"Write it as it is."
Zhao Chen's voice is not high, but every word is pronounced very steadily.
"Henglong Group's main business has changed from real estate Real Estate Development to investment holding starting from this reporting period. The reason for the change is strategic transformation."
Chen Xi's fingers paused on the keyboard for a moment, and then typed.
Su Wantang walked out of Suite, holding a cup of freshly brewed Pu'er in his hand.
When she placed the tea cup next to Zhao Chen's hand, she lightly pressed her fingertips on the back of his hand.
"What are you thinking about?"
Zhao Chen picked up the teacup and blew the tea leaves floating on the rim of the cup.
The lights Manhattan outside the window were extinguishing brightly in the night, like a sea of burning stars.
"I'm thinking about when I first took over at the end of 2016.
Henglong Holdings is still called Henglong Holdings, and Board of Directors is still my world, Father Zhao Jianguo. I have 12 billion debts on my account, the stock price is around 6 Hong Kong Dollar, and the market value is more than 2 billion.
Chen Xi is still working as her counselor, and Aunt Zhang has not jumped from the law firm yet."
He took a sip of tea and said, "Two years."
Su Wantang sat down next to him and did not answer.
"In two years, liabilities of 12 billion have become 3 billion, net assets have increased nearly five times, and profits have increased from 900 million to 2.55 billion.
The stock price has risen from more than 6 yuan to more than 40 yuan, and the market value has increased from less than 2 billion yuan to more than 20 billion yuan.
Henglong's main business has changed from real estate to investment, and Henglong Capital's position in A-share exceeds 11 billion."
He put down the tea cup and looked out the window.
"Wantang, do you know? From the report, these numbers are just numbers.
But behind every number are people. Chen Wei National Day didn't go home for seven days during the promotion, and Chen Qiming led the financial team to reconcile the accounts all night long.
Chen Xi tore through the patent documents for Bidiya's Blade Battery. Aunt Zhang flew between Beijing and Shan City for who knows how many times before he straightened out the chain of Mololoy's Copyright.
There are also Zhou Bingcheng, Old Fang, they burned them for four years, and burned away three Co-founders, burning half of their hair white."
Su Wantang's hand covered his hand that was resting on the armrest of the sofa.
Her hands are small, with warm palms and soft fingertips.
"And you. You translated CTI's test report into English under the launch pad of Boca Chica and put it in front of Elon Musk,
You stood up for Zhou Bingcheng at the negotiation table to block Deputy General Manager Zheng's flimsy threats, and you moved Era Vanguard's US Dollar capital from Wall Street to Zhangjiang's Small Meeting Room.
Xiao Chen, Henglong The reason why you have made it this far is not because you can see farther than others.
It's because you blocked the weight that should have fallen on the people you liked."
Zhao Chen's fingers tightened slightly.
When Liu Mingyu received Zhao Chen's reply, Hong Kong Stock Exchange's announcement system was closed for forty minutes.
He checked the final draft of the annual report from beginning to end - total assets were 17.3 billion, total liabilities were 3 billion, net assets were 14.3 billion, and net profit was 2.55 billion.
Every number was checked three times and confirmed to be completely consistent with the first draft of the audit.
The mouse hovered over the "Submit" button for two seconds, and then clicked.
An announcement of Henglong Group popped up on the Hong Kong Stock Exchange HKEXnews website.
The annual report forecast has not been audited, but the core data has been determined.
At the end of 2018, total assets were 17.3 billion, a decrease of 5.55 billion from the beginning of the year.
Total liabilities are 3 billion, a decrease of 8.2 billion from the beginning of the year. Net assets are 14.3 billion, an increase of 2.65 billion from the beginning of the year.
The annual net profit was 2.55 billion, of which the main real estate business contributed 500 million and investment income contributed 2.05 billion.
This announcement did not disclose the specific position of Henglong Capital.
The shareholding details of Tongce Medical, Pianzaihuang, Bidiya, Shanxi Fenjiu, and Wuliangye are not listed.
There is no mention of any information about Yunnan Agriculture Group, Bubble Mary, Green Energy Technology.
There are only three sets of numbers - total assets, total liabilities, and net profit. But these three sets of numbers are enough.
It is enough for any institution with basic financial analysis capabilities to come to a conclusion within ten minutes: Henglong Group is no longer a real estate company.
Hong Kong Stocks's institutional investors are not fools.
Total assets dropped from 22.85 billion to 17.3 billion, a drop of 5.55 billion. This is not a shrinkage of assets, but a proactive move Strategic Contraction--
Real Estate Sector's inventory elimination, project liquidation, and capital withdrawal.
Total liabilities dropped from 11.2 billion to 3 billion, a decrease of 8.2 billion, and the asset-liability ratio dropped from 49% to 17.3%. This is not a financial difficulty, but a removal of all burdens.
