Looking back on 2007, Wang Zhongjun said that he felt extremely
happy. China has witnessed flourishing development during the past
seven years, but not everyone was able to catch the tide.
"Fortunately, Huayi Brothers seized their chance," said Wang, the
group's president, contently.
In 1998, the year that Chinese entertainment market finally
began normal operations, Wang made his first investment in the
movie industry. After a decade of dedicated efforts, Huayi Brothers
has managed to grow from a private business into the largest media
company in China. Now the conglomerate is preparing for its debut
in the public stock market. If it succeeds, the Chinese
entertainment market will enter a new phase of development.
Huayi Brothers boasted steady progress in recent years. For
Wang, however, there is still more potential to be tapped. With the
largest talent pool, the company is undoubtedly at the top of the
Chinese movie industry. In 2005, it began exploring new frontiers
by investing heavily in various TV series. Two years later, Wang
reaped a bumper harvest with Soldiers Sortie gaining
rapturous applause. In addition, Huayi Brothers is now collecting
talented singers, producers, directors and even scenarists, in
addition to film and TV stars. "A bright future lies just in front
of us," said Wang delightedly.
In 2005, Huayi Brothers led the rest Chinese entertainment
companies in raising funds through private equity. Within two
years, Jiang Nanchun and Ma Yun, both on the list of top 25
influential Chinese entrepreneurs, became shareholders of Huayi
Brothers. They brought the media conglomerate not only money, but
also brand recognition. "Their high profile is a constant promotion
of our brand name," said Wang.
This year, Huayi Brothers underwent a drastic change, with its
business being restructured into two major parts: video production
and related products, and celebrity services and related products.
While aiming at a much larger talent pool and production scale,
this is also a necessary move for the future listing on the public
stock market.
In the past three years, Huayi Brothers has witnessed steady
profit growth rates ranging between 50 percent and 80 percent every
year. Although project budgets remain the same, the investment
scale has been largely enhanced. When Kung Fu Hustle was
shot, Huayi Brothers only contributed 5 percent of the total
investment. Last year, however, Wang Zhongjun became the sole
investor of The Banquet and his company is the only
copyright owner of such box office winners like the
Rob-B-Hood and Battle of Wits. "This is a
remarkable change," said Wang cheerfully. "We used to have great
difficulty getting loans, but now we have opened more funding
channels. This guarantees smooth business operations."
When recalling initial hard times, Wang admitted that he was lucky.
But more importantly, he said, was that he had always worked hard
to establish a brand, which eventually led to his success. "In
recent years, despite the sluggish environment of the entertainment
market, we made great efforts to build up our company reputation.
When we borrowed money to produce films, we paid back the loans
strictly in accordance with the contract, even if we suffered great
financial losses in production. Truthfully, company fame has
brought us amazing benefits. Today, our shareholders are delighted
to invest with us. Banks are confident offering us loans. If a
company enjoys a smooth capital turnover, there is nothing to block
its way to a brighter future."
In Wang's opinion, currently, his company has no contenders in
the Chinese market. "We are the first to raise funds in the stock
market, the first to offer commission services, the first to enjoy
sole ownership of a music company, the first to engage in mergers
and acquisitions, and even the first to announce that we will be
the Chinese 'Time Warner'." But the movie market will not be
monopolized. "It will be more exciting when more competitors crop
up," he added. For Wang, faithful teamwork has contributed greatly
to the company's success. "Feng Xiaogang worked with us eight
times. In China, it is really rare for a movie company to maintain
close and regular cooperation with such a famed director. Many
employees have worked for Huayi Brothers ever since the company was
founded."
Because Huayi Brothers is a family business, Wang Zhongjun's
future plan asserts that it is important to reduce family influence
and control. "Ma Yun set a good example for me. His listing on the
stock market has churned out some 20 billionaires and more than
4,000 millionaires. An entrepreneur should be as open-minded as
him."
All Chinese movie companies cherish one common dream when they
grow stronger: to extend their business into the fields of cinema
operation. Wang Zhongjun is of course no exception. But he concedes
that the cake in the film market is too big. Wang even has plans of
providing services for sport stars. In his eyes, all people engaged
in cultural activities can be regarded as artists and they have a
strong demand for professional service. There is more than ample
space for Huayi Brothers to expand.
Compared with other industries, however, Wang admitted the
entertainment industry is still quite green in the capital market.
He enjoys great fame only because his name is often associated with
stars. It is obvious that his strength is still limited as compared
with other entrepreneurs. "I'm working hard to prove myself in the
entertainment industry, and I'm trying my best to prove that this
industry also has a promising future," said Wang resolutely.
Assembly, the blockbusting movie Huayi Brothers
released nationwide recently, fills Wang Zhongjun with confidence.
"For us, 150 million yuan (approximately US$20 million) is the
worst box office take. We're hoping for 200 million yuan."
(China.org.cn by Chen Xia, January 7, 2007)
