Road to Revival

That morning, just before the end of the workday, Gu Meijun, accompanied by Branch Manager Lü of the Municipal Industrial and Commercial Bank, suddenly visited Hongxing. Tao Tang was reviewing the May funding needs plan submitted by Han Zhiyong when Han Zhiyong brought Gu and Lü over. "President Tao, look who's here!"

"Oh, what a rare guest!" Tao Tang hurriedly got up to greet him.

"Very diligent. Still so focused even though it's almost time to leave work? This is Branch Manager Lu from the City Bank. He's been wanting to visit you, the big boss, for a while now. Since I happened to be back today, he dragged me over... I hope I haven't bothered you?"

"We're more than happy to welcome you, there's no question of disturbing you." Tao Tang shook hands warmly with President Lü, and Li Zhibin promptly brought over tea.

Banks cannot be neglected, especially ICBC, where Red Star has loans of over 400 million yuan.

Looking at his watch, Tao Tang instructed Li Zhibin to arrange a banquet at the small bank, and said to Gu Meijun and Vice President Lü, "It's getting late, let's eat and chat at the same time."

"Okay, that's perfect. I've been wanting to come see you for a while now. Oh, why don't you invite Lü Qi along?" Gu Meijun said.

"No need. Company rules prohibit drinking alcohol at lunchtime. It's not appropriate to just invite Lü Qi; ​​she's not the only one from our class working at Hongxing. Besides, it's not convenient to discuss business."

When the topic turned to serious matters, Gu Meijun stopped insisting.

Tao Tang understood Gu Meijun's purpose, but changing a company's basic account wasn't a simple matter. So, after arriving at the private room at Xiao Zhao, Tao Tang said to Gu Meijun, "I understand your purpose. I won't beat around the bush with you. Changing a basic account requires a lot of work. The procedures for the client aren't easy, and we also need to make arrangements in Yanjing. If it doesn't affect the overall situation, I personally have no objections. ICBC has provided significant support to Hongxing over the years; President Han has mentioned this to me more than once."

"Old Lu explained the situation to me. Don't worry about the Construction Bank; they won't impose any restrictions on you. I'll lend you whatever you need! I already consulted with the bank before I came," Gu Meijun said confidently. "The bank has special policies for companies like Red Star."

Tao Tang glanced at Han Zhiyong, seemingly blaming him for remaining silent, "Old classmate, you have your difficulties, and I have mine. We can't offend an old friend for the sake of a new one."

Tao Tang's impression of Gu Meijun was rather ordinary, and they weren't particularly close. Of his high school classmates, only Sun Dunquan was a true friend; Lü Qi was merely a distant dream. Having worked at Shengdong for over three years, Tao Tang had a fairly good understanding of the relationship between banks and corporations; in a sense, banks were more reliant on large state-owned enterprises. This was especially true of the corporate department headed by Gu Meijun, who must have been under immense pressure to meet performance targets. Securing a major client like Hongxing would increase annual revenue by tens of billions, bringing substantial profits.

Gu Meijun, however, was determined to succeed. "Didn't Hongyou tell you? Lao Tao, I'm indeed in trouble. Let's not mince words, you have to help me with this. Lao Lü is right here. Whatever the Construction Bank can give you, the Industrial and Commercial Bank of China will give you as well. Don't worry." Gu Meijun's words were a double entendre.

"President Han, I think we should keep this quiet for now. President Gu is a leader at the provincial bank and also my classmate. We should give President Gu face. You know the situation at the bank better than I do. Please consider this and give President Gu and President Lü a responsible answer after we discuss it."

"Okay, I'll do as you instruct," Han Zhiyong readily agreed. Previously, ICBC had been working on him, on the condition of increasing working capital loans by 1.5-2 million yuan. Given the extremely difficult operating situation at the time, Song Yue even organized a small meeting to discuss the matter in order to alleviate the financial pressure, but ultimately no decision was made, due to Li Luo's opposition. In addition, CCB, the bank where Hongxing had its account, intensified its efforts to persuade Hongxing, which put Han Zhiyong in a difficult position. Subsequently, Yang Wenhuan and Song Yue encountered consecutive problems, and the matter was shelved.

Business matters were settled, and the matter was dropped at the dinner table. Gu Meijun insisted on having a few drinks, and Tao Tang couldn't easily insist on following the rules. The rule against drinking at lunchtime only applied to subordinates; no one could control company leaders. When guests like Gu Meijun and President Lü came, no one would object to having a few drinks with them.

During the meal, Gu Meijun learned from Han Zhiyong that Tao Tang's wife had passed away several years ago. She was shocked. "Oh, Tao Tang, you kept it a secret from Tang Yikun last time."

Tao Tang was somewhat dissatisfied with Han Zhiyong, but he didn't want to show it. "It's not like this is anything good. Am I crazy? Why would I announce it everywhere?"

"It's been several years. It's time to settle down. Don't worry, I'll take care of it. I'll definitely find you someone!" She glanced at President Lü, "Someone like President Tao, wouldn't you call him a diamond bachelor? I see there are quite a few pretty girls in your bank."

