432. Chapter 428: Should the School Run a Pharmaceutical Factory?



Lin Sanqi has its own difficulties. The "African region" where it wants to export is still too backward and completely lacks modern industrial and chemical bases.

In 1961, China couldn’t even produce the most basic medicines, let alone high-end technologies.

If we want to improve bioengineering and pharmaceutical technology, we must start from the basics. Without the foundation, the superstructure cannot be built.

Now writing novels also requires logic.

So I have to find an excuse.

Thinking of this, Lin Sanqi quickly sat closer and could only continue to make up lies and excuses:

"No, no, no, Teacher Zhang, I just need some basic medicines. These medicines are all exported to Africa or South America. Those places are poor and they can't afford expensive medicines. I just want something cheap and affordable."

Dean Wang smiled and said, "Exporting to Africa again. You're doing very well in foreign trade."

Dean Xiang was joining this small group for the first time and was a little confused:

"Business in Africa is tough. The black people in Huadu are dishonest. I've heard many companies would rather not make money than ship goods to Africa, for fear of not getting paid."

Dean Zhang helped explain a few words: "Africa also depends on the region. Last time, Xiaolin exported a large number of second-hand instruments to Africa and made a lot of money."

Professor Lou pondered for a moment:

"If you're exporting to Africa, it's certainly not that great. But if you produce domestically and then ship to Africa, wouldn't the production costs be too high? You could just invest and build a factory there."

Lin Sanqi quickly waved his hands:

"No, no, it's not safe over there. There's constant fighting and chaos. If I build a pharmaceutical factory, I'll become a sitting duck for all sorts of armed groups. People will come every day to buy pharmaceuticals for free, or collect protection money. How terrifying."

This reason is quite sufficient. After all, human lives are worthless in Africa. Those who dare to invest in Africa are all large state-owned enterprises. Only with the support of the country can they guarantee safety.

At this moment, Dean Zhang of the School of Pharmacy's eyes suddenly lit up, and he obviously had an idea:

"Xiao Lin, since you want to open a factory, it will take at least a year or two to buy land, handle paperwork, buy machinery, and hire workers. Otherwise, how about you just buy a pharmaceutical factory? The drugs you need are low-end anyway, so you don't need a lot of advanced production lines."

Lin Sanqi's eyes lit up as well:

"Yes, that's a good idea. I've also thought about acquiring a pharmaceutical factory somewhere. It's just the end of the Chinese New Year, and I haven't gone out to investigate yet."

Dean Zhang was relaxed, leaning back in his chair. "No need to go out of town, our school has a factory run by the school."

"School-run factory?"

It was the first time that Lin Sanqi heard that Huadu Medical University also had a school-run factory. He was a little embarrassed for a moment. After all, it was not easy to take over a school-run factory.

Because there is already a bad example,

For example, Wahaha started out as a school-run factory. After it became a joint-stock company, state-owned assets and employees held a large share of the shares.

When Boss Zong was alive, the relationship between the two sides was peaceful. But as soon as Boss Zong died, some people wanted to kick Xiao Zong out. They did something very dishonest and wiped out the entire family.

Another bad example is the Dongguan local enterprises Jianlibao and Jiaduobao, which were eventually destroyed due to various entanglements with some indescribable groups. Therefore, Lin Sanqi is not very willing to get involved in such collective enterprises.

Seeing that Lin Sanqi was silent and had no opinion, Dean Zhang became anxious:

"Xiao Lin, there's no one around here right now, so feel free to tell me any concerns or ideas you have."

Dean Wang knew the inside story, so he pointed out Lin Sanqi a few words:

"Xiao Lin, our Huadu Medical College actually has quite a few school-run industries. Have you heard of the Southern Pharmaceutical Factory? This is our school-run factory. To be more precise, it's an affiliated enterprise of Dean Zhang's School of Pharmacy.

The factory was established to address the shortage of educational funding. The government also encouraged schools to set up their own factories and raise their own funds. So the School of Pharmacy took advantage of its advantages and established a pharmaceutical factory.

This is the same nature as the several hospitals affiliated with our Huadu Medical University. They are under the dual leadership of the school and the college. They are also collective in nature and have a staffing structure.

In the 1990s, the pharmaceutical factory was quite prosperous. Not only did it earn a ton of money for the school, it also became a practice base for the School of Pharmacy. It was even praised by the higher-ups as a model of industry-university-research integration, right?

Dean Zhang also sighed at this time:

"In the 1990s, it was still a seller's market. We could sell as many drugs as we produced, and the demand for our products exceeded the supply. As a result, Southern Pharmaceutical Factory enjoyed a period of prosperity, but it stopped in the 21st century.

It’s okay for us to talk about it ourselves. One reason is that pharmaceutical companies are too strictly regulated. At the beginning, the former dean of our School of Pharmacy wanted to advertise on TV, but the school did not approve the advertising fees. They said how could our collective enterprise pursue profits?

Later, we applied to upgrade our production lines. Importing five pharmaceutical production lines from Japan would have cost $20 million, but the university again refused. The reason was that the university was supposed to help your pharmaceutical company make money, and now you're asking them to pay for it?

The final problem is overstaffing. The leaders of the pharmaceutical factory are all part-time professors from Huadu Medical University. They are all regular employees, and it doesn't matter how much they work. Sending a bunch of scholars to run a business with high expectations but low skills is a predictable outcome.

