Returning to his senior year of high school, he went all in and made billions by buying at the botto

The finance manager turned to the first page of the report.

"Both No. 3 and No. 4 have a one-year lock-up period. Investment returns generated this year will not be distributed to clients in cash, nor will they be available for redemption."

"As of December 31, the net income of RMB 38.1 billion generated for investors by the two products has been fully reflected in the unit net value."

Zhao Qiang clicked on the fee explanation on the projector.

When Taichu No. 3 and No. 4 were established, it was agreed that a management fee of 3% would be collected annually.

For any portion exceeding the contractual performance benchmark, Taichu will receive 40% of the performance fee.

Management fees are accrued based on the product's daily net assets and transferred to the management company's account quarterly.

Performance-based compensation is subject to confirmation through both the high-water mark and the lock-up period.

Although the year-end net asset value report has already made provisions, the corresponding funds remain under the expense reserve item in the custodian account.

If the fund experiences a drawdown during the first closed period, the pre-allocated amount will be recalculated along with the net asset value.

Only after the product has been established for a full year and the final high water level has been confirmed by the trustee and auditing institutions can Taichu officially transfer the money to the management company.

"Therefore, the operating income that can be confirmed on the 3rd and 4th of this year mainly comes from management fees."

"That's what the finance manager said."

"The two products were established for nearly five months, and based on daily net assets, the total management fee income recognized was 2.46 million yuan."

"The performance-based compensation accrued at the end of the year is close to 19 billion yuan."

After reviewing the expense details, Chen Mo turned to the last page.

"The profit after the liquidation of No. 1, plus the confirmed management fees of No. 3 and No. 4, interest on equity funds and other investment income, and then deducting employee salaries, year-end bonuses, system purchases, auditing, legal and daily operating costs."

"Principal Capital's consolidated after-tax profit for 2015 is tentatively estimated at NT$15.4 billion."

"The final figure may vary by up to 20 million yuan due to income tax calculations and adjustments to certain expenses over a period."

There was not much commotion in the meeting room.

All the executives present knew that the vast majority of the 15.4 billion yuan came from the Taichu No. 1, which had already been allocated.

The truly substantial performance-based compensation for No. 3 and No. 4 will only be confirmed after the lock-up period ends.

The two newly purchased office floors have been listed as fixed assets of Taichu Capital.

The purchase expenditure will not reduce this year's profit in one go; depreciation will be accrued in accordance with accounting standards.

Chen Mo closed the report.

"Issue the fund's annual report in accordance with audit standards."

"Numbers No. 3 and No. 4 will not distribute profits in advance, nor will they pledge or misappropriate any form of performance-based compensation."

"Employee bonuses will be distributed according to the approved plan."

The finance manager quickly took notes.

The annual business meetings for No. 3 and No. 4 have now come to a highly efficient conclusion.

Zhao Qiang and the marketization team remained in the conference room to continue discussing the details of the trusteeship, while Chen Mo got up and left.

He took the private elevator to the floor above.

After the elevator doors opened, two separate access control gates were immediately visible.

Wei Shan remained outside the first gate.

After verifying his identity, Chen Mo handed his mobile phone to the staff and walked alone into the innermost closed meeting area.

The annual meeting of Primordial II has begun.

Lu Zhilan sat on the right side of the long table.

Representatives from social security, Huijin, SDIC, and several long-term funds were all present.

The seating arrangement in this conference room remained unchanged after the joint verification in December.

Chen Mo remained seated at the strategy advisor's table.

Lu Zhilan nodded to him, "Is it over downstairs?"

"It just ended."

"Alright, initiate the annual settlement for Primordial II."

Staff quickly presented the report, stamped with the national audit wax seal, to all parties at the long table.

Due to its special nature, Fund II does not have the concept of commercial dividends. All excess returns belong entirely to the national treasury and sovereign account. Taichu only receives statutory strategic advisory fees.

The middle-aged man in charge of compiling the data opened the first set of data.

"As of the closing bell on December 31, the total principal under management of Tai Chu No. 2 reached NT$487.2 billion."

"Given the different entry times of each batch of funds, the total net investment income since its inception is RMB 45.4 billion, with a weighted absolute return of 12.1%, calculated using a time-weighted return rate."

"The total equity of Account Group No. 2 at the end of the year was officially set at 532.6 billion yuan."

The asset structure of Primordial II then appeared on the screen.

The initial purpose of establishing Taichu II was to provide support when market liquidity rapidly dried up.

