Rebirth 1977 Great Era

Chapter 825 I Didn't Commit a Crime! (Bonus Chapter for Monthly Tickets: 3K Chapters)

"Thank you all for trusting me so much." Fang Yan cupped his hands in a fist salute to the crowd.

In fact, Fang Yan could basically accept Chu Qiaonan's arrangement; he only needed to modify some minor details before his plan could be implemented.

However, some things in the contract will need to be changed at that time.

We cannot let people think that we have fully adopted his plan.

It's already quite clear that people still have some resistance to Chu Qiaonan.

The main reason is that everyone has only known him for a short time. Although they have heard him talk about half of the Thirteen Ghost Needles, the sense of unfamiliarity still cannot be eliminated. He is not the kind of person with great affability and personal charm.

Moreover, Chu Qiaonan himself knew this, so when doing things, he took the initiative to stand up and be the villain.

It's about using one's own strengths to reinforce stereotypes.

He immediately pledged his allegiance to Fang Yan.

No one else noticed it; only Lao Hu and Fang Yan did.

It's just that there are many people now, and everyone understands the situation without saying a word.

After the discussion was over, everyone ate for a while longer and then they were all pretty full.

There was still a lot of food left, so the locals told those who were going home to pack it up and take it with them. The students from other places could have free time in the afternoon and come back for dinner in the evening.

Don't underestimate these leftovers; compared to what you get at school, they're a real treat.

Although everyone brought some gifts, the food served at Fangyan Lunch was definitely all the best.

When they left, they even packed up the contents of the pots in the kitchen for anyone who wanted to.

They even considered that students from other places had nowhere to cook, so they told them to come back for another meal in the evening. Seeing that there were quite a few people packing up in the kitchen, Fang Yan would most likely have to cook new dishes again in the evening.

They truly felt the warmth of home at Fangyan's house.

Somewhat surprisingly, Hossué and his fellow foreigners were heading back to their embassy in the afternoon, and they also went to the kitchen to pack some things to take with them. Luckily, Fang Yan had plenty of lunchboxes at home, otherwise they really wouldn't have had anything to pack.

These people shouldn't lack food, but they wanted to take the food back with them because the dishes made in their local dialect were so delicious.

However, it must be said that the food prepared in the local dialect is indeed of a very high standard.

……

After everyone had packed their food, they gradually left Fangyan's house.

They're all young people, and they finally have a weekend off. They either go home or plan to go out for a stroll.

Most of them have left, only Old Cheng and Old Hu are still here.

With fewer people around, things become easier to say.

Several people entered the study.

Old Hu first stated his position:
"I think Chu Qiaonan's suggestion was good."

"Fang Yan originally held 30% of the shares. Although a portion was allocated to the Huaxia Traditional Chinese Medicine Research Institute, 5% was reserved for future shareholding increases. I also have 2% reserved for employee shares, which adds up to 7% (see Chapter 765). Without altering our original shares, we will convert this 7% into B shares and let them share in it."

He analyzed:

"There are actually quite a few advantages to doing this, I've summarized them..."

As he spoke, he counted on his fingers:

"First, it conforms to the policy framework: relying on the collective ownership shell of the research institute under the Ministry of Health is consistent with the positioning of scientific research cooperation."

"Second, there is no dilution of control: the AB share structure is achieved through an agreement, I still retain 51% of the decision-making power, and Fang Yan retains the veto power."

"Third, incentive compatibility: the original 2% allocated to 'employees' is converted into equity in the technology of classmates, which is more in line with actual contributions."

"Fourth, the risks are controllable: After the 5% of shares reserved by the dialect are converted into B shares, the technical reliability can still be maintained through authoritative endorsement."

Fang Yan said to Lao Hu:

"However, a supplementary agreement still needs to be signed, which will distinguish between the original cadres' family members' 8% and the newly added B shares 7% to avoid future equity disputes."

"Furthermore, following Chu Qiaonan's suggestion, we added a non-compete clause to prevent the secret formula from leaking out. In addition, the foreign exchange clause is linked: B-share dividends must be linked to the previous mechanism of 'earning 500,000 foreign exchange for an additional 1% of shares,' since I have given them the 5% of space I could have increased my holdings."

Old Hu nodded:
"Yes, the existing assets remain unchanged, but there are incentives for new additions, so we still retain control."

At this moment, Old Cheng suddenly said:
"and many more!"

"You said you reserved eight percent for the families of cadres?"

Hu Daohu was very clever; upon hearing Elder Cheng's words, he immediately replied:
"Mr. Cheng, are you asking whether this counts as accepting a bribe?"

Old Cheng glared:

"Isn't this bribery and accepting bribes?"

Hu Daohu shook his head and said:

"Of course not. What Fang Yan just said was just a verbal expression, but in reality, we don't operate that simply. Let me explain..."

“Our company is actually collectively owned. It is registered as a ‘Labor Service Company’ under the Ministry of Health’s research institute. The shares held by the family members of cadres belong to the distribution of collective assets and do not involve the transfer of personal private property.”

"The contract stipulates that 8% of the shares will be used for the 'Special Fund for the Inheritance and Development of Traditional Chinese Medicine,' which is nominally a consideration for subsidizing the families of cadres to participate in scientific research cooperation such as technical guidance and collection of secret prescriptions."

“Through the ‘Collective Welfare Committee’ under the research institute, 8% of the shares are held on behalf of the family members. The family members only enjoy the right to dividends and do not have ownership. The shares are converted into technical service remuneration. The family members of the cadres sign ‘Traditional Chinese Medicine Technical Consultation Contracts’ as ‘folk medical consultants’ and receive dividends according to their contribution to the secret prescriptions.”

