Southern Pharmaceutical Factory.
A Coaster van drove into the factory area and several people in executive jackets got out of the car. Lin Sanqi and Yin Lianyi were the last to get off.
As soon as I got off the car, several pharmaceutical company executives rushed out of the building. One of them was a middle-aged man in his 50s who rushed straight to Dean Zhang of the School of Pharmacy:
"Director Zhang, why didn't you notify us in advance when you came to inspect our work?"
Dean Zhang Yuezheng shook hands with the visitor and then introduced him to Lin Sanqi:
"Xiao Lin, this is Huang Yushu, the general manager of the Southern Pharmaceutical Factory. He used to be a teacher at our School of Pharmacy, so he's half your teacher."
"Old Huang, this guy is a disciple of Dean Wang Chengwen of the School of Clinical Medicine, and also the owner of Lingnantang Pharmaceutical Company. So, we're all family, haha."
Lin Sanqi took advantage of the situation and quickly extended his hand enthusiastically:
"Then I won't call you Mr. Huang anymore. It's more intimate to call you Teacher Huang."
Huang Yushu was also surprised when he saw Lin Sanqi:
"I know Lingnan Hall. It's a new pharmaceutical company that suddenly rose to prominence last year. It's incredible. Now everyone in southern China knows about it. If you want to buy high-end Chinese medicinal materials, you have to go to Huadu Lingnan Hall. I didn't expect Mr. Lin to be so young, and he's even an alumnus of ours."
When it comes to socializing, people always like to build relationships, so the "Huadu Medical University Gang" naturally formed a small circle.
"By the way, Dean Zhang, President Lin, and several other deans are here at the pharmaceutical factory today..."
Dean Zhang Yuezheng nodded at Lin Sanqi and explained:
"Director Lin is very interested in our Southern Pharmaceutical Factory, so today, taking advantage of our Sunday off, we old guys are accompanying Xiao Lin to visit the factory. Old Huang, we're all family, so just give us a factual introduction to the factory."
Huang Yushu now has a dual identity. One is the director of the Southern Pharmaceutical Factory, and the other is a middle-level cadre and full-time teacher at the School of Pharmacy of Huadu Medical University.
Because the Southern Pharmaceutical Factory is a school-run factory and has not yet undergone shareholding reform, its senior executives are almost all full-time teachers, another type of "red-top businessmen".
Dean Zhang Yuezheng said he was just taking a look, and in fact, he really was just taking a look. After all, it involved a medium-sized pharmaceutical factory with 1.5 billion yuan in assets, and it was not something a small dean like him could have the final say on.
This requires the approval of Huadu Medical University and the State-owned Assets Supervision and Administration Commission of Dongguan Province.
Huang Yushu immediately understood Dean Zhang's hint and asked in a low voice, "Xiao Lin, are you planning to acquire our pharmaceutical factory or form a joint venture with us?"
Lin Sanqi answered clearly: "If there is an intention to acquire them, we will take them all."
Huang Yushu understood and knew how to introduce this pharmaceutical factory, so he led everyone towards the factory.
"Director Lin, our Southern Pharmaceutical Factory currently covers an area of 330 mu and has 240 employees. The types of drugs we have launched are mainly concentrated in basic antibiotics, such as amoxicillin, azithromycin, etc.
Our products also include traditional Chinese medicines, such as Niuhuang Jiedu Tablets and Compound Licorice Mixture. Mr. Lin, this way, please. You need to change into isolation suits, a hat, and a mask before entering the workshop.
Lin Sanqi was a little strange:
"Why do our Southern Pharmaceutical Factory produce both Chinese and Western medicines?"
Huang Yushu said a little embarrassedly:
"There's nothing we can do. Our products aren't competitive enough, so we can only produce whatever makes money, whether it's Chinese or Western medicine."
Dean Zhang added:
"Xiao Lin, the pharmaceutical factory's productivity is not strong, not because we lack technology. We have the support of our entire pharmacy school. Apart from some patented drugs that we cannot produce, what other drug information do we not have?
The problem lies in money. The school has been reluctant to update and upgrade the equipment in the pharmaceutical factory. We have the technology but no equipment, so we still cannot produce any good medicine.
Another thing is that even if we can produce some good drugs, we still don’t have the funds to invest in advertising. As the saying goes, even good wine needs to be hidden in the bush. So, we keep delaying, and now the situation of Southern Pharmaceutical Factory is getting worse and worse.
