In 1978, I was admitted to Harbin Institute of Technology

Chapter 289 Capital Injection and Equity Dilution? You're overthinking it; there are too many university-run enterprises that we wouldn't even consider.
"Mom's coming? What's she coming for?"

Xie Rou thought her brother was looking for her to persuade her.

To my surprise, I was told that my mother, who had never traveled far from home, was coming to the school.

"She rarely even goes to downtown Chengdu. How can you feel at ease traveling thousands of kilometers alone?"

Seeing her brother's calmness, Xie Rou became even more furious.

She had already figured out Xie Wei's sinister intentions: If her mother came, how could she go? In the first place, they didn't even plan for her to come to the Northeast; it was her brother Xie Wei who persuaded their parents to bring her here personally.

It doesn't matter if my parents disagree.

But now my brother disagrees and has even asked my mother to keep an eye on me.

"What's there to worry about? Mom knows quite a few words now, and Dad is at ease with her, so why should I be worried?"

Xie Wei grinned, then warned Xie Rou, "If you have any ideas, you can tell Feng Ke, but don't even dream about it. Otherwise, it will affect the relationship between the siblings..."

"I have absolutely no feelings for you!"

Xie Rou disregarded any notion of being a lady and, in her anger, began to hurl profanities.

Xie Wei was already outside the door.

"Sooner or later, I will make my own decisions and nobody will be able to tell me what to do!"

Xie Rou said bitterly.

She knew her age was a major disadvantage, and in this day and age, without a letter of introduction or various tickets, it was difficult to get around.

Xie Rou had previously approached the relevant departments at the school, but with Xie Wei's influence, they refused to issue her a letter of introduction, even when she made the excuse of going home. Now, her mother has been called in by her brother to keep an eye on her.

"Won't she cause a scene?"

Zhang Mingqiu looked at Xie Wei with a nervous expression.

Xie Rou asked Fang Pengju for a letter of introduction, but Fang Pengju refused. He then went to the logistics system and then came to her, the principal, saying that he wanted to go home to see his parents.

"It's all settled. My mom will arrive tomorrow, and she'll keep an eye on her."

"This……"

Zhang Mingqiu was stunned.

Some people don't understand Xie Wei's way of handling problems.

“Xie Rou hasn’t been back since she started school. She’s never been away from my mom before… My mom doesn’t have a job and has nothing to do at home, so we can’t go back. Luckily, it’s not too cold right now, so we asked my mom to come here to visit…”

Xie Wei explained.

When he came into this world, he felt the warmth of family from Liu Mei and her husband, which his parents in the original world had never given him. After entering Harbin Institute of Technology, he was destined to be unable to stay by his parents' side. Now that he has the opportunity to let his mother go out for a walk, it is not bad.

"Then I'll go with you to pick her up tomorrow?"

"Better say goodbye."

Xie Wei refused.

Unlike his father, Xie Jianguo would prefer the person who picked him up to be of the highest possible status.

Principal Zhang personally picking up Liu Mei would make Liu Mei feel uncomfortable.

"How about I go to the Northern Building with Secretary Zhang..."

"Don't!"

Xie Wei was frightened by Zhang Mingqiu's suggestion. If it were really like that, his mother Liu Mei would not only not be satisfied, but would feel terrified.

Xie Rou and I are still just students.

The Northern Mansion is a hotel catering to foreign guests, and it doesn't accept guests who aren't at a certain level.

Given Xie Wei's current level, the Northern Building wouldn't even accept him.

"But……"

"Principal Zhang, you represent the school. If students' parents come to the school, the school leaders will personally greet them to show that the school values ​​the students' parents. But what if there are too many parents coming?"

Xie Wei's reasoning is impeccable.

Zhang Mingqiu immediately understood Xie Wei's meaning.

"Okay, if you need anything, just let me know."

Xie Wei nodded without saying much. He didn't want to give Xie Rou any special treatment at school, even though they were already receiving special treatment.

If someone harbors resentment and uses this as an excuse to cause trouble, even if it doesn't affect Xie Wei or the school leaders, they will eventually be disgusted.

Xie Wei didn't want to waste his time on this.

"This boy~"

Watching Xie Wei's departing figure, Zhang Mingqiu sighed, "He always has a maturity far beyond his peers. Could it be because when he graduated from junior high school and became an educated youth, his father injured himself to get him to return to the city?"

The school leaders have always noticed Xie Wei's maturity.

In fact, he often considered issues more comprehensively than Li Rui, a cadre who had come from the battlefield.

"Your mother-in-law is arriving tomorrow? I'll go with you to pick her up!"

Du Guowang was overjoyed to hear Xie Wei say that Liu Mei would arrive in Harbin the next day. "When I came to pick you up, I still often think of the fried egg noodles your mother made. I can never recreate that taste. Although the noodles in Chengdu are not as chewy as those in the north."

"..."

When did Du Guowang become a foodie?

