"This is absolutely true!"
Facing Hui Kwong‑Man's question, Lin BaoCheng nodded firmly and explained: "As far as I know, films shown in Golden Harvest cinemas are contracted at a 40/60 split — 40% to the production company, 60% to the cinema chain. On top of that, the production company must pay for promotion, distribution, and film print costs. In the end, they only receive about 20% of the box office."
"After that, entertainment tax is deducted. If the film is a big hit, some profit remains. But if it performs average or flops, forget about making money."
Before founding his film and cinema companies, Lin had investigated the market. He found cinema chains extremely dominant. Apart from a small leftist chain and a handful of independent theaters, Hong Kong only had Shaw Brothers and Golden Harvest.
Anyone hoping to expand into Taiwan wouldn't use the leftist chain, so filmmakers had only two choices: Shaw or Golden Harvest. Shaw only screened its own films and a few close collaborators.
Thus, most filmmakers had no choice but to show their films at Golden Harvest, making Golden Harvest's dominance natural.
Even without Lin's entry, within a few years Raymond Chow's Golden Princess circuit and Cinema City would emerge, giving filmmakers more options and forcing cinema chains to ease their terms.
"Exactly," Hui agreed, and others sighed. It was indeed hard for producers to profit, especially with delayed revenue.
Lin continued: "My Starshine Cinemas will split box office 50/50 with producers. Promotion, distribution, and print costs remain the producer's responsibility."
He was willing to take 10% less to attract talent. Other costs couldn't be waived — he wasn't running a charity.
"With my current fortune, you needn't worry about me breaking my word. A 10% share of a film's box office is only tens of thousands of dollars. If I cheated you, I'd lose face. That's not worth it."
"Mr. Lin, we believe you," Hui said immediately. With Lin's billions, he wouldn't risk his reputation for such a small sum.
"For producers like you, Mr. Hui, I offer three cooperation models:
Standard cooperation: You produce films, submit them to Starshine Cinemas. After review, they're scheduled. You pay the fees, and after the run, we settle box office within half a month.
Equity cooperation: Starshine Films buys 20% of your company. Your films get faster scheduling and better slots.
Subsidiary model: Your company becomes a Starshine subsidiary, with Starshine holding 51%. You gain full support — better actors, stronger promotion, prime slots. Most importantly, box office split changes to 40/60 — 40% to cinemas, 60% to your company."
"In short, the deeper the cooperation, the greater the support. I won't let partners suffer. But the choice is yours. No pressure."
"Mr. Lin, I can't decide immediately. Let me discuss with my brothers," Hui said. He was inclined to cooperate — the faster settlement and 50/50 split were already attractive. But he needed time to choose the model.
"Of course," Lin smiled. "Honestly, Starshine Cinemas is still under construction. In a month it will be ready to screen films. You have time to decide."
"Thank you, Mr. Lin," Hui said. A month was plenty.
Lin then turned to the other five: "Mak Ka, Raymond Wong, Sammo Hung, John Woo, Tsang Chi‑Wai — unlike Mr. Hui, you don't own companies. You're freelancers.
I invite you to join Starshine Films. Your treatment will be better than now.
Of course, if you feel capable and have capital, you can start your own companies and cooperate with Starshine. The same three models apply."
"Personally, I hope you join Starshine. We lack talent. If you join, you'll easily become senior executives. The pay will be high, and unlike running your own company, you won't bear risk. Executives earn steadily."
Among the eight, Lin favored Hui Kwong‑Kit most among the Hui brothers. But the other five were also highly valued. He hoped they'd join. Still, even if they didn't, cooperation was welcome.
Hong Kong's film circle was small but full of talent. These eight weren't the only ones Starshine would recruit. More invitations would follow, though Lin might not personally appear each time.
At present, filmmaking wasn't hugely profitable. Last year's box office champion grossed just over HK$7 million. After costs, promotion, prints, and taxes, even owning the cinema didn't yield much.
For Lin to personally oversee such a modest business was already impressive.