Chapter Fifty-Five Joint Venture Factory

  Su Cheng followed the several people from the Physical Reform Committee, walking from one end of the factory area to the other and then back again, almost every building and every machine was walked through. The officials in charge of asset calculation carefully labeled each item with a number and recorded it on paper.

  However, Su Cheng's gaze was more focused outside the workshop.

  4,000 mu of land, more spacious than many universities. The plots near the edge are overgrown with weeds, sparsely planted with some untended fruit trees that were probably casually planted by workers when the factory was built, and now they are lush and green, attracting children from the factory to climb and pick.

  Further away, the red brick wall has been damaged, and the temporarily piled up earthbags cannot prevent outsiders from stealing materials from the factory.

  Some young people who are fond of absenteeism are also very familiar with this road. They all have the status of state-owned enterprise workers, and even if they work poorly, they cannot be easily dismissed, and even deductions and job changes will cause disputes. Over time, Director Li became a good person who listened to them. In his words: Which state-owned enterprise worker is not like this? When you get older, marry a wife, and settle down.

  When Su Cheng first heard this kind of talk, he couldn't even laugh.

  Ding Zhipeng patted his hands and said, "Alright, if there's no objection, let's go to the conference room."

  Su Cheng nodded, and a group of people rushed back to the factory building with their own thoughts.

  Everyone was seated according to their position, with Ding Zhipeng undoubtedly sitting in the main seat, Li Zongxi and the female cadre on either side, followed by Su Cheng and another staff member from the physical education department.

  A square and sturdy wooden chair, emitting a series of ear-piercing creaks.

  Ding Zhipeng's mood was good. He had long wanted to carry out a shareholding system trial in such a large enterprise. The Victory Oilfield Machinery Factory is an excellent reference indicator. On the eve of CNPC's listing, separating subsidiaries, re-establishing independent legal persons, introducing a shareholding system, increasing profits, and being more tolerant than before are especially meaningful at this time.

  He gave Su City various preferential conditions - exempting income tax, equivalent to the preferential policies for overseas Chinese investment and so on, all of which were for experimental purposes.

  If anyone wants Su Cheng to invest in the machinery factory, it's Ding Zhi Peng and others. After all, Su Cheng can choose different factories to invest in at any time, but Ding Zhi Peng needs him to find this opportunity.

  Those present whispered to each other for a while, and Ding Zhipeng said: "Regarding the issue of shareholding reform in machinery factories, we will hold a symposium today. Everyone is free to express their opinions. Before everyone speaks, I would like to say a few points."

  "One of them is about the patent issue of the double donkey head oil extraction machine developed by Comrade Su. Everyone knows that in order to produce 1,000 double donkey head oil extraction machines, the Americans paid us $2.29 million. On average, each one actually cost $2,290, which had a huge impact on us. Comrades, our machinery factory produced double donkey head oil extraction machines, but didn't even pay a penny in patent fees."

  A burst of snickering erupted from below.

  Ding Zhipeng looked around with satisfaction, he didn't want today's meeting to go awry.

  Li Zongxi coughed and said, "This is the benefit brought by Director Su. He said that our domestic enterprises produce double-donkey-headed oil extraction machines without paying patent fees."

  "Director Su is selfless." Ding Zhipeng nodded and said, "However, I think collecting patent fees would be more beneficial to our machinery factory."

  The corporate officials present looked puzzled and didn't understand why a shareholders' meeting had turned into a patent fee discussion.

  Ding Zhipeng smiled secretly. This was exactly the effect he wanted. The main task of the System Reform Committee was to reform the system, and meetings like this one had been held at least 800 times. If every time they allowed enterprise officials to speak freely, nothing would be accomplished.

  He stretched out his hands, pressed down and said: "Why do I say that? Because Changqing Machinery Factory and Daqing Machinery Factory are also preparing to launch the Double Horsehead Oil Extraction Machine. The two of them are old-brand oil machinery factories, once they increase production, after our 20,000-unit order, I'm afraid there won't be much left for us. What do you think, Director Li?"

