Chapter 677 678 [Asset Reorganization]

  At the beginning of 2003, the SARS outbreak caused panic among the people.

  Masks, disinfectant, and Banlangen have all become short-selling commodities.

   Fortunately, Xiang Nan made preparations in advance, not only meeting his own needs, but also donating a large amount to hospitals and schools, gaining a great reputation.

  The outbreak of SARS, although it has had a certain impact on the economy, is a blessing in disguise.

  Fruit vinegar, a health-care drink, was immediately welcomed by the masses. People are superstitious that it has the effect of fighting viruses and strengthening the body, so they buy it in large quantities.

   Because of this, Xiangnan's fruit vinegar factory has exploded in popularity and sales have increased greatly, which can be said to be a blessing in disguise.

  In addition, Xiang Nan has introduced herbal medicine planting in Yuquanying before. In addition to wolfberry, there are isatis root, honeysuckle, astragalus, licorice and so on.

   Now that the epidemic has broken out, traditional Chinese medicinal materials for clearing away heat and detoxification, such as Banlangen and honeysuckle, are immediately looted.

  Before, the price was only two yuan per catty. During the SARS period, the price of Banlangen rose immediately because it was effective for the disease. When it was the most expensive, fifty yuan a catty was twenty-five times greater.

  Honeysuckle was only 10 yuan per catty before SARS, but it rose to 150 yuan per catty during SARS, which is also a ten-fold increase.

   Therefore, the farmers who followed Xiangnan Chinese herbal medicine took this opportunity to make a fortune.

  …

  In 2003, Ernst & Young Shou and Ernst & Young Kang also used their companies as collateral for loans for real estate development in Yinchuan.

  Xiang Nan expressed his support for this, and provided a guarantee for them when they took out the loan.

  Otherwise, Shoukang Construction Company would not be able to borrow millions of dollars based on the wealth of the Shoukang Construction Company alone.

  There is *****, Shoukang Construction Company successfully transformed into Shoukang Real Estate Company, acquired land to build a house in Yinchuan, and did a great job.

  …

  In 2003, Xiang Nan also reorganized many industries under his banner, such as Liren Apparel, Quanjun Liquor, Yongfu Canned Food, and Fafu Feed.

  Established the parent company, Fuhua Group, and changed it from a sole proprietorship to a joint-stock enterprise.

  On the one hand, attracting external investment will help the company continue to grow; on the other hand, rewarding middle and high-level equity will also help strengthen their centripetal force.

   Veterans of companies like Ma Debao, Li Shuiwang, Li Gawa, Baimaimiao, etc., were allocated shares worth hundreds of thousands of RMB, which made them both happy and grateful.

  Actually, the real purpose of Xiang Nan's restructuring is to gradually shed power.

  He plans to officially resign next year, and then he will take Shuihua and Xiaoyan to Yanjing to settle down.

   Once there, he will not return to Yuquan Camp unless necessary.

   Only by reorganizing the shareholding system can he get out. Otherwise, there is no way to leave as a sole proprietorship.

  …

  At the beginning of 2004, Xiang Nan was about to officially step down.

   At this moment, An Yongshou and An Yongkang found him.

   "Brother, you must take action in this matter." An Yongshou said urgently.

   "Yeah, if you don't start, then we will be doomed." An Yongkang also said anxiously.

   "What nonsense are you talking about, what's going on, talk about it carefully, don't be surprised." Xiang Nan rolled his eyes at them and said, "Would the sky still fall if I'm here?"

   "It's like this, brother, the town has been in arrears with our construction funds for almost two years. If they don't pay it back, we will have no way to survive." An Yongshou explained.

   "Yes, it adds up to more than 13 million. They always procrastinate, so we can't accept the project, and the workers' wages can't be settled." An Yongkang also said quickly.

   "Why do you owe so much?" Xiang Nan frowned when he heard that.

  Shoukang Real Estate Company's total assets are only over 30 million yuan. Thirteen million in arrears, accounting for nearly half of the company's total assets. If such a large amount of money cannot be recovered, of course there will be problems with the company's operations.

  "We used to accept projects from the town, and the project money was settled very happily, so later, it asked us to advance funds to build office buildings, pave tap water, and repair roads, so we did it.

   I didn't expect that after these projects were completed, I asked it to settle the bill but it would not give it. After procrastinating and procrastinating, it finally dragged on for two years. "An Yongshou explained.

"We wanted to tell you a long time ago, but we felt that such a small matter is not worth opening your mouth." An Yongkang added, "But now they always delay, we really have no choice. Brother, Only you go out."

  Xiang Nan nodded.

  This matter, he still has to do it.

  He then called Ma Defu and asked him about the town's arrears of project funds.

   "Yongfuer, this matter is quite complicated." Defuer pondered for a moment and said, "Well, I will come to your house tonight and I will explain it to you in detail."

  Xiang Nan nodded.

  …

  That night, Defu came to Xiang Nan's house.

   "What the **** is going on? For no reason, how could you owe so much money?" Xiang Nan asked straight to the point.

  Defu sighed, and told Xiang Nan the ins and outs of the matter.

  It turned out that in 2002, after Minning withdrew the village and established a town, the jurisdiction was also transferred from Haiji County to Ning'an County. In the process of handing over, something went wrong, so that the management of the town was chaotic, and all kinds of messy things happened.

  Shoukang Construction Company originally signed a contract with Haiji County, but later the jurisdiction was transferred, Haiji County did not pay the bill, and Ning'an County did not accept the bill. Therefore, more than 10 million project funds were never approved.

  In addition, Minning Town is now a national key demonstration area for poverty alleviation, and every leader wants to come here to be plated with gold. But after they arrived, instead of being down-to-earth and working hard, they engaged in image projects and face projects.

  So that those poverty alleviation funds are not enough, and I have owed a lot of debts in the past two years. In addition to Shoukang Construction Company, there are actually more than 30 engineering teams, none of which have settled the payment. The total liabilities total more than 60 million.

  The annual financial income of Minning Town is only 20 million. Therefore, with such a large debt, even if all the civil servants in the town do not receive a salary or pay a penny, it will take three or four years to pay off the debt.

   "The situation is so serious!" Xiang Nan couldn't help frowning after hearing this.

  In the play, this happened in Minning Town. I originally thought that this situation can be avoided now that the economy is improving, but I didn't expect it to be more serious than in the play.

   "Does the superior understand this situation?" Xiang Nan asked.

   "The town has been covering it. Even if the superiors have heard about it, they may not know the details, and they don't know that the hole is so big." Defu shook his head.

"It seems that someone has to expose this matter. Otherwise, the famine will get worse and more people will be involved. If it continues, I don't know what will happen." Xiang Nan nodded and said .

   "Yong Fu'er, don't meddle in this matter, you may cause trouble to your upper body. I will help them pay for the money owed to Shoukang." Hearing this, Defu quickly advised.

  This kind of thing of uncovering the cover, whoever does it will be unlucky. Xiang Nan's property in Minning Town is so large, if something happens, the loss will be huge.

"Someone has to do this. I'm afraid there is no one in Minning Town who has a thicker waist than me. If I dare not make a sound, the others will not dare." Xiang Nan waved his hands and said, "Besides, I lift the cover, not just for my brother, but for all the engineering teams in Minning Town and the people of Minning Town who work for them."

   Hearing what he said, Defu nodded with emotion.

  (end of this chapter)