Chapter 40 Figures in corporate history: one person, three nine

Not all Chinese companies are so lucky to stand on the high ground of an industry and launch a charge to the goal of "the world's first".Among those possible industries, traditional Chinese medicine should be the one with the most high hopes. It originated in China and has a solid academic foundation, consumer market and public recognition here. Zhao Xinxian's Sanjiu Group is the only Chinese traditional medicine company with an output value of nearly 10 billion yuan.It once built a daunting enterprise cluster, its products were popular all over the country, it has three listed companies, and its expansion performance in chain drugstores, health websites, and traditional Chinese medicine medical equipment is unmatched.

When its charge finally weakened, it also seemed to mean that a twenty-year-long decisive battle of the century had quietly ended. In the future market, it may be difficult for traditional Chinese medicine to even have a chance of evenly failing. On August 7, 1985, Bijia Mountain on the outskirts of Shenzhen was overgrown with thatch and desolate everywhere. A 43-year-old entrepreneurial team composed of soldiers had just entered here——Zhao Xinxian, 43, followed him to start a business with six hospital employees, eight hired workers. At that time, Zhao Xinxian was the director of the Pharmacy Bureau of Nanfang Hospital affiliated to Guangzhou First Military Medical University. He was ordered to set up a Nanfang Pharmaceutical Factory on Bijia Mountain.This small team composed of soldiers naturally has superhuman passion. It took them 7 days to install a pulverizer that would take others a month and a half to install, and they dug a motor-driven well with a daily pumping capacity of 1,200 tons of water in 20 days. In 3 months, 150,000 earthworks were leveled, and two standardized workshops were built.

Of course, Zhao Xinxian's passion is not only reflected in the construction of factory buildings. He dared to risk violating financial discipline, and took all the money from building workers' houses to buy new equipment without authorization, and successfully built China's first traditional Chinese medicine automation system. Production line, and developed the traditional Chinese medicine formula for stomach medicine in hand into a pure Chinese medicine compound granule - "Sanjiu Weitai". Zhao Xin was also ingenious in his marketing.He does not sell products around like other manufacturers, but puts on a neat and dignified military uniform, and goes to major central cities to hold "academic lectures".In the minds of the business community and the public, the military and military hospitals have always had a good reputation, and Zhao Xinxian naturally took the lead in terms of credibility and authority.In the first year of setting up the factory, Nanfang Pharmaceutical Factory achieved a sales revenue of 11 million yuan.

In terms of advertising and marketing, Zhao Xinxian had two inventions.The first is that he took the lead in advertising taxi top boxes in China. In 1988, he installed the top-box advertisement of "The King of Stomach Medicine, Sanjiu Weitai" on more than 400 taxis in Guangzhou, and the communication effect was surprisingly good.Second, he is also the initiator of celebrity advertising.He persuaded the famous old film artist Li Moran to advertise the product: "In our line of work, life is irregular and often suffers from stomach problems... Sanjiu Weitai is a good medicine for stomach problems. It is immoral to make fake stomach medicines , should be condemned by the society." As soon as this semi-functional, semi-public welfare celebrity advertisement was broadcast on CCTV, it immediately caused a sensation and controversy, and Sanjiu Weitai's reputation became bigger and bigger.

By the end of 1988, the output value of Nanfang Pharmaceutical Factory had reached 1.8 billion yuan, and realized profits and taxes of 400 million yuan, ranking 82nd among the 500 largest industrial enterprises in the country. It became the most well-known and most profitable Chinese medicine company in China at that time. None of the companies such as Haier, Lenovo, and Vanke, which were founded at the same time as Sanjiu, had sales of more than 1 billion yuan, and Huawei and Wahaha have only been in business for less than a year. Around 1989, Zhao Xinxian launched a series of traditional Chinese medicine products including Zhuanggu Joint Pills, Zhengtian Pills, and Piyanpingping in one go. The sales of each of them exceeded 100 million yuan within a year.The ability of Nanfang Pharmaceutical Factory in the development and market operation of traditional Chinese medicine has surpassed the domestic market, and no one can shake it.In a sense, this was one of the most successful market-oriented companies throughout the 1980s.

