At two o'clock in the afternoon on September 30, Shan City, Henglong Group Headquarters and Meeting Room.
The third Extraordinary Shareholders' Meeting in 2018 was held on time.
Meeting Room was full of people, lined up on both sides of Long Table - Board of Directors members, core executives, Shareholder Representatives.
Chen Xi is sitting on the right side of Zhao Chen, with a thick stack of documents spread out in front of him, which is the complete material of Q3 Report.
Su Wantang is sitting next to Chen Xi, holding a tea cup in his hand with a calm expression.
Zhang Qingxue is sitting opposite, with a laptop in front of him, and on the screen is a review form for Financial Data.
Liu Mingyu presided over the meeting, and the first item on the agenda was the report by Q3 Report.
Chen Qiming stood up, walked to Projection Screen, and opened the laptop.
His voice was much calmer than at the beginning of the year, and the data was reported one after another.
"Dear shareholders, in the first three quarters of 2018, the overall operating conditions of Henglong Group are as follows.
In terms of total assets, it was 17.7 billion yuan at the time of the interim report, and increased to approximately 17.8 billion yuan in the third quarter.
This is a continuation of Strategic Contraction - the main real estate business will no longer add new land reserves, inventories will continue to be eliminated, and non-Core Assets will continue to be liquidated.
In terms of total liabilities, it further dropped from the 5.85 billion yuan reported in the interim report to about 4.4 billion yuan, a drop of more than 24%, and the debt reduction progress far exceeded expectations."
Chen Qiming paused, switched to the next slide, and a set of comparison numbers appeared on the screen.
"In terms of net assets, it was 11.85 billion yuan at the time of the interim report, and increased to approximately 13.43 billion yuan at the end of the third quarter, a net increase of nearly 1.782 billion yuan from the beginning of the year.
The asset-liability ratio dropped from 49% at the beginning of the year to approximately 24.7% in the third quarter, exceeding the debt reduction target for the first three quarters ahead of schedule."
Chen Qiming continued, "In terms of net profit, the total in the first three quarters was approximately 1.78 billion yuan.
Among them, the main real estate business contributed about 300 million yuan, which was a decrease compared with the same period last year. This was mainly due to the initiative to shrink sales, discounts to remove inventory, and larger profits from non-Core Assets sales.
However, in terms of non-recurring profits and losses, Shunxin Agriculture's investment contributed 648 million yuan in net profit--
From the opening of the position at the end of March to the liquidation at the beginning of July, in less than four months, the return rate exceeded 300%."
Meeting Room was quiet for a moment. Some people were talking quietly, and some were recording numbers in their notebooks.
Chen Qiming continued:
"What's more noteworthy is that our Cash Reserves is very abundant.
As of the end of the third quarter, Henglong Group Consolidated Statements had approximately 6 billion yuan in cash and equivalents.
Among them, Henglong Real Estate has about 2.5 billion yuan in its account, and Henglong Group Headquarters has about 3.5 billion yuan in its account.
A considerable part of this cash comes from Shunxin Agriculture's investment income and Real Estate Sector's destocking repayment."
Chen Qiming Close the computer and return to your seat.
Liu Mingyu cleared his throat and added:
"Dear shareholders, the floating profit of Henglong Capital's Shares is approximately 830 million.
According to accounting standards, these stocks are included in assets based on the purchase price, and the appreciation is included in current profits and losses based on Fair Value.
But if calculated based on the closing price on September 29, the Unrealized Paper Profit of Henglong Capital is quite considerable."
Zhao Chen glanced at Chen Xi, Chen Xi understood, stood up, walked to Projection Screen, and opened the laptop.
A table appeared on the screen, listing detailed data on the three main holding stocks of Henglong Capital.
"Dear shareholders, let me report on the situation of the three main holding stocks Henglong Capital."
The voice of Chen Xi is very stable, and the data is reported one after another.
"The first one, Tongce Medical.
Henglong Capital holds 22.3 million shares, accounting for about 4.99% of the total share capital, which has reached the upper limit. We will not Add Position in the future. The holding cost is 44.97 yuan.
The closing price on September 29 was about 52.8 yuan, the floating profit per share was about 7.83 yuan, and Unrealized Paper Profit was about 175 million yuan.
The net profit in the semi-annual report increased by more than 50%, and the expansion of hospitals inside and outside the province is advancing simultaneously. There is no problem with the company Fundamentals. We believe that long-term holding will have good returns."
