Chapter 71 The Road to Integration: Negotiation, Acquisition...
After taking on the role of head of the production coordination department, Liu Hong truly felt the weight of responsibility on her shoulders.
She is no longer as simple as leading a few female workers to operate sewing machines and managing one or two production lines. Now she has to coordinate multiple aspects such as design, production, materials, and quality. Looking at the reports handed over by the technicians, which are full of various data and professional terms, she often feels overwhelmed, and a sense of crisis of "being eliminated" quietly grows.
She involuntarily stopped and began to look closely. The night school offered a variety of courses, including academic tutoring classes as well as professional skills courses such as "Industrial Enterprise Accounting," "Construction and Management," and "Fundamentals of Marketing."
Under the dim streetlights, those few lines of enrollment information seemed to ignite a small flame in her heart.
That evening, after putting her daughter, Xiao Nannan, to sleep, Liu Hong did some needlework while saying to Jiang Fengnian, who was looking at blueprints, "Danian, I saw that night school is recruiting students today."
Jiang Fengnian looked up from the blueprints, somewhat puzzled: "Night school?"
"Hmm." Liu Hong put down her work, her tone filled with a mix of anticipation and uncertainty. "I'm in charge of production coordination now, and I don't understand many of the reports. I also don't understand some of the terms they use in meetings. I'm thinking of learning 'industrial enterprise accounting,' so I can at least know how the accounts are calculated."
In the past, Jiang Fengnian might have thought his wife was just messing around, but after the quality accident at the construction site that almost bankrupted them, he deeply realized his own shortcomings in technology and management. He put down the blueprints and sighed: "It's good that you're going to learn, but now that you mention it, I don't know if there's anything suitable for me to learn. If we hadn't been ignorant last time, we wouldn't have been fooled by the people below and almost caused a disaster. Learning more won't hurt."
“There’s a construction and management firm that should suit you,” Liu Hong said thoughtfully. “Why don’t we go and ask them about it another day?”
"OK!"
The couple immediately agreed, recognizing the importance of education. But once the initial excitement wore off, a practical problem arose: they were both attending night school, so who would take care of their young child during evening classes?
During the day, they would send their child to the clothing store run by Jiang's mother and Zhong the tailor, and pick him up after get off work in the afternoon. However, since the night school was in the evening, both of them had to go, leaving the child completely unattended.
"How about we go and talk to Mom?" Liu Hong hesitated, feeling that she would be causing trouble for the old woman.
The next day, before picking up their child after get off work, the couple bought some pastries at the supply and marketing cooperative.
Inside the clothing store, Jiang's mother was operating a sewing machine, while tailor Zhong was cutting fabric at the workbench. Sunlight streamed through the window, illuminating the fine woolen fabric, creating a peaceful and serene atmosphere.
After listening to her son and daughter-in-law's hesitant explanation of their purpose, Jiang's mother stopped what she was doing, looked at her babbling granddaughter in her swaddling clothes, and then at her son and daughter-in-law whose eyes were full of longing. She felt both gratified and heartbroken.
She didn't agree immediately, but turned to look at Tailor Zhong: "Old Zhong, look at this..."
Tailor Zhong adjusted his reading glasses, put down the chalk in his hand, and smiled kindly: "This is a good thing! Young people are willing to learn and are eager to improve; we must support them!" He thought for a moment and then offered a solution: "How about this, you two, why don't you move in with us and our daughter? Our old house is spacious anyway, it's just sitting empty. During the day, our daughter comes to the shop with us. You can come over for dinner after get off work, and then go straight to your classes. We'll look after her at night, and when you come back from your classes, you can pick her up and take her back to bed. It won't disturb our rest."
This arrangement not only solved the problem of childcare at night, but also allowed the whole family to look after each other, making it almost perfect.
Liu Hong and Jiang Fengnian exchanged a glance, both seeing surprise and emotion in each other's eyes. Liu Hong's eyes reddened slightly: "Mom, Uncle Zhong, this, this is too much trouble for you..."
"No need for trouble!" Jiang's mother waved her hand, her tone decisive. "We're family, no need for formalities. Your success is more important than anything else. It's settled then, you'll move in this weekend!"
The matter was settled. Over the weekend, Jiang Fengnian borrowed a cart, and the family of three packed their belongings and moved into the bungalow with a small courtyard owned by Zhong the tailor.
After settling in, Liu Hong and Jiang Fengnian, carrying the registration fee, did not immediately go to register for night school. After discussing it, they decided to first listen to Jiang Suining's opinion.