The rapid rise of Nanfang Pharmaceutical Factory made Zhao Xinxian a dazzling new star in the Chinese business circle. In April 1989, the General Logistics Department of the People's Liberation Army issued the "Decision on Learning from Comrade Zhao Xinxian" to the entire army.If Zhao Xinxian's business talent is a little amazing, then the "Three Nine Mechanism" formed by his strongman attitude was even more sensational back then. Just like many Chinese companies, the entrepreneur plays the role of the first element during the start-up period, and his personal ability and charm become the key to the success of the company.In the miraculous rise of Nanfang Pharmaceutical Factory, Zhao Xinxian's talent is undoubtedly the most decisive. Gradually, he has formed an irreplaceable absolute authority within the company. In October 1991, the General Logistics Department of the People's Liberation Army bought Nanfang Pharmaceutical Factory and changed its name to Sanjiu Group.The General Logistics Department of the People’s Liberation Army implemented the most relaxed system of personal responsibility for legal representatives in the management of March 9th. The method was that the General Logistics Department of the People’s Liberation Army fully delegated power to Zhao Xinxian, and clearly stated in the documents for the establishment of the enterprise group that only Zhao Xinxian was responsible for it. Full authority and responsibility for the value-added and safety of all assets of the enterprise.In the Sanjiu Group, Zhao Xinxian is the general manager and secretary of the party committee. There is no deputy general manager under him. The group headquarters only has three departments: the party affairs department, the finance department, and the personnel department. There are two secretaries who handle specific matters.Zhao Xinxian proudly called this management setup "one-person mechanism".

The Sanjiu management model was unique among all state-owned enterprises in China at that time, even unimaginable.It breaks through the shackles of the rigid state-run system on enterprises, and the result is the real separation of government and enterprises, thus solving the long-standing problem that has been difficult for state-owned enterprises to solve for more than ten years.This is the system design that all state-owned entrepreneurs dream of. For many years, they have been trapped in the system, such as "a lion in a cage".And Zhao Xinxian insisted on letting himself break free from the shackles reasonably and legally, so that the growth of the enterprise was always firmly controlled by himself.For quite a long time, the Sanjiu Group enjoyed the various institutional advantages of state-owned enterprises on the one hand, and on the other hand relied on the "Three Nine Mechanism" to maintain the space for free growth. Objectively speaking, until the moment when Zhao Xinxian retired, He has maintained a firm grip on the state-owned company.In the following ten years, the story of Sanjiu was full of ups and downs like a roller coaster, and its success or failure can be described as "one person succeeds and one person loses".

At least until the mid-1990s, Sanjiu was invincible because of its excellent products and advanced mechanisms.Sanjiu Weitai is really an excellent and profitable product. In the next 20 years, it hardly has too many innovations and upgrades. It can bring Sanjiu 1 billion yuan in sales and hundreds of millions of yuan in sales every year. Profit, in the stomach medicine market, there has never been a more successful product than it. "An overly good product often gives entrepreneurs more opportunities to make mistakes." This is the most embarrassing of all business laws. After Nanfang Pharmaceutical Factory belonged to the General Logistics Department of the People’s Liberation Army, the General Logistics Department has placed 71 military enterprises under the management of Sanjiu Group for three times. The pharmaceutical industry has nothing to do.As a result, Sanjiu Group has built a diversified growth platform.

For Sanjiu, these enterprises are like a bunch of "free fruits", which look dazzling, but are very difficult to swallow.Most of them are the products of the production and management of the army in the late 1970s to make up for the lack of military expenditure. The industrial base is poor, the personnel are aging, the relationship is complicated, and the business ideas are narrow.However, Zhao Xinxian was very excited about this. He thought it was a godsend opportunity for the Sanjiu Group to grow rapidly. He compared it, "This is like a large expansion of the army. But after all, there are too many people and guns, and we can completely transform them by relying on the Sanjiu mechanism." Later facts proved that Zhao Xinxian was too optimistic about the positive effects of the mechanism, and Sanjiu had to invest in the daily operation of some enterprises every year in order to maintain the normal operation of some enterprises. billions of funds.