Originally, the Southern Pharmaceutical Factory was still able to maintain its operations, but two years ago, the director of the factory, Old Xu, was imprisoned for corruption, which also implicated several school leaders. It was at this time that the old principal stepped down.

Now no one wants to touch this pharmaceutical factory, and it continues to rot.

Mr. Xiaolin, I will not hide it from you. Southern Pharmaceutical Factory has now become a burden to our School of Pharmacy. Not only can it not make money for our school of pharmacy, but we have to subsidize the pharmaceutical factory with a large sum of money.

Our teaching funds are already scarce, and now we have to support such a "silly son", which is like adding insult to injury. Now, just as you have this need, we have this pharmaceutical factory, and we can sell it to you, our own student, and no one can say anything wrong.

Several other deans also spoke on behalf of the School of Pharmacy:

"Yes, Xiaolin is a student we trained ourselves, so it's perfectly legitimate for him to take over the pharmaceutical factory."

"The pharmaceutical factory is pretty good. The land alone is worth a lot of money. The main problem is that collective enterprises are too rigid."

"The scholar's rebellion failed in three years. If we can't run the factory ourselves, we should let it go."

Lin Sanqi's eyes kept rolling. He was not completely confident in these old men. It was unlikely that they would deliberately harm him. After all, there was a relationship of interest transfer between the two parties.

Lingnan Hall funded their research projects, and Lin Sanqi and his group also paid money to give antiques to several deans privately. It would be unreasonable and unethical for them to deliberately harm him.

But as the saying goes, you should not have the intention to harm others, but you must be on guard against others, because what if someone does anything to get rid of the burden?

"Dean Zhang, where is this Southern Pharmaceutical Factory?"

"It's in Huangpu, not far away, and it covers over 300 acres. It has a ready-made research building, ready-made factory buildings, and even ready-made equipment and workers. You can take over and produce the medicine you want."

300 acres is not a small area. Lin Sanqi thought that he couldn’t even get 10 acres of land in Hong Kong.

Huangpu District is located in the east of the urban area, only 20 to 30 kilometers away from the city center. If you go there from Tianhe, it is more than 10 kilometers away, which is very close and can be considered a prime location.

But Lin Sanqi still had another concern and decided to speak it out directly:

"President Zhang, I have two questions. One is, how much do I need to buy this pharmaceutical factory? The other is, are you planning to sell it directly to me, or are you planning to form a joint venture?"

Dean Zhang is also a straightforward person, and he said directly:

"I don't have the final say on how much the pharmaceutical factory can be sold for. We need to have an asset appraisal. Of course, I can offer you the lowest price. I will definitely lower the price to the lowest. Based on the appraisal price a few years ago, the pharmaceutical factory's total assets are currently approximately 1.5 billion yuan."

Yin Lianyi almost spit out a mouthful of tea beside her.

Is 1.5 billion expensive? It’s really not expensive. Don’t forget that Southern Pharmaceutical Factory also has a large piece of land.

But Yin Lianyi was worried that Lingnan Tang's capital chain could not support such a pharmaceutical factory. All she knew was that Lingnan Tang's profit last year was only 500 million yuan. Now it wanted to take on a 1.5 billion project?

By then, a loan will be necessary, and Lingnan Hall's debt ratio will reach 200%, or even more. After all, Lingnan Hall is simply a shell company with no assets. How can you get a loan with mortgage?

(She didn't know how many medicinal herbs and jades Lin Sanqi had)

The key point is that Lingnan Tang took over this pharmaceutical factory, which produces low-end drugs. Low-end means small profits and high competitive pressure. If things go wrong, the entire company may be dragged down.

So Yin Lianyi was extremely reluctant to let her boyfriend take over this pharmaceutical factory. The risk was too high and there was no profit in sight.

In fact, if we infer based on common sense, Yin Lianyi's worries are not unreasonable, but Lin Sanqi is not a person who plays by common sense.

Lin Sanqi was planning to spend 1.5 billion to buy a pharmaceutical factory. It seemed like a lot of money, but then he would be able to produce any medicine he wanted, especially tuberculosis medicine.

If these tuberculosis drugs were sent back to 1961, they could be exchanged for a lot of rare supplies for him.

For example, it can be the old three things: ginseng, cordyceps, musk, etc., or it can be various precious jades, various teas, tangerine peel, Maotai liquor, etc.

If all else fails, you can go to the Ming Tombs and tear down the Ling'en Hall of any emperor, and sell him pieces of golden nanmu wood at a discount. A piece of golden nanmu wood that is so thick that three people can hug it must be worth tens of billions, right?

Should there be punishment?

Anyway, any supplies brought over from 1961 would be worth tens or hundreds of billions. Compared with the current pharmaceutical factories worth 1.5 billion, it's just a drizzle. This business can be done.

Dean Zhang saw Lin Sanqi nod slightly, and he became more confident:

"Also, is the pharmaceutical factory going to be sold to you as a package, or as a joint-stock partnership? The school has discussed this before, and they suggest a joint-stock partnership with the introduction of external capital. What do you think, Xiaolin?"

Lin Sanqi was shaking his head like a rattle at this time:

"I don't accept joint-stock cooperation." (End of this chapter)

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