lovenovelstory Chapter 70: The Billion-Dollar Chessboard
Chapter 70: The Billion-Dollar Chessboard
August 9th, 9:00 AM, Light Chaser Films headquarters, China World Trade Center
The China World Trade Center was much quieter than usual on Saturday, with only a few employees working overtime in the lobby.
In the largest conference room, people were seated on both sides of the long conference table.
Jiang Yu sat in the main seat, his gaze slowly sweeping over each face.
From left to right: Zhou Mu, Chief Scientist of Light & Shadow Digital; Wu Na, CEO of Light & Shadow Digital; Chen Jingming, President of Light Chaser Holdings; David Cohen, President of Light Chaser Pictures North America.
From right to left: Yang Siwei, President of Light Chaser Pictures; Wang Jian, CEO of Light and Shadow Cloud; and several directors of core departments.
This is the highest-level strategic meeting held by Light Chaser Animation since its establishment.
"Let's begin." Jiang Yu's voice was calm, yet it instantly silenced the conference room. "Let's start with Zhou Mu."
Zhou Mu adjusted his glasses and opened the laptop in front of him.
A complex organizational chart popped up on the screen.
"The Light & Shadow Digital domestic team currently has 118 special effects technicians, divided into five core departments: modeling, animation, special effects, compositing, and technology research and development."
He spoke quickly, with the decisiveness characteristic of a technologist: "In terms of technological reserves, our self-developed real-time rendering engine, 'Aurogon 1.0,' has completed internal testing and is more than 30% more efficient than commercial engines on the market. Core modules such as the fluid dynamics simulation system, particle system, and hair system have also reached Hollywood-level standards."
He pulled up another chart: "In terms of production capacity, we can currently handle the full-process visual effects production of two A-list Hollywood projects simultaneously, or four medium-sized projects. Specifically, for current projects, the early visual development of '2012' is basically complete, and the fluid simulation of the disaster scenes has passed testing, which director Roland Emmerich is very satisfied with. The design of the mechs and the concept art for the monsters in 'Pacific Rim' has started, and the first version is expected to be submitted by the end of the year."
"In addition," Zhou Mu paused, "we also took on some domestic projects, mainly providing special effects support for China Film Group and CCTV. Although the profits are not high, it can train the team and build government relationships."
Jiang Yu nodded: "Well done. Technology is fundamental, and production capacity is the guarantee. We want to make Light and Shadow Digital our hard currency both domestically and in Hollywood."
Next up is Wu Na.
The capable female CEO opened a folder and spoke concisely and forcefully: "North American Light & Shadow Digital currently has 187 full-time employees, plus contract artists, totaling 256. Our current major projects include: Cameron's *Avatar*, where the visual effects are 92% complete and expected to be fully delivered by the end of October; *Iron Man 2*, where we handled 50% of the visual effects, mainly the new scenes after the armor upgrade; and *Inception*, where we've already been involved in early visual development, and Director Nolan is very satisfied with the 'folding city' concept design."
She paused for a moment, then continued, "In addition, pre-production for 'Twilight Saga: New Moon' has begun, and we are responsible for the vampire special effects and the visual design of the werewolf transformation. The director specifically requested that the visual style of the first film be retained."
"Profitability?" Jiang Yu asked.
"First-half revenue was $4200 million, with a net profit of approximately $1800 million. Full-year revenue is projected to exceed $8000 million, with a net profit of around $3500 million."
Wu Na paused for a moment, then added, "However, Industrial Light & Magic and Weta Digital have recently started competing for our projects, offering very low prices."
"As expected," Jiang Yu said. "They felt threatened. We will continue to focus on improving our technology; quality is our competitive advantage. In addition, we have begun to systematically reach out to their core technical personnel, especially those of Chinese descent."
"It's already being done," Wu Na nodded.
Next was Wang Jian.
This newly joined computer expert, in his early forties, wore a simple plaid shirt, a typical engineer's image.
When he spoke, everyone in the conference room sat up straight.
"The Guangying Cloud team currently has 88 people, and all 35 members of my original team have joined." Wang Jian's voice was not loud, and he had a smile on his face. "Following the distributed architecture concept of 'data-centric' provided by General Manager Jiang, our team has completed the preliminary technical demonstration in the past two months."
He turned on the projector, and a complex system architecture diagram appeared on the screen.
