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MISSION STATEMENT LETTER FROM THE MANAGERS

 

 

We would like to take this opportunity to welcome you to Trans Global Capital LLC!

 

Nowadays people lead busy lives and most of us look forward to activities that give us a break from it all.  That’s why entertainment is so important for people of all ages, all around the world. There are many forms of entertainment to choose from, but there is one that most everyone enjoys! Whether you like to watch at your local cinema, on a home entertainment system, on a computer screen, or even on your smart phone, we all love a good movie!

 

Trans Global Capital is a California based company that looks for opportunity in fast growing economies around the world. With steady entertainment industry revenues coming from the established markets of North America, Europe and Japan and new revenues from emerging markets in Asia and South America, we are convinced that opportunity is indeed knocking in the entertainment industry! 

 

Because of technology creating new revenue streams, the entertainment industry as a whole will benefit by an increase of 26% in 5 years from $500 billion in 2013 to $726 billion in 2018! Projections from expert analysts state the world movie market will remain strong. U.S. Box office revenues will continue at 3% growth annually and the digital downloads and screenings of movies and television is projected to increase at a whopping 18% a year over the same 5 year time period. The U.S. movie and television industry has always been the top individual market in the world and should continue to be a solid performer for investors, but what if you awakened tomorrow to find the world movie and television industry had doubled in size? Well we're all not dreaming .....it has!

 

Our Company has targeted a sector of China’s economy that has been growing at an astounding 30% a year since 2005, and is projected to continue growing at 30% a year for the next 10 years! We are certain an investor with global investment aspirations would want to be in a position to capitalize from an industry that is growing at a pace of 30% a year! That sector of China's economy is the movie and television industry!

 

When we first started doing business in China ten years ago, our first impression was one of amazement as we observed the multitude of people coming and going in every city we visited! With close to one billion consumers that reside in cities in China that expand in size overnight, the Chinese will jokingly tell you that their national bird is the crane!  Among these city dwellers, relationships have always been an important part of the culture in China.  Packed restaurants, busy spas, and private karaoke rooms known as KTV establishments, are favorite daily and nightly destinations for the socializing people of China. Coming from Hollywood we thought what if the Chinese became fond of going to the movies? What kind of profits could be realized? When we brought up the subject of the movie industry to some of our Chinese business partners, we received mixed responses. But that was then and things have changed!

 

The dial was about to be turned to the “on” position.

 

The year was 2004 and the movie industry in China was in its infancy. Over the next few years we would witness the early stages of an awakening that will never be duplicated again! This awakening is now on cruise control moving at 100 miles per hour! The movie and television industry is in full throttle in this country of over 1 billion consumers! The resulting bottom line? China movie and television revenues are absolute rocket fuel for an investor!

 

Being familiar with our stock market, you are certainly aware that the majority of Investors have done quite well for themselves by investing in Companies that do business in China. Its no secret there is a huge demand for American know-how, American brands and American products.  Since China is the world’s number 1 manufacturing base and is the fastest growing economy, we contend China is a market that an astute Investor should not ignore.

 

China’s cheap labor costs and huge consumer revenues have caused stock prices to soar and in the process U.S. investors have made a killing!  But that’s not all. Chinese businessmen and investors have also made a killing and have become rich overnight!   In the last ten years there have been many multi-millionaires and billionaires created in both the USA and China due to cheap labor and consumers in China. Case in point, we are all aware Chinese cash buyers have helped stabilize the USA real estate market. The middle and upper class are expanding inside China every year and what we thought would eventually materialize has. The Chinese, especially the younger Chinese generation, has fallen in love with Hollywood style movies and television shows! China has gone from being the 15th ranked box office to the world’s second largest box office 10 short years.  And by 2018 China will be the number 1 box office in the world! By 2020, it should triple the size of the healthy USA box office! 

 

Now here’s a well known statistic. Over the last ten years Hollywood movies generate 50% of the box office revenues in China! With over 1 billion ticket buyers and 750 Million internet users in China that’s a whole lot of revenue for Hollywood Companies and their investors!

 

What's in it for you you may ask? We propose your participation in the Trans Global Capital Investor Fund.

