Chapter 246: Many Taboos for Setting Up Factories in China
Lin Sanqi wants to open a pharmaceutical factory?
Lin Tianhua and Yin Lianyi both looked at him in surprise. The pharmaceutical factory was really too grand and out of reach for a small and micro-enterprise.
Especially Lin Tianhua, all he was thinking about was whether his nephew and boss had lost his mind.
As a loyal minister, if the lord becomes arrogant, it is natural for you to become a minister of advice.
"Xiao Qi, what kind of pharmaceutical factory are you planning to open? From what I know, small domestic pharmaceutical companies are having a hard time right now. Moreover, this is a technology-intensive, high-tech industry. Without scientific research capabilities, you can't open a factory at all."
Lin Sanqi knew that everyone had misunderstood, so he explained with a smile:
"Don't worry, everyone. When I said I wanted to open a pharmaceutical factory, I didn't mean to open it right away, but I wanted the company to start preparing now. The pharmaceutical factory I'm targeting will be a traditional Chinese medicine factory, not a Western medicine factory, so the equipment and technical capabilities required are not too high."
If you make medicine according to the traditional method, all you need is a workshop.
Lin Tianhua said puzzledly: "Even if it is a Chinese patent medicine, it is too late to get involved now.
If it is just low-end products such as Niuhuang Jiedu Tablets and Huoxiang Zhengqi Soda, these Chinese patent medicines are low-priced and have thin profits. There are at least thousands of manufacturers, if not tens of thousands, and the competition is very fierce. It would be better to sell our Cordyceps than to open such a pharmaceutical factory.
If we want to make a lot of money, we must have flagship products like Pian Zai Huang, Yunnan Baiyao, and Musk Heart Pills, but these prescriptions are state-protected secrets. We don’t have such resources and cannot enter the high-end market.
So I don’t think it’s a wise choice to go into the pharmaceutical industry right now.”
Yin Lianyi nodded repeatedly beside her. She studied finance and economics, so she must have her own opinions on the market economy.
"Yes, Mr. Xiaolin, running a pharmaceutical company is far from as simple as we think. The procedures are very complicated. For example, you need to obtain a production batch number, purchase a production line, build a modern laboratory, and have a group of high-tech researchers. All of this requires a huge investment.
We currently have a small fortune. We have over 900 million yuan, and while our annual turnover should easily exceed 2 billion, this amount of money is not enough to launch a major pharmaceutical company."
Lin Sanqi was confident:
"No, if you want to enter the Chinese patent medicine market and produce good medicine, there are only two things you need. One is to have your own flagship product, that is, a secret recipe. The second is to have authentic raw materials, right?"
Several people in the conference room nodded.
"I will find a way to get the raw materials. Even if they are banned by the country, I can still find a way to get them. The current difficulty is to avoid the legal risks involved. I want everyone to work together to find a solution for this.
As for secret recipes, I can tell you now that I already have four. One of them is Babao Wan, which is the counterpart to Pien Tze Huang. The second is Qingxin Zhengfeng Wan, which is the counterpart to Angong Niuhuang Wan.
Lin Musen is a traditional Chinese medicine practitioner and was surprised when he heard this:
"Son, Pianzihuang and Angong Niuhuang Wan are state secret prescriptions. Did you really get them?"
Lin Sanqi chuckled and said, "I did get it."
"Did you get it from 12 old gentlemen?"
“Yes, so it’s absolutely genuine.”
“Hahaha, good good good!!!”
The conversation between the Lin family father and son was confusing to everyone else, but everyone obviously heard that the Lin family father and son had a secret, and there were 12 experts behind them providing technical support?
Lin Tianhua asked uncertainly:
"Xiao Qi, do you mean that we can also produce Angong Niuhuang Pills and Pian Zai Huang ourselves? Will there be any patent disputes?"
Lin Sanqi once again affirmed:
"I've already inquired about it. Angong Niuhuang Wan and Pianzihuang are generic names, not trademarks. For example, there are currently 132 manufacturers in China producing Angong Niuhuang Wan. Each of these manufacturers can use the name Angong Niuhuang Wan, and at most they can register it as a trade name.
There is a small problem with Pian Zai Huang. Zhangzhou Pharmaceutical Factory wants to monopolize the name of Pian Zai Huang, but we can sue them on this matter. After all, the recipe of Pian Zai Huang was handed down from the Ming Dynasty. It does not belong to any factory or private individual, and no one can monopolize it.
By then, we can produce Lingnan Tang brand Angong Niuhuang Wan and Pien Tze Huang, and their efficacy will be no less than that of Tong Ren Tang and the Zhangzhou factory. By leveraging the hype surrounding these two medicines, we can quickly expand the market."
Lin Tianhua asked worriedly, "Can the efficacy really be exactly the same?"
Lin Sanqi replied confidently:
"The efficacy will only be better because the ingredients in those two medicines have been replaced with artificial materials, while I have access to natural ingredients and a complete set of traditional pharmaceutical manufacturing techniques. I am confident that I can surpass Tong Ren Tang and the Zhangzhou factory."
Lin Tianhua was somewhat skeptical:
"If the efficacy is better, then I am confident that it will be quickly promoted. Everyone knows that we at Lingnan Hall only sell good medicine, and our reputation has long been established. Haha."
