Huang Handao: "The biggest reason why these two factories have not gone downhill, but are developing very well, is that they can fulfill our "Huamei style" orders.

Currently our share accounts for a little more than half of their output value.

‘Huameifeng’ also takes special care of them and has always settled and paid monthly. If they follow the example of other units and delay the billing cycle for a year and a half, these two factories will be in big trouble.”

In 1986, triangular debt began to show its signs, and it intensified in 1987. In the next few years, countless units that should not have died were dragged to death by triangular debt.

Huang Han has experienced those years personally and knows the pros and cons.

Therefore, we are not willing to do business with debts from the beginning, so as to prevent triangular debt from disrupting the hard-won good economic order of Sanshui County.

At that time, Xinfeng Clothing and Luggage Factory either sold directly to self-employed people or wholesaled to self-employed people, and they all took cash. Except for Xu Ruodenan, who could get the goods first and then pay the money, it was impossible for other self-employed people to owe money.

When Huang Daozhou sells valves and faucets, he always signs a contract to stipulate the settlement period.

If the other party does not pay on time, it is impossible to get the second batch of goods.

It would be a pity to lose a company that cheats on payment! This kind of untrustworthy garbage will die sooner or later. There is nothing to worry about.

When there is a dispute, there are only two ways to solve the problem, take the money to settle the bill or return the goods.

In fact, when the hydraulic component factory first started working with them, they focused on water plants in various places. These were state-owned units and their revenue was no problem.

Later, when we were producing bellows expansion joints, we were in contact with large companies. As long as they were "courteous", they would not be able to breach the contract.

Huang Daozhou's business is done smoothly, and there are basically no cheating units.

Therefore, Huang Daozhou has never recognized the common phenomenon that doing business requires giving people credit. Every time he holds a work meeting in the county, he speaks from his own experience and uses his own successful cases to illustrate that the market can grow bigger and bigger without taking credit!

He reached an agreement with Qin Kunlun, Qian Guodong, etc., emphasizing that the performance of factory directors and managers should not be calculated based on output value, but based on revenue.

Factory managers whose output value is far greater than revenue will face accountability!

Why? It means they have no brains, and the products are already unsaleable and they are still producing them foolishly.

If the receivables exceed 20% of the invoiced amount, the factory director and manager will be judged as unqualified and wait to give up their positions!

This decision is very necessary. Don't think that because the unit is not yours, you can generously support the country and the collective. A five percent warranty deposit is a common practice and is understandable.

How do you explain the receivables exceeding 20%? Is the factory's gross profit 20%? How much money does this kind of business lose? Is it necessary to continue doing it?

Of course, for such stupid factory directors, the manager immediately asked them to step down and make room for cadres with online intelligence.

Even after being dismissed from office, we cannot easily let go of such people. How can the country and the collective bear the losses in vain?

Whoever owes the debt will be responsible for collecting it, otherwise there will be no hope of getting a salary.

Come to the factory or the county to make trouble? That’s fine! Why make trouble at home if you have the ability? Just pack up and go to an employer that doesn’t pay back the debt!

Are you really embarrassed, shameless, dare to fight to the death, and are you afraid that you won't be able to pay back the debt?

Those who owe money are not hooligans or charlatans, they are all state-owned and collective units.

If you don’t dare to quarrel with the cooperative unit that refuses to pay back the debt, then you have to check to see if there is something fishy!

Huang Han has experienced that period and knows that too many triangular debts are caused by generosity to the country and the collective, which enriches a few people.

Therefore, he taught Qin Kunlun, Huang Daozhou, Qian Guodong, Cheng Shengli and many other identification methods.

The main leaders of Sanshui County have many advantages to having good ears and eyes. If they want to commit crimes, they have to weigh them carefully.

Every time the county held an economic work meeting, it was emphasized that no debts were allowed and that each unit must be held responsible for every payment. Discipline was gradually formed.

Nowadays, business leaders in Sanshui County have reached a consensus. They will be beaten and scolded, and business with outstanding debts will not be allowed!

Huang Han often said, "Most people who only want to pay debts are thinking of defaulting on their debts." Now this sentence has become a sunflower manual.

Qin Shujie is very capable. When she was invited to visit the factory, she didn't just look at things. She carefully looked at the equipment, the products, the mental outlook of the cadres and workers, and recorded important data.

In her memory, it is impossible for a unit with good efficiency and good profitability to take the initiative to reform.

The battle of shareholding ratios when discussing joint ventures also requires attention.

She was smart and capable, with clear thinking. She nodded and said: "It turns out that these two factories are now the main raw material suppliers of our 'Huameifeng', so they must be merged!"

“It’s actually important to eat the good apples first.”

"What do you mean?" Maybe this sentence was a bit advanced and Qin Shujie didn't understand it.

Huang Han explained: "There is a common problem in domestic factories. If the efficiency is acceptable, they will remain stagnant and lose the motivation for innovation and technological transformation. At this time, it can be described as a good apple.

The market is constantly changing. Gradually, the products of this kind of factory will become outdated and start to lose money. Maybe they will become insolvent and become a rotten apple.

This is not sensational. Take "Dongfanghong Cloth Factory" and "Shengli Spinning Factory" as an example. Their products are currently relatively advanced in China, but they have long fallen behind in the international market.