"Traditional cloud computing is computing-centric, while we pioneered a data-centric approach. Simply put, we treat data as the primary citizen, and computing revolves around it."
Wang Jian pointed to the chart with a laser pointer, "The advantages of this architecture are obvious: data migration costs are reduced by 70%, and computing efficiency is increased by more than 40%. It is particularly suitable for real-time processing of massive amounts of data, such as film and television rendering, scientific computing, and financial modeling."
Zhou Mu's eyes lit up, and he couldn't help but interject, "What if we apply this architecture to special effects rendering..."
"Rendering time can be reduced by more than half," Wang Jian said confidently. "I have had the team conduct a small-scale test. Using the same scenario, the traditional architecture would take 120 hours, while our architecture only took 52 hours."
"What about the cost?" Chen Jingming asked the crucial question.
"The initial investment is large, but the scale effect is obvious." Wang Jian pulled up another chart. "According to our calculations, when the computing scale reaches a certain critical point, the unit cost will be 30%-50% lower than that of traditional cloud services. This critical point requires a scale of about 10 servers."
10 servers.
This number caused everyone present, except for Jiang Yu, to gasp in shock.
"How much money would that cost..." David murmured.
Wang Jian looked at Jiang Yu, his eyes filled with the fervor of a technologist, but also with concern about funding.
Jiang Yu tapped his fingers lightly on the table, pondered for a moment, and then slowly said, "Dr. Wang Jian, I have given you and your team 30% of the shares in Guangying Cloud, and you personally serve as the chief architect and CEO. Today I can make you a promise: I will not set a budget limit for this project."
The meeting room became even quieter.
"The initial investment of 10 billion RMB has already been received," Jiang Yu continued. "The additional investment will be no less than 50% every year thereafter. I have only one requirement: to produce a commercially viable prototype system by the end of 2010. I can promise that the total investment will be no less than 50 billion RMB."
Wang Jian took a deep breath and nodded emphatically: "President Jiang, with your words, we will do our best to accomplish it."
"It's not about working yourself to the bone," Jiang Yu corrected, "it's about working smartly. Hire people when you need to, buy equipment when you need to, and poach talent when you need to. Money isn't the issue; time is."
"clear."
.......
Next up is Chen Jingming.
He didn't use a projector; he started reporting right away, with all the data in his head.
"Chasing Light Holdings currently has total assets of approximately US$21.7 billion and net assets of US$15.2 billion." Chen Jingming's voice was as calm as if he were reading a textbook. "Regarding the short-selling operations during the subprime mortgage crisis, there are still 15% of the contracts that have not yet expired, and it is expected that all positions will be closed by the end of September. After deducting all expenses and taxes, the net profit is approximately US$14 billion."
$ 14 billion.
This number elicited a low gasp in the conference room.
Chen Jingming adjusted his glasses and continued, "The problem is, we're being watched. The SEC has started an investigation, and although our operations are completely legal, this process will be very troublesome. In addition, several Wall Street hedge funds are inquiring about our movements, probably wanting to follow suit."
"As expected," Jiang Yu said calmly. "It would be strange if no one noticed such a large profit. We will cooperate with the investigation according to procedure, disclose what should be disclosed, and not say a word that should not be said. In addition, we will start to systematically transfer funds back to China."
"It's already underway," Chen Jingming nodded. "We've already transferred about $5 million back through legal channels, and the rest will be transferred in batches. We expect the domestic fund pool to reach $10 billion by the end of the year."
He turned a page: "Regarding investment strategy: Tencent's $3 million reinvestment is in its final stages, leveraging its stake to approximately 8.5% of the total shares. Negotiations with Nvidia are progressing smoothly; they are willing to accept a cash investment. Negotiations with Netflix are still in the early stages; they are very interested in our Light Chaser Pictures shares; they would like to schedule a time to discuss this in detail."
"In addition," Chen Jingming paused, "we plan to quietly build up our position in Apple on the secondary market using 5x leverage, and we expect to start implementing it early next year."
David was dumbfounded: "Chen, what you guys are doing is way more exciting than Hollywood..."
Chen Jingming ignored him and continued his report: "The main task of this trip back to China is to establish the headquarters of Chasing Light Holdings in Beijing. In addition, domestic investment projects are also progressing: we led the Series B financing of JD.com, and the deal has been reached, with a $4000 million stake for a 28% share. We are also in contact with Sina's Weibo project, and the initial intention is to take a 20% stake for $400 million."