(Please see this website's section on "Fund" for details)

 

Trans Global Capital has been doing business in China for 8 years now. We have cultivated valuable contacts and signed important contracts for this new growth industry. Our Hollywood personnel have been successful in the entertainment industry for decades. When it comes to the business of Hollywood China Co- Productions, we know it up close and personal.

 

The Chinese government has figured out that movies are a great way to spread Chinese culture, increase tourism, and introduce their products not only to China’s 1 billion consumers, but also to billions of consumers all over the world!   Because of this new China conviction for the entertainment industry China will continue to open 10 NEW movie screens every day and within ten years, China is estimated to have built and opened over 170,000 movie screens! That’s more than 4 times the 40,000 North American screens!

  

Its obvious, based on actions, the Chinese are all in on this development as evidenced by China based investment totaling in the billions of dollars! Take China's huge real estate company Wanda Dalian for example. Wanda recently purchased the AMC Theater chain which accounts for a big percentage of the movie theater screens in the USA. Wanda Dalian owns many of the screens in China and is currently building the largest movie studio in the world in the eastern city of Qingdao China. Wanda also has in put in place production funds to support production at the new facilities. Most industry experts state that a Hollywood production company should have a China strategy from this point forward. That's why Hollywood entertainment companies and investors in the know, are scrambling to position themselves to reap the rewards. And the rewards are many!

 

Currently billions of production dollars are being made available to movie producers who have qualified "packaged" projects. Since China Funds insist on "cooperations with Hollywood", these sources of financing will not provide funding to projects that are not "packaged". Therefore a project must first be "packaged" with Hollywood talent before gaining secondary China funding.  Once a project is "packaged", secondary funding could be as much as 100% of a production's budget.

 

A "packaged project" is defined as a project with approval from SARFT (China Government State Administration of Radio, Film and Television), a bankable director attached, and one or more contracted A-list talent. This requires a Hollywood Company to provide the initial funding to "package" the project, which in turn gives the China financing confidence in that "packaged" project. This is the niche the Trans Global Capital LLC Fund will provide. A packaged project then can attract additional private placement dollars from companies wanting exposure for their goods or services in the world marketplace as well. 

 

In order to access these available production funds and subsequent revenues through a Co-Production in China, foreign companies must position themselves legally in China. Trans Global Capital is registered as a foreign entity licensed to do investment and production business in China. With offices in Beijing and Qingdao, we have forged valuable relationships and executed important contracts with key China based companies, personnel, and most importantly China based Investment Funds. Since only 34 imported or "outside" movies are allowed into China each year, Co-Production is the smart way for a Hollywood Production Company to guarantee itself both China Investment and China distribution. To qualify as a Co Production the movie must be shot in IMAX or 3D, have at least 1 Chinese citizen cast in a leading role, the production budget must utilize a minimum of 33% China funding, and the majority of the movie must be made in China.

 

Another key factor is the script. Since Hollywood writers have never had to receive approval on the content of their scripts, most Hollywood based writers have to rethink their approach in order to weave a story that follows the guidelines of SARFT and implement some Chinese culture.  Since Trans Global Capital LLC Managers have years of experience doing business in China, we can quickly evaluate and fine tune a project to appeal to the Chinese audience and obtain SARFT approval. We have and will continue to develop selected projects that will be embraced by both the Western and China markets. Our project about the life story of Vicky Song is an example of a movie that will be embraced by SARFT, China Funds, and of course 1 billion movie lovers!

 

It’s obvious any investor prefers to evaluate global opportunities in their early stages.  Being invested in the right place at the right time is an important key to success and we firmly state that Trans Global Capital and our investors are in position to be in the right place at the right time to tap into this strong growth industry. We are convinced the implementation of our business plan represents an entertainment industry opportunity of a lifetime.

 

Again thank you for your confidence in Trans Global Capital LLC.  Our lines of communication with you are always open and we invite you to join us in this exciting and rewarding business adventure. Welcome aboard! We look forward to a rewarding and profitable relationship!

 

 

 

Sincerely,

 

 

 

The Managers of Trans Global Capital LLC

 

 

 

 

 

 

 

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