The Super Rich: Start from when the family business is about to go bankrupt!

Chapter 3 WPG0003: The fateful decision begins!
Li Wenya looked at the silent An Wuyang, a hint of helplessness flashed across her eyes, but she continued, "In fact, the situation of the group is far worse than you know, but we have never told you."

"For example, the group's operating conditions have not been very good in the past three years. Sales have been declining year by year, and net profit has declined even more. If we take into account R&D investment, the group has actually been suffering a net loss since the year before last." Li Wenya added on the worse situation.

So the family business that once had an annual profit of at least 5000 million is actually on the verge of collapse?
An Wuyang felt a little dazed.

"So our family went bankrupt?" An Wuyang looked at his mother.

"That depends on what your father thinks." Li Wenya looked at An Huchun.

"Although Wugengtian Pharmaceutical Group is our family business and your father is the legal representative, it is also a limited liability company, and its registered capital is only 100 million Xia Guoyuan." Li Wenya added.

An Wuyang immediately understood what Li Wenya meant. If their family cut ties with the Wugengtian Pharmaceutical Group and carried out bankruptcy liquidation operations on the Wugengtian Pharmaceutical Group, then the problems arising from the Wugengtian Pharmaceutical Group would not affect their family.

In fact, this is also the choice of most 'limited liability companies', after all, it is just limited liability!
An Huchun whispered, "Wu Geng Tian is the hard work of your grandfather, and also the hard work of our An family. Our An family has invested too much in it. I..."

"I think." An Huchun didn't know how to start.

An Wuyang took the initiative to ask, "Mom, if the group does not choose bankruptcy liquidation, what will be the result?"

"The result is pretty bad." Li Wenya concluded first.

"For the group, the first thing to do is to lay off a large number of employees, stop production at the new plant, and sell the new plant to obtain cash flow," Li Wenya explained.

Li Wenya added, "In fact, the difficulties the group is facing now are not just because your father invested a lot of money in research and development."

"The most fundamental reason is that the group lacks core technological competitiveness." Li Wenya pointed out the core problem.

"There is also the reason for the failure in the centralized procurement competition for medicines. On the 2nd of this month, the fifth centralized procurement of pharmaceutical companies was officially launched. This round of centralized procurement included 62 kinds of drugs, and our group bid for the centralized procurement qualification of [Esomeprazole Sodium for Injection]." Li Wenya explained in detail.

"In the bidding for the centralized procurement qualification of [Esomeprazole Sodium for Injection], we lost to Caimei Pharmaceutical." Li Wenya sighed.

"Cai Mei Pharmaceutical, our old rival?" An Wuyang frowned.

Caimei Pharmaceutical is also Shengqing’s pharmaceutical company, and it is an old rival of Wugengtian Pharmaceutical Group.

"Yeah." Li Wenya added somewhat helplessly, "The other party directly quoted 10 yuan for 40 bottles of 44.3mg standard [Esomeprazole Sodium for Injection], and we quoted 59.8 yuan."

"Are they crazy?" An Wuyang complained.

Because under normal circumstances, a pack of 10 bottles of 40 mg standard [Esomeprazole Sodium for Injection] costs more than 100 yuan, and in some areas it can even be sold at a high price of 200 yuan.

But Caimei Pharmaceutical actually lowered its collective purchase price to 44.3 yuan.
Although the essential purpose of the court's organization of centralized procurement of medicines is to obtain lower drug purchase prices, thereby benefiting more ordinary people, for pharmaceutical companies, such ultra-low bids mean loss of profits.

Perhaps some people think that pharmaceutical companies are making money in an unscrupulous way and that their profits should be reduced.

However, the problem is not that simple.

Taking Wugengtian Pharmaceutical Group and Caimei Pharmaceutical Company as examples, Wugengtian Pharmaceutical Group is a research and development-based pharmaceutical company, while Caimei Pharmaceutical Company is a generic pharmaceutical company.

For Caimei Pharmaceutical Company, they have no R&D investment and only need to imitate drugs whose patents have expired. The overall cost will be quite low, so there is more room for bargaining.

Wugengtian Pharmaceutical Group is different. It invests a lot of money every year in the research and development of new drugs.

Even though Wugengtian Pharmaceutical Group has not developed any results, it has invested a lot of money in research and development. When the comprehensive profit of Wugengtian Pharmaceutical Group decreases, it will either transform into a generic pharmaceutical company like Caimei Pharmaceutical Company, or go bankrupt and liquidate directly, or reduce R&D investment to survive.

Are these results all about bad money driving out good?

"Although the results of the fifth round of centralized medical procurement will not be announced until three days later, we have already obtained the results in advance. It should be said that all companies have obtained the results in advance." Li Wenya sighed again.

"This result is the last straw that breaks the camel's back for our group. It has completely destroyed our group in terms of marginal cost and human resource cost." Li Wenya said with regret.

"Given that the group has failed in multiple pharmaceutical procurements, and your father wants to preserve the group, according to my preliminary estimate, in addition to selling the property rights of the new factory, we will probably lose most of our family assets," Li Wenya added.

"Also, your father once promised you that he would buy you a sports car after you took the college entrance examination, but now he has no choice but to break his promise." Li Wenya added.

The family business is about to go bankrupt, why buy a sports car?
An Huchun continued, "Now we are faced with two choices."

"First, we will carry out bankruptcy liquidation of the group. Through this operation, we can retain most of the family property. Although you lose the group, you will live a worry-free life for the rest of your life." An Huchun explained.

The first option is obviously more beneficial to An Wuyang.

"Secondly, it will be very difficult for us to save the group. We may even be heavily in debt in the end." An Huchun deliberately made the problem sound more serious.

"I have discussed this with your mother, and this time the choice is up to you." An Huchun signaled An Wuyang to make the final decision.

……

'Ding! '

'The fateful decision begins!'

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'Plan A: Choose Wugengtian Pharmaceutical Group for bankruptcy liquidation.'

'Reward A: The system will assist the host in opening up a new business territory.'

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'Plan B: Cooperate with An Huchun to save the family business Wu Geng Tian Pharmaceutical Group.'

'Reward B: You will receive a comprehensive reward based on the specific rescue plan and the execution results.'

……

The Happy Life System suddenly sent a message prompt in An Wuyang's mind. An Wuyang pretended to think, but in fact he was checking the information presented by the Happy Life System in his mind.

"Happy Life System." An Wuyang sighed secretly.

Originally I thought it was just a useless gadget, but now that the family business that earns half a billion a year has encountered changes, this happy life system has begun to become important.

It seems that he has to work hard!

Otherwise, how can we turn the tide and save the collapsing building?
(End of this chapter)