Chapter 377 2002 GCA Annual Report (Part II)

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The five subsidiaries of Hanhua Group, since the independence of Hanhua Trust from Hanhua Group, Hanhua Capital led by Guo Zhen has become the oldest company in the entire group.

In the three years since its establishment, GCA Capital and its 24 private equity funds named after the 24 solar terms of the Chinese tradition have become well-known in the field of financial investment in East and Southeast Asia.

"Chairman, Mr. Zhang, everyone. After three years of development, GCA Capital currently has a total of VC department, PE department and M&A department, 24 funds, with a total asset value of 73 billion Huaxia dollars. Among them, the five funds of Lichun, Yushui, Jingding, Spring Equinox and Qingming were established the earliest, and the asset scale is relatively large. In particular, the Lichun Fund, thanks to the recovery of China's Internet industry, has increased the income of portals such as Sina, NetEase, Air.com, and TOM, and its assets have nearly doubled in the past year. At present, it has invested in 47 Huaxia Internet companies, with a total asset value of 8.24 billion Huaxia dollars. ”

"The Spring Equinox Fund is second only to the Lichun Fund in terms of capital size and growth rate, and the 27 real estate companies it invests in, as well as the related architecture, garden, building materials and interior design companies, have increased by an average of 67% per year in the past three years. At present, the total value of the company's equity and bonds is 7.18 billion Huaxia dollars. ”

"The worst performer is the Frost Fund, which has been around for a relatively short period of time and the price of wine is closely related to the vintage. As a result, the average increase in the past year has been only 5.35 per cent, the lowest among the 24 funds. ”

Finally, in 2002, the entire GCA Capital achieved a total revenue of 834 million Huaxia dollars and a net profit of 217 million Huaxia dollars. ”

Unlike the previous GCA Securities and GCA Bank, GCA Capital has no profit until the investment is withdrawn. Of course, GCA Capital is not exactly a venture capitalist. Its PE department and M&A department can get dividend income when investing in listed companies, and when participating in corporate mergers and acquisitions, it can obtain higher interest income through investment, as well as intermediary income, etc.

Guo Shouyun flipped through the information of Hanhua Capital in his hand, and after Guo Zhen finished speaking, after thinking for a while, he raised his head and said: "In more than three years, it is really good that Hanhua Capital can have the current results. However, in the past, we were greedy for everything, and her business was a little too complicated. Therefore, I decided to further standardize the business scope of GCA Capital. First, the four funds of jade, Hetian jade, Chinese art, precious wood and wine were withdrawn from GCA Capital and placed under the umbrella of GCA Fund, and four private equity funds were established 14, 15, 16 and 17. ”

GCA Capital targets venture capital and private equity investments, with a focus on corporate. Jadeite, Hetian jade, Chinese art, etc., are mainly investment varieties that maintain and increase value, and venture capital and private equity financing are two different concepts. On the contrary, the Hanhua Fund, which simply maintains and appreciates its value, is more suitable for them.

"Second, the M&A division was merged into the PE division. The new PE department consists of seven 'private equity funds', namely Guyu Fund, Frost Fall Fund, Xiaohan Fund, Dahan Fund, Winter Solstice Fund, Daxue Fund and Liqiu Fund, two 'mezzanine funds' of Lidong Fund and Lixia Fund, and two 'senior bond funds' of Xiaoxue Fund and Hanlu Fund.

"Third, the establishment of the financial services department, to provide enterprises and individuals with 'M&A advisory, restructuring and restructuring consulting, fund raising and other services, the former M&A M&A head Gao Jiancheng, as the head of the financial services department. ”

With Guo Shouyun's change, the department of GCA Capital has become a VC department specializing in venture capital, a PE department engaged in mergers and acquisitions, MBOs (management buyouts), equity and bond investments, and a financial services department specializing in financial advisory services. Service and business boundaries are much clearer than they used to be.

"Guo Zhen, if you have no opinion, the headquarters will hand over the formal rectification plan to you!"

"No, I obey the decision of the headquarters!"

In fact, he already knew about this rectification plan, and many of its contents were proposed by him. The reason for the announcement here is more to make a briefing to those colleagues in the subsidiary who do not know.

"Alright, let's move on. ”

Hearing his words, everyone's eyes couldn't help but look at the middle-aged man in a black suit and a slightly chubby figure sitting in the third seat on Guo Shouyun's right.

His name is Yu Fei, and he is currently the head of the only hedge fund under the entire GCA Group. In the past three years, under the behind-the-scenes operation of Guo Shouyun, Mangzhong Fund has won nearly 2 billion US dollars of liquidity from the financial market, which has strongly supported the rapid development of the entire GCA Group. Now, international oil and gold prices are skyrocketing because of a possible war between the United States and Iraq. They all want to know how much money the Mangzhong Fund makes from this.

"At present, the entire Mango Fund has a total of 83.7 billion Huaxia dollars under management, mainly investing in oil futures, gold spot and futures, stock markets and other markets. In 2002, it absorbed 37.3 billion Chinese dollars, with a growth rate of 42.8% in management capital, a total revenue of 3.98 billion Chinese dollars, and a net profit of 2.58 billion Chinese dollars. ”

After Yu Fei finished speaking, the people around him showed surprised or thoughtful expressions. Obviously, this result is very different from what they want to hear.

