Chapter 87: The Privatization Reform

Hearing Zhao Guoyang stop halfway through his explanation, Ning Xiaohong couldn’t help but press him, “Guoyang, do you mean…”

Zhao Guoyang spoke in a low voice, “Exactly. What I mean is that the Xiangyang Machinery Factory should undergo a restructuring, become privatized! Then, we follow the example of Xiangyu Mold Factory and focus on plastic parts.”

“To be honest, I’ve thought about making molds before. But the investment is really huge, and I never dared to pursue it,” Liao Jingsheng muttered, “Besides, Guoyang, does privatization have anything to do with mold-making?”

Seeing the confusion on both Liao Jingsheng and Ning Xiaohong’s faces, Zhao Guoyang explained carefully, “Let me break it down for you. First of all, Xiangyang Machinery Factory isn’t a state-owned enterprise, it’s privately run, right?”

Liao Jingsheng nodded, so Zhao Guoyang continued, “Since it’s a private enterprise, you can absolutely keep up with the current wave of reform. Simply put, you turn Xiangyang Machinery Factory into a joint-stock company. Once you implement the reform, Director Liao, if you want to be in charge and become the major shareholder, you’ll have to invest the most. Others, like Chief Ning here, who are key staff, will also need to invest—they’ll be minor shareholders.”

Seeing Ning Xiaohong’s surprised expression, Zhao Guoyang pointed outside and said, “As for the other workers, Director Liao, you can allocate shares based on their previous contributions and years of service. If someone wants to invest, their share increases accordingly. That way, the funding problem for the mold factory is solved, isn’t it?”

“Exactly! And it tackles the persistent issue of low productivity in state-owned and private enterprises!” Liao Jingsheng exclaimed, jumping to his feet.

Zhao Guoyang could tell from Liao Jingsheng’s excitement that his words had sunk in and that Director Liao would likely start planning how to implement this idea as soon as he returned.

Unlike Liao Jingsheng, Ning Xiaohong wasn’t particularly enthusiastic about the joint-stock system. Although she was already the Chief of Technology at Xiangyang Machinery Factory, her short tenure meant she hadn’t saved much money. If she were to invest for shares, she’d probably lose out to the more senior workers. Would she even be able to keep her position as Chief of Technology? This was her worry.

Zhao Guoyang noticed her concern immediately and comforted her, “Xiaohong, don’t worry. Every company rewards its technical backbone with shares. Even if you don’t invest, Director Liao will certainly value you…”

Liao Jingsheng smiled, “That’s right, Xiaohong. If we set up a joint-stock company, no matter how much others invest, you’ll definitely be among the top shareholders.”

Hearing Director Liao’s assurance, Ning Xiaohong’s worries vanished. Her cheeks flushed, and she said shyly, “Master, it’s not the amount of shares I care about. I just worry whether I’ll be able to handle the technical work after the reform… After all, I know nothing about plastic mold technology.”

“Don’t fret. I might be able to help in that area,” Zhao Guoyang reassured her.

“Great!” Liao Jingsheng laughed. “Now you can rest easy, Xiaohong! To be honest, our factory’s technical department can’t do without you! Unless you, Brother Zhao, are willing to join us. Otherwise, Xiaohong, you should prepare to be Chief of Technology for life!”

Liao Jingsheng’s joke made Ning Xiaohong laugh. She stole a glance at Zhao Guoyang, thinking to herself that her master was truly whimsical. With Guoyang’s abilities, how could he ever join a small factory like theirs?

Unaware of Ning Xiaohong’s thoughts, Zhao Guoyang’s eyes flickered and he turned to Liao Jingsheng, “Director Liao, if a joint-stock company really gets established, you can’t call it the ‘Technical Section’ anymore. It should be the ‘Technical Department’!”

“As for Comrade Xiaohong, she shouldn’t just be the Chief of Technology—she ought to be the Deputy General Manager for Technology, as well as Head of the Technical Department!”

Liao Jingsheng was momentarily stunned, then quickly understood and nodded repeatedly, “That’s a great suggestion. Our Xiangyang Machinery Factory’s staff would all get a promotion. Xiaohong, are you satisfied now?”

Ning Xiaohong rolled her eyes, “Master, shouldn’t you be happy too? If the joint-stock company is really founded, you’ll be the chairman!”

Hearing the familiar term “chairman,” Zhao Guoyang and Liao Jingsheng exchanged glances and burst into laughter.

...

The meal with Liao Jingsheng and Ning Xiaohong lasted until two in the afternoon. The more they talked, the more congenial they became. Liao Jingsheng even proposed giving Zhao Guoyang shares, but he tactfully refused.

The main reason Zhao Guoyang helped Liao Jingsheng with ideas was his appreciation of Liao’s character, as well as his confidence in Liao’s capability and vision. Having met countless entrepreneurs and industry elites in his previous life, Zhao Guoyang could judge people with uncanny accuracy.

In his eyes, Liao Jingsheng was undoubtedly someone with innate business acumen. What he lacked now was experience and perspective. With time and opportunity, Liao Jingsheng would surely grow quickly.

Of course, Zhao Guoyang had his own motives. If Liao Jingsheng’s Xiangyang Machinery Factory could successfully complete its joint-stock reform and start producing plastic molds, it would benefit both the future development of Hongda Machinery Factory and the growth of his own small workshop.

Lately, Zhao Guoyang had been sketching a rough plan for himself and his factory. At Hongda Machinery Factory, making vehicle frames was profitable, but the technology was quite basic. In the future, vehicle manufacturing would be the core of the machinery industry. With his knowledge, Zhao Guoyang was confident he could handle motorcycles, electric vehicles, even cars.

Once he got into vehicle production, plastic parts would become essential. As the saying goes, ‘A hero needs three helpers.’ If Hongda Machinery Factory could collaborate with Liao Jingsheng’s Xiangyang Machinery Factory—one specializing in vehicles, the other in plastic parts—it would greatly benefit both businesses.

As for his own small workshop, the molds were simple for now, and the small mold factory in Heima Township could supply them. But if the workshop expanded and diversified, that township factory would no longer suffice. He’d need a serious supporting facility.

If Xiangyang Machinery Factory transformed to produce plastic molds, it would have just that potential.

After settling the matter of renting the laser spot welding machine and saying farewell to Director Liao and Ning Xiaohong, Zhao Guoyang checked the time—it was nearly three o’clock. Remembering he still had to visit Monkey’s house today, he hurried to the bus station.