Chapter 194: Rolls-Royce
There seemed no need to say more. Li Xingguo suddenly understood—going through all those twists and turns was just to make them realize that production costs couldn’t be cut. At that moment, Wei Dongling smiled again and walked over to Xiao Ran, sitting down as he said, “Actors’ salaries are the main expense. If they don’t account for a certain proportion of the production costs, it means they’re taking up space in those costs, leading to situations like those at Shaw Brothers.”
It was explained so clearly that if anyone still didn’t grasp the meaning, they really shouldn’t be alive. Yet Yang Qi still asked doubtfully, “Why is it a 1:4 ratio? This will reduce our profits!”
Xiao Ran met Yang Qi’s gaze and smiled lightly, “Do you think movies are necessarily a highly profitable industry? That’s because we don’t have any competitors yet. If we don’t reduce profits in advance to improve ourselves, how can we compete with Hollywood? Don’t forget—Hollywood’s big productions cost hundreds of millions of Hong Kong dollars. Can we afford that?”
“The 1:4 ratio is one we’ve determined after investigation, as it fits the current situation best.” Wei Dongling’s smug expression was truly infuriating. Xiao Ran even wanted to stamp his face. “If everyone agrees, we can raise it to 1:5—we certainly won’t mind!”
“I accept!” Pan Disheng gritted his teeth. As an ally of Phantom, he wasn’t too worried about pressure from Xiao Ran. But whenever he thought of the 80 million yuan Wei Dongling had mentioned earlier, he still felt the aftereffects. If Debao didn’t step up its efforts, Phantom would dominate the market in the future.
“We all accept!” Li Xingguo and the bosses of the other companies nodded in agreement. After all, those sitting here weren’t fools. “President Xiao, you decide!”
Yang Qi shrugged at Xiao Ran and spread his hands in resignation. Imitating Xiao Ran’s gesture made Xiao Ran laugh. Yang Qi’s reasoning was the same as Pan Disheng’s, but since he had already tasted the benefits of making movies last year, he was determined to improve Tianluo Company.
Only Zou Wenhui hadn’t expressed his opinion. Xiao Ran didn’t look at him either. After waiting ten seconds with no response, Xiao Ran frowned. Did Jiahe really have to go against him?
If that was the case, the plan Xiao Ran had devised earlier would come in handy. The land at Axu Mountain Studios owned by Jiahe actually didn’t belong to them but was rented from the Hong Kong-British government. Historically, Jiahe had declined, and as a result, the land was taken back. The annual rent for that land was no small amount. Jiahe had also borrowed heavily from banks and Mitsubishi Corporation of Japan, plus having a listed company. Although their debt wasn’t high, knocking them down wasn’t particularly difficult.
It was just that Xiao Ran didn’t want to crush a company with great potential. However, if Jiahe really wanted to test his patience, he knew he wouldn’t hesitate to use tough measures. Yes, tough measures—this was Xiao Ran’s strategy to dominate Hong Kong’s film industry. Only by using force to subdue various companies and letting the entire industry taste success could they wholeheartedly follow Phantom’s lead.
After waiting a few more seconds and seeing that Zou Wenhui had closed his eyes and said nothing, Xiao Ran and Wei Dongling exchanged a look, both wearing amused smiles. For others, this was clearly a terrifying situation—Jiahe was one thing, but Shadow couldn’t afford to offend.
Nodding at Wu Siyuan, Xiao Ran and Wei Dongling stood up at the same time and announced on behalf of President Wu Siyuan, “Today’s meeting is over. Everyone may go back. As for the matters discussed today, we’ll assign people to discuss them further!”
Zou Wenhui suddenly opened his eyes and glared resentfully at the retreating figures of Xiao Ran and Wei Dongling. They had declared the meeting over as if he didn’t exist—this was outright humiliation. He Guanchang sighed inwardly. It was no fault of Xiao Ran’s; since Old Master Zou himself wouldn’t give Xiao Ran face, how could others?
Everyone in the circle knew that Xiao Ran was the kind of person who would return you a foot for every inch you showed him. As things stood, Jiahe would sooner or later clash with Shadow. But He Guanchang couldn’t even imagine what the outcome of that confrontation would be.