"Teacher Liang hasn't come back..."

Although Du Guowang and Liang Hongling recognized Xie Rou as their goddaughter, Liang Hongling has gone to work on a project and hasn't returned yet.

It's not that Xie Wei doesn't want his mother to stay in a guesthouse. He hasn't collected his salary since he started school, and it adds up to more than a thousand yuan. It wouldn't be a problem for his mother to stay in a guesthouse for a year.

The problem is that I need to be able to stay here until Yitzhak leaves.

Given my mother's frugality, she definitely wouldn't agree.

Xie Rou has never had a dormitory since she started school. With the expansion of enrollment, the school dormitories have become more crowded. In order to free up dormitories, the school even does not allow students whose homes are in Harbin to live on campus.

Xie Rou initially lived at Du Guowang's house, but after entering Fang Pengju's rocket artillery laboratory, she rarely went back and usually rested on a bed set up in the laboratory's office.

My mother is coming, and it's most convenient for her to stay at Du Guowang's house.

But the house belongs to Director Du.

“The school has a heavy research workload, and I also have to teach classes and supervise graduate students. I haven’t been home much. After Wang Zheng left, no one cleaned the house. My mother-in-law came, so she can help clean up…”

Du Guowang knew what Xie Wei was thinking just by looking at his expression.

"Your teacher's wife won't have any objections. If she's home, she'll have someone to talk to! I'm going to the morning market tomorrow to buy some local specialties. You can call Xiao Mo along then..."

Du Guowang didn't care whether Xie Wei agreed or not, and immediately made the arrangements.

Xie Wei knew his personality and didn't say anything more.

After Wang Zheng went to Hong Kong, he had to do all sorts of miscellaneous things himself, and Xie Wei suddenly missed Wang Zheng terribly.

As for inviting Mo Lingyu, Du Guowang did it partly so that someone could keep Liu Mei company, and partly so that someone could cook for her.

Mo Lingyu is a good cook.

"Wang Yuting should be going too..."

Xie Wei thought that Mo Lingyu's attitude towards him had changed drastically after she went back to her hometown.

Fang Pengju recruited Wang Yuting specifically to take care of Xie Rou. Although Wang Yuting also needed to complete her postgraduate studies, the difficulty was far less than that of the three postgraduate students Fang had previously recruited. "Let's invite Xiao Mo too; she's a good cook. Your mother has been on the train for several days..."

Du Guowang glanced at Xie Wei, wanting to remind him, but swallowed his words.

Xie Wei is a very opinionated young man, and it's impossible for him not to understand Mo Lingyu's thoughts. Although the two are working together now, their relationship is becoming increasingly distant, which even Du Guowang can see.

Perhaps Xie Wei had other ideas.

People who do scientific research focus their minds and energy on research; they don't really care about relationships...

"Going to Director Du's house?"

Upon hearing this, Mo Lingyu was no longer excited as before, but rather somewhat troubled. Looking at Xie Wei's calm expression, she initially wanted to refuse outright, but ultimately nodded, "Okay."

Xie Wei also noticed the change in Mo Lingyu's attitude.

He didn't think too much about it.

Even though they spent a considerable amount of time in the same office, they were always busy with their own things when they were together, and rarely even chatted.

There are still about two years left until the four years of undergraduate studies.

The experimental class does not follow the usual undergraduate timeline. If they were in the same class, they would not only complete the undergraduate courses but also study other majors. However, they need to reach the graduate level to graduate.

The school doesn't specify how many years of study are required.

"Okay, I'll be picking someone up at the station tomorrow morning. You can go there by yourself."

Hearing this, Mo Lingyu became angry.

She didn't complain about Xie Wei and nodded.

Xie Wei then turned and left, while Mo Lingyu continued with her original work.

"Gentlemen, this has dragged on for quite some time. Although you are adjusting production lines and making progress on various projects, without finalizing the cooperation and investing significant funds in mass production, quickly capturing the market is simply a pipe dream! Look at those international automotive giants, they produce millions of vehicles a year, while FAW, the domestic automotive manufacturing giant with the highest capacity, only achieved its annual production target of 58000 vehicles two years ago..."

Looking at Huo Guoqiang, Liu Jianyun, and the others, Xie Wei expressed his dissatisfaction without any politeness.

The cooperation plan with Factory 122 has not been finalized yet.

They want funding, but they are unwilling to pay higher interest rates or offer more shares.

How can that be?

"Xie Wei, it's not that we're not in a hurry, but your conditions..."

“If that’s the case, then there’s no need for us to talk about cooperation! The school has invested a lot of money and effort in the research and development of the Hongguang minivan, and it certainly can’t just be left idle… Of course, Factory 122 has also invested manpower and resources, so let’s say you get 40% of the technology, and we’ll seek cooperation with other car manufacturers.”

"do not!"

Liu Jianyun immediately became anxious.

Without cooperation, Factory 122 will have no chance of turning things around given its current situation.

