in2ebook Chapter 277 Transformation
Chapter 277 Transformation
Wen Qing and Xu Shengli went to the District Industrial Bureau together, which was where Wen Qing used to work. Her leader, Director Ye of the Science and Technology Department, had been promoted to deputy director of the District Industrial Bureau, but he was still elegant. When he saw Wen Qing, he said happily, "Xiao Wen, you are now an excellent female entrepreneur. You are really capable."
Wen Qing said modestly: "Director Ye, you also know that I have no way to retreat. I can only keep rushing forward. Fortunately, I am lucky."
After the two men finished catching up on the past, Director Ye said, "In recent years, senior leaders have said that we need to emancipate our minds and develop a diverse economy, which has indeed brought development opportunities to the private economy. At the same time, many state-owned enterprises have been defeated in market competition due to their conservatism and lack of ambition." His tone was somewhat sad.
Wen Qing said: "Only a few failed, and more state-owned enterprises seized the opportunity and developed."
Director Ye said: "Yes, when you were in the Industry Bureau, we started to promote technological transformation in enterprises. Some enterprises seized the opportunity and upgraded their technology. Later, most enterprises developed well."
Wen Qing nodded: "Not only does technology need to be ahead, but companies also need to work hard on management. Market competition will be more intense in the future."
They explained the reason for coming to the Industrial Bureau, which was mainly because the district meat processing factory owed them payment for goods, and now they wanted the government to handle the matter.
Director Ye was very troubled. The meat processing plant was a state-owned enterprise and was under their management. Of course, it was not just the meat processing plant that had problems.
The meat processing plant is responsible for purchasing and slaughtering live pigs. Under the planned economy, they had no idea how much to purchase and at what price. In addition, there was only one open sales channel in the market, so the company leaders did not have to consider anything but executing the plan. Although some canneries owed them payment for goods, their book profits were stable and they lived a comfortable life. Now that the market has been liberalized and competition has intensified, these companies have unfortunately become the first losers on the road of economic reform and development without government support.
This is exactly the case with the meat processing plant. Now that the purchase price of live pigs has gone up, if the pigs are sold at market prices, the cost of the plant will be too high and the plant will not make any profit.
Wen Qing heard that the factory had not paid wages for three months, and that workers had been stealing supplies and pork from the factory. The factory had no choice but to stop production. What's more, butcher shops now do not necessarily go to meat processing plants to purchase goods, and ordinary people do not necessarily go to butcher shops to buy meat, just like ordinary people do not necessarily go to grain stores to buy grain. These things are all available on the free market.
The Sifeng District Industrial Bureau decided to promote the restructuring of a number of inefficient enterprises such as the meat processing factory, and intended to sell the meat processing factory to solve its debt and employee placement problems.
Xu Shengli has always cooperated with the meat processing plant. Most of the live pigs he ordered were sold to the meat processing plant, so the meat processing plant still owes the feed factory more than 160 million yuan in payment for the goods.
When Wen Qing heard that there was so much debt, she was very dissatisfied. She had been asking for cash payment and spot goods. Changxia Winery executed the request very well and there was basically no accounts receivable. But Xu Shengli did not follow her request. When she asked the reason, Xu Shengli said that the Meat Processing Factory was a long-term cooperation partner and it was embarrassing for them to pay cash. Wen Qing was very angry, but the problem was already there and she could only solve it.
Xu Shengli also realized that if the meat processing plant went bankrupt, their Changxia Feed Factory would be estimated to lose more than 100 million yuan. Therefore, he persuaded Wen Qing to buy the meat processing plant and run it herself. However, a state-owned enterprise is still a state-owned enterprise no matter how bad it is. She had to find the Industrial Bureau to solve this problem.
Director Ye smiled and said, "Xiao Wen, I see you are quite rich, why don't you buy the meat processing plant?"
Although Wen Qing had this plan, she couldn't show it, so she declined, "I'm already busy running the feed factory, and the meat processing factory is completely different from our feed factory. I don't understand the ins and outs of it, so I don't dare to take it over."
Director Ye thought it was a good idea for Wen Qing to take over this burden, and advised: "According to our calculations, the meat processing factory has total assets of 361 million yuan, total liabilities of 320 million yuan, and a net asset of 40 yuan."
Wen Qing smiled and said, "Director Ye, this is the book data, right? According to our understanding, the meat processing factory still has more than 200 million yuan of payment for goods that have not been collected, and the longest account age is more than 5 years. Do you think this money can be collected? But I heard that even the invoices can't be found, and the employees have not been paid for three months. The wages owed to the workers are 25 yuan, and there are also bank loans. So, the meat processing factory's assets are more than 150 million yuan in liabilities."
Moreover, the meat processing plant now has 178 people, including 8 factory-level cadres, 54 middle-level cadres, 116 ordinary employees, and 21 retired employees. No one wants to take on this burden.
Director Ye was a little embarrassed and said, "Hey, isn't this what's written in the report? Besides, the meat processing plant covers an area of 50 mu, so the location is still good."
Wen Qing asked back: "If we take over the meat processing plant, what are the conditions?"
Director Ye smiled and said, "The transfer price is the net assets on the financial statements. We also need to pay the employees' salaries, assume the debts of the original meat processing plant, and take over the employees."
Wen Qing asked: "What about the money the meat processing plant owes our feed factory?"
Director Ye still smiled and said, "That will happen after you take over."
Wen Qing frowned: "Director Ye, it's not that I don't want to help the meat processing plant solve the problem, but I really can't come up with so much money." She was not a sucker.
Director Ye had no choice but to speak frankly: "Xiao Wen, you also know that in order to prevent the loss of state-owned assets, the government has very strict regulations on enterprise restructuring. The money that should be collected must be collected. If you have any ideas, please feel free to raise them."
Wen Qing thought for a moment, "First, we need time to digest these bad debts, that is, accounts receivable that cannot be confirmed. Secondly, we cannot accept all the employees in the factory. There are more than 60 cadres in such a factory with more than 50 people. I only want employees who are capable and willing to work, and I will not keep idle people. The retired employees will be handed over to the government for management. Third, the yuan bank loan of the meat processing plant was formed by the fiscal "grant-to-loan". In essence, it is the capital supplemented by the fiscal budget. I cannot bear it, but the bank has loan write-off regulations. Now that the meat processing plant has gone bankrupt, it should be possible to write it off. Fourth, all the land of the factory is transferred for compensation, and we have full disposal rights in the future."
Director Ye nodded: "Your requests are quite reasonable. Let's study them further."
Wen Qing and Xu Shengli returned to the feed factory. Wen Qing said, "Looking at the attitude of the Industrial Bureau, it's not impossible for us to acquire the meat processing factory. You can go and find out about the employees of the meat processing factory privately. Who are capable? What are their specialties? Who have bad intentions? Who have dirty hands and feet? We can't accept these people."
Xu Shengli also realized that he had made a mistake and could only try his best to make amends. He turned around and quietly went to find someone to find out what happened.