Chapter 151: The Industrial Structure Needs Adjustment

At the banquet table, faced with the two men’s confusion, Zhao Guoyang collected his thoughts and began to explain patiently to Liao Jingsheng and Ning Xiaohong.

It turned out that, at this stage, the majority of development funds for collective enterprises during their operations were borrowed from commercial banks. Moreover, most of the enterprise’s capital was tied up in fixed assets and some long-term investments, so the actual liquid funds available on the books of many collective enterprises were quite limited.

Under such circumstances, after the issuance of the “Asset Valuation Report” on the enterprise’s assets and property rights, a company originally valued at 20 million yuan might actually have an internal asset appraisal of only 2 million yuan, or even less.

Since Liao Jingsheng was the director of Xiangyang Machinery Factory, if he intended to become the head of the enterprise after restructuring, Jianghai County, based on the real situation of the factory, might directly allocate him 30% to 40% of the shares.

Adding Ning Xiaohong, the technical section chief, who could probably receive 5% to 10%, the two of them together might hold nearly half of the shares without having to invest a single cent.

Of course, this assumed that both Liao Jingsheng and Ning Xiaohong were willing to stay with the factory after restructuring.

If they decided to seek other paths, they would not be entitled to that share proportion. At best, they might receive a severance pay of a few tens of thousands, which would be the most they could hope for.

After thoroughly explaining this to Liao Jingsheng and Ning Xiaohong, Zhao Guoyang leaned back in his chair and said in a relaxed tone, “So, this is basically the situation. If your factory is really going to undergo restructuring, I suggest, Director Liao, that you must take over.”

By this time, Liao Jingsheng had almost grasped the intricacies of enterprise restructuring. Hearing this, he rubbed his hands excitedly and asked Zhao Guoyang, “Brother Guoyang, your words have truly opened my eyes. If the restructuring does happen, I definitely want to continue working here.”

Ning Xiaohong beside him nodded repeatedly, saying, “Yes, Master. The achievements of Xiangyang Machinery Factory after you took over are well known. If you don’t remain as the director after restructuring, I honestly can’t think of anyone else who could replace you…”

Liao Jingsheng laughed heartily and said, “Xiaohong, you’re mistaken. There are plenty of people who can replace me.”

Seeing Liao Jingsheng wink repeatedly at Zhao Guoyang, Ning Xiaohong was momentarily stunned, then quickly realized that her master was referring to Guoyang.

In fact, Ning Xiaohong had witnessed Zhao Guoyang’s abilities many times. Though she never said it aloud, she deeply admired him.

If Zhao Guoyang were to succeed her master, Ning Xiaohong was confident it would be absolutely fine, perhaps even better.

Of course, she also understood that Zhao Guoyang had his own ideals and ambitions.

Like his small workshop, which, according to his partner Monkey, had earned a couple thousand yuan in just a few days.

In Ning Xiaohong’s eyes, someone with Guoyang’s talents would naturally not be confined to the small corner that was Xiangyang Machinery Factory.

With Zhao Guoyang’s words easing the worries that had weighed on their minds these past few days, Liao Jingsheng and Ning Xiaohong felt much better.

They toasted and chatted as they went along.

Liao Jingsheng took a deep drink, put down his glass, and glanced at Zhao Guoyang: “By the way, Brother Guoyang, do you remember the Xiangyu Mould Factory in Zhejiang Province I mentioned last time?”

“Of course!” Zhao Guoyang replied without hesitation.

Seeing this reaction, Liao Jingsheng guessed that Zhao Guoyang had a strong impression of the Xiangyu Mould Factory.

After pausing to think for a moment, Liao Jingsheng said, “Brother Guoyang, to be honest, ever since the factory has been under pressure to restructure these days, I’ve been quite tense. I’ve been running around nearby counties and cities mainly investigating the survival prospects of mould factories like that…”

Upon hearing this, Zhao Guoyang immediately understood.

It seemed that, uncertain about the prospects of restructuring, Director Liao was thinking about alternative paths.

Having witnessed the brilliance of that mould factory in Zhejiang, Liao Jingsheng was pondering whether to develop in that direction.

From this perspective, Liao Jingsheng truly had some of the keen instincts of an excellent entrepreneur, and he acted decisively.

People like him, barring exceptionally bad luck, were bound to achieve great things in the future.

Seeing Zhao Guoyang remain silent, Liao Jingsheng worried that he might disapprove of his approach, so he cleared his throat and said, “Brother Guoyang, do you think I’m neglecting my duties? Our main business is machinery, yet I’m considering expanding into plastic parts…”

Before he finished, Zhao Guoyang shook his head repeatedly, saying, “Not at all, Director Liao, you’re mistaken. I greatly admire and agree with your approach.”

“Who says you can’t make moulds and plastic parts when you’re in machinery? These two industries share many commonalities.”

Zhao Guoyang paused, then continued: “Actually, from the perspective of industrial development, the machinery industry is gradually reaching saturation, and many factories face the need to adjust their industrial structure.”

“Director Liao, you must have seen how many machinery factories there are in our small cities of Ninghai and Jianghai County. I wouldn’t dare say exactly how many, but at least twenty or thirty, right?”

“Definitely. I know of more than a dozen just by myself,” Ning Xiaohong nodded in agreement.

Zhao Guoyang slapped the table and said, “Exactly. Anyone in this line of work knows that the barriers to entry in machinery are low and easy to get started. With an investment of a hundred or two hundred thousand yuan, you can get something reasonably decent going.”

“Compared with those emerging small machinery factories, our state-owned and collective enterprises have much higher labor costs. Unless production efficiency and processes are guaranteed, it’s easy to lose out in this competition.”

Liao Jingsheng and Ning Xiaohong nodded in full agreement.

Zhao Guoyang raised his hand to gesture and went on, “Since the machinery industry has little room left for growth, switching industries is inevitable. Director Liao, you’ve seen the prospects of plastic parts and mould factories and are planning to develop in that direction, which I think is excellent!”

“Yes, I’ve even suggested to Master that we give it a try… but he’s been unable to make up his mind, always frowning and struggling,” Ning Xiaohong added with a wink.

Liao Jingsheng looked at his beloved apprentice helplessly and sighed, “It’s not that I can’t decide. After all, this is a matter concerning the survival of the entire factory.”

“If I weren’t the director, maybe I would have bitten the bullet and gone solo. But now that Brother Guoyang says I can continue as director after restructuring, I have to be cautious.”

Zhao Guoyang caught a glimpse of the sincerity on Liao Jingsheng’s face and silently nodded to himself.

This man clearly possessed the steadfastness and grit of a veteran soldier — a true man’s man.

What was even rarer was that his business acumen and talent for managing an enterprise were also quite impressive.

If Zhao Guoyang could point him in the right direction, perhaps in the future this man would become a vital part of the industrial kingdom Zhao Guoyang had long dreamed of building.