At nine o'clock the next morning, Henglong Building 28th floor, big Meeting Room.
Last night Zhao Chen asked Su Wantang to notify several Confidant among the company's senior executives that there will be a meeting today.
Su Wantang informed you very well.
At nine o'clock sharp, the seven people who were notified were already sitting in Meeting Room.
Chen Xi is still holding a half cup of unfinished coffee in his hand.
Zhang Qingxue The notebook in front of him has been opened.
Chen Wei sat with his pen down, Liu Mingyu flipped through his phone, Song Zhongping leaned on the back of the chair and drank tea, Chen Qiming had a stack of Financial Statement in front of him.
Zhao Chen pushed the door in and sat down at the main seat of the long table.
He glanced at the people present - Chen Xi, Zhang Qingxue, Chen Wei, Liu Mingyu, Song Zhongping, Chen Qiming and Su Wantang beside him.
Henglong's current core team.
"We have this meeting today to talk about two things."
Zhao Chen Get straight to the point,
"First, Eagle Group Q3 Report came out and the situation is not good.
Second, Henglong's entry into Live Pigs breeding needs to be discussed again."
He motioned to Chen Xi.
Chen Xi called up the projection, and a simplified version of last night's data was displayed on the screen.
Eagle Group Q3 Report core data in 2017:
Non-net profit in the third quarter: 86 million, -40.46% year-on-year.
Non-net profit for the first three quarters: 358 million, -13.42% year-on-year.
Non-recurring gains and losses: 135 million (sale of assets, equity conversion).
Performance forecast: The full-year target of more than 460 million set during the private placement will most likely not be achieved.
Meeting Room was quiet for two seconds.
Song Zhongping was the first to speak, with a hint of schadenfreude in his tone:
"You deserve it. I took over the order at 23 times, and now the profit in the third quarter has dropped by 40%. How swollen is Lu Shen's face?"
Chen Qiming pushed up his glasses:
"It's not just about profits. Look at their cash flow - 473 million, a year-on-year decrease of 9.68%.
The hematopoietic capacity of the main business is declining, financial costs are increasing, and the hole will only get bigger and bigger.
The most important thing is that the whereabouts of Private Placement's funds are unknown."
Liu Mingyu answered:
"I saw yesterday that the top executives of Weibo, Lu Shen and Eagle were shouting at each other.
Lu Shen asked Shareholders' Meeting to elect additional directors, but Eagle kept delaying.
After the Private Placement money arrived, it was said that it was used to pay off old debts and was not used to expand production capacity at all."
Chen Xi added:
"Internal information says that the hole in Eagle is much larger than what is shown in the report.
Those so-called 'diversified layouts' - bank equity, Shaxian snack cooperation - are all glamorous on the surface, but they actually contribute very little profit.
Moreover, these things take up a lot of funds, and the cash flow has long been out of control."
Zhang Qingxue pushed up his glasses:
"If Lu Shen cannot enter Board of Directors and the accounts cannot be checked, the 2.07 billion will be wasted.
He can only watch the money being misappropriated and watch the stock price fall, unable to do anything."
Chen Wei said nothing in the song.
She listened quietly, occasionally jotting down a few notes in her notebook.
Zhao Chen looked at her:
"Chen Wei, what do you think?"
Chen Wei raised his head:
"Chairman Zhao, I have been in contact with Eagle before. Their management is very chaotic and their finances are not transparent.
At that time, we Haoyu almost cooperated with them on a project, but in the end the negotiation failed because the accounts could not be reconciled."
She paused:
"Lu Shen This time, I was fooled by the brand 'Listed Company'.
I feel that the company listed on A-share must have a clean foundation.
But he doesn't know that some Listed Company's accounts are even messier than those of non-Listed Company."
Song Zhongping laughed:
"23 times the offer, 20% of the shares, three Board of Directors Seat.
How glorious was it then? What about now? Even Board of Directors can't get in, money has been misappropriated, and performance has changed. Lu Shen is in trouble this time."