Net profit is 2.55 billion, of which investment income is 2.05 billion, accounting for more than 80%. This is not the profit structure of a real estate company, but the profit structure of an investment company.
Putting the three sets of numbers together, there is only one conclusion: Henglong has completed its transformation from real estate to investment.
The next day Hong Kong Stocks opened, and the stock price of Henglong Group jumped up from 40 Hong Kong Dollar.
During the Call Auction stage, Buying Pressure placed orders for more than 20 million shares, with very few selling orders.
Opening Price 44.2 Hong Kong Dollar, which is more than 8% higher than the closing price of the previous trading day.
In the first fifteen minutes, Trading Volume exceeded 120 million Hong Kong Dollar. The time-sharing line was like a tightened bowstring. Every small correction was held up by a new Buying Pressure.
45 Hong Kong Dollar, 46 Hong Kong Dollar, 47 Hong Kong Dollar, there is a brief battle before each integer mark, but the sell order will be eaten up soon after it is placed.
It closed around 47.5 Hong Kong Dollar at midday and continued to rise after opening in the afternoon.
48 Hong Kong Dollar,48.5 Hong Kong Dollar,49 Hong Kong Dollar.
In the last hour before the close, Henglong's stock price stood firmly above 49 Hong Kong Dollar, with the highest intraday touch of 49.8 Hong Kong Dollar.
The market value has climbed from 22.4 billion Hong Kong Dollar to 30 billion Hong Kong Dollar, with a total share capital of 560 million, corresponding to a stock price of 49 Hong Kong Dollar, and a market value of approximately 27.4 billion Hong Kong Dollar.
The distance is less than 10% from 30 billion Hong Kong Dollar.
But the figure of 27.4 billion Hong Kong Dollar only reflects the value that has been confirmed on Henglong's books.
The floating profit of Five A-shares's position of 1.48 billion was included in other comprehensive income and reflected in the net assets of 14.3 billion.
The existing items of Real Estate Sector are measured according to the cost method or Fair Value, and are also reflected in the net assets.
But the most valuable assets of Henglong are seriously underestimated on Financial Statement.
After the market closed, the Hong Kong Stocks research team of a leading domestic securities firm issued a research report titled:
"Henglong Group: The transformation from real estate to investment has been completed, and the value of hidden assets needs to be revalued."
There is only one core point in the research report:
Unlisted Equity held by Henglong is measured according to the cost method on Financial Statement. There is a huge gap between the book value and Fair Value.
There is a table on the third page of the research report.
Green Energy Technology, Henglong invested 200 million people in Series A, RMB holds 40% of the shares, and Series B was diluted to 32% after the financing was completed.
Series B's post-investment valuation is 1.5 billion US Dollar, which is about 10.35 billion people RMB at an exchange rate of 6.9.
The 32% equity held by Henglong corresponds to Fair Value approximately 3.31 billion people RMB.
But on Henglong's Financial Statement, this equity is measured using the cost method, and the book value is the amount after the initial investment cost minus the synchronized dilution part of Series B.
Specifically, Series B released 20% of its shares, Henglong's original 40% equity was simultaneously diluted by 20%, and Henglong's actual shareholding ratio dropped from 40% to 32%.
In terms of accounting treatment, it is regarded as part of the long-term equity investment being disposed of, and the corresponding investment costs are carried forward.
The book value of the remaining 32% equity is far lower than Fair Value of 3.31 billion.
Bubble Mary and Henglong first participated in 5% of Private Placement with a valuation of 1 billion and acquired Existing Shares at a premium. They eventually held 26.3% of the shares, with a comprehensive investment cost of about just over 100 million.
Financing at the end of last year, Henglong led the investment of 550 million, with a post-investment valuation of 2.75 billion, and the shareholding ratio increased to 31.2%.
The 31.2% stake held by Hang Lung corresponds to a post-investment fair value of approximately RMB 858 million.
However, in Financial Statement, this investment is also measured using the cost method, and the book value is approximately the adjusted amount after the sum of the two rounds of investment costs (approximately 650 million) minus the synchronized dilution of Series B.
Yunnan Agriculture Group, Henglong invested 390 million to acquire 20% of the shares, and gave up Voting Rights.
Yunnan Agriculture has not yet received external financing, but based on its breeding scale and profit level, compared with the valuation multiples of Muyuan Shares and Wens Shares, Fair Value with 20% equity is much higher than the book cost of 390 million.
Adding these three assets together, the difference between the book value and Fair Value is about billions of people RMB.
The current net assets of Henglong are 14.3 billion, and the market value is 27.4 billion Hong Kong Dollar, which is equivalent to about 24 billion people RMB.
If these three hidden assets are revalued according to Fair Value, the actual net assets of Henglong are far more than 14.3 billion.