Chapter 308: Prepare for a Rainy Day
After chatting with Zhang Jiaming for a while, an hour later, Zhang Jiaming got up and left at Song Yuanchao's suggestion. After Zhang Jiaming left, Song Yuanchao relaxed his sitting posture and threw a cigarette to Qin Zhengguo.
"This guy looks pretty good."
"Of course. Don't you see who brought this person out?" Qin Zhengguo was very proud.
"Did you plan to let him be in charge of the factory?" Song Yuanchao asked while smoking.
Qin Zhengguo nodded, "Yes, I have this plan. When Jiaming was in Hong Kong, he was in charge of communicating with the factory. Although he is not from a production background, he is quite familiar with production and products. He is in charge of the purchase of equipment in Hong Kong, and now he is also following up on the installation and commissioning of the equipment. I transferred him here to serve as the deputy general manager. Originally, I wanted him to be directly in charge of the factory. Now Daqi is coming, right? How about letting him be Daqi's deputy?"
Song Yuanchao thought about it and shook his head: "I don't think this arrangement is appropriate."
"Inappropriate? Why?" Qin Zhengguo was stunned, and the smile on his face became a little stiff.
"Zhengguo, don't get me wrong. I don't think Zhang Jiaming is incompetent. On the contrary, this young man is quite capable, otherwise you wouldn't think so highly of him." Song Yuanchao said so. As he said this, Qin Zhengguo's stiff smile eased a lot. After all, Zhang Jiaming was brought up by him, and he was also an old man who had followed him when Xiangjiang Shenghua first opened. Although Zhang Jiaming's ability was not as strong as Xu Hui's, Zhang Jiaming had a good understanding and was good at learning. He had improved rapidly in the past two years, otherwise Qin Zhengguo would not have transferred him to Pengcheng.
"I just talked about so much, one of which is the issue of corporate structure. Maybe you haven't understood my idea yet." Song Yuanchao flicked his cigarette in the ashtray and explained to Qin Zhengguo with a smile: "Currently, this is a company registered in the name of Xiangjiang Shenghua Company, right?"
"Yes, the sign is at the door : Xiangjiang Shenghua (China) Co., Ltd." Qin Zhengguo didn't quite understand what Song Yuanchao meant, but he still answered the question.
"On the surface, there is nothing wrong with this company's name, but now it is mainly a manufacturing company, so this is not appropriate. And as a manufacturing company, we must avoid the common problem of many domestic companies, that is, the company is too big and comprehensive."
"A company can only concentrate on doing its job well if it focuses on it. If its energy is dispersed, doing this and that, then the company will inevitably achieve nothing in the end."
Seeing Qin Zhengguo thinking, Song Yuanchao continued: "Since it is a production-oriented enterprise, the main task is to do a good job in production. This is the most important thing. Everyone has advantages and disadvantages. No one in the world is perfect. So we have to look at them separately in the management of the enterprise."
Song Yuanchao put the cigarette box on the coffee table and pointed at it, saying, "For example, if this cigarette box is the Xiangjiang Shenghua head office, then this cigarette..." Song Yuanchao took a cigarette out of the box and put it aside, "...is the factory."
Then he took out another cigarette: "This cigarette is from Xiangjiang Shenghua's branch or office in the mainland..." Then he took out another cigarette: "This one is from the hotel..."
Putting the third cigarette aside, Song Yuanchao continued to take out cigarettes and said, "This one, plus this one, and this one... are Shenghua's enterprises or companies in various places in the future."
Watching Song Yuanchao taking cigarettes out one by one from the cigarette box, Qin Zhengguo seemed to understand Song Yuanchao's business a little: "Are you saying that we shouldn't concentrate all the businesses in one company? It will be difficult to manage it this way?"
"That's right!" Qin Zhengguo is still very smart, otherwise he would not have become the company's boss in his previous life, and would not have brought Xiangjiang Shenghua to its current level.
Song Yuanchao smiled and said, "Perhaps my analogy just now is a little simple, but the principle is the same. Xiangjiang Shenghua is the headquarters, and the mainland company can be a branch. In addition, the nature of production and trade is different, so it is more appropriate to set up two companies than one. This is not only convenient in terms of management, but also conducive to mutual supervision between companies."
"Think about it, if a company puts all its businesses together, what is the difference between the domestic company and the Hong Kong headquarters? Who will manage whom between the domestic company and the Hong Kong headquarters? Will there be conflicts of various kinds in the future? Or even a situation where the tail is too big to be removed?"
"In addition, there are the specific management aspects I just mentioned. Human energy is limited. It is simply impossible for one person to be responsible for so many things. Furthermore, the group headquarters, branches, subsidiaries, and the entire internal framework of the company must be built. If we don't do these now, it will be difficult to do them later."
"I understand . How about this, what do you think is the best way to proceed?" Qin Zhengguo asked.
Song Yuanchao had been thinking about this issue when he was talking with Qin Zhengguo and Zhang Jiaming just now, or he had thought about it before coming to Pengcheng.
Immediately, Song Yuanchao proposed to use Xiangjiang Shenghua as the group headquarters, which would be fully responsible for the management of the entire group. It was internally called the "Group Management Company", and the factory in Pengcheng would be mainly registered as Shenghua Manufacturing Co., Ltd. The framework of this company existed as the main body of the manufacturing industry. In the future, all manufacturing and production enterprises would be under the management of the Manufacturing Co., Ltd., and this company would be directly responsible to the Xiangjiang headquarters.
In addition, the currently registered Xiangjiang Shenghua (China) Co., Ltd. is a branch of the group's headquarters in the mainland, mainly responsible for procurement and trade. In this way, it can form cross-business with the manufacturing company, separate the big business into specific tasks, and have a mutual supervision effect.