Xiao Ran and Wei Dongling didn’t leave right away but waited at the door for Pan Disheng and Yang Qi. After inviting the two into Wei Dongling’s extended Rolls-Royce, Xiao Ran cheerfully took glasses from the bar and poured them some wine, saying with emotion, “It’s only today that the Film Association has truly started to play a role!”
“Are you kidding me? Treating me like I don’t exist!” Wei Dongling complained as he fetched a glass and poured himself some wine, leisurely crossing his legs and enjoying it—he loved this feeling.
But Xiao Ran didn’t like it. Though the car was a gift from Lin Qingxia, it had cost him a fortune. Yang Qi glanced at it in surprise and exclaimed, “A Dong, when did you buy such an expensive RV? Truly worthy of being a high-ranking big shot among the ‘diamond bachelors’!”
Xiao Ran snorted coldly, poured himself a glass of water, and then complained indignantly, “A Qi, you have no idea. You’re not just sitting in a car—you’re sitting on piles of money!”
Xiao Ran’s whining expression was quite funny, making the two burst into laughter. Wei Dongling instructed the driver to drive off, then pretended to be surprised and said, “Don’t you know money is meant to be used to sit in cars? I’ve never seen a rich guy as stingy as you, with only one car!”
Speechless! Xiao Ran was utterly speechless. Theoretically, Lin Qingxia had three cars, and including his own BMW, that still didn’t count as one. But clearly, he only owned that one car he bought himself—no wonder Wei Dongling, who was part of the car-loving crowd, often teased him.
Pan Disheng smiled casually. He always found Xiao Ran a strange person—sometimes so cheerful it was unbelievable, other times eerily gloomy. In terms of company affairs, they each did their own thing, but their personal relationship was quite good—such were the rules of the business world.
While joking with Wei Dongling, Xiao Ran suddenly said cheerfully, “Have you ever thought about forcing Jiahe to surrender?”
Yang Qi and Pan Disheng were both stunned, immediately becoming wary. If Xiao Ran intended to use them to drive Jue Jiahe out of the way, it would be effortless for him to deal with them afterward. Xiao Ran smiled gently, casting a sincere gaze into their eyes: “Jiahe’s existence has indirectly slowed down the development of Hong Kong cinema. If we want to make a mark in the Western market in the future, Jiahe will definitely pose a threat.”
Yang Qi and Pan Disheng fell silent. Even if they were stupid, from Zou Wenhuai’s behavior today, they could tell that Jiahe’s dissatisfaction with Meiying had reached a boiling point. If left unchecked, it might indeed hinder the development of Hong Kong cinema. Yet, they didn’t want Xiao Ran to monopolize the Hong Kong film market either.
“Tianluo Company is currently valued at 1.2 billion, while Debao is valued at 1.4 billion,” Xiao Ran glanced at Wei Dongling, who was listening attentively nearby, before calmly asking, “When do you think you’ll have the strength to expand overseas?”
Yang Qi and Pan Disheng’s expressions darkened. A fortune of over a billion was impressive anywhere, but in the film industry, it wouldn’t allow them to achieve much. At this pace, it would be very difficult to expand overseas within three to five years.
“I’m not trying to drive Jue Jiahe out; I just want it to be unable to hold us back anymore. I don’t want any internal problems to arise later,” Xiao Ran said, his gaze suddenly sharp as a blade. “If you want to enter the overseas market, you must take certain risks.”
Did Xiao Ran really need these two helpers to deal with Jiahe? Of course not. But since they were his allies and friends, acting without informing them first might damage their future relationship. Besides, Xiao Ran hadn’t really planned to do anything to Jiahe—first, because Jiahe was already declining; second, because he didn’t have a good excuse; third, because he didn’t want conflicts with Cheng Long and the others over this.
Yang Qi and Pan Disheng clearly realized this and quickly forced smiles. Did Xiao Ran even need to tell them what he was doing? Still, the shadow of Meiying’s market monopoly loomed over them, as Meiying was currently far too powerful.
