1988: Back to the human world for a few years

Chapter 266 Are You Crazy?
"Chief Yang, in view of the fact that our country's Chinese herbal medicine companies have found that in the past few years, there are more and more cases of artificially cultivated herbs passing off as wild herbs, as well as frequent problems such as dyeing, sulfur fumigation, and weight gain among the herbs exported to your country;"

"Therefore, no matter how big or small the scale of our cooperation is, and no matter how much shares each of us holds in this new joint venture, I request... that these medicinal herb planting bases be handed over to our Sankyo Co., Ltd. for management!"

Suzuki looked at Yang Mo sincerely and said, "Chief Yang, you must know that our island country has extremely strict quality control over food and medicine. In addition to the strict control over the pesticide residues and heavy metal content in Kampo medicines, there are also requirements for the proportion of various medicinal ingredients in each dose of finished medicine. Once the management of a certain link in the planting process of medicinal materials is not in place, the entire batch of medicinal materials cannot even be used for production!"

"This loss is too great... not only in terms of money, but also in terms of time and market opportunities... Section Chief Yang is a young talent that I have rarely seen in my life. He should know what it means to lose a first-mover advantage of one or even three or four years in the booming Chinese herbal medicine market!"

Yang Mo calmly looked at the old man in front of him who was speaking with great emotion, and resisted the urge to roll his eyes.

Extremely strict management?

Please!

You Japanese people are probably telling lies so many times that even your own people are almost believing them!
This may be enough to fool the ignorant masses, but if you want to fool me... No way!
As someone who has lived in an era of extremely abundant information, who doesn't know that your island country is the country with the most types of food additives and the largest per-acre pesticide use in the world?

Mitsubishi tampered with automobile fuel efficiency data, Takata tampered with airbag test data, and Kobe Steel was found to have long-term falsified certificates for nine products including aluminum, copper, and steel. A well-known frying pan was simply made in China and had a thin layer of steel with its own logo welded to the bottom... Even the Chinese herbal medicine that is now popular all over the world was found to have added analgesic ingredients.

If this was said by a small business in an ordinary island country, it would be completely understandable. After all, they do not have any resources or capital to override the explicit rules set by your country.

But what is the scale of your Third Co., Ltd. and what is the amount of social resources it has?
Are you telling me that you have strict management?
You are kidding me!
Seeing that Yang Mo did not reply, Suzuki Cijian frowned and said in a slightly heavier tone: "Chief Yang, although your country has realized the importance of standardized planting since the dumping of raw materials at the French joint venture winery in Tianjin, it has also achieved some results in the past few years;"

"But with all due respect, these advances are only limited to some agricultural products. Your country still has zero management experience in the cultivation of high-standard medicinal herbs!"

"But we are different. In order to ensure the quality of Chinese medicinal materials production in Southeast Asia over the years, we have explored a relatively mature GAP management standard; from ecological environment, planting to cultivation, harvesting, worker management, processing, preparation, testing, transportation, packaging, and even the dialectical adaptation of professional pharmacists and technicians, each link has a corresponding strict management system..."

Before he could finish his words, Yang Mo interrupted him in a slightly rude tone: "I know, isn't it just the streamlined management model under the KPI standard + green ecological technology? "

"All related links are sorted out, and then all sub-links are separated, and then handed over to more than ten groups of people to be responsible for and supervise. If any indicator in the previous process is not met, they will refuse to sign and accept, and then trace the responsibility and make rectifications... We have been using a similar management system for a long time at Momo Baitou. This is nothing new to us. Our ancestors who worked with craftsmen thousands of years ago have all the insights left over."

As he spoke, Yang Mo looked at Suzuki Jiken with some dissatisfaction: "Senior Managing Director Suzuki, I think your attitude towards the conversation is still not at ease, or... you really don't know much about China."

"The reason why we have not been able to promote the high-standard streamlined production and management model on a large scale is not because we do not understand this management system, nor is it because we cannot implement it, but because the capital investment scale and profit expectations of most planting projects are not enough to drive this management model... Do you understand the difference?"

Yang Mo’s words are very clear. What model is not a model? You may be able to fool ordinary companies with this, but forget it if you want to fool us!
It is true that management experience and management systems are important, but they are just skin and flesh!

As long as the profits can be guaranteed, no matter how strict and demanding your requirements on farmers and workers are, they will implement them 100% in an orderly manner!

But if there is not enough profit to support it, even if you set the management regulations perfectly, what will come out is still only a bunch of defective products!

Therefore, you can praise and show off the GAP management model that you have figured out on your own, but you cannot use it as a weapon to seize the initiative!

