Chapter 43: Corporate Restructuring
On December 2, 1995, Tongxian Electric Power Group Co., Ltd. was established; on December 15 of the same year, Tongxian Baida Supply and Marketing Group Co., Ltd. was established; on December 30 of the same year, Tongxian Catering Group Co., Ltd.
On January 15, 1996, Tongxian Agricultural Group Corporation was established.
The power group merged the county's power supply stations, power plants, water plants, and water pipe stations, and had one general manager, one party secretary, and six deputy general managers. It is a state-owned enterprise.
Baida Supply and Marketing Group Co., Ltd. merges department stores, supply and marketing cooperatives, shops, printing plants, service plants, bamboo and lacquer companies, trading companies (sugar, tobacco and wine companies), and salt monopoly companies. The government holds the majority stake, and collectives participate in the shares. The board of directors is elected by shareholder representatives, and the government sends a board member to serve as chairman. The participating collective enterprises elect a general manager, and then the shareholders' representative meeting elects three deputy general managers, who are appointed by the board of directors.
The catering group merged six hospitality companies in the county, a food company, a winery, and a large restaurant in Tongxian County. Unexpectedly, Wu Yulan invested in the group company as a private person and used mortgage loans to finance the acquisition of large restaurants and light industrial guesthouses.
The most surprising thing is that Wu Yulan, together with several other collectively owned enterprises, successfully obtained four director seats out of five board members. Wu Yulan was even elected as the chairman. She and the directors from three other collective enterprises hold 62% of the shares of the catering group.
Originally, the county party committee intended to send the strongest management personnel to the catering department. However, they never expected that the director of the government office would be defeated by Wu Yulan, who ran a small restaurant, and had to condescend to become the general manager.
If Hu Jiao had not stepped forward, Tang Wang, the director of the government office, might not even have been elected as vice president.
This caused the conservatives who had been watching the changes in silence to jump out again and make comments.
But the rules cannot be changed, and everything must follow the procedures of company law.
As for the electric power group and the top 100 supply and marketing groups mentioned above, the former is completely nationalized and the latter is also controlled by the government. They never expected that the catering industry would encounter strong resistance from individual private enterprises.
Tang Wang was extremely anxious for several months. As the general manager, he finally completed the integration, but the fruits of victory were taken away by others.
The county committee didn't expect this, and Hu Jiao didn't expect this either.
Tang Wang is a retired cadre. He was formerly the director of the county party committee guesthouse. He once led the guesthouse to achieve an astonishing eight years of rapid development, and was therefore promoted to director of the government office.
Of course, in Wu Yulan's words, if it were not for the support of the county party committee and government, as well as all the townships in the county, and its large location and site and heavy investment in hardware, the county party committee guesthouse would have collapsed long ago.
But no matter what, it is an indisputable fact that Tong County owes the guesthouse hundreds of thousands of yuan in entertainment fees every year.
If these hundreds of thousands of debts are excluded, Tang Wang's performance will be even better.
So Hu Jiao took this aspect into consideration and tried hard to persuade Tang Wang, who was nearly 50 years old, to be the general manager of the catering group. Moreover, Tang Wang himself was not interested in government work. After working as the director of the government office for more than two years, he almost applied for early retirement.
Of course, what worries Tang Wang the most is that the director of the guesthouse who succeeded him was not running the business well and had only barely broken even in the past two years. Hu Jiao personally stepped in and after much consideration, he decided to return to his old business.
Unexpectedly, such an experienced, intelligent and courageous veteran cadre was defeated by Wu Yulan, a Cheng Yaojin who suddenly appeared.
Tang Wang was too embarrassed to go back to the government office and was almost sick from anger, but there was nothing he could do. What would it matter if the result was elected by the shareholders' meeting, even if the person was sent by the government?
Hu Jiao had no choice but to come forward to discuss with Wu Yulan, and only then was he able to barely keep his position as board member and general manager.
The following agricultural groups were mostly enterprises affiliated to county-level bureaus and agencies. They were not like administration, business, or enterprises, but most of them operated well and did not incur any losses.
The agricultural machinery company is responsible for the county's agricultural electromechanical products, and does some processing, agricultural vehicle training, etc., and they live a comfortable life.
The agricultural supply companies are closely connected to the Agricultural Bureau, township agricultural stations, agricultural technology stations, and tobacco stations, and have a firm control over the distribution of plastic films, pesticides, and fertilizers.
Others, such as seed companies and local product companies, either occupy storefronts on the street and openly snatch business from department stores and supply and marketing cooperatives, while secretly implementing one-stop underwriting. For example, the seed company is the only one that produces agricultural seeds in the entire county.
