In 1978, I was admitted to Harbin Institute of Technology

Chapter 230 Why does Harbin Institute of Technology get 900 while the manufacturing plant gets 80? They want a bigger share of the profits without taking any risks?

"Let's stop using specific figures and just give 30% of the annual profits of the school-enterprise office to the school."

Xie Wei thought for a moment and then gave Zhang Mingqiu a profit-sharing ratio that surprised him.

"30%? 30% of the surplus after all investments?"

If that's the case, it would be better not to mention it at all, and just continue to pay a fixed amount to the school every year as before.

Most of the annual revenue of the university-enterprise cooperation office is invested in continued research and development.

Xie Wei also glanced at Zhang Mingqiu with surprise. The old man was just as shrewd as ever, though he didn't say anything.

"Let's set it at 30% of gross revenue."

"That would be ideal, as it would greatly reduce the pressure on schools."

When Zhang Mingqiu heard that Xie Wei was calculating based on gross revenue rather than profit, and that the money invested in continuous research and development and other investments would not be deducted before the school received its share, he realized that this was much more than the current fixed amount of several million yuan per year.

The industries under the school-enterprise office have not been in development for long, but their income has been steadily increasing.

Based on current trends, the total revenue this year should exceed 4000 million, which means the school will have an additional 1000 million in funding.

Immediately, he asked Xie Wei with a worried look, "Won't this affect the development of the School-Enterprise Cooperation Office? Didn't you propose to build an office building for the School-Enterprise Cooperation Office?"

The more schools, the better.

One can imagine the development of school-enterprise cooperation...

"The purpose of establishing the school-enterprise cooperation office was to raise funds for school projects. If there weren't so many projects, it wouldn't have come to this."

Xie Wei glanced helplessly at Zhang Mingqiu: "How many times have you, as the principal, disregarded your status to come to me in order to get the school-enterprise office to pay more money to the school?"

If Li Rui had used his approach, Xie Wei would never have given in.

But there's no way to deal with someone like Zhang Mingqiu.

Many military technologies require significant R&D investment but have a slow return on investment.

Many investments do not yield returns.

However, this is normal, as all R&D funding comes from national fiscal appropriations. Even now that the university-enterprise cooperation office has been established, the university's research projects and funding still primarily come from national fiscal appropriations.

It was fine before, and it will be fine to wait another thirty years.

not now.

Everything is being put aside for economic infrastructure development.

"By the way, what do you think about the cooperation with Jiangbei Machinery Factory?"

Xie Wei agreed that the school-enterprise cooperation office should give the school more money. In a good mood, Principal Zhang then remembered the purpose of his meeting with Xie Wei, who kept silent about borrowing money from the school-enterprise cooperation office.

"The joining fee has been increased to 200 million, and the profit sharing has been increased from 37% to 55%. If they can accept this, we will cooperate; if not, we will find another manufacturer."

Xie Wei came up with a plan without even thinking.

He had already thought it through: "They won't act until they see the rabbit, but now that the rabbit is in our hands, do they still want a bigger share?"

"Isn't this too demanding? They're providing all the production costs..."

Zhang Mingqiu's eyes widened.

With such harsh conditions, the other party probably won't agree.

Seeing Xie Wei's expression, he knew there was no turning back. He wasn't speaking up for Jiangbei Factory; naturally, the more profits the school could retain, the better.

The order will be signed soon, but if a suitable production factory cannot be found, delivery will become a problem.

"The school should be prepared to receive Thais and Pakistanis. English translators are easy to find, but Thai translators are hard to find here. We can't just rely on the translators arranged by the Ministry of Commerce; it would be best to find someone who can speak Urdu."

Xie Wei reminded Zhang Mingqiu.

I've been back for several days now. The Thais and Pakistanis should arrive soon.

"Don't worry, Principal Li has arranged everything."

"That old man..."

Upon hearing that Li Rui had made the arrangements, Xie Wei simply smiled and shook his head.

"The Pakistani team will arrive tomorrow. The Thai team's schedule is not yet confirmed. We hope they will come after the contract with the Jiangbei factory is finalized."

Xie Wei glanced at Zhang Mingqiu but didn't ask him when the people from Jiangbei Machinery Factory would arrive.

According to Xie Wei's quote, an $800 explosive fragmentation rocket launcher costs approximately 1200 RMB, with a mass production cost of around 220 RMB. This cost will decrease further as production increases.

According to Xie Wei's previous proposal of 37 points, the school would take 360 ​​yuan and Jiangbei Machinery Factory would take 840 yuan. Even after deducting costs, each rocket launcher would still have a profit of more than 600 yuan, almost twice that of Harbin Institute of Technology.

It wasn't that Xie Wei liked to suffer losses; he was considering long-term cooperation. The Jiangbei factory needed technological upgrades and to purchase various equipment, investments that weren't included in production costs.

Unfortunately, the Jiangbei factory was not satisfied.

