Chapter 411: The First Investment in Southeast Asia
Zou Wenhuai continued his introduction: "Mr. Yang, this is Lu Yunsheng, the older brother of Lu Yuntao. He is the one overseeing the sale of the theater chain."
"Mr. Lu, my condolences for your brother's passing," Yang Wendong said politely. "Your brother made significant contributions to Hong Kong's film industry."
"Thank you," Lu Yunsheng nodded slowly. "It was a great loss to our family as well. No one ever knows whether accident or tomorrow will come first."
"Yes," Yang Wendong agreed. "These things are unpredictable, even with the best precautions. We can only do our best to prevent them."
"Indeed," Lu Yunsheng replied. "But there's no point dwelling on the past. Let's get down to business."
"Agreed." Yang Wendong nodded. "Mr. Lu, I understand that your side intends to sell off all the theaters in one go. I'm prepared to acquire them all at once. That should be more efficient than other buyers trying to purchase only portions, don't you think?
We're both businessmen. I don't want to waste too much time. Even if we can't settle on a final price today, let's iron out the framework of the deal, so once we agree on price, we can proceed directly."
"Straightforward as expected, Mr. Yang," Lu Yunsheng smiled. "Then may I ask—what price range are you considering?"
He understood that for top-level entrepreneurs, time was priceless. Spending too much of it on a minor deal wasn't worth it. The young man in front of him, though youthful in age, had built a massive empire in just a few years. In terms of wealth and influence, he was already on par with the Lu family.
Yang Wendong replied, "You're the seller. You name the price."
"Fair enough." Lu Yunsheng nodded. "My brother had 82 theaters in Southeast Asia—55 in Singapore, the rest mainly in major Malaysian cities near Chinese communities.
There are also 5 theaters in the Philippines. Total combined area: 1.66 million square feet. Based on local land values, our total asking price is $14.6 million USD. Here's a detailed breakdown. You're welcome to have your team verify everything."
He handed over a thick file. Yang Wendong skimmed through it—each theater's location, area, land value, number of seats—it was all meticulously listed.
Without another word, Yang Wendong passed the file to Zou Wenhuai and said, "Have people start checking immediately. Assign more personnel so we can verify everything within a few days."
"Yes," Zou Wenhuai said as he accepted the file.
Lu Yunsheng smiled and said, "Please feel free to verify everything. Aside from potential fluctuations in land price, if there's any error in the details, I'll personally apologize."
"I believe you," Yang Wendong nodded. "Nobody would fake data on something like this. As for price, we'll discuss that after verification. But since we're buying in bulk, there should be some discount, right?"
Over $10 million USD was no small amount—even in Western countries, that was a significant investment.
But over a million square feet of land in Singapore and other key cities across Southeast Asia? That was a high-value asset. It would only appreciate as Southeast Asia's economy grew. More importantly, owning these theaters would allow Changxing Films to expand across the region, laying the groundwork for a regional distribution network and offering huge strategic value for both Changxing and Hong Kong's broader film industry.
Lu Yunsheng responded, "Our quoted price already includes the discount. We understand business etiquette when it comes to such large-scale asset sales."
"Understood. Once we confirm the data, we'll revisit the pricing," Yang Wendong said, choosing not to press further.
Lu Yunsheng added, "However, Mr. Yang, I can also assist you financially in this deal."
"Your family owns a bank?" Yang Wendong asked with surprise.
In this era, information was fragmented, especially in Southeast Asia. The region was vast, and unless a company was listed, it was hard for outsiders to know the true scope of their operations. Hong Kong was small—business activities were more transparent.
"No, the Lu family doesn't own a bank," Lu Yunsheng explained. "But we do have banking partners. For this transaction, the banks we work with can provide USD-denominated loans to ease your capital burden."
"Which bank?" Yang Wendong asked.
"OCBC – Oversea-Chinese Banking Corporation," Lu Yunsheng replied. "You've probably heard of it?"
"I have. I'll look into it," Yang Wendong nodded.
