The final deadline is fast approaching, and these next two days will be a busy period for financial report releases.
For A-shares, the annual report is required to be disclosed between January 1st and April 30th of the following year; the first quarter report is required to be disclosed between April 1st and April 30th, and the first quarter report cannot be earlier than the previous year's annual report; the second quarter report is from July 1st to August 31st, which is two months; and the third quarter report is from October 1st to October 31st.
Let me draw a table and you'll see it clearly at a glance. The end of April every year is the busiest time for financial reports, and tomorrow is the deadline for submitting the report.
Then there is another derivative phenomenon, which is that a batch of companies that have disclosed their annual reports will be designated as ST stocks. As a result, at the beginning of May, many newly designated ST stocks will experience consecutive limit-down days, similar to the ancient practice of taking out a batch of prisoners to be beheaded after autumn.
Another piece of information, though not exactly groundbreaking, is that dividend plans disclosed in annual reports are usually implemented in May, June, or July. More than half of the companies will implement dividends in June. Since index dividends do not go ex-dividend, the index usually rises slightly less in June each year. Companies in the CSI 500 and CSI 1000 indices have lower dividend payout ratios, so the impact is smaller; while companies in the SSE 50 and CSI 300 indices have higher dividend payout ratios, so the impact is larger. Anyone investing in stock index futures should be aware of this.
When I first started out as a self-media creator, I often wrote this kind of popular science articles. Now I write less, and my writing style, like a person, shows the marks of time. I wonder what I'll be like in 10 years. 
1. Gree released its annual report and first-quarter report after midnight last night. The annual report showed a 9% drop in profit, while the first-quarter report showed a 3% increase in both revenue and profit. The data was average, but a new share repurchase plan was also announced, with a scale of 5-10 billion yuan and a repurchase cap of 56.55 yuan per share. 70% will be used for share cancellation, and 30% will be used for employee stock ownership. In addition to the repurchase, Gree has paid a dividend of 3 yuan per share over the past 12 months, with a dividend yield of nearly 7.4%, which is a very good return in the A-share market.
In addition, there are two other figures to consider for those investing in Gree. Hillhouse Capital's initial investment of 41.6 billion yuan to acquire state-owned shares was at a cost of 46.17 yuan per share, and after years of dividends, the cost per share is 31.6 yuan. Executives like Dong Mingzhu purchased over a billion yuan worth of shares at internal prices between 2021 and 2024, at a cost of around 27 yuan per share. In conclusion, Gree shares have strong support above 30 yuan.
2. Midea's Q1 revenue increased by 2.55%, and net profit increased by 2%. Importantly, the company changed the purpose of its share buyback program. Previously, it planned to repurchase 6.5-13 billion yuan worth of shares for employee stock ownership and equity incentives; the latest announcement changes this to complete cancellation. I remember some readers predicting in the comments section that Midea would do this because employee stock ownership and equity incentives allow for quick proposal approval and immediate share purchases, while share cancellation requires shareholder approval, which is less flexible in terms of time.
This is certainly good news. The two major home appliance companies remain stable. Although their growth rate is not as fast as that of Xiaodeng Asset Management, they are exemplary in rewarding shareholders.
3. Yili's annual report and first-quarter report released tonight were quite impressive. Last year's revenue increased by 0.16%, and net profit increased by 37%, which is only so-so, mainly due to a 3 billion yuan goodwill impairment in the previous year. The real highlight is the first-quarter revenue increase of 5.5% and non-GAAP net profit increase of 15%, significantly exceeding institutional expectations. In the current consumer environment, double-digit growth is very valuable. Despite this performance, Yili's stock price has still fallen by 7% this year, indicating that the market's prejudice against traditional industry assets is truly excessive.
4. Vanke lost 5.9 billion yuan in the first quarter and 85.9 billion yuan last year. Thanks to Vanke, Shenzhen Metro lost 37.197 billion yuan last year. Fortunately, Shenzhen is financially strong; otherwise, it wouldn't have been able to withstand such a huge deficit.
5. Cambricon's Q1 results are starting to show, with revenue of 2.885 billion yuan, a 159% increase, and non-GAAP net profit of 934 million yuan, a 238% increase. I see institutional expectations for full-year net profit of around 5 billion yuan, a 140-150% increase compared to last year. Cambricon currently has a market capitalization of 600 billion yuan, corresponding to a P/E ratio of 120, which is somewhat reasonable if you use PEG for valuation. It's worth noting that well-known speculative investor Zhang Jianping has exited Cambricon's top ten shareholders, presumably having sold off his shares.
6. CICC's Q1 profit increased by 75%, and CITIC Securities' Q1 profit increased by 99%. Actually, CITIC Securities and Eastmoney's performance was also good before, but they just didn't rise. What can you do? The securities sector has fallen by 11% cumulatively this year. Every rebound is met with even more intense selling pressure. People's morale is low, and everyone wants to break free and chase after AI stocks. It would be great if there could be a refreshing surge to punish these traitors, but even dreaming about it feels presumptuous.
7. Yangtze Power's revenue increased by 6.4% and profit by 30% in the first quarter. Excluding investment income, the non-GAAP net profit increased by 19%, which is also quite good. AI stocks rarely perform well during a bull market cycle; once this cycle ends and a bear market arrives, it will be Yangtze Power's comfort zone.
8. Muxi Technology suffered a loss of 98.84 million yuan in the first quarter, but its GPU product shipments have started to increase. The company's market value is approaching 300 billion yuan. In the past, a company that was still losing money would definitely be questioned if it were valued at 300 billion yuan. However, after witnessing the growth myths of CATL and Cambricon in recent years, people have accepted this narrative.
9. Yihai Kerry's Q1 revenue increased by 11%, and net profit increased by 51%, mainly due to a gain from the disposal of equity. The non-GAAP net profit growth rate was 16.84%, which is also quite good. Sales and profit margins of its main kitchenware business are recovering. What really worries me is the increasing gross profit margin of its livestock feed business, because "sales are booming." Considering those pig farms that are losing money hand over fist, preferring to let feed sellers make a killing in order to survive in this cutthroat competition, they deserve it.
10. Tongwei Co., Ltd. lost 9.55 billion yuan last year and 2.44 billion yuan in the first quarter of this year. This company used to sell animal feed, and made about 600 million yuan in feed in the first quarter, but lost 3 billion yuan in photovoltaics. When will the photovoltaic business ever end? If it were an individual owner, they would have already admitted defeat and cut their losses. Because it is a listed company, shareholders are helping to bear the losses, which is why these people are still stubbornly holding on.
11. The Hong Kong Stock Exchange (HKEX) continued to lead global IPO fundraising in the first quarter, raising a total of HK$110.4 billion. While its IPO growth rate was the lowest globally, it topped the list in terms of fundraising volume. One is the cause, the other the result. Fortunately, the HKEX itself is a stock; faced with this kind of volatile market, it couldn't fight back and had to join in.
Many more listed companies are releasing their earnings reports tonight, and I can't cover them all here due to space limitations. That's all for now. Time to go!
Original Article: View Chinese Version
