Song Zhongping turned over the report in his hand and added:
"The management adjustment happened after Spring Festival, and it's only been more than a month now. The effects haven't been seen yet, right?"
Chen Xi nodded. "Mr. Song is right. The effect has not been fully reflected on Financial Report, but market expectations have begun to change.
The management adjustment itself is a signal - Shunxin Group has put the person who knows the most about the capital market in the position of general manager, indicating that they may make big moves next."
She switched to the third slide, which was a summary table of brokerage research.
"The second key change is the market performance of Baijiu business.
Although the first quarter report has not yet been released, several brokerages have conducted channel surveys and the expectations are generally good.
The market expects Baijiu business revenue to grow between 35% and 40% in the first quarter, and the net profit growth rate will be much higher than the revenue growth rate."
Sun Zhengping frowned. "Income increased by 35% to 40%? What was Niba Mountain Erguotou's income last year?"
Chen Xi turned the page of the report.
"Last year, Niba Mountain Erguotou's annual revenue was approximately 6.5 billion, a year-on-year increase of 24%.
If the growth rate of 35% to 40% can be maintained in the first quarter of this year, it is highly likely that the annual revenue will exceed 8 billion or even 9 billion.
Several institutions predict that Niba Mountain Erguotou's full-year revenue in 2018 may reach about 9.2 billion, a year-on-year increase of more than 40%."
Meeting Room was quiet for a moment.
9.2 billion--this number means huge sales volume and terminal penetration rate for a low-end Baijiu brand that sells for more than ten yuan per bottle.
Chen Xi Switch to the fourth slide, which is a chart of market share changes.
"The third key change is that Niba Mountain Erguotou's market share is rapidly increasing.
The low-end Baijiu market is clearing out at an accelerated pace, and competitors - such as Lao Cunzhang and Black Land - have already shrunk significantly in some areas.
The original words of the agency's research report are - 'With the withdrawal of competitors, the company's main product, aging wine, has shown an obvious acceleration trend in low-end Baijiu in many regions'."
She paused and pointed to a red line on the picture.
"Nibashan's national layout began in 2013.
By this year Spring Festival, a billion-yuan market has been formed in 18 provincial-level regions including Hebei, Inner Mongolia, Jiangsu.
The market growth rate of Yangtze River Delta exceeds 70%, and the growth rate of emerging markets such as Fujian and Xinjiang exceeds 50%.
This growth rate is unique among the low-end Baijiu Industry."
Shen Jue turned to the last page of the report, looked at the map of national layout, and asked:
"How big is the market space for low-end Baijiu?"
Chen Xi Switch to the fifth slide, which is an industry scale forecast chart.
"Low-end Baijiu refers to Baijiu below 50 yuan. The main consumer groups are migrant workers in cities and rural residents in towns and villages.
The market capacity is about 200 billion yuan, and the market concentration is very low.
In terms of sales volume, Nibashan's market share in 2018 was approximately 9%;
In terms of revenue, the market share is approximately between 4% and 6%.
The industry CR3 is less than 12%. There is huge room for improvement in the leading market share."
She switched to the sixth slide, which was a comparison chart of advance receipts.
"There is also a very critical data - advance receipts. At the end of last year, Shunxin Agriculture's advance receipts had reached 3.7 billion.
Baijiu Industry There is a saying that advances from receipts are a reservoir of income. The 3.7 billion in advances from receipts is equivalent to more than 30% of last year's annual income.
This water level ranks first among Baijiu Listed Company."
Chen Xi closed the laptop and returned to his seat.
Meeting Room was quiet for a few seconds, everyone was looking through the reports in their hands.
Shen Jue read it very carefully, staying on each page for more than ten seconds, occasionally drawing a circle next to a certain number.
Sun Zhengping pushed up his glasses, turned the report to the first page, and read the management adjustments part again.
Wu Hongyuan leaned on the back of the chair and crossed his hands on his chest, as if he was thinking about something.
Zhao Chen did not rush. He picked up the tea cup, took a sip of tea, and waited for the directors to digest the information.