Zhang Mingqiu was also aware of this, otherwise he would have kept quiet about it.

After leaving Xie Wei's office, Zhang Mingqiu went directly to the guesthouse.

The leaders of Jiangbei Machinery Factory have already arrived here and first spoke with Zhang Mingqiu.
"Suck~"

When Ning Juntao and the others heard the conditions proposed by Zhang Mingqiu, they couldn't help but gasp.

Before they arrived, they were prepared for Harbin Institute of Technology to use this as an excuse to change the conditions, but they did not expect the conditions to become so harsh.

“Principal Zhang, we need to upgrade our technology and purchase equipment… We have to pay 300 million upfront, and that’s only half the price. Isn’t that going too far?”

Tian Guirong stared at Zhang Mingqiu with a grim expression.

black!
too dark!
"Principal Zhang, putting everything else aside, based on the current profit distribution, even with an order for 10,000 units, our three million yuan joining fee would increase the cost by 300 yuan per unit. According to your quote, our ex-factory price for each explosive rocket launcher is only 300 yuan!!!"

Ning Juntao's words were almost uttered through clenched teeth.

There's absolutely no way we can cooperate.

Putting everything else aside, it's not even enough to cover production costs.

Are there only 300 per body?
Zhang Mingqiu was taken aback; it seemed that there was indeed some missing.

But on the surface, he remained calm: "Yes, it is indeed less, but it's not like there's no profit at all."

"How could there possibly be a profit? This doesn't even take into account the increased equipment costs!"

Tian Guirong suppressed the urge to hit someone.

Just because we didn't sign a contract before?
"Since you're so insincere, let's just not cooperate. The more we produce, the more we lose..."

Tian Guirong left with these words, observing Zhang Mingqiu's reaction as he prepared to get up and leave.

"No problem. Take care, and don't bother seeing me out!"

Zhang Mingqiu's expression remained unchanged. He knew that getting the other party to accept the conditions wouldn't be easy.

Seeing the drastic change in Director Ning's expression, he said softly, "Director Ning, we have always cooperated in good faith, but you have not shown any sincerity. Even if we don't cooperate with you, we can cooperate with other factories. There are at least a dozen factories in China that can produce this kind of rocket launcher."

"No one will accept your harsh conditions."

Tian Guirong shook his head. Now that he had stood up, he didn't know whether to leave or stay.

Factory director Ning Juntao didn't move at all.

"Even if no manufacturer accepts our products, it won't have a big impact. We can build our own factory, although the investment will be larger, but then we will have no chance to cooperate at all in the future."

Zhang Mingqiu had an attitude of "you can do whatever you want."

Seeing Zhang Mingqiu's reaction, Ning Juntao suppressed his anger, took a deep breath, and asked, "Principal Zhang, what are your current production costs?" "The production cost of the explosive rocket launcher is 220 yuan. Theoretically, with mass production, the cost could be reduced to 180 yuan. The armor-piercing type is more expensive, costing around 440 yuan. Mass production could reduce it to below 400 yuan, but the exact figure hasn't been calculated yet… Even including the 300 million yuan technology fee in the cost, you can still make at least 80 yuan profit per unit…"

"You take 900 yuan of the 1200 yuan price and leave us with only 80 yuan?"

Ma Yuanteng, who had been silent until now, suddenly stood up. "You guys are too greedy! On what grounds?"

black!
It's so dark.

They profit from external clients and internal partners.

Upon hearing about such a low cost, Ning Juntao was instantly moved. He never expected that the production cost of Harbin Institute of Technology's rocket launchers would be so low!

Regret instantly rose in their hearts.

According to the conditions proposed by Li Rui, the 200 million yuan would be divided equally among 37 units. For each rocket launcher, Harbin Institute of Technology would only take 560 yuan. Even after deducting production costs, Jiangbei Factory could still get a profit of 420 yuan per unit.

Although it's not as much as what Harbin Institute of Technology students earn, it's not much less.

Especially compared to now, where each body can only receive 80 yuan.

Ma Yuan also voiced his thoughts: Why should I?
"Why?"

Looking at Ma Yuan, Zhang Mingqiu sneered, "Just because our school tightened its belt and even took out loans to fund this project! Just because we found the clients ourselves and persuaded them to make the purchase..."

Thinking of the school's efforts, and how Principal Li disregarded his position as principal and even his personal future to actively seek out foreign clients when no clients knew about it, which led to the current orders.

The other party didn't contribute anything.

Why should they get a large share of the profits when we're just producing?
At this moment, Zhang Mingqiu somewhat understood why Xie Wei had proposed such harsh conditions. The other party would not bear any risk and could get 80 yuan for each rocket launcher. With the production of 10,000 launchers, that would amount to 800,000 yuan!
Not a lot.

And this is just the profit.

