Chapter 114: The Calm Before the Storm (Part 2)

That evening, after finishing work, Zhao Dongliang and the other three called all the employees to the canteen. Amidst the distressing sounds of pigs being slaughtered, they explained the plan to pool money together in the name of the workers' union to purchase shares in the paper factory.

After a series of humorous explanations comparing their share acquisition plan to setting up a pig farm where pigs breed more pigs and eventually share the meat, most of the employees understood the idea.

With this ingenious plan and the encouragement from key figures like Zhao Dongliang, combined with the fact that they wouldn't have to spend their own money, the workers' enthusiasm quickly surged.

The decision to raise funds for shares and petition the district office was settled with the final cries of the fat pig and the butcher's grumbling about the need to sharpen his knife.

Immediately, Old Liu from the factory's publicity department took a stack of white paper and, filled with excitement, used a brush dipped in still-warm pig's blood to write an elaborate petition of over eight hundred characters.

The next morning, a dozen employee representatives arrived at the district government office with the thick stack of smelly petition papers. After handing over the petition to the office director of the district chief, the group waited quietly in the reception area as directed by the office staff.

...

In the hotel, Wu Siti, adjusting his glasses, looked at the content of the large poster with a strong smell of pig blood. His expression grew increasingly gloomy.

Why did he want to take over the North Forest Paper Factory?

It was because the company's ownership was clear!

Now, this group of workers was fantasizing about raising money to buy some shares?

"Ridiculous!"

Bang!

Wu Siti slammed the thick petition on the table, frustratedly removed his glasses, and threw them down.

"What do they want to do? What do they want? Are they out of their minds? The factory belongs to the state, to the district! Do they think there's no district leadership in their eyes?"

Office Director Liu Weihong, intimidated by Wu Siti's anger, did not dare to voice his opinion. After Wu Siti stood by the window for a while to calm down, he quietly said, "Secretary Wu, I don't think the workers are being unreasonable this time. It seems... serious."

"Serious or not, it doesn't matter!" Wu Siti turned around. "The private parties and organizations involved in the worker placement issue already have significant disagreements. If we comply with their wishes and allow worker shareholding, what happens to the property transfer work?"

Liu Weihong agreed, but remained silent.

At that moment, someone knocked on the hotel room door.

Wu Siti waved at Liu Weihong, who opened the door slightly and spoke softly with the visitor before turning back and saying, "Secretary Wu, a young man named Li Xian is here and wants to see you."

Frustrated, Wu Siti quickly tidied the large poster on the desk and put it away before signaling for the visitor to enter.

As Li Xian walked in, he was immediately hit by the lingering smell.

He couldn't help but wrinkle his nose and put on a sorrowful expression.

Seeing Wu Zengsi seated behind the desk, Li Xian immediately said, "Secretary Wu, I'm really at my wit's end. The workers at the factory are not working, and my suppliers from Harbin have already blocked the factory gates! Can you do something about this? If you really can't handle it, I heard the district is planning to sell the factory's property rights. If that's the case, I might just buy it myself."

Wu Zengsi was taken aback.

In his impression, Sina Paper's predecessor was just a small paper factory under the Forestry Bureau. Even though business had been doing well recently, it was still minor.

Such a company wants to acquire the North Forest Paper Factory?

What strength does it have?

Isn't this just absurd?

"You want to buy it?" Wu Siti, already in a bad mood, chuckled, "Alright, you do have some connections with the North Forest Paper Factory. You had some foundation with the workers there. If you buy it, I can discuss with the Asset Management Committee to give you some discounts. But... how much can you offer?"

How much money does Li Xian have?

None!

He had taken all the cash he could use when he went to Russia, exchanging it for a large number of machines.

The current market value of those machines was unknown, and he didn't know how much they could be liquidated for. However, Li Xian estimated it would be no less than two million.

When he came, he had thought of a conservative number: "If squeezed, I might come up with one million."

Hearing this figure, Wu Siti was genuinely surprised; he didn't expect this young man to mention a million so casually.

He adjusted his posture slightly and pointed to the sofa beside him, "Li Xian, please have a seat. I didn't have the chance to get to know you well when we first met at the paper factory. What's your family background?"

Li Xian replied with a sigh, falsely claiming he was just a mountain boy who knew some people and had access to some resources.

Upon hearing that Li Xian had no significant background, Wu Zengsi relaxed and said sternly, "Li Xian, your offer isn't sufficient. The factory is valued at five million. Even if I negotiate with the Asset Management Committee for a discount, it's still far from enough."

Li Xian put on a distressed look and, under Wu Zengsi's gaze, pondered deeply for a moment before suddenly appearing enlightened.

"Secretary Wu, I heard that the workers want to raise funds to buy shares in the factory. I have a suggestion. I'm not sure if you're interested."

Seeing Wu Zengsi's puzzled look, Li Xian drew a circle on a piece of paper with a pencil and said, "You see, the North Forest Paper Factory will definitely undergo property transfer. However, the workers want to buy shares to become owners. How about this: the workers collectively raise five hundred thousand. I will contribute one million, making the factory's current 10% valuation equal to fifty million in shares. We can establish a paper industry joint-stock company with three parts: workers hold 25%, the district holds 25%, and I hold 50%. We'll use the existing equipment of the North Forest Paper Factory for production. How does that sound?"

Wu Siti's first reaction to this complex plan was resistance.

"Enough, enough, enough, enough! Li Xian, enough of this nonsense."

Li Xian was not deterred and stepped forward, "Secretary Wu, with this plan, the property transfer of the North Forest Factory is completed, the workers' placement issue is resolved, and if the company performs well, it can continuously generate revenue for the district. Even if the company fails, the factory and equipment can be reclaimed by the district! Given the current situation, isn't this a good solution?"

Hmm?

Wu Siti was stunned by Li Xian's explanation.

The plan seemed too complicated at first, and he didn't quite understand it. But after thinking about it, it seemed... reasonable!

He looked at Li Xian deeply, not quite believing that this plan was devised by such a young man in a few minutes.

But he did not reveal his doubts. Instead, he glanced at Liu Weihong, who had been standing silently by the side. Wu Siti noticed that his office director, who had studied economics in college, had an unusually bright expression behind his glasses!

At that moment, the hotel room door was knocked again.

Liu Weihong quickly went to open the door. As soon as he did, Yuan Daqing rushed in.

"Secretary Wu, good news, good news! Just now, Manager Zhou from Daqing called and said that if the district can lower the factory's valuation to 3.5 million, he will handle the worker placement issue!"

Upon hearing this, Wu Siti was delighted. He thought, this situation is indeed troublesome, but if this plan works, it's quite a solution!

**Note:** To avoid any confusion about the shareholding system, it should be noted that in this model, the management has full control over the company's operations, with no government interference. In the 1990s, most successful private enterprises that emerged from township enterprises were in this format. Such enterprises could enjoy favorable policies regarding loans, taxes, and land use, which ordinary private companies could not. There were even instances where governments cleared mountains to make space for these companies. Essentially, the government is a partner in the business. As long as the company is profitable, almost everything is permissible, except for illegal activities. If the company becomes extremely successful, it could inject a large amount of capital to dilute shares or change shareholders to allow some to cash out.