High School Belle Fell in Love with Me

Chapter 611: Chapter 264: Who Told Jiang Banxia to Neglect Her Proper Work!

Many people have speculated about why Wanliu Capital hasn’t released its annual report.

After all, since last May, Wanliu Capital has cleaned up two funds worth more than 300 billion. Without these funds, how are they making money?

There have even been rumors that Wanliu Capital employees have hardly any work to do, and there was a two-month increase in vacations last year.

On the A-shares market, Wanliu Capital’s stock price often hovers between 2.8 and 2.9.

Although it seems very supported at this point, many people know that once Wanliu Capital releases its annual report, it won’t be able to support a stock price close to 300 billion.

Some diligent calculators have figured that, based on performance over the first four months, even if Wanliu Capital completely liquidated in early May, their four-month revenue would be less than two billion.

How can less than two billion in revenue sustain a market value of 300 billion?

During the IPO, it was calculated based on a net profit of over 100 billion.

It’s absurd that the stock price can maintain this position; it should have dropped to hundreds of billions long ago.

As for Wanliu Capital’s QDII fund, people aren’t paying it much mind.

Domestic institutions don’t usually make money in foreign capital markets; few actually profit.

Even if US stocks look like a long bull market from an outsider’s perspective, domestic institutions consistently make less than expected.

The main point being, even though US stocks had a decent performance last year, since the beginning of this year, the market trend has been poor, with several pillar stocks dropping about 20%.

That’s in just over two months.

...

Wanliu Capital’s employees are crazily working overtime because there’s a lot to do in a short amount of time.

Li Yang completely liquidated the entire fund early on April 29, and the annual report is set for release on April 30.

Time advanced to April 30th, 8 PM.

Wanliu Capital released its annual report.

For the entire 2017 fiscal year, Wanliu Capital’s revenue was 2.4 billion with a net profit reaching 2.2 billion.

These figures are indeed unexpected; many people thought it would be lucky for them to have several billion in revenue.

Upon glancing at the report, the primary source of income was closed-end fund management fees, totaling 260 million US Dollars.

That management fee is considerably high.

Assuming a scale of 5 billion US Dollars, over seven months, management fees approach 8%.

This is clearly an unreasonable figure.

"Wanliu Capital can’t fleece the market investors, so they’ve started fleecing their own users?"

"I knew all along they weren’t so well-intentioned. They keep saying they’re serving fund investors, but aren’t they serving themselves?"

"What kind of management fee is this? How could it be so absurd? An 8% management fee with neither profit nor loss, and if there’s a slight loss, wouldn’t the fee go over 10%? Can’t the Securities Regulatory Commission step in?"

"Keeping it under wraps for so long, only to reveal such a big piece?"

"Wait for the price to plummet. With this performance, they can’t maintain a market value of 300 billion, even maintaining 50 billion would be lucky. They haven’t launched any new products this year, and the performance will only get worse!"

"At least start with ten limit-downs!"

...

Originally Wanliu Capital’s condition shouldn’t require the attention of a mogul like Jiang Baichuan.

But who could have guessed he advocated investing money?

He invested 15 billion, acquiring 5% ownership, which indicates his trust in the young Jiang Banxia.

As for Wanliu Capital’s business, he truly hasn’t paid much attention, nor is it his role to worry about such trivialities; Jiang Banxia should manage the company herself, right?

Seeing this financial report, he’s somewhat disappointed.

A net profit of 2.2 billion isn’t low, but the financial industry is one with highly substantial profit ratios, where most financial companies maintain a net profit ratio of 70%.

Financial companies with a net profit ratio under 30% aren’t even given a glance.

But in the market, even tangible companies with a net profit ratio over 10% are highly coveted.

This is also why financial companies with a PE of 20 or 30 already seem excessively high, while 80 for tangible companies is still considered low.

"Perhaps it’s due to childbirth disruption? It seems there’s no related information..." Jiang Baichuan gives Jiang Banxia an excuse.

Having a child isn’t a big deal; supporting national policy means a slight interruption at work is understandable.

He plans to ask about the situation after returning to work the following day...

But on second thought, it’s the May Day holiday tomorrow...

Forget it, forget it, he’ll discuss it after the holiday ends. It’s not like a few days will make a difference.

Regarding the invested money, regardless of profit or loss, he has to accept it.

He simply regrets promising too much initially; he should have only sought one or two points.

Spoke rashly!

Honestly, it’s the surprise brought by Jiang Banxia that made this happen.

Now he’s paying the price for impulsive decisions.

A moment of impulsiveness in his old age...

...

Departments within Wanliu Capital are all becoming busy, one aspect of which is preparing to announce the first quarter’s report for this year.

Quarterly reports aren’t usually mandated, but Wanliu Capital plans to release one.

The other aspect involves preparing new fund products.

These include previous ones like Wanliu Mixed Selection, Wanliu Navigator Selection, and additionally, two more products are being added.

One is called Wanliu New Energy Mixed, and the other Wanliu New Pharmaceutical Configuration.

Launching four fund products at once is a challenge for the entire company; they’ve never had this many before.

After all, Wanliu Capital only has a little over a hundred employees...

Designing fund products is fairly complex, with data from various aspects requiring rigorous calculation; combined with application submission, it takes at least a month to fully implement.

The April 30 annual report caused many Wanliu Capital shareholders in the market to be taken aback.