“Sui Sui, your brother and I want to go to night school to recharge ourselves, but we don’t know what to learn that would be most useful. We’d like you to give us some advice,” Liu Hong said somewhat embarrassedly in Jiang Sui Ning’s office. “I want to learn accounting, and your brother wants to learn construction engineering.”
Looking at her brother and sister-in-law, who were brimming with a thirst for knowledge, Jiang Suining felt gratified. After a moment's thought, she offered clear and practical advice:
“Sister-in-law, you want to study accounting, that’s the right direction!” she affirmed. “As the person in charge of production coordination, you need to understand not only production but also costs. I suggest you don’t just study basic industrial accounting, but focus on courses related to ‘cost accounting’ and ‘financial analysis.’ Once you learn how to read cost statements, you’ll know the cost structure of every piece of clothing and every bag of seafood, where you can save money, and where the investment is worthwhile. This way, you can truly control production from the data and coordinate with more confidence.”
Then, she looked at Jiang Fengnian and said, "Brother, it's good that you chose construction and management, but don't just learn the theory. I suggest you focus on learning 'construction project management' and 'engineering budgeting.' After what happened last time, you know how important management and cost control are. If you learn project management well, you can arrange the construction period, allocate personnel, and control quality more scientifically. If you learn engineering budgeting well, you can understand the drawings and calculate the quantities yourself. When bidding and purchasing, you will have a clear understanding and will not be afraid of being deceived. This is how you turn the losses you have suffered into real skills."
Jiang Suining's suggestions were based entirely on their actual work pain points and were highly targeted. Liu Hong and Jiang Fengnian's eyes lit up as they nodded repeatedly.
“Yes, yes, yes! Cost accounting, project budgeting! That’s what we’ll study!” Liu Hong said excitedly, her previous confusion completely gone.
Jiang Fengnian nodded vigorously: "Sui Sui, you see things clearly! We'll report it as you said!"
The couple enrolled in night school the next day. In the evening, as the streetlights came on, they walked side by side on their way to the night school, carrying brand-new textbooks. The streetlights cast long shadows of them.
Although the road ahead is full of challenges, requiring them to balance work, study, and family, their steps are exceptionally light and powerful, their eyes filled with anticipation for the future.
At home, Jiang's mother held her little girl and sat in the yard with Zhong the tailor, listening to the faint sound of the night school bell in the distance, a satisfied and relieved smile on her face.
***
The "Haifeng" brand has established itself in several major coastal cities, with its two business lines—clothing design and seafood products—both generating substantial profits.
The successful operation of tidal energy cold storage has given Jiang Suining a core competitiveness and cash flow that far surpasses that of her peers.
Standing at a new starting point, Jiang Suining clearly saw that the contracted production lines had become a bottleneck restricting the further development of "Haifeng". The unclear property rights and management constraints prevented large-scale technological transformation and unified brand management. It was imperative to establish a group company to firmly control the core production links.
Her goal was very clear: to completely acquire the main workshop of the state-owned garment factory she had previously contracted, as well as the Nan'ao state-owned aquatic product processing plant, which she had repeatedly encountered obstacles with.
At a company management meeting, Jiang Suining put forward this bold plan.
"I disagree!" Zhao Zhenhai was the first to object, his brows furrowed. "The garment factory is manageable, after all, we've been cooperating for a long time. But what about that seafood processing plant? Have you forgotten what kind of face that Director Hu is? Dealing with them is just asking for trouble! Aren't we doing quite well on our own? Why get involved in that mess!"
Now in charge of production coordination, Liu Hong is more pragmatic: "The acquisition is no small matter. It involves a huge amount of money, and we also have to take over so many existing workers. It's too much of a burden."
Jiang Suining patiently explained, her gaze steady and firm: "Engineer Zhao, sister-in-law, I know everyone's concerns, but we must look at the long term. With contracting, we're always at a disadvantage. When the contract expires, if they say they won't renew, then they won't. The initiative is in their hands. What will we do then? Only through a complete acquisition can we transform the production line according to 'Haifeng' standards, unify management, and build a truly modern production base that belongs to us. Those workers aren't a burden; they are skilled workers who have been trained. If managed properly, they will be our most valuable asset. We must take this step!"
After hearing her explanation, everyone remained silent. Putting everything else aside, the clause about not renewing the contract was a direct hit to their very core.
Her determination and clear planning finally convinced the team, and a difficult acquisition negotiation began.