"The second one, Pianzaihuang. Henglong Capital, holds 16 million shares, accounting for about 2.65% of the total share capital. The holding cost is 93.56 yuan.
The closing price on September 29 was approximately 103.5 yuan, the floating profit per share was approximately 9.94 yuan, and Unrealized Paper Profit was approximately 159 million yuan."
"The third one, Bidiya. Henglong Capital, holds 65 million shares, accounting for approximately 2.38% of the total share capital.
This batch of stocks was completed in batches from July to September, with a total investment of 2.5 billion yuan and a weighted average cost of 38.5 yuan.
The closing price on September 29 was about 46.2 yuan, and the floating profit per share was about 7.7 yuan, and the 65 million shares of Unrealized Paper Profit were about 500 million yuan."
Chen Xi paused and added:
"Total of the three stocks, Tongce Medical has a floating profit of 175 million yuan, Pianzaihuang has a floating profit of 159 million yuan, and Bidiya has a floating profit of 500 million yuan. The total Unrealized Paper Profit is about 834 million yuan."
She closed the computer and returned to her seat.
Meeting Room was quiet for a few seconds, and then someone started applauding.
This is not the kind of perfunctory applause, but real and heartfelt recognition.
Shen Jue sat opposite Zhao Chen and looked at Chen Xi, with something inexplicable in his expression.
She picked up the tea cup and raised it slightly in the direction of Chen Xi. Zhao Chen leaned on the back of the chair and didn't say a few words from beginning to end.
He watched the Chen Xi report, watched the shareholders nod, and watched the numbers jumping on the screen, his expression as calm as a pool of water.
Liu Mingyu turned to the next page of the agenda.
"Dear shareholders, the next item on the agenda is the proposal to transfer the equity of Bubble Mary and Yunnan Agriculture Group to Henglong Capital."
Liu Mingyu's voice was unhurried, "Please Zhao Zong explain."
Zhao Chen leaned back on the chair and glanced around.
"Bubble Mart holds 26.3% of the shares and Yunnan Agriculture Group holds 20% of the shares. These two investments are currently on the account of Henglong Group Headquarters.
The assets are included at the purchase price, and the value-added part is not reflected. I suggest that all these two equity shares be transferred to Henglong Capital and managed by Henglong Capital."
Shen Jue flipped through the documents in front of him and asked, "How much will Henglong Capital's asset size increase after the transfer?"
Chen Xi replied from the side, "Bubble Mart's 26.3% shares are included in the purchase price of 360 million yuan;
Yunnan Agriculture Group's 20% shares were included in the purchase price at RMB 390 million, totaling RMB 750 million."
Sun Zhengping pushed up his glasses. "After the transfer, Henglong Capital's total assets will exceed 5 billion yuan."
This size is not small among the investment platforms owned by A-share Listed Company."
Zhao Chen nodded. "Yes. Henglong Capital needs this size. When making investments in the future, the larger the scale, the greater the bargaining chips."
Board of Directors The motion was quickly passed without much discussion.
Liu Mingyu Open the next page of the agenda.
"The third item on the agenda - the proposal to re-inject capital to Henglong Capital. Please explain to Zhao Zong."
The atmosphere in Meeting Room has changed.
The sense of relaxation just now disappeared, replaced by a kind of solemn expectation.
2.5 billion is not a small amount. Although Henglong Group has 3.5 billion in cash in its account, every penny must be spent wisely.
Zhao Chen picked up the tea cup, took a sip, and then put it down.
"Henglong Real Estate has 2.5 billion in cash on its account, which is enough to cover the expenses of the real estate business in the next two years.
The group headquarters has 3.5 billion in cash on its books, which cannot be left here to gather dust.
I propose to use 2.5 billion from it to inject another capital into Henglong Capital. This money should be used to invest in Baijiu Industry."
Shen Jue looked at Zhao Chen with a trace of scrutiny in his eyes.
"Zhao Chen, big consumption is currently in a slump. Baijiu Industry has fallen from the high point in 2016 for two years.
Maotai all fell from 800 to 600, Wuliangye cut in half, Yanghe and Luzhou Laojiao are all falling.
You want to invest 2.5 billion into Baijiu at this time, what is your basis?"
Zhao Chen did not answer immediately.
He glanced at Su Wantang.