Today is October 15, 2022. The market fell sharply this week. Everyone’s mood in the bear market is relatively low. I am also bored. The bullets that should be fired have already been fired. While waiting, write some words and be the bear market diary. Bar.
If you understand the concept of value investing, you will understand it naturally. If you don’t understand it, it is useless to talk about it. Let me talk about specific company research.
Mustard is one of my holdings. The business is simple, the product is simple, and the financial report is simple. It suits my simple mood, writing some simple words, drinking tea, and enjoying a leisurely afternoon.
I printed out the 21-year financial report of Zhacai and read the paper version. There are three advantages. One is to protect my eyes, the other is to facilitate writing, drawing and making records, and the third is to feel like reading a paper book, just like junior high school. The girl wrote the sentence “a cup of tea and a book”, which is very comfortable.
When I open the financial report catalogue, I think the useful parts are the third, sixth, seventh, and tenth sections. Preferred stocks and bonds are also important, but there is no Fuling mustard in this part.
The first section of the catalog, important reminders, catalogs and interpretations, the useful information is the profit distribution plan reviewed by the board of directors in 2021. Based on 888 million (rounded) shares, a cash dividend of 3.5 yuan (tax included) will be distributed for every 10 shares, and no bonus shares will be given. Nor does it increase.
Next, we come to the paraphrase section on page 5. We can see that the four factories of the group are called Huaan, Hualong, Huafu and Baiheliang (I suddenly thought of Huafeng instant noodles when I was a child, and my thinking jumped like this, it is estimated that I drank too much tea haha ![[笑]](http://assets.imedao.com/ugc/images/face/emoji_01_smile.png "[laugh]"){kind=small}
), the assets of these four factories are all placed under the name of the joint-stock company headquarters, that is, in the company whose business license is called “Chongqing Fuling Mustard Group Co., Ltd.”, you and I are also trading its shares.
The following are the names of the subsidiaries. Among them, Huitong, Sales Company and Liaoning Kaiwei are the more important subsidiaries, and the others are all familiar faces. Finally, a “Zhenfu Company” appears. What is this? I feel that the literal meaning is the meaning of revitalizing Fuling. If there is doubt here, don’t rush first, and find the answer later.
In fact, the fastest way is to turn to page 147, in the eighth item in the notes to the financial report, “Equity in other entities”, to check whether a new subsidiary “Zhenfu Company” has been registered? The results were not found, they were all the old faces. That means this is not a subsidiary of Fuling Mustard, is it an affiliated company? The affiliated companies to be listed separately must have some significance. What is the purpose? Take it slow, don’t rush, drink tea first .
Finally, I found the answer on page 66. To put it simply, the controlling shareholder of Fuling mustard is called Fuling SDIC. Fuling SDIC represents the wishes of the Fuling People’s Government to form a mustard professional cooperative to open up the supply chain of mustard from the field to the sales channel. , strive to solve the difficulties of all enterprises and individuals in the entire chain, and drive everyone to become rich. Therefore, a “housekeeper” company was established, namely Zhenfu Company, and he was responsible for the management and responsibility of the central government’s reward and subsidy funds.
However, the housekeeper did not understand all the ways in the entire chain. He was afraid that he would not be able to handle the tasks assigned by the organization, so he entrusted the equity of Zhenfu Company to Fuling Mustard for management. It does not charge any entrusted management fees. It seems that there is no benefit, and the effort is nothing, but how can such a role that is slightly like a referee be measured by a little economic benefit? This is what Buffett often said, the management’s behavior of widening the moat of the enterprise. With this right, it is a lot of benefits for the leading Fuling mustard. Not much to say, take care of yourself.
My personal habit is that after reading the list of subsidiaries, I will go to the sixth item of “tax items” in the notes to the financial report to see the tax rate of each company. The 21-year financial report of Zhacai is on page 121. You can see that those who enjoy the 15% income tax rate In addition to the headquarters, there are mainly four subsidiaries, namely Huitong, Sales Company, Red Heaven Dream and Qiujia Mustard, all of which have benefited from the preferential income tax policy for the development of the western region. Therefore, on page 30 of the financial report, we can see that the main holding and shareholding companies are analyzed. The main profits of the company are generated by these companies, and other companies make small profits or small losses, which can reasonably and legally save taxes.