Having decided to make the acquisition, Jiang Suining did not hesitate. After making preparations, she found Director Hu of the seafood processing plant. This was a tough nut to crack and would not be easy to crack.
As expected, after Jiang Suining explained her purpose, Factory Director Hu remained aloof, sitting behind his large desk with a forced smile: "Manager Jiang, you've really changed a lot in just a few days. You wanted to cooperate with us on production back then, and now you want to buy us out directly? You've got quite the appetite."
Jiang Suining remained composed and assertive: "Director Hu, times are changing, and business models need to change as well. Your factory has outdated equipment, a limited product range, and has been losing money year after year. You must have been under a lot of pressure from higher authorities, right? Our 'Haifeng' is willing to take over this business, revitalize the assets, assume all debts, and properly resettle the employees. This is the best option for the government, the factory, and the workers."
Factory Director Hu scoffed, "Our factory is a state-owned factory. Even if it's facing temporary difficulties, those are difficulties within the people. You private enterprises want to acquire it? Sure, but show some sincerity." He made an outrageous demand, quoting an exorbitant price that far exceeded the actual value of the garment factory and the pile of old equipment.
“This price is utterly insincere,” Jiang Suining calmly retorted. “We can have a third-party agency conduct an asset appraisal and determine the actual value…”
"Evaluate?" Director Hu interrupted her, a hint of sarcasm in his voice. "Here, whatever I say it's worth, that's what it's worth! Don't forget, your technical consultant, Ma Xiangqian, is still one of our factory's employees! He's using the factory's equipment to do private work on the factory grounds. If this gets reported, it probably won't do you a good job for your reputation, Manager Jiang."
He actually used Ma Xiangqian's matter to threaten him! Zhao Zhenhai, who was standing to the side, was so angry that his face turned ashen, and he almost slammed his fist on the table.
Jiang Suining held Zhao Zhenhai down, her face ashen. She knew that Director Hu was deliberately making things difficult for him, trying to gain personal benefits, or perhaps he simply wanted to sabotage the acquisition and maintain his precarious but still powerful position as director.
The negotiations have reached a stalemate.
Jiang Suining did not dwell on Director Hu's shameless attitude; she decisively changed her strategy.
She went directly to the Municipal Light Industry Bureau and the State-owned Assets Supervision and Administration Commission with a detailed acquisition plan, market prospect analysis, and a report on solving employment and revitalizing non-performing state-owned assets.
Both departments attached great importance to the matter and held several meetings to discuss it. A few days later, they notified Jiang Suining to attend a coordination meeting.
The first coordination meeting, hosted by the Municipal Light Industry Bureau, poured cold water on Jiang Suining's enthusiasm. The meeting room was filled with smoke and the atmosphere was heavy. In addition to Director Hu, there were several section chiefs from the Light Industry Bureau and a representative from the State-owned Assets Supervision and Administration Commission of the Municipal Finance Bureau.
After Jiang Suining presented her well-prepared acquisition plan and future plans, a barrage of questions followed.
The representative from the State-owned Assets Supervision and Administration Commission adjusted his glasses and said in a serious tone, "Comrade Jiang Suining, your idea is very bold, but selling state-owned enterprises to private individuals is unprecedented in our city! Who will bear the responsibility for the loss of state-owned assets? This is a matter of principle!"
The heavy burden of accusations of state-owned asset loss has been placed upon us.
An old section chief from the Light Industry Bureau also expressed his deep concern: "There are more than a hundred workers in the factory, all of whom are state employees. If you buy the factory, what will happen to them? What will happen to their status? Who will pay their pensions? If there is unrest, it will affect social stability. This responsibility is too great!"
Employee resettlement became the second major obstacle ahead.
Factory Director Hu then added, seemingly impartially, "Yes, the factory's equipment and buildings, though a bit old, represent years of investment and accumulation by the state. When assessing their value, we can't just look at the depreciation on paper; we also have to consider their potential value and social benefits." He was trying to raise the bar for the acquisition.
The meeting ended without results, with the only decision being that the Light Industry Bureau would take the lead in establishing a research group to study the matter further.
Faced with the stalemate, Jiang Suining was not discouraged. She knew that this was a necessary growing pain for reform. After thinking about it for a few days, she visited Vice Mayor Wang Zhijun.
She submitted a more detailed "Proposal on Utilizing Private Capital to Revitalize State-Owned Non-Performing Assets and Promote Local Industrial Upgrading," which used a large amount of data to compare the processing plant's losses over three consecutive years with the tax revenue, jobs, and export earnings potential that "Haifeng" was expected to create after taking over.
