Chapter 57: Unexpected Situation

To calculate how much of the shares Chen Geng could hold in China Resources Industry, it was necessary to carefully calculate the company's current assets. To clearly understand the total assets of China Resources Industry, Chen Geng and the military enterprise reform team walked through every inch of the Third Armament Repair Factory, every building, and recorded every machine and piece of equipment. However, as he looked at the recorded data, Guo Haijun's frown deepened. He never expected that China Resources Industry, which had generated tens of thousands of net profits last month, would be so "clean." Yes, just clean! Apart from being clean, he didn't know how else to describe it:

As a labor service company under the Third Armament Repair Factory of the East China Military Region, China Resources Industry did not have its own production and construction land; the factory buildings were rented from the Third Armament Repair Factory.

The production equipment required for the car modification operations of China Resources Industry was also rented from the parent factory, meaning that China Resources Industry itself had no production equipment.

China Resources Industry had only five offices, and even the office furniture inside was rented from the parent factory.

All these rental activities were formalized with official rental agreements, specifying the rental period and rent clearly. However, this raised a problem: how should the assets of China Resources Industry be calculated? It was essentially just a shell company!

If assets had to be calculated, the only significant asset might be the batch of furniture production machinery that had just been ordered but not yet delivered by the manufacturer. However, the total value of this machinery was only about 70,000 yuan. Since Chen Geng took over China Resources Industry Development Co., Ltd., he had contributed 20,000 yuan in profit to the Third Armament Repair Factory of the East China Military Region through his office furniture design and the 212 Jeep comfort modification plan, while also solving the employment problem for the factory's unemployed youth.

Given this, how should the fixed assets of China Resources Industry Development Co., Ltd. be calculated? How should Chen Geng's shares and the value of his technology be calculated?

Before coming, Guo Haijun thought this would be a simple matter, but now, he was in a terrible headache.

Not only was Guo Haijun in a headache, but the entire military enterprise reform team was also in a headache. No one expected the situation with China Resources Industry to be so complicated.

Peng Guangming, glancing at Guo Haijun's reaction, suggested, "Comrade Leader, we've seen enough. Shall we go to the meeting room?"

The team from the military enterprise reform group, with heavy hearts, headed towards the factory's meeting room.

The factory's meeting room was a brand new oval room, with several beautifully trimmed potted plants in the center and comfortable leather-back chairs with armrests.

Of course, there was no doubt that the meeting table and chairs in the room were provided by China Resources Industry.

This set of meeting room furniture, which would be very ordinary in a few years, was particularly high-end and prestigious in an era when people were still accustomed to using a few tables pieced together as a meeting room.

"The furniture in your meeting room is quite good," the accompanying personnel from the military region, who came down with Guo Haijun's team, looked enviously at the walnut-colored tables and chairs. "The meeting tables in the military region's meeting room are not as good."

Peng Guangming quickly glanced at Chen Geng.

Chen Geng cleared his throat and said, "This set of meeting room furniture is the first large-scale set we produced, just for practice. Many aspects are not satisfactory. We have a few sets currently in production, and once they are ready, we plan to invite the logistics personnel from the military region to come and take a look."

The faces of the military region's personnel immediately brightened.

Of course, Chen Geng had never even thought about replacing all the office furniture for the military region. The four major agencies of the military region, if you gave one, could you not give the others? Could you dare not give the others? If you gave to the four major agencies of the military region, the provincial military regions would also want it. What would you do? The Air Force and Navy under the East China Military Region would also ask, what would you do? Give or not?

If you gave everything away, how much would it be? Could China Resources Industry afford it?

It would be simpler to give nothing. Although some people might be unhappy, no one could say anything.

Guo Haijun frowned. Although he found this situation somewhat distasteful, he knew it was very common. He said nothing, but addressed a certain officer of the East China Military Region, whom he remembered but didn't know the name, "Comrade Li, the current situation of China Resources Industry Development Co., Ltd. is quite tricky."

The mysterious Comrade Li nodded, agreeing with Guo Haijun, "Yes, everything about the current China Resources Industry is rented, and it does not have the capability to be a production enterprise. Well, Comrade Guo, do you have any suggestions?"

