Chapter 337: The New Film Studio Project
Zou Wenhuai was visibly surprised after hearing Yang Wendong's words. "Yang Sheng, building a theater chain in Southeast Asia... the costs must be unimaginable."
"I know," Yang Wendong replied with a nod. "Which is why this will be a long-term plan."
In this era, while Hong Kong's economy was developing at a decent pace, it still lagged significantly behind Western countries—and nowhere near the level it would reach twenty years later. Even the top-tier financial groups in Hong Kong couldn't afford to launch massive overseas cinema investments.
But Yang Wendong knew the future. Give it another decade, and with the explosion of Hong Kong's real estate industry, the wealth of Hong Kong conglomerates would skyrocket. Their scale would expand rapidly.
Even more importantly, Southeast Asia in the 1970s and 1980s would resemble Hong Kong in the 1950s and 1960s—ripe for investment. Investing in property there would allow them to ride the wave of Southeast Asia's economic growth. Kill multiple birds with one stone.
Still, the investment would be massive, and it would have to be taken step by step.
Zou Wenhuai added with a note of caution, "Yang Sheng, investing in fixed assets in Southeast Asia isn't just about money. You'll need strong local connections, too. Without that, competing with native conglomerates will be very difficult.
Even the Shaw family only secured their position in the region after decades of operation."
Yang Wendong laughed. "Don't worry. I won't go in alone. I'm not foolish—I know that even the strongest dragon can't suppress a local snake on its own turf."
Even America at its peak, when its military dominated the globe, couldn't shield its companies from being gouged by local governments and enterprises when investing abroad. Just look at India.
And no matter how powerful the U.S. military was, it wouldn't step in to support companies unless national strategic resources were involved—like oil or minerals.
In his past life, one reason China became an industrial superpower was because of its strong foundation in heavy industry, a well-educated labor force, and unmatched infrastructure. But just as critical was the central government's strict policy forbidding the exploitation of foreign capital—building trust and attracting long-term investment.
"That's the right approach," Zou Wenhuai smiled. "I was overthinking it."
Yang Wendong continued, "I'll take care of the commercial investments. But as for running the film side of things, I'll need your expertise. I hope you'll join us and help make Hong Kong cinema number one in Asia. That's my goal."
"Number one in Asia…" Zou Wenhuai fell silent. That ambition—too bold, too tempting.
Yang Wendong added, "As for your compensation, I'll offer you three times your current salary at Shaw Brothers, plus a generous annual bonus. If you achieve great results, your compensation will rise accordingly.
I keep my word—and if you don't believe me, feel free to ask around about how I treat Changxing Group's senior management."
A large conglomerate had its own internal salary structure—compensation was tied to position and market conditions. This stability was crucial for retaining top talent.
Even though Zou Wenhuai's salary at Shaw Brothers was comically low, Yang Wendong wasn't about to nickel-and-dime him. Saving a few thousand dollars a month was meaningless when the right leader could generate a hundred—or a thousand—times more in return.
Zou Wenhuai smiled. "Yang Sheng, I believe you."
Frankly, it was only Shaw Brothers that was this absurd. In any other company of similar scale, someone at his level would easily be making HKD 70,000 to HKD 80,000 per year.
But Hong Kong only had two major film companies. Cathay was tightly controlled by the Lu family—no room for outsiders. Talents like Zou Wenhuai and Lee Han-lim had nowhere to go, stuck at Shaw Brothers unless they struck out on their own.
"Can you decide now, or do you need to go home and think about it?" Yang Wendong asked.
"I..." Zou Wenhuai hesitated. "Yang Sheng, may I borrow a phone? I'd like to discuss it with my wife."
"Of course." Yang Wendong waved over his assistant, who had been waiting nearby. "Take Mr. Zou to the meeting room to make a call."
"Right this way," the assistant said politely. "Mr. Zou, this way please."
A while later, the assistant brought Zou Wenhuai back. "Yang Sheng, I've made my decision."
"Great," Yang Wendong said. "I'll have our HR department contact you about onboarding." He then turned to Zhang Zhiyuan, "You can also coordinate with Mr. Zou on the overseas distribution matters."
"Understood." Zhang Zhiyuan stood up and extended his hand. "Mr. Zou, I look forward to working with you."
"The pleasure is mine," Zou Wenhuai replied with a smile.
Yang Wendong continued, "Mr. Zou, while Calabash Brothers hasn't been pulled from theaters yet, the box office numbers have stabilized. It's time to begin negotiating overseas distribution.
You'll need to leave Shaw Brothers soon. If there's any delay, you can start advising part-time—same salary, of course."
"No problem," Zou Wenhuai agreed.
"Then it's settled." Yang Wendong smiled. "Once you're officially on board, we'll proceed with launching Changxing Film."
Without a capable leader, Yang Wendong never rushed to form new companies. At most, he'd dabble in the relevant industry first. This first Calabash Brothers movie had served two purposes: building an IP and laying the foundation for the new film division.
