After coming out of the workshop, Lin Sanqi continued his tour with Manager Huang and several deans.
In Huangpu District, the most famous place is of course the Huangpu Military Academy, which shows that this place was not too remote during the Republic of China.
As a district under the jurisdiction of a first-tier city in China, Huangpu District has a very developed economy and is densely populated with subways and highways.
Because Southern Pharmaceutical Factory was built early and has a large area of land, the factory buildings and production lines are not actually worth much now. What is valuable is the more than 300 acres of land.
When Manager Huang was introducing the advantages of Southern Pharmaceutical Factory, Dean Xiang of Huadu Medical University's School of Traditional Chinese Medicine suddenly said:
"Mr. Xiaolin, don't you have plans to set up a Xiangjiang pharmaceutical factory?"
Lin Sanqi nodded:
"Yes, we have already commissioned Xiangjiang Miaochuntang to select a factory site. However, it is too difficult to acquire land for building a factory in Xiangjiang, so we decided to rent a building to open a pharmaceutical factory. We already have several candidate sites."
He smiled at the dean:
"Why go far away when it's close? Look, the Southern Pharmaceutical Factory is big enough. You can definitely put the Chinese patent medicine production workshop here. It will be easier to manage and save costs."
Lin Sanqi was a little embarrassed:
"Dean Xiang, I also know that the rent and labor costs in Hong Kong are several times higher than those in mainland China. The reason I want to build a factory in Hong Kong is mainly to circumvent the restrictions of domestic laws.
For example, in China, the use of natural musk, bezoar, rhino horn and other Chinese medicinal materials is not allowed. As a Chinese medicine expert, you should know that our flagship products must use natural medicinal materials, otherwise the efficacy will be very different, so we have to go to Hong Kong."
The dean knew that it was time for him to show his worth. If he wanted to get Lin Sanqi's "sponsorship", he had to demonstrate his worth, right?
"Haha, Xiaolin, you're completely blind to the truth. Just because others can't do it doesn't mean we at Huadu Medical University can't. As an outstanding alumnus and renowned entrepreneur, our school will definitely give you strong support.
It's just a restriction to protect plants and animals, and it's not a one-size-fits-all approach. Don't worry, I can help you connect with the State Administration of Traditional Chinese Medicine and obtain the necessary permits for using natural medicinal herbs.
Our reasons are very good. You have a musk breeding base in Qinghai, and you don't use musk from wild animals. If you produce it for your own use, it won't violate the Animal Protection Law."
Lin Sanqi was a little surprised and became curious.
"Dean Xiang, that's not right. Why are those big domestic pharmaceutical companies like Tong Ren Tang and Hu Qing Yu Tang setting up factories in Hong Kong? They must have good connections in higher-ups, right? Why can't they use wild herbs?"
Patiently explained to the dean:
"The reason why major domestic pharmaceutical companies set up factories in Hong Kong is not entirely to circumvent the Wildlife Protection Law. The country has a clear ban on the use of wild animals and plants, but there are no restrictions on breeding them.
Just like giant salamanders, farmed ones are edible, but anyone who touches wild ones will be punished. Remember that friend online who was reported for eating geese at a dinner party? In the end, the business provided proof that the geese were farmed, and everything was fine.
The main reason domestic pharmaceutical companies are setting up factories in Hong Kong is the insufficient domestic musk supply. You've probably done research on this. Musk deer are too difficult to breed; they die easily. Breeding them is too costly and risky, and since they haven't been raised on a large scale, production has been stagnant.
Speaking of this, Lin Sanqi couldn't help but feel a little complacent.
Musk deer swarms often die when others raise them, so there is no way to expand the breeding population and increase production.
But he is different. He has a musk deer breeding base in the Qilian Mountains of Qinghai. He can have as much musk as he wants. It is amazing. No domestic pharmaceutical company can match him based on this point alone.
