Su Tao went on to discuss with Liu Ruochen about the restructuring of those hospitals and specific operation details.
Liu Ruochen was surprised that Su Tao wasn’t intending on operating it by himself. He wanted her to handle it instead. Then again, he gave enough benefits for her.
By asking Liu Ruochen to carry out the acquisition, Su Tao wanted the Aqua Cloud Steam and Three Flavour Hall to be tied together. Although Hanzhou City’s TCM University City was about to start, the talent pool was still insufficient. It would take at least five years for it to be resolved. Although the Aqua Cloud Steam wasn’t comparable to the Medical Dao Sect, it was still a sect that had been passed down for the past hundreds of years.
On the other hand, Su Tao was clear about his position. He only wanted to be a planner and had no intentions of going into the front-line. He was a physician, and his duty was to save lives. As for the development of the enterprise, it was to help him carry out his duty. There was no way he would give up on being a physician to wrestle for power.
Then again, it wasn’t exactly easier for the planner. Because he needed to have an over control of the situation with no mistakes allowed.
In order to prepare for the acquisition, Liu Ruochen temporarily stayed in Hanzhou City. During this period, Mo Sui’er was the happiest. Although she had integrated into the Three Flavour Hall, Liu Ruochen was her relative. She would be leaving the country soon. So having Liu Ruochen around really eased her tension.
Mo Sui’er yearned to go overseas, but she was also filled with anxiety. After all, she was just a lady barely not even in her twenties.
After another week or so, Mr. Xue sent company information on Ruixing Medical. This company had previously participated in the reformation project. But they were not facing bankruptcy due to improper operations and having a problem with their funds.
“Because the acquisition of state-owned hospitals required necessary qualification, it’s impossible for you to meet the qualifications if you register a new group right now.” Mr. Xue paused briefly and continued, “The quicker way is to register a new company and buy out Ruixing Medical. Then use Ruixing Medical to acquire the state-owned hospitals to participate in the reformation.”
Su Tao had studied the information that Mr. Xue sent over. With a helpless smile, he replied, “The Ruixing Medical is in a terrible situation. Although it has acquired many hospitals, there’s only one A-Grade Hospital under them. The rest are all in a mess. I’m afraid that buying it will only bring more pressure. I don’t think the investors will be happy about it.”
Mr. Xue was briefly stunned. He was angry at Su Tao’s bluntness and smiled, “Don’t worry about it. The Ruixing Medical has a strong background. Although there are some issues with the funds, there will be other investors after you buy it to make up your losses.”
Su Tao listened to Mr. Xue and felt relieved. If it went according to his expectation, the Ruixing Medical must have a government background. It was very likely that the investor would be under Vice-Premier Xiao’s influence. But due to various reasons, the temporary shortage of funds came up. Furthermore, they also hoped that would fully participate in the reformation. So they wanted to use this method to transfer it over to Su Tao.
The asking price wouldn’t be high, but the internal affairs must be in a total mess. Otherwise, Vice-Premier Xiao wouldn’t be determined to make the change.
Then again, Vice-Premier Xiao had high hopes for Su Tao. Otherwise, he wouldn’t let such an important piece go to Su Tao.
“Then I’ll get it done.” Su Tao smiled.
People like Vice-Premier Xiao have an entire team behind them coming up with plans for them. Su Tao was only a key to the plan for them to carry on.
Figuring it out, Su Tao couldn’t help smiling. Many of his efforts went down the drain. He originally wanted to try his best to meet the conditions of acquiring state-owned hospitals as soon as possible. But who would’ve thought that Mr. Xue had just resolved it.
Moreover, judging from the surface of it, acquiring Ruixing Medical would only make profit without any losses. Even if Ruixing Medical was suffering a loss now, it had acquired more than 1,000 state-owned hospitals. So they could bring profits quickly if he made use of it well.
The reason why profits weren’t quickly generated were mainly because the reformation wasn't planned in detail. So no profits were made.
Restructuring of state-owned hospitals was a long-term investment project. It was difficult to see any huge returns in less than ten years. But once profits were generated, not only were they stable, but also continuous. Most importantly, the land was extremely valuable. So even if the hospitals could no longer operate, they could also get the money back through the sale of land.