After several months of adjustments, it has gradually transformed from a simple safety net account into a long-term capital allocation platform.

The financial battle in December left a particularly striking deep mark on the net asset value curve.

"During the verification period, Taichu 2 experienced a maximum pullback of 9.43 percent."

"That's what the reporter said."

"It's only 0.07 percentage points away from the mandatory reduction line stipulated in the contract."

"After the risks were eliminated, the portfolio recovered all its losses and reached a new all-time high at the end of the year."

The meeting room was silent for a few seconds.

Everyone here experienced those days.

If Taichu No. 2 had triggered the reduction of holdings at that time, the losses would not have been limited to the paper balance.

The concentrated sale of hundreds of billions of yuan will further damage the market, and the several investment institutions must also face real accountability investigations.

In the end, Chen Mo held onto that line.

Lu Zhilan flipped to the section on strategy consultant fees.

"When the second fund was established, it did not adopt the high-fee model of market-oriented private equity."

"Tai Chu charges a basic strategy advisory fee of 0.25% of the average daily asset size each year."

"A performance incentive of 8% will be allocated to any amount exceeding the weighted performance benchmark."

"The base fee and excess performance combined have an absolute ceiling of no more than 0.8% of the total annualized asset size."

"Only 40% of the excess performance bonus will be paid out in the current year, with the remaining 60% being paid out in a three-year linear deferred manner."

"If any major violations, misrepresentations in strategy, or subsequent losses occur during the deferral period, the Joint Committee has the right to cancel the unpaid portion."

This arrangement is far lower than the fee standards of Taichu No. 3 and No. 4.

Fund No. 2 is large in scale and has special market objectives.

Primordial does not need to extract excessive profits from it, nor can it bear the research, system, and personnel costs of hundreds of billions of dollars in accounts free of charge.

The person in charge of financial accounting reports the final figures.

"In 2015, the average daily accounting assets of Taichu No. 2 were RMB 276.4 billion."

"Approved basic strategy consulting fee: 6910 million yuan"

"The excess performance of each account was calculated to be 1.41 million yuan, totaling 2.101 million yuan, which is strictly controlled within the statutory limit of 0.8%."

"Of the performance incentives, 40%, or 5640 million yuan, will be settled after the annual report audit, and the remaining 60%, or 8460 million yuan, will be transferred in full to the national treasury's three-year deferred supervision account."

"After consolidating the basic expenses, the actual settlementable advisory fees for Taichu Capital in this period are NT$1.255 million."

Chen Mo remained calm and quietly observed the representatives from all sides at the end of the long table.

The turmoil in December has proven that any arrangement of interests between Number Two and Taichu will be scrutinized under a magnifying glass.

Excessive fees will raise concerns about long-term capital channeling profits to private institutions.

Offering it completely free would deprive the research, trading, and risk management systems of hundreds of people of a sound commercial basis.

The base fee of 0.25%, the limited excess incentives, and the three-year deferral link the interests of both parties while also preserving sufficiently strict recourse rights.

Lu Zhilan said, "The joint verification has confirmed that there is no commingling of funds between Taichu No. 2 and No. 3 and No. 4."

"The strategy list provided by Chen Mo and Tai Chu did not involve using undisclosed transactions on the second platform to transfer profits to other accounts."

"Feng Kai's leak of information and the thirty-first account do not involve Fund No. 2."

"My opinion is to complete the annual settlement in accordance with the original agreement."

The Huijin representative nodded first.

"agree."

Following them were social security funds, state-owned investment companies, and other participating institutions.

No one raised any objections.

Passed unanimously.

The significance of this vote goes beyond just the more than 1 million yuan in consulting fees.

It signifies that all procedural questions raised in December regarding Lu Zhilan, Tai Chu, and Chen Mo have been formally resolved within Tai Chu II.

However, Lu Zhilan did not immediately adjourn the meeting.

She placed another document in the center of the long table.

"Proposal for the Reappointment of Strategic Advisors for Taichu II in 2016".

"Over the past year, the strategic objective of Taichu II has gradually shifted from providing liquidity support to the market-based allocation of the country's long-term capital."

"Whether to continue to employ Taichu Capital and Chen Mo as chief strategy advisors in 2016 requires a new vote by the joint committee."

The officials in the meeting room opened the proposal one by one.

A few minutes later, the first hand was raised.

Then came the second one.

The third one.

Until both sides of the long table have expressed their opinions.

The staff member looked down and recorded the results.

"Proposal for the Reappointment of Strategic Advisors for Taichu II in 2016".

"Passed unanimously."