A doctor who travels through two eras

Lin Sanqi looked at the busy pharmaceutical workshop in front of him and was a little confused:
"Mr. Qiu, will the government allow us to move our pharmaceutical workshop into a building? Or will the residents around here allow us to? Will there be environmental protection departments, drug supervision departments, police, fire departments, etc. that come to cause trouble every day?"

Qiu Minli took Lin Sanqi on a tour and patiently explained:
"Hong Kong is different from the mainland. We have less land resources in Hong Kong. If you want to build a pharmaceutical factory, you need at least several hundred acres of land. I remember visiting a pharmaceutical factory once. The entire factory area covered more than 3,000 acres. I was stunned on the spot.

Since we can’t get land for pharmaceutical factories, and we can’t afford it even if we get it, we can only move into a building. Fortunately, unlike Western medicine, most of our Chinese medicine is traditionally handmade and doesn’t require too many machines and equipment.

As for the pollution problem you mentioned, the smell of Chinese medicine is not toxic. In addition, Xiangjiang’s sewage treatment is very good. The sewage generated by our pharmaceutical production can be treated in a centralized and unified manner, and will not cause environmental pollution or affect surrounding residents. ”

Another Miaochuntang executive who was accompanying him continued:
"For the Hong Kong government, there is actually not much difference between a Chinese medicine factory and a food factory. Think about it, a food processing workshop can be built in a residential area, just like your breakfast shops in the mainland are all under apartment buildings. In fact, the same situation applies to pharmaceutical factories."

Oh~~~
Lin Sanqi understood that it was still the fault of Western thinking.

Westerners do not regard Chinese medicine as "medicine", but as a health product, or a complementary and alternative medicine. From the perspective of human rights and freedom, they will not support you, but they will not oppose you either.

Precisely because of this indifference, the management of traditional Chinese medicine is not so strict, which is in sharp contrast to the situation in China.

Lin Sanqi asked another question:
"Mr. Qiu, I heard that many Chinese medicine companies in our country have also set up factories in Hong Kong, such as Tong Ren Tang, Guang Yu Yuan, Darentang, Pien Tze Huang, Hu Qing Yu Tang, etc. Where are their pharmaceutical factories built?"

Qiu Minli thought for a moment and said slowly:

“I know a little bit, but I can’t remember everything. For example, the Darentang Pharmaceutical Factory is located at 9 Lok Road, Tsim Sha Tsui, not far from here. Baicaotang is located in the Ronghua Center Industrial Building at 18 Taili Street. The Weiyuantang Pharmaceutical Factory is located in Jardine House in Causeway Bay.

If you know anything about Hong Kong, you will know that these places are all within the city limits. So if you, Lingnan Hall, want to set up a factory in Hong Kong, you don’t have to look for an industrial zone, just a building. If you don’t want to bother, just rent the whole building.”

Lin Sanqi nodded repeatedly. Renting would definitely be cheaper than buying, and more suitable for a startup company like Lingnan Hall.

"But Mr. Xiaolin, it's easy to find a site to set up a factory in Hong Kong, but there are two issues you must consider clearly."

"Mr. Qiu, please tell me!"

“One is that housing prices in Hong Kong are not cheap. Whether you buy or rent a house, a pharmaceutical factory needs at least a thousand square meters. Our five workshops add up to more than 2,000 square meters, and we also need a warehouse area, etc. The annual rent is not a small amount.

In addition, you have to hire workers in a pharmaceutical factory, right? Pharmaceutical manufacturing is a technical job, and not just any uncle or aunt can do it, so the labor cost is very huge. For example, the average monthly salary of the masters in our pharmaceutical factory is about 3 yuan.

If you are a master ingredient chef or a management employee, you need to earn at least 60,000 or 70,000 yuan a month, and you will also receive a big bonus at the end of the year. If your product is profitable enough, you can still afford it. Otherwise, the rent and labor costs alone can bring the pharmaceutical factory down.”