"The reason we initially asked for 200 million yuan was because the project and research had reached a critical stage and we were short of funding. The university kept urging you to sign the contract so that you could send technical personnel as soon as possible, so that we could all work together to speed up the project and prepare for production, while also researching production processes that could reduce costs..."

Zhang Mingqiu became increasingly angry as he spoke.

They even felt that the other party taking a profit of 80 yuan was a bit too much.

With these production lines in place, at least they can start operations, and there won't be any problem with paying the wages of all the factory's cadres and employees.

"During the most difficult time for the project, Principal Zhang drank with bank leaders to the point of being hospitalized in order to secure project funding; all other projects in the school's metalworking workshop were suspended in order to research the process... What did you sacrifice? Furthermore, this order was secured by Principal Li at great risk... Just a few days ago, without any approval from higher authorities, Principal Li ordered the project team to take live ammunition to the 617 test range for target practice..."

"..."

Upon hearing this, the men from Jiangbei Machinery Factory were so embarrassed that they dared not look Zhang Mingqiu in the eye.

"Now you actually dare to ask me why! Humph!"

Zhang Mingqiu snorted angrily, got up, and walked outside.

"Principal Zhang..."

Ning Juntao hurriedly stood up and grabbed Zhang Mingqiu, who was about to leave, but Zhang Mingqiu shook him off.

They didn't know the project had so many difficulties until the other party told them.

What can we say now?
The group of people, already feeling heavy-hearted, were stunned.

You can't blame Harbin Institute of Technology for having such strict requirements.

Thailand placed an order for 5000 units directly, and Pakistan's defense needs are even greater, so the number will definitely exceed 5000 units. There are also many more potential customers around the world.

Once the reputation is established, orders for this rocket launcher will surely come pouring in.

"Factory manager, what's wrong with us..."

After a long silence, Tian Guirong took a deep breath and looked at Ning Juntao, "They said that with mass production, the cost can be reduced to 180, which means we can have a profit of 120. If Pakistan's purchase quantity exceeds 5000 units, then for the rest, our profit per rocket launcher will reach 420..."

It's all the factory's fault for being afraid to take risks before.

The factory didn't bear any risks or difficulties; it could make a profit as soon as production started, and the more it produced, the more profit it made.

At least, the other party didn't take all the profits afterward.

"Let me think about it some more!"

Ning Juntao understood what Tian Guirong was saying; otherwise, he wouldn't have been sitting here after Zhang Mingqiu proposed such harsh conditions.

"It might be too late to reconsider. Our factory's technological foundation..."

Tian Guirong reminded Ning Juntao.

There are more than ten factories in China that can produce this type of rocket launcher, but many of them don't even have any production tasks and can't even pay wages.

As long as production can continue, wages can be paid.

Moreover, with such a large number of production orders, they can also request funding from higher authorities to upgrade their technology.

Good steel must be used where it's most needed.

At that time, some organizations might even forgo profits to cooperate with Harbin Institute of Technology.

"Ah~"

Ning Juntao sighed, his face full of melancholy.

Millions of dollars, just because the factory hesitated, I could only watch helplessly as I couldn't get them, I'm so unwilling to accept it!
"Principal Zhang, what's wrong?"

Xie Wei was surprised to see Zhang Mingqiu come to him again so soon. He was astonished to see Zhang Mingqiu so angry. Principal Zhang, who was usually so calm, was actually so angry.
Who made you so angry?

"It's all because of those bastards at the Jiangbei factory! They actually asked me why we get 900 in profits while they only get 80..."

"..."

Xie Wei didn't know how to respond.

When Zhang Mingqiu came to see me before, he didn't mention that the leaders from the Jiangbei factory had come.

"I was initially thinking they were giving them too little, but after considering the situation, I actually think they were giving them too much..."

Zhang Mingqiu began to explain the details of his contact with the other party to Xie Wei.

Xie Wei listened without interrupting.

She silently got up, made Zhang Mingqiu a cup of tea, and gently placed it in front of him.

"You're saying they haven't contributed anything, so why should we give them a profit? Besides, after 10,000 units, they can get more than 400 yuan in profit..."

Zhang Mingqiu was equally unwilling to accept this.

Wouldn't it be better to invest the extra profits in the school's key projects?
"Once they understand, they will accept our terms."

Xie Wei said softly, "Cooperation is actually beneficial to both of us. We are a school, and our main focus is on cultivating talent. If we keep investing in production and construction, it may eventually cause the school's development focus to become skewed..."

"So, that's why you've always been reluctant to let the university-enterprise cooperation office invest too much energy in capacity building?"

Zhang Mingqiu was stunned.

They never understood why Xie Wei, knowing that production could also be very profitable, only asked the school-enterprise office to find production factories to cooperate with, instead of investing in building production capacity.

Now I understand everything.

"It's not just because of that."

Xie Wei shook his head at Zhang Mingqiu, who thought he understood.

"Uh……"

Zhang Mingqiu looked at Xie Wei with a puzzled expression.

(End of this chapter)