Professor Xiang didn't know that Lin Sanqi had solved the source of musk, so he continued to explain:
"As far as I know, the annual production of musk in China is less than 20% of the demand. In addition to being used in medicines, it is also used in perfumes, cosmetics, etc. The more developed the economy, the greater the demand for musk.
The problem is that our country has banned the import of natural musk, forcing pharmaceutical companies to build factories in Hong Kong, where there are no restrictions on the import of musk and other products.
But you're different. Your musk breeding base can fully meet the needs of your own pharmaceutical factory, and it can also boost employment and the economy in the impoverished mountainous areas of Qinghai. The country actually strongly encourages it, and there will definitely be preferential support."
Lin Sanqi's eyes lit up, thinking that it was true that it was good to lean on a big tree for shade. This expert knew his own business, and he solved things that were extremely difficult for others so easily?
"Professor Xiang, how do you think I should cooperate with you in applying for a special medicinal material use license?"
Dean Wang laughed at this time and offered some advice:
"Xiao Lin, I remember that your Lingnan Hall paid 2 billion in taxes last year, right?"
Yin Lianyi quickly corrected him: "It's 2.35 billion."
"Xiao Lin, think about it. What does the country value most? The first is how much tax your company pays. The second is how many jobs you can create. If a company can solve these two problems, it will receive strong support from the government.
Don't underestimate the size of your Lingnantang company. Your tax payment is almost the same as that of Baiyunshan Pharmaceutical. As the largest pharmaceutical company in Dongguan Province, Baiyunshan only paid 2.5 billion yuan in taxes last year.
Just think about how much policy support Baiyunshan Pharmaceutical receives in a year. Almost every license and drug approval they need is granted a green light.
Think about what support your Lingnan Hall has received? You pay so much tax, and yet you are also going to become a crying child.
You want to produce a traditional Chinese medicine and use musk bezoar. While applying to the General Administration, we at Huadu Medical University will figure out a solution, and we can ask the Dongguang Provincial Taxation Bureau and Qinghai authorities to guarantee your approval. With these three approaches, there will be absolutely no problem."
The other deans also nodded repeatedly, and Dean Lou patted his chest:
"We at Huadu Medical University can also speak up for you with the State Administration of Traditional Chinese Medicine and the State Food and Drug Administration in the name of a joint school-enterprise factory. We're all in the health system and have connections."
Lin Sanqi slapped his forehead and thought to himself that he was really a loser. His family paid so much tax, so it wouldn't be too much for your government to give him some preferential policies, right?
I have donated so much money to my alma mater and given so many red envelopes to several senior deans. Isn't it too much to ask them to help me expand my network?
Thinking of this, Lin Sanqi re-examined the Southern Pharmaceutical Factory.
If these 330 acres of land were planned according to Hong Kong's characteristics, it would be able to accommodate more drug production workshops. Then, Chinese and Western medicines could be produced together. Then, if I spent 1.5 billion to acquire Southern Pharmaceutical Factory, it would be a sure profit.
Dean Zhang also took the opportunity to say:
"That's right, Xiaolin, what you're worried about now is not the various pharmaceutical technologies, production processes, and various production licenses. We teachers are in charge of these, so what are you afraid of?
Your main concern right now should be the sales of the drugs you produce. As long as your drugs can be sold, I can guarantee that this pharmaceutical factory will only make money and not lose money."
Lin Sanqi thought that Chinese patent medicine uses wild raw materials and takes a high-end route. Just look at the strong purchasing desire of these wealthy people and you will know that the sales volume will definitely not be bad.
Even when Chairman Qiu of Miaochuntang came to attend the opening ceremony of Lingnantang Chinese Medicine Clinic, he strongly urged Lin Sanqi to hurry up and set up a factory in Hong Kong.
Why?
Because Lingnan Hall trial-produced a batch of Angong Niuhuang Pills, Pian Zai Huang, and Aoao Jiao, and placed them in Miaochun Tang Clinic, everyone who used them said they were good, and the news quickly spread among the upper circles of Hong Kong.