"Regarding new energy, I've visited several battery companies and photovoltaic companies, but they're all still in their early stages. If Mr. Jiang has a clear direction, I can focus on following up on them."
Jiang Yu thought for a moment: "Let's put new energy aside for now and focus on getting the current projects off the ground. Also, buy me two buildings in Beijing."
"Buy a building?" Chen Jingming was taken aback.
"Yes, buy an office building." Jiang Yu looked around the conference room. "As you can see, this floor is no longer enough. Light Chaser Pictures needs to expand, Light and Shadow Cloud needs independent offices, the holding company needs to be established, and we'll need to hire more people in the future. Consider this an asset allocation strategy."
Chen Jingming quickly did the mental calculations: "A Grade A office building in Beijing, if you were to buy the whole building... it would cost around 10-15 billion RMB in the area outside the Third Ring Road, and even more in the Financial Street area. If you're considering future development, I suggest buying the entire building, with an area of at least 5 square meters."
"You decide what to do, the budget shouldn't exceed 30 billion," Jiang Yu said. "There are only two requirements: first, the location must be good and the transportation convenient; second, the building must be new and the infrastructure must be complete."
"Understood, I'll start market research next week."
Finally, it's David.
This Hollywood veteran was unusually dressed in a suit today. He cleared his throat and began his report in English with a California accent.
"Light Chaser Pictures North America is currently focusing on five projects." David opened his notebook; surprisingly, he wasn't using a computer. "First, '2012.' Negotiations with Universal Pictures and Lionsgate have been completed, and a press conference will be held in Los Angeles next week to officially launch the project. Investment structure: we hold 45%, Universal 30%, Lionsgate 15%, and the remaining 10% is reserved for other production companies in exchange for resources. Universal will handle part of the North American distribution and all of the global distribution, while Lionsgate will handle most of the North American distribution."
"Secondly, *Lucy*. Director Luc Besson has already read the script, is very interested, and has agreed to direct it. The investors include us, Fox, and EuropaCorp, and the specific percentages are still being negotiated."
David paused, then glanced at Jiang Yu: "Also, Luc Besson asked if it would be possible to incorporate some Chinese elements into the film? Not by forcing them in, but by integrating them appropriately."
"Okay." Jiang Yu nodded. "Let the screenwriting team discuss it with him. It needs to be natural, not stiff."
"Third, *Taken 2*. The project has been greenlit and will begin filming soon. The production companies are still Fox Searchlight Pictures, Moonlight Pictures, M6 Film, and us. Liam Neeson has signed on, and Pierre Morel will still be the director. The budget is $4000 million, and we own 30%."
"Fourth, *Pacific Rim*. Pre-production has already begun, and director Guillermo del Toro is very excited about the concept of mechs fighting monsters. A writing team is currently being assembled, and formal development is expected to begin next year."
David turned a page, a smile spreading across his face: "Finally, the good news: the first installment of Iron Man's revenue, $8000 million, arrived last week. Our share of the profits from subsequent rights and merchandise will increase."
A low murmur of surprise rippled through the conference room.
Iron Man was an investment project at the end of last year, when Marvel was on the verge of bankruptcy. He made a successful bet and is now starting to reap the rewards.
After David finished his report, it was Yang Siwei's turn.
Compared to the previous speakers, her report seemed... somewhat thin.
"Currently, Light Chaser Pictures in China is mainly pushing forward with three film projects." Yang Siwei's voice was as calm as ever, but a hint of pressure could be sensed if one listened closely. "First, the script development for 'The Witch 2'. The screenwriting team has been assembled and is currently working on the story outline. The first draft is expected to be completed by the end of the year."
"Secondly, 'The Bouquet.' The script is complete, and director Shen Ao officially joined the company last month. He is currently working with the screenwriting and production teams on pre-production. Director Lu Yang will serve as the executive producer. Filming is expected to begin in October, with a budget of 20 million RMB."
"Third, director Lu Yang's new project, 'The Lone Agent.' It's currently in the early stages of development, and the script outline has just been completed."
She paused, then added, "In addition, we are also in contact with several projects by young directors, but they are still in their early stages."
After the report was finished, the meeting room was quiet for a few seconds.
David couldn't help but whisper, "Yang, compared to our project, this seems a bit..."
He didn't finish his sentence, but the meaning was clear.
