2003: Starting with Foreign Trade

Chapter 625 Another 6000 million yuan?

On March 13, listed company Flashpoint Technology released its preliminary financial results for 2008, which is its first preliminary annual report since its listing.

As the first listed company in the electric vehicle industry and the world's number one in electric vehicle sales in 2008, FlashTech's annual report has been attracting much attention since March.

Although it is only a preliminary earnings report, it is essentially a formal annual report.

In its first annual report, FlashDrive Technology was remarkably honest, reporting sales of 183.54 million electric vehicles throughout the year. Its products were exported to 30 countries and regions worldwide, demonstrating its strong market competitiveness and influence in the international market.

With sales volume in the range of 30 billion to 35 billion yuan, it firmly ranks among the top tier in the market. With net profit in the range of 5.1 million to 6.67 million yuan, its net profit margin can also be maintained in the range of 17% to 20%, which is a very high net profit.

此外，本次年报预案还计划拟以2008年12月31日总股本5.1亿股为基数，向全体股东按每10股派发现金红利人民币1.2元（含税），共计分配现金股利人民币6120万元。

The remaining undistributed profits will be carried forward to the next year, and no bonus shares or capital reserves will be transferred to capital in this year.

The preliminary annual results were released after the market closed on the 13th. Today, FlashTech opened nearly 5% higher at a price of 15 yuan and closed at 14.49 yuan.

The price of 15 yuan is the highest price for Flash Technology since its resumption of trading. The closing price is lower than the opening price, and the stock price trend shows a large negative line. However, in fact, Flash Technology's gains today still reached 2.99%.

"A false bearish candlestick pattern with a significant increase in trading volume – does this indicate that institutions had prior knowledge of the situation and were either shaking out weak hands or distributing their holdings?"

In light of the after-hours earnings report, shareholders of FlashTech couldn't help but start analyzing the situation, but since it's the weekend and trading will be suspended, they were just overthinking it.

After entering 2009, the overall performance of A-shares was not good. Although there was no bull market, there was at least a decent rebound, especially after the New Year when the trend was very stable.

Today, the Shanghai Composite Index closed at 2128.85 points, representing a 27.86% rebound from the low of 1664.92.

There weren't many stocks in 2009, but the index rebounded by nearly 27%, and almost all individual stocks rose to varying degrees. The overall rebound was quite optimistic, which made some investors who were hurt in 2008 feel that things were looking up again.

Of course, the happiest people were the shareholders of Flash Technology, which went public through a reverse merger with Changfeng Group. When the stock market crashed, Changfeng Group's suspension of trading allowed them to avoid the big drop.

In addition to resuming trading, the stock price nearly tripled thanks to significant positive news. Now, except for those who bought at the top, almost everyone has broken even.

Like investor Xiao Zhang, whose current profit has exceeded 30%, Xiao Zhang has returned to the VIP room thanks to the rise in stock price.

He was still working with Lao Li in a large room.

"Hey Lao Li, do you think it'll hit the daily limit next Monday? The earnings are so good."

Xiao Zhang couldn't help but look forward to the performance of FlashTech when the market opened next Monday. If it hit the daily limit or the stock price exceeded 15, the market value of his FlashTech shares would exceed 30.

"I don't know if it will hit the daily limit, but based on the data in the preliminary earnings report and the relatively high valuation of A-shares, FlashTech's market value of 100 billion yuan is not a problem."

Old Li also bought some shares of FlashTech after it opened for trading. His cost was over 12 yuan, and he is currently making a profit. His goal is to achieve a market value of 10 billion yuan.

Based on a market capitalization of 10 billion, FlashTech could reach its previous high of 19.8 yuan. In his opinion, buying at around 12 yuan is not expensive, and based on its current performance, it has a real chance.

Unfortunately, if it had gone public two years earlier and caught a bull market, the 20 billion yuan would have been easily achievable.

"Flash's performance is too stable. Their annual sales and profits are not more than 30% higher than the previous year. The boss is also willing to distribute dividends. It is really a good company."

Although dividends will be subject to ex-rights adjustments, it's still better than some companies not paying a cent at all. Xiao Zhang's 2 shares will earn him 2400 yuan. Although 2400 yuan in 2009 is not as much as in previous years, it's still not a small amount.

Many people earn only this much in a month.

"Hehe, do you remember when Flash used 6000 million yuan for promotion? This time the dividend is another 6000 million yuan. This little boss Tan is really obsessed with 6000 million yuan."

"Haha, this time it's different. He can take half of the 6000 million, 3000 million. This kind of dividend is actually quite nice."

Tan Jincheng and the companies he controls actually hold nearly half of the shares of FlashTech. The dividends are negligible for ordinary shareholders, but for the major shareholders, they are a significant sum.

The holdings can range from tens of millions to hundreds of thousands or even millions. If held long-term, there's no tax to pay, which is much more comfortable than selling shares.