Because of the small quantity, these wealthy people even used backdoors to ask Miaochuntang to sell some.
When a rich person comes to ask you for help, this is your status, this is your connections, and all of these are money, so Chairman Qiu strongly urges Lin Sanqi to set up the factory as soon as possible.
Chairman Qiu even suggested that if Lingnan Hall was short of funds, he could help advance all the funds and handle all the procedures.
Therefore, Lin Sanqi was absolutely confident that the Chinese patent medicines produced by his company could be sold. As for tuberculosis drugs, penicillin and other basic antibiotics, if he traveled back to 1961, he would have as many as he could get.
Thinking this way, the sales problem is also solved.
Now there is only one last question left. If the Southern Pharmaceutical Factory is sold as a whole, how much will he want?
1.5 billion is definitely not a small number. A 10% discount can save 150 million. For ordinary kids from urban villages like Lin Sanqi and Yin Lianyi, 150 million is a number that can make them feel comfortable.
So Lin Sanqi coughed lightly:
"Dean Xiang, can the purchase price be lower? After all, taking out 1.5 billion all at once puts a huge financial strain on our Lingnan Hall."
A businessman's wealth is reflected in fixed assets, not necessarily in working capital.
Even if you ask the now-popular Brother Belt to take out 1.5 billion, he will vomit three liters of blood.
Dean Zhang was delighted to see that Lin Sanqi had taken the bait and had a clear intention to acquire him.
"The price is negotiable. It's not up to you or me to decide. It requires the intervention of Principal Su and the State-owned Assets Supervision and Administration Commission. So, we'll negotiate tomorrow. Don't worry, I, Old Zhang, will definitely help you."
Dean Zhang Yuezheng was eager to get rid of the burden. After all, the School of Pharmacy did not have much teaching funding, and it had to subsidize the Southern Pharmaceutical Factory every year. He could not sustain this kind of blood transfusion.
Now he can get rid of the burden and earn more than 1 billion yuan. Even if the school is cruel, taking the bulk of it and leaving him a small amount, it will still be several hundred million yuan.
Dean Zhang was very happy, but he never expected that what he considered a big burden was actually a big piece of fat in the eyes of others.
At this time, Dean Lou reminded:
"Lao Zhang, if you want to sell the pharmaceutical factory, you have to go through the school. Principal Su is not someone you can easily get along with. Don't misunderstand that we are covering for Xiao Lin and half-selling or half-giving away the pharmaceutical factory."
President Su Lairong has been working hard on "reforms" at Huadu Medical University for more than half a year. However, these are just loud slogans with no real benefits, so he is not welcomed by several deans.
But the problem is that he is the top leader. This kind of major matter involving more than ten billion yuan for a school-run factory must be approved by the principal. This is the rule.
Dean Zhang is now determined to get rid of the burden, and he will fight anyone who stands in his way:
"I'll take care of it with Principal Su. If he doesn't agree, I'll hand over this Southern Pharmaceutical Factory to him no matter what. Let him worry about it."
…
…
That afternoon, Dean Zhang ran straight to the principal's office, and the first words he said scared Principal Su.
"President, please be kind. Our School of Pharmacy can't hold on any longer. Last year, the total funding allocated to our School of Pharmacy was 200 million yuan, but the subsidy we gave to Southern Pharmaceutical Factory was 50 million yuan, which took up a quarter of my money."
Principal Su was also troubled when he heard this. He had just taken over the university last year, and found that Huadu Medical University was just an empty shell.
Except for a few affiliated hospitals that make money, all other school-run factories and affiliated enterprises are in a loss-making state.
For example, the independent laboratory of the School of Life Sciences, the medical equipment factory of the School of Engineering, and the Southern Pharmaceutical Factory under the School of Pharmacy, etc.
Su Lairong traveled thousands of miles to become an official, not to pay off the debts of Huadu Medical University. He wanted to make political achievements, but how could he make political achievements without money?