If it had been a random Southeast Asian bank, he would've been more cautious—some institutions had unreliable reputations. But OCBC was a well-known name even in his previous life, especially in Singapore, where it ranked second only to DBS Bank. Since DBS didn't even exist yet in 1964, OCBC was indeed the top choice.
Just from the name alone, it was clear OCBC was geared toward the Chinese community. Building a relationship with them now would be very beneficial to future expansion in Southeast Asia.
Lu Yunsheng smiled. "Great. I'll have OCBC's representatives visit your hotel."
"Sounds good," Yang Wendong agreed.
A loan of over $10 million USD made him an important client at any bank, even the largest ones. The bank might not care, but the relationship manager definitely would.
After some more small talk, Lu Yunsheng took his leave. Yang Wendong and Zou Wenhuai walked him to the hotel lobby.
After he was gone, Yang Wendong turned to his assistant and said, "Get in touch with the reps from Standard Chartered and Citibank. Let them know about this deal and invite them to participate. We'll choose the best partner."
While OCBC seemed like a solid option, business decisions should always involve comparisons. Standard Chartered and Citibank both had long histories in Southeast Asia, and their reputations were strong.
The assistant understood immediately and replied, "I'll contact them right away."
"Good." Yang Wendong nodded.
This trip had always been about a major acquisition. In addition to Zou Wenhuai and his theater-savvy team, Yang Wendong had also brought experts from headquarters in finance, law, and business negotiations—to ensure that key decisions could be made on-site.
Still, no matter how prepared they were, a deal of this size couldn't be finalized in just a few days. At most, Yang Wendong could decide whether to proceed or not. The rest would be handled by the professionals—conducting detailed research, negotiating the final terms, and ensuring a smooth transaction.
Over the next few days, Zou Wenhuai and the HQ team worked around the clock. To accelerate the process, an additional 20 staff members were flown in from Hong Kong to help gather more detailed data—enabling top leadership to make informed, rapid decisions.
While the top executive, Yang Wendong, was in Singapore, he took the opportunity to tour various bustling districts with Bai Yujie. These areas were relatively safe, with no major security risks.
Upon entering a private room in one of the city's venues:
"Dong-ge, are you planning to invest heavily here in the future?" Bai Yujie asked.
Yang Wendong looked at her curiously. "What makes you say that?"
Although he indeed intended to invest substantially in Singapore's future, he hadn't shared that plan with any of his family.
Bai Yujie smiled, "I noticed that whenever we go out, you always ask people nearby about things like the economy, development trends, local wages... You didn't do that in Europe or Japan. So if you're doing it now, there has to be a reason."
"Haha, you're quite observant," Yang Wendong chuckled. "Yes, I do plan to invest here. I think Singapore has great potential."
"Is it because most of the population here is Chinese?" Bai Yujie followed up.
Yang Wendong nodded. "That's one of the main reasons. Among all the ethnic groups in Southeast Asia, I naturally have the most confidence in the Chinese diaspora. You've probably heard—Chinese tycoons dominate many Southeast Asian economies."
In his previous life, the mainland's economic success was largely due to the Chinese entrepreneurial spirit—never willing to remain subordinate. The same was true in Hong Kong, Taiwan, and Singapore.
And in Southeast Asia, which is even farther from the mainland, the Chinese who managed to settle here often did so under even harsher conditions, meaning they had greater capabilities and ambitions. Many had, over time, become economic leaders in their respective countries.
Singapore, in particular, had become a gathering place for Chinese influence, and once it achieved full independence, it would become a magnet for international capital. In just two decades, it would transform into a developed nation.
"I see," Bai Yujie said, beginning to understand.
"There's also the matter of its strategic geography—a world-class port," Yang Wendong added.
"So it's really not that different from Hong Kong," she remarked.
"Exactly. You could say it's Hong Kong in the 1950s," Yang Wendong smiled. "How could I ignore a place like this? Besides, I estimate that Hong Kong's property boom will peak in another five or six years. I've already started cashing out. That capital can be redirected here."
