It is Shan City in mid-December, and the river breeze is pouring in from Two Rivers Confluence with chill.
It blew the Floor-to-Ceiling Window on the top floor of Henglong Headquarters and shook it slightly.
Zhao Chen is sitting at his desk, with the preliminary report of Henglong Group's full-year operating data just sent from Chen Qiming spread out in front of him.
The Pu'er in my hand was made by the new administrative assistant--
The water temperature is fine, and the amount of tea leaves is fine, but the mellowness in the mouth is always a bit off.
He put down the tea cup and continued to flip through the report.
It has been almost a month since Su Wantang officially resigned as assistant to Chairman.
She now appears in Henglong Charity Foundation's office on time at 8:30 every morning,
Wearing a plain suit jacket, discussing project plans with the team,
Reviewing budget reports and contacting liaisons in various district and county education bureaus, I was very busy.
Zhao Chen and she would meet in the elevator occasionally, and she would simply report a few words on Foundation's latest progress,
His tone is professional and efficient, but he will look at him one more time before the elevator door opens.
It's like making sure he eats on time.
His newly recruited administrative assistant was transferred from Liu Mingyu to Secretariat. He works diligently.
She doesn't talk much and never bothers him, but she also never reminds him to change the tea when it's cold.
Su Wantang left the teapot on Tea Cabinet in his office before he left. The body of the teapot is made of purple sand.
She had been using it for several years, and there was a faint circle of tea dirt on the inside of the lid.
Those are the traces of Pu'er that have accumulated over the years.
He did not replace the pot with a new one. Every time he made tea, his fingers touched the warm mark on the inside of the pot lid.
When Chen Xi opened the door and came in, he held a thick stack of printouts in his hand.
The edges of the papers are neatly stacked together, and the words "Henglong Capital 2019 A-share Position and Floating Profit Summary" are printed on the cover.
She put the stack of documents on Zhao Chen's desk and sat down opposite him.
Open the laptop, and on the screen is K-line Chart superimposed on the trend of Five A-shares throughout the year.
"Zhao Zong, all floating profit data of A-share's position at the end of the year have been verified."
Her voice is smooth and clear, with the unique rhythm of a data analyst.
"With five stocks, the total floating profit for the year increased by approximately 8.3 billion RMB.
Coupled with the existing floating profit basis from the previous year, the cumulative floating profit of Henglong Capital's positions on A-share has exceeded 11 billion yuan RMB."
She pushed the first page of the document in front of Zhao Chen.
"Bidiya, the largest increase this year.
The stock price at the beginning of the year was 56.20 yuan, and it closed at about 85 yuan today, a year-on-year increase of about 51%.
We hold 136 million shares, accounting for 4.99% of the total share capital, and this year's new floating profit is approximately 3.8 billion yuan.
Coupled with the low-cost advantage when establishing a position last year - the weighted average cost was 42.68 yuan -
The cumulative floating profit has exceeded 5.5 billion yuan, making it Henglong Capital's most profitable investment in the A-share market."
She turned to the next page,
"Wuliangye, which was 53.80 yuan at the beginning of the year, closed at about 130 yuan today, with an annual increase of about 142%.
24 million shares are held, with a new floating profit of approximately 1.8 billion yuan this year.
On the day when the Baijiu sector collectively dropped to its limit in October last year, we bought this position at the limit at a cost of 53.8 yuan. So far, the return rate has exceeded 140%.
At this time last year, no one was optimistic about Baijiu--
Maotai's revenue growth rate has dropped off a cliff, and everyone feels that Baijiu's business cycle has come to an end.
We entered the market at the most panicked moment."
Zhao Chen didn't answer, just nodded slightly.
He remembered that night, Chen Xi placed a buy order on the lower limit and bought 24 million shares one by one.
I also remember that there were voices of doubt within Henglong at that time. Even Song Zhongping asked at the meeting, "Can Baijiu still be available?"
He and Chen Xi's answer at that time was "yes".
"Pianzaihuang, which was 98.76 yuan at the beginning of the year, closed at about 115 yuan today, an increase of about 17%.
With a position of 16 million shares, the floating profit this year is about 260 million yuan.
Tongce Medical, which was about 50 yuan at the beginning of the year, closed at about 62 yuan today, an increase of about 24%.
22.3 million shares are held, with a floating profit of approximately 270 million yuan this year.