  "Hmm, their factory is bigger than ours." Li Zongxi was not too concerned about what would happen in five years, as he would be retiring in two years.

  Everyone present was a seasoned expert, each with their own calculations in mind. Huo, the lowest-ranking deputy director and an outsider, who had always admired Su Cheng, asked: "If we have to pay patent fees, how much should we set it at?"

  "This is not the point for now, but I think after reforming, shouldn't we set a threshold?" This sentence actually reveals Ding Zhipeng's inclination.

  This is in the interest of maintaining the factory's benefits, and everyone naturally nodded in agreement.

  Ding Zhipeng felt that the timing was right, and with a gentle push of the teacup in front of him, he made a "zzi" sound, while laughing: "After saying so much, let's get back to the issue of enterprise restructuring. Little Wang, tell everyone about the calculation of assets."

  Xiao Wang sat in the middle section, opened his notebook and said: "Our machinery factory, the final assessed fixed assets are 11.2 million yuan, accounts receivable still have 1.4 million, accounts payable 2.58 million, bank loans 3 million yuan, land value 3.85 million..."

  3,850 mu of land, each mu is worth 10,000 yuan, and it's given away for free.

  Su Cheng silently calculated that the factory's total assets were at least 100 million, and he had to invest more than 100 million in order to obtain a 51% stake.

  $1.29 million, at most converted into 7 million yuan, this way, there is a gap of 30 million.

  Su Cheng shook his head, and before he could think deeply about it, the discussion below had already turned upside down:

  "How should our employees and management calculate their shares?"

  "After reforming, are we still considered a state-owned enterprise?"

  "Are cadres with ranks still transferable?"

  "Su Cheng, you say something." Ding Zhipeng suddenly pointed out Su Cheng's name.

  The future boss appeared, and everyone consciously or unconsciously shut their mouths.

  Su Cheng smiled twice and said, "Actually, I think it's like this. Since my patent fee is calculated according to overseas Chinese investment, then our factory's treatment in the future should be looked at from a joint venture perspective. If cadres want to transfer, I won't stop them, each will rely on their own abilities, workers are the same. As for whether or not it counts as a state-owned enterprise, how to calculate shares, what I say doesn't count, but I'll listen to the comrades from the System Reform Committee."

  He kicked the ball back again. Sensitive topic, he really didn't know how to answer.

  Ding Zhipeng raised an eyebrow, cleared his throat and said: "As Comrade Su Cheng said, if we restructure, the factory will become a joint venture, and workers and cadres can move freely. As for shares, in principle, we suggest appropriately increasing wages as compensation. What do you think, Director Su?"

  Su Cheng nodded and said: "If the joint venture is successful, I'll increase your salary by 15% that year."

  Everyone is delighted about the wage increase and expressed their approval.

  Ding Zhipeng listened and nodded slightly, "Since that's the case, the main issue is resolved, regarding the final equity recognition. Our suggestion is to include the patent fees for the 20,000 units of dual-piston oil extraction machines, and have Su Cheng comrade hold a controlling stake of 51% in the Victory Oilfield Machinery Factory..."

  As soon as this was said, the scene completely fell into chaos.

  He gave 3 million yuan!

  Su Cheng looked up at Ding Zhipeng in surprise, not understanding why he wanted to let himself take the stock. To say that the authorization fee for 20,000 units of double donkey head oil extraction machines was indeed worth so much money, only 3 million yuan, averaging only 150 yuan per unit, which is one-tenth of what the Americans gave. However, this sum of money was not given to him, and he didn't seem to want to ask for it either.

  The female cadre saw Su Cheng with a confused face, her expression getting worse and worse, feeling extremely uncomfortable in her heart, thinking: the halo of a "technical worker", first it was one million US dollars, then 3 million yuan in shares, his luck was too good.

  Li Zongxi sat still, unmoving. He was old and worldly-wise, seeing these central officials pushing for reform with great fanfare, but he didn't even bother to speak up, figuring that whether he spoke or not, the outcome would be the same anyway.

  As expected, Ding Zhipeng spread rumors in the factory for a few days before officially posting the notice.

  ……