Also, if you continue to treat us as ignorant newbies and fool us at will, then there is no need to continue the negotiations.

Suzuki Jiken's expression froze when he heard this. In Southeast Asia, he had met too many business leaders who were superstitious about the successful experiences of island countries. He also heard from his colleagues that there were many metaphysical leaders in China. Therefore, he subconsciously brought out this GAP management model as a bargaining chip to seize the initiative. However, he did not expect... the young section chief in front of him did not buy it at all?
Looking at the stunned expression on the face of the Mediterranean old man, Yang Mo snorted coldly. Not to mention an old VC like him, even ordinary people, who have seen so many stupid bosses shouting "wolf culture" all day long, with Huawei and Pang Donglai as a foil, also know that whether an enterprise or a project can operate at a high standard, the key point is not the design of those rules and regulations, but the profit-driven force... If you have the ability to pay your employees a monthly salary of 80,000, no matter how harsh your system is, your employees will treat those rules and regulations seriously as if they were ancestral teachings.

After thinking for a while, Yang Mo suddenly laughed: "But since it is a joint venture project, we need to show some sincerity and give your company some reassurance;"

"How about this? It's impossible for these Chinese herbal medicine planting bases to be completely handed over to your company for management, but there is no problem with joint management... It's just about managing the details. You will provide a detailed management manual and subsequent improvement system, and provide technical points and KPI indicators for each link. We will be responsible for specific coordination and implementation... Of course, we must also guarantee your right of supervision."

Yang Mo added, "In fact, Senior Managing Director Suzuki, don't be angry. It is unrealistic to let you take full charge of the production of these GAP Chinese herbal medicine planting bases... After all, due to national conditions, these fields must be handed over to local villagers for planting... and you know the attitude of ordinary Chinese people towards your country."

Seeing that this guy wanted to introduce advanced management experience for free but was unwilling to pay the price, Suzuki Jiken felt like his teeth were about to break.

What do you mean it’s just taking care of the details?

You are from the oil industry, don't you know that this is just like industrial technology, trial and error parameters are the most valuable thing? Do you know how much we paid to figure out the planting parameters of these Chinese medicinal materials?
However, Yang Mo's last sentence made him hesitate. He knew the Chinese people's feelings towards the island countries. Once they really took over the planting management, this sentiment would spread to the production link, and the consequences would be extremely serious... The outside world didn't know, but he knew very well that over the years, the island countries' pharmaceutical companies' resource development and planting projects in Southeast Asia had caused many troubles due to ethnic sentiments.

This is the case in Southeast Asia, let alone China, which has major historical grievances with the island countries that cannot be forgiven... But China is a big country with a red system. Once a big mess breaks out because of national sentiment, they will not be able to deal with it even if they want to.

damn it!
Why is the GAP Chinese medicinal materials base the only strategic point that can attract the First Co., Ltd.?
Why can these fallen medicinal herbs only be grown in China?!
Suzuki Jijian took a deep breath and said with a grim expression: "Okay! This matter can be discussed in detail later by the people below!"

Seeing this, Yang Mo laughed and said, "Don't be disappointed, Executive Director Suzuki. Our two companies are working together to seek the future. Although your company can't do much for the GAP production process, we have to rely on your company for GMP certification (Good Manufacturing Practice), GCP certification (Good Clinical Practice), GLP certification (Good Non-clinical Research Practice), and GSP certification (Good Distribution Practice). "

Hearing this guy emphasize the words "seeking a future" so heavily, Suzuki Jiken almost vomited blood on the spot.

your sister!
It's not enough that you get our entire set of GAP management details system for free, you even don't let go of GMP and GCP?

Suzuki Ciken clenched his fist under the table and suddenly laughed: "No problem! No problem! For the sake of Sino-Japanese friendship, we are willing to work hand in hand with you!"

After expressing his opinion on the matter in a vague way, Suzuki Jijian suddenly changed the subject: "Chief Yang, with all due respect, the details of the follow-up cooperation should be handed over to the people below to discuss in detail in the subsequent communication work. Shouldn't we talk about something more important today?"

"Something more important? Executive Director Suzuki, do you mean...?" Yang Mo pretended to be confused even though he knew the truth.

Suzuki Jiken laughed: "That's naturally the investment scale and share ratio of the joint venture!"

As he spoke, Suzuki Jiken seemed to be afraid that Yang Mo would change the subject. He straightened his body and his expression suddenly became serious: "Chief Yang, let me be honest. Regarding the scale of this cooperation, our investment amount is entirely determined by the area of ​​the authentic medicinal material planting base that you can obtain... There is no upper limit!"