Lin Sanqi seemed to be thinking about something, and asked:
"Mr. Qiu, if it's convenient, could you tell me approximately how much of your drug costs are spent on rent and labor?"

For a pharmaceutical factory, the three major costs are definitely raw materials; the second and third are rent, water, electricity and labor expenses; and the fourth is management and sales costs.

Qiu Minli roughly estimated it and replied hesitantly:

"In general, the cost of raw materials accounts for about 60%, and the rent and labor you mentioned account for about 30%."

When Lin Sanqi heard this, he felt relieved. The bulk of the goods were made from raw materials of traditional Chinese medicine, but for this Lin Sanqi was purchasing nothing, and the cost was the same as that of several generations of rice.

In other words, a piece of raw material can be directly regarded as "profit", so small costs such as rent and labor will not have any impact on Lingnan Hall at all.

This advantage is unmatched by others, which means that Lingnan Hall is already in an invincible position.

Lin Sanqi also has another advantage. He doesn't need so many workers to run a pharmaceutical factory.

He could have let the families of the traditional Chinese medicine practitioners in 1960 make the medicine, and then directly travel through time to 2023 to sell it under a private label, which would be equivalent to the Hong Kong Pharmaceutical Factory only serving as a "packaging workshop".

If he had to make some noise to cover up his tracks, Lin Sanqi could also hire a small number of workers to carry out some processes that did not require high technical skills and did not involve core secrets, thus saving a lot of labor costs.

Compared with the high rent and labor costs, the profit tax (corporate income tax) of Hong Kong companies is very low. Generally, it is paid according to the two-tier taxation system:
For profits below HK$200 million, the tax rate is only 8.25%;

For profits of more than HK$200 million, the tax rate is 16.5%. Even the highest tax rate is much lower than that in the mainland.

Moreover, if a person has only one company under his name, he can enjoy a 8.25% tax rate reduction, that is, a tax rate of %.

The key is that Hong Kong shareholders do not have to pay taxes on dividends. After Hong Kong companies pay profits tax, the profits can be put directly into their pockets.

If Lin Sanqi was more ruthless, he would go to the Cayman Islands or Bermuda Islands to register an offshore company, produce in Hong Kong, and export to the mainland.

The principle of taxation in Hong Kong is territorial collection. If the profit does not come from Hong Kong, you can apply for offshore exemption. If approved, you do not have to pay taxes. This can save Lin Sanqi a lot of taxes.

Finally, there is another huge advantage of setting up a factory in Hong Kong, that is, the money earned by the pharmaceutical factory can remain in Hong Kong, or can flow freely abroad.

If the money is earned in the mainland, it cannot be taken out through legal channels. The maximum amount of foreign currency that an individual can exchange is only 5 US dollars, and corporate overseas investment has also been stopped. If you don’t believe it, ask the richest man Wang.

So from the perspective of financial security, it is definitely better to keep the money in Hong Kong, where you can enter or exit freely. After all, Hong Kong is also a part of our country, so it can't be considered a prison, right?
So now for Lin Sanqi, the biggest cost of setting up a factory in Hong Kong is actually just the rent.

There's something to do!

Lin Sanqi, who was confident in his decision, smiled more relaxedly and said to Qiu Minli:
"Mr. Qiu, I have a request. You see, our two companies are already strategic partners in full cooperation. Can you help us find a place to open a pharmaceutical factory? The area does not need to be too large, no more than one thousand square meters will do."

Qiu Minli's eyelids twitched: "Boss Xiaolin, do you really want to open a pharmaceutical factory in Hong Kong?"

As the saying goes, peers are enemies.

Since Lingnan Hall is in the mainland, it has a strategic partnership with Miaochun Hall; but if Lingnan Hall enters Hong Kong, it will directly become a competitor with Miaochun Hall.