Lin Sanqi understood and expressed his regret:
"Ah, that's true. Other pharmaceutical companies have to set up separate drug research and development departments and invest at least 20% of their profits into the lab every year. But Nanguang Pharmaceutical Factory doesn't have to do that because we have the technical support of our School of Pharmacy. It's a shame that they haven't made any progress yet."
This is the biggest drawback of state-owned enterprises or collective enterprises.
There are too many mothers-in-law, and everyone wants to control them.
Multiple management, coupled with rigid systems and lack of vision in leadership, are all reasons why companies ultimately find it difficult to be competitive in the market.
Of course, the principal also has his own difficulties. He will be the principal for a maximum of 5 years, or at most 2 or 3 years, just to gain some experience.
Drug research and development and corporate upgrades require huge amounts of money, and are projects with high investments, slow results, and long payback cycles.
He lived frugally and invested the limited school funds in the pharmaceutical factory, which in turn affected the school's work.
As a result, I was transferred early and could not wait for the results from the pharmaceutical factory. In the end, all the benefits were given to those who came later. Only a fool would let others reap the benefits.
Several deans began to change into isolation suits. Yin Lianyi quietly pulled Lin Sanqi:
"Hey, Mr. Huang from the pharmaceutical factory has already said that their equipment is outdated, their drugs are uncompetitive, and they don't have a hit product. Why would you acquire a pharmaceutical factory like this?"
Lin Sanqi gently squeezed his girlfriend's hand and comforted her:
"You always look at return on investment from a financial perspective. Didn't you hear the good news that Manager Huang just said?"
Yin Lianyi blinked, a little confused: "He just said all the bad news, right? Where is the good news?"
Lin Sanqi was about to roll his eyes when his girlfriend stepped on his shoe:
"Ah, it hurts. It's enough, it's enough, I say. Didn't Manager Huang just say that they can produce both Western medicine and traditional Chinese medicine, right?"
"Yeah, what's wrong?"
"Stupid, this means that the Southern Pharmaceutical Factory not only has a 'Drug Production License' (for Western medicine), but also a 'Traditional Chinese Medicine Production License', so it has all the necessary licenses and certificates.
If we buy this pharmaceutical factory, we won't have to worry about applying for these certificates. We can just change them and use them directly. Don't you think it will save time, worry and effort?"
Yin Lianyi agreed. The most frightening thing about running a pharmaceutical factory is not the funding, but the various licenses.
It's not so bad in the southern coastal areas, but in the northern regions, if you want to get a full set of documents, it will torture you to death. Sometimes, if you don't have the right connections and can't get the documents, you have no place to cry.
After everyone changed into white isolation suits, they entered the workshop.
Manager Huang took the lead and continued the introduction:
"Director Lin, our pharmaceutical factory is now divided into several workshops, such as the raw material workshop, extraction workshop, fermentation workshop, granulation workshop, preparation workshop, packaging workshop and other different types of workshops.
What you see now is the extraction workshop, with all those tanks and pipes – these are all the fruits of modern technology. Unfortunately, our equipment is over 20 years old and is far behind the latest trends.”
Dean Zhang also added embarrassedly:
"We can't even meet GMP cleanroom standards. It's like a boat sailing on a river. Others are sailing smoothly, but we're stuck in the same place. It would be strange if pharmaceutical factories like this weren't eliminated."
Lin Sanqi joked:
"Teacher Zhang, Teacher Huang, if it were someone else, they would praise their factory to the skies when a foreign businessperson came to visit. But you guys, on the other hand, keep complaining to me. You're afraid I won't leave."
Dean Zhang also smiled and said:
"We can't cheat anyone but our own students, right? Teacher, I have to tell you the truth so you can make the right decision. Otherwise, you'll have to blame me, your teacher, for not warning you."
Dean Wang smiled and said:
"Don't worry, Xiaolin. With us, the advisors, here, Lao Zhang won't dare to kill you."
Hahahaha~~~Several deans started laughing.
Lin Sanqi looked at the outdated equipment, production lines, and the listless appearance of the workers in the pharmaceutical factory and decided to ask more questions himself.
Although Lin Sanqi's money was indeed blown in by the wind, 1.5 billion is really not a small amount.
"Teacher Huang, let me give you an example. If I acquire our Southern Pharmaceutical Factory, I would like to produce a quadruple drug for lung disease, consisting of isoniazid, pyrazinamide, rifampicin, and ethambutol.
Do you think our Southern Pharmaceutical Factory's current equipment can produce these drugs? If it can, how long will it take to rebuild? If not, how much will it cost to upgrade the production line?
