Since they are reborn, they must be supported by the school beauties.

Chapter 264 Establishing a Brand Image
Chen Cheng first called Shen Zhou, explained the situation to him, and asked for his opinion.

Shen Zhou was straightforward and said directly to Chen Cheng, "Xiao Chen, I'll listen to you on this matter. Whatever you say, we'll do it. If it's confirmed that we'll refund them at the price of 90,000 yuan per quota, the money will be available once I clear out the goods."

Chen Cheng asked him, "How is the market for Banlangen (Isatis root) right now?"

"Soaring prices."

Shen Zhou said with a smile, "All the raw materials on the market have been snapped up. Most of the raw materials are in the hands of pharmaceutical companies, and a small amount has been hoarded by middlemen, who may want to drive up the price again."

Shen Zhou explained the current situation to Chen Cheng in detail.

The price of Banlangen (Isatis root) has skyrocketed, and in the terminal market, the price of Banlangen granules has increased several times.

The powder that originally cost five yuan a box has now been sold for thirty yuan or even more.

All public hospitals have sold out of Banlangen granules, and it is impossible to find a source of supply anywhere. Now the pharmaceutical companies' goods have been sold to retailers at a markup, and the retailers then resell them at several times the profit, making the entire industry chain very rich.

The entire pharmaceutical industry in the Central Plains region knows that Shenzhou's Lingzhou Pharmaceutical purchased a large quantity of Banlangen (Isatis root) before SARS. Recently, Shenzhou has been receiving calls daily from various competitors wanting to buy his goods at inflated prices, with markups already exceeding 100%.

Shen Zhou also said, "Xiao Chen, even Tianyun Pharmaceutical knows about this batch of Banlangen in my hands. They've been contacting me these past two days, wanting me to share some of the goods with them in consideration of our cooperative relationship. They even said that if I agree, the betting agreement can be voided."

Chen Cheng laughed and said, "With the market like this now, even if we don't give them the goods, the betting agreement will definitely be void."

"Correct."

Shen Zhou said with a smile, "The betting agreement is no longer in doubt. I also followed your instructions and bought back all the shares of those minority shareholders in advance. They are regretting it to death now. Thanks to you, I am now completely relieved!"

Chen Cheng said, "The performance-based agreement and the minority shareholders are all in the past. The most important thing now is how to take this opportunity to raise our profile. Uncle Shen, have all the raw materials been produced?"

Shen Zhou said, "We are still working overtime to increase production. Currently, 60% of the stockpiled raw materials have been processed into finished products, and the rest are still being produced."

Chen Cheng felt that the time was almost ripe, so he suggested that he start looking for ways to contact the provincial authorities and seize the time to reach a cooperation agreement.

After speaking with Shen Zhou on the phone, Chen Cheng then called Yan Ruoxuan's father, Yan Chengbin.

The Yan family of three was having dinner at home. Recently, rumors about SARS have caused widespread panic and anxiety, so Yan Chengbin and his wife have voluntarily started working from home and rarely go out.

Yan Chengbin was pleasantly surprised to receive Chen Cheng's call, saying, "Little Chen called me."

His wife, Chen Min, pressed further, "Xiao Chen? Chen Cheng?"

"Correct."

Yan Ruoxuan's ears twitched slightly, and she said, "Dad, answer it quickly, don't keep Chen Cheng waiting."

Yan Chengbin shook his head and chuckled bitterly before pressing the answer button and turning on the speakerphone.

Chen Cheng said on the other end of the phone, "Uncle Yan, have you been busy lately?"

"not busy."

Yan Chengbin said, "I haven't been going out much lately, I've been staying home. What about you? I heard from Xuanxuan that you went back to Jiangcheng a long time ago?"

"Yes, I'm back to take care of company matters."

Chen Cheng smiled and said, "Uncle Yan, there's something I'd like to discuss with you."

Yan Chengbin smiled and said, "Go ahead."

Chen Cheng then said, "That Ms. Qi from the Wencheng speculators called me today. They want to terminate the contract early. I wanted to ask what you think."

Then, Chen Cheng explained the conditions offered by the other party.

Yan Chengbin's reaction was similar to Shen Zhou's: "You initiated this project, and if it's done this way, there will be more than 30 million in profit. I have no objection. You can handle it as you see fit."

Chen Cheng smiled and said, "Then I'll agree to their terms. After Uncle Shen ships the goods and receives payment, I'll refund the money to them, and then we'll discuss the profits in detail."

When Yan Chengbin thought of the Banlangen (Isatis root), he asked him, "By the way, Xiao Chen, could you please tell President Shen that I'd like some Banlangen? I'd like about 10,000 to 20,000 boxes. If that's possible, I'll settle the payment with him at the normal market price, and he can pay me in advance."

Chen Cheng asked curiously, "Uncle Yan, what do you need so much Banlangen for?"

Yan Chengbin said, "Let's give it to the employees as a company benefit." "That's easy."

Chen Cheng said, "We plan to sell that batch of Banlangen to the province at a fair price. The ex-factory price should be only two or three yuan. If you need it, we'll send it to you first."
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Qi Duo quickly received a clear answer from Chen Cheng.

Surrendering and losing half is acceptable, and the other two partners have already agreed. Chen Cheng suggested that she make a trip to Jiangcheng, where everyone can sign the contract face-to-face, and everything will be settled. He will then repay the Wencheng speculators based on a unit price of 90,000 yuan.