Old Cheng was completely bewildered by Hu Daohu. He asked in astonishment, "You...you...you really aren't breaking the law?"

"Oh, of course it's not illegal," Old Hu said.

"Actually, I'm not the first to do this. The Shanghai Pharmaceutical Industry Research Institute was approved to produce under the name of 'Three Wastes Treatment Project.' Similarly, I can also explain the 8% shareholding as 'Special Fund for the Protection of Traditional Chinese Medicine Intangible Cultural Heritage,' using cultural policies to circumvent economic issues."

After saying that, he emphasized again:
"And most importantly, this is linked to foreign exchange earnings, which is the biggest firewall against policy risks."

"..." Old Cheng was speechless. Hearing this, he understood. As long as it could earn foreign exchange for the country, they wouldn't care how it was done. Moreover, Hu Daohu's methods were learned from others. He was just copying what others were doing.

Fang Yan also understood that under the policy flexibility of 1978, the 8% of cadres' family members' shares could be legalized through a three-pronged mechanism: the shell of collective ownership, the conversion of technical service fees, and the binding of foreign exchange revenue.

In essence, the core principle is to transform the transfer of benefits into compliance costs for collective scientific research cooperation, and to achieve risk isolation through the cross-coverage of policies in multiple fields such as foreign affairs, culture, and health.

This is what it means to exploit a loophole.

Having figured this out, the next step is to contact Director Liao to arrange for A/B shares.

This thing still needs to be legal and compliant, and you need someone to help you get it done.

There's no need to worry about the dialect; just wait for Lao Hu to sort things out and bring the contract back.

He and Master Cheng were in the study, studying the recipes that everyone had left behind.

These prescriptions and their dialects were categorized into three types: the first type, which is highly universal and low-cost; the second type, which is specific to a particular field and has clear therapeutic effects; and the third type, which are common secret prescriptions.

Then, the first and second types were taken out first, and their sources were marked.

Next, we planned to have Elder Cheng take it back and have the Huaxia Academy of Traditional Chinese Medicine produce it first to check its efficacy.

If it meets the standards, you can find suppliers or put it on the market after it is built in the factory.

After finishing this matter, Fang Yan then discussed with Old Cheng the first six needles of Chu Qiaonan's Thirteen Ghost Needles.

He has a good memory for dialects and has written down all the details. Now he has written down the whole story on paper.

When Old Cheng saw what was written in dialect, he said to him:
"It seems you've already learned it."

Fang Yan smiled and said to Old Cheng:
"It's all thanks to you for giving me such a good foundation, otherwise I wouldn't have been able to learn so quickly."

"Flattery." Old Cheng chuckled as he teased Fang Yan, though he knew the kid was just flattering him, he was still pleased to hear it.

Mr. Cheng continued:

"This Chu Qiaonan is very smart, but his comprehension and memory are not as good as yours. However, he has his own self-awareness. He is willing to come out and play the bad guy today to show you his attitude. Considering his family situation, I think he really wants to join us. However, he is arrogant, and no one else can control him. In the future, no one else can be used except you."

"You can use him; if used well, he can be a great help."

“In situations like today, you can just push him out from now on. He only wants to please you; he doesn’t care about anyone else. You’re perfect for being the bad guy.”

Fang Yan nodded, then respectfully cupped his hands in a respectful gesture:
"You're right, I've written it down."

The old man smiled and waved his hand, saying to him:
"Actually, even if I didn't say it, you're quick-witted enough to understand. I was just reminding you."

"Just consider it me, an old man, being nosy."

Fang Yan laughed along with him:
“I have always regarded you as my mentor. Without your guidance, I wouldn’t be where I am today.”

Old Cheng said happily:
"You little rascal, you're really not going to stop now that I'm calling you a bootlicker. Don't think I'm so easy to fool, that I'll fall for your tricks!"

After he finished speaking, loud laughter came from the study.

……

When Lao Hu returned from the Overseas Chinese Affairs Office at 4:30 p.m., the contract was already in his hand.

Fang Yan looked at the instructions inside. Although the wording was slightly different, the core mechanism was the same. In order to show how good Fang Yan was to his brothers, the previous 0.1% was increased to 1%, a direct increase of ten times.

Of course, the ratio of B shares from 1 to 10 was also divided into a ratio of 1 to 15.

The contract was divided into many parts, and most people's contracts were the same.

Only Chu Qiaonan's contract was different; he received a larger share than the others.

Moreover, once the Swiss line is completed, it will be considered a resource investment.

Then, around 5:30 pm, all the students who were outside returned.

Lao Fan, Du Heng, Yan Yifan, Cheng Baogui, and of course Chu Qiaonan.

They were all from out of town. Although Chu Qiaonan had a home in the area, he lived alone. Moreover, he came back mainly to confirm Fang Yan's contract.

He also brought a book for Fang Yan.

A complete copy of "Thirteen Needles of Ghost Gate" handwritten by his master, Zhou Zuoyu.

Besides the things we had before, there were also some Taoist rituals inside.

This can be considered one of the pledges he made to pledge his allegiance.

PS: First of all, thank you Curry for the 100 yuan reward.

I've gained another 200 monthly passes, so I owe you 4000 more words. After finishing this chapter, I'll still owe you 81000 words.

There will be more this afternoon.

(End of this chapter)