"That's true. I'm just afraid that President Tao's standards are too high," President Lü said with a smile.

"Please, let's not talk about this anymore, shall we?" Tao Tang immediately changed the subject.

Because the topic had become somewhat heavy, they drank far less alcohol. Tao Tang emphasized that he had an important meeting in the afternoon, so Gu Meijun didn't insist. When they said goodbye after the meal, she pulled Tao Tang aside and slipped a bank card into his hand.

Tao Tang casually slipped the card into Gu Meijun's shirt pocket. "Squad Leader Gu, I'll take that matter to heart. Since we have a financial balancing meeting this afternoon, I won't keep you any longer. If you want to see some old friends from the factory, I'll have Lü Qi accompany you."

"No need, I have to rush back to Beiyang to report." In front of Han Zhiyong, Gu Meijun was also somewhat reserved. "Goodbye, you're all alone, take care. Be sure to call me when you come to Beiyang."

"must."

"This cigarettes and alcohol is a small token of Director Lü's appreciation. You have to keep it, or you'll be disrespecting me." She took an orange paper bag with the Pingquan branch's logo from Director Lü's driver and handed it to Tao Tang. Han Zhiyong, of course, received the same gift.

This time, Tao Tang did not refuse and accepted it.

The afternoon's financial balancing meeting started on time. The meeting was larger than Tao Tang had expected. The "input" of funds was from the marketing department alone, but the "output" was much larger, with a huge crowd sitting there. Because there were so many attendees, the meeting room in Building 3 couldn't accommodate everyone, so it was temporarily moved to Building 2, where the marketing department was located.

All the company leaders who were at home attended. There wasn't originally any Party or mass work involved, but Tao Tang had everyone notified. Seeing so many departments spending money, Li Luo, sitting to Tao Tang's left, couldn't help but feel proud and suddenly felt a surge of courage: "Can they manage without me?"

The meeting was supposed to be chaired by Han Zhiyong, but Tao Tang wanted to explain his own rules first.

In fact, this was Tao Tang's first official appearance since the cadre meeting after taking office; several meetings had been held before, but on a very small scale. Zhao Qingmin noticed that almost all the units attending today were their top administrative leaders, and they were all in high spirits and focused.

Tao Tang said, "Comrades, today's meeting is the May fund balancing meeting. Because I arranged it late and didn't solicit opinions from more leaders and departments, it may be a bit rushed, but that's okay. If any projects are missed, you can submit a written report to the finance department on the first day back to work after the holiday. I discussed it with General Manager Han, and we will hold a fund balancing meeting at least once a month from now on, around the 25th of the month. By then, the situation for the following month will generally be clearer, which is more conducive to ensuring the budget execution rate. General Manager Han is the convener of this meeting. Since this is the first time, I'll say a few more words."

"Why reinstate the financial balancing committee system? Because it's indispensable. Let alone a company like ours with billions in revenue, even companies ten or a hundred times smaller need budgeting. Otherwise, it's just chaos. So I was surprised to learn that the company hadn't done financial budgeting for a long time; this is absolutely unacceptable. Some strange things I've encountered during my time at the factory have also confirmed the necessity of the financial balancing committee. They even need my approval for a few thousand yuan in notes—isn't that absurd!"

"The significance of the fund balancing meeting is to improve the fund budget. Its purpose is threefold: First, to improve the efficiency of fund utilization, ensuring money is used effectively. Especially given our current operational difficulties, it's crucial to rationally control the direction and intensity of fund usage. Second, to increase the transparency of fund utilization. Everyone present is a key company executive; how much money is received, where it's spent, and how much was spent should all be clear to everyone. This is more beneficial than harmful, at least reducing mutual resentment, especially towards the finance department. Third, to limit the power of leadership. Yes, that's exactly what I think. If the fund balancing meeting is well-organized, my power will be constrained first; projects approved at the meeting won't need my approval. The same applies to other leaders. Only by..." Only matters requiring approval will improve work efficiency… However, this requires each department to accurately calculate its own work, and the budget execution rate should be included in the performance evaluation system. Please have the Development and Planning Department oversee this. We'll pilot it for one month in May, and officially include it in the evaluation system starting in June. Comrades, how about changing the current method of fund usage? I think it's good. It will free up the company leaders' energy to focus on more important work… Also, it can reduce the risk of corruption through institutional reforms! Therefore, this meeting needs to establish this system. The relevant regulations will be drafted or reiterated by the Finance Department, reviewed by the Development and Planning Department, and then issued to the entire factory. Okay, that concludes my opening remarks. Now, the Marketing Department will report on the May payment collection plan.

Liu Shulin cleared his throat. "Leaders, due to the time constraints, there may be some errors in our proposed repayment plan, but they won't be significant..." He subconsciously glanced at Tao Tang, noticing him writing something in his notebook. He then began reporting on the repayment plans for each major market, starting with the gearbox market. "...That's the situation. The cumulative repayment is approximately 3.75 million."

