What is a Tomorrow Next Trade?

Xiao Jianhua was once regarded by the market as the "grandmaster" of the stock market. Xiao Jianhua created the "Tomorrow Department" in the domestic securities market. He graduated from the law department of a famous domestic university Peking University. Since 1993, he first established four companies in Beijing, and then these companies or natural persons set up Baotou Tomorrow Technology, Baotou Entrepreneurship, and Baotou Beipu Industrial "Three companies.

Xiao Jianhua

(Head of "Tomorrow")

Tomorrow Group is started by a group of university graduates from Tsinghua University in Peking University. After more than ten years of hard work, it has experienced many ups and downs and is still developing steadily.

From 1995 to 1996, the success of Lenovo, Founder, Tsinghua Tongfang and other school-run enterprises encouraged our group of young people in their twenties. Everyone rode their bicycles and wore stars and moons. They started as HP and IBM agents and gradually completed them. The original accumulation. At that time, the company's computer production in Zhongguancun will be quite large. Many veterans and companies in the IT industry are familiar with us today.

From 1997 to 2000, China's capital market was in a period of great development. We seized the opportunity and invested in legal person stocks and financial stocks and achieved very large returns.

After 2000, we mainly transferred to PE investment. We appreciated and learned Warren Buffett's investment philosophy and made bold attempts. The effect should be obvious.

From 2000 to 2005, the stock market experienced many bear markets. Because we adhere to the strategy of sound investment and conservative management, when the country's securities companies went bankrupt and the state invested huge sums of money to rescue securities companies, we did not misappropriate a penny of customer deposits, Needs a penny of assistance from the state, securities companies still regulate their operations to this day, and are growing more and more healthy.

When state-owned enterprises are restructuring, we actively invest and work with local governments to make the business run and transform well. The profits and taxes of listed companies that we invest in have been greatly increased, and the treatment of employees has been stable.

From 1998 to 2013, more than ten years have passed. Some local state-owned enterprises have gone bankrupt, and the companies we invested in are still developing healthily. Some outdated industries have been successfully transformed into sunrise industries, and some are in the process of transformation. The prospects should be Speaking is getting better and better.

Around 2000, the group invested in many bank shares tomorrow, such as Industrial Bank. The cost of the group's shareholding was only 1-2 yuan. Later, the listing rose to 50 or 60 yuan, and the profit was very rich. In order to support the development of the listed company, we put the billions of profits originally shared by the partners into the listed company. Shareholder income and government profits and taxes have been greatly improved, and listed companies have also been recognized by the capital market. Everyone finds that many of the listed companies related to us have financial investments, and the returns are very large. These are the original partners of the group who first invested their own money. In order to support the listed company, a part of the assets are loaded into the listed company, such as: Huazi Industrial Invested in Hua Xia Bank and Xishui Co., Ltd. in Industrial Bank. ^[3]

By controlling tomorrow's technology, hundreds of millions of yuan of funds were circled, and then four listed companies, including Huazhai Industrial, Xishui Shares, and Aegis Shares, were deployed to control the participating banks, securities, energy, transportation ... Xiao Jianhua built a huge tomorrow. territory.

Analysts pointed out that tomorrow will basically adopt a "soft investment" strategy, that is, first take out funds to invest in shares and control the enterprise, and then quickly withdraw capital. Its main purpose is to facilitate the access to credit funds by building a financial chain to cooperate with other capital operations, thereby alleviating possible financial pressure in the real world, and opening up the industrial and capital chains through controlling financial institutions.

Specifically, to summarize its capital operation, it can be divided into three methods. First, affiliates exchange or joint ventures with listed companies to create performance and high-tech concepts. Second, affiliates conduct joint ventures with listed companies to extract large amounts of funds from listed companies. Third, speculating on the price of stocks in the secondary market is profitable.

In 1993, Xiao Jianhua began to enter the capital market. With the help of the "Beijing University Concept" and "High-Tech Concept", four companies were first established in Beijing, namely Beijing Straits Hengye Computer Information System Co., Ltd. and Beijing Huide Tiandi Science and Trade Co., Ltd. , Beijing Xintiandi Interactive Multimedia Technology Co., Ltd. and Beijing Peking University Tomorrow Resources Technology Co., Ltd. Then these companies or natural persons set up three companies in Baotou, Inner Mongolia.

Among them, "Beijing Tomorrow Technology" 100% -controlled "Baotou Beipu Industry" has a registered capital of 200 million; "Beijing Huide Tiandi Science and Trade Co., Ltd." with a registered capital of 5.74 million has established a registered capital of 170 million in Baotou "Baotou City Venture Economic and Technological Development Company", of which 120 million yuan is "Beijing Huide" funded by computer equipment, and the other 50 million yuan is deposited in "China Cinda Trust and Investment Corporation Baotou Securities Trading" as "Beijing Peking University Tomorrow Resources" "Sales Department" invested 50 million yuan in security deposits.

Indirect holding of Yellow River Chemical

Xiao Chu began to taste the sweetness of the capital market by indirectly controlling Huanghe Chemical, and then renamed it tomorrow.

In July 1998, Baotou Beipu Information System Co., Ltd. was invested by Baotou Beipu Industrial with 8 million yuan and Baotou Venture with 2 million yuan.

