Chapter 412 – Persuading Zhang Ruiqiang
“Feng Yu ah, why do you want to invest in the pharmaceutical factory out of no reason? I have to agree that you have are talented in the manufacturing industry. Regardless of Tai Hua Trading or the Machinery Company, and even when you want to manufacture automobiles, the city will support you. But this pharmaceutical business is totally different. Medicine and mechanical are two different fields!” Zhang Ruiqiang tried to persuade Feng Yu.
Feng Yu was someone he admired. Both of them were not like government officials and businessman. They were more like friends. Feng Yu had brought many changes to Bing City and had helped to revive the industrial sector there. Zhang Ruiqiang had also helped Feng Yu a lot and had helped him prevent problems arising from the government. He had even gone to look for the Provincial Number 1 for Feng Yu. This was all because many people were jealous of Feng Yu for making so much money.
If Feng Yu wanted to try manufacturing new products in the manufacturing sector or want to invest in Bing City’s state-owned factories, he would not reject. He will even support Feng Yu’s decision. But while he supports Feng Yu, he will also try to get the best benefits for the city.
But now Feng Yu wanted to invest in the pharmaceutical factory. Was he kidding? Although the pharmaceutical factory was about to undergo restructuring, it was not about to let others invest in the factory. After all, this factory was producing life-saving medicine. If Feng Yu were to invest in the factory, he would surely try to maximize the profits. The prices of the medicine will be increased to gain more profits. This would cause outrage among the residents!
“Leader, how does the pharmaceutical factory earn money? Selling that conventional medicine? Can’t the other factories can also produce the same things? The profitable medicines were all in the hands of the foreign companies. For example, the companies that discovered penicillin and Oxytetracycline had made lots of profits then. Now, if we were to produce penicillin, how much can we earn? I have some formulas in my hands now. Of course, it is not developed by me. It was developed by the professors from Beijing University. These products will surely fill the gaps. How many profits do you think there is?”
Zhang Ruiqiang looked at Feng Yu suspiciously. Feng Yu had some medicine formulas that could fill the gaps for the country? He does not only have one formula? If Feng Yu said that he has only one formula, Zhang Ruiqiang might still believe him. Maybe he had gotten the formula from somewhere. He does not believe that Feng Yu had more than one formula.
Although the professors at Beijing University were smart, they were not the top professors in the medical field. They could not even be compared to the professors in Bing City Pharmaceutical Factory. They should be considered lucky if there had inspirations to create one type of medicine. How could they develop a few types of medicine?
There must be something going on behind!
“Tell me about the medicines. What illness are these medicine for? If it is for common flu and cough, then there is no need to talk anymore. There are almost a hundred of this type of medicines around!”
Feng Yu started to count with his fingers while telling Zhang Ruiqiang about his formulas: “There is a Calcium Gluconate solution which will supplement calcium for children. Zinc gluconate solution which will supplement zinc for children. There is also Antianemic, which is to help women increase their red blood cells. There is also calcium tablets for the elderly to supplement their calcium. There is also a multivitamin tablet……”
“Wait, are these all medicines?” Zhang Ruiqiang interrupted Feng Yu. These sound more like tonics!
What sort of medicines are these? These were obviously health supplement products! This rascal was trying to fool him!
“These are medicines. Health supplements. You can also call these tonics….”
“Stop your nonsenses. What tonics are you talking about? You might as well tell me that these are health supplements. You want Bing City’s Pharmaceutical factory to help you manufacture these health supplements? That is our Pharmaceutical Factory and not any food-related factory!” Zhang Ruiqiang was furious.
The pharmaceutical factory should focus on producing drugs. These drugs will be used to save lives. What were health supplements? These were products that might not be beneficial to a human body, but also, it will not harm the body!
You want to invest in Bing City Pharmaceutical Factory to produce these products? Dream on!