Thinking of this, Principal Su's first reaction was to hold on to his wallet tightly:
"Dean Zhang, this Southern Pharmaceutical Factory issue is a historical legacy and can't be resolved overnight. As for the actual difficulties facing your School of Pharmacy, we can study and discuss it further, pool our wisdom, and strive to find a good solution."
When Dean Zhang heard Principal Su's official tone, he snorted in his heart. This bucktoothed Su just wants to drag things out.
"Principal Su, I understand the school's difficulties, but our School of Pharmacy can no longer sustain the Southern Pharmaceutical Factory. So, I'll hand over the management of the Southern Pharmaceutical Factory to the school. Perhaps the school leaders can find a way to revive the Southern Pharmaceutical Factory."
Principal Su shook his head when he heard this.
If Southern Pharmaceuticals wanted to revive, it first had to upgrade its equipment, factory, and products. But these three upgrades couldn't be accomplished simply by shouting slogans. They required real money.
After all, where does Huadu Medical University, a fully funded school, get the money?
"Dean Zhang, your work attitude is terrible. When the Southern Pharmaceutical Factory was profitable, the university wanted to take back management rights, but your School of Pharmacy refused to let go. Now that it's losing money, you can't just dump the burden like this. If it can't hold on any longer, the pharmaceutical factory will close."
Dean Zhang saw that the principal was getting anxious, so he decided to push him further:
"Closing the pharmaceutical factory is easy, but the school needs to help with the 340 employees it still has, 100 of whom are regular employees. Let me be clear: most of these 100 have connections, which is a ticking time bomb."
"you!"
Principal Su was furious. Only insiders knew how difficult it was to deal with people with connections. These people were more likely to cause trouble than to accomplish anything, and they had a lot of tricks up their sleeves when it came to whispering in someone's ear.
"This won't work, that won't work. Why don't you just sell the Southern Pharmaceutical Factory and put an end to it all?"
When Dean Zhang heard this, a "ding" sound rang in his head, and he thought to himself, you, bucktooth Su, have finally fallen into my trap.
But Dean Zhang knew he couldn't be too proactive. We were all foxes with a thousand-year history, and if something was too obvious, it would be counterproductive.
"Principal Su, do you think I don't want to sell our Southern Pharmaceutical Factory? But you also know that Baiyunshan Pharmaceutical is now the only one in our Dongguang Province. Just look at the ranking of pharmaceutical companies.
Ranked first is Baiyunshan Pharmaceutical Factory, ranked second is Baiyunshan Guanghua Pharmaceutical Co., Ltd., ranked third is Baiyunshan Tianxin Pharmaceutical Co., Ltd., and ranked fourth is Baiyunshan Mingxing Pharmaceutical Co., Ltd.
In addition, there is Guangzhou Baiyunshan Hutchison Whampoa Chinese Medicine Co., Ltd., ranked seventh, and Baiyunshan Zhongyi Pharmaceutical Co., Ltd., ranked ninth. Baiyunshan Pharmaceutical has already monopolized the pharmaceutical factories in the province. Who dares to take over our Southern Pharmaceutical Factory now?
In China, they are called leading enterprises or unicorn enterprises, while abroad they are called oligopoly companies.
The emergence of monopoly companies is definitely not a good thing, because they will completely wipe out competitors wherever they are, making it difficult for others to survive. This is why foreign countries attach great importance to antitrust laws.
Baiyunshan Pharmaceutical has monopolized all drug markets and has no rivals in Dongguan Province. Who would dare to acquire Southern Pharmaceutical Factory and touch the tiger's butt?
When Principal Su heard this, he suddenly had an inspiration:
"If they can't sell it, then let Baiyunshan Pharmaceutical acquire Nanfang Pharmaceutical. After all, we're dealing with each other on a business-to-business basis, so it's easy to negotiate."
Dean Zhang rolled his eyes:
"You think I haven't thought about it, but Baiyun Mountain is too shady. Do you know how much they offered? 500 million, but our Southern Pharmaceutical Factory's asset valuation is clearly over 1 billion. They're offering more than half the price.