Even without the Harbin Institute of Technology's automotive team, producing and selling Hongguang minivans would be impossible without financial support and sales personnel from the university-enterprise cooperation office, relying solely on the existing resources of the 122nd Research Institute.

"Xie Wei, could you increase the loan amount and reduce the proportion of capital required for investment?"

Huo Guoqiang also became anxious.

They have consistently disagreed; it's not that they want to drag things out.

They were hoping Xie Wei could help sell a batch of H-5 bombers to the Iraqis, so that they would have funds to invest in automobile production capacity and prevent Harbin Institute of Technology from acquiring a 48% stake.

Factory 122 would accept a 48% stake.

Their concern is that the school-enterprise cooperation office will continue to receive investment!
Factory 122 was hoping that the automotive industry would change its predicament, but it couldn't afford to invest. If the university-enterprise office continued to invest under the pretext of expanding production capacity, their shares would only be diluted step by step.

"No. The 500 million loan was provided by the school; the investment proportion is based on this loan... Even if the school earns the interest on this 500 million, it's being repaid using profits from the car sales!"

Xie Wei said firmly.

"And this 1000 million is only an investment for an annual production of 3 vehicles. In principle, the initial design should have been for an annual production capacity of at least 5 vehicles."

Xie Wei's words caused Huo Guoqiang's lips to twitch repeatedly.

Harbin Institute of Technology has plenty of money; investing tens of millions to build up production capacity is not a problem for them.

The problem is that Factory 122, which they are cooperating with, can't come up with the money!
If too much is invested, who will make the decisions?

"Director Huo, Secretary Liu, if you're not sincere about cooperating, let's not waste our time. The conditions seem harsh, and Xie Wei has said that we'll bear all the risks... I don't understand what you're worried about!"

Zhang Mingqiu was unhappy.

Look at the military projects that Liu Debao was in charge of, negotiating with the Iraqis, the $5 million deal didn't last very long.

Not only was a cooperation agreement reached quickly, but the funds were also in place.

"If you continue to invest, we won't have the money..."

Liu Jianyun said with a worried look on his face.

"After the cooperation, production capacity will be adjusted according to market conditions. Within three years, only interest will be paid on the loans for the automotive business each year, and the principal will be repaid after three years. In addition, the university can provide more loans depending on the situation... The university-enterprise cooperation office will no longer inject capital into the automotive industry!"

Xie Wei finally understood why Factory 122 had been dragging its feet.

I never intended to continue investing in the automotive industry and dilute the other party's equity.

With the rapid development of the domestic economy, the demand for transportation has surged. However, domestic automobile manufacturing is not the standardized assembly line manufacturing seen internationally.

FAW as a whole produced only 58000 vehicles annually in 78, including jeeps, off-road vehicles, sedans, and trucks, which was about 2000 fewer than the 60205 vehicles produced in 75.

It simply cannot compare with the international automotive giants.

FAW's fate was sealed: joint venture!
Xie Wei wanted to cultivate car manufacturers capable of competing with joint ventures from the very beginning, and to create a number of domestic car brands, so that foreign companies wouldn't be able to make all the money.

If Factory 122 won't cooperate, then Second Automobile Works can.

They could even build the production line from the outset with a capacity of 10 vehicles.

Standard assembly lines plus outsourcing of auto parts are no problem at all.

Harbin is a heavy industrial base with many machinery manufacturing plants.

"The university-enterprise cooperation office will not dilute your equity through continuous capital injection. The university-enterprise cooperation office has many industries and does not attach that much importance to the automotive industry."

Zhang Mingqiu understood the other party's thoughts.

Xie Wei originally proposed diluting his partners' equity through continuous capital injections.

The school-enterprise cooperation program already involves too many industries; if it expands further, it will be impossible to manage it all.

"If you don't believe it, you can specify it in the contract."

Xie Wei really didn't want to waste any more time with them. Ignoring the fact that they were of much higher rank and status than him, he reprimanded them without any politeness: "If you hadn't dragged this out for so long, the first batch of cars would have already been on the market! I can't guarantee anything else, but at least I can guarantee that Factory 122 will have a prosperous New Year... Now that you're doing this, the first batch of vans won't even be able to be launched before the New Year."

They deserve to live a poor life!

"Then we have no objections. We can finalize the contract today!"

When Xie Wei suggested that the school-enterprise office could be included in the contract without injecting capital to dilute the equity, Huo Guoqiang did not refuse to do so just to save face.

He didn't want to be scolded by the new director of Factory 122 after he left office.

"In addition, in order to speed up capacity building, I think we can use the machinery and equipment of other machinery factories to help us process various parts... Let them process according to the drawings and processes we provide, and we will pay the processing fee. In this way, the car factory only needs to build assembly capacity and core process capacity..."

Standardized production lines are essential for the development of the automotive industry.

A car factory only needs to build four major processes: stamping, painting, welding, and final assembly.

(End of this chapter)