"Dear directors," Liu Mingyu's voice broke the silence,
"The third agenda item - the investment feasibility report of Shunxin Agriculture, has been completed.
Directors are requested to review the contents of the report. If you have any questions, you can ask Zhao Zong or Chen Xi."
As soon as Liu Mingyu finished speaking, the sound of turning paper was heard in Meeting Room.
The directors opened the "Shunxin Agriculture Investment Feasibility Report" and their eyes stayed on the cover for a few seconds. Some nodded and some frowned.
Sun Zhengping was the first to speak. He pushed up his glasses and spoke in an unhurried voice.
"Assistant Chen, how big is this company? How much is the total equity? What is the stock price? If we want to invest, how much can we buy?"
Chen Xi stood up, walked to Projection Screen again, and opened the laptop.
A share capital structure chart of Shunxin Agriculture appeared on the screen.
"The total share capital of Shunxin Agriculture is approximately 570 million shares, all of which are tradable shares and there are no restricted shares.
Based on the closing price of the most recent trading day - about 18.2 yuan - the total market value is about 10.4 billion, and the circulating market value is also 10.4 billion."
The voice of Chen Xi is very stable, and the data is reported one after another.
"Controlling Shareholder is Shunxin Holdings Group Co., Ltd., holding approximately 278 million shares, accounting for 48.85% of the total share capital."
Shen Jue turned to the shareholder structure page of the report, and his eyes paused on the numbers for a moment.
"48.85%... close to 49%. At this ratio, Controlling Shareholder and Control are very stable."
Chen Xi nodded.
"Yes. Shunxin Holdings is a platform owned by Shunyi District State-owned Assets Supervision and Administration Commission. It has a state-owned background and will not reduce its holdings in the short term.
Other shareholders are mainly institutional investors and index funds."
She switched to the next slide, which was a chart of ten Major Shareholder shareholding ratios.
"The second Major Shareholder is China Merchants CSI Liquor Index Fund, holding approximately 4.93% of the shares;
The third largest is Penghua CSI Liquor ETF, holding about 2.25% of the shares;
The shareholding ratios of the fourth to tenth Major Shareholder are all below 1.5%. The top ten Major Shareholder hold a total of about 58% of the shares."
Zhao Chen leaned on the back of the chair and said nothing.
He was waiting for the directors to ask the most critical question - how to buy and how much to buy.
Wu Hongyuan put down the report and looked at Zhao Chen.
"Chairman Zhao, if you decide to invest, what are you going to do?"
Zhao Chen took over the conversation and leaned forward slightly.
"Buy Secondary Market. Scan directly at Secondary Market, do not participate in Private Placement, do not negotiate with Major Shareholder, do not sign any drawer agreement. Clean and tidy."
Meeting Room was quiet for a moment.
Secondary Market buy--this means that you don't need to say hello to anyone, no need for approval, no need to disclose, as long as you have money, you can do it at any time.
Sun Zhengping asked again. "How much to buy? How to determine the share?"
Zhao Chen leaned on the back of the chair and tapped his fingers lightly on the armrest.
"No more than 5%. 5% is a watershed - if it exceeds 5%, you must raise a sign, disclose it, submit a simplified equity change report, and be locked in for six months and cannot sell.
Trouble. Below 5%, you can come and go freely, without alerting anyone, and without triggering disclosure obligations."
He paused and added.
"Moreover, less than 5% will not cause Major Shareholder to be alert. Shunxin Holdings holds close to 49%, and our 4.99% will not threaten his Control.
He won't treat us like savages at the door."
Shen Jue put down the pen and looked at Zhao Chen.
"How much capital does 5% correspond to?"
Chen Xi did a quick calculation.
"Based on a stock price of 18.2 yuan, 4.99% corresponds to approximately 28.4 million shares, which requires approximately 517 million people RMB."
Shen Jue nodded and did not ask any more questions.
Sun Zhengping turned to the last page of the report, looked at the stock price chart, was silent for a few seconds, and then said something that no one expected.
"Chairman Zhao, I agree with this target."