Chapter 204 Use of the 1 Billion Loan
Chen Lin either doesn’t lend, but he will lend 1 billion yuan.
Logically speaking, Yuhuang Entertainment Group has abundant funds and has nearly 400 million cash on its books, so there is no need for a loan.
Yes, the company has more than enough funds for normal development, and it makes profits quickly when filming TV series and recovers funds quickly. It is also possible to raise funds from the outside world without any shortage of funds.
The real reason is that after the New Year, Chen Lin made several big moves and big projects were going to be carried out, which led to financial tightening.
The first big move is that in 1999, Jade Emperor TV Production Co., Ltd. plans to shoot 12 TV series, including "Xiao Bao and Kangxi" being prepared, as well as the five dramas being filmed, and "Story of the Cooking Class 2" which will be released next year. There will be more than 560 TV series released this year.
With more than 560 episodes of 19 TV series, the total investment is between 260 and 300 million. With such a large number of filming and investment, Yuhuang TV will definitely surpass Hairun and become the largest private TV production company in China.
The number of films is so large, so many films need to be promoted. The release is not just about investing money, but the biggest constraint is people. Currently, the company has four dramas such as Prince Turning into a Frog, "Dolphin Bay Lovers", "Like Fog, Rain and Wind", and "Bright Sword" that have started filming at the same time, which has reached the limit of the company. The four crews have consumed all the talent reserves of the group.
Fortunately, "Iron-Toothed Ji Xiaolan" and the Korean version of "Meteor Garden" were co-production, otherwise they would have to die. "Xiaobao and Kangxi", which was originally planned to be launched this month, had to be delayed due to personnel constraints.
Having said that it is already an amazing achievement for Jade Emperor Entertainment to be able to cultivate 4 mature TV drama teams in just one year.
A company has four teams and strengths. However, Chen Lin's ambitions are more than that. He wants to be a domestic no.1. The ideal goal is to maintain 8 teams, each team has its own expertise. Some are good at modern idol dramas, some are good at costume idol dramas, some are good at martial arts dramas, some are good at military dramas, some are good at comedy, and some are good at urban life dramas, etc.
If you want to increase your strength sharply in a short period of time, the fastest way to build 8 teams is of course to acquire other companies. Yuhuang Group has tasted the sweetness of acquiring Tangren Film and Television. This time, Chen Lin’s acquisition target was aimed at Xiaoma Penteng, a company that is not under Yuhuang Television.
Xiaoma Pentium Film and Television Culture Co., Ltd. is worth about 1 billion yuan. Chen Lin evaluated that if he wanted to acquire this old film and television company, he would have to prepare at least 300 million to 500 million in cash. The others are of course equity replacement.
In 1999, Royal Court Cinema will also usher in great development. Within one year, it will open 45 large Royal Court Plazas integrating movie entertainment, supermarket shopping and leisure squares.
There are 45 Royal Plazas, each of which covers an area of more than 10,000 square meters. If placed in 2013, it will require at least 10 billion yuan of investment funds, but in 2019, it only requires -3 billion yuan of funds. The main reason is that the land is too cheap these days.
To be honest, if Chen Lin just wants to make money, he can shoot some TV and just buy real estate. Then he can travel around the world without worrying about anything.
But this is too irresponsible.
A 1 billion loan will be allocated 400 million yuan to Huangting Cinema Co., Ltd., and the real estate industry can make money by itself. With this 400 million yuan, it is enough to achieve the annual construction target.
The so-called "making money out of nothing" means that you can buy a piece of land by paying a part of the deposit, and then mortgage the land to the bank for a loan, and then use the bank's loan to capture the second land. Of course, the second land is the same thing. At the same time, the construction of the first land is contracted to the construction company, and the construction company will first provide the construction. In this way, 400 million funds can be used as 3 billion.
500 million of the 1 billion will be reserved for the acquisition funds of Yuhuang Group, and the remaining 100 million will be given to Pentium Technology.
The past year has been a year of land development for Pentium Technology, and there are three things worth mentioning.
The first thing was that on September 7, 1998, China Pentium Technology, together with Stanford University's Larry Page, Sergey Brin, two students, jointly founded the "Google-Pentium" Internet Technology Company, which focuses on interconnected search services.
China Pentium Technology spent 1 million US dollars to occupy 70% of the company's equity, Larry Page, Sergey Brinn, two of them invested in technology to hold 30% of the shares. The new company was registered in Silicon Valley, USA.
The second thing is that at 1:00 a.m. on July 30, 1998, the registered members of QQ reached a historical surname - 1 million.
The third thing was that the English version of QQ was officially released in August 1998, and the first overseas server of QQ was officially launched in Silicon Valley, USA on August 25.
After 98 years of land reclamation, Pentium Technology will usher in great development in 2000. His requirements for Pentium Technology are to expand, expand, and expand again. QQ will gain a stable foothold in major countries around the world within two years and survive.
So Chen Lin told Ma Teng and Guo Bin that there were only two words in the next two years - burning money. In two years, he prepared 1 billion yuan for them to burn, and this 100 million yuan was just the first batch of funds.
With the instructions of two provincial leaders, the bank approved a loan of 1 billion yuan the next day, and the funds had already arrived at the Yuhuang Company's account.
The loan matter has been solved. The most important thing is that the loan interest rate is extremely low, with a 5-year interest rate of only 4%. The interest rate for general enterprises with more than 5-year loans is above 6.55. It is just that if Chen Lin transferred the money to other companies now, the interest rate difference alone could make about 30 million yuan a year.
This is the preferential policy for five-star celebrity companies to enjoy. Chen Lin was very happy and toasted with his wife in the office with drinks instead of wine.
Just when I was happy, Chen Lin's cell phone rang, it was the phone number of producer Pan, a crew member of "Bright Sword".
The crew had an accident. Sun Honglei was crushed by a collapsed wall in a blasting scene. Fortunately, another actor, Wang Bo, pulled him in time when he saw something was wrong, otherwise Honglei would not have been injured.
"Wife, Honglei is injured and I will visit him and visit the crew."
"Okay, go, I'll accompany you home to pack your luggage."
Chen Lin could not sit still after knowing that Sun Honglei was injured. After asking for his wife's consent, he immediately went home to pack his luggage. He took a plane to Shan*xi Taiyuan that afternoon. He stayed in Taiyuan for one night and arrived at Shan*xi Pingyao the next morning.
The car stopped at the entrance of a hospital in Pingyao. As soon as Chen Lin got off the car, he saw Wang Bo, Zhang Lei, and producer Pan walking towards him.
"Chairman, you have worked hard all the way." Producer Pan greeted Chen Lin when he saw him.
"Haha, it's okay." Chen Lin smiled and asked, "How is Honglei's leg injury?"
"It's not a big deal now. I've been cast and I can walk in half a month." Producer Pan laughed. At this time, Wang Bo added: "Mr. Kobayashi, you're here just in time. Honglei thought the hospital was too boring and was clamoring to be discharged from the hospital and go back to the crew."
Chapter completed!