However, Guo Shouyun is very clear about the reason, and the investment in gold has not been closed yet, so it will naturally not be counted in the balance sheet in 2002.

Looking at their expressions of wanting to speak and stopping, Guo Shouyun didn't explain much, now is not the time.

"Based on your report, as well as the operational and financial documents submitted by the headquarters of the GCA Group. By the end of 2002, the entire GCA Group had achieved a total revenue of 9.567 billion Huaxia Yuan, a net profit of 3.25 billion Huaxia Yuan, and a scale of 223.44 billion Huaxia Yuan in assets under management! The company's total assets were 45.3 billion Huaxia Yuan, the capital balance was 10.54 billion Huaxia Yuan, the total liabilities were 17.5 billion Huaxia Yuan, and the current liabilities were 8.84 billion Huaxia Yuan. The data increased by 54.3% over last year... That's a very good statistic, and I hope you'll be able to give me an equally good answer by the end of 2003!"

"Well, that's all I have to say, that's all I have to hear. Regarding the development plan of GCA Group in 2003 and the business details of each subsidiary, Mr. Zhang will evaluate you and preside over the next meeting. After the words fell, Guo Shouyun got up and nodded to Zhang Lei, "Yu Fei, you come out with me!"

The latter nodded, quickly packed up his notebook and the materials on the table, and walked out quickly behind Guo Shouyun under the gaze of everyone.

"Sit!"

After walking into the chairman's office, Guo Shouyun waved his hand.

"Thank you, Chairman!"

"You're welcome. What's the latest gold price?"

"$363.47, the last price in the Chicago gold futures market. Yu Fei said quickly.

Guo Shouyun nodded, and after a moment of silence, "How much room do you think gold will have to rise in the future?"

"$15~$20! or higher. ”

After glancing at him, "I see that you are all more optimistic than me!"

Yu Fei knew that the 'we' in his mouth was the American counterpart with the same nature as himself.

"The signals of the US attack on Iraq are getting stronger, driving the prices of international gold and oil and other value-preserving products to rise rapidly. In December '02, the price of gold rose by $30 per ounce. Less than a week into January '03, gold rose by $3.6 per ounce. If this trend continues, the price of gold could rise to at least around $375 by the end of January, and even higher. ”

Looking at the way he wanted to speak, "You don't mean to say that our maximum closing price should be further raised, right?"

"The boss was clever. In fact, in the current situation, the price of $370 per ounce is not enough to fully reflect this wave of gold bull market, and I think we can take a risk, such as... Adjust the closing price upwards by $5. ”

Looking at Yu Fei's expectant eyes, Guo Shouyun shook his head after thinking slightly.

"I've thought about it many times like you, whether to raise the closing price of gold even more. But after thinking about it, I gave up. ”

"Why?"

"The closing price of $370 is already the highest value we have concluded after studying the impact of wars and crises on the gold price over the past three decades. I even deliberately increased the risk by $3 to further amplify the risk. Although, the current form of the global gold surge makes this price look a bit conservative. But you and I both know that in the financial market, prudence is the supreme rule of survival. Chasing the rise and killing the fall, even if you make it this time, you may lose a lot next time. ”

Yu Fei pondered for a moment and nodded.

"The boss taught me a lesson. It's torture to just watch the huge profits right in front of you, but not being able to eat them!"

"Don't call the money you haven't received a profit a profit. In addition, if we enter the market at $318.34, we can make $5,166 per lot of gold futures contracts even if we close our position at $370... That's $13 billion in total revenue. ”

Yu Fei's face also showed excitement.

"For $13 billion, we can get 40% of the fund, which is $5.2 billion. Capital gains tax in Hong Kong is 16.5%. After deducting labor and dividends, the self-owned capital of our Mangzhong Fund can increase by $4 billion. ”

"Have you thought about how to use the $4 billion?" Guo Shouyun said after glancing at him with a smile.

"Of course I did. As the U.S. economy comes out of the trough, there are many opportunities for the NASDAQ and NYSE, especially the Internet technology companies that the boss is optimistic about. In addition, the outbreak of the Iraq War and the sharp increase in demand for oil due to China's economic development will cause oil prices to rise, so I plan to do a long-term oil business. In addition, the entry of Huaxia into the market and the improvement of the economy will inevitably lead to the appreciation of the Chinese currency, and I also want to look for opportunities in the currency market. Moreover, there are good opportunities in the short-term gold short-term, the fast-growing real estate market in China, and the raw material futures market such as iron ore and copper ore. ”

"I can't see you have such a big appetite. However, 4 billion US dollars will definitely be deducted by Lao Zhang. Do you think the remaining funds will be sufficient for your requirements?"

"Hehe, of course! After the news of the huge profit of the Mangzhong Fund in the gold market spread, I don't know how many rich people cried and shouted to hand over their spare money to us to take care of. At that time, the scale of the Mangzhong Fund will easily break through from less than 10 billion yuan to $10 billion, or even more! At that time, I will have enough operational funds! I believe that at that time, the 'Mangzhong' will definitely become a hedge fund giant that is not inferior to the brother company 'Thunder.'"