Chapter 26: Dad, You Actually Invested in a Movie?
Compared to his previous experience at Yumin Finance Company, Lin Haoran's latest loan application had gone far more smoothly.
This time, not only had he brought collateral equal in value to the loan he sought, but he had also demonstrated that he had thoroughly planned every aspect of the financing. As a result, Ho Sin Hang found virtually no flaws when assessing the risk.
The entire approval process proceeded with remarkable efficiency, and the funds were transferred much faster than Lin Haoran had expected.
Before leaving, Lin Haoran once again asked Ho Sin Hang to keep everything confidential. Speaking sincerely yet firmly, he requested that the entire transaction remain a secret—especially from his father, Lin Wan'an.
Ho Sin Hang solemnly promised that he fully understood and respected his wishes. He assured him that he would never reveal anything about the loan to anyone, including Lin Wan'an.
Their mutual trust and understanding deepened further because of that promise.
After getting into his Mercedes-Benz, Lin Haoran instructed Li Weiguo to drive back to the Deep Water Bay villa district. He was already looking forward to returning to the peaceful comfort of home and enjoying the upcoming weekend.
As his driver, Li Weiguo had long since become familiar with the route to Deep Water Bay. Without needing any further instructions, he expertly guided the car through the city's busy streets.
Throughout the journey, Lin Haoran paid little attention to the scenery outside.
His thoughts were entirely occupied with his financial plans.
Originally, he had around HK$10.07 million in available capital. With the newly approved HK$30 million loan added, his usable funds had now increased to HK$40.07 million, providing strong financial support for the next stage of his investment strategy.
He silently calculated that with over HK$40 million at his disposal, he could comfortably maintain simultaneous investments in both stocks.
As for Wharf Holdings, he had already invested more than HK$8 million and intended to keep his total investment below HK$30 million.
He understood that once Pao Yue-kong, Jardine Matheson, Hongkong Land, and the other major players intensified their battle for control, Wharf's share price would inevitably continue climbing.
That was why he had already established a strict investment ceiling for himself, avoiding the risk of blindly chasing a rising stock price.
In his opinion, simply securing more than HK$30 million worth of Wharf shares at bargain prices during this struggle for control would already be a tremendous success.
His long-term objective was even more ambitious.
He intended to double his investment through the Wharf shares.
If everything went according to plan, repaying Yumin Finance Company's loan when it matured the following year would be effortless. He might even be able to repay it ahead of schedule and further optimize his financial structure.
As for his remaining funds, he had already decided exactly where they would go—
He would continue increasing his stake in Qingzhou Yingni.
His current 12.9% shareholding was still insufficient to truly control the company.
With Cheung Kong Holdings capable of entering the race at any moment, he felt an increasing sense of urgency.
To secure the initiative in the coming competition, he needed to acquire an even larger percentage of Qingzhou Yingni's shares.
Accordingly, he had already earmarked the rest of his capital for further purchases, determined to claim an even greater share of the spoils in this historic takeover battle where Chinese-owned capital sought to acquire a long-established British-owned enterprise.
Upon returning home, Lin Haoran was surprised to discover that his father, Lin Wan'an, had come home unusually early.
"Dad, why are you back so early today?" Lin Haoran asked curiously.
Normally, if Lin Wan'an had no business engagements, he would return home around seven in the evening.
If he did have social engagements, he often wouldn't arrive until after nine, sometimes even past ten.
Yet now, the wall clock had only just struck 5:30 p.m.
For Lin Wan'an, such an early return was almost unheard of.
Naturally, Lin Haoran was both surprised and curious, and countless possibilities crossed his mind.
"I've got a movie celebration banquet to attend tonight. It starts at seven. I came back early to change into something more appropriate. Haoran, why don't you come with me? You'll get to meet more people from the business world—it'll be good for your future," Lin Wan'an replied warmly.
"A movie celebration banquet? Dad... you actually invested in a film?" Lin Haoran asked in astonishment.
"Haha, just a little side investment," Lin Wan'an chuckled.
"I invested HK$200,000 under my own name and took a 30% stake. The movie has been in theaters for exactly one month now, and its box office has already exceeded HK$2.5 million.
"I didn't make a huge profit. The main reason I invested was to support a few old friends. Besides, it's a nice little hobby."
What Lin Wan'an said was entirely truthful.
The profit he described was a very realistic estimate.
A box office of HK$2.5 million might not sound impressive, but for this era, it was already considered fairly successful.
However, according to industry practice, films first had to pay a 15% entertainment tax, while theaters kept 47% of the ticket revenue.
The investors generally received less than 40% of the box office.
Even assuming they received the full 40%, that would amount to only around HK$1 million.
Since Lin Wan'an personally owned 30% of the investment, his final share would only be approximately HK$300,000.
Having invested HK$200,000 and earned roughly HK$100,000 in profit, the return on investment appeared respectable.
Yet given the relatively modest box office, such earnings were clearly far from enough to fulfill dreams of becoming rich overnight, especially considering the substantial costs involved in film production and distribution.
Low-budget films could certainly become unexpected hits through strong word of mouth and creative storytelling.
But behind every success were countless productions that disappeared into obscurity, ultimately losing money for a variety of reasons.
More importantly, Hong Kong's film market was relatively small, severely limiting the industry's profit potential.
For example, this year's highest-grossing film in Hong Kong had earned only a little over HK$7 million at the box office.
For anyone hoping to build a fortune solely through filmmaking, that reality was a sobering challenge.
Even industry giants such as Shaw Brothers and Golden Harvest, despite their vast resources and dominant market positions, still earned relatively limited annual profits compared to many other industries.
Because of this, ever since his rebirth into this world, Lin Haoran had fully understood the economics of the entertainment business.
He had never intended to devote much of his attention to such an unpredictable industry.
In his eyes, the stock market's enormous opportunities, the steady appreciation of real estate, the prosperity of import-export trade, and the solid foundations of manufacturing were the true roads to building a business empire.
As for making movies—
That would be nothing more than an occasional pastime.
A glamorous diversion capable of earning applause for a while, perhaps, but hardly something worthy of anchoring the grand commercial empire he envisioned.
"Alright, Dad. I'll go change into something appropriate, and then I'll accompany you.
This celebration banquet sounds quite interesting—I wouldn't mind seeing what it's like," Lin Haoran said with genuine interest.
(End of Chapter)
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