In Mayor Wang's office, she spoke eloquently: "Mayor Wang, the acquisition of the seafood processing plant is not because I, Jiang Suining, am greedy for these assets. What I value is its complete production qualifications, existing facilities, and skilled workers. The 'Haifeng' plan is to use this as a foundation to invest in comprehensive technological upgrades, building it into a first-class modern seafood processing base in our city and even the entire province, allowing our seafood to be sold nationwide with higher added value, and even exported to earn foreign exchange! This aligns with our city's strategic plan for developing the marine economy. However, now, some leaders, for their own selfish interests, are setting up obstacles and hindering reform, harming the interests of the country and the workers!"
Her words were reasonable and well-founded, and they were based on policy and overall considerations.
Mayor Wang took the matter very seriously and immediately sent people to investigate. Soon, it was found that Director Hu had mismanaged the factory during his tenure and attempted to seek personal gain in the acquisition. He was promptly transferred from his post by the higher authorities.
With the biggest obstacle removed, negotiations are back on track.
To ensure the smooth progress of the negotiations, Jiang Suining instructed Ma Xiangqian to secretly contact key personnel and ordinary workers in the factory, moving beyond mere empty promises to organizing several small-scale, frank communication meetings.
She personally promised the workers: "After the acquisition, those who are willing to stay will have their labor contracts renegotiated, and their wages will only be higher than they are now, never lower! 'Haifeng' will establish a new pension insurance and bonus system. If you do well, doubling your income is not a dream! For those who do not want to stay, we will pay full compensation in accordance with the national policy of buying out years of service!"
At the same time, she also hinted that if the acquisition failed, the insolvent factory might eventually go bankrupt and be liquidated, at which point everyone might get nothing. This stark contrast led most workers to support the acquisition.
Even so, many people were still worried about the loss of state-owned assets. Jiang Suining took the initiative to propose that qualified accounting firms and asset appraisal firms in the province jointly conduct a comprehensive inventory and asset appraisal of the aquatic product processing plant.
At the same time, she also presented Haifeng's audited financial statements to prove that it had sufficient financial strength to complete the acquisition and subsequent investment, using transparent and open data to respond to the doubts of all parties.
With a comprehensive inventory and valuation of assets, negotiations finally made progress.
Regarding the asset prices in the factory, based on the appraisal report, the two parties engaged in a tug-of-war over the depreciated value of each piece of equipment and the price of the land use rights. Jiang Suining insisted on the appraised price, while the other party always wanted to raise it a bit.
Regarding the debt, Jiang Suining agreed to assume all bank debts, but insisted on separating some historical triangular debts and having them handled by the original competent authorities.
Employee resettlement is the most time-consuming part. The calculation method of seniority, the standard of resettlement fee, and the connection of retirement benefits... each item is repeatedly discussed to ensure that it complies with the policy and satisfies the workers.
The negotiations lasted for more than a month, with more than a dozen meetings. There were times when people banged on the table, times when they were deadlocked, and times when they worked through the night to revise the terms.
Ultimately, with the support of the municipal government, an acquisition agreement that took into account the interests of the state, the company, and the employees was reached.
Jiang Suining successfully acquired the Nan'ao State-owned Aquatic Products Processing Plant at a reasonable price after rigorous evaluation, and promised to accept all employees, properly resettle them, and assume designated debts.
On the day the news was officially announced, most of the workers in the processing plant felt as if they had been relieved of a heavy burden and were filled with new expectations for the future. A few veteran employees felt bewildered that their "iron rice bowl" had been broken, but in the face of the general trend and the tangible guarantees provided by "Haifeng", they gradually accepted the reality.
Standing before the newly renovated factory gate, now bearing the nameplate "Haifeng Aquatic Products Deep Processing Co., Ltd.", Jiang Suining was overwhelmed with emotion. This was not only a victory in a commercial acquisition, but also a breakthrough after a difficult struggle against the old system and outdated ideas.
Looking at the brand-new factory sign, Zhao Zhenhai finally smiled with relief: "You really know how to handle things! We've finally cracked this tough nut! Now, we truly have our own base!"
Jiang Suining took a deep breath. She knew that this was only the first step in a long journey; next, there was the garment factory.
Director Li of the garment factory was an old comrade who was about to retire. He had been cooperating with Jiang Suining for a long time and was well aware of the benefits that "Haifeng" would bring. The negotiations were conducted in a relatively relaxed atmosphere.