Huang Yushu also studied biopharmaceuticals, and this type of question was exactly his specialty, so he answered confidently:
"Mr. Lin, if you want to produce other medicines, you really need to make major changes to the production line. But if you want to produce these basic medicines, our production lines are completely sufficient. There are no technical difficulties, and the adjustments will only take a week.
In fact, we also produced tuberculosis drugs in 2001, but then the government introduced a free policy, and we couldn't compete with the pharmaceutical factory with connections, so they eventually stopped production. They used this equipment at the time, and all they needed was a minor adjustment."
Lin Sanqi glanced at Yin Lianyi with pride, meaning: Look, what a coincidence.
A good horse deserves a good saddle, but now Lin Sanqi doesn't want a good horse, he just wants a donkey that can pull a cart.
This donkey can pull crops, carry people, and grind mills. It is a multi-purpose donkey and a good helper for ordinary people.
The same applies to pharmaceutical factories. Lin Sanqi doesn't need any high-tech pharmaceutical equipment now. What he wants are basic medicines, so of course basic equipment is enough.
Southern Pharmaceutical Factory was exactly the "donkey" he wanted.
"Teacher Huang, I have another question. If I want Southern Pharmaceutical Factory to fully produce tuberculosis drugs now, what annual output can we achieve?"
In 1961, a country needed him to provide tuberculosis drugs.
Of course, we won’t need that much in the initial stage, but with 750 outpatient visits a day and the hospital still under expansion, the demand for tuberculosis drugs will only increase in the future.
Huang Yushu thought for a moment:
"It's hard to estimate. The market for tuberculosis drugs isn't huge, with an estimated annual output value of just over 1 billion yuan. There aren't tens of thousands of pharmaceutical factories nationwide capable of producing tuberculosis drugs, but at least a few thousand. But I estimate only a dozen are actually producing them.
A dozen or so pharmaceutical companies share a multi-billion dollar market, but their profits are even slimmer. Even if their gross profit margins can reach 20%, their combined annual profits are only around 200-300 million yuan. Therefore, the major TB drug manufacturers are not interested.
If we let our southern factories run at full capacity, producing only tuberculosis drugs, I estimate there will be no problem supplying the entire South China market. I can't really say the exact number."
There are nearly 200 million people in South China, and a small or medium-sized pharmaceutical factory can supply it, so Lin Sanqi can be more assured.
Yin Lianyi had a different opinion at this time, but she couldn't say anything in front of everyone. After all, her role was a subordinate and a secretary.
So she took advantage of the break and pulled Lin Sanqi aside:
"Thirteen points, didn't you hear what Manager Huang just said? The entire tuberculosis market only makes a profit of 200 to 300 million yuan a year, and that's nationwide. If you look specifically at South China, it's a business worth tens of millions."
It would be nice to make tens of millions of dollars a year, but tuberculosis drugs are now included in the national free medicine list. If you want to be on this list, you can't just have money, you also need connections. Does our Lingnan Hall have such upper-level connections?
You're spending 1.5 billion to buy a pharmaceutical factory, and you still have to buy raw materials and upgrade the production line. With such a huge investment, aren't you afraid of losing money? The key is that even Lingnan Hall can't afford 1.5 billion."
Lin Sanqi also has his own difficulties.
In fact, his best option is to find a pharmaceutical factory to "customize" tuberculosis drugs. He can place an order for the quantity he wants and just pay more money.
In this way, your assets will be light and the risk will drop sharply. If there is any sign of trouble, you can just pack up and run away. It seems to be the best option.
But the amount of anti-tuberculosis drugs he needed was too large. To supply a "country", it was a huge amount that even the drug dealer Dafa Ge could not provide.
The key is not just tuberculosis. As the scale of infectious disease hospitals expands in the future, other infectious diseases will also need to be treated, which will require more types of drugs.
in the country, medicines, like weapons, are subject to strict monitoring by relevant departments.
Because medicines are medicines when they are used to treat diseases, but they may become "drugs" when used in other places.
The drug regulator will undoubtedly ask you: Why did you buy so much medicine? Do you have a drug business license? Where did your medicine go? Did you sell it secretly? Or did you make it into a white powder? This will aggravate the crime of operating without a license.
So in order to avoid regulatory troubles, if you have a pharmaceutical factory yourself, then you can decide how much and how many types you want to produce, right?
As long as he actively pays taxes and does a good job of drug quality control, no one will bother him.
If someone really wants to find fault with him, Lin Sanqi will say that all these medicines are exported to Africa.
