Starting with a fully invested A-share portfolio to become a capital...

Chapter 19: The First Quarter Report – “Thunderstorm”
Zhang Yang was not disturbed by Wang Xingbang's message. After turning off his phone, he still enjoyed his breakfast at a leisurely pace.

As an adult, from the moment he decided to manage Lai Weijie's investments, he was prepared to bear the corresponding consequences.

He had calculated that the worst-case scenario would be that he and Lai Weijie would be forced to withdraw from the competition.

As for failing a course, Wang Xingbang probably doesn't have that ability yet. After all, the instructors only have a maximum of 25 attendance points. Even if all of them are deducted, Zhang Yang can still guarantee a score of over 60 points based on his exam paper score.

Since he could bear the consequences, he had no need to panic.

……

After finishing his meal, he quickly cleared away the dishes.

Most university cafeterias have multiple tableware recycling points. Students tacitly agree to pour uneaten food into the slop bucket and then put the tableware into the recycling basket.

Of course, there are also a very few students with poor manners who will leave immediately after finishing their meals, leaving the cafeteria staff to clean up the mess.

Zhang Yang was clearly well-mannered; he cleaned up the dishes before heading to the library.

沪财的图书馆开放时间是早上8点到晚上22点，不过一楼书库和自习区会开放到23点30分，所以学生都默认23点30分再闭馆。

As Zhang Yang entered the financial analysis room on the sixth floor, he paused slightly and looked at the figure in the study area, asking, "What are you doing here?"

"Brother Yang, you haven't replied to my messages these past two days, I'm getting worried." Lai Weijie said with a worried look as he stood up and explained his purpose.

He desperately wants to get into Huaxin Securities, and just a few days ago he bragged to his girlfriend that he could get into Huaxin Securities right after graduation. If he fails miserably, he really doesn't know how to explain it to his girlfriend, and they might break up.

"Don't worry, you'll be able to get in."

Zhang Yang put down his laptop bag and took out his laptop.

The reason he hasn't replied to Lai Weijie's messages these past two days is because he considers being a "gunman" part of his job.

Life and work must be kept separate.

When enjoying life, Zhang Yang doesn't handle work matters.

Besides, even if we take a step back and assume the worst, what's the point of him replying to Lai Weijie's messages during the holiday?

Comfort him?
To appease him?
Keep him calm?
He's not customer service; he doesn't want to do anything pointless.

It's like someone drowning while swimming in the wild. No matter how many nice things you say on the shore, it's useless. Even if you praise their ancestors for eighteen generations, the person who is destined to drown will still drown.

The best course of action is to ensure your own safety before attempting a rescue, or to seek help from other people who are good swimmers.

Zhang Yang wasn't in the mood to comfort Lai Weijie, so he ignored the messages Lai sent him during his two-day trip.

When working, concentrate.

Enjoy life.

This is Zhang Yang's attitude towards life.

……

Looking at Zhang Yang, who was full of confidence and assurance, Lai Weijie made his request: "Can I watch you trade?"

“If you’re not afraid of being discovered, I don’t care.” Zhang Yang plugged the network cable into the computer and added, “If things are exposed because of your own actions, I will not be responsible.”

His meaning was clear: Lai Weijie, you can stay here, but if you are later suspected of cheating, Zhang Yang will not refund your money.

After weighing the pros and cons, Lai Weijie tidied up the things on the table and said, "Then I won't bother you anymore. Brother Yang, you must make it into the top ten. I'll give you an even bigger bonus then."

"Do not worry."

Zhang Yang waved his hand, signaling him to hurry up and leave. The two didn't usually interact much, and if someone they knew saw them together, it would be hard not to suspect that there was some kind of deal going on behind the scenes.

Lai Weijie didn't linger and hurriedly left the financial analysis room.

As soon as he stepped out the door, he ran into a discussion group from the School of Accounting who were studying there. The girl with long, straight black hair leading the group was none other than Xu Zhiruo's younger sister, Xu Zhirou.

Today she wore a loose-fitting off-shoulder tank top, black hot pants, and breathable black stockings, a blend of girlish innocence and sexiness that made it impossible to look away.

"Someone's here."

As soon as they entered the financial analysis room, they saw Zhang Yang sitting in the study area, in the spot they had been using for the past few days.

"Let's go over there."

Xu Zhirou glanced at Zhang Yang, then looked away and walked towards a corner of the finance study room.

She also recognized Zhang Yang and learned from Xu Zhiruo's social media posts that he and her sister had been camping for the past two days.

She didn't know much about this because the two were not in the same department. The last time they met was during the "Simulated Entrepreneurship Competition" in their sophomore year. It was this campus competition that led them to become QQ friends.

Zhang Yang was unaware of Xu Zhirou and the others' arrival. He was using Sina Finance, intently reviewing the details of Changan Automobile's First Quarter Report for 2009.

According to the report, Changan Automobile's total revenue in the first quarter was 48.768 billion yuan, an increase of 8.775 million yuan or 21.94% compared to 39.993 billion yuan in the first quarter of 2008. However, net profit declined sharply.

Changan Automobile's net profit in the first quarter of 2008 was 2.676 million yuan, but in the first quarter of 2009 it was only 2834 million yuan.

Many investors might panic when they see a significant decline in net profit, as this is, after all, a standard for measuring returns.

However, Zhang Yang quickly found the reason for the decline in net profit.

The balance sheet for the first quarter of 2008 showed that Changan Automobile's total investment in construction projects was 3.055 million yuan, but by 2009, this figure had soared to 9.827 million yuan.

In other words, Changan Automobile's management invested nearly 7 million yuan in the past year.

What do they want to do?
Four words: Increase production capacity!

The government is now promoting "cars to the countryside" and providing ample policy subsidies. Coupled with the strong sales of Changan Automobile's "Yuexiang" model in Chongqing, it is very wise to choose to increase production capacity at this time.

It is said that even a skilled cook cannot cook without rice. No matter how well you sell your cars, if you don't deliver any cars, what's the difference between that and not selling them at all?
The data in the first quarter report were entirely within Zhang Yang's expectations.

He then opened the Baidu Tieba forum to check the attitudes of shareholders of Changan Automobile towards the financial report.

[Little Laozi]: Oh no, oh no, with net profit dropping so much, could there be some hidden problems at Changan Automobile that haven't been exposed yet?
[Green Leek]: I don't understand, so I'm asking why the Q1 2009 financial report was worse than the financial report during the 2008 financial crisis. Wasn't it said that the economy was recovering and the demand for commodities was increasing?
[Da Vinci]: With net profit dropping so much and the debt ratio soaring, this round of price increases has peaked. Everyone should prepare to exit!

Most investors are pessimistic and are only looking at net profit.

And at the same time.

Zhang Yang also noticed that a large number of media accounts were fanning the flames.

Changan Automobile's net profit for the first quarter of 2009 was only 2834 million yuan, a year-on-year decrease of 89.41%!

Shocking! Changan Automobile's Q1 Net Profit Plummets; What Happened to Its Soaring Debt Ratio?

Is a leading domestic automaker facing a crisis? First-quarter net profit plummeted by 89.41%. What should you do with your shares?

Market sentiment is rife with speculation, which began to gain traction after yesterday's earnings report. Retail investors in the comments section are predicting a decline, with some even saying it will break the lows of October 2008.

Seeing the market gripped by panic, Zhang Yang silently logged into his live trading account and said with a faint smile, "These are blood-stained chips; I can't let you pick them all up."

(End of this chapter)