Su Wantang saw that he was a little distracted, so he started to clean up Dining Table.
Soon, she put the dishes and chopsticks into the kitchen, walked out and sat down next to Zhao Chen.
Zhao Chen suddenly remembered something:
"By the way, help me print the file sent by Chen Xi. Q3 Report from Eagle Group."
"Okay! I'll go right away."
Su Wantang stood up and walked to Study.
After a while, he came out with a stack of A4 paper that was still warm from the printer and handed it to Zhao Chen.
"Want tea?" she asked.
Zhao Chen took the file:
"Okay."
Su Wantang went to make tea. Zhao Chen leaned on the sofa and turned to the first page.
Eagle Group Co., Ltd.
2017 Third Quarter Report (Summary)
Core Financial Data:
Operating income was 1.212 billion yuan, a year-on-year decrease of 15.91%;
From the beginning of the year to the end of the reporting period, the total amount was 3.735 billion yuan, a year-on-year decrease of 12.54%.
Net Profit Attributable to Parent 098 million yuan, a year-on-year decrease of 25.41%;
From the beginning of the year to the end of the reporting period, the total amount was 358 million yuan, a year-on-year decrease of 8.21%.
Non-net profit after deduction was 86 million yuan, a year-on-year decrease of 40.46%;
From the beginning of the year to the end of the reporting period, the total amount was 362 million yuan, a year-on-year decrease of 13.42%.
Basic earnings per share were 0.0601 yuan, a year-on-year decrease of 25.41%; from the beginning of the year to the end of the reporting period, the cumulative earnings were 0.2069 yuan, a year-on-year decrease of 8.21%.
In terms of non-recurring gains and losses, gains and losses from the disposal of non-current assets were 72.61 million yuan, mainly gains from the disposal of breeding farms; gains from equity transfer were 67.05 million yuan.
Other key information:
Total assets are 21.07 billion yuan, an increase of 24.48% from the beginning of the year;
Net assets attributable to the parent company were 5.60 billion yuan, an increase of 9.08% from the beginning of the year;
Net cash flow from operating activities was 473 million yuan, a year-on-year decrease of 9.68%.
Data source: Eagle Group 2017 third quarter report.
Zhao Chen's eyes paused for a few seconds on the line "Non-net profit deduction decreased by 40.46% year-on-year".
A 40% decline.
The main business has become so rotten.
He continued to turn back.
Chen Xi has attached a document, the title is in red letters:
[Insiders reveal secrets-please do not spread them]
Zhao Chen frowned slightly and continued to look down.
"According to an insider close to Eagle's top management:
1. Board of Directors's internal battle is heating up.
After the additional issuance was completed, Lu Shen requested that Extraordinary Shareholders' Meeting be held immediately to elect three additional directors.
However, Eagle kept delaying the process on the grounds that it needed time to prepare.
The two sides have been shouting at each other on Weibo during this period, and the smell of gunpowder is very strong.
2. The whereabouts of Private Placement's funds remain a mystery.
After the 2.07 billion was received, part of it was indeed used to expand the scale of breeding - building several new pig houses and buying a batch of breeding pigs.
But more of the money is unaccounted for.
Insiders said that Eagle's hole was much bigger than imagined, and the money was either used to pay off old debts or to purchase inferior assets in Major Shareholder's hands.
3. Lu Shen is now in a difficult position.
He wants to enter Board of Directors, wants to check the accounts, and wants to find out where the money went.
But Eagle is not cooperating at all. Both sides are already at odds.
4. The most fatal thing is - someone inside Eagle revealed that the performance of the western quarter may be worse than that of the third quarter.
Pig prices are still falling, costs are still rising, and financial expenses are skyrocketing.
That full-year profit forecast of more than 460 million yuan is highly likely to be slapped in the face."
Zhao Chen After reading it, he put the file on the coffee table.
Su Wantang came over with tea and sat down next to him:
"What's wrong?"
Zhao Chen picked up the tea cup and took a sip:
"Eagle is going to explode over there."
Su Wantang glanced at the numbers on the document:
"So serious?"
Zhao Chen nodded:
"It's more serious than I thought."
He leaned on the sofa and looked out the window. The city lights flickered in the night, like countless peeping eyes.
"Look at this data," he pointed to the report.
"The net profit in the first three quarters was 358 million, which looks pretty good.
But after deducting the money from selling assets and transferring equity, the main business is only less than 300 million.
The third quarter was even worse in a single quarter, deducting non-net profit of 86 million, which was 40% less than last year."
He paused:
"The main pig-raising industry can no longer sustain itself."
Su Wantang asked softly:
"What about their cooperation with Shaxian Snacks? And those bank equity interests?"
Zhao Chen shook his head:
"It's all a story. Shaxian Snacks has only renovated a few hundred of those 60,000 stores? How much can the bank's equity and dividends be?
These so-called diversified layouts may sound nice, but they actually contribute very little profit."
He looked at Su Wantang:
"Do you know what I'm most afraid of?"
Su Wantang looked at him.
Zhao Chen said:
"What I fear most is this - if the main business fails, I will just tell stories everywhere.
Today we talk about deploying finance, tomorrow we talk about integrating channels, and the day after tomorrow we talk about developing the Internet.
It sounds high-minded, but in fact they are just trying to find steps for themselves."
He picked up the tea cup and took a sip:
"Raising pigs is hard, tiring work and requires down-to-earth work.
Why can Muyuan survive? Because they focus solely on raising pigs and keep costs the lowest in the industry.
Why is Wens stable? Because the 'company + farmer' model has been developed bit by bit over decades."
He put down the teacup:
"What about Eagle? If you can't raise pigs well, you'll go into finance.
I couldn't understand finance, so I went to do Shaxian Snacks again.
I want to catch everything, but I can't catch anything.
In the end, we can only maintain our financial statements by selling assets and equity."
Su Wantang listened quietly.
Zhao Chen continued:
"Lu Shen thought he got a bargain.
23 times the offer, 20% of the shares, three Board of Directors Seat. He felt he had won."
He smiled, the smile was very light:
"He didn't know what kind of deal he was getting. Those diversified layouts looked like stories, but they were actually holes.
If Private Placement money is put in, it won't even make a splash."
Su Wantang asked softly:
"Then when will he find out that he has been cheated?"
Zhao Chen thought for a while:
"It's coming soon. Wait for the western quarterly report to come out, or wait for the annual report to come out.
When the stock price drops, he will throw back all his floating profits. No matter how much he wants to run away, he will not be able to run away."
He looked out the window:
"The worst thing is that Eagle Group becomes insolvent one day.
As for Lu Shen, Board of Directors can't get in, can't check the account, and can't get the money back. He can only stare."
Su Wantang leaned on his shoulder:
"So you knew something was going to happen with Eagle?"
Of course Zhao Chen will not tell him, Previous Life Eagle will eventually be delisted.
He just held her hand:
"If I didn't want to trick Lu Shen, I wouldn't even take a look at a blind cross-border diversified enterprise like Eagle Group."
He paused:
"There are no shortcuts in pig farming. Anyone who wants to take shortcuts will die on the road."
The sentence Zhao Chen is not only a comment on Eagle Group, but also a warning to oneself.
There are no shortcuts in the world. Instead of looking for investment targets, Lu Shen wants to cut off the investment, which is why the speculative mentality backfires.
Now, he has fallen into the pit and it is impossible to climb out.
He has already stepped on the landmine with both feet, waiting to see when it will explode.