good.

Satisfied this time.

Perfectly earned the remaining 250,000.

Without considering taxes, if the company's business is running well and the next project will be launched soon, that's fine. But if there is a window period, then you still have to pay employee wages, rent, and software fees for the 250,000.

etc……

And these are still the most ideal ways.

The actual situation is that the 1 minute and 17 second film took 20 computers to render in one month?

For a film with 50-cent special effects, the minimum team size must be more than 30 people.

Therefore, doing special effects may seem like a large-scale project, but in fact the profit is really low.

Employees, computer equipment, software, and time costs will eat up more than 90% of the entire project profit, which is a normal thing.

After Wang Sicong heard Xu Xin's words, he responded:

"Yes, it's very low. That's why Nicholas Tse doesn't want to do it anymore. He opened a branch in Shanghai in 2009. In 2010, last year, he moved the company from the basement to an office building. But

His current office building in Xiangjiang is not big. It is divided into two floors. The upstairs and downstairs combined are less than 500 square meters. The Xiangjiang side is currently only undertaking business, and the special effects have been transferred to the Magic City. There is no way, the mainland is cheaper...

…”

"When did he start this company? Is the business sound? There are no problems, right?"

"That's not true. The headhunter said that he also had the idea of ​​"revitalizing Chinese special effects" at the time. It seems that he started working on it because he was not satisfied with the production effect of one of his MVs."

"Well...it's a good starting point."

"Yes, almost the same as you. I have to admit that he has indeed achieved scale. But again... Xiangjiang Film is almost dead, and the company has reached its ceiling. Without strong investment injection

, then its scale will only be what it is now.

The headhunter said that he has been actively seeking to make a move in the past few months... but it is not ideal. The current film resources in Hong Kong no longer support him. In the mainland... everyone knows that special effects profits are low, and Koreans are also very aggressive in grabbing the market.

...They have the foundation. If we want to catch up, someone has to take advantage of us. We will invest heavily and produce low profits. And we also have to face poaching from other special effects companies..."

Wang Sicong's words may be distressing to others.

But for Xu Xin...

Just right.

"Is his company definitely developing in a healthy way now?"

"I'm sure, although he can't get the financial report, he is still looking for investment companies through headhunting. These business information are transparent~"

“What’s his company’s valuation now?”

"I estimate... two hundred million is worth the sky."

"..."

Xu Xin's mouth twitched...

"Only 200 million? Such a well-run special effects company only has 200 million? Are you sure?"

"Brother, 200 million is just for now. If you really make the acquisition... I estimate conservatively that the additional equipment, venues and other mess will cost you at least 100 million. Then you want to attract business, right? You need to expand channels.

Right? You want to recruit, right? At this scale, the annual employee salary is 40 million.

You have added hardware and recruited personnel, but why can't you double the cost? With an operating cost of 80 million a year, how can you ensure revenue in the special effects market? How can you ensure that your business continues to run without losing money? This is what makes it possible.

The reason why investment companies stay away is because in the long run, as long as the scale increases, this is a project that must lose money. This is the real deadlock."

Although Wang Sicong's words were in the same tone as the two of them chatting and bragging.

But the meaning between the lines is the cold reality.

Compensation is a given.

And no one knows how much it will lose.

What are the prospects?

Unless the Chinese-speaking market gets better and better, it may never turn around in its lifetime.

And... a special effects company is the same as opening an Internet cafe.

If your equipment is outdated, even if it is depreciated and cashed out, it will not be worth anything.

After all, the Chinese film market is not Hollywood.

The various conditions that a special effects company must be equipped with are... very demanding.

With the current market size...

too difficult.

And this is the most embarrassing part.

Will you do this?

If you do, be prepared for long-term losses.

But for Xu Xin...

Don’t do it?

Failure to do so means falling behind and being beaten.

Personal ambitions and pursuits, at this moment, are so worthless in front of this cold money...

From the market to the environment to various factors... they all told Xu Xin the same answer:

"Right now, it's not a good time to develop special effects."

The person who once had the same ambition as you is now starting to back down.

Are you coming out to take over at this time?

This is not called bargain hunting.

This is called blood loss.

After thinking for a while, Xu Xin asked:

“What are the investment advisors saying?”

"It is not recommended to acquire. In the long run, outsourcing is the best choice. It is recommended to finance holdings and wait and see in the short term. The prospects are not clear."

"What's your suggestion?"

"I don't care."

Hearing Xu Xin's words, Wang Sicong's tone was very relaxed:

"If you want to do it, I can help you do it. It doesn't matter whether you make money or not. The important thing is... we are doing something."

truth.

Xu Xin's heart felt warm.

And he also clicked on his mailbox and downloaded his paper from it.

The scroll wheel slid for a while, and after he found a paragraph in his paper, he said to Wang Sicong:

"Aren't I writing a doctoral thesis recently? I'll give you some data, and then tell you why I'm confident that even if it doesn't make money, it won't lose too much."

"Well, you say."

"The original words of my paper are: There is no doubt that the production cost of Hollywood blockbusters continues to rise every year, and the increase far exceeds the inflation rate. According to the data in Figure 1, in the 10 years from 1995 to 2004, the production cost exceeded 1

There were 60 Hollywood movies that grossed US$100 million. However, in the next six years from 2005 to 2011, this number surged to 113. (Note 1)

I asked people from the company to help me find this information one movie at a time.

My point of view is that if Hollywood does not reduce its shooting costs and cannot beat inflation, then it will definitely implode. I will take this picture and send it to you later. You will know it by looking at the curve. Its growth is too exaggerated.

, inflation is the fundamental measure of the value of all items, and in the United States, it is not just theater box office share, DVDs also take the lion's share.

However, its recycling process is too long, and I have to ask a few economists to talk about this part. I haven’t started writing yet.

But my point of view is actually very simple. After the subprime mortgage crisis in 2008, Hollywood's film investment increased more than inflation, combined with our country's attractiveness as the world's factory... I believe that the country's destiny will be reflected in ours.

Within this industry, in the future of Hollywood, there will definitely be a large number of outsourced projects leaving the United States and moving to other places... Guess where this other place is?"

"..."

Wang Sicong was silent for a while, and then said:

"You still have to ask? You already said that we are the world's factory. As long as our conditions are sufficient and the policies are supportive, these black-hearted capitalists will definitely treat us as the cheapest labor force..."

"And what we can get from these cheap labor is..."

At this time, Wang Sicong didn't think at all and continued without thinking:

"A whole Hollywood industrial system."

After saying that, he fell silent again.
To be continued...