Chapter 410: First Inspection in Singapore
Yang Wendong thought for a moment and asked, "Is there any time constraint on this?"
Zou Wenhuai replied, "The sooner, the better. It seems several other parties are also interested in these theaters."
"Run Run Shaw?" Yang Wendong asked.
Zou Wenhuai smiled and said, "No, not him. Lu Yuntao spent his life competing with Run Run Shaw. Though they weren't enemies per se, they weren't exactly on good terms either. Mrs. Lu is against selling her late husband's assets to Run Run Shaw.
That said, many of Lu Yuntao's theaters are located in excellent spots—which is typical for theater chains. A number of Southeast Asian tycoons are eyeing these prime locations."
"Alright then, I'll take a trip to Singapore soon to inspect the theaters in person," Yang Wendong said after some thought. "Once I see the situation myself, I'll decide what to do. You're coming with me."
"Of course. I visited Singapore back when I was with Shaw Brothers. I'm familiar with the locations of many of Lu Yuntao's theaters," said Zou Wenhuai.
"Good. I'll have someone arrange the flight and let you know the schedule," Yang Wendong nodded.
Even chartering a flight took time—especially with route applications. In fact, even once he owned a private jet, these procedures would still apply.
A few days later, a chartered Cathay Pacific flight took off from Kai Tak Airport, slicing through the clouds en route to the south.
Several hours later, the plane landed at Seletar Airport in Singapore. Zou Wenhuai had already made arrangements. Several cars were waiting to take the delegation directly to the famous Raffles Hotel.
After settling in, they set out early the next morning. Though Yang Wendong had visited Singapore in his previous life, he knew the Singapore of this era was very different—just like Hong Kong had been.
"Singapore now looks worse than Hong Kong," Yang Wendong said as he observed the infrastructure and crowds. "From what I've read, their per capita wealth should be similar to ours, right?"
Before the trip, Yang Wendong had done some light research. The World Bank had already begun publishing GDP statistics by country in this era. While not entirely accurate, the data was generally within a few percentage points of reality. Singapore's per capita GDP was even a bit higher than Hong Kong's. Even if that wasn't 100% reliable, they were certainly on the same level.
But looking around now, it was clear that Singapore lagged behind.
Zou Wenhuai explained, "Mr. Yang, Singapore is quite similar to Hong Kong in some ways—small land area, majority Chinese population, even a lack of water.
But unlike Hong Kong, which gets affordable water from the mainland, Singapore is heavily overcharged. Food, meat, and grain are also more expensive. So while the economy looks similar on paper, the cost of basic goods here is much higher, making everyday life harder."
"True," Yang Wendong nodded.
Hong Kong's cost of living wasn't that high in this era—especially not when compared with regions that couldn't grow their own grain. Many essential goods like food, freshwater, and industrial materials were exported to Hong Kong from the mainland at reasonable prices. That was one reason Hong Kong's industry could grow so quickly.
But in other places that had to import everything, there was no such advantage. Singapore and Malaysia had tense relations ever since Singapore's semi-independence in 1959. So any resource Malaysia could sell at a high price—they would.
Zou Wenhuai continued, "Also, much of Singapore's economy is controlled by large British firms. These firms hold the economic lifeline but contribute little to employment.
Hong Kong was the same in the early days, but we solved the problem through massive industrialization. Singapore, by contrast, still has very few factories. The unemployment rate among young people is reportedly 14%, and that's just the official figure."
"Then how is it still Hong Kong films' biggest overseas market?" Bai Yujie asked curiously.
Zou Wenhuai smiled and replied, "There are always wealthy people in any place. Even if half of Singapore lives in poverty, the other half lives fairly well. And those are the people watching our films. Plus, the population is majority Chinese—it's a perfect fit for Hong Kong cinema."
"Understood," Yang Wendong nodded. "Alright, let's go check out the Lu family's theaters."
It was obvious Singapore's economy wasn't great at the moment. That was to be expected—the British never left a colony without planting legal and economic landmines.
