What investors value

The Piano in a Factory set an example for Chinese moviemakers to make good films with small budgets.

Zhang Xianliang, a writer who founded the China West Film in the Ningxia Hui Autonomous Region, pointed out only a few of the 100 classic movies of the 20th century chosen by Americans are mega productions.

"The future of low-budget films is promising because low-budget productions usually have higher returns on investments, although they can not match blockbusters in box office," said Zhang.

Two low-budget movies directed by Chinese director Xie Jin (1923-2008) in the 1980s, Herdsman and Hibiscus Town, were box office successes too. Herdsman, a 1982 production adapted from Zhang's novel only cost 1 million yuan ($150,000); Hibiscus Town, made in 1986, cost 4 million yuan ($620,000 million). The latter, with the average ticket price at less than 1 yuan ($0.15) at that time, yielded more than 100 million yuan ($15 million) at the box office.

"The two movies addressed contemporary Chinese issues, depicted the 'cultural revolution' (1966-76), and reflected common ethics and aesthetics of one generation, which is why they resonated with millions of audience members," said Zhang. "Whatever the investment, we have to produce films that are both visually pleasant and emotionally striking."

Crazy Stone, released in 2006, is another example of success for Chinese low-budget films. Produced with less than 3 million yuan ($460,000), the film earned 30 million yuan ($4.61 million).

Behind the success of Crazy Stone was an investor who had an eye for good screenplays and gifted directors.

At a film investment fair in March 2005, Ning Hao, director of Crazy Stone, and his film script aroused the interests of Hong Kong superstar Andy Lau. Lau has his own studio for film investment, production and distribution. He decided to invest and advised Ning to localize the story. As a result, Ning chose Chongqing.

"Investors need to be farsighted and have the right mindset when they decide to invest in a film," said Wu Jun, General Manager of the Guangzhou Branch of GF Fund Management Co. Ltd. "No one knows whether an investment will be profitable at the beginning and I think Lau is quite aware of it. Even if he won't reap huge from the investment, it's good to support a promising director to grow."

Several years ago, CFG launched an investment program to support production of young film directors.

"Returns from investments were not encouraging, but the situation has improved after Ning Hao, and Lu Chuan, director of City of Life and Death, and other established young directors were included to court more confidence from investors and producers in the program," said CFG manager Zhao Zuohai. "One problem that still plagues us is how to get box-office recognition for young directors' works and therefore yield returns for producers," said Zhao Zuohai, a CFG manager.

Marketing efforts

"Equal importance should be paid to marketing, the finishing touch to ensure box-office success for a movie," said Wang Dayong, President of CashFlower Culture Communication Co. Ltd, the marketing agent of The Piano in a Factory. "We largely attribute the movie's improved box-office performance several weeks later to effective word-of-mouth marketing."

Unlike blockbusters, low-budget films cannot secure contracts of most theaters nationwide. That's why Crazy Stone selected some cinemas in Beijing and Shanghai, expecting the effects of word-of-mouth marketing. The high acclaim from the audiences attracted more curious viewers to the theaters.

It's also important to find an ideal screening time and avoid competing for viewers with blockbusters, said senior film distributor Gao Jun.