June 23, 9 am, banquet hall on the third floor of Marriott Hotel.
The crystal chandelier illuminated the entire banquet hall.
The hall, which can accommodate 300 people, was packed.
The shareholders were talking to each other in twos and threes. Some were looking at the meeting materials in their hands, some were looking down at their mobile phones, and some were looking up at the rostrum from time to time.
A banner hung above the rostrum: "Henglong Group 2017 Second Special Shareholders Meeting".
Below the banner, Liu Mingyu is making final confirmations with the staff.
Zhao Chen is sitting in the aisle seat in the first row.
A few rows behind him, Shen Jue was sitting with the three fund managers.
She wore a dark blue suit today, which was more formal than yesterday, but the "everything is under control" expression on her face remained unchanged.
A fund manager next to him was looking down at his mobile phone, and the other was flipping through meeting materials.
In the corner, a girl wearing a baseball cap and black-rimmed glasses sat quietly.
She was wearing an ordinary white T-shirt and jeans, with light makeup on her face and a low-brim hat.
If you don't look carefully, you won't notice her at all - let alone think that this girl who looks like a college student holds 5% of the shares of Henglong.
Shen Zhiyi.
She didn't want to come.
But Chen Xi sent her a message last night:
"Your right to vote is very important. Besides, on such an important day, don't you want to see him stand on the stage with your own eyes?"
So she came.
Put on makeup, wear a hat, sit in the corner.
No one paid attention to her.
Just right.
Su Wantang and Chen Xi were sitting on the other side, and Zhang Qingxue was sitting next to them, holding the copy of Legal Document that they had rushed out overnight.
Nine o'clock sharp.
Liu Mingyu stood up, walked to the speaking table, and cleared his throat:
"Good morning, fellow shareholders. Henglong Group The second Special Shareholders Meeting in 2017 begins now."
He paused and glanced across the audience:
"There are three items on the agenda for today's meeting:
First, listen to a description of the company's financial situation;
Second, vote on the Whitewash Waiver motion regarding Mr. Zhao Chen's transfer of Mr. Zhao Jianguo's shares;
Third, elect the new Board of Directors members."
"Now, please, Mr. Finance Director Chen Qiming, introduce to you the company's recent financial status."
Applause broke out.
Chen Qiming walked up to the speaking table, holding a document in his hand.
He stood in front of the microphone and was silent for two seconds.
In those two seconds, his eyes swept across the entire venue and finally landed on Zhao Chen.
Zhao Chen nodded slightly.
Chen Qiming took a deep breath and spoke.
Chen Qiming spoke
"Good afternoon, fellow shareholders."
Chen Qiming's voice spread throughout the audience through the speakers, calm and clear.
"Everyone knows that Henglong's annual report data at the end of last year shows:
Total assets are 15 billion, total liabilities are 9 billion, and net assets are 6 billion."
He paused:
"But what I'm going to talk about today is a little different.
After Zhao Chen Chairman took over Henglong, at his request, the company conducted a comprehensive investigation of all off-balance sheet financing in the past five years."
As soon as the word "off-balance sheet financing" came out, there was a slight commotion in Meeting Room.
In the audience, the fund manager next to Shen Jue came over and lowered his voice:
"Off-Balance Sheet Liabilities? This is industry practice, he dares to say it?"
Shen Jue didn't look back, but raised the corner of his mouth slightly:
"Dare. That's why it's interesting, otherwise director Lin Wanqing wouldn't have resigned."
Chen Qiming continued:
"The result of the thorough investigation is - Off-Balance Sheet Liabilities totaling 3 billion yuan."
Meeting Room instantly exploded.
"3 billion?!"
"So many?!"
Some people stood up, some whispered to each other, and some turned pale.
In the corner, Shen Zhiyi's hands were slightly clenched.
She looked at the middle-aged man who spoke calmly on the stage, and then at the familiar figure in the front row.
Zhao Chen is motionless, like a sculpture.
Chen Qiming waited a few seconds for the voice to subside slightly before continuing:
"Everyone, please listen to me."
He raised his voice:
"Under the leadership of Zhao Chen Chairman, the company established a dedicated Off-Balance Sheet Liabilities cleanup team.
So far, we have completely solved the problem of Off-Balance Sheet Liabilities worth 1 billion yuan.
The remaining 2 billion yuan is being liquidated in an orderly manner."
Meeting Room became quiet again.
In the back row, a fund manager whispered to Shen Jue:
"3 billion Off-Balance Sheet Liabilities, Henglong actually took the initiative to expose it... This is too courageous."
Shen Jue finally turned his head and glanced at him:
"If it is not exposed, the thunder will always be there. If it is exposed, the thunder will be eliminated."
She paused:
"Before Zhao Jianguo happened, the market only valued Henglong at 4 billion. Why? It was because of worries about these invisible debts.
Now that the debt is on the table, it can be revalued."
The fund manager nodded thoughtfully.
Chen Qiming's voice continued:
"At the same time, in the past six months, the company achieved a profit of 400 million yuan and raised 1 billion yuan through Stock Issuance.
Together, these two items have increased the company's net assets by 1.4 billion yuan."
"And under Zhao Chen Chairman and Strategic Adjustment, the company took the initiative to repay 1.2 billion yuan of high-interest debt."
He raised his head:
"This goes in and one goes out, and the result is:
Total assets increased to 15.2 billion yuan, total liabilities dropped to 7.8 billion yuan, and net assets increased to 7.4 billion yuan."
"If Off-Balance Sheet Liabilities is combined, the total liabilities are 9.8 billion yuan, the total assets are 15.2 billion yuan, and the net assets are also 5.4 billion yuan."
He quoted two numbers:
"The debt ratio is 51.31%. After merging Off-Balance Sheet Liabilities, the debt ratio is 64.47%."
Meeting Room is so quiet that you can hear the hum of the air conditioner.
In the back row, Shen Jue nodded slightly.
The fund manager next to him murmured:
"64.47%... This is at least 10 points lower than the industry average. This is the result of merging Off-Balance Sheet Liabilities."
Shen Jue said nothing, but the smile at the corner of his mouth became a little deeper.
Chen Qiming continued:
"More importantly, the company has not conducted a single high-interest financing in the past six months.
All new funds come from Equity Financing and operating profits.
It is expected that interest expenses this year will be reduced by at least RMB 100 million compared with last year."
He paused:
"I can understand the market's concerns, but Henglong will never waver in implementing its strategy of reducing debt ratios.
Now, the debt ratio has dropped and interest expenses have decreased - the market will give the answer as to how the valuation will go."
Applause broke out.
There were a few sparse sounds at first, then they became more and more dense, and finally merged into one.
Someone shouted:
"Okay!"
In the corner, Shen Zhiyi's eye sockets were slightly red.
She looked at the back of the person in the front row and the people applauding around her, feeling an indescribable emotion well up in her heart.
This man really did it.
After the applause died down, Liu Mingyu walked to the stage again:
"Next, please give the floor to Zhao Chen Chairman."
Zhao Chen stood up and walked to the speaker's seat.