Chapter 2668: Reform Plan

Wang Jianmin fell into deep thought. He knew about the relationship between Gu Bing and Zhou Andong, after all, this was no secret. As long as one paid attention, one could certainly find out. Moreover, being in his position, even without deliberately inquiring, he would come to know.

Seeing Wang Jianmin remain silent for a long while, Zhou Andong smiled faintly: "You should know Gu Bing's family background, and you certainly already know my relationship with him. If Gu Bing were to concurrently serve as director of the State-owned Assets Office, besides my full support for him, the Gu family would certainly tilt resources toward him."

Wang Jianmin was moved, but did not show it: "This matter is not something I can decide alone; I need to report to the mayor and also obtain the secretary's approval."

Zhou Andong didn't care how they decided, as long as he wasn't made to take the role: "Having Gu Bing concurrently serve as director of the State-owned Assets Office is the wisest choice. I believe the mayor and secretary will not oppose it."

Wang Jianmin shook his head: "Alright, let's get down to business."

"You were the one spouting nonsense first." Zhou Andong muttered: "This is the reform plan."

Wang Jianmin took the file bag: "What were you muttering just now?"

"Nothing!" Zhou Andong said, talking nonsense: "I didn't eat lunch, now I'm a bit hungry and uncomfortable, just thinking about where to get something good to eat."

Wang Jianmin looked suspiciously at Zhou Andong: "You didn't scold me?"

Zhou Andong's expression immediately turned serious: "Leader, lend me eight guts, and I still wouldn't dare to scold you."

"Hmph!" Wang Jianmin snorted: "In this world, is there anything you dare not do?"

"There are many things I dare not do." Zhou Andong said solemnly: "First, I dare not scold you, not even in my heart. Second, I dare not commit murder or arson."

Wang Jianmin also grew tired of dealing with Zhou Andong, opened the file bag, took out the reform plan, and began to flip through it.

Zhou Andong turned and sat on the sofa, crossed his legs, lit a cigarette, and then began to idle away, looking this way and that.

After twenty or so minutes, Wang Jianmin roughly finished reading the plan, looked up at Zhou Andong: "The woolen mill's valuation is 23.5 billion, which is fine. But the city only retaining twenty-five percent of the shares—isn't that a bit low?"

"Not low at all!" Zhou Andong said: "Jiangzhou Textile Mill holds ten percent, Jingcheng city holds twenty-five percent, and the rest are all allocated to workers and factory management.

And the shares held by workers, including factory management, only have dividend rights, no decision-making power. Even if they wanted to sell their shares, they would have to sell them to the factory. Of course, the factory must buy them at the prevailing share price. So, the city remains the largest shareholder."

Wang Jianmin opened the reform plan again, turned to the third page, where it wrote what Zhou Andong had said: "The woolen mill's valuation is 23.5 billion, the city holds twenty-five percent, Jiangzhou Textile Mill holds ten percent, the remaining sixty-five percent, 13.325 shares—shouldn't it be one yuan per share? You want to sell at one yuan five, isn't that a bit high?"

Zhou Andong explained: "In state-owned enterprise reform, the primary goal is to ensure preservation and appreciation of state assets. Therefore, pricing must ensure state assets are not underestimated, and be reasonable and compliant.

When Jiangzhou Textile Mill originally acquired the ten percent stake, the premium of twenty million was made with this consideration. Additionally, we must also factor in the enterprise's development potential and prospects."

Wang Jianmin nodded, but still said: "But have you considered that such a price might lead to insufficient subscription willingness and acceptance among worker-shareholders? If too high, it could result in under-subscription?"

"One yuan five per share is not high." Zhou Andong said: "Back when Jiangzhou Liquor Factory subscribed, it was still one yuan per share. For a large enterprise like the woolen mill, one yuan five per share still seems low to me."

Wang Jianmin pondered: "What you say makes sense, but in the end, how many shares the city holds and how many are allocated to workers will be decided after the standing committee discussion. However, you can rest assured—we will definitely respect your opinion, and even if there are discrepancies, they won't be too large."

"It doesn't matter!" Zhou Andong said truly indifferently about this matter: "Of course, we follow the city's decision."

Wang Jianmin smiled, lowered his head to look at the plan: "Also, Jinshiguang—you want to spin it off, build your own brand—this is fine. But accepting foreign investment still needs discussion.

Although rumors had already circulated before the year-end that the state allows domestic private capital and foreign capital to participate in state-owned enterprise reform and reorganization. But after all, there is still no official document issued, so we must proceed cautiously."

"No need to be so cautious." Zhou Andong lit another cigarette, knowing the central document would be issued in January 1995: "Since rumors have spread, this matter is already settled. You, sitting in this position, as long as you pay a little attention, will certainly know the accurate information."

Wang Jianmin did not deny: "Can you tell me which foreign enterprise this is?"

"Qiudongfang of Xiangjiang." Zhou Andong said, face unchanged: "The Jinwan Group and Ziluolan Apparel across the sea."

Wang Jianmin's mouth corner twitched violently: "You think I don't know who Qiudongfang and Jinwan Group belong to?"

Zhou Andong chuckled: "You definitely don't know Ziluolan Apparel."

Wang Jianmin said unhappily: "I don't want to know either."

"You can't not know." Zhou Andong was very pleased with Wang Jianmin's embarrassed expression: "This is to be studied at the meeting. You, as a leader, not knowing who the foreign investors are—this is serious dereliction of duty. Of course, you are the leader; if you really don't want to know, then I won't say."

Wang Jianmin took a deep breath, reminding himself inwardly not to get angry, not to get angry, to deal with this little brat after the woolen mill's successful reform: "Go on, I'm listening."

Zhou Andong naturally didn't know Wang Jianmin was thinking of settling accounts with him later: "Ziluolan Apparel is Wanwan's enterprise, a very famous luxury brand. The boss is my little uncle, my grandfather's younger son, one of the heirs of Jinwan Group."

Wang Jianmin really didn't know what to say, raised his hand, pointed vaguely at Zhou Andong a few times, angry and laughing: "Three foreign investors, one is your own, the other two are your close relatives."

Wang Jianmin said, then glanced again at the reform plan: "Also, there are three other investors: one is Jiangzhou Textile Mill, one is the property management company you mentioned—these two companies are also yours, right?"

"Not all mine." Zhou Andong explained earnestly: "I am merely a small shareholder."

"Hmph!" Wang Jianmin snorted: "And there's this last individual investor, called Ye Zhen. Being able to appear on your investment list, it should be the Ye Zhen of the Ye family. But as I understand, you two have no deep relationship. But now her name appears on the investment list—this shows there is an exchange of interests between you, right?"

"Exchange of interests?" Zhou Andong said dissatisfied: "Your words are biased; this should be mutual benefit."

Wang Jianmin laughed again angrily: "Whether it's exchange of interests or mutual benefit, this reform of Jinshiguang—perfectly fine state-owned enterprise, in the end changed its surname to Zhou—do you think that's appropriate?"

"Appropriate!" Zhou Andong said solemnly: "Very appropriate. You, leader, look at the shareholding: Qiudongfang twenty-nine percent, Jiangzhou Textile Mill ten percent, Ziluolan Apparel ten percent, Jinwan Group six percent, Ye Zhen four percent.

Our combined holdings are forty-nine percent, the woolen mill fifty-one percent, still controlling—no problem at all. Of course, if Jinshiguang can go public in the future, the shareholding structure will definitely be adjusted, then we'll have to wait and see."