The economic cycles of Hong Kong, Taiwan, and Singapore were staggered, allowing him to rotate his investments to maximize returns. Hong Kong was the core base—he knew it best. Taiwan, he was moderately familiar with. Singapore, not as much. But investing right after independence? That would be a golden opportunity.
Bai Yujie nodded. "It really feels like you have everything under control."
"Of course," Yang Wendong said confidently. "I'm especially interested in building a theater network across Southeast Asia. It's a solid business on its own, but more importantly, it supports the Hong Kong film industry.
Just imagine—if we have hundreds of cinemas across the region, every investment we make in Hong Kong movies will have guaranteed international distribution. That would be a massive win. Eventually, we could bring Chinese culture to all these 'undeveloped' regions of Southeast Asia."
Though he was exaggerating a little, it wasn't entirely false. Many Southeast Asian countries—with populations in the hundreds of millions—still lacked a cultural industry by the 2020s. Film, TV, animation… nothing substantial. Their entertainment markets were flooded with content from Hollywood, Hong Kong, Korea, Japan, and later, mainland China.
Even Taiwan had a brief period of drama exports. Southeast Asia? Almost none. Only Thailand had begun to rise, and only slightly.
"Haha, I hope our Hong Kong dramas and films can go viral across Asia," Bai Yujie laughed. "That way, I'll always have great shows to watch."
"That day will come," Yang Wendong said with a faint smile.
When he first arrived in Hong Kong, his goal was to provide basic employment for the working class. Now, he had mostly achieved that. Of course, he wasn't solely responsible—economic development was the real driving force. He had simply been a participant, making his own small contributions.
Now, beyond business success, he aimed to develop Hong Kong's cultural industry and leave behind a sector that wasn't dependent on real estate. Film was a key part of that vision.
The peak of Hong Kong's cultural exports in the 1980s and 1990s proved the region had plenty of talent. After China's reform and opening, the mainland could supply even more creative minds. That wasn't a concern.
The real issue was the market. If the market was large enough, capital and talent would flood in, creating more content and enhancing cultural exports.
Of course, by the 1990s, some Southeast Asian governments would begin restricting Hong Kong films via policy. But that was a problem for another day. He had other options—opening up the mainland market being one of them.
—
Time flew, and soon it was September 28.
All the evaluation reports had been compiled and delivered to Yang Wendong.
Zou Wenhuai reported, "Mr. Yang, according to our current findings, the real estate value of the properties in question is approximately US$12 million. That's just a straight conversion based on exchange rates. It doesn't account for currency conversion costs or liquidity issues."
"That's fine," Yang Wendong nodded. "This isn't a short-term investment anyway. Based on your report, their asking price of over US$14 million isn't unreasonable. The theaters themselves are highly valuable."
Besides the buildings, seating, air conditioning systems, and so on, the most expensive component of a cinema was the projection equipment. These machines were imported and very costly. A high-end system could cost tens of thousands of HKD, and maintenance wasn't cheap either.
On top of that, the theater staff, local brand recognition, and customer base also held value. After all, this wasn't just real estate—it was a fully functional industry.
Zou Wenhuai smiled. "That's our view as well. But from another perspective, some other buyers aren't looking at these as cinemas. They're property developers who want to demolish them and build towers. In their eyes, the theaters are a liability.
They're also not looking to buy all 80-plus properties. Each one wants a few at most. Some even turned down certain locations.
If the Lu family tried selling them one by one, it could take years. Our bulk purchase saves them a lot of time. I think we have significant leverage to negotiate the price down."
"Good point," Yang Wendong nodded with a smile. "Alright, have headquarters send over the international business team, and hire a local legal team here in Singapore. Start formal price negotiations with the Lu family."
It was one thing for Yang Wendong to believe in the opportunity. But if the seller viewed the assets as burdens, then it was time to drive a hard bargain.
"Yes, sir," Zou Wenhuai replied, delighted. They were finally at the final stage—just the price remained. Once the deal closed, Changxing Film's status would skyrocket.
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