In 1978, I was admitted to Harbin Institute of Technology

Chapter 378 Paying money for uncertain profit-sharing rights? Nobody's stupid!

"Gentlemen, you all know the company's performance better than anyone else. The annual dividend per share may not seem as good as bank deposit interest at the moment, but you all need to take a longer-term view..."

The former office building of Hongfeng Machinery Factory.

Xie Wei earnestly persuaded the group of leaders, cadres, and worker representatives of Hongfeng Group.

However, no matter how much he talked, no one paid any attention to him.

He silently cursed Xie Wei's ancestors for eight generations, but his face showed no sign of it.

They just won't express their opinion.

"Consultant Xie, the factory's allocation has already emptied everyone's savings of many years. For an ordinary employee, 200 shares is over 2700 yuan! And for managers, it's over 10,000 yuan..."

Seeing that no one was speaking, Qin Bolin knew he couldn't continue.

Xie Wei and his son Xie Jianguo have many tricks up their sleeves.

Xie Jianguo's practice of assigning tasks within the factory left everyone angry but unable to speak out: the reason being that Xie Jianguo was a retired employee who was rehired, and his position was not subject to any rank restrictions, nor was he afraid of being punished by his superiors.

Xie Wei, on the other hand, uses methods that can easily trap people if they're not careful.

Qin Bolin paused here to observe Xie Wei's reaction, and only continued after seeing that Xie Wei's expression remained normal:
"Because of the distribution of shares, many capable cadres have already transferred out of the unit through their own connections. There's a lot of resentment among the staff, and if things get out of hand, it'll be difficult to manage..."

The other managers in the audience kept nodding.

Xie Wei, standing on the podium, observed everyone's reactions.

It is clear that there is little chance of distributing the remaining shares.

"Furthermore, everyone who has given this money is only receiving the right to dividends; the shares don't belong to them personally, but to the company... This..."

Qin Bolin's meaning was very clear: Xie Wei's proposed plan was too outrageous.

Don't assume that just because you've paid money, the shares belong to you personally.

That's not the case at all!
Paying this money only entitles you to future dividends on that portion of the shares. Once you leave the company or retire, you lose all dividends!
Of course, when you resign from your job or retire, these shares will be repurchased based on their value at that time.

As a result, even fewer people are willing to do so.

"Does everyone think so?"

Xie Wei asked the crowd.

"Yes, we've finally managed to save some money over the years, but after the factory distributed these funds, everyone's pockets are empty... If it weren't for the company covering our medicine and medical expenses, we would have run into trouble long ago."

"The reassignment has already caused widespread resentment, even among retirees..."

"Advisor Xie, as a leading cadre, you can't just sit in the office offering advice; you need to go to the grassroots level more often and listen to the voices of the people..."

"..."

Everyone expressed their opinions, which all boiled down to one point: opposition!

Well, even Xie Wei's words about being detached from the masses have been said by everyone.

"Alright, in that case, the remaining 757 million shares will not be distributed. I just hope everyone thinks it through and doesn't regret it later."

Xie Wei sighed.

These people have no idea how many opportunities they've missed.

Xie Wei originally planned to complete the shareholding reform of the entire Hongfeng Group in the next two years, and then split up and list its various subsidiaries after the stock exchange was established in 90.

By the time……

Unfortunately, too many people miss out on opportunities even when they are presented with them.

"Don't worry, no one will regret it!"

"Yes, everyone would be even happier if the company took back all the shares that were forcibly distributed."

"If the company weren't doing so well, everyone would probably be making a scene..."

Everyone said that there was no way they would regret it!
They only regretted that when the factory assigned tasks, everyone didn't boycott Xie Jianguo together.

"Let me tell you, I can't get another loan. Even if you pull some strings, I won't sign!"

After the meeting, Xie Jianguo gave Xie Wei a serious reminder.

There are still 757 million shares that have not been distributed. Xie Wei also saw the attitude of the factory's leaders and employee representatives.

"I didn't intend for you to take the blame."

Xie Wei said.

"You can't take out any more loans. I've already taken on enough..."

Xie Wei looked at Xie Jianguo, somewhat speechless: If he really couldn't repay the loan, wouldn't the bank come after him?

"Don't worry, I won't take out a personal loan. I'll go back to school and discuss it with them, and also ask the other shareholders if they'd like to increase their dividend shares..."

"Don't ask, there won't be any. If you had the money, they would be eager to transfer all their shares to you."

Li Rui, who hadn't said a word until now, spoke irritably.

Xie Wei nodded.

Express understanding.

Why are you against publicly offering stocks?

Xie Jianguo didn't understand this at all.

"Come on! You're not issuing shares to the public, are you? You're planning to distribute them to entities that do business with Hongfeng Group! Doing it this way will really cause problems. Besides, this is just about dividend rights, not handing over company shares."

Xie Wei looked at the old man with annoyance.

Private ownership of shares and shareholders' right to receive dividends are two different things.

Now all industries are bundled together, but intangible assets are not included; otherwise, individual units would be even less able to come up with the funds.

