Harvest.

I have never cared about the pointing and criticism from outsiders, but I need everyone to realize that Golden Harvest is not just an entertainment company that makes movies and TV series to entertain the public.

We are a cultural media company. In addition to entertaining the public, we also shoulder the responsibility of spreading our traditional culture and correct values.

We should not only promote our traditional culture at home, but also spread our culture overseas.

I know this may be a bit difficult, but we are the leader in the industry. Since the public and the higher-ups trust us so much and have raised Golden Harvest to such a high market value, we must take the lead in tackling the toughest challenges.

So our new goal is to build Golden Harvest into a media company with global influence.

Since the Hollywood Big Seven can export the values ​​of the United States to the world, we can also export our culture overseas.

And you don't have to worry about it being a thankless task, the domestic entertainment market is growing faster than anyone here can imagine. As the industry leader, Golden Harvest will surely be able to take advantage of the times and rise straight up.

Jiahe’s current revenue is over 50 billion, and in two years it will be able to reach 100 billion. In a few more years, 200 billion will not be a problem.

Of course, the premise is not to mess around in the domestic market. I believe that some of you here are not that stupid.

Therefore, with the support of the domestic market, we should boldly invest overseas and open up channels for cultural communication.

Once we accomplish this, it will not only enhance our influence and status, but also greatly increase our wealth.

Think about the media groups behind the seven major Hollywood companies today, each of which has a market value of tens of billions of dollars.

We at Jiahe should take them as our goal. Our current market value of more than 50 billion RMB is still far from enough.

So we should now forget our past glory and start anew."

Chicken soup and empty promises are indispensable in any company.

However, Liu Zhou was not just saying this for show, but what he really meant. This was what he expected of Jiahe Group.

Now that these senior executives of Jiahe have achieved success and have become financially independent, Liu Zhou is really worried that they will become lazy. He thinks that since the company has already gone public, they might as well enjoy themselves first.

Liu Zhou’s goal was very clear, and he never regarded the listing of Golden Harvest as his ultimate goal.

If a few people can't keep up with his pace, no matter how much they have contributed to Jiahe before and no matter how reluctant he is, he will have to replace them even if it hurts.

Liu Zhou certainly didn't want this to happen. Everyone had a pleasant time working together in the past few years.

So he also expressed his new expectations for Jiahe and reminded them not to rest on their laurels.

Seeing that they were all looking at him seriously, Liu Zhou didn't know whether they had listened to his words or not, but it didn't matter. What was important was what they would do in the future.

"I won't say any more nonsense. Next, let Mr. Zhang talk about the funds we raised this time and the allocation arrangements for the funds."

Zhang Zhao coughed lightly, pondered for a moment and said:
"For this IPO, we issued 7.5% of the total share capital, which is million shares. million of these shares were sold to employees and artists within Golden Harvest at half the price of RMB , raising RMB million.

The remaining 6.5 million were all issued at a price of four pieces, each piece was 26 billion, and a total of 28 billion was raised.

After deducting the issuance fee and taxes of CITIC Securities, the funds we received were around 26 billion.

Adding the operating income from the first half of this year, as well as the revenue from No Man's Land, The Message, and Overheard, the total funds we can use next is conservatively estimated to be 30 billion yuan."

Hearing the figure of 3 billion, Liu Zhou couldn't help but nodded slightly, feeling quite satisfied.

The so-called funds raised through IPO are the number of shares issued by the listed company multiplied by the stock issue price, minus the securities company's issuance fee and some taxes, which is the funds that will deposit into your account after the listing.

As for whether the stock price rises or falls after listing, it has little to do with you. Of course, the premise is that the securities company that listed your stocks has helped you sell them.

If the stock price rises as much as Jiahe’s stock, then the investment institutions or investors who bought the stock will make money.

However, there is no need for listed companies to be jealous. Raising funds through listing is only the first step. Once the stocks are circulated, it will be easier to raise funds in the future.

Moreover, for a film and television company, being able to raise more than 2 billion yuan in funds has already put it far ahead of 90% of listed companies in the country.

There are only a handful of film and television companies in the industry whose market value has reached 2.6 billion.

Now with 3 billion yuan in funds, we can completely make up for the shortcomings of Jiahe Group.

“That’s right, but let me first say that when Golden Harvest acquired Summit Entertainment, it borrowed $200 million from Zhoushan Capital.

I don’t ask for full repayment now, but I have to pay back 500 million first. I need the money, so I can only allocate 2.5 billion.”

"If Mr. Liu hadn't mentioned it, I would have almost forgotten that Jiahe still owes Zhoushan Capital 200 million US dollars. It would be perfect if they could pay back 500 million. I was originally worried that I had too much money and didn't know how to spend it." Zhang Zhao said with a smile.

"So what's your plan?"

"The first is the cinema chain. I have discussed it with Mr. Gao and we are going to invest 300 million yuan to build three luxury cinemas in each of the four first-tier cities of Beijing, Shanghai, Guangzhou and Shenzhen.

Then we will invest another 700 million yuan to build cinemas in second- and third-tier cities, with a total investment of 1 billion yuan, to initially build the Golden Harvest Cinema Line into a large-scale cinema chain covering the whole country."

"Yes, then are you going to start construction all at once, or in batches?"

"We will not have enough manpower if we build them in batches. We are afraid that supervision will not be in place if we build them all at once."

"If this happens, the funds will be accumulated for a long time. You should know that the country has invested 4 trillion yuan in the market, and the money has been depreciating."

"Boss Liu, do you mean to start construction of the planned cinema at the same time?"

"No, since there is no adequate supervision, there is no need to do this. However, we can spend the money first to buy the land or property, and then we can build the cinema later."

"Mr. Liu, if we just buy the land, we may not need 700 million yuan."

“If it is not necessary, then we can expand the scope and look for good locations and buy land in some fourth-tier cities with larger populations or more developed areas, or even county-level cities.

The country has already made the real estate industry a pillar industry, so the price of land will definitely skyrocket in the future.

Money is also depreciating, so we spend the money first and hoard more land, which can save a lot of money in the future.

We are not like Wanda, which has Wanda Plaza. If we insist on directly operating cinemas, we can only buy land now while it is cheap, and then we can build cinemas slowly in the future.”

If cinemas are self-built and directly operated, they will not only be easier to manage, but will also save a huge amount of operating costs in the future.

Why did many cinema companies fail to hold on when faced with the mask incident in later generations, and even Dadi Cinemas almost fell apart, all because of the rental issue.

Rent is the biggest expense in cinema operations, especially in first- and second-tier cities.

If Golden Harvest Cinema Line owns all the properties and land for its cinemas, then no matter what happens in the future, Golden Harvest Cinema Line's ability to resist risks will be greatly enhanced.

What's more, the future appreciation of the land can also feed back to the group company, so that the risk resistance of the entire group will be enhanced.

The only bad thing is that a lot of money needs to be invested in the early stage, and continued investment will be required when building theaters in the future.

However, Golden Harvest is not short of money now, and Liu Zhou firmly believes that the profits of Golden Harvest Group will be able to support the construction of cinemas in the future.

(End of this chapter)