In 1996, the reform of state-owned enterprises across the country entered the most difficult time, and the finances of many places were unable to support the heavy burden. Therefore, "retirement from the country and advancement of the people" became a realistic strategy, and governments around the country launched new policies for the reorganization and grafting of old enterprises. .Zhao Xinxian, who is on the verge of expansion, has seen this trend. He said at a high-level meeting, "So many assets are idle in the society. This is a great opportunity to go down the mountain to pick peaches. Don't miss it. After passing this village, it will be gone." This store." Soon, Sanjiu formulated a strategy for large-scale acquisitions and mergers.

Sanjiu's first "downhill picking peaches" was very successful.Ya'an Pharmaceutical Factory in Sichuan is one of the earliest manufacturers of traditional Chinese medicine injections in China. By the end of 1995, this old state-owned enterprise had reached the end of its rope, with an annual output value of just over 10 million yuan and a profit of only 20,000 yuan.Zhao Xinxian discovered this company during a business trip, and immediately decided to invest 17 million yuan to acquire it, and appointed the most capable cadres to run it in Sichuan.The injections of the Ya'an factory were labeled with the Sanjiu brand, and went to the national market through Sanjiu's marketing network. After one year, the output value reached 100 million yuan, and the profit and tax were more than 20 million yuan.The remarkable effect of mergers and acquisitions is beyond everyone's expectations. The success of the Ya’an experience immediately made Zhao Xinxian very ambitious. He believed that all the chronic problems of old state-owned enterprises were caused by the system. As long as the Sanjiu mechanism and brand were injected, coupled with a moderate start-up capital, they could be completely transformed overnight. Iron tree blossoms. At the end of 1996, Sanjiu held an experience learning meeting in Ya'an. After the meeting, Zhao Xinxian announced the establishment of Sanjiu Investment Management Company, and appointed more than 60 cadres to go to all parts of the country to specialize in acquisitions and mergers. At that time, the domestic Sanjiu brand resounded all over the world. Looking around, there were few companies like it that had the authentic lineage of a state-owned enterprise, as well as capital, brand and sales network.Handing over the enterprise to Sanjiu can not only revive the enterprise, but also avoid the suspicion of selling state-owned assets at a low price.Therefore, every time Zhao Xinxian went to a province, the secretary and the governor would come forward to receive him. When he arrived in the city, the five major groups were shocked to greet him and see him off.When some enterprises in remote places heard that Sanjiu started a big merger, they went all the way to the Sanjiu headquarters in Shenzhen and lined up to request the merger.Lankao County in Henan Province gave all seven companies to Sanjiu at once. In a certain western province, the director of a winery knelt down on the spot and begged Zhao Xin to eat his factory first. There are three main ways for Zhao Xin to take over the enterprise first. The first is the "debt-taking method", in which Sanjiu takes all the assets and debts of the enterprise; The controlling party; the third type is "custodial", which only manages the business, does not bear debts, and shares from the growth benefits.Generally speaking, Sanjiu’s M&A costs are very low. Zhao Xinxian’s most advocated M&A philosophy is “no investment in the export mechanism”, that is to say, the local government sends enterprises to Sanjiu for management, and then takes a large part of it. Shares, what Sanjiu pays is the "three treasures": mechanism, brand and channel. In the eyes of outsiders, Sanjiu's successive sieges are undoubtedly brilliant and dazzling.Through the expansion of mergers and acquisitions, Sanjiu's products have extended from granules to injections, and from digestive traditional Chinese medicine to anti-cancer, gynecology and other categories, which seems to have formed the embryonic form of a Chinese medicine empire.From 1996 to 2001, Sanjiu acquired more than 140 local enterprises, with an average of 2 acquisitions per month, of which 45% were debt-bearing, 35% were holding, and 20% were entrusted.In this kind of frenzied mergers and acquisitions, Sanjiu Group rapidly expanded into the largest Chinese medicine company in the country, with total assets soaring to 18.6 billion yuan. Eight major industries including medicine, automobile, food, wine making, tourist restaurants, commerce, agriculture and real estate, and even one of the largest nightclubs in South China is under its umbrella. However, in the process of "picking peaches", because Zhao Xinxian was too impatient, he