Financial Director Lao Ding has always been cautious due to professional habits. Although the questions he raised were a bit sharp, Guan Yuntian liked such harsh advice.

"Mr. Ding's question has two meanings. First, can Changda Group do a good job in the projects that Tianyuan Company has not done well? Second, are the risks controllable? This question is very representative. I estimate that most of the board of directors

Members also have such questions." Guan Yuntian said.

"Other projects of Changda Group have undergone market research and full demonstration. Only this pharmaceutical project comes from a company that has just gone bankrupt, and Tianyuan Company went bankrupt precisely because of the drag on the pharmaceutical project. Therefore, Mr. Ding's

The concerns are understandable." Having said that, Ye Jiayi has no doubts about Guan Yuntian's judgment.

Although there are more than a dozen executives in the management of Changda Group, only Ye Jiayi is truly in tune with Guan Yuntian's thinking and concepts. This is also because she is a former academic master with an MBA background from Duke University and a Fortune 500 department.

Ye Jiayi, who has senior management experience, is the main reason why she can work with peace of mind at Changda Group in the county.

In fact, even if Lao Ding did not raise such a question, Guan Yuntian would explain the reasons for making such a decision. Ye Jiayi's words gave Guan Yuntian a sense of urgency, "Your worries are very reasonable, but when I explain them

Before explaining the reason, I asked Mr. Chen from Fengyuan Chemical to introduce the situation of this drug. What needs to be explained is that Fengyuan Chemical is a professional API production unit and they are very familiar with the Western medicine industry."

Lao Chen first talked about the market and efficacy of this drug, “In fact, this drug has been on the domestic market for less than ten years. In the first few years, because it was still under the patent protection period of foreign companies, all the drugs seen in the domestic market were

It is an imported drug. A few years ago, after the patent protection expired, we took the lead in synthesizing the domestic original drug with two other large domestic pharmaceutical companies. Later, the drug was domestically produced, and the price also dropped a lot. At that time,

Tianyuan Company decided to produce this drug after consulting experts."

Ye Jiayi knows a little about the patent knowledge of Western medicine. "If the patent protection does not expire for a long time, it means that this drug is relatively new in the country. Mr. Chen, how long do you think this drug can be sold normally?"

"It seems that you are no strangers to the pharmaceutical industry. Mr. Guan also mentioned this issue this afternoon. According to conservative estimates by industry experts, this kind of medicine can still be sold normally for at least five or six years." Lao Chen said.

"I don't understand what normal sales means?" Lao Ding interjected.

"Any kind of Western medicine may be replaced by new medicines. The so-called normal sales refer to the sales situation before the emergence of its substitute products. Before being replaced, its sales volume is relatively stable. Once a new medicine with proven efficacy appears, the old medicine

The sales of medicines will decrease year by year." Ye Jiayi explained.

"In other words, after the emergence of alternative products, the sales of old drugs will inevitably decrease. For a project with an investment of hundreds of millions, should it be discontinued after five or six years of production? This is too wasteful!" Lao Ding is the financial director. He may be thinking about this.

Calculate cost allocation.

"Actually, this is a question that all investors will consider, but it is not that terrible. On the one hand, even if new drug substitutes appear, old drugs cannot be withdrawn from the market all at once. At least a certain amount of new and old products must coexist in the market.

In years, sometimes the efficacy or side effects of new drugs

If there are recurrences, it is impossible for old drugs to withdraw from the market. I don’t know if you have noticed that some drugs that have been around for forty or fifty years are still playing a role in treating diseases and saving lives. In addition, if this kind of drugs really suffers from the epidemic seven or eight years later,

When it is phased out, it can be switched to other drugs."

Lao Chen's explanation dispelled Lao Ding and Ye Jiayi's concerns about this drug. Guan Yuntian said: "It seems that there is nothing wrong with the product itself.

Why did Tianyuan Company go bankrupt because of this product? As I mentioned earlier, it was entirely because of problems with their internal management. The drugs in the first phase of Tianyuan Company’s pharmaceutical factory were unsalable. Their manager Zhang stubbornly believed that the drugs were unsalable.

The reason is that the production scale is not large enough and the cost of drugs is high, so we blindly expand the production scale at all costs, resulting in a broken capital chain."

Guan Yuntian paused and continued: "Actually, even if the cost of drugs is high, the main reason is not the production scale, because the scale of the first phase of Tianyuan Company's pharmaceutical factory is already quite large! To reduce costs, they should start from production

Looking for reasons in management. In addition, a fact that Lao Zhang did not see or was unwilling to admit was that Tianyuan Company invested too little in the advertising of drugs, which was the main reason for the slow sales of drugs. Regarding this point, Changda

The group understands this."

"Changda Group understands, you mean...?" Ye Jiayi didn't know what she meant.

"Do you still remember the backdoor listing? Did we reorganize an ST company called Xinrui Pharmaceutical? Isn't it because they had no funds to invest in advertising that their drugs were unsaleable, the company's performance declined year after year, and finally it was regulated by the regulatory agency

Put on your ST hat."

"Oh, you mean Mr. Li of Xinrui Pharmaceutical, right?"

"Yes, it's Lao Li's Xinrui Pharmaceutical. After being reorganized, the new company invested heavily in advertising. The scale is now several times that of the original. The Chinese herbal medicine we grow in the agricultural project in the northern mountainous area is for Xinrui.

Equipped with pharmaceutical industry.”

