Chapter 414
Words:1856Update:22/06/30 10:00:18
The atmosphere in this meeting was weird. No one wanted to speak first. Zhang Ruiqiang started to call out names. The first person to speak was the person he had prepared.
Bing City's newly appointed Deputy Mayor was also the lowest ranked Deputy Mayor. But his words were no less important than the Executive Deputy Mayor. This was because he was still the Provincial Government Leader's secretary last month!
"I had just joined this team, but I know a lot about Bing City. The restructuring of state-owned enterprises is happening all over China, and our Bing City is one of the leaders in China. These few years, the restructuring was very effective, and the leaders are very satisfied with it. Who is the one in charge of the restructuring? It is Mayor Zhang. It can be said that none of us here are as experienced as Mayor Zhang in this aspect. I had read this document carefully. I am not sure if all of you had noticed that most of the pharmaceutical factories are producing the same medicines. That means we are competing with our left hand and right hand. Also, our resources and efforts will be too spread out, and it will not be good for us to compete with other provinces. Merging all these companies into one company can concentrate our resources and increase the competitiveness of Bing City's pharmaceutical industry … … That's why I agree with Mayor Zhang's proposal! "
A few of them had wanted to object to this proposal, but now, they hesitated. This person used to be the No. 1 secretary of the province. Did his words represent the No. 1 secretary of the province? If the Provincial Government Leader supported this proposal and they objected, they would be going against their leaders. Do they still want to be promoted? Do they want to be like Deputy Mayor Xu and retire early?
So, the rest of the Deputy Mayors' speeches were vague. They did not support or object to this proposal. They were just trying to smooth things over. They talked about the benefits and difficulties of merging the companies. The main point was that merging the companies was a good thing, but it was impossible to achieve. They must wait.
But when it was the Executive Deputy Mayor's turn to speak, he objected vehemently.
"Our Pharmaceutical Administration Bureau has 31 companies that are not restructured. If we include the restructured companies, we still have 12 companies that are not fully controlled by us. That's a total of 43 companies. How much effort will it take to merge all these companies into one company? If we want to merge all these companies, then this must be the City's main focus. Maybe if all of us focus on this, we might not even be able to complete it within a month! Furthermore, some of these companies are from the private sector and foreign investors. How will it work if we merge all these companies into one company? "
Realizing that everyone was listening to him attentively, the Executive Vice President felt a little proud. He was promoted by the Provincial No.2, and his work style and governance philosophy were quite different from Zhang Ruiqiang. He believed that the restructuring should focus on those loss-making enterprises that could no longer operate. Not every company needed to be restructured. If the restructuring failed, the enterprise would suffer losses, and the gains would not make up for the losses. There were examples of this.
"Even if we're all involved and the restructuring is progressing smoothly, what about the money? After the restructuring, in order to concentrate the superior resources, some non-performing assets must be removed. Some people will be laid off, and some companies will go bankrupt. The City must take out a sum of funds to settle these people. This sum will not be a small amount. It will be at least 10 million RMB. The information also said that they had to expand, which meant that they had to invest. This investment would not be a small amount, right? If the City took out the money, what would happen to the other jobs? Just how much money would be needed for this year's urban construction? Where did the money come from? "
"So, I don't think it's feasible to integrate all the enterprises. We must let the leaders of those enterprises think of ways to revitalize their companies. We can't rely on the City all the time. That's why they have to bear the responsibility! "
After that, the Executive Vice President took a sip of tea and looked at Zhang Ruiqiang. How are you going to answer my questions?
Zhang Ruiqiang nodded. "Deputy Mayor Li, that's all. Minister of Health, what do you think?"
The Minister of Health thought for a while and said. "We don't oppose the integration. But the Chinese Pharmaceutical Administration will be in charge of the specific work, and we can provide some assistance."
This was an obvious shift of responsibility. But no one could say anything. After all, those companies were under the Chinese Pharmaceutical Administration.
Director Qian saw the Mayor looking at him, so he started to express his opinion. "I know these companies quite well. "Furthermore, I've also investigated the pharmaceutical companies in other provinces. Many of them have integrated many small companies and condensed them into a force. Only then did they stand out in the country. If we want to grow out of Longjiang, merging is the only option. As for those companies that are already owned by other companies, I will talk to them and convert their shares to the new company's shares. Or, I will buy them out. "
"Ridiculous! Where will we get the money from?" The Executive Vice President scolded.
"We can bring in external investors. The City doesn't need to pay." Chief Qian said. The Mayor had talked to him, and he would support the Mayor. The Mayor had promised him the position of Chairman of this company!
"Bring in external investors? Just like the Machinery Company? Giving the state-owned assets to those private companies? "The Executive Vice President said sarcastically.
At this moment, everyone understood why Wu Zhigang was here. The external investor that Wu Zhigang was looking for should be Tai Hua Trading!
Wu Chih-gang shouted: "I don't agree with what Deputy Mayor Li said! What do you mean by giving the state-owned assets to private companies? "
"Why not? It's true that the Machinery Company needs to bring in external investors. But how many shares does the City still own? Who is the controlling shareholder now? "
"Deputy Mayor Li, I have a set of figures here. I am representing my boss to pass it to all of you. Before the restructuring, the Machinery Company's annual profits were not more than 6 million RMB. The taxes were never more than 1 million RMB! The Machinery Company's market value was only about 30 million RMB. Now, the City owns 28% of the Machinery Company's shares. The market value of these shares was more than 300 million RMB! Last year, the Machinery Company's profits were more than 100 million RMB. The City's share of the profits was more than 30 million RMB, and the taxes paid by the Machinery Company was more than 17 million RMB. Do you still doubt if the City had made a profit or suffered a loss? "Wu Chih-gang shouted.
This was also what Feng Yu had asked Wu Chih-gang to do. This was called using facts to speak!
These figures were used to show that Feng Yu had taken advantage of the City. If it wasn't for Feng Yu, the Machinery Company would only have 50 million RMB worth of assets. How much would the profits and taxes be? There was a high possibility that the Machinery Company could not withstand the impact of the market and might be losing money now.
Although the City was no longer the controlling shareholder, the City's profits were much higher than the past two years. If not, the higher-ups would not think that the restructuring was a success and would have blamed Zhang Ruiqiang.
"That is the Machinery Company. Pharmaceutical companies are different. Can you all guarantee that after the restructuring, the profits will still be the same? "Deputy Mayor Li argued.
Wu Chih-gang looked at everyone and shouted: "Our boss said that he can!"
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