also blindly ate a lot of "rotten peaches". They seem to be free, but it takes a lot of resources to digest them , a considerable part of them were still helpless in the end. In 1997, the Taiyuan Detergent Factory, which was merged with debt, ended up with a loss of 70 million yuan, the loss of the Lankao project was 50 million yuan, and the Shaolin automobile project in Zhengzhou was 60 million yuan. There were dozens of financial disputes and lawsuits. Statistics show that the success rate of Sanjiu’s mergers and acquisitions in the pharmaceutical industry is as high as 70%, while most of the non-pharmaceutical industries end in failure. At the beginning of expansion, the company’s debt ratio was 19%. By 1998, the debt ratio had reached 80%. %.In the first expansion, Sanjiu seems to have more troops and generals, and its influence spreads all over the country, but the unconnected and unintegrated M&A strategy has actually planted very sinister seeds, which are consuming Sanjiu every day. capital and brand influence. Just when Zhao Xinxian vowed to build the world's number one traditional Chinese medicine company, the ecology of Chinese business circles suddenly changed.Since the 1980s, industrial entrepreneurs have always been the protagonists of the industry. However, with the rise of the Internet and the awakening of the capital market in China, another type of entrepreneur has suddenly become a new favorite. Started from scratch, but completed the accumulation of wealth in a shorter time.Faced with this unstoppable change in business trends, Zhao Xinxian, who is nearly 60 years old, is not at a loss. On the contrary, he is extremely aggressive in both the capital market and the Internet. In April 2000, "Sanjiu Medicine", the flagship company of Sanjiu Group, was listed on the Shenzhen Stock Exchange with the code "000999". %, nearly 1.67 billion yuan was raised, and the scenery was second to none. Almost at the same time, the State Securities Regulatory Commission approved a listed company in Jiangxi, Yichun Engineering, to officially change its name to "Sanjiu Biochemical".In November of the same year, Zhao Xinxian made another move. He acquired 29.5% of the shares of Shanghai Adhesive Tape Co., Ltd. and became the company's largest shareholder. In 2003, the company changed its name to "Sanjiu Development". In less than a year, Zhao Xinxian made a strong move and became the owner of three listed companies in one fell swoop. He also obtained a franchise and injected 308 million yuan to establish Sanjiu Shenzhen Financial Leasing Co., Ltd., which is the earliest in China initiated by an industrial enterprise. controlled financial leasing companies.Zhao Xinxian is undoubtedly the first person in the capital operation of state-owned enterprises.In the capital market at that time, only Tang Wanxin's Delong Group controlled three listed companies, Hunan Torch, Xinjiang Tunhe and Alloy Holdings.In a conversation with media reporters, Zhao Xinxian said proudly, "In the capital market, Sanjiu's performance is second only to Delong." Compared with Tang Wanxin, a reckless Xinjiang entrepreneur, Zhao Xinxian has superior conditions.When he acquires and merges listed companies, he doesn't have to hide and hide like an underground mouse. As the head of a large state-owned enterprise, any of his business activities represent the interests of state-owned capital, so he receives all kinds of care and preferential treatment; his funds The source is not as tense as Tang Wanxin's. The bank's door is open to state-owned enterprises, especially state-owned enterprises such as Sanjiu, which are very profitable. No matter which bank president is willing to loan for Sanjiu at any time-once, Zhao Xinxian even complained that Sanjiu’s debt ratio is getting higher and higher because banks provide loans without restraint; it has a very successful product and brand, and all investment stories sound so reasonable and rich imagination. In addition to passionate performances in the capital market, Zhao Xinxian is also very active in the face of the turbulent Internet heat wave. On April 24, 2000, at the same time that Sanjiu Pharmaceutical was listed, the 999 Health Network, which is known as the largest medical and health website in the country, was launched. Relying on the network, with the national pharmaceutical chain stores as the port, the Sanjiu Health Network as the hub, and the traditional Chinese medicine remote diagnosis and treatment network as the extension, a super medical and health service system is formed.In the Internet craze that "concept is everything", Zhao Xinxian's vision description is naturally sought after by the market. However, in the future operation, "four networks in one" can't be realized at all, and the positioning of the health network is vacillating. From the health portal to the learning website, and then to the e-commerce, each transformation