Shanxi Fenjiu, which was 40.07 yuan at the beginning of the year, closed at about 68 yuan today, an increase of about 70%.
43.2 million shares are held, with a floating profit of approximately 1.2 billion yuan this year."
Chen Xi summarizes the annual floating profits of five stocks into one table.
The numbers lined up clearly, and she tapped the total with her fingertip.
"Five A-shares, the total floating profit for the year was approximately 8.3 billion yuan.
In addition to the existing floating profit base of about 2.7 billion last year, the cumulative floating profit of positions is about 11 billion.
This part is not included in the current net profit, but is included in other comprehensive income, directly increasing the net assets.
In addition, Real Estate Sector contributed approximately 120 million yuan in net profit throughout the year.
This is slightly lower than the 130 million in the same period last year, but it is in line with our expectation of actively shrinking the scale of real estate."
She turned her laptop around, and on the screen was a chart of Henglong's net worth changes--
From about 11.7 billion at the beginning of 2017, to about 14.3 billion at the end of 2018, and to nearly 21 billion at the end of 2019.
In two years, net assets increased by nearly 10 billion.
The main source of these increases is not real estate profits.
It is the floating profit of A-share position and the Fair Value release of Unlisted Equity.
"Henglong's net worth is close to 21 billion RMB.
Among them, Real Estate Sector accounted for less than 10%, and the investment sector contributed more than 90% of the increase in net assets.
And this does not include the release of Fair Value after Bubble Mart is launched--
That asset is currently listed at book cost, and its true value is significantly undervalued.
If all Fair Value releases of Bubble Mary and Green Energy Technology are included,
The true net worth of Henglong still needs to go up a lot."
Zhao Chen read the report from beginning to end.
The data on each page has been checked repeatedly--
Buying time, cost price, current stock price, floating profit amount, and proportion changes, all numbers are accurate to two decimal places.
Chen Xi's style of doing things has always been meticulous.
This report is as solid as the one she gave him during last year's annual report forecast, if not more detailed.
He turned to the last page, picked up the pen, and signed his name in the approval column.
"Keep holding."
Chen Xi took the file without asking any questions.
Swing Trading is not the style of Henglong. Among the five tickets, Bidiya, which was bought last, has been held for almost a year and a half.
The first Tongce Medical and Pianzaihuang I bought have been held for nearly two years.
In the past two years, there are always voices in the market saying that the valuation of Baijiu is too high, the bubble of New Energy is about to burst, and the traditional Chinese medicine sector has no imagination--
Zhao Chen reacted the same way every time, leaning on the back of the chair, holding Pu'er, without doing any operations.
She was about to pack up her computer and leave when Zhao Chen suddenly spoke.
"What do you think of next year's A-share?"
Chen Xi's fingers paused on the keyboard for a moment.
She has obviously thought about this question more than once, but when faced with Zhao Chen, she never answers casually.
She turned the computer screen back and opened an unfinished outlook report for next year, with the core conclusions already written on the preface page.
"Next year the New Energy sector will most likely usher in a round of valuation recasting.
Bidiya and Blade Battery have been warmed up at the technology conference at the end of the year.
After the official mass production next year, the entire competitive landscape of power batteries will be rewritten.
For the 136 million shares we hold, the holding cost is low enough that we don't need to do any operations, just wait for the market to re-price.
Baijiu will most likely be repaired next year.
The performance growth rate of Wuliangye and Fen Liquor will have a low base effect in the first quarter of next year, and the market may react in advance.
Consumer Healthcare has long slopes and thick snow, but Tongce's dental chain expansion and Pian Zai Xi's price increase logic have not been broken.
Our position structure does not need to be adjusted, and our rhythm does not need to change - continuing to hold is the best strategy."
Zhao Chen showed a rare smile.
He remembered that this time last year, when Chen Xi was first promoted to General Manager of Henglong Capital,
The first annual strategy report submitted also quoted Buffett's phrase "Be fearful when others are greedy, and be greedy when others are fearful" on the title page.
He approved a line at that time: In the China market, be calm when others are greedy, and be firm when others are fearful.
Today she said "continuing to hold is the best strategy", which is consistent with the underlying logic of the line she criticized.
"This first draft of the annual report can be sent to the directors."
He handed the signed report to Chen Xi,
"Let Liu Mingyu arrange it. Before the end of the year, Board of Directors, all directors will have one copy."
Chen Xi responded, packed up the files and computer, got up and walked out.