As for managing the future film company, Yang Wendong wasn't particularly concerned. Laying the foundation was enough—for Hong Kong cinema to take off, they would have to wait until the late 1960s. And that still required one key figure.
April 15 — Shaw Brothers Studios, Clear Water Bay
"You're resigning?" Run Run Shaw stared at the resignation letter in disbelief. "Why?"
"Not enough money," Zou Wenhuai answered bluntly. It was an argument no one could refute.
"..." Run Run Shaw was speechless for a moment. Then he said, "Raymond, everything is negotiable. Shaw Brothers is thriving—we need people like you now more than ever. Why throw that away over something so minor?"
"It might be minor to you, but not to me. I'll be gone in a week." Zou Wenhuai couldn't be bothered to argue.
This wasn't the first time he'd discussed his pay—and it wasn't just him. Many others had done the same. The outcome was always the same: nothing.
"You're starting your own company? Do you have the capital for that?" Run Run Shaw asked.
"That's none of your concern." Zou Wenhuai didn't even look back. "I'll have all my materials organized as soon as possible."
"..." Run Run Shaw's expression turned dark.
This kind of sudden and final break—it could only mean something major had happened.
April 22, Monday — Zou Wenhuai Officially Joins Changxing Group
On the day of his arrival, Yang Wendong immediately authorized him to establish Changxing Film Company, transferring control of 25 theaters from Changxing Real Estate to the new entity. Only the cinema within Changxing Commercial Plaza remained under Real Estate's jurisdiction.
Zou Wenhuai immediately began negotiations with overseas distributors, aiming to sell Calabash Brothers to international markets.
April 26 — Changxing Headquarters
Zou Wenhuai and Zhang Zhiyuan arrived at Yang Wendong's office.
"Come, have a seat," Yang Wendong greeted them with a smile.
"Thank you, Yang Sheng," said Zou Wenhuai. "We've finalized foreign distribution deals in four Southeast Asian countries. Here's the pricing breakdown."
"Oh? That was quick," Yang Wendong said, a little surprised.
"The price is usually based on the film's domestic box office, with a conversion ratio for each country," Zou Wenhuai explained. "They also look at the film company's track record. We don't have one, so they calculated it as a 'new film'—Zhang Sheng had already laid a lot of groundwork, I just made some adjustments."
Zhang Zhiyuan added, smiling, "Zou Sheng is being modest. In just a few days, he raised prices by 20%—something I couldn't do in over two weeks."
Zou Wenhuai replied, "That's because of Yang Sheng's reputation. These foreign partners know his name. With Changxing Group entering the film industry, they're factoring in the potential for long-term collaboration. That's why they were willing to make some concessions."
"Alright, enough praise. You both did great," Yang Wendong said as he scanned the price list. "Twenty thousand Hong Kong dollars across four countries... If this were a Shaw Brothers or Cathay film, how much would it fetch?"
"Based on the domestic box office, around HKD 250,000 to HKD 300,000," Zou Wenhuai said. "We're a new company, and this is an animated film. Naturally, buyers are more conservative. If it weren't for the Changxing name, we might not have hit even HKD 200,000."
"Understood. Let's go ahead and sign with these four," Yang Wendong said. "Once the performance numbers come in, we can approach the other countries."
Foreign rights weren't sold all at once. With so many countries in Southeast Asia, each had different standards. Sometimes it took over a year to fully sell a film's foreign rights.
In an era where information moved slowly, even Hollywood films weren't released simultaneously across the globe. Unlike in Yang Wendong's past life, where global premieres were standard.
"Understood," Zou Wenhuai said. "Other distributors will wait to see how these four perform before making decisions."
"Alright. Let's consider Calabash Brothers' foreign distribution settled." Yang Wendong then asked, "How's Changxing Film coming along?"
"It's fully registered, and we've taken over the theaters from Real Estate," said Zou Wenhuai. "We're also recruiting staff, including actors. But we do have one issue—filming locations."
"Filming locations?" Yang Wendong asked. "You mean studio lots?"
"Yes," Zou Wenhuai said. "Most of the films being shot now are period pieces or set in recent historical eras. Dedicated sets are a must. Shaw Brothers has a massive studio base in Clear Water Bay. Cathay has one in Taiwan."
"What about the smaller studios?" Yang Wendong asked.
"They either rent from Shaw Brothers or lease some barren land and build temporary sets," said Zou Wenhuai. "Either way, the cost is extremely high."
"So, you're suggesting we build our own studio?" Yang Wendong asked.
"Yes," Zou Wenhuai replied. "We're aiming to become a major studio. That means we need control over every link in the chain. Without our own studio lot, just like with theater chains, we won't be able to grow."
"Alright. I approve it," Yang Wendong nodded, then turned to his assistant. "Call Zheng Zhijie in here."
Thank you for the support, friends. If you want to read more chapters in advance, go to my Patreon.
Read 40 Chapters In Advance: patreon.com/johanssen10