Chapter 39: Upgrading the business department and establishing an independent company
Because of Wu Siyuan’s persistence, [Chaoqun Group]’s next development focus lies in the water industry.
The original environmental protection business department could no longer meet the needs of development, so under the auspices of Wu Siyuan, the environmental protection business department became independent from [Chaoqun Group] and upgraded to an independent branch - [Bikong Environmental Protection Development Co., Ltd.].<
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[Bikong Environmental Protection Development Co., Ltd.] consists of two industrial centers [Water Affairs Center] and [Garbage Treatment and Recycling Center], and two functional centers [Administrative Center] and [Scientific Research Center].
[Water Affairs Center] will expand the production and sales of tap water, sewage treatment, construction and operation of drainage facilities, etc.
The [Garbage Treatment and Recycling Center] will carry out sludge treatment, industrial waste treatment, construction waste treatment and other related businesses on the basis of the original [domestic waste treatment plant], and will fully intervene in the field of environmental sanitation.
The original He Youman's position was promoted from the general manager of the Environmental Protection Division of [Chaoqun Group] to the chairman of [Bikong Environmental Protection Development Co., Ltd.]. This is a proper feudal official, with high power and great autonomy.
Increase.
The other executives on the side were all excited when they saw it!
They thought that Wu Siyuan attached great importance to this environmental protection business, but they did not expect that he valued the environmental protection business so much that even the agricultural development division where the group was founded and the Internet division that created the most profits did not receive this treatment.
The executives began to make small calculations in their hearts.
He Youman also serves as the vice president of [Chaoqun Group] and is still in charge of [Chaoqun Group]'s biological research laboratory.
In fact, this biological research laboratory is He Youman's main job. The position of chairman of [Bikong Environmental Protection Development Co., Ltd.] is only temporary. She is only responsible for supervising and managing the company's strategic development direction, and the specific implementation is left to the original
Wang Hang, the director of the [Bikong Domestic Waste Treatment Plant], took charge. He was promoted to the general manager of [Bikong Environmental Protection Development Co., Ltd.]. Within the [Chaoqun Group] system, his rank is equivalent to the general manager of the business department.<
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Wang Hang, who was suddenly promoted, was so excited that his face turned red. In the high-level meeting, he patted his chest and told Wu Siyuan and He Youman that he would definitely live up to his expectations and would definitely work hard for Wu Siyuan and He Youman.
Under the leadership of He Youman, [Bikong Environmental Protection Development Co., Ltd.] will be well managed, bigger and stronger!
This made the general managers of the business divisions who were meeting together feel sour, especially Guan Xuelie. He was thinking of finding a reason to show off his merits to Wu Siyuan, emphasizing that the group's agricultural development division was also very influential.
We will try our best to see if there is an opportunity to upgrade it to an independent subsidiary like the Environmental Protection Division.
Of course, that is a matter for the future.
After the framework of [Bikong Environmental Protection Development Co., Ltd.] was established, General Manager Wang Hang got into busy work.
Through some personal connections, he found the Longhua County government department where the [Bikong Domestic Waste Treatment Plant] is located, and made a request to contract the environmental sanitation of the entire county, and promised that Longhua County would only need to pay 6 million yuan every year to ensure that
The senior officials of Longhua County were surprised when they heard the contract conditions. They asked Wang Hang twice about the authenticity of the matter. After receiving a positive reply, they reluctantly believed it.
It’s not that this senior county official overreacted because there is no city government, but the 6 million yuan in environmental sanitation contracting costs is a loss-making business.
Someone is involved in the beheading business, but no one is involved in the loss-making business. This is contrary to common sense.
You know, taking Yangcheng, the capital of Yue Province, as an example in 2014, based on the budget quotas stipulated by the province and city, Yangcheng needs a total of about 2.9 billion yuan in environmental sanitation and cleaning funds. There are a total of 11 districts. On average, each district has
It requires 263.6 million yuan.
Longhua County in Guizhou Province is equivalent to a district in Yangcheng. Of course, due to economic development, population size, area, etc., Longhua County's annual investment in environmental sanitation is far from being comparable to that of a district in Yangcheng. But even if it is only one-tenth of Yangcheng's, it still requires 26.36 million yuan.
Of course, the actual expenditure is definitely not 26.36 million yuan. Longhua County’s fiscal revenue does not allow it, but it is far more than 6 million yuan.
