Chapter 37: A Blatant Threat

Sun Xiaoyan paused outside the glass door, her mind racing through the history between Wanhai Technology and Tianhai Pharmaceuticals. In truth, the founding of Wanhai Technology had been owed in part to Tianhai Pharmaceuticals.

For a pharmaceutical enterprise, two departments are of paramount importance: the front-end sales division and the back-end research and development division. Without its own flagship products, a pharmaceutical company struggles to establish a firm foothold in the market. Developing new drugs is a monumental undertaking that goes beyond the capabilities of an average factory.

Sun Xiaoyan’s grandfather, the founder of Tianhai Pharmaceuticals, Chairman Sun, was a man of great foresight. At the inception of Tianhai, he began searching for a promising new drug research company to grow alongside. It was during that period that Wan Kai, the chairman of Wanhai Technology, caught his eye. Wan Kai was an expert in pharmaceutical R&D who had previously led research at a top-tier pharmaceutical firm in the United States before deciding to branch out on his own.

Upon learning of Wan Kai’s intentions, Chairman Sun approached him. Knowing that Wan Kai would never settle for a subordinate role at Tianhai, the Chairman simply offered to invest five million to support his startup. Wan Kai, fresh out of the corporate world and in need of capital, was deeply moved by this show of support. Through friendly negotiations, the two parties reached a long-term cooperation agreement. That initial five million became the first investment in Wanhai Technology, allowing it to get off to a smooth start.

To repay the Chairman’s support, Wan Kai named the new company "Wanhai Technology." The "Wan" came from his surname, and the "Hai" was taken from Tianhai Pharmaceuticals, symbolizing that the two companies were like family. Furthermore, after Wanhai was established, Wan Kai gave Chairman Sun a 10% equity stake as a return on his investment.

At the time, many thought the Chairman had made a losing bet. As it turned out, Wan Kai was exceptionally talented. In its first year, Wanhai Technology developed two drugs that were in urgent demand, becoming an overnight success. One, a treatment for coronary heart disease, was produced and sold by Tianhai under a 60/40 profit-sharing model, bringing Tianhai at least forty million in net profit annually. The other, a medication for Parkinson’s disease, was bought out in a single lump sum for eighty million by a U.S. pharmaceutical company through a bidding process.

Wanhai Technology soon gained a stellar reputation, with major pharmaceutical companies clamoring to collaborate with them, all having witnessed the success of the partnership with Tianhai. However, to everyone’s disappointment, Wan Kai’s standards were incredibly high; he looked down upon ordinary firms. Only top-tier pharmaceutical companies were deemed worthy of partnering with Wanhai—though Tianhai Pharmaceuticals remained a special exception.

With the aid of Wanhai Technology, Tianhai Pharmaceuticals rapidly developed over the next decade, evolving from an obscure small factory into one of China’s top 100 pharmaceutical enterprises by the time Chairman Sun passed away.

However, no one expected that immediately following the Chairman’s death, the partnership between Tianhai and Wanhai would encounter a massive crisis, weighing heavily on Sun Xiaoyan’s mind.

"President Sun, please, come in."

Seeing Sun Xiaoyan hesitating outside the door, Fang Hai stepped forward, pushed the glass door open, and gestured with a welcoming smile.

Sun Xiaoyan pulled herself back to the present. With a composed expression, she walked into the conference room, followed closely by Ma Ping and the others.

The room was small and sparsely occupied by four or five people. Li Yuansheng stood in the center, looking furious as he glared at a balding man. Sun Xiaoyan recognized him instantly: it was none other than Wan Kai, the chairman of Wanhai Technology.

"President Sun, you’ve arrived." Seeing her enter, Li Yuansheng hurried over and whispered a few words into her ear. Though his voice was low, those standing behind her caught snippets of the conversation:

"...cease cooperation... compensation..."
"...if we are to continue... renegotiate equity..."
"...eighty-twenty split... 20% of Tianhai’s shares..."

As Li Yuansheng spoke, Sun Xiaoyan’s expression grew increasingly grim. She now understood why he was so enraged. Once Li finished, she turned her gaze toward Wan Kai, suppressed her anger, and sat down opposite him. "Chairman Wan, my grandfather has only just passed away. Is it not a bit excessive to treat Tianhai Pharmaceuticals this way?"

"President Sun, is it? Though this is our first meeting, I have long heard of you." Wan Kai’s face was indifferent. "Our previous partnership was between myself and Chairman Sun. Since he is gone, the terms naturally need to be renegotiated."

"Negotiation is fine, but aren’t your conditions too extreme?" Sun Xiaoyan did not yield, her tone sharp. "Not only do you demand compensation from us, but you want an 80% split on new partnerships, 20% of Tianhai’s equity, and you want us to return our shares in Wanhai Technology to you? I see no sincerity in these terms. Do you take Tianhai Pharmaceuticals for a subsidiary of Wanhai?"

"Ha!" A trace of mockery flickered across Wan Kai’s cold face. "President Sun, you’ve just taken over Tianhai. You haven’t grasped the reality of the situation. Tianhai’s success over the years has been built entirely on the strong support of Wanhai Technology. The three flagship drugs Wanhai provides to you currently account for 60% of your market share, don't they?"

Wan Kai sneered, continuing, "Let me remind you, President Sun: Tianhai only holds the production and sales rights to these three drugs. The patents belong to Wanhai Technology. We can revoke your authorization at any time, and then..."

He didn’t finish the sentence, but Sun Xiaoyan’s face had already gone pale. This was a blatant threat, and what made it so devastating was that it struck at the very heart of Tianhai’s survival.

"Well, I’ve made myself clear. I’ll give you three days to consider. If you find the terms too harsh, that’s fine; our partnership ends there. But I hope you won’t come to regret it later!"

With that, Wan Kai stood up and headed for the door. Just before leaving, he stopped and turned back. Seeing Sun Xiaoyan’s solemn expression, he laughed. "I just thought of another requirement. I don’t like you. If Tianhai wants to continue our partnership, you should step down. I think Sun Xuan would be a better fit—he’s much more suited to be president than you!"

"Hahahaha!"

Without waiting for her reaction, Wan Kai walked out of the room, followed by the rest of the Wanhai delegation.

The room fell silent, leaving only the team from Tianhai Pharmaceuticals, each looking at the other in stunned, heavy silence. Sun Xiaoyan watched Wan Kai depart. Though she was boiling with fury, her expression remained stoic, masking the turbulence within.