Liu Mingyu couldn't help laughing either:
"I heard that he lost his temper in the company these days and threw several cups. No one under his command dared to come near him."
Chen Xi looked at Zhao Chen:
"Zhao Zong, did you see it a long time ago?"
Zhao Chen shook his head:
"It's not about seeing, it's about judging."
He leaned back in his chair:
"Eagle's problem is actually written on the surface.
The debt ratio is high, the main business is declining, and profits are supported by investment.
Their "diversified layout" sounds good, but which one can really contribute to profits?
Bank equity? How much can the dividend be? Shaxian snacks? How many years will it take for the renovation of 60,000 stores to be completed? "
He paused:
"I brought Lu Shen into the game because of these.
Buying an uncertain future at 23 times is too risky."
Song Zhongping nodded:
"So Lu Shen is clever but mistaken for cleverness."
Zhang Qingxue pushed up his glasses:
"But this time he stepped on the trap, and it was worth it. At least it made the market see clearly that not all pig companies are worth investing in."
Chen Qiming answered:
"And his stepping on it actually brought out the caution of our Henglong.
We also have plenty of cash. We choose to wait, but he chooses to rush.
The result? Our stock price reached a new high, and his money was locked up."
Liu Mingyu smiled from ear to ear:
"Chairman Zhao, your game of chess is at the textbook level."
Zhao Chen smiled slightly:
"I don't know how to play chess. I just took advantage of Lu Shen's eagerness for quick success."
He looked at everyone:
"I am not bringing this matter up today just to make fun of Lu Shen.
This is to remind everyone that you must keep an eye on the debt ratio at all times."
His voice deepened:
"Eagle's problem is ultimately that the debt is too high.
If the hematopoietic ability of the main business cannot keep up, he can only rely on borrowing money to support it.
If you can't keep borrowing money, you tell stories. If you can't tell stories anymore, you collapse."
He looked at Chen Qiming:
"Director Chen, you deal with numbers every day, so you should know best."
Chen Qiming nodded:
"Yes. Debt ratio is the lifeline.
If it exceeds 80%, the slightest disturbance will be dangerous.
If it exceeds 100%, you are basically waiting to die."
Zhao Chen looked at Chen Wei:
"Haoyu's previous problem was that the debt was too high.
Although it has slowed down now, we must control the leverage in the future progress of the project.
Don't borrow money if you can't help it. When you have to borrow money, you must calculate the account clearly."
Chen Wei nodded:
"Understood."
Zhao Chen scanned around:
"Henglong will continue to look for opportunities in the Live Pigs breeding industry.
But the principle remains unchanged - Strategic Investment can, provided the debt ratio is controllable.
It's best to find a company with low debt, good cash flow, and a reliable team."
He paused:
"If you can't find it, keep waiting. It's better to miss it than make a mistake."
Song Zhongping smiled and said:
"Chairman Zhao, if Lu Shen hears your words, he will cry."
Zhao Chen knocked on the table regularly:
"He won't cry. I guess he will continue to gamble. People who sit on the gambling table will not leave it easily without losing their fortune."
He stood up:
"That's it for today, let's break up the meeting."
The six people left one after another.
Liu Mingyu was looking at his phone while walking. Song Zhongping and Chen Qiming were chatting in a low voice. Chen Wei closed the notebook, nodded towards Zhao Chen, and then opened the door and went out.
It's quiet in Meeting Room.
Only Zhao Chen, Chen Xi and Su Wantang are left.
Zhao Chen didn't move. He leaned on the back of the chair and looked at Chen Xi.
Chen Xi didn't move either.
She was still holding her mobile phone in her hand, and the screen was on, apparently she was watching something just now.
Zhao Chen knew that she had something to say, so he waited for her to speak.
"Zhao Zong," Chen Xi took a deep breath, "Yunnan Agriculture Group, there are new changes over there."