After several months of development, Xia Jingshu's company in Beijing has been successfully established, and a number of suppliers have been contacted. Some workers have also been recruited, and in a few more months, it will start generating revenue.
Da Wa is a finance major, while Hua Zi and Wei Han are both economics majors.
The first batch of college students after the resumption of the college entrance examination were all treasures. Xia Jingshu managed to get three of them at once, so he wouldn't have to worry about the company's future development.
Not long after the start of spring in 1980, Xia Jingsheng, who had learned business from his father since childhood, decided to go into business after confirming that the country's direction had truly changed.
Xia Jingshu's main research area is electronics and electrical appliances;
Xia Jingxing has developed an interest in real estate and is now making great strides in the field.
After taking stock of the market gaps and the resources at his disposal, Xia Jingsheng set his sights on Yu Rujia.
Xia Jingsheng: "Rujia, your pharmacy only sells some high-end medicines, and there is a huge shortage of ordinary medicines. I want to join hands with you to create a pharmaceutical company."
"You provide the technology, and I'll handle everything else. I'll also provide the funding. What do you think?"
The hundreds of prescriptions that Yu Rujia donated in the past were effective, but due to limited resources, most of the medicines had to be prioritized for supply to state-owned institutions, with only a small amount flowing to the general public. This represents a huge market.
Having lived through many lifetimes, she could easily write down several prescriptions for the same medicine, and their effects would never be inferior to those of the prescriptions she donated.
Xia Jingsheng believed that the pharmaceutical field had great potential precisely because he considered this point.
Once he has secured the market, even if the country's drug production increases, it won't be easy for them to compete with him for market share.
Yu Rujia: "Duoshou's pharmaceutical technology is very advanced, why don't you cooperate with them?"
Most of the medicines in her pharmacy were supplied by Duoshou, and Duoshou could also provide ordinary medicines from Xia Jingsheng Pharmaceutical Factory.
Xia Jingsheng: "Of course I will bring Duoshou in, but I feel more at ease with you here."
Yu Rujia: "I don't intend to work myself to death."
Xia Jingsheng: "You provide the prescription, and I'll have Duoshou or his team conduct the experiments. If there are any problems, they'll come to you for guidance. It won't be too tiring."
"If you're worried, I can assure you that I'll never contact you more than three times a month."
Having been together for so many years, he knew Yu Rujia's personality well. When something happened, she was capable; when nothing happened, she was the boss, and anyone who dared to cause her trouble would definitely be made uncomfortable.
But with a pharmaceutical industry leader by our side and such a huge market gap, it would be a waste not to bring him in and do something with him.
She's busy for at most three days a month. With her prescription, the company will definitely make a fortune. This business is worth doing.
Yu Rujia: "How many shares are you planning to give me?"
There's hope! Xia Jingsheng happily took out the pre-prepared profit sharing: "You give 39%, Duoshou gives 10%, and the remaining 51% is mine."
This is a huge concession, giving Duoshou a 10% share. Duoshou has always listened to Yu Rujia, and even his own father, Xia Jingfan, is no match for him.
Xia Jingsheng took this into consideration, which is why the combined share for Yu Rujia and Duoshou was only 49%.
In terms of shareholding, Xia Jingsheng has absolute control over the company; but from a technical point of view, if Yu Rujia and Duoshou were to withdraw, his company would be unable to function.
Xia Jingsheng was in charge of managing the funds and clients. He wanted to take the majority of the shares, and Yu Rujia had no objection because she had other requirements. These conditions would greatly limit Xia Jingsheng's ability to make money.
Yu Rujia: "I have two requests. If you agree, I can contribute my technology to the company and share profits according to your shareholding."
Xia Jingsheng sat up straight: "Go on."
Yu Rujia: "First, the drugs made using my technology must be entirely in Chinese, with no other text on them, including English."
"Secondly, the final selling price of drugs in China can only be 10% higher than the cost price, while the price sold in foreign markets is at least ten times the domestic selling price."
Xia Jingsheng's eyelids twitched: "Do you know what this means?"
It's perfectly fine for the final domestic selling price to be 10% higher than the cost price.
However, English is an international language, and traditional Chinese medicine has no international market. Raising prices tenfold in the absence of a common language is tantamount to giving up this huge overseas market.
Yu Rujia knew what he was thinking: "You mean that by doing this, we are giving up the overseas market, right?"
Xia Jingsheng: "Isn't that right?"
Yu Rujia: "That's because you don't have a specific understanding of my medicine. Let me ask you, is the best medicine in China traditional Chinese medicine or Western medicine?"
Xia Jingsheng had been back for a few years and was working within the system, so he naturally had some understanding of drugs.
Xia Jingsheng: "The most commonly used medicines in China are Western medicines, but the most effective medicines are traditional Chinese medicines."
However, few people can buy pills made from traditional Chinese medicine, and some people's impression of traditional Chinese medicine is still based on strong medicinal soups.
Yu Rujia: "That's it. Good wine needs no bush. My pharmacy's products are priced so high, and I haven't done any advertising or tried to attract customers, but in just one year, they're already frequently sold out."
"The same goes for ordinary Chinese medicine pills. Don't just look at the fact that I only give you a 10% profit margin. You know how big the domestic market is—over a billion people."
"How much medicine can your company produce right now? It will take at least several years to capture the domestic market. Several years is enough time for people to realize how effective our pills are."
"As times progress, more and more foreigners will come to our country, and they will definitely come into contact with our pills one day."
"Once they've had a chance to experience it, they'll understand the effects and they'll automatically promote it for us. From one person to two, three, and countless people, one day, 'Made in China' will be all over the world."
Xia Jingsheng's blood boiled involuntarily. Currently, Chinese products are finding it difficult to gain traction internationally, and people in China with the means prefer foreign goods. He never imagined that "Made in China" would one day be found all over the world.
It should be said that there are very few people in China who would dare to think like this nowadays.
Yu Rujia has always had a broader perspective than most people, and perhaps her words will one day come true.
Xia Jingsheng took a deep breath to calm himself down before slowly saying, "The domestic price can be as you say, but the overseas price should be at least ten times higher than the domestic price. This will create a lot of middlemen."
With such a large price difference, there must be some shrewd people who buy the medicine at the domestic price and resell it abroad.
Even if the selling price is five times the domestic price, there are still many people buying and selling between China and abroad.
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