Siheyuan: I am different He Yuzhu

After a heated and in-depth discussion, all members of the drafting group of the "Regulations on State-owned Industrial Enterprises (Draft)" reached a highly consistent consensus - the suggestions put forward by He Yuzhu have extremely important practical significance and value.

Everyone agreed that enterprises should be given a certain degree of autonomy and allowed to retain some funds to invest in independent innovation and imitation of new foreign products.

At the same time, the team members further proposed that a special technical committee be established within the superior management unit of each enterprise. This organization will shoulder the vital mission of coordinating joint R&D projects between different enterprises and promoting the widespread application and effective promotion of various new technologies.

Then, the drafting team struck while the iron was hot and quickly shifted its focus to the discussion of the specific amount of funds retained by the enterprise.

At this time, someone took the lead and said: "In my opinion, the setting of corporate retained funds should be arranged in a targeted manner based on the size of each enterprise and the characteristics of the industry to which it belongs."

"Let's take the Red Star Machinery Manufacturing Plant where Comrade He is working as a typical example. The plant produces a wide variety of products, and from a practical point of view, the amount of funds consumed in its research and development process is bound to be much higher than that of some other industries."

Another member immediately agreed and added: "That's right, if we simply and crudely require the Red Star Machinery Factory to implement the same retention ratio standards as other types of factories."

"Then for the factory's efforts to develop new technologies and launch new products, it will undoubtedly be like pouring a cup of water into a blazing fire. It will not be able to meet its real needs at all, and may even be counterproductive, completely deviating from the goals and intentions that this policy was originally formulated to achieve!"

"So in my opinion, different proportions of R&D investment plans should be implemented according to the size of each enterprise. For example, a large enterprise like Red Star Machinery Manufacturing Plant can be required to take out 10% of its annual net profit."

"It is used exclusively as independent research and development funds within the enterprise. After all, such large enterprises usually have strong financial resources and a lot of resources to allocate. This 10% investment can not only ensure the smooth progress of their research and development work, but also will not bring too heavy a burden to the enterprise."

"However, for relatively small companies, due to the limited number of technical personnel in the factory, we may be able to appropriately reduce the proportion. For example, we can adjust the proportion to about 5%."

"In this way, adopting different standards for enterprises of different types and sizes can not only ensure that larger enterprises like Hongxing Machinery Manufacturing Plant can obtain sufficient R&D funding support, but also effectively promote their technological innovation and product upgrades."

"It can also effectively avoid unnecessary waste caused by small-scale companies retaining too much research and development funds."

……

At this time, He Yuzhu was listening attentively to the enthusiastic speeches of the team members present, and occasionally took a pen to write down the key points. At the same time, his brain was working rapidly, constantly comparing and analyzing the views and suggestions put forward by these members with the current actual situation of Red Star Steel Plant.

Finally, after everyone had expressed their opinions, He Yuzhu cleared his throat and spoke slowly.

"After listening to everyone's opinions, I was deeply touched. These ideas were like stars that illuminated the night sky of my mind and brought me many valuable inspirations. However, at this moment, a question quietly emerged in my mind."

"If we really implement the plan of taking a certain percentage of the company's profits as R&D funds, wouldn't that percentage be too low? Take our Red Star Machinery Manufacturing Plant as an example. Suppose the net profit we finally get in a year is only 800,000 yuan."

"Then, if we keep 10% of it as research and development funds, it will only be 80,000 at most. You know, our Red Star Machinery Manufacturing Plant produces a wide variety of products!"

"We not only have comfortable and convenient cars, but also trucks for transporting goods, not to mention off-road vehicles that are adaptable to various complex terrains and full of adventurous spirits; in addition, agricultural machinery and various large-scale construction machinery are also our flagship products."

"The technical research and development areas involved in these products are even more extensive and in-depth, such as the engine, one of the core components, the gearbox, an important component that affects vehicle performance, and the chassis, which is the key to determining the stability and handling of the entire vehicle."

"A mere 80,000 yuan is just a drop in the ocean compared to so many important R&D projects. It's insignificant! I'm afraid this amount of money can't even support the initial research of any one of them, let alone promote the continuous innovation and upgrading of the entire product line.

As soon as He Yuzhu said this, the meeting room, which was originally in a heated discussion, suddenly became quiet. All the team members present fell into deep thought, and everyone's face showed a solemn look. Obviously, they also realized the seriousness of the problem. Time seemed to freeze, and only the ticking sound of the wall clock echoed in the silence.

After a long while, a member finally broke the oppressive silence. He raised his head, looked straight at He Yuzhu, and slowly asked, "Comrade He, since you have raised this doubt, then in your opinion, what standard or basis should be used to determine the base amount of R&D funds to be retained to be more reasonable?"

"Personally, I think that if we want to determine the retention base of R&D funds, it would be a good idea to link it to the company's revenue scale. The ratio might as well be set at 1% of revenue."

"In this way, our company will have sufficient R&D funds to carry out various research work. This will also ensure that we can continuously carry out in-depth R&D activities for new products and new technologies."

After hearing He Yuzhu's answer, the member who asked the question couldn't help but gasp and said in amazement, "You're going to set it at 20%! You know, your Red Star Machinery Manufacturing Plant can produce about 1 cars a year, and the average factory price of each car is as high as yuan."

"By this calculation, your factory's annual operating income must be a full 20 ​​billion! If you retain 2% of the R&D funds, doesn't that mean that your factory has to set aside a full million yuan for R&D every year? This... this amount of R&D funds is a bit too exaggerated!"