Qi Duo breathed a sigh of relief. Although it was Chen Cheng who made more than 30 million from Wencheng speculators, she was still grateful to Chen Cheng for showing mercy.

If we continue to wait, most speculators in Wenzhou, including myself, will lose everything.

Shen Zhou didn't waste any time either. He first took out 20,000 boxes of Banlangen from his inventory and found a truck to deliver them to Yan Chengbin in southern Jiangsu.

Following Chen Cheng's instructions, he then took the initiative to contact the provincial authorities.

Shen Zhou was initially tempted by the potential profits of over 100 million yuan, but now, reflecting on Chen Cheng's plan, he began to understand its implications.

The price increase of Banlangen (Isatis root) is a collective action from raw material suppliers to manufacturers and distributors at all levels.

Raw material suppliers drive up material prices, increasing manufacturers' raw material costs. However, with inventory on hand, manufacturers further push up prices and increase profits. Distributors do the same, always feeling that this is the most sought-after product and can be sold even at a high price, so they also want to take this opportunity to make more money.

Each link in the chain earns more than before, but ultimately the consumer still bears the burden.

This has led to widespread public dissatisfaction with the soaring price of Banlangen (Isatis root), with numerous complaints against pharmacies received almost daily. The public not only dislikes pharmacies but also harbors resentment towards pharmaceutical companies.

However, nowadays all brands of Banlangen are selling at a premium, so the level of resentment is relatively even, and pharmaceutical companies don't seem to care.

Shen Zhou hadn't started shipping yet, but after seeing this situation and figuring out Chen Cheng's intentions, he knew how much reputation Lingzhou Pharmaceutical would gain if he handed over all these Banlangen granules to the province for unified allocation.

The provincial authorities were also surprised that at this time, a pharmaceutical company would come to them, wanting to supply Banlangen (Isatis root) to all public hospitals at a low price. When they learned that Shen Zhou had Banlangen finished products worth over 100 million yuan, they were overjoyed.

Shen Zhou's demands were few, just two: first, that the province coordinate the allocation of the top-tier hospitals and ensure that the hospitals pay the full amount within three days of signing the contract; and second, that Lingzhou Pharmaceutical forgo so much profit in the hope that the province would give some positive coverage.

The requirement to pay the full amount within three days is not unreasonable, and the desire for positive media coverage is understandable.

This is exactly the time when a positive example of a company is needed. Taking this opportunity to promote Lingzhou Pharmaceutical can not only help Lingzhou Pharmaceutical increase its brand awareness, but also serve as a warning to those companies and individuals who are taking advantage of the situation to raise prices.

Therefore, the province quickly decided to take the lead in signing an agreement with Shenzhou for affordable supply as soon as possible, and to invite major media outlets to attend the signing ceremony.

The signing ceremony was scheduled for two days later. The province had arranged the venue and invited many media outlets to attend.

Shen Luning invited Chen Cheng, as an employee of Lingzhou Pharmaceutical, to witness the signing ceremony, and Chen Cheng readily agreed.

On the day of the signing, in addition to several high-ranking officials from the province, many heads of top-tier hospitals also came to the scene.

Reporters from multiple media outlets were invited to witness and document the entire signing process of Shen Zhou.

Since the panic spread, the prices of related emergency supplies have been skyrocketing. Lingzhou Pharmaceutical is the first company to supply scarce resources at affordable prices.

The television station quickly broadcast news about the signing ceremony. When the public learned that Lingzhou Pharmaceutical had supplied tens of millions of boxes of Banlangen granules to several top-tier hospitals across the province for less than three yuan, everyone was shocked. If this batch of Banlangen had been priced at a factory price of ten or twenty yuan, there would have been no need to actively seek out buyers; instead, a large number of buyers would have come with cash to pick up the goods.

After deducting all taxes and fees, Shen Zhou's net after-tax personal income is at least two or three hundred million.

But he didn't raise the price at all, and directly sold all that stock to top-tier hospitals at the fair price. The top-tier hospitals then prescribed the drugs to patients as needed. He's practically a living bodhisattva in this day and age.

The media quickly published extensive reports on the matter, and it became a hot topic in Jiangcheng. Everyone was worried that Shen Zhou was deliberately creating hype and that the actual delivery would be much less than advertised.

However, the day after the signing ceremony, as major hospitals paid for their goods according to their quotas, Lingzhou Pharmaceutical immediately began its first batch of supplies, ensuring that many top-tier hospitals in Jiangcheng and even the province had a sufficient supply of Banlangen.

The supply of tens of millions of boxes of Banlangen (Isatis root) has attracted the attention of CCTV. Recently, they have reported on panic buying and price gouging, calling on various regions to take action. Although there have been many successful cases of crackdown, there has been little positive news.

Suddenly, news broke that Lingzhou Pharmaceutical was supplying large quantities of Banlangen (Isatis root) at a low price. CCTV immediately sought confirmation from the provincial authorities. After receiving a positive response, CCTV reported on the matter in its 30-minute news program that day. CCTV also sent a reporter to Jiangcheng to interview Shen Zhou and conduct a follow-up report.

In no time, the name of Lingzhou Pharmaceuticals spread throughout the province and even the whole country.

If this trend continues, even if Lingzhou is not able to become a top-tier domestic pharmaceutical company, it can at least be ranked as a second-tier company. Its brand image has been established and is becoming more and more stable!

(End of this chapter)