Tao Tang glanced at Li Luo.

Li Luo nodded. "I'd like to add a couple of points. First, regarding the auto parts sector, both the passenger car and heavy truck markets we supply are declining, and our partners are facing difficulties, making payments less reliable. Assistant Liu's figures are a bit conservative; the marketing department needs to intensify its efforts to ensure payments are collected according to contracts, which should result in an increase of 1900 million. Second, the gearbox sector is similar. If contracts are strictly adhered to, there should be an increase of around 2500 million. My suggestion is to take a more conservative approach; the marketing department should push itself to achieve 4 million in payments by May. Mr. Tao, that's all I wanted to add."

"Alright, the marketing department has set a target of 4 million. Now let's hear about the projects that will cost money. Mr. Han, I think it's best if you chair the meeting below. I suggest you start with the essential expenses, such as salaries and energy, and then move on to production and others." Tao Tang effectively chaired the meeting.

"Alright, then please have the Development and Planning Department and the Human Resources Department report on salaries and salary-related expenses first. Let's go through them one by one." Han Zhiyong glanced at Liu Xinjun and Pan Chenggui sitting opposite him.

"Let me first report the results of the performance evaluation... The total payable salary is 6889 million. This does not include salary-related expenses." For some reason, Liu Xinjun did not bring Lü Qi with him. Tao Tang had just noticed that Lü Qi, who was in charge of the performance evaluation, was not attending the meeting.

Pan Chenggui continued Liu Xinjun's report, "Because of the agreement reached with the Municipal Bureau to pay social security and medical insurance fees quarterly, May was not originally a payment month, but due to tight funds in April, only two-thirds of the first quarter's fees were paid, leaving a one-month arrears of 990 million yuan..."

Tao Tang recorded these two numbers.

"Energy consumption?" Han Zhiyong continued to preside over the meeting.

Energy consumption for production is the responsibility of the power company, while energy consumption for residential use is managed by the property management company. The total cost for both is 1420 million yuan.

"Wait, why are we including household electricity and gas usage in the calculations?" Tao Tang interrupted the report. "That doesn't make sense, does it?"

"That's right. The fees are paid by the company on behalf of the property management company, and the money is transferred to the company's account after the property management company collects the fees," Li Jianguo reported.

"That's not right." Tao Tang closed his notebook. "What percentage of fees can the property management company collect?"

"It's about 85%..." Wang Jingfu said, sounding somewhat unsure.

"Around? You just said your plot was worth 4.8 million, including natural gas. According to what you said, wouldn't the company be losing 600,000 to 700,000 every month? Assistant Liu, how does the Development and Planning Department assess the property management company's energy management?"

"I can't remember... I'll have to check..."

This question stumped Liu Xinjun. Sensing that Lü Qi was highly regarded by Tao Tang, Liu Xinjun had come to the meeting alone today, leaving Lü Qi behind, but things still went wrong.

"Call Lü Qi here." Tao Tang frowned. "Let's continue. I'll discuss our views on energy management in the residential area later."

Next are the finance department's financial expenses (bank interest) and taxes. The bank interest payment this month is 3200 million yuan. Han Zhiyong explained that this was due to a 1.8 million yuan loan rollover. The total taxes will also be around 3000 million yuan, which Li Jianguo explained is the minimum.

Next was the research funding. Li Meng began to read out the list he had compiled, but Han Zhiyong interrupted him, "Don't read it out item by item. I've already looked at the projects. Just tell President Tao the total amount."

The research budget is not large, only 1100 million.

1.7 million has been spent so far.

"Secretary An, it's your turn." It was finally time for procurement, the major expense.

"General Manager Tao, distinguished leaders," said An Zhongliang, the acting director of the purchasing department, who appeared somewhat nervous, "According to the monthly work order from the production department, the funds required for purchasing main materials in May are 2.1 million, and for auxiliary materials, 0.95 million, totaling 3.05 million. Shall we elaborate?"

"May I ask, what is your plan based on in terms of output value?"

"4.95 million."

"Mr. Ma, weren't we supposed to adjust the plans in May?"

"Yes, the purchasing department has not yet been notified of the additional amount."

Tao Tang was somewhat dissatisfied. "Why is it so slow? The increased products are mainly for the Donghu market, right? Director An, could you estimate how much additional funding is needed to add 100 million yuan worth of products to Donghu?"

"At least 7000 million." An Zhongliang calculated for a while, "President Tao, it won't be less than 7000 million. The marginal interest rate in the Donghu market is relatively low."

"This is a bit troublesome... Alright, let's continue." Tao Tang waved his hand.

Jiang Yansheng's outsourcing costs for production, including expenses for cutting tools, fixtures, and measuring instruments, will be at least 100 million yuan. Office expenses, debts paid through legal proceedings, freight, quality compensation such as warranty, etc., will add up to tens of millions of yuan... The attendees looked at Tao Tang, wondering how he would handle this 150 million yuan hole.