means a large amount of capital investment. Mr. Zhao Xin In order to show the company's advanced image in the Internet age, it has continuously acquired small and medium-sized websites. By 2003, there were 13 public service websites and 29 corporate websites under Sanjiu. The number of websites is large, the nature is miscellaneous, and it burns a lot of money. All amazing. During this period, Sanjiu's development strategy has changed from the previous "eight major industries simultaneously" to "focusing on the life and health industry as the main business, and the two major industries of network information and financial leasing as the pillars".It seems that it not only adheres to the traditional Chinese medicine line of Sanjiu, but also grafts the two hottest industries in today's business circle-the Internet and finance.However, in the implementation, there was a lack of integration and deep cultivation. The second expansion still did not allow Sanjiu to achieve a decisive leap.One fact is that Sanjiu Group has never developed a successful traditional Chinese medicine product since 1990. For more than ten years, it has been supporting the world with Sanjiu Weitai and Dermatitis Pingping. On August 28, 2001, Sanjiu was warned by the China Securities Regulatory Commission when he was caught off guard.The China Securities Regulatory Commission issued a public notice criticizing Sanjiu Medicine, claiming that its use of raised capital was inconsistent with the prospectus, and that major shareholders and related parties occupied more than 2.5 billion yuan of listed company funds, accounting for 96% of the company's net assets, seriously encroaching on the majority of small and medium-sized investments The interests of investors directly threaten the asset safety of listed companies.The circular also publicly named the chairman of Sanjiu Pharmaceutical, Zhao Xinxian, saying that he "has committed major dereliction of duty, and the circumstances are particularly bad, and should be condemned." The chairman made a roll call to condemn and criticize.For Sanjiu, who has always had a good image, the damage can be imagined. Sanjiu immediately became another "giant stock market scam" after the Yinguangxia incident. Zhao Xinxian had no foreknowledge of this incident. In his consciousness, Sanjiu Group and Sanjiu Pharmaceuticals were his left and right pockets, and the misappropriation of funds should be a normal thing. Thinking back when he founded Sanjiu, he put It is a good story that the money from construction workers' housing was embezzled to buy equipment without authorization. I didn't expect such a big contrast between this moment and that moment.But despite his dissatisfaction, he still showed entrepreneurial demeanor and rationality. Three days later, he appeared in front of the cameras of CCTV reporters. The first sentence was "accept criticism" and the second was "apology".However, he always believed that he was "actually not wrong." He told reporters that these projects did not cause the loss of state-owned assets, but guaranteed the value-added of state-owned assets in the future. The "public condemnation incident" caused Zhao Xinxian's capital expansion to suffer a double blow both strategically and psychologically. Since then, many listed companies in the 39th series have basically lost their financing functions.According to the annual report data, by the end of 2002, Sanjiu Enterprise Group's operating net profit was only 22.713 million yuan, the asset-liability ratio was as high as 92%, the total debt was 19.1 billion yuan, and the return on assets was only 0.1%.In this very severe situation, Zhao Xinxian changed his diversified capital expansion strategy and tried to return to the traditional Chinese medicine industry.However, his return still showed boundless passion.He put forward the "three modernization strategy" of specialization in the 39th period, that is, "modernization of traditional Chinese medicine, specialization of traditional Chinese medicine, and service-oriented health care". He observed that Chinese business seems to have entered an era where "channels are king". For example, in the field of home appliances, chain channel operators such as Gome and Suning have risen rapidly, forming a strong channel advantage for manufacturers.Most of Sanjiu's medicines are sold through medical stations and hospitals. Zhao Xinxian is keenly aware that with the reform of the medical system, chain drugstores are bound to become the hottest investment field.At this time, he has already had fatal doubts about the technological development and competitiveness of Chinese pharmaceutical companies. He believes that "for domestic pharmaceutical companies without too many core technologies, their advantages are not in technology or R&D, but should be Establish your own survival barriers as soon as possible before foreign pharmaceutical giants come