“I know you’re worried about Meiying, but you should know that my goal isn’t monopoly—it’s to make Chinese cinema dominate the world,” Xiao Ran sighed softly. Why did no one believe him when he spoke the truth?
“What Aran said is true. With Meiying’s current strength and no debts, a semi-monopoly situation is inevitable!” Wei Dongling explained for Xiao Ran. “But Meiying will definitely be the leading group, while we all hope Debao and Tianluo can become the second group. This requires a tiered approach to steadily steer the film industry in the direction we need!”
“Actually…” Yang Qi couldn’t help shaking his head. He agreed with Wei Dongling’s view—they really couldn’t surpass Meiying. Just Meiying’s working capital was more than their company’s total value. Moreover, Meiying had no financing issues and had paid off all its loans, so it wasn’t afraid of being attacked. In short, it was extremely difficult to undermine Meiying’s foundation.
Given that Phantom’s business is scattered, it’s extremely difficult to establish a core business centered on movies and investments that can be easily overwhelmed. Moreover, Phantom doesn’t even have a listed company, making acquisitions challenging. Strictly speaking, even if Superman himself took on such a “turtle-shell” company, it might not be enough to weaken it significantly.
“Actually, Phantom’s business has grown too large now, as you all know. It’s hard for us to feel at ease!” Yang Qi spoke openly, frankly expressing his concerns: “As you all know, if they really wanted to force us out, it wouldn’t be difficult at all!”
Xiao Ran and Wei Dongling were instantly stunned—indeed, they did have such plans. Of course, they were just plans. Xiao Ran had investigated the strength of all the film companies in Hong Kong and then devised targeted strategies to counter them, so as to avoid panic later on. Deppao and Tianluo were no exception.
This was also why Xiao Ran believed Jihe was vulnerable—Phantom was already prepared to fight at any moment. Although Yang Qi was unaware of this plan, hearing it spoken aloud still left Xiao and Wei somewhat awkward.
Xiao Ran rolled his eyes and couldn’t help but laugh loudly, pointing at Yang Qi: “If you already know it’s easy for Phantom to force you out, yet you’re still fine now, that might prove I have no ill intentions toward you!”
Pan Disheng thought to himself that this was indeed true. If Xiao Ran had intended to monopolize Hong Kong, he could have done so last year without needing to let them stay. But Yang Qi was too suspicious. “Who knows what you’re up to? Maybe you’re trying to gain some advantage from us!”
Xiao Ran and Wei Dongling felt helpless, shrugging and waving their hands instinctively: “I’ve said it—my ambitions are global. If you don’t believe me, there’s nothing I can do!”
Really nothing? That’s nonsense. If Yang Qi and Pan Disheng really tried to hold him back, he would surely eliminate those two companies first and support others instead. Don’t think Xiao Ran has no plans—Meiya is a company worth supporting.
“After talking so much, I’m sorry to have troubled you,” Yang Qi said suddenly with a sly smile, swirling the wine in his glass. “Why shouldn’t I believe you, Old Pan? Why shouldn’t I believe him?”
Xiao Ran couldn’t help but breathe a sigh of relief. Yang Qi and Pan Disheng were still very skilled in business; otherwise, they wouldn’t have built up their businesses to what they are today. If he were to destroy two powerful allies like this, Xiao Ran would surely regret it.
Pan Disheng smiled. He had always maintained a cautious yet cooperative attitude toward Phantom. As for Xiao Ran, he regarded him as a friend. However, he understood Xiao Ran’s real goal of forcing industry actors’ salaries and production costs to reach a certain ratio—indirectly raising the average production cost in the industry!
He came to this conclusion after connecting it with rising actor salaries. Based on a simple principle: actors’ salaries couldn’t be suppressed, and with Xiao Ran’s mandatory requirements, it meant that the average production cost of a film in the coming year would be as high as 10 million to 20 million.
Meanwhile, Phantom is constantly updating the industry’s pay rates; today, the highest-paid director earns as much as 1.2 million, breaking previous records once again. This means that Xiao Ran controls the production and investment standards across Hong Kong. Coupled with actors and staff who are drawn to Phantom, it must be admitted that Phantom already possesses all the conditions for a monopoly.