Lin Sanqi saw Chairman Qiu Minli's concerns and clarified:
"Mr. Qiu, don't worry. Our company has set up a pharmaceutical factory in Hong Kong. In the initial stage, we will mainly produce four products. One is Angong Niuhuang Pills, the second is Pian Zaihuang, the third is a medicine similar to Yunnan Baiyao, and the last one is an aphrodisiac.

I think these four medicines should not conflict or compete with your Miao Chun Tang products, so you don’t have to worry about us stealing your business. Our Lingnan Tang Chinese Medicine Clinic will not open in Hong Kong.”

Lin Sanqi thought, although there are many wealthy people in Hong Kong, the market is only so big after all.

In comparison, the mainland has an area of ​​960 million square kilometers, which is a huge market that is enough for Lingnan Hall to make a lot of money. Why should it come to Hong Kong, which is a snail shell, to fight with others?

Qiu Minli was shocked when he heard this:
"Boss Xiaolin, did I hear you right? Angong Niuhuang Pills, Pian Zai Huang, and Yunnan Baiyao are all state-level secret prescriptions. Do you have the ability to get them?"

Lin Sanqi gestured and Yin Lianyi took out a few small boxes from her briefcase.

"Mr. Qiu, you are also an expert in traditional Chinese medicine. Please taste these samples produced by our company. Do you think they are authentic?"

To be honest, Qiu Minli thought that Lingnan Hall would not have the connections and ability to obtain the three confidential prescriptions. However, when he thought about the precious Chinese medicinal materials that Lingnan Hall could obtain that others could not, he became hesitant.

With half belief and half doubt, Qiu Minli opened the sealed pill himself.

Half an hour later, Qiu Minli and several doctors at Miaochuntang looked at each other and saw shock in each other's eyes.

“Authentic, absolutely authentic, more authentic than any similar Chinese patent medicine on the market now.”

"Yes, the ingredients used in Lingnantang's Angong Niuhuang Wan are more authentic than those in Tongrentang, and if nothing unexpected happens, it is made entirely according to ancient methods."

"This Pianzihuang is also different. Both the medicinal flavor and smell are stronger than those from the Zhangzhou factory. I think the medicinal effect is also better!"

All the doctors at Miaochun Hall were full of praise, and everyone at Lingnan Hall had a relaxed expression.

Qiu Minli reluctantly put down the pill and smacked his lips:

"Boss Xiaolin, I am convinced. Lingnan Hall's heritage is far beyond the reach of Miaochun Hall. I have an unsolicited request. If you want to set up a factory in Hong Kong, you can let me handle the site selection and all the formalities. After all, I have more connections in this area.

But I have a small request, hehe, if possible, when your medicines are mass-produced, can I become the general agent of your Lingnantang medicines in Hong Kong? Don't worry, we will go completely according to the market price. "Lin Sanqi and Lin Tianhua looked at each other and saw the joy in each other's eyes.

The pharmaceutical factory hasn't even opened yet, but a sales channel has been found. If others are so confident in Lingnan Tang products, then I should be even more confident.

Now that the pharmaceutical factory is ready to be built, the remaining thing is to find the most important source of Chinese medicinal materials, such as where the musk comes from.

If the source of musk and bezoar is not resolved, it will be a big problem whether they are produced in Hong Kong or sold in the mainland, and they will not be able to withstand investigation.

Feng County, Shaanxi.

Feng County is located in the heart of the Qinling Mountains, where musk deer have been breeding for generations.

Since the 80s, Feng County has started artificial breeding of musk deer and has gradually formed a set of mature and highly operational breeding techniques.

After 40 years of hard work, Fengxian County has built 351 standardized musk deer breeding farms, with a total of more than 1 artificially bred musk deer. The musk production accounts for 80% of Shaanxi's and more than 60% of the national total.

It is known as the "Hometown of Musk Deer in China".

Lin Sanqi, Lin Tianhua, Yin Lianyi and Meng Peng appeared in Feng County together this time, accompanied by a local medicinal material dealer Dong Shuangniu, to investigate the possibility of building a new musk deer breeding base in Feng County.