I don’t know if this amount of money is enough to pay sanitation workers, let alone the equipment expenses for transporting garbage, fuel expenses, and the purchase of sanitation tools.
For a long time, the sanitation companies in Longhua County have adopted methods of lowering the wages of sanitation workers, increasing the work intensity of sanitation workers, and lowering environmental sanitation standards to ensure their own profits, but they are only small profits.
In this case, both the sanitation company and the sanitation workers are very dissatisfied.
Therefore, when senior county officials heard that Wang Hang proposed a contracting fee of [6 million yuan], they reacted so strongly and thought he was joking.
Of course, Wang Hang also made several requests later.
The first one, [Bikong Environmental Protection Development Co., Ltd.] requires a franchise of more than ten years and does not want to go through bidding every year.
Second, [Bikong Environmental Protection Development Co., Ltd.] requires all rights to handle garbage, including complete disposal rights for collection, transfer, transportation, treatment and other processes, not just limited to cleaning.
Every process of garbage disposal will incur costs, and this part is largely subsidized by government finance.
[Bikong Environmental Protection Development Co., Ltd.] This is done to control the entire waste treatment industry chain, which facilitates the adjustment of company resources, reduces costs, and increases profits.
After hearing these two requests, the senior county officials nodded. Sure enough, they were not here to do good things, but to get government subsidies.
Then, Wang Hang made one last request, hoping that after contracting the sanitation business in Longhua County, he would also thoroughly contract the water affairs business, including tap water supply, sewage treatment, pipeline construction, black and odorous water treatment, etc.
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This request made things difficult for senior county officials.
It doesn't matter whether the sanitation contract is contracted. The sanitation company in Longhua County is state-controlled and a state-owned enterprise. If someone takes over, whether it is the county or the state-owned enterprise to which the sanitation company belongs, they will be happy to throw away the burden of sanitation work.
However, the local water utility has signed a long-term contract agreement with Green Water Water Group in Guangxi Province.
Green Water Water Group has many connections in Guangxi Province and its strength is not bad. They are well managed, and even the Longhua County Government cannot let them give it up.
However, the Longhua County Government does not want to offend [Bikong Environmental Protection Development Co., Ltd.]. To be precise, it does not want to offend [Chaoqun Group] behind [Bikong Environmental Protection Development Co., Ltd.].
[Chaoqun Group] is much stronger than Lvshui Water Group. In the [Forbes Fortune 500] announced in July this year, [Chaoqun Group] has an estimated revenue of US$28.8 billion (because it is not listed on the market, it has never been listed).
No annual report has been published, so Forbes can only rely on estimates), and estimated profits of US$9.04 billion, ranking in front of group companies such as [Tencent], [Alibaba], and [Nokia], ranking 407th.
You must know that on this list, [Alibaba] is only ranked 462nd, and [Tencent] is even lower, at 478th.
Of course, if you say that [Chaoqun Group] has greater domestic influence than [Tencent] and [Alibaba], that is impossible.
[Tencent], which specializes in social networking, connects everything, and [Alibaba], which specializes in e-commerce, recreates the economy. They have formed an ecosystem and have an ecological influence.
The reason why [Chaoqun Group] is on this list is because of the success of the [Audition] project at home and abroad. Its encryption algorithm is unique and cannot be cracked. It is currently the only scorpion in the world, so it is
With such high revenue and ranking.
Once the [Audition] algorithm is cracked and copied, [Chaoqun Group]'s revenue and ranking will immediately drop off a cliff.
Of course, that was after the [Audition] algorithm was cracked.
Now, [Chaoqun Group] is still a Fortune 500 company.
Longhua County does not want to offend such a company. After all, it still wants to invest in others and promote the economic development of the county. Senior county officials all have political performance needs.
Moreover, [Chaoqun Group] has been deeply involved in Guangxi Province for many years and has many investments in Longhua County, including [Bikong Domestic Waste Treatment Plant], [Forage Cooperative], [Fruit Growing Base], [Pig Farm],
[Lingquan Organic Fertilizer Factory], [Small Fresh Meat], [Shennong Orchard], [Cold Storage] and other industries have a total investment of more than one billion yuan, providing more than 2,000 jobs, directly and indirectly affecting the income of tens of thousands of families. [Bikong Domestic Waste Treatment Plant] is still an environmentally friendly enterprise that has been featured on Xinwen Network and praised by the country’s head of state!
Longhua County senior officials were in a dilemma. After discussion at the meeting, a few days later, Longhua County senior officials invited Wang Hang to come over to discuss contract matters.