"If we can prove that the medicinal herbs produced by your planting base are genuine and exceed 1 mu, then we will invest 40 billion yen to build a pharmaceutical factory of corresponding scale and corresponding supporting projects; and for every 1 mu of planting base, the basic investment amount we agree to is million yen;"

"In addition, with 1 mu as the bottom line, for every additional 1 mu of GAP Chinese medicinal materials planting area, we are willing to add 10 billion yen as supporting industry investment... As for whether the additional investment of 10 billion yen per step should be distributed to various surrounding supporting projects or concentrated to expand the factory, we can discuss it later, and we are willing to take your opinion as the main consideration."

Oh?
“每1000亩的基础投资额为1亿日元？并且在超过1万亩的基准范围后，每多1万亩就追加10亿日元的投资？……贵社的气魄很大啊！”杨默这次是真的有些被惊到了。

Suzuki Jiken laughed, but waved his hand: "At a time when modern agriculture has been implemented for nearly a hundred years, the initial investment in the ecological transformation of the soil in the GAP medicinal material planting base is quite large, and there are many surrounding projects that need to be built... This is a very expensive project!" "However, for the sake of Sino-Japanese friendship, our Sangong Co., Ltd. has shown 100% sincerity this time. As long as Section Chief Yang has a planting base that meets the conditions, we will invest as much money as possible, and we will never lie... It's just that our sincerity is here, but how much investment we can get for this project depends on your ability, Section Chief Yang."

The cost of a authentic medicinal material production base is much higher than that of ordinary farmland. In later generations, the land rental cost, land transformation cost, organic fertilizer and special medicine cost, human poverty alleviation cost, medicinal seedling cost, management technology cost, and even transportation cost per acre of the base are about four to five thousand yuan per acre per year. This means that for every 1 acres, a capital investment of billion yuan is required each year. For some precious medicinal materials, the investment cost will be even higher.

But the current prices and labor costs in China are very low. Even if calculated based on a three-year cycle, an investment of 1 million yen per thousand acres is indeed not low. This is an investment amount based on the standards of precious medicinal materials such as Panax notoginseng and ginseng. It can be said that there is sincerity... You know, in 2005, when the American Sunshine Group planned to develop 1500 acres of "Northern Medicine" resources in Changbai Mountain, Jilin, its investment in Hualiang Pharmaceutical was only million US dollars.

Yang Mo raised his middle finger fiercely in his heart. You obviously know that in Qilu, which focuses on industry, there is not much land that is suitable for transformation and growing high-quality authentic medicinal materials. That's why you said this, right?

However, he also knew that due to the rapid appreciation of the Japanese yen, those companies with international business and a keen sense of smell were eager to spend the yen in their hands as soon as possible... and even wanted to borrow money to spend it. Therefore, Suzuki Jiken's statement that "there is no upper limit" was not an exaggeration in the context of Qilu.

He laughed out loud, "Then your company will have to spend a lot of money this time... In three months, we need to acquire a 3 to 5 mu authentic medicinal herb planting base. I wonder if your company has the ability to take it over?"

5 to 6 acres?

Suzuki Jiken was shocked: "So many!?"

Yang Mo smiled softly: "How much? Tsumura Corporation plans to invest 70 to 90 mu of GAP planting bases in our country within ten years."

"To be honest, it's because Tsumura Co., Ltd. still lacks influence in clinical medicine and your country's pharmacist community. In addition, they mainly export finished drugs and have not yet passed the American FDA application. Otherwise... these authentic medicinal material bases may not be the first choice for cooperation with your company."

To be honest, it is still quite a lot. After all, according to the rules of the agreement just now, Sankyo Co., Ltd. will have to invest 90 to 100 billion yen in the planting link alone, which accounts for 1/4 of Suzuki Tsutomu's investment budget for this trip.

Hearing the name of Tsumura Co., Ltd., Suzuki Jiken's pupils shrank, but when he heard Yang Mo emphasize the words "its influence in clinical medicine and your country's pharmacist community is still lacking for the time being", he immediately understood the other party's considerations.

As the ancestor of "Kampo medicine" and "Korean medicine", the reason why traditional Chinese medicine has had little presence in the international arena is that it has not obtained clinical certification from most countries in the world. Due to the rejection of European and American pharmaceutical companies, it is also difficult for traditional Chinese medicine to take the professional route of "doctor/pharmacist" abroad.

Obviously, Yang Mo, who had already pointed out his core demands before the negotiations, brought GCP and GLP certification into the scope of negotiations just now, and was willing to give priority to the cooperation with Sankyo Co., Ltd. on the 50,000 to 60,000 mu of authentic medicinal materials planting base. The reason was nothing more than wanting to pass the Chinese medicine clinical drug certification on the island country, and then make a small hole in the international market through its own brand.