Liaoning Kaiwei, the company’s main base for radish production in the future, has a corporate income tax rate of 25%. Even after production is put into operation in the future, it is estimated that most of the profits will be transferred by the low income tax rate policy of the sales company. Therefore, it is not possible to use Liaoning Kaiwei’s financial report. Data to judge the market performance of the single product radish.
However, at present, Chongqing headquarters and Huitong still have spare production capacity, and they can still produce radish products. However, the financial report shows that due to the adjustment of the sales policy during the year, the production and sales of radish products have experienced a sharp decline in year-on-year production and sales (-36%). You must know that radish products are in addition to In addition to Huitong pickles, the company’s second most important single product, and after continuous guidance in the early stage, the consumption habits of small packaged radishes have matured, and now it has not become the company’s second growth pole. I really don’t know when Liaoning Kaiwei will be. Insufficient work starts, and low profits have to be made. Will there be consecutive book losses?
The remaining few enterprises are subject to 20% income tax, which belongs to small and micro enterprises. Now there is an inclusive tax policy. Until the end of 2022, the part of the annual taxable income not exceeding 1 million yuan will be reduced by 12.5%. The taxable income is subject to corporate income tax at the rate of 20%; for the part of the annual taxable income exceeding 1 million yuan but not more than 3 million yuan, a reduction of 50% shall be included in the taxable income, and the enterprise shall be paid at the tax rate of 20%. income tax.
For example, if the annual taxable income of a small and micro enterprise is 800,000, the calculated income tax amount is 800,000 * 12.5% * 20% = 800,000 * 2.5%, that is, the income tax is 2.5%; if the taxable income is 220 Ten thousand, the calculated income tax amount is 1 million * 12.5% * 20% + (2.20-1 million) ten thousand * 50% * 20% = 145,000, using 14.5/2.2 million = 6.59%, that is, the income tax rate is 6.59%. But if it is an individual with an annual income of two or three million, that person’s income tax rate is 45%, and the difference is still quite large. The place where the interest difference is large is the policy dividend.
Of course, the profits of these companies are relatively small, and this policy has little impact on listed companies. Because the profit scale is too small, for enterprises whose net profit is calculated in hundreds of millions, the tax reduction and exemption can only be regarded as a drizzle, and once the taxable income of the enterprise exceeds 3 million yuan, there is no preferential treatment. Only companies whose business models are subsidiaries of a large number of registered small and micro enterprises can have some use, and can be integrated, such as Focus Media.
In fact, I want to express a meaning. In this era when everyone can start a business, some policies can actually be used to avoid taxes. In the future, the market will become more and more open, and basic financial knowledge is already indispensable in this business society. Skills are the common language of society. We learn financial reports not only for investment, but also to understand the essence of business from these excellent companies, which is beneficial to our own entrepreneurship or business.
Later, I want to gradually share my thoughts on investment and industry over the years. In fact, the most influential sentence of Buffett’s sayings is not the classic concepts of value investing, but “Because I am a good investor, so I’m a good operator; because I’m a good operator, I’m a good investor.”
For example, if you open a shop part-time, you have to pay a transfer fee for renting the shop. How is the transfer fee priced? How much is reasonable? Does it feel similar to backdoor listing?
Another example is part of the decoration and production equipment of the store, like the production assets of the enterprise, how should the depreciation period and payback period be calculated? Does the decorated door headlight look like a corporate brand advertisement, used to open awareness and attract your target customers? Offline store rents can be regarded as part of your production assets and part of your channel expenses. What you buy is offline traffic, like performance advertising in corporate marketing expenses?
The classification of different expenses leads to different financial report subjects, resulting in different gross and net profit margins. How do you think about whether this store can do it? Is it worth the investment? I feel that these have a lot in common and need to be expanded bit by bit.
Friends who are willing to learn and communicate about starting a business or doing business, you can follow me “The Road to Breaking and Leaving Freedom” “. My ideal is to open up one-stop cognition from working (product) to entrepreneurship (system) to investment (pattern). With a mature methodology and a capital, our life will be free. Only the kind of Only by descending the plane tree can we attract the golden phoenix, I will attract jade, I believe that sharing is the ladder of progress . $ Fuling Mustard (SZ002507)$ $ Songcheng Performing Arts (SZ300144)$ $ Focus Media (SZ002027)$
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