in." His so-called survival barriers are to transform Sanjiu from manufacturing to marketing and business services. In order to practice this concept, he proposes to attack both international and domestic fronts at the same time, implementing the "McDonald's Plan" and the "Wal-Mart Strategy" respectively. The "McDonald's Project" is to establish a chain network of traditional Chinese medicine clinics around the world.Zhao Xinxian plans to open 1,000 chain clinics within five years.He first founded the first TCM medical center in Toronto, Canada, and then successively opened more than 50 similar centers in countries such as the United Kingdom, the United States, and Malaysia. In addition, he also opened a modern TCM research institute in Los Angeles.However, due to various reasons, this exciting "McDonald's Project" eventually became a "half-finished project" like many projects in March 9th. The "Wal-Mart strategy" is to weave the largest chain drugstore network in China.Zhao Xinxian’s attention to chain drugstores actually began in 2000. On July 30 of that year, Sanjiu held a chain strategy seminar and decided to raise 1.3 billion yuan from financial leasing companies to establish a development plan for 5,000 chain drugstores.Later, this plan was increased to an unprecedented 10,000 stores.Zhao Xinxian had high hopes for chain drugstores. He kept urging his subordinates to enclose land and control terminals. He even believed that chain drugstores would be the No. 1 brand of Sanjiu Group.In just over a year, the Sanjiu chain pharmacy has grown to a scale of 1,000. However, due to the high cost of opening a store, and the ineffective control of standardized management and operating costs, the chain pharmacy soon showed a trend of weakness in follow-up. Zhao Xinxian once again Committing the old problem of "clear strategy and chaotic tactics".In a commentary, the Chinese version of Fortune magazine in the United States directly called it "China's Great Leap Forward-style aggressiveness, and the United States' Enron-style cowhide bubble". The second major "professional project" of Sanjiu is to establish a Chinese medicine hospital group. It reached an agreement with Hainan Province to acquire Hainan Traditional Chinese Medicine Hospital. Integrate into a new group, buy a shell and list in Hong Kong.At the same time, Sanjiu is planning to build a health city with an astonishing scale in the eastern part of Shenzhen, including the world's largest golf city with 90 holes, an ultra-luxury five-star health hotel, and a sanatorium, hospice and special care facilities. The total investment of a large-scale comprehensive health service system including hospitals will exceed 4 billion yuan. Zhao Xinxian is the kind of entrepreneur with quite a strategic intuition. At every transition point in the industry, he can realize it early and respond quickly.However, he always appears to be "big and inappropriate" in the implementation of projects. In the layout and rush again and again, the scale of Sanjiu's enterprise is getting bigger and bigger, but the projects that can bring direct benefits to the enterprise have never been successful. now.In the third expansion, Zhao Xinxian behaved like an old chess player who had passed his peak and was unable to do what he wanted. The opening game was magnificent, the middle game was chaotic, and the ending game was unsightly. "New Finance and Economics" analyzed in a comment, "Sanjiu's specialization strategy is confusing. The pharmaceutical industry belongs to the production field, the chain drugstore business belongs to the distribution field, and the medical and health care industry focuses more on the service field. The three businesses are all in line with " "Medicine" is related, but the essence is completely different, and the investment risk is greater." In a sense, Sanjiu's return to specialization is a less thoughtful and more risky gamble. In 2003, Zhao Xinxian and his Sanjiu rushed to the edge of the cliff after running wildly without gaining anything. On September 28, some media published an article "9.8 Billion Loans: Sanjiu Group's Debt Extorted by Banks", disclosing that Sanjiu owed a total of 9.8 billion yuan in bank loans and had fallen into a huge financial crisis.As soon as this article came out, Sanjiu's financial dilemma was immediately exposed to the world. In the next month or so, "debt collectors" came one after another, and Sanjiu's headquarters was in chaos. Some impatient banks began to seal up Sanjiu's assets and freeze pledges. Equity, and filed a lawsuit in court.Sanjiu's hundreds of descendant companies all over the country have become targets of bank duress.Among them, the Industrial and Commercial Bank of Huzhou, Zhejiang Province, did the most. It simply froze the bank account of Sanjiu Huzhou Pharmaceutical Factory and seized all the incoming liquidity. This caused the pharmaceutical factory's