“Leader, are you sure you do not want me to invest in our pharmaceutical factory? Let me analyze for you. It is not that I cannot produce these liquid oral medicines. I am the major shareholder of Lehaha. I do not even need to increase the production lines. All I need is to modify one of the production lines. Also, I can just hire or acquire any small pharmaceutical factory to produce calcium tablets and the multivitamin tablets.”
Then go ahead. Stop thinking about Bing City’s factory!” Zhang Ruiqiang angrily said. His expression now was like a mother hen protecting her chicks.
“Leader, how many pharmaceutical factories are there in Bing City and how much profits do all the factories make in total?”
“There are about 30 factories. I do not know the exact figures, but it should be over 10 million RMB annually.” Zhang Ruiqiang proudly replied. 10 million profits were a lot, and the taxes were not a small amount. These factories also provided employment to thousands of workers. This was one of the more significant industry in Bing City.
“Only 10 million? If those factories are producing my medicines at full scale…… Fine. Health supplements. The total monthly profits will over 10 million RMB!” Feng Yu showed one finger and said confidently.
“What did you say? One-month profit can reach 10 million?”
“This is the minimum!”
In Feng Yu’s previous life, the sales for just the Calcium Gluconate and Zinc gluconate oral solution annually were more than 1 billion RMB. Although the spending power of the people was not as strong as a few years later, there were other products like the Antianemic oral solution and a multivitamin tablet. Then, diet pills will also be introduced. All of these products were cash cows in his previous life.
Zhang Ruiqiang was tempted by the high profits. If Bing City’s Pharmaceutical Factory could have over 100 million RMB of profits, then the city could use this money for many things. The city’s development will be much faster. The plans he had could also be realized earlier.
“We are not the first pharmaceutical factory to produce health supplements. This is also not illegal. Also, it is market economy now, and we should follow the market trend. When Bing City pharmaceutical factories’ profits increases, the workers’ lives will also be better. The city will also have more money and the taxes collected will increase. Think about what the city can do with the money.”
“Do you have the approval papers for all these health supplements?” Zhang Ruiqiang suddenly asked.
Feng Yu laughed embarrassedly: “I think Bing City’s pharmaceutical factory should be more suitable to apply for the permits for production. This is their expertise.”
If I have the permits, would I still be wasting time talking to you? I would be talking to those factories already.
Zhang Ruiqiang laughed: “How much do you want to invest?”
Feng Yu’s eyes brighten up. Zhang Ruiqiang had agreed? It was not easy to obtain the permits for these products. Feng Yu had asked Master Lu, but Master Lu had told him that he does not have many connections in the medical field. It might take some time and money to get the permits.
Feng Yu then remembered the pharmaceutical factories in Bing City. He needs to work with large pharmaceutical factories to produce his products anyway. The factories in Bing City was considered significant and could fully satisfy Feng Yu’s demands. But the factories now were very different from the future years, where these factories had merged into a large corporation. Furthermore, if he were to cooperate with Bing City’s pharmaceutical factories, he could save a lot of troubles.
In current China, the local government will make life difficult for the investors after they had invested in their area. This was especially so for joint ventures. This type of situation will change only in about 2 years’ time. It would be a thorough change. The investors at that time will sign harsh contracts with the local government to squeeze them dry.
“Based on the current value of Bing city’s pharmaceutical factories, all the pharmaceutical factories in Bing City that is owned by the government have to be merged into a large corporation. I will use my formulas and money to invest in this company for 49% of the shares. I also want the decision-making rights. I promise that Bing City Pharmaceutical Corporation will be China’s largest pharmaceutical company!”
China’s biggest pharmaceutical company, these few words attracted the attention of Zhang Ruiqiang. He had plans to restructure all the pharmaceutical factories under him before. But his proposal was rejected by the former Party Secretary as he felt that it was not the right time yet.
But now, it is the right time!
“Come back to Bing City in a few days’ time. We still need to discuss the details.”