The local product company is the only one that buys all kinds of local products. There is no need to collect them slowly in each township. There are specialized individuals who collect them from below and hand them over, making a small profit from it. Anyway, it is impossible to sell them in the county. Once caught, they will be fined, confiscated, and seized, which can force people to lose everything.
The integration of enterprises controlled by several administrative and public institutions almost made Hu Jiao angry. Finally, with the support of Tie Xiangqian, he forced the Standing Committee to remove him from the position of Director of the Agriculture Bureau.
The director of the Agriculture Bureau was none other than Li Changsheng’s uncle, Li Changwu.
When Hu Jiao proposed the integration of several companies, Li Changwu was the first to jump out to oppose it and refused to implement it. The government issued three documents, but there was no counter-effect.
So, at the suggestion of secretary Chen Tingyong, Hu Jiao proposed to dismiss him at the secretaries' meeting, but Li Changsheng strongly opposed it.
Several secretaries parted unhappily, and Tie Xiangqian had to convene a standing committee meeting. Li Changsheng, the local tyrant who thought he had a sure win, lost the vote for the Minister of Armed Forces.
As a result, Hu Jiao and Li Changsheng became enemies.
Next, the struggle for the position of general manager of the agricultural group entered a fierce stage.
Li Changsheng proposed that Li Changwu be appointed as the general manager of the agricultural group, but Hu Jiao really had no one else available. The managers of the four companies, namely the agricultural supplies company, the agricultural machinery company, the seed company, and the local products company, were all short-sighted and had no management skills.
If it weren't for the monopoly policies of the Agricultural Bureau and other functional departments, it would have been wiped out long ago.
After much deliberation, Hu Jiao had no choice but to push Liu Tieshu out.
Director of the government office and general manager of the agricultural group, Li Changsheng sneered, on one side is an administrative position, on the other side is a corporate boss, this is truly a characteristic of the socialist market economy.
He just bullied Hu Jiao because he had no one to use.
Liu Tieshu thought about it for a whole week and finally sided with Hu Jiao and was willing to resign from his position as director of the government office.
But man proposes, God disposes. The proposal was not passed at the secretary's meeting. Hu Jiao thought that it would be the same as the last time and the personnel matter should be approved at the Standing Committee meeting, but it still fell at the hands of the Minister of Armed Forces.
It still belongs to Minister of Armed Forces Tong Yongnan.
Less than half a month after Li Changwu was removed from his post as director of the Agriculture Bureau, he was appointed general manager of the Agricultural Group, which is wholly state-owned.
Tie Xiangqian had not expected things to develop to this point. It seemed that he was too optimistic before. After discussing with Hu Jiao, he decided not to rebound for the time being. It was not easy to open up the situation of enterprise reform. It would be detrimental to the overall situation to launch a struggle at this time.
On March 15, 1996, Tong County held the Eighth People's Congress. The meeting elected Comrade Tie Xiangqian as the Chairman of the People's Congress, the meeting elected Li Changsheng as the Vice Chairman of the People's Congress, and the meeting elected the Deputy Secretary of the County Party Committee and Deputy County Mayor Hu Jiao as the County Mayor of Tong County People's Government.
Before the National People's Congress was held here, Deputy Secretary Cheng Yuanchao was transferred to the Municipal Tourism Bureau as deputy director, and Minister of Armed Forces Tong Yongnan retreated to the second line.
Organization Minister Zheng Shunli became deputy secretary, Organization Department Deputy Minister Lan Jing was appointed director of the County Party Committee Office, former County Party Committee Office Director Wang Dezhi was promoted to deputy secretary and deputy county magistrate, and former Organization Department Deputy Minister and Personnel Bureau Director Gui Lan became Organization Minister and no longer served as Personnel Bureau Director.
The director of the Personnel Bureau is Chen Shoulai, the head of Tieshu Township.
This series of adjustments was to ensure Hu Jiao's election as county magistrate. Li Changsheng was comforted by Tian Fumin and felt sad. Although he retained the position of deputy secretary of the county party committee, he was mainly responsible for the daily work of the county party committee.
As for why Hu Jiao quickly became the county magistrate, the main credit lies in his "sell out" policy. In fact, it is not a simple sale, but getting rid of loss-making enterprises. It helps the county finances to recover a large amount of subsidies and significantly reduce expenses. This is secondary.
The main reason is that he knows how to appoint the right people to the right positions. The four major group companies that were established have achieved gratifying results in the first quarter. The power group operates water and electricity, two essential raw materials for production and life, and it is understandable that it has achieved profits. The results of increasing fiscal revenue are gratifying, which is the most important achievement of the government.
Zhou Wenwu, the former director of the Personnel Bureau and current general manager of the power group, is quite capable. After joining the preparatory group, he immediately started to select the deputy general manager and then began to plan the business management.