capital chain to break, production and operation came to a standstill, and it had to declare bankruptcy. For all businesses, the bankruptcy of bank credit is almost hopeless.Sanjiu has reached the most thrilling moment since its inception.At such a time, Zhao Xinxian, who was trying to save himself, suddenly targeted the owner of state-owned assets.He believes that "the root of Sanjiu's high debt ratio is that Sanjiu Group is a freak. As a state-owned enterprise, its state-owned investors exist, but they have no actual capital contribution. The state-owned investors have not fulfilled their investment obligations. For Sanjiu As far as the group is concerned, not only did the state not pay a penny, but it also never enjoyed preferential policies such as debt-to-equity swaps and discounted loans." Zhao Xinxian's remarks are actually a bet on his career.He boldly forced the State-owned Assets Supervision and Administration Commission to achieve two goals. First, the State-owned Assets Supervision and Administration Commission will assume the role of an investor and inject 5 billion yuan into Sanjiu. In this way, the bank's debt crisis will naturally be resolved; If the shareholding system reform is carried out, then he and his team can take advantage of the trend to become the true masters of Sanjiu.Whichever of these two objectives is achieved is satisfactory.And the reason why he dared to do this is that Sanjiu has been under his control since its establishment, and no second person has a complete picture of personnel, finance, and industry. Now the situation is chaotic. People can understand. However, things did not go as he wished.In the view of the SASAC, the 187 large enterprises are the main force of the state-owned economy. If Sanjiu’s shareholding reform is clarified, and other enterprises follow suit, no one can predict the future situation.From this point of view, the probability of Zhao Xin succeeding first is very small.Sure enough, just two months after the speech in Beijing, on May 16, Li Yizhong, Secretary of the Party Committee of the State-owned Assets Supervision and Administration Commission of the State Council, went to Shenzhen in person and suddenly announced that Zhao Xinxian was removed from the positions of general manager and party secretary of Sanjiu Enterprise Group.The public reason is that cadres under the jurisdiction of the State-owned Assets Supervision and Administration Commission must retire at the age of 60, and Zhao is already 63 years old, so it is normal to resign and retire.At the same time, he gave Zhao Xinxian a very high evaluation, saying that he "has made outstanding contributions to my country's pharmaceutical industry and the development of Sanjiu Enterprise Group for 40 years." But in October 2004, the 43-year-old vice president of the Sanjiu Group, Chen Zhong, who had been favored by Zhao Xinxian, died suddenly of illness. When cleaning his office, he found a huge amount of unidentified deposits; Intervening in the audit of Sanjiu, Rong Longzhang, vice president of the group, Cui Chonglin, president of Sanjiu Guangzhou Hospital, Zhang Xinrong, general manager of Sanjiu Biochemical, etc., were successively arrested by double regulations or wanted. Zhao Xinxian was involved in the problem. According to later disclosures, Zhao Xinxian was suspected of "transferring assets overseas."According to the information provided by the Hong Kong Company Registry, Sanjiu has registered more than 50 companies in Hong Kong, all of which are "private companies". Yuan funds disappeared.After studying Sanjiu's financial situation, Lang Xianping summed up Zhao Xinxian's "six tricks for making money": cut, borrow, advance, cover, transfer, and lie. In addition to financial violations, Caijing magazine gave another observation: after Zhao Xinxian was suddenly announced to retire, his successor has been having difficulty in carrying out his work.On the one hand, Sanjiu's various businesses are showing signs of collapse, and it is not an exaggeration to describe it as "a chicken feather all over the place".On the other hand, in the face of such a complicated and arduous reorganization work, some of Zhao's old ministries still occupy the "small hill" and believe that Zhao can come back again.Under such circumstances, relevant departments decisively "taken down" Zhao, which is a result of "struggle for power". In any case, Zhao Xinxian, who originally thought he had landed safely, became the focus of attention again after more than two years of retirement. On November 19, 2005, Zhao Xinxian was arrested and detained in Shenzhen Meilin Detention Center, which is located in a very remote valley on the south side of Bijia Mountain.Walk more than 1,000 meters eastward from this place, and then turn a corner, which is the place where Zhao Xinxian slept in the dog shed. From the dog shed to the cell, Zhao Xinxian walked for a full 20 years.