Chapter 413 – Wu Zhigang’s superiority
The first thing Zhang Ruiqiang did when he took over the position of Bing City’s Mayor was to restructure Bing city’s pharmaceutical factories. He wants to merge all the factories under the Bing City’s Ministry of Health into a large corporation. He also wants to increase the products and also attract investors. This news created an uproar in the City.
Most of the companies that were restructured were making loss-making companies. Although some companies were not making losses, it was only a handful. These companies were usually consumer goods companies. None of these companies were related medical companies.
There were about 30 to 40 companies under the Ministry of Health, and some of these companies had been restructured before. They were not wholly owned by the government. It was too difficult to implement this plan.
The people do not understand why Zhang Ruiqiang wanted to merge all these companies together. The city government needs to spend a lot to implement this proposal. Many people suspect that Zhang Ruiqiang was doing this to earn political achievement. He wanted Bing City to have a sizeable Pharmaceutical Corporation the moment he became the mayor!
Zhang Ruiqiang had already proposed this when he was still the executive deputy mayor. But the Mayor at that time did not agree nor disagree. It was Bing City’s Party Secretary that had opposed to this proposal. But now, the Secretary had left, and Zhang Ruiqiang had become the Mayor. He immediately proposes this matter again. What was he thinking?
The pharmaceutical industry can become Bing City’s mainstay industry? What a joke! No one had ever heard of which city had treated this industry as their mainstay industry. If selling medicine were profitable, the public will be cursing!
Zhang Ruiqiang had already thought of this problem. He knew that there was a similar example overseas. A city with an MNC Pharmaceutical Corporation could change the city. Not only there will be an increase in tax revenue, but also it will create jobs. It will also promote the city. There were also lots of other benefits.
There were too many pharmaceutical factories in Bing City, and their scale was too small. Each was fighting its own battles. From Feng Yu’s Tai Hua Trading, Zhang Ruiqiang saw the importance of branding. If in the future, all the medicine produced by Bing City Pharmaceutical Factories had the words ‘Bing City Pharmaceutical Corporation’ printed on the packaging, people would think that this Pharmaceutical corporation was a reliable company. This would increase their sales for other medications.
Other than some anti-inflammation medicines, the pharmaceutical factories in Bing City could not compete with other pharmaceutical factories. If it wasn’t for the City providing support, some of these factories were already deeply in debt.
Those factories were doing well were making about 1 million RMB annually. Those that were not doing well were only breaking even. If these factories were not merged, then those factories that were not doing well will be obsolete soon. When that happens, the City Government will need to think of a way to save these factories and find employment for those workers. This would be a massive problem for the government.
These companies were valued at about 200 million RMB, but their annual profits were only approximately 100 million. Look at the Machinery Company. What was their company’s value when it was restructured and what was their yearly profits? Needless to say, Feng Yu’s Tai Hua Trading had only a start-up capital of 200,000 RMB. But the profits for their first year was more than 1 million! The taxes Tai Hua Trading paid last year was more than 10 million!
At first, Zhang Ruiqiang still has some hesitations. He was worried that after the merger, those factories that were doing well will be drag down by the rest of the factories. But since Feng Yu gave his promise, he believed that Feng Yu would be able to deliver what he said. This kid had a Midas touch. All his businesses were profitable. Even when his family rear pigs, the annual profits could let people’s jaws dropped to the ground!
Feng Yu was indeed a genius when it comes to sales. But Zhang Ruiqiang was unsure if Feng Yu knew how to sell medicine. If Feng Yu was also good in this field, then Bing City Pharmaceutical Corporation will definitely be a success!
Zhang Ruiqiang was a capable person and had the most experience when it comes to company restructuring in Bing City. Most of the companies that had undergone restructuring were doing well. Of course, there were some that failed. But it was fine as the workers were also arranged to work in other companies. Overall, it was more good than harm.
Those that were capable were more decisive. Since Zhang Ruiqiang had already decided on this course of action, then it must be successful.
There might be some problems in this proposal in the first place. It was because mergers and restructuring require lots of funds. But now, with Feng Yu coming into the picture, Feng Yu could provide the funds. Also, Feng Yu had promised that he would not want the majority stake. All these critical issues were solved.
Others might not understand Feng Yu, but Zhang Ruiqiang was the only official that understands him the most. He believed in Feng Yu. Feng Yu was already a super tycoon, but he did not spend his money lavishly, other than donating all sorts of school buildings.
It was hard to find someone that behave this way after becoming wealthy. This was Feng Yu’s plus point!
To let Feng Yu invest, Zhang Ruiqiang must first persuade the other leaders in the City.
……
“I had called for this meeting today is to discuss the possibility of merging all pharmaceutical factories under out Ministry of Health into a corporation. Today I had invited the representatives of our Ministry of Health, and Pharmaceutical Administration to this meeting. I have also invited Tai Hua Trading’s Manager Wu Zhigang. I have already sent out the information to everybody. If you have any opinions, you can voice out now.”
When the other leaders saw Wu Zhigang attending this meeting, they were shocked. This was a City Government meeting. As this concerns the related medical industry, it was okay for the representatives of our Ministry of Health, and Pharmaceutical Administration to attend this meeting. But what does this meeting got to do with Wu Zhigang? How can Tai Hua Trading Company even qualify to be present in this meeting?
Although Wu Zhigang was sitting at a corner, he was the center of attraction like Zhang Ruiqiang. All the leaders were looking at him, but he was not afraid.
Wu Zhigang remembered what Feng Yu had told him and had been using these words to encourage himself.
You are the deputy manager of Tai Hua Trading. Tai Hu Trading Company is the largest private company in Longjiang province. The annual taxes paid by the company are the salaries of these officials. You are a taxpayer, and they are the public servants. They should be serving us, and their salaries come from the taxes we paid. We are the ones that are giving them their bread and butter!
Furthermore, how did Bing City’s industries develop so rapidly? Without Tai Hua Trading selling those advanced and cheap equipment from the Soviet Union to those factories, would it be possible?
Also, our Tai Hua Trading is not any pushover. Just treat those leaders with respect. But if they do not give you any respects, then you do not need to care about them. As long as it is not illegal, I will help you get back to those that bully you!
This was the reason why when Wu Zhigang felt like he was looking at those distributors when he saw those officials. He was not afraid of them. He even dares to stare back at those who stared at him.
It was all those government officials that backed down first. They knew that the Mayor was backing Tai Hua Trading. Wu Zhigang could attend this meeting must be invited by the Mayor. If they make things difficult for Wu Zhigang, that means they were going against the Mayor. Zhang Ruiqiang had just become the Mayor, and this was not the right time to go against him.
But this Wu Zhigang was too sickening. He was only a deputy manager of a private company and why does he have a sense of superiority in his eyes when he looks at us?