In addition, in the hotel sector, Shenghua Hotel Company will be established in the future, mainly engaged in service-oriented business. These branches or subsidiaries are connected to each other, but they are relatively independent, which can better implement management and supervision needs.
More importantly, such operations are related to the control of capital flow. As a Hong Kong-funded enterprise, Shenghua Company needs to make a profit from its investment in the mainland. However, under the current capital flow model in the mainland, coupled with the foreign exchange system and import and export aspects, many operations are inconvenient for capital conversion and demand.
In addition, the issue of taxation must also be taken into consideration. Although the local government has now given Shenghua a preferential policy of two exemptions and three reductions by half, five years will have passed in a flash. Once the tax incentives are gone, it will be somewhat uneconomical for Shenghua to expand further in scale.
Song Yuanchao certainly did not intend to evade taxes, and he would not do such illegal behavior. However, as a company, reasonable tax avoidance is what all corporate managers will do, and this method is also tacitly permitted.
Registering different companies according to different businesses is not an uncommon method in later generations, and it can also avoid some unexpected situations to a certain extent, which are inconvenient to describe in detail.
Song Yuanchao even planned to let Qin Zhengguo register several offshore companies in the Cayman Islands or other places, and then use the names of these offshore companies to first control Xiangjiang Shenghua, and then control some of the mainland companies through cross-shareholding.
There are many benefits to doing this. Song Yuanchao simply told Qin Zhengguo the general idea. As for the specific needs, Qin Zhengguo can consult professionals after returning to Hong Kong.
In Hong Kong, there are many professionals or professional institutions responsible for such agency, but that is a story for later. This kind of thing is not so urgent now and can be done bit by bit. Now the key still lies in Pengcheng.
"Let Daqi be in charge of the manufacturing company. You will be the chairman and he will be the general manager. Xiangjiang Shenghua (China) Co., Ltd. will do the same for the time being. Let Zhang Jiaming be the general manager."
"It's the same at the hotel, right?" Qin Zhengguo asked.
"Yes, at present, there are only these three companies... No! If the real estate business can be operated, you have to register a company as soon as possible to conduct real estate business. Basically, that's what it means. However, the establishment of the chairman and legal person of other companies can be considered separately, and the group or branch company can hold full control."
"It's quite troublesome. What I told you is a mess, but since you said so, let's do it." Qin Zhengguo scratched his head. Many of the things that Song Yuanchao had instilled in him today were beyond his understanding, but out of trust in Song Yuanchao, Qin Zhengguo agreed without hesitation.
"Zhengguo, thank you for your trust and support." Song Yuanchao suddenly said seriously.
Qin Zhengguo was stunned, then laughed and said, "Don't be so serious. What is your relationship with me? Is there any need to say this? Besides, you are the big boss, and I am your employee. Since the big boss has spoken, of course I support him with both hands."
"That's not the way to do it." Song Yuanchao put his hand on Qin Zhengguo's shoulder and patted him hard: "Shenghua is our joint efforts. Shenghua's current scale is inseparable from your efforts. Although I am the boss, you are also the boss, and you are the actual operator. Your opinion is very important."
"When I mentioned the company system and rules just now, I saw that you didn't agree with it, but even so you didn't say anything against it, but supported me. Zhengguo, we are brothers, and trust between brothers is a must. And your character has always been like this. You would like to pour out your heart to your friends when they are good to you."
"But today I have something I hope you can remember. Being nice to your friends and being straightforward are good things, but as an entrepreneur, it has disadvantages from a business perspective. Entrepreneurs, we used to call them capitalists. What is capital? You should know, right?"
"Capital is exploitation. Haha, I am also exploiting now." Qin Zhengguo laughed.
"This is just one way of saying it, a rather one-sided way of saying it, but it cannot be said to be completely wrong. As a qualified entrepreneur, you should not first consider your personal problems, but the overall development of the enterprise. Before making a decision, you should not let your emotions outweigh your rationality. Maybe this is difficult for you, but considering the future, I still hope you will think about it more and ponder it more."
"Sometimes being too trusting is both an advantage and a disadvantage. This kind of personality can lead to a series of unpredictable consequences. You are not alone now. You have a family, Caixia, and a child who is about to be born. You also have such a large company and subordinates who follow you around. Once you make a wrong decision due to your emotions, or do something irreversible, the consequences will be very serious."
"I ask for the improvement of the enterprise system, the formation of rules, and effective supervision, which also takes these aspects into consideration. You and I are not saints, let alone perfect people. As long as we are human, we will make mistakes. Some mistakes can be made up, but some mistakes cannot be made up."
Qin Zhengguo didn't expect Song Yuanchao to say such a thing. He frowned while smoking a cigarette and thought carefully about what Song Yuanchao said. After a long time, his expression finally relaxed.
"Don't worry, I kind of understand what you mean."
"good!"
Song Yuanchao nodded heavily and smiled.
He sincerely hoped that Qin Zhengguo would listen to his words and not repeat the tragedy of his previous life. Qin Zhengguo was a very good friend and a very capable and motivated person. He could be said to be a natural businessman, but his shortcoming was also very obvious, that is, he was too easy to trust his friends because of his personality.
In his previous life, Qin Zhengguo fell into the abyss in this way. He lost everything overnight and ended his life in the most tragic way.
Song Yuanchao sincerely hopes that Qin Zhengguo will not have such problems again, which is the real reason why he has said so much. Song Yuanchao hopes to become lifelong friends with Qin Zhengguo, Li Daqi, Gu Jie and others, and make a name for themselves in this era together, so that their lives will not be in vain.