In history, Singapore's economy only began to grow after independence, thanks to two decades of effort and its strategic location near the Strait of Malacca.
The Lee family's leadership had indeed been competent. And they were fairly honest with foreign investors—at least, they didn't cheat. Whether sincere or not, so long as they maintained investor safety, that was good enough. Even if it was just about maintaining national reputation, it was a win.
Of course, larger investments would have to wait until after Singapore officially gained independence. Right now, Britain, Malaysia, the U.S., and local factions were all tangled up. It was the final stage of chaos. Investing heavily at this moment wasn't necessary.
But the Lu family's theater chain had time sensitivity. That was why Yang Wendong had come. Thankfully, it was only a few dozen venues, a moderate investment. It wouldn't draw attention from the big powers, and since it involved fixed assets, the risk was low.
Soon, the group arrived at an enormous theater.
Zou Wenhuai introduced it. "Mr. Yang, Madam Yang, this is Singapore's largest cinema—Capitol Theatre. It has 1,688 seats.
Back in the day, Run Run Shaw and Lu Yuntao fought tooth and nail over this venue. In the end, Lu's side had deeper pockets and managed to acquire it."
"1,688 seats? That's not a lot, is it? Don't we have similar theaters in Hong Kong?" Yang Wendong asked.
Theaters in this era weren't like multiplexes in the 21st century. They were single-screen halls with massive seating capacity.
There were two main reasons for this. First, there were fewer films to choose from, so one big room was sufficient. Second, film reels and projection equipment were very expensive and had to be imported. Building additional screens would mean significant extra costs. From an economic standpoint, it wasn't practical.
In the early days, Yang Wendong had done the math and realized that a multi-screen cinema model wasn't economically viable at the time, nor did it suit market demand. The future's business model wasn't always the best model for today.
Many of Hong Kong's older cinemas easily exceeded 1,000 seats; a few even had over 1,600. Back when land was cheap and equipment costs were the main investment, building bigger halls—even with empty seats—wasn't a problem, because people rarely sat in the corner seats anyway.
Zou Wenhuai chuckled and said, "That's because this theater was built to high standards after Lu Yuntao acquired it. If Run Run Shaw had gotten it instead, he would've built two theaters with 1,600 seats each."
Yang Wendong asked, "So you're saying this theater was considered a premium cinema?"
"Exactly," Zou Wenhuai nodded. "In his prime, Lu Yuntao's financial strength surpassed even that of the Shaw family. But even so, Lu only had 55 theaters in Singapore, while the Shaw family had 130.
The fundamental difference was in strategy. Lu Yuntao bought prime locations and built luxury cinemas, importing wide-screen projectors and audio systems from Europe and the U.S., installing air conditioning, premium seating—the works.
The Shaw family went in the opposite direction: building in ordinary locations with average environments, using secondhand equipment. Sure, there was air conditioning—but they only turned it on when absolutely necessary, just enough to keep the place from overheating."
"Haha, that sounds exactly like something Run Run Shaw would do," Yang Wendong laughed. "But Lu Yuntao's business model sounds a lot like what we've been doing with Changxing Cinemas in Hong Kong."
Back in the day, Changxing Cinemas had also aimed for the premium segment. While most of their locations were in Kowloon, they always picked central districts and used high-quality equipment. Air conditioning was a given.
"Yes," Zou Wenhuai nodded. "Lu Yuntao's strategy aligned closely with ours. About a decade ago, Lu and Shaw were locked in intense competition for the Southeast Asian cinema market. They were basically the only two major players pouring capital into theater chains.
But they ran into a problem: after investing in so many cinemas, there weren't enough films to show. Many locations started operating at a loss, and around 1955, Lu was forced to stop expanding. That's when he shifted to Hong Kong, focusing on making movies that he could then export to Southeast Asia."
"I see," Yang Wendong nodded. "So Hong Kong's movie boom starting in the mid-50s was driven by their rivalry."
