Chapter 26: Daddy, you actually invested in a movie?

Compared to his previous ordeal at Yumin Finance, Lin Haoran’s latest loan experience was undoubtedly much smoother. Not only did he bring collateral of equal value, but his thorough deliberation and comprehensive preparation left He Shanheng with almost no flaws to critique during the risk assessment. Consequently, the entire loan process proceeded exceptionally well, and the funds were in place far sooner than Lin Haoran had anticipated.

As he was about to leave, Lin Haoran once again requested confidentiality from He Shanheng. His tone was sincere and firm, expressing his hope that He would strictly guard this secret, especially from his father, Lin Wan’an. He Shanheng gave a solemn promise in response, stating that he fully understood and respected Lin Haoran’s wishes and would never leak news of this transaction to anyone, including Lin Wan’an. The mutual understanding and trust between the two were further deepened at that moment.

Settling into his Mercedes, Lin Haoran leisurely instructed Li Weiguo to drive toward the Deep Water Bay villa area, eager to return to the quiet comfort of his home and enjoy the upcoming weekend. As his driver, Li Weiguo was already well-versed in the route to Deep Water Bay and, without needing further instruction, steered the car steadily and swiftly through the city’s veins.

Along the way, Lin Haoran’s attention was not drawn to the scenery outside; his mind was deeply immersed in planning his capital operations. With the injection of the 30 million HKD loan into his existing 10.07 million HKD of liquid capital, his total funds had climbed to 40.07 million HKD, providing a solid foundation for his subsequent investment plans. He calculated that with over 40 million HKD, he had enough to support his ambition of investing in two stocks simultaneously.

Regarding his position on Wharf, he had already invested over 8 million HKD and expected to keep the total investment under 30 million HKD. He knew that as the market fluctuated, particularly with the intervention of giants like Pao Yue-kong, Jardine Matheson, and Hongkong Land, the share price of Wharf would inevitably rise. Therefore, he had already set an upper limit on his input to avoid the risks of blindly chasing highs. In his view, successfully securing over 30 million HKD worth of low-priced Wharf shares in this capital game was already a rare achievement. His long-term goal was to use these funds to double his returns on the Wharf investment.

Once successful, he would easily meet the repayment pressure of the Yumin Finance loan due in a year and might even be able to plan ahead to further optimize his capital structure. As for the remaining funds, Lin Haoran had a clear destination in mind: continuing to increase his stake in Green Island Cement. His current 12.9% holding was insufficient to control the company's destiny, and the potential entry of Cheung Kong Holdings made him feel a sense of urgency. To maintain the initiative in future competition, he had to increase his shareholding to ensure he held a greater portion of Green Island Cement. Thus, he had locked the remaining funds for additional investment, vowing to secure a larger share of the spoils in this capital feast where Chinese-funded enterprises were swallowing up British-funded ones.

Upon returning home, Lin Haoran was surprised to find his father, Lin Wan’an, had returned early. "Daddy, why are you home so early today?" Lin Haoran asked curiously. Usually, if Lin Wan’an had no business engagements, he would arrive home around seven in the evening. If he did have engagements, he might not return until after nine or even ten. But it was only 5:30 PM, a rare time for his father to be home.

"I have a film celebration banquet to attend tonight starting at seven. I was planning to come back and change into something more appropriate. Haoran, why don't you come along? Networking with people in the business world will always be beneficial for your future," Lin Wan’an replied warmly.

"A film celebration banquet? Daddy, you invested in a movie?" Lin Haoran asked, surprised.

"Haha, it was just for fun. I invested 200,000 HKD in my personal capacity for a 30% stake. It’s been exactly a month since the film was released, and the box office has already surpassed 2.5 million HKD. It’s not a huge profit, but it was mostly to support some old friends and find a bit of entertainment for myself," Lin Wan’an explained with a smile, his words revealing his deep affection for his old friends and his relaxed attitude toward film investment.

Lin Wan’an was telling the truth, and his profit figures were quite realistic. A box office of 2.5 million HKD might not seem like much, but it was quite decent for that era. However, according to industry practice, after 15% entertainment tax and 47% taken by theater chains, investors usually received less than 40% of the box office revenue. Even at 40%, the actual return would be around 1 million HKD. With his 30% stake, Lin Wan’an would only receive about 300,000 HKD. Investing 200,000 to get back 100,000 in profit might seem like a decent margin, but considering the small base, it could hardly support dreams of "getting rich overnight."

Small-budget films could occasionally break through obstacles and achieve unexpected success through word of mouth and creativity. However, such successes hid countless works that faded into obscurity, struggling in the tide of the market and ultimately failing to avoid losses. More importantly, the scale of the Hong Kong film market was relatively limited, which severely constrained the profitability of film projects. For instance, the annual box office champion that year only grossed a little over 7 million HKD, a harsh reality for those dreaming of wealth through cinema. Even giants like Shaw Brothers and Golden Harvest, despite their immense strength and resources, often had limited annual profits in such a fiercely competitive market.

Therefore, ever since his rebirth into this world, Lin Haoran had understood this well and never intended to pour too much energy into the turbulent sea of the entertainment industry. In his view, the unpredictability of the stock market, the steady appreciation of real estate, the prosperity of import-export trade, and the solid foundation of manufacturing were the true highways to the pinnacle of wealth. As for making movies? That was nothing more than a casual pastime, a flamboyant interlude that might bring momentary applause but could hardly support his grand blueprint for a business empire.

"Alright, Daddy, I'll go change into something suitable and join you shortly. This celebration banquet sounds interesting, and I'd like to see it for myself," Lin Haoran said, finding himself quite interested in the event.