After saying this, he glanced at the leadership of the Third Armament Repair Factory, finally pausing on Chen Geng's face.

Chen Geng immediately understood. They were not making things difficult, but had already made up their minds. However, as a leader, one must maintain a certain reserve. The current situation of China Resources Industry Development Co., Ltd. was indeed tricky. If the existing assets of China Resources Industry were used as a basis, Chen Geng's shareholding ratio would exceed 80%, which was unacceptable. Allowing Chen Geng to hold shares was one thing, but his shareholding ratio must not exceed 50%, which was a set principle.

Of course, Chen Geng had no right to speak at this moment.

Guo Haijun pondered for a moment and then said, "Based on the core spirit of this military reform, which is to reduce expenses and allocate limited military funds to the most effective areas to enhance our military's combat capability, the initial idea of the military enterprise reform team is to take the First Armament Repair Factory as the core and reorganize and merge the three repair factories into a large, comprehensive military equipment repair factory..."

"Like the 7319 Factory," added the only female official in the team, Deputy Team Leader Ding Yuemei, who had short hair. Chen Geng had just learned her name.

The 7319 Factory was a banner in the military equipment repair field of our army, and would later become the famous Leopard Car Manufacturing Plant. The current 7319 Factory has over 2,000 employees, making it the largest comprehensive military machinery repair factory in central and southern China and the second-largest in the country. It has a glorious history, having sent a service team of 108 technical workers to remote border and island garrisons in the late 1960s and early 1970s to assist in the repair and maintenance of artillery, firearms, and military vehicles. Additionally, these 108 workers trained 260 technical backbone personnel for the border garrisons, enhancing the units' own mechanical repair capabilities.

When the South China War broke out in 1979, the 7319 Factory entered a state of readiness a month before the war began and sent repair teams to the front lines to repair artillery and vehicles, successfully completing the logistics support and repair tasks, laying a solid foundation for the victory in the South China War.

Ding Yuemei's statement that the East China Military Region planned to merge the First, Second, and Third Armament Repair Factories into a large, comprehensive military equipment repair factory like the 7319 Factory clearly demonstrated the military region's leaders' emphasis and determination on this military reform.

Upon hearing this, the faces of the leadership of the Third Armament Repair Factory, except for Chen Geng, changed dramatically!

Taking the First Armament Repair Factory as the core and merging the three repair factories into a large, comprehensive military equipment repair factory was, of course, a good thing for the East China Military Region, but what about the people of the Third Armament Repair Factory? How would they be arranged?

For example, Peng Guangming and Liu Qianjin, who were currently the top leaders in party and government work and production work at the Third Armament Repair Factory, would likely still enter the leadership of the merged repair factory, but compared to their current status, it would be a significant step down.

As for the others, if they could enter the middle management, it would be fine, but if they were placed in a lukewarm position, it would be very depressing. Compared to the thriving days of the Third Armament Repair Factory, going to the merged military equipment repair factory would be like jumping into a fire.

But the key issue was, why was there no prior wind of this major decision?

According to convention, for such a non-military secret military enterprise restructuring, there would always be some prior rumors, and the higher-ups would even tacitly allow the spread of such rumors. This was to give the relevant units' personnel time to prepare mentally and ideologically, and for some, it was also an opportunity. Those who wanted to seize this opportunity would know what to do.

But why was this time so unconventional?

Chen Geng didn't think too much about it. He was just curious: What did the merger of the three armament repair factories have to do with him?

While the leaders of the Third Armament Repair Factory were lost in their thoughts, Guo Haijun continued, "So my idea is, can some of the equipment, machinery, land, and other fixed assets and production resources be allocated to China Resources Industry Development Co., Ltd. as their assets, and then based on these assets, redefine the company's assets?"

After saying this, Guo Haijun nodded at Chen Geng, "Of course, this might be a bit disadvantageous for Comrade Chen Geng, but..."

"I have no personal objections, but there is one issue," Chen Geng frowned, looking troubled.

Guo Haijun subconsciously frowned, feeling that Chen Geng was being ungrateful. The state had already allowed him to hold shares in a private company, and he was still not satisfied? However, he didn't get angry over such a small matter and asked, "What issue?"

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