A senior official of Longhua County told Wang Hang that the county agreed to completely contract the county's garbage to "Bikong Environmental Protection Development Co., Ltd.", including sanitation services, but the contract period must be extended to 20 years, and the annual contract fee of 6 million cannot be
Change.
Longhua County has limited financial capacity. In addition to major highways and streets, many towns and streets have to rely on streets to raise their own sanitation funds. The financial pressure has always been great. [Bikong Environmental Protection Development Co., Ltd.] is willing to take advantage of this. Longhua County is
Very welcome.
But then again, the problem of shortage of sanitation funds is not just a topic in Longhua County. Even in Yangcheng, the capital of Yue Province, sanitation funds have been very tight, and occasionally sanitation sanitation workers have to ask for wages. p>
For example, in 2014, Yangcheng needed a total of about 2.9 billion yuan in environmental sanitation and cleaning funds, but the actual investment was only about 1.95 billion yuan, and the gap ratio was as high as 32%.
This is a nationwide problem. To put it bluntly, there is not enough money.
After Longhua County caught a rare victim, it not only took the initiative to ask for an extension of the contract period, but also made other demands.
For example, environmental sanitation cleaning standards require that sanitation workers must not be fired at will, their pay must be reduced, and group accidents must not be caused.
Wang Hang, who had been authorized, basically agreed to these requirements, except for one - sanitation workers should not be dismissed at will, and expressed his opposition.
Wang Hang said that after taking over the sanitation work, all sanitation workers will be re-trained, including the management. The company will expand or downsize them based on the actual situation, but the downsized personnel will not be dismissed, but will be
The training will be transferred to other positions. If the employee does not agree to the transfer, the company will also provide him with a compensation amount that complies with the law and then fire him.
After hearing this, the senior county official thought for a moment and agreed to Wang Hang's request.
After reaching an agreement on sanitation work and garbage contracting work, senior county officials talked to Wang Hang about [water contracting].
Senior county officials said that Longhua County's water affairs have been contracted to Guizhou Green Water Water Group. In Longhua County, they have [Longhua County Water Plant], [Longhua County Sewage Treatment Plant], and [Longhua County Water Construction Project]
Co., Ltd.] Three companies.
Senior county officials said that they could provide a bridge for [Bikong Environmental Protection Development Co., Ltd.] and provide a platform for communication with [Green Water Water Group].
As long as [Bikong Environmental Protection Development Co., Ltd.] can persuade [Green Water Water Group] to transfer its Longhua County water affairs business, the Longhua County government will not have any objections and will instead give the green light.
It doesn’t matter if [Green Water Group] is unwilling to transfer. [Bikong Environmental Protection Development Co., Ltd.] can take over the sanitation business and garbage contracting business first, while waiting for opportunities.
When Wang Hang heard this, he felt dissatisfied.
The group, or Wu Siyuan and He Youman, gave him the order to win the water business in Longhua County. This is the key point, and sanitation work and garbage contracting are just additions to it.
The behavior of senior officials in Longhua County is actually to play both sides. They don't want to offend both sides, so they throw the problem to Wang Hang.
Wang Hang regretfully said that the water business is the focus of the group's next work, and the group will invest heavily in this field. The water business contracting in Longhua County is experimental in nature and is very important. If it cannot
If it also contracts water services, then environmental sanitation contracting is useless. Although [Bikong Environmental Protection Development Co., Ltd.] is very reluctant, it has no choice but to choose other suitable counties and cities in the surrounding areas as investment locations. In the future, the group's investment will also be
It will tilt that way.
When the senior county officials of Longhua County heard this, they were quite surprised.
The cooked duck will fly!
So he immediately comforted Wang Hang, saying that it was the government's responsibility to solve the company's business problems, and asked Wang Hang to wait for his good news.
He is also a courageous person, or a person who has ideas about his career.
I don’t know what method he used and how many connections he used to finally convince [Green Water Water Group] to transfer Longhua County’s water affairs business and water related companies to [Bikong Environmental Protection Development Co., Ltd.].
Of course, the transfer price is not cheap.
After Wang Hang reported it to the group's board of directors, the board of directors agreed and spent a huge sum of money to purchase three companies of [Green Water Water Group] in Longhua County.
[Green Water Water Group] is not angry either, because they made at least 8 million yuan from this transaction.
They are eager to do this kind of transaction several more times!