"Yes," Zou Wenhuai said with a sigh. "Hong Kong used to have a few local film companies, but none with scale. Things really took off when the Lu and Shaw families brought their capital in.
If they had continued competing, Hong Kong cinema might've grown even more. Sadly, Lu Yuntao died unexpectedly."
"His death really was unfortunate," Yang Wendong said. "But Hong Kong cinema still has to move forward. That's your responsibility now."
He had never met Lu Yuntao—there'd never been an opportunity. But Yang Wendong respected him. The man had created a number of good films and had clearly contributed to society—bringing joy to people's lives. That was far more meaningful than some tycoon who only speculated in real estate.
"I understand. I've already been in touch with some of the people at Cathay Films, but for now, Mrs. Lu is still running the company. Many of them are hesitant to leave," said Zou Wenhuai.
"Then we wait," Yang Wendong said. "I doubt she'll be able to hold things together for long."
He didn't know the specifics, but in the original timeline, Cathay Films gradually declined. Often, when a founder dies suddenly, the resulting leadership vacuum can be devastating—especially in Chinese-owned companies, where succession planning is often neglected.
Zou Wenhuai agreed. "Yes, I think so too. Lu Yuntao left his assets in Hong Kong and Taiwan to Mrs. Lu. But over the years, he took large sums from the Lu family for his ventures. Now, with the theater chain in Southeast Asia being reclaimed by the Lu clan, Cathay will be in serious trouble without that network."
"That's not our concern anymore," Yang Wendong said. "Our job now is to acquire Lu's cinema chain. That way, our own films will have a stronger distribution network. Eventually, we can expand from that base and help elevate the entire Hong Kong film industry."
"Yes. Let's tour the theater now, then meet with the Lu family this afternoon," Zou Wenhuai said quickly.
He understood that his boss wasn't focused on how much profit a film company could make—it was about creating more movies, exporting them globally, and establishing Hong Kong's cultural influence. Of course, the two goals weren't mutually exclusive.
A movie screening had just ended, so Zou Wenhuai led the group into Capitol Theatre. The moment they stepped inside, they saw plush, fabric-covered seats, neatly arranged in rows.
Yang Wendong and Bai Yujie sat down.
"Quite comfortable," Bai Yujie remarked.
"Lu cared a lot about customer experience," Zou Wenhuai said with a smile. "He always tried to provide the best. But because of that, ticket prices were also a bit higher."
"Well, of course. You get what you pay for—there's no such thing as a free lunch," Yang Wendong said, nodding. "If we acquire this place, we'll keep the same operating model. In fact, we should use it as a template for expansion into other Southeast Asian countries."
"Understood. Shall we stay and watch a film, or head out?" asked Zou Wenhuai.
Since they were already inside, they had purchased tickets. A crowd was starting to file in—another movie was about to begin.
"Let's stay and watch. Might as well get a feel for the place," said Yang Wendong.
"Alright." Zou Wenhuai led the way, and the rest of the entourage followed. The group of over a dozen bodyguards discreetly surrounded Yang Wendong and Bai Yujie.
Security was always critical when traveling in Southeast Asia. Unless they ran into a major local gang, their team should be enough.
Also, this was the central business district of Singapore, so things shouldn't be too chaotic. Yang Wendong wasn't reckless—whether in the West or East, he only operated in areas he considered safe.
The film they watched was one of Cathay's old Hong Kong productions. It was decent—not amazing, but solid entertainment. After the movie ended, the group went out for lunch nearby, then returned to their hotel.
At around 2 PM, two men arrived at the hotel, introduced by Zou Wenhuai. The one in front stepped forward and extended his hand.
"Mr. Yang, it's an honor to meet you," he said warmly.
"Mr. Lu, likewise," Yang Wendong replied, shaking his hand.
These were representatives of the Lu family, the powerful clan behind Lu Yuntao. The Lu family had been active in Southeast Asia for over a century. Their exact wealth was a mystery, but the family patriarch was once a mining magnate in Malaysia, well-known across the region.
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