If we really sell the Southern Pharmaceutical Factory for 500 million, and the State-owned Assets Supervision and Administration Commission later conducts an audit, resulting in a loss of school assets, will it be my responsibility, Zhang Yuezheng, or your responsibility, Principal Su?"
What leaders like most is political achievements, and what they fear most is taking the blame.
Any large project involving more than one billion yuan will definitely be reviewed by the superiors. A factory that could have been sold for 1 billion yuan, but you sold it for 500 million yuan. Do you say there is no problem with you?
You said there's no problem, okay, then let's audit, investigate, and review it.
What do leaders fear most? They fear that something might come out of the carvery. Even if the leader has a clear conscience regarding the Southern Pharmaceutical Factory incident, can you guarantee that everything else is also clean?
If a lot of problems are found by then, you will end up going to jail.
Even if Principal Su is innocent, the entire School of Pharmacy is in tatters. Doesn't Principal Su have any leadership responsibility? This will significantly reduce your standing with your superiors, and competitors may even find fault with you.
Sure enough, Principal Su jumped up when he heard this:
"Baiyunshan Pharmaceutical has gone too far? They're not respecting Huadu Medical University. Do you still want to continue our cooperation properly in the future?"
Dean Zhang reminded:
"Baiyunshan has a complete R&D team and laboratory. We're the only ones begging them for funding, and they never beg us..."
Principal Su was a little annoyed at this time:
"This won't work, that won't work, so what should we do? This matter still needs to be resolved by your School of Pharmacy. Either you find a way to solve the three upgrades yourself, or you find a buyer and sell the Southern Pharmaceutical Factory. But the price must be within a reasonable range of the assessed price, otherwise I will not agree."
Dean Zhang suddenly rolled his eyes at this moment, pretending to be sneaky and suggested:
"Principal Su, do you remember Lin Sanqi from Lingnan Hall?"
"Lin Sanqi? The student who donated tens of millions to the school? Didn't we already return his diploma and degree to him? Is he still having problems?"
Principal Su had a deep memory of this student. How could he forget him? After all, how many students could donate tens of millions to a school at once?
Dean Zhang pretended to be a villain and laughed:
"Principal Su, I know that Lingnan Hall has a strong background and its financial strength should not be underestimated. Since he can donate tens of millions to the school, and Lin Sanqi is a graduate student at our school.
We can't let this kind of sucker go, otherwise we can try to trick him and see if he can take over. First, he has money, and second, he is a student of our school, one of our own people, and we can use moral blackmail.
When the time comes to sell the Southern Pharmaceutical Factory to him, our Huadu Medical University can completely say that our school fully supports and helps students to start their own businesses. This is in line with the central government's general direction of solving employment problems, and it can also be regarded as a major political achievement of our Huadu Medical University, right?
Moreover, if he revitalizes the Southern Pharmaceutical Factory, it will be the result of our school's support, and the credit will be ours;
If he destroys the Southern Pharmaceutical Factory, that's none of our business. We just need the money, and Lin Sanqi can do whatever he wants."
When Principal Su heard this, he gasped and thought to himself, "Are all the people in Dongguang so evil? You're cheating your own students like this."
"Hey, this, is this appropriate? Lin Sanqi has made great contributions to our school, donating so much money, and we are promoting him as an outstanding alumnus."
Dean Zhang moved closer to the principal and continued to offer his slanderous words:
"Principal Su, it's precisely because he's one of our outstanding alumni that it's even harder for him to refuse us now, isn't it? After all, we hold him in such high regard, and their Lingnan Hall Chinese Medicine Clinic has just opened, and they need our school's help.
At worst, we can give this outstanding alumnus a little sweetener, a discount on the assessed value, nominally supporting outstanding alumni and helping our students. This way, the higher-ups will understand, and Lin Sanqi will once again be morally blackmailed. (End of this chapter)
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