"Yes, medicines are special commodities. On the premise of ensuring the efficacy, advertising plays a vital role. No matter how good the medicine is, no one knows about it. If doctors don't prescribe it, there will be no market. This truth is actually very simple."

Ye Jiayi said.

"So, back to Mr. Ding's concern, if Tianyuan Company fails to do a good job, Changda Group will definitely be able to do a good job! Because of Mr. Ye's control, Changda Group's production management will definitely be better than that of Tianyuan Company.

The production cost of drugs should be well controlled; Tianyuan Company does not pay attention to the advertising of drugs, while Changda Group is just the opposite and has realized the importance of advertising long ago." Guan Yundao.

"Well, Changda Group has indeed done better than ordinary companies in these aspects," Lao Ding said.

"There is also the issue of risks. I have analyzed it. The biggest risk of this project lies in the market vitality of this drug, which is the normal sales period mentioned earlier. Mr. Chen has already done the analysis. Under normal circumstances, even if it has passed

Within the normal sales period, it and new drugs can coexist in the market for several years."

"If a special situation occurs, such as a new drug that replaces it with excellent efficacy and fewer side effects, there is no doubt that the impact on this old drug will be great, and the old drug may be forced to withdraw from the market immediately. In order to deal with this

When this situation arises, in the afternoon, when talking with Mr. Chen and others, I asked them to help recommend several potential new drugs. We can pay more attention in the future, conduct real-time research, select one or two products as reserves, and be ready to switch production at any time.

, the risk can be completely resolved." Guan Yuntiandao.

"If that's the case, then make sure everything is foolproof." Ye Jiayi said.

After explaining the situation to his two colleagues, Guan Yuntian turned to say: "Mr. Chen, Changda Group and Fengyuan Chemical have become new partners. Should we both take this opportunity to finalize a supply agreement?

"

"This is easy to handle. Just follow our original contract with Tianyuan Company."

"Although I don't know the specific content of your supply contract with Tianyuan Company, I don't think it's appropriate to copy previous contracts signed with other companies."

"Both are supply and marketing contracts, and the two companies

Is there any difference between karma and karma?" Lao Chen said.

"It should be different, such as supply prices, payment settlement methods, etc."

"The supply prices for all customers are the same. As for the settlement method, we and Tianyuan Company settle every month."

"It's a good idea to settle the payment every month. Have you got the money?"

These words touched Lao Chen's sore spot, "Hey! If we get the payment, we may not know each other. The monthly settlement of payment stipulated in the contract, because Tianyuan Company has been short of funds, our salesman actually came here

Reconciliation."

"Well, no matter how good the stipulations in the contract are, if they can't be cashed out, the best they can do is to satisfy their hunger, and what they get is a blank check. When dealing with the Changda Group, the situation is completely different!" Guan Yuntian said.

"For the supplier, all users are the same." Lao Chen said.

"That's not necessarily true. Although Tianyuan Company has signed a purchase and sales contract with you, the payment for the goods cannot be honored. Once we become a partner, Changda Group will fully implement the contract and will never default on the payment. Can the two users be the same?"

"Mr. Guan, are you saying that Changda Group will never default on payment for goods in the future?"

"Of course! However, it is within the scope of the contract."

"That's good. The arrears of payment have caused suffering to our suppliers!" Because Tianyuan Company owed Fengyuan Chemical more than 100 million in payment, when it went bankrupt, Lao Chen lost 100 million in vain. Looking back, Lao Chen

Chen was heartbroken.

"Well, Tianyuan Company used to settle payments once a month, but Changda Group changed it to settle payments once for 20 tons. What do you think?" Guan Yuntian said.

Lao Chen thought for a while, "Twenty tons are settled once, which is equivalent to settlement once a month during the peak period. During the off-season, settlement cannot be made once a month. Isn't this interval a bit long?"

"It won't take long at all. It's easy to settle accounts based on quantity. It's very convenient for both parties. When the time comes, we will fully implement the contract and will never default on a penny of payment." Guan Yuntian promised.

Lao Chen made some calculations and felt that settlement on time and settlement by volume have their own advantages and disadvantages, and have no substantial impact on suppliers. "Then settle by volume, and settle every 20 tons."

"What about the supply price?"

"What's wrong with the supply price? All users are treated equally. Is there anything else to say?"

"You treat all customers equally, but each customer treats you differently. Mr. Chen, think about it, a customer who doesn't owe you a penny of payment is the same as one who owes you more than 100 million, and ultimately cost Fengyuan Chemical a loss of 100 million yuan."

Wouldn't it be unfair if you treated customers with billions of dollars equally?" Guan Yuntian said.

"Oh, is there such a truth?" Lao Chen didn't expect that Mr. Guan was too good at business talks. He not only wanted to bargain, but also wanted to make you unable to say anything.

"But what I said is all true! Mr. Chen, if I lower the payment and settle it for you at the end of the year, you will at least have to pay bank loan interest, right? Based on our usage, the working capital you need is estimated to be 200 million

Or so, the interest on this loan is not a small amount. If Changda Group does not default on the payment, on the one hand, you will speed up the capital turnover and the required working capital will be greatly reduced. In addition, there will be almost no need to pay much interest. Do you think this is the truth?

Does it make sense?" Guan Yuntian said.

Lao Chen had to nod in agreement, "That's true. Then tell me, what are your wishes in terms of supply price?"

"Give us a 10% discount on other customers' prices."
Chapter completed!