In a ravine in Yanwan Town, Liu Genhua, the proprietress of the local musk deer breeding base, was introducing the group to Lin Sanqi and his party:

"Let me tell you, you outsiders think musk deer farming is too simple. I bought 100 musk deer, and half of them died in the first year. A musk deer cub costs 60 yuan, and we lost more than yuan in one go. That's a huge loss for us."

Lin Sanqi looked at the few deer-like animals in the distance and was a little surprised:
"Oh, a young musk deer costs more than 10,000 yuan, how much does this adult musk deer cost?"

Liu Genhua began to settle the accounts in detail:

"The current market price of an adult forest musk deer is 15 yuan. It can produce about 20 to 400 grams of musk each year. Each gram of musk is sold to buyers for yuan, so it can be sold for about to yuan a year.

But don’t think that these seven or eight thousand is the net profit. The cost also includes taking care of the musk deer’s food, drink, defecation and urination.

This kind of animal is very difficult to raise. It needs to eat three meals a day. In the morning, it eats dry leaves, and in the afternoon, it eats a nutritious meal. The nutritious meal contains carrots, apples, pumpkins, etc.

It eats 70 to 80 kilograms of leaves in a day, and only eats sweet and astringent leaves. It doesn't like sour or spicy leaves.

In the summer, my wife would search the mountains for leaves that musk deer like to eat, and once she found them, she would taste them herself, and she was once poisoned because of this.”

Yin Lianyi was a little surprised when she heard this: "He's not very tall, but he can eat a lot. And he has such high demands?"

Liu Genhua rarely complained to others, so she slapped her thigh and complained:

"Not only do forest musk deer have high requirements for food, they only eat fresh food and never eat overnight food. They also have new requirements for water. They only drink mountain spring water, but they get diarrhea if they drink raw water. We have to boil it and cool it down before we dare to give it to them.

And you see, a musk deer can only be kept in one cage. Usually, male and female musk deer live separately and live a solitary life because they are afraid of people, noises, noises, etc. If you honk your car horn a few more times outside the door, they will die immediately.

Musk deer are very good at jumping, and they can easily jump 2 meters. The cage needs to be reinforced and covered with a protective net. One cage for each musk deer, just calculate the construction cost and it will be a lot. "

Liu Genhua's husband is an honest old farmer. He also smiled at this time:
"They are too difficult to take care of, and they are prone to illness. A small cold can kill them, so over the years our breeding base has been taken care of by the two of us, and outsiders generally don't come."

Lin Sanqi then remembered that no wonder they had disinfected their entire bodies and even sprayed disinfectant on the soles of their shoes before entering the base.

It seems that if Lin Tianhua hadn't been introduced by his local friend Dong Shuangniu, they wouldn't have been able to get in.

Lin Tianhua then asked, "Sister Liu, how much musk can your breeding base produce in a year? And how much profit can it make?"

This is a business secret, so Liu Genhua naturally refused to tell the truth and could only answer vaguely:

"It's easy to calculate. Let's say a male forest musk deer produces 15 grams on average. We have 60 male forest musk deer in our breeding base, which can produce about 1000 grams of musk. Depending on the quality, one gram can usually be sold for three to four hundred yuan."

Yin Lianyi studied accounting and immediately blurted out:

"The annual output value is about 40 yuan. After deducting the cost, I can make half of it, which is yuan. Although it's hard work, the profit is not bad."

Liu Genhua smiled bitterly and said, "This is the income in a normal year, but if you encounter a plague or an accident and a dozen or twenty musk deer die, then this year's work will be in vain."

Dong Shuangniu, a local medicinal material dealer, also helped explain:
"Raising forest musk deer is very risky. You can earn 200,000 or 300,000 yuan with hard work, but musk deer are too difficult to raise and die too easily. Many farmers have gone bankrupt from raising musk deer. In addition, the initial investment cost is very huge, and most farmers cannot afford it."

