Lianhua was formally registered in March 1930 in Hong Kong by Luo Mingyou (Law Ming-yau) and his partner, director Li Minwei (Lai Man-Wai). In order to resist the invasion of American films that dominated the box office in Shanghai and other cities, Luo realized he would have to produce films that were equally attractive artistically and equally rigorous in the business of production and distribution. The Company put advertisements in movie trade journals that proclaimed it was a modern company that aimed to create a Chinese Hollywood. Luo's plan was to build studios in Beijing, Shanghai and Hong Kong, to open a school to give up to date training for both technicians and actors, and to integrate the management of all these elements into a vertical organization on the Hollywood model.