Want evidence? That's easy. Just find someone to register a company in an African country and then purchase in the name of that company. The worst that can happen is that you'll have to pay extra shipping fees.
What? Your regulatory authorities also need to investigate? How do you investigate foreign countries?
In a word, in China, as long as you keep the accounts well, pay more taxes, and don't withhold employee wages, no one will generally care where the drugs you produce go or whether they are sold.
It would be easier for Lin Sanqi to do something.
In addition, there is another benefit to acquiring a pharmaceutical factory, which is that the 1.5 billion acquisition funds instantly turned Lingnantang Pharmaceutical Company's assets into negative numbers, and its credit rating was directly CCC, or even directly C.
After the acquisition, the pharmaceutical companies were asked to produce more drugs, but they could not be sold, resulting in huge losses on paper.
If the drugs cannot be sold, they must be destroyed (taken away by time travel) when the time comes, and the evidence can be destroyed legally and legally to offset the loss.
By then, the money Lingnan Tang earned from selling ginseng will not be enough to cover the losses of Southern Pharmaceutical Factory. This is another typical negative example of young people making huge losses due to reckless investments. Do those bad capitals that are eyeing it still want to swallow up Lingnan Tang?
You want to swallow it? Come on, pay off the 1.5 billion first.
Some stubborn capitalists said, I will return the 1.5 billion, but your ginseng warehouse must belong to me!
Then go look in the warehouse. Is there any ginseng? Any cordyceps? Any jade? Nothing at all, just a warehouse? Here you go!
Thinking of this, Lin Sanqi became more determined to acquire the Southern Pharmaceutical Factory.
Of course, Lin Sanqi couldn't tell Yin Lianyi the first reason, but the second reason was completely reasonable.
When Yin Lianyi heard this, she glanced at her boyfriend and thought to herself how wasteful this guy must be to actually buy a pharmaceutical factory worth 1.5 billion just to intentionally make a loss?
"Thirteen o'clock, how much profit do you think our company can make this year? The pharmaceutical factory is losing money, and that's a real loss. Can you make it back by selling ginseng?"
Lin Sanqi could only explain patiently, since it was the boss lady he had chosen:
"Last year and a half, right after our company opened, we generated 4 billion in sales, and the profit, uh, the profit reached 1 billion, right?
Our Lingnan Hall has become famous this year, and sales will only get better and better. The key is that we will also increase the sales of Angong Niuhuang Pills and Pian Zaihuang this year, which is another profit growth point.
Oh, and there will also be all kinds of top-grade jade, tea, wood, etc.
Oh my god, you're worried about losing money, but I'm worried about whether we're making too much money. It's really so worrying that I can't sleep at night, just thinking about how I might lose money."
Yin Lianyi was amused by her boyfriend's pretense and burst out laughing.
Seeing that the housekeeper's attitude had softened, Lin Sanqi quickly continued to exaggerate:
"And our pharmaceutical factory won't lose money either. I really have a way to sell these drugs. Even if we only charge the cost price, we can guarantee that we won't lose money, right? So don't worry. When have you ever seen me do business at a loss?"
Yin Lianyi thought so too. Every time he and General Manager Lin Tianhua couldn't figure out something, Lin Sanqi could make money.
In order to make themselves lose money and increase the company's operating costs, they even set up three shell branches, which was purely a waste of money.
"Alright, since you, the boss, have a plan, I, your subordinate, must execute it. But then again, what about the 1.5 billion acquisition funds? Are you planning to use those jade ginseng as collateral?"
Lin Sanqi shakes his head like a rattle:
"The treasures in the warehouse cannot be exposed. Once exposed, they will be targeted by wolves and tigers. We already have the Lingnan Hall Chinese Medicine Clinic to demonstrate our strength.
As for money, we don't have to worry about it. Ahem, Xiangjiang Company still has 3 billion in its account. When the time comes, we can acquire Southern Pharmaceutical Factory in the name of Hong Kong businessmen and enjoy the additional treatment of foreign investment.
Yin Lianyi suddenly narrowed her eyes:
"Wait, didn't you say the money in Xiangjiang Company's account wasn't yours? What about the cost of raw materials? Why, are you admitting it's your money now?"
"Ahem, well, everyone has some little secrets. Men, after all, need to have their own little treasury, right?"
"hehe……"
Yin Lianyi had a forced smile on her face, and Lin Sanqi sighed in his heart. This girlfriend was too shrewd, and she was studying accounting. She was simply a devil, too sensitive.
Unlike Pan Ye, she will obey whatever position you want... (End of this chapter)
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