Liu Genhua interjected: "We invested 100 million yuan at the beginning, which was our family's savings, and we also borrowed from relatives."

Dong Shuangniu continued:
"Musk deer are difficult to raise, and it is definitely not as profitable as advertised. The information you find online now is all from the scams of musk deer cub sellers. They make money not from musk, but from selling cubs, so naturally they want to promote how to make money from musk deer.

Feng County is known as the hometown of musk deer, but the total number of musk deer raised in the county is only over 10,000, which is not as large as a pig farm. If it was really so profitable, given the nature of the Chinese people, we would have rushed in and raised millions of musk deer.

Meng Peng suddenly laughed after hearing this:

"I thought of a joke on the Internet that said if the stock market could really make money, then we would have to rely on connections and use backdoors to open an account."

Dong Shuangniu suddenly thought of something and reminded:
"Speaking of using connections, if Mr. Lin really intends to invest in a new musk deer breeding farm in Feng County, even if the technical difficulties are solved, it may not be that easy."

Lin Sanqi and Lin Tianhua were both a little confused: "Oh? What do you mean?"

"Boss Lin, this is the case. Musk deer are a first-class protected animal in China. Don't underestimate this little guy because he looks gray and inconspicuous. He is treated the same as a giant panda. Think about it, is it possible for you to raise a giant panda?"

Yin Lianyi smiled and said, "Indeed, if giant pandas could be raised casually, I would also like to raise one as a pet."

Dong Shuangniu moved his fingers and continued to introduce:

"If you want to raise forest musk deer, you need to apply for a lot of certificates, such as a license for the domestication and breeding of nationally protected wild animals and a certificate for animal epidemic prevention conditions, both of which are very difficult to obtain.

In addition, if you want to invest in Feng County, you must go through the registration procedures for the land used for production facilities, sign a land use agreement and register it with the Land and Resources Bureau and the Agriculture Bureau, pass environmental impact assessment approval, obtain a pollutant discharge permit, conduct industrial and commercial registration, and go through the registration procedures for the breeding farm with the Animal Husbandry Bureau.

The business environment in the north, haha, you know, there are so many certificates to get, except for this gesture, the whole set of procedures cannot be completed in a few years. If the gesture is not in place, it will be a waste of effort. "

Lin Sanqi was a little surprised:
"If it's difficult to get a license, then how did Aunt Liu get this breeding base approved?"

What Lin Sanqi was thinking was, if these two old farmers could raise musk deer, then why couldn't a regular soldier like him apply for a license?

Dong Shuangniu laughed, and Liu Genhua explained:

"In fact, we are affiliated with a large breeding base, so all the musk we produce must be sold to them. We cannot sell it privately, so the price is suppressed."

Oh, Lin Sanqi and Lin Tianhua both nodded slightly. This is just like doing a project. The Liu family’s breeding base belongs to a subcontractor, and the general contractor is someone else.

Dong Shuangniu only revealed some inside information at this time:
"You Guangdong people all know how precious musk is. You traveled thousands of miles to Fengxian to set up a musk deer breeding base. What does this mean? It means that once musk is produced, it will be in short supply. As long as you can make money, there will be people who want to monopolize it.

At present, the musk in Fengxian County is basically monopolized by several large domestic pharmaceutical companies, and all breeding bases in Fengxian County can only supply them. You can buy some secretly, but it is impossible to purchase in large quantities.

So, if you come to Feng County and want to invest in a musk deer breeding farm and produce and sell your own products, then you are essentially taking advantage of someone else's business. Even if you have connections and have obtained all the certificates, you still won't be able to run the farm stably.

What if someone messes up? It doesn't have to be complicated. Just set off firecrackers around your farm every day. This trick alone may scare all your musk deer to death.

But you can't call the police. They didn't release the animals in your farm, but outside. They used an open conspiracy. What can you do with them?" (End of this chapter)