If the company were to adopt a private ownership system, and based on valuation methods from decades later, Hongfeng Group would have a market capitalization of at least 100 billion yuan.

The combined annual sales of all units exceed 6 million, while their assets are only over 4 million.

"What are your plans to do? Let the school-enterprise cooperation office take over?"

Xie Jianguo asked Xie Wei.

"We'll talk about it later."

Xie Wei actually didn't want the school-enterprise cooperation office to take over too much.

The total assets of the school-enterprise office now exceed 20 billion yuan, but the cash on hand is constantly decreasing. If this continues, it will all turn into fixed assets, which will cause trouble when money is needed.

"You'd better not go back. Your mom will get really upset if she sees you. Next time you come back, you'd better bring your boyfriend with you, otherwise I won't be able to help you."

Even though it was very late, Xie Jianguo noticed that Xie Wei wanted to go home and reminded him.

"..."

"Let's go, since you never intended to go home in the first place anyway."

Li Rui also advised Xie Wei, "Bring your girlfriend back next time. Your mom will probably put up with it for your girlfriend's sake."

"At least, can you ask the cafeteria to get me something to eat?"

Xie Wei was still hungry.

"Forget it, I don't even dare eat in the cafeteria anymore, I'm afraid they'll poison me! The people in the cafeteria have been reassigned..."

Xie Jianguo tried to persuade his son.

It's unlikely that the cafeteria staff would poison Xie Wei. But if they got angry and beat Xie Wei up, and ended up beating up everyone in the process, that wouldn't be worth it.

"Let's go back to school!"

Xie Wei was furious. He hadn't wanted to come back in the first place, but that old bastard Li Rui had made him.

The problem remains unresolved.

They didn't even get a bite of hot food.

Fortunately, Chu Yunlong had prepared instant noodles for Xie Wei.

There was no hot water on the Y-11. Xie Wei ate instant noodles while drinking soda produced by his own ice cream factory, all the while thinking about how to get his colleagues to accept more shares so that they could also benefit from the company's growth.

Currently, that possibility is no longer valid.

"Since no one wants it, we can't force them to accept it."

Xie Wei sighed.

"Director Xie, since Hongfeng's subordinate units will be split up in the future, why integrate them now? Why not just use one unit as a pilot project? Once it makes money and everyone sees the benefits, they will naturally be very supportive." Chu Yunlong had been paying close attention to this shareholding reform from the very beginning.

He couldn't understand why Xie Wei was going to go all out right from the start.

“Everyone is given the right to share profits, not ownership. Everyone knows how profitable the subsidiaries of Hongfeng Group are, and under such circumstances, no one is willing to invest… On the one hand, it is to allow all cadres and employees to enjoy the dividends brought by the company’s development, and on the other hand, it is to raise funds for subsequent development.”

Xie Wei's explanation was very simple.

Chu Yunlong still didn't understand.

Even though I kept learning and trying to understand Xie Wei, I still couldn't keep up.

"Does that mean if people are unwilling to contribute this money, they lose the opportunity to receive dividends?"

Chu Yunlong asked.

"You know Wang Zheng's situation; no one can guarantee 100% profit... Besides, if he retires or resigns, his principal will be refunded based on the market value."

To avoid becoming the most eye-catching investment company in the international capital market, Wang Zheng's Starry Sky Investment, with Xie Wei's tacit reminder, allocated a large portion of its funds to its traders in addition to investing in the Japanese and American markets.

This results in both losses and gains.

The profits on the surface are not so dazzling.

"This is different."

Chu Yunlong frowned. Wang Zheng's investment company was different from a physical production unit like Hongfeng Group.

As long as the company operates smoothly, stable profits and dividends can be guaranteed.

"If you're unwilling to invest in a stable income, don't expect to get more benefits from your company. You'll naturally receive all the perks and benefits you deserve."

Xie Wei said calmly.

Although he hadn't expected such an outcome, he wasn't upset.

After returning to school, Xie Wei found Ge Jianjun.

"There are still 757 million shares left? How about we buy them all?"

Upon hearing that so many shares were still unsold, Ge Jianjun was filled with excitement.

He always complained that Xie Wei left the school with too few shares.

Only 23.7%!

Although most of the investment came from Harbin Institute of Technology's technology, with only about 10% obtained through the university's enterprise-university cooperation office, Ge Jianjun was still not satisfied.

"757 million shares is less than 100 million. The main areas for future development are program-controlled telephone exchanges, numerical control systems, etc... and mobile phones. All of these industries have enormous potential..."

Ge Jianjun understood better than anyone why Xie Wei wanted to integrate Hongfeng Group.

Once program-controlled exchanges, mobile phones, and other similar products are launched on the market, they will immediately be put into competition with international telecommunications giants.

In recent years, even though the school has produced 2000 program-controlled exchange machines, its market share in the domestic market remains very low.

Now, the school's 5000-line program-controlled exchange was successfully developed last year, but Xie Wei kept it from being launched to the market. It wasn't until this year, when a breakthrough was achieved with the 10,000-line program-controlled exchange, that Xie Wei began to integrate the Hongfeng Group.