At present, our country's foreign exchange is tight, and it is impossible for too many foreign fabrics to enter the market. It will be very different in the future.

Faced with the impact of imported goods or new products from joint venture companies, ‘Dongfanghong Cloth Factory’ and ‘Shengli Spinning Factory’ immediately faced sales difficulties.

It is impossible to compete for the market by lowering prices, because production costs are much higher than those of competitors, and lowering prices is tantamount to suicide!"

Huang Han is quite certain, because originally the two factories were deteriorating and later closed down one after another. Some workers worked for private bosses, including Liu Xiaogang, the brother of Liu Xiaoming, the dyer of "Dongfanghong Cloth Factory".

"Haha..., interesting! Red apples, rotten apples, bargaining is equal to suicide, these two metaphors are quite vivid. I understand, talk to them about apples when negotiating with the county!"

"Good apples are the price of good apples. This is very important. Eating good apples first does not mean selling the country's and collective assets at a low price."

"Yes! The company's profits are good and its backbone is strong during negotiations. Of course, the shareholding ratio can be increased."

"'Dongfanghong Cloth Factory' and 'Shengli Spinning Factory' are very important to us and we are determined to win!"

"I have visited both factories more than once. The motivation and technical proficiency of the workers are much better than those of the undisciplined workers in American factories. Unfortunately, the equipment is old and has long been out of date.

If we acquire advanced equipment and replace it with advanced equipment, while the number of existing employees remains unchanged, the output can be increased four to five times, the labor intensity of employees can be reduced by about half, product quality will be more stable, and the yield rate can be greatly improved."

“Technology is the primary productive force. If we don’t introduce advanced equipment, it is impossible for these two factories to completely solve the fundamental problems of backward technology and high costs.

Bankruptcy is inevitable.

Our merger of these two factories will benefit the country and the people as well as the two to three thousand industrial workers. At least their daily work intensity can be reduced by less than half."

"It's obviously a business behavior of capitalists, but when you say that, it seems like it has become a good deed. Are you ashamed?"

“The primitive accumulation of capital is indeed dripping with dirty blood, but capital also promotes social development and industrial upgrading.

Therefore, I believe that capital is neutral and is neither good nor bad. The key is who is using the capital and how to use it!"

"That's very clear. You have a wide range of knowledge."

"I am over-flattered!"

"Dese! I think that after the merger and reorganization of 'Dongfanghong Cloth Factory' and 'Shengli Spinning Factory', the daily output can be expanded five times. "Huamei Feng" cannot handle such a large amount of output and must be exported."

"Our textiles have a good reputation internationally. We use the same equipment and production technology. Factories in European and American countries, even Mexico and Southeast Asia, cannot compete with us."

"I know! Our workers should be the most disciplined and the cheapest. The cost advantage is obvious and of course we are competitive!"

"The most important thing is that there are tax incentives and export subsidies for exports. As long as the quality and style of the products do not fall behind, no international competitors can withstand our low-price dumping!"

"I know all this. Anyway, I will definitely discuss the equipment before November. The joint venture will be leaked to the relevant leaders of the county tomorrow! In fact, we can also be a sole proprietor."

"It is not good to be a sole proprietorship. 'Dongfanghong Cloth Factory' and 'Shengli Spinning Factory' have at least two to three thousand skilled workers. These people are precious.

We build a new factory and recruit junior high school graduates for training, but we won’t be able to produce products for a year and a half!”

"That's true! A joint venture can make up for each other's strengths and make it more cost-effective!"

"But you have to be very tough in front of the leaders of Sanshui County and propose that you can set up a factory as a sole proprietor.

And revealed that you may be able to attract skilled workers from the 'Dongfanghong Cloth Factory', 'Shengli Spinning Factory', 'Guanghua Towel Factory', 'Xiqiao Cotton Fabric Factory' and other units by doubling or even tripling their wages.

Technical workers.”

"Is this playing hard to get?"

"No, it should be considered as prepared. If we can't reach an agreement on the joint venture, we have to do this. It's too passive to not be able to make the decision on the fabric issue."

"I understand, this is a clear discussion with the county leaders and let them make multiple choice questions!"

"I guess they should choose a joint venture. They are not fools. They know that if they lose the order for 'Huamei Style', the factory will be unsustainable."

"The initiative is ours, and we have no intention of cheating anyone. We just don't want to be cheated. The joint venture is easy to discuss!"

"Yes! I have never had the evil intention of embezzling state assets or collective assets. I have always cooperated with reasonable valuations and strive for a win-win situation."

"I can see that you have a conscience, so I like to cooperate with you."

"With all our intelligence and talents, can we possibly reach out to seek ill-gotten gains?"

"Haha..., you really can't do it! There are many places to make money!"

"Rong'er must be very busy during this time, right?"

"I mentioned Xiaorong after talking for so long. She will be unhappy if she finds out."

"I won't be fooled by you!"

"What's the meaning?"

"If I asked Ronger how she was as soon as we met, you would definitely say that you don't know your priorities? There are so many big things to discuss, and you are so irresponsible.

So it’s hard to be a human being! It’s hard to be a human being!”

Qin Shujie couldn't help laughing again and said: "Sophistry! Xiaorong brought something specially for you, let's take a look!"
To be continued...