“Little Su, you must focus on Qi Jiahao in the acquisition of Ruixing.” Mr. Xue said in a deep voice. “He’s the current chairman of Ruixing Group.Although Vice-Premier Xiao has already given his instructions, some people won’t let go of their interest lightly. So you must plan it well after your merger. Don’t take it lightly.”
Su Tao nodded, “Thank you for your reminder. I will pay attention to the handover.”
Acquisition was risky. Not only was it impossible to make profits in a short time, they also had to be careful about any traps.
After all, the easiest way would be digging a hole and hiding some debts in the process of acquisition. But when those debts come up after the acquisition, it would be a huge mess.
Another way would be giving a high salary to the employees. But when the corporation was acquired by someone else, there would be a problem in the management.
Su Tao had a long chat with Mr. Xue and also listened to some suggestions given to him.
Although Mr. Xue had no experience in business operation, there were many similarities between officials and businessmen. So Mr. Xue was just reminding him of some key points to take note of.
Then again, they might also be from Vice-Premier Xiao through Mr. Xue as a middleman.
Su Tao needed to understand Vice-Premier Xiao’s true thoughts, which he could do through Mr. Xue.
Vice-Premier Xiao had great expectations for Ruixing Medical in the beginning, but he recently discovered the slack in their actual operation. Not only was it inefficient, but they also colluded with some state-owned hospitals in corruption. In addition, many companies also followed Ruixing Medical’s behavior, pushing the restructuring project on the verge of collapse.
This was the reason why Vice-Premier Xiao had to shuffle the cards again, trying to change the status quo within the deadline of the restructuring and sweep away the haze.
Su Tao carefully communicated with Mr. Xue. This guy was a veteran in the government system. So he could naturally tell that Su Tao was trying to get some information from him.
He naturally revealed anything he could to Su Tao and kept his lips tight on those he couldn’t. Some plans were still in the making process. So as a chess piece, the lesser Su Tao knows about it, the more reliable the plan would be.
Su Tao felt a little depressed. He realized that he had fallen into a huge net without him knowing. There was a possibility of him throwing himself into huge waves and getting crushed.
However, Su Tao was no longer afraid after he calmed down. Life was never easy. So why did he have to be afraid?
Moreover, this was a rare opportunity to develop TCM to add a block into his TCM empire. Just becoming a chess piece in the hands of a Vice-Premier was an opportunity that many people wanted.
Then again, Su Tao would never be willing to be a chess piece.
After hanging up the call with Mr. Xue, Su Tao carefully studied the Ruixing Group’s information. Mr. Xue had sent him complete information on the Ruixing Group, especially the management in detail.
As for Qi Jiahao, his life experience was legendary. He once held an important position in the State-owned Assets Supervision and Administration Commission more than 30 years ago. Then he gave up on being an official and went into business. By relying on his keen business sense, he steadily became a famous figure in the medical industry.
Ruixing Group used to be one of the largest medical corporations in China, acquiring many medical resources and was ranked among the top three in the domestic medical industry.
The medical industry was really profitable, with 17% of GDP spent in this field. So as long as you could make a small profit from it, you could easily become a billionaire. In hospitals or pharmacies, commonly used drugs came from their medicine factory with over twenty products. Their annual profit reached as high as ¥5,000,000,000.
Nowadays, there were many medicine representatives in the society. With a purse, they could run in hospitals all over the country with an annual income of more than ¥1,000,000.
But five or six years ago, the Ruixing Group’s investment started to decrease and they began to decline. Most of their funds were transferred to popular industries such as real estate and the internet. Although they had a diversified operation, it led to the stagnation of their medical industry.
However, Qi Jiahao wasn’t willing to give up on the medical industry so easily since that was where he made his profit. The acquisition was only to separate the acquisition of state-owned hospitals away. He would never give up on profitable business such as pharmaceuticals and distributions.
In fact, Qi Jiahao had already constructed a medical empire and his career development was of great guiding significance to Su Tao.
Unlike Su Tao, Qi Jiahao’s medical empire covered a wide range of areas. Not only TCM, but also synthetic medicines, biological medicines, natural medicines, API intermediates, nutraceuticals, and pharmaceutical equipment. While Su Tao was based on TCM.
After sorting it through, Su Tao started to become excited. Because he was about to make a formal contact with a great figure in the medical industry. This would also be a key step for him to step into China’s medical industry.