Ha ha……

Is this another strategy of exchanging space for time?
Although Chinese herbal medicine is now experiencing a rapid growth momentum worldwide, these Chinese companies seem to be taking things for granted!
However, for Sankyo Co., Ltd. now, the more authentic medicinal material planting bases it can obtain, the better. Therefore, Suzuki Jiken just laughed and said, "It's only 15 billion yen at most. Chief Yang is right... I was too abrupt!"

After apologizing briefly for his gaffe, Suzuki Jiken put on a serious expression again: "Chief Yang, I have to say that you are completely different from the Chinese corporate leaders I have dealt with before. Not only do you have a long-term vision, but your understanding of business is also much more profound."

"So, next, the most important and crucial topic of communication, I hope you can give us enough understanding!"

The biggest part of the drama is coming, and Yang Mo's face is full of seriousness: "Senior Manager Suzuki, please speak!"

Suzuki Jiken's face showed a solemn and struggling expression. After hesitating for a long time, he bowed deeply and said, "Chief Yang, you are the leader of this cooperation negotiation. I don't know if you have the authority. If you don't have this authority, I hope you can convince the leaders of your company that the total investment scale of this joint venture company may be as high as 150 billion yen. The division of shares between the two parties should not follow the official practice of your China!"

After finishing speaking, Suzuki Jiken raised his head and gritted his teeth: "Chief Yang, with all due respect, the 50-50 shareholding model that your country's government insists on has too many drawbacks!"

When these words were spoken, a group of rookies in the drilling company were immediately shocked. Now is the ice-breaking period between China and Japan. As an executive director of an island company, is it appropriate for you to say such words that are somewhat critical of the Chinese officials?

Not to mention rookies like Bao Shuxian and Bai Mengmeng, even Miss Mu was scared. The drilling company is a state-owned enterprise, and the other party is a well-known senior executive of a pharmaceutical company in the island country. Once this news gets out and is exaggerated by someone with ulterior motives, it will definitely cause big trouble.

Looking at Zhu Tianrang, who had cold sweat on his forehead and was looking at another minister in private, Yang Mo turned his head and stared at Suzuki Jiken for a while, then suddenly stood up.

Seeing Yang Mo's action, Suzuki Ciken's heart tightened and his face couldn't help but turn pale.

It's no wonder that an old fox like him is so nervous. It's true that being able to obtain 50,000 to 60,000 acres of GAP Chinese medicinal materials planting base in one go is a feat worthy of being written about at the moment for Sankyo Co., Ltd. The value of the 10 billion yen investment is even ten times the profit of 10 billion.

To be honest, after Yang Mo pointed out several key objective factors that he had overlooked, he really did not have the confidence to secure so many GAP planting bases in other project investigation sites outside of Qilu... Even if it was only a quarter or even a tenth, he did not have enough confidence.

But the problem is that, unlike other companies, these GAP Chinese medicinal materials planting bases are too important to Sankyo Co., Ltd., and their merger process with Daiichi Pharmaceutical Co., Ltd. will not be completed in one or two years. Therefore, whether for the long-term interests of the project itself or for the consideration of not creating variables for the subsequent merger work, he cannot accept the 50-50 equity split model that the Chinese government has insisted on in joint venture projects over the years.

But Yang Mo suddenly stood up...

As expected, people in China’s state-owned enterprises dare not cross that red line?
Even if this young man in front of him clearly had a good understanding of international business cooperation and quietly avoided the many traps he had set during the negotiation process?

At this moment, Suzuki Jiken felt a strong sense of regret in his heart, and even had the urge to stand up immediately to retain the other party... The tens of thousands of acres of GAP Chinese medicinal materials planting base that he could get immediately became a flying duck because of his own words. This major mistake was enough to make him transfer to a subsidiary company to retire.

Amid Suzuki Jiken's struggling expression, Yang Mo came to the door of the conference room, turned around and glanced at a few rookies who were packing up documents and meeting minutes and preparing to leave, but calmly turned the door open and looked outside, then closed it again.

Amid the stunned eyes of the crowd, Yang Mo walked back to his seat, then smiled gently at Suzuki Ciken: "Senior Managing Director Suzuki, as the person in charge of this negotiation and cooperation, I can tell you with certainty... In fact, if the other party is sincere enough, it is not impossible to think of a way to deal with this matter!"

hiss~!

There was a sound of cold air, and several rookies looked at Yang Mo in disbelief.

Our Section Chief...

My buddy...

My own master...

Is this crazy!?

(End of this chapter)