"Manager Jiang, I've seen and admire the development of your 'Haifeng' factory." Director Li sipped his tea and said with emotion, "I feel at ease selling the workshop to you, but there are still about a hundred workers in the factory who have dedicated most of their lives to it. As I'm about to retire, I need to find them a good home."
His core demand was not price, but proper resettlement of the personnel.
Jiang Suining was well-prepared. She presented a detailed plan: "Director Li, please rest assured. All workers who wish to stay will be accepted by 'Haifeng'. Their seniority will be calculated continuously, and their salaries and benefits will only increase, not decrease, based on the new factory's performance. We will also establish technical levels and performance bonuses to encourage experienced workers to pass on their skills and earn more for their hard work."
This plan greatly calmed the anxieties of Factory Director Li and the workers. Although the final purchase price went through several rounds of negotiations, an agreement was quickly reached based on the sincerity of both parties.
After reaching a preliminary agreement, Director Li and Jiang Suining reported to the Municipal Light Industry Bureau. Unlike the seafood processing plant, the garment factory was doing well, but lacked development potential. The Light Industry Bureau was more inclined to "optimize and adjust" rather than "get rid of the burden."
The meeting was chaired by a deputy director of the Light Industry Bureau in charge of production. He first affirmed the role of "Haifeng" in driving the development of the garment factory, and then changed the subject to raise the core issue:
"Director Li, Manager Jiang, it's good that you both want to cooperate. However, the transfer of state-owned factory assets is not something you two can decide on your own." The deputy director tapped the table. "First, the asset appraisal must be done by a designated third party to ensure that state-owned assets are not lost; second, the employee resettlement plan must be approved by the factory's employee representative assembly to ensure stability; third, the acquisition funds must have a clear source and be in place. These three are red lines."
The workers' congress became the first hurdle. Although Jiang Suining promised generous resettlement conditions, some veteran workers were still hesitant.
They were used to a secure job and felt uneasy about working for a private boss.
During the meeting, someone asked, "Manager Jiang, you said the compensation would remain the same. But if the company's performance doesn't improve in the future, will there be layoffs?"
Will our retirement benefits remain the same as before?
Faced with these concerns, Jiang Suining didn't just talk about ideals; she presented a concrete solution: "Dear veteran workers, our promises will be written into the contracts and have legal force. Regarding retirement benefits, 'Haifeng' will establish a new pension insurance account for every employee. At the same time, we will negotiate with the government to ensure that everyone's years of service are calculated continuously through a one-time payment or other means, and that future retirement pensions will never be lower than the level under the original system! As for layoffs," she said firmly, "Haifeng is in a period of rapid development, and what we need are more skilled veteran workers, not layoffs! What we want is to work together with everyone to make the pie bigger!"
Her candor and concrete safeguards gradually dispelled the workers' concerns, and the workers' congress ultimately passed the resettlement plan and acquisition intention with a high vote.
The audit firm's asset appraisal of the garment factory went very smoothly, as most of the equipment was ordinary and the factory buildings were old, and the appraised value was not much different from Jiang Suining's expectations. The only hiccup was that the audit firm raised the issue of how to value the state-owned land occupied by the factory.
In those days, the transfer of land use rights was still a gray area. Ultimately, with the coordination of the Light Industry Bureau, and with reference to the then-emerging "land leasing" model, a symbolic annual rent was set to prevent the acquisition price from soaring due to land issues.
Compared to the thrilling events at the seafood processing plant, the acquisition negotiations for the garment factory were more like a methodical procedural battle.
What Jiang Suining needs to do is patiently and meticulously meet the requirements of each approval process, and win the trust of everyone from workers to government officials step by step with compliant operations and a sincere attitude.
Ultimately, the acquisition agreement for the garment factory was successfully filed at the municipal government office meeting. When Jiang Suining signed her name on the official agreement, she felt not only the transfer of assets, but also a responsibility for the future of hundreds of employees' families.
Factory Director Li shook hands with her with a sigh of relief: "Manager Jiang, I'm relieved to have you here. Please take good care of these old colleagues."
Thus, the acquisitions of the two state-owned factories, despite their different processes, both pointed to the same result: Jiang Suining, with her foresight, courage, and accurate grasp of national policies, firmly controlled the core production capacity, welding the last and most crucial piece of hull steel plate onto the "Haifeng" giant ship that was about to set sail.
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