"That's 6000 million, which is a large sum in the A-share market. There aren't many private enterprises that can make such a large investment."

Let alone private companies, many state-owned listed companies do not pay dividends. Even if the dividend is after the ex-rights date, it still shows the company's attitude. FlashTech started paying dividends in its first year of listing, which is a good start.

If this trend continues, given the current development trend of the electric vehicle market and FlashDrive's performance, this stock is worth holding for the long term. After FlashDrive Technology released its preliminary annual report, analysts from various securities firms gave it a buy rating, and Qilu Securities, the sponsor of FlashDrive Technology, raised its stock price forecast for FlashDrive Technology from 18.25 yuan to 19.5 yuan.

对应市值99.45亿元，按3月13日当日收盘价14.49元计算，闪驰科技还有34.58%的上涨空间。

Generally speaking, companies that dare to release their financial reports in advance usually have good performance. FlashTech officially released its preliminary financial report in the first half of March, which indicates that its performance was very good.

There aren't many companies that released their earnings around the same time as Flash.

Over the weekend, Flash's performance and 6000 million yuan dividend were hotly debated in the market, and the previous 6000 million yuan mega-promotion was also brought up again.

The two sets of numbers echo each other, which is quite eye-catching.

Tan, who has worked as a live streamer and is very approachable to netizens, is affectionately nicknamed "Tan Liuqian" by them. FlashTech's official website even reposted this teasing of the boss on its official Kaixin.com promotional channel.

Gu Qingqing, the former CEO of Orange Technology, even liked the post on her personal account, which really boosted the show's popularity.

"Hey, you, if you're going to like something, why not use your own account? Why use mine?"

Looking at her husband sprawled on the sofa, Gu Qingqing felt both amused and impressed. A simple repost and a like had taken the buzz surrounding Flashtech's annual report beyond just the capital market.

"Haha, this is exactly the effect I wanted."

Tan Jincheng was scrolling through comments from netizens on his phone.

There are many talented people, and a lot of funny comments. He has been attending the ZX meeting since the 3rd. The ZX meeting of the Two Sessions will close a day early, which is this Thursday.

The decision to release the financial report on Friday was also made with the boss's schedule in mind.

The next steps include the formal financial reporting process, the audit process, and the conference call. Tan Jincheng is required to be present for the conference call.

Having a financing platform has many advantages for a company. In addition to the most direct financing, it is also equivalent to a media platform. Whenever something happens to the company, whether it is good or bad, it is easy for it to go viral.

Compared to last year, FlashTech has actually saved a lot on marketing expenses since its IPO this year.

Zhang Congxun and his team felt it would be difficult to surpass Flash, largely because Flash could issue bonds or raise funds when short of cash, and their quarterly financial reports generated far more buzz than Flash's.

This is what we call cost reduction and efficiency improvement.

"You really don't miss out on any newsworthy moment. You're given an opportunity and you have to create some buzz. Being your competitor is a real headache."

“I’m approaching this with an internet mindset. These days, the old adage of ‘a good product being hidden away’ doesn’t apply anymore. As long as the product quality is similar, whoever does the best advertising will sell their product the best.”

If you're asking whether the quality of the Flash Car is significantly better than that of the Xinri, Yadi, or Luyuan, then it's hard to say. But it just sells well, which is simply because it does a better job of marketing and hype than its competitors.

"Starting next week, I'll be going back to school to study seriously. Where are you planning to go on your business trip?"

After the sixteenth day of the first lunar month, Tan Jincheng was extremely busy, and Gu Qingqing's study plan had to be postponed. He helped her handle some things, such as the newly independent Orange Live and the financial issues of ByteDance, etc. Tan Jincheng had no time to deal with these, so he left them to her.

She's almost done with her work, and apart from the second joint venture factory, there's nothing much going on for the time being. She can finally go back to school to recharge.

"The main destination is Changzhou. I hope to finalize the second joint venture factory before April. If things go smoothly, both factories can start production at the same time next year. Also, I need to make another trip to Xiangcheng."

Since the acquisition, the Xiangcheng vehicle assembly base has been undergoing renovations, and almost half a year has passed, so it's pretty much done.

The four major auto shows are as follows: the Shanghai Auto Show is usually held in early April in odd-numbered years (such as 2008), and in late April in odd-numbered years. Correspondingly, the Beijing Auto Show, which is close to the Shanghai Auto Show, will be held later in odd-numbered years.

This year is an odd-numbered year. The Shanghai Auto Show is scheduled to be held from April 20th to 28th, while the Beijing Auto Show is held in several sessions, the most recent one being from May 15th to 18th. It's too small in scale and too short in duration, so I don't plan to participate.

The two auto shows are too close together, so Weilai Auto didn't have much of a chance to shine. The second half of the year is when Weilai Auto will have its moment to shine, again at the Beijing Auto Show and the Guangzhou Auto Show.

After nearly half a year of production line renovations, it's time to get the Xiangcheng vehicle production base up and running again.

(End of this chapter)