The funds raised will exceed 20 billion!
Ge Jianjun was unwilling to miss such a good opportunity.

"Let's ask the other shareholders first. If none of them are interested, then we'll take it."

Xie Wei nodded, "But let's not make it too obvious."

"understand!"

Xie Wei stopped objecting, and Ge Jianjun was overjoyed.

"By the way, do we need to make any adjustments to our industry going forward?"

Ge Jianjun asked Xie Wei.

He knew what Xie Wei was doing in Chengdu.

"Being not."

"Didn't they have a successful maiden flight over there?"

Ge Jianjun asked, puzzled, "Won't the need for funds be even greater in the later stages?"

"We can't put all the pressure on our school-enterprise cooperation office. Leader Long and Principal Li both agree that they still owe more than 70 million yuan to Project No. 10..."

Xie Wei somewhat reluctantly reminded Ge Jianjun, "Director Ge, the university-enterprise cooperation office invests in civilian technology research and development, not military industry."

Ge Jianjun has also started to change in recent years.

They keep trying to invest funds in military technology.

intolerable!
"I was just asking. The school's investments in this area are all paid for by the school-enterprise cooperation office..."

Separating military and civilian products significantly reduced the power of the director of the school-enterprise cooperation office, which displeased Ge Jianjun. Naturally, he hoped to include military projects in the school-enterprise cooperation office as well.

Xie Wei glanced at him but didn't say anything.

"Okay, I'll go get busy now."

Seeing that Xie Wei remained silent, Ge Jianjun realized there was no room for negotiation and could only take his leave.

Watching Ge Jianjun's departing figure, Xie Wei picked up the phone on the table. Once the call connected, he said, "Have Principal Zhang and Principal Tan come to your place. I'll be right there."

The successful maiden flight of Project 10 has brought challenges, as neither the military nor the Third Ministry of Machinery Industry have the funds, while the United States is aggressively promoting the F-16/79 fighter jet, which will further increase the project's funding needs.

Xie Wei needs to make sure he speaks with the people at the school first, so that they don't cause any trouble like Li Rui and his group did a few years ago when they were trying to get funding for the Y-10 project.

"...That's the situation. No matter what, the channels must be tightened. We can no longer be the main source of funding."

Facing school leaders Zhang Mingqiu and Liu Debao, Xie Wei solemnly warned them, "Although Principal Li didn't mention it, I don't want to see something like what happened at Factory 122 happen again. No matter the reason, if it happens again, it will have an irreversible and detrimental impact on all our industries!"

The automobile manufacturing produced by Factory 122 was directly exported to Poly Group.

In recent years, the number of Hafei Hongguang minivans exported annually has exceeded 10,000, and this minivan can now be seen in regions such as Africa, South America, and the Middle East.

In recent years, Hafei Motors has launched motorcycles and cars on the market. The motorcycle export business has just started, and the export volume this year may exceed 4000 taels, while the car export business is not doing well.

Poly also took over the other vehicle export business.

Wenxuan Auto Service Company loses hundreds of millions of yuan in profits every year from its automotive business.

Under such circumstances, Xie Wei naturally could no longer allow the school to continuously invest too much money in Project No. 10, which would affect the school's overall cash flow.

"Currently, the school has less than 500 million yuan available, so it cannot invest any more in Project No. 10."

Zheng Guoxiu, the head of the finance department, adjusted his glasses and gave a serious reminder to the group.

She was the finance manager transferred from the Seventh Ministry of Machinery Industry to the school.

Fortunately, since her arrival, the school leaders and Xie Wei have been very well-behaved and haven't been involved in any huge investment projects.

Even the budget system is being implemented very well.

"Regarding the large press, based on last year's budget, another 800 million will be allocated, and another 4000 million will be allocated to the Y-9 project to accelerate the prototype manufacturing. All additional expenses will not be paid."

Xie Wei thought for a moment and then spoke.

"According to the budget, the large press should still cost 1600 million, and the Y-9 should cost 6000 million..."

Zheng Guoxiu reminded Xie Wei.

There is still that amount of money in the account.

The others looked at Xie Wei with suspicion, "This money?"

"The extra 2800 million yuan will be used for the school to acquire shares of Hongfeng Group. Currently, Hongfeng Group still has 757 million shares, and we can't let the school's enterprise management office take them all."

Xie Wei's words left everyone even more puzzled.

The School-Enterprise Cooperation Office is a subordinate unit of the school!
Is there a difference between school-enterprise joint venture shareholding and school shareholding?

Xie Wei's actions are completely pointless and futile.

"What if the funds that should be paid are reduced and there isn't enough?"

No one expected Xie Wei to make such a decision.

"That's not our business! It's true that the school has been selected for the National 863 Program in areas such as program-controlled switches, numerical control systems, and PLC programmable controllers, but everyone knows how little funding the state has allocated."

After Xie Wei said this, everyone fell silent.

The school's annual research expenditure is about to exceed 5 million yuan, of which about 3.5 million yuan is consumed by aviation-related projects and supporting projects.

"Now, whenever there is a shortage of money, the first thing we think of is investing. We can't let this mistake continue."

(End of this chapter)