All operating personnel of each hydropower station were withdrawn and supplemented to the power supply stations in each township. The hydropower stations also hired local temporary workers to reduce the cost of power generation.
Then, using fixed assets as collateral for mortgage loans, and with the support of Hu Jiao, he began to improve the county's power grid and built three substations.
Internal management is swift and resolute, performance-based, and the salary income of management positions is increased, penalties are increased, and rules and regulations are strictly enforced.
After a series of combined efforts, the power group's profits increased threefold year-on-year in the first quarter.
From then on, Zhou Wenwu was called Zhou the Tiger.
If Zhou Wenwu's management methods are powerful, then Baida Supply and Marketing and Catering Group can be called legendary. Baida Supply and Marketing firmly grasps the advantages of its outlets, pays close attention to purchasing management and warehouse management, reduces the purchase price of goods, and begins a comprehensive going global strategy. It signs agency contracts with many manufacturing companies in the province, diversifies similar products, and competes on quality and price to maximize profits. At the same time, it establishes counter service, and all sales staff are paid a minimum wage plus commission.
The stores in the county were rebuilt and renovated in a planned manner. In the first month after its establishment, the cash on the books alone had reached five million, not counting the funds invested in improving hardware. Liu Liangang, the former director of the Economic and Trade Commission and one of the top 100 CEOs, became the famous CEO Liu.
As for Wu Yulan and Tang Wang of the catering group, they started distributing dividends in the first quarter.
Only Li Changwu, the first thing he did after becoming the CEO, was to use the hundreds of thousands of funds on the books to buy an imported car. After the first quarter, he operated the business according to inertia, making no loss or profit and protecting his capital.
This is a long story, but for Hu Jiao, it is an impressive political achievement. The profits submitted by the three major groups have increased sixfold compared to before the integration.
Therefore, the Fenghuang Municipal Party Committee recommended Hu Jiao to be the county magistrate. After the Tongxian People's Congress, he skipped the acting process and was successfully elected.
At this National People's Congress, Zhou Wenwu, general manager of the Electric Power Group, Zhou Yulan, chairman of the Baida Supply and Marketing Group and chairman of the Catering Group, and Tang Wang, general manager, were all elected as members of the Standing Committee of the National People's Congress.
The new government team consists of seven comrades, including deputy secretary of the county party committee and county magistrate Hu Jiao, deputy secretary of the county party committee and executive deputy county magistrate Ma Zhengpin, member of the county party committee and deputy county magistrate Wang Dezhi, deputy county magistrate Mao Xianwu (former director of the Finance Bureau), deputy county magistrate Lv Fenglin (former director of the Development and Reform Commission), deputy county magistrate Yang Wenguang (transferred from another county), and Chen Sumei (on secondment).
Members of the county party committee standing committee team: Secretary Tie Xiangqian, Deputy Secretary Hu Jiao, Deputy Secretary Li Changsheng, Deputy Secretary Zheng Shunli, Deputy Secretary Ma Zhengpin, Deputy Secretary and Secretary of the Discipline Inspection Commission Zhou Shilon, Organization Minister Gui Lan, County Party Committee Office Director Lan Jing, Political and Legal Secretary and Public Security Bureau Director Lu Dawei, Propaganda Minister Sun Xin, Armed Forces Minister Peng Bing and other eleven comrades.
Among them, Li Changsheng has transferred to the NPC office and retains the right to nominate organizational personnel. Party and mass work has been handed over to Zheng Shunli, the former organization minister and current deputy secretary.
After the successful conclusion of the National People's Congress, Hu Jiao began to divide the government work.
Privately, the party is in charge of personnel matters, and Tie Xiangqian took the initiative to give up financial power. The new director of the Finance Bureau, Chen Fulai, was known to all county cadres as a close confidant of Hu Jiao.
There are six deputy county heads. Ma Zhengpin is in charge of finance, personnel, transportation, and industrial development, and assists Hu Jiao in presiding over the daily work of the government. Wang Dezhi is in charge of politics and law, economy and trade, urban construction, and planning. Mao Xianwu is in charge of agricultural economy, rural work, tobacco, water conservancy and hydropower, etc. Lu Fenglin is in charge of science, education, culture, health, maintaining stability, and foreign affairs. Yang Wenguang is in charge of ethnic groups and religions, civil affairs and disaster relief, forestry, statistics, and auditing. Chen Sumei is mainly responsible for attracting investment and assists the county head in carrying out enterprise restructuring.
After more than half a year of work, with the support of Tian Fumin and Tie Xiangqian, with Hu Jiao officially elected as county magistrate, Tong County entered the "Hu selling out era."
Although Hu Jiao achieved great success in the enterprise reform and restructuring of Tong County, the sharp contrast between the revenue and expenditure figures in terms of improving finances alone is a vivid political achievement.