Uncle Lin suddenly interrupted:
"The use of natural medicinal materials is prohibited in China under the Animal Protection Act. We can open a pharmaceutical factory in Hong Kong or Macau, where there are not so many restrictions. We can then sell our products from Hong Kong to the mainland. The worst that can happen is that we have to pay a tariff."
Lin Sanqi was a little surprised: "Wow, this is possible? Hong Kong is also part of our country. We can't use it, but they can?"
At this time, Uncle Lin took out his phone, walked out of the meeting room, and dialed a number directly to inquire on the spot.
After returning a short while later, Uncle Lin gave a positive answer:
"Natural materials can be used in Hong Kong. I just asked someone and found out that Tong Ren Tang has opened a pharmaceutical factory in Hong Kong. They circumvent domestic legal restrictions and use natural materials to make traditional Chinese medicines.
But there is a problem here. Natural Chinese medicinal materials, such as musk and bezoar, are not allowed to be exported domestically. If we set up a factory in Hong Kong, we will be at a loss if we cannot get good raw materials.
Lin Sanqi thought that others could not get natural medicinal materials, but he could, such as natural musk, natural bezoar, etc., which he could get in 1960.
The key is that you may not even have to go through the trouble of setting up a factory, all you need is a shell company, because the pharmaceutical workshop can be placed in the Changping branch in 1960, and then sales can be carried out in 2013.
Setting up a pharmaceutical factory is just a cover, a facade for outsiders to see.
Then there is nothing to worry about.
"Alright, today's meeting has two agendas. Uncle Shi, I'll trouble you to set up the Lingnan Hall's field office. Also, please keep an eye on the pharmaceutical factory. We'll have to start it sooner or later, so it's best to make plans early."
After everyone left, Lin Musen suddenly asked urgently:
"Son, did you really get the secret recipe?"
Lin Sanqi also lowered his voice and said:
"Yes, and I got not four secret recipes, but more than 80 secret recipes, all of which are the secret recipes of the 12 old Taishans. If all of these secret recipes can be transformed into medicines, even if only one tenth of them are successful, we will make a fortune. Oh, Dad, wait a minute."
Lin Sanqi pushed the door open and walked out of the chairman's office. After a while, he came back with a wooden box in his hand.
"Dad, look, these are the recipes for the four secret ingredients, as well as the production process."
Lin Musen's eyes lit up with excitement. "Baby, this is really a baby. I never thought our family would have such luck."
"Dad, there's more. Not only did I get the secret recipe, I also got over 2,000 medical books. These are all out of print. Are you interested in studying them? But I promised those masters that I would return them to their hands later."
Lin Musen slapped Lin Sanqi on the head:
"Stupid, we can't get the original, but we can make a copy."
Lin Sanqi slapped his forehead and said, "Ah, ah, I'm so stupid! I originally wanted to copy all the medical books by hand, and I was worried that it would take forever to copy so many medical books."
Lin Musen solemnly instructed:
"Those medical books didn't make it to later generations; they must have been destroyed during those ten years. Now you have only the rarest copies. Hurry and have them copied. Even if we don't use them in the future, you can still leave a valuable legacy of traditional Chinese medicine for the country."
Lin Sanqi thought that his father was truly selfless, as he was planning to pass on the family fortune to himself.
Not long after Yin Lianyi returned to the office, Lin Sanqi rushed in again:
"Bitch Yin, hurry up and buy a few more copiers. I have over 2,000 books to copy. I'll leave this to the four beautiful ladies in the Finance Department. Don't let anyone else get involved."
Zhong Yangyang was fed up: "Wow, boss, we're in finance. How long will it take us to copy over 2,000 books?"
Lin Sanqi stretched out a palm and shook it:
"Once the copying is done, I'll give each of you 100,000 yuan as a labor subsidy. Do you want to do it? If not, I'll find someone else."
Zhong Yangyang jumped up immediately: "Let's do it, boss, as long as the money is in place, don't treat me like a human being tonight."
Mo Zilan also shouted exaggeratedly:
"Who else is qualified to handle this matter besides our Finance Department? How can those rough guys in the Sales Department handle such delicate work? We have to personally share the burden with General Manager Lin."
People who work in finance are very good at doing math.
There are more than 2,000 books, and each person is only responsible for copying more than 500 books. It is equivalent to getting 200 yuan in labor fees for copying one book. If you copy 20 to 30 books a day, you can earn several thousand yuan in extra income.
Only a fool wouldn’t do this if he could get a high salary and high subsidies.
While the others were still arguing, Wang Manke, who hadn't said a word, had already dialed the number of the office supplies dealer:
"Hey, Boss Qian, yes, you should immediately prepare four state-of-the-art copiers, and also prepare more ink cartridges and paper. Yes, send them over immediately, and pay in cash."
When Lin Sanqi heard this, sweat started dripping down his face, thinking that this little girl was really good at biting a dog without barking.
After dealing with the company's affairs in 2013, Lin Sanqi traveled back to 1960 again.
When he drove a large truck back to the Changping branch the next day, he found two large trucks parked in the yard and several men in military uniforms were waiting for him.
"Hello, Comrade Lin Sanqi, we are from the Digital Hospital..."
(End of this chapter)
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