Yang Siwei's face flushed slightly, but she still kept her back straight: "The domestic film market is still in its development stage, with a low level of industrialization and few good projects. We have been doing our best to discover and cultivate them."
Jiang Yu looked at Yang Siwei and suddenly smiled.
"Don't feel pressured, Siwei." His voice was gentle. "Domestic and international projects are two different tracks. International projects are about cash flow and technical training, while domestic projects are about cultivating the market and talent. You've done a great job. The success of 'The Witch' has proven that our model is viable in China."
He paused, then looked around the room: "What are your impressions of today's meeting?"
.......
Everyone looked at each other.
Zhou Mu was the first to speak: "It feels like... we're doing so many big things at the same time."
Wu Na nodded: "And every single one of them is a big deal."
Wang Jian adjusted his glasses: "My project may take five to ten years to see a return."
Chen Jingming calmly said, "The financial pressure will be enormous, especially for cloud computing and real estate purchases, which are both heavy asset investments."
David shrugged: "Hollywood is lucrative, but the competition is fierce. The Big Six studios have started to encircle us."
As Jiang Yu listened, his fingers tapped lightly on the table.
"You're all right," he said slowly. "We're simultaneously working on several major projects: special effects technology, cloud computing, film production, and global investment. Each of these alone could sustain a company for a lifetime. I want to ask you a question: What do you think is the biggest opportunity for Chinese cinema in the next ten years?"
No one answered; Jiang Yu's gaze swept over everyone.
He slowly said, "It's a system. It's a complete industrial chain system that encompasses creative development, production and filming, post-production special effects, distribution and marketing, and derivative development."
"Why has Hollywood been able to dominate the global film market for a century? It's not because they have the best directors or actors, but because they have the most mature industrial system. In this system, ideas can be produced in a standardized manner, quality can be controlled through processes, and risks can be assessed through models."
He rested his hands on the table.
"Everything we do now is part of building this system."
"Light and shadow digital effects are part of the special effects process."
"Light and shadow cloud is the underlying technology."
Light Chaser Pictures is a content producer.
"Chasing Light Holdings is backed by capital."
"Buying a building to build headquarters is a physical structure."
Jiang Yu's gaze sharpened: "Once this system is built, its value will not be in how much money it makes or how much time it saves, but in the power to set industry standards and the dominance of an ecosystem."
He looked at Wang Jian: "If your cloud computing succeeds, all of China's future film and television rendering, data training, and scientific computing may have to rely on your services. What does that mean? It's infrastructure."
He looked at Chen Jingming: "If your investment strategy succeeds, we will become a hub connecting Chinese and American capital, technology, and talent. What does that mean? It's a financial pipeline."
He looked at Zhou Mu and Wu Na: "If your technology continues to be at the forefront, the six major Hollywood studios will have to beg us to cooperate. What does that mean? That's a technological barrier."
Finally, he looked at Yang Siwei and David: "If you can continuously produce high-quality content, we will be able to control the narrative. What does that mean? That's cultural export."
Everyone was deeply moved by these words.
"So," Jiang Yu sat back down, his voice regaining its calm, "don't think we're spreading ourselves too thin. We're not spreading ourselves thin, we're spreading a network. Every node in this network supports the others. Special effects technology needs cloud computing, cloud computing needs funding, funding needs project returns, projects need talent and technology... It's a closed loop."
He paused for a moment: "Now, this closed loop has taken initial shape. What we need to do is get it spinning, and spinning faster and faster."
Chen Jingming was the first to react, adjusting his glasses: "President Jiang, I understand. I will adjust the fund allocation, prioritizing investment in cloud computing and special effects technology."
Wang Jian took a deep breath: "President Jiang, with your vision, our team is ready to go all out. In 2010, I will definitely give you a usable system."
Zhou Mu and Wu Na exchanged a glance and nodded simultaneously: "We will accelerate the pace of research and development on the technology side."
David rubbed his hands together: "I'll keep a close eye on every project in Hollywood. The Big Six want to block us? Let them try."
Yang Siwei straightened her back: "I will speed up the progress of domestic projects, and at the same time start to build a production team to cultivate more producers who can operate industrialized projects."
Jiang Yu looked at his group of comrades who had been set ablaze, and a smile appeared on his lips.
"Okay," he said. "That concludes today's meeting. Everyone, do your jobs and get to work. Communicate any problems you may have, and ask for resources whenever you need them."