August 1, Wednesday, Shan City.
Chen Xi I didn't sleep well that night.
When I arrived at the company in the morning, it was half an hour earlier than usual.
She held the printed Bidiya semi-annual report in her hand. It was a thick stack, and the edges of the pages were marked with highlighters.
Su Wantang was already at Trading Room, with the fund schedule spread out in front of him, and he looked up at Chen Xi. "So early?"
"The semi-annual report is out." Chen Xi put the document on the table, "I sent it out last night because of the timing."
Su Wantang came over and stood next to her.
Chen Xi turned to the first page and pointed out the core data to her.
"In the first half of 2018, Bidiya achieved operating income of 54.151 billion yuan, a year-on-year increase of 20.23%.
The net profit attributable to Listed Company shareholders was 479 million yuan, a year-on-year decrease of 72.19%.
Net profit after deducting non-recurring gains and losses - a loss of 673 million yuan, compared with a profit of 1.115 billion yuan in the same period last year."
Su Wantang frowned.
"Excluding non-profit losses of 673 million? This number is worse than the first quarter report."
Chen Xi nodded.
"The first quarter reported a non-loss loss of 329 million, and the second quarter reported a non-loss loss of 344 million. There was no improvement.
And the impact of the subsidy reduction is still continuing--
During the transition period, the New Energy car subsidy will be implemented at 0.7 times the original standard. After the transition period, the subsidy standard will be further reduced."
She turned to the next page and continued reading.
"New Energy cars sold 75,800 units, a year-on-year increase of 121.06%. Sales volume increased, but profits disappeared.
Revenue is 54.1 billion, profit is less than 500 million, and profit margin is less than 1%. After deducting government subsidies, the main business is in the red."
Su Wantang was silent for a while, and then asked a very practical question.
"What was the broker's previous expectation?"
Chen Xi said.
"The revenue was expected to be around 53 billion, but the actual revenue was 54.1 billion, slightly exceeding expectations.
The net profit was expected to be 500 million to 600 million, but the actual profit was 479 million, which was slightly lower than expected.
The range of non-loss deductions is larger than what the brokerage expected."
She closed the document, picked up the water glass on the table and took a sip.
"Overall, it's terrible. Revenues are growing, profits are disappearing. The more you sell, the more you lose."
After chatting with Su Wantang, the two came to Zhao Chen's office together.
Su Wantang followed Chen Xi, holding a cup of freshly brewed Longjing in his hand.
"Zhao Zong, Bidiya's semi-annual report." Chen Xi put the file on Zhao Chen's desk and opened it to the page marked with a highlighter.
Zhao Chen sat down and took the file.
He did not flip through it in a hurry, but first took a sip from the tea cup handed to him by Su Wantang, and then started to read.
Chen Xi stood aside, waiting quietly.
There is only the sound of turning pages in Meeting Room.
Zhao Chen didn't read quickly, staying on each page for a few seconds, scanning the numbers, and occasionally stopping at a certain place.
After reading the last page, he closed the document and leaned back in his chair.
"It's really bad." Zhao Chen said, his tone was calm, as if he was saying something that was expected.
Chen Xi nodded. "Revenue was 54.1 billion, an increase of 20%, net profit was 479 million, a decrease of 72%, and non-loss was 673 million.
There was no improvement in the second quarter, which was a little worse than the first quarter report. New Energy The impact of the reduction of automobile subsidies is greater than expected."
Zhao Chen picked up the teacup and took a sip. "But it's also an opportunity."
Chen Xi looked at him.
Zhao Chen said, "The worse the semi-annual report is, the more the stock price will fall.
The harder the stock price falls, the lower our cost of opening a position.
Bidiya's sales are growing and its market share is expanding. The losses are due to the subsidy reduction, not because the cars cannot be sold.
Once the impact of subsidy reduction is digested, profits will come back."
He put down the teacup and looked at Chen Xi.
"After the market opens, Bidiya will most likely open lower. Be prepared, the Add Position will be Add Position. The lower it falls, the more you buy."
Chen Xi nodded. "Understood. After the announcement came out last night, I was thinking about today's strategy.
Continue buying below 40 yuan, and if it drops to 38 or 35, increase your buying efforts."
Zhao Chen said, "You don't have to wait until it's below 35.40, you can buy as much as you want. There is no lower limit."
He stood up and walked to the window.
"Market sentiment will amplify panic. When retail investors see a loss of 673 million due to deductions, their first reaction is to run.
Institutions will also reduce their positions when they see profits drop by 72%.
But what we see is - New Energy car sales have doubled, market share is expanding, and the industry is clearing.
All Bad News Out When subsidies are reduced, the surviving companies will live better."
He turned around and looked at Chen Xi. "It's less than an hour until half past nine. Go get ready."
Chen Xi picked up the documents and prepared to walk out with Su Wantang. They were ready for the transaction.
When she reached the door, she stopped and turned around. "Zhao Zong, aren't you worried?"
Zhao Chen looked at her. "What are you worried about?"
Chen Xi said. "2.5 billion funds, 2.5 times leverage.
If Bidiya continues to fall, our floating losses will expand. If the maintenance guarantee ratio falls below Warning Line--"
Zhao Chen interrupted her.
"It will not fall below. We only start building positions below 40 yuan, and the average cost is lower than the market price.
Even if it falls to 30 yuan, the guarantee ratio is still above the safety line. Moreover, Bidiya will not keep falling."
He paused and his voice became softer.
"Chen Xi, remember one thing - buying stocks is not about buying tomorrow's rise or fall, but about the future of the company.
The future of Bidiya is not in this semi-annual report. It is in its sales volume, its market share, and its technology accumulation.
None of this has changed."
Chen Xi was silent for a few seconds, then nodded. "Understood."
She turned around and walked out.
Su Wantang held the teapot, gave Zhao Chen a refill, and then followed him out.
At 8:55, Chen Xi sat in front of Trading Room's computer.
The pre-market quotation of Bidiya has come out - 39.5 yuan, which is 1.2 yuan lower than yesterday's closing price, a decrease of nearly 3%.
The selling orders are heavy, Buying Pressure is sparse, and the pending orders on the disk show that someone has placed a large sell order above 40 yuan.
"Opening low is a high probability." Su Wantang said next to him.
Chen Xi nodded. "Look at the thickness of the sell order at the market opening. It may go down after the market opens."
At nine fifteen, Call Auction starts.
The bidding price of Bidiya bounces back and forth between 39.3 and 39.8. Trading Volume is not large, but the selling price is obviously more than Buying Pressure.
At 9:25, Call Auction ended, and Opening Price settled at 39.2 yuan.
At nine-thirty, official trading begins.
Selling orders came out in droves, and the stock price instantly fell to 38.8 yuan. Chen Xi was not in a hurry to place an order.
She stared at the market, watched the strength of the selling orders, and waited for the first wave of Panic Selling to drive the stock price down.