For all the cadres and masses in the county, the most beneficial thing is to receive their wages. Before the People's Congress was held, they finally received their wages for March 1996 on time.
Hu Jiao tasted the sweetness and planned to continue implementing it. This time, he set his sights on the county pharmaceutical company.
Before a preliminary survey could be carried out, the Tong County to Tieshu Township highway was completed and Professor Fu retired. Hu Jiao was very grateful to the old professor and tried again to keep him.
At the same time, the Tieshu Township Revolutionary Education Base - the General's Tomb, the General's Former Residence, and the Tieshu Red Army Deeds Exhibition Hall were also announced to be completed.
In fact, the three bases had been completed a month ago. Since the main traffic artery had not been accepted, Tieshu Township organized tour guides to carry out preliminary simulation learning in an effort to make a successful start.
The current Party Secretary of Tieshu Township is Bai Yongshu, and the Township Chief is Liu Shiqun. According to the model previously agreed upon by Guilan and Hu Jiao, they will take the education base as an opportunity to carry out handicraft processing, and have reached a cooperation intention with the county catering group in the field of catering and tourism .
After the report from Tong County, Vice Governor Li Mingyong instructed that the launching ceremony be scheduled for April 2, when he will personally cut the ribbon.
With the completion of the construction of the Tong Railway, the county's attention has finally shifted from enterprise restructuring. The place once known as the Millennium Iron Tree has finally broken the vicious circle of not being able to get promoted, thanks to the arrival of the current county magistrate, and four main cadres have emerged one after another.
The county magistrate is Hu Jiao, the county party committee member and organization minister Gui Lan, the finance director is Chen Fulai, and the personnel director is Chen Shoulai.
Last year, the leadership team of Tieshu Township had undergone tremendous changes in just one year.
Many Tong County cadres were secretly jealous. If they had stood on the right side at the beginning, when Hu Jiao fell from power, even if they could not help in any way, as long as they stood over there, they could still get some benefit.
The most disappointed person is Chen Xilai, who is now the deputy director of the Meteorological Bureau and feels like his days are numbered. He also wants to find Hu Jiao to report his ideological work seriously and profoundly.
Unfortunately, after making several phone calls, the secretary comrade whom he called home still said coldly that the county magistrate was busy.
Chen Tingyong is now living a comfortable life. He and Tie Shengli are both the chief secretary and the second secretary. They reported together and started working together. After several years of ups and downs, they are now finally close to the leadership circle.
There is one more thing about these two secretaries that only Hu Jiao knows: Wu Xiuxiu, who was frightened unconscious by Tie Shengli that year, is actually Chen Tingyong's wife. The couple were college classmates and got married last year.
When Wu Xiuxiu was assigned earlier, she was retained in the Municipal People's Congress. Now she works in the Municipal People's Congress Office as a deputy section-level clerk.
Tie Shengli secretly told Hu Jiao that Chen Tingyong had never known about the glorious incident in which Wu Xiuxiu had been frightened unconscious by him.
It is estimated that Wu Xiuxiu would not take the initiative to explain to Chen Tinghe, or maybe she had already forgotten it.
However, Hu Jiao analyzed that it would be difficult to forget such an unforgettable thing.
Apart from dealing with their own receptions, Tie Xiangqian and Hu Jiao basically made appointments to have meals together, so the two secretaries also often got together.
Wu Xiuxiu gave birth to a son years ago. When Chen Tingyong changed his son's name, he pretended to ask for advice, but in fact he wanted to show off and hoped that Tie Shengli could help.
Tie Shengli's wife was a teacher at a township middle school and had been transferred to teach at a county middle school. They had been married for three years and had a two-year-old daughter.
Tie Shengli hates it most when others brag in front of him that he has a son to carry on the family line. After all, he comes from a rural background, and Tie Shengli's parents are also unhappy about this. Unfortunately, the policy only allows one child.
In response to Chen Tingyong's provocation, Tie Shengli simply played dumb and said that he couldn't change his real name, but he could help him come up with a nickname.
Chen Tingyong asked, what’s your nickname?
Tie Shengli said, Black Bull.
Hu Jiao almost fainted from laughing. He really couldn't imagine what Wu Xiuxiu's expression would be like when Chen Tingyong, who was known as a panacea, went back and told her his son's nickname.
In the end, Chen Tingyong chose three names: Chen Zhenghe, which means peace and harmony among the people, Chen Yuhe, and Chen Doudou.
He asked Hu Jiao to help him choose, saying that it would bring him some noble airs. Hu Jiao didn't hesitate and directly chose Chen Doudou.
I thought to myself, are you trying to tease me, are you treating me like a child?