In April 1999, Huanghe Chemical invested 30 million yuan to acquire 80% of the equity of Baotou Beipu Information, and subsequently increased its capital by 20 million yuan in August, accounting for 93.3% of the equity. In December, it acquired all its equity, and Baotou Beipu Information became its A wholly-owned subsidiary, Huanghe Chemical therefore has a high-tech concept and is no longer a traditional chemical company.

On December 23, 1998, Huanghe Chemical announced that it transferred 84.7% of the equity of Yellow River Carbon to Baotou Venture, obtaining a total price of 20.94 million yuan and a transfer profit of 12.56 million yuan. In that year, the total profit of Huanghe Chemical was 63.12 million yuan, and the profit from the transfer accounted for 31% of the total profit of the year. In 1998, Huanghe Chemical's return on net assets was 14%. This transfer income ensured that Huanghe Chemical reached the qualification for rights issue. In the second year, Huanghe Chemical changed to Tomorrow Science and Technology.

Tomorrow, the transfer of Baotou Beipu Information will receive a cash income of 33 million yuan and an added value of 23 million yuan. This money is comparable to the price of the Yellow River Carbon. The two were subtracted, and Xiao did not lose money, but Huanghe Chemical obtained the transfer income, retained the rights to distribute shares, and obtained the high-tech concept.

On July 29, 1999, Beijing Peking University Tomorrow Resources acquired 47% equity interest in Baotou Chemical Group Corporation, the parent company of Yellow River Chemical, and renamed it Baotou Peking Tomorrow Resources Technology Co., Ltd.

As the flagship enterprise of Tomorrow, Tomorrow Technology currently has a large number of financial assets in addition to chemical and energy assets, including Zhejiang Financial Leasing Co., Ltd., Baotou Commercial Bank, Xiamen Commercial Bank, Baotou Public City Credit Cooperative, and other financial institutions. Institutional equity and acquisition of Changcai Securities. Changcai Securities was formed in January 2002 by the merger of Changchun Finance and Securities Co., Ltd. with Changchun Trust and Investment Company. It is reported that tomorrow technology has become the largest shareholder of Changcai Securities.

However, Zhejiang Financial Leasing, which occupies the top spot in the entire financial leasing industry, was hollowed out tomorrow.

In November 2001, Zhejiang Financial Leasing started an asset reorganization and shareholding system reform for the purpose of increasing capital and expanding shares. Tomorrow, it will spend nearly 700 million yuan and purchase a 90% stake in the company at a premium, becoming a controlling shareholder. Later, the China Banking Regulatory Commission verified that Zhejiang Financial Leasing's shareholder-related transactions involved up to 2 billion yuan in capital: Zhejiang Financial Leasing first purchased tomorrow's assets as its own, then used this asset as a collateral to loan to the bank, and then returned the assets back. Lease to the Department of Tomorrow, and return the funds obtained from the bank. And the most deadly in the whole process is that many assets sold to Zhejiang Financial Leasing tomorrow do not exist.

Cleverly taking Chinese capital industry

Huazi Industry is the second move of the capital market tomorrow.

In December 1997, Baotou Pioneer was assigned to Baotou Sugar Factory and Baotou Electronic Instrument Factory, which belong to Baotou Prairie Sugar Group Co., Ltd. In July 1998, Huazi Industry was established. Baotou Venture Capital invested in the net assets of Baotou Sugar Factory and Baotou City Electronic Instrument Factory. The appraised value was 76.169 million yuan, and 55.01 million shares were converted into shares. Baotou Beipu Industrial invested 23 million yuan and converted 16.61 million shares. Xiao Zong invested nearly 100 million yuan and owned 71.62 million shares of Huazhai Industrial. Baotou Pioneer and Baotou Beipu Industrial became the second and third largest shareholders of Huazi Industry respectively, and Xiao was elected as the vice chairman and general manager of Huazi Industry.

On December 10, 1998, Huazi Industrial was listed with an issue price of 4.5 yuan per share and a total of 289 million funds raised. After the issuance, the total share capital was 240 million shares and the net asset per share was 2.23 yuan.

At present, in addition to the assets of the sugar industry and the dairy industry, investors are most optimistic about the financial assets of Huazi Industrial-holding 2.51% equity of Huaxia Bank and 26.84% of Hengtai Securities. With the help of financial assets, the main business income of Huazi Industrial in 2007 decreased by 29.05% year-on-year, and the company's operating profit increased by 160.51% year-on-year to 84,827,200 yuan.

In addition, Inner Mongolia Wuhai West Zhuozishan Tertiary Industry Development Corporation also holds 88 million shares of Hengtai Securities. And Sansan Company is the second largest shareholder of Xishui shares of the company tomorrow.

Signboard Love Makes Shares

In July 2000, Tomorrow's Beijing Tongda Zhiyuan and Tiantian Technology jointly held Aishang shares, and the then controlling shareholder of Aishang Tianjin Dagang Group had a fierce equity dispute.

In September 2000, "Ai Shi shares" held an extraordinary shareholder meeting. "Tomorrow Department" 7 people entered the "Ai Shi shares" board of directors. Kang Xi, who had previously served as the finance and accounting director of "Hua Zi Industrial", served as the chief financial officer.

The current assets of Aizhi shares mainly include transportation, energy and finance. The transportation assets are mainly Tianjin Xinyu Expressway Co., Ltd., which holds a 70% stake. The energy assets are mainly Shandong Taishan Energy Co., Ltd., Shanxi Dayuan Coal Industry Co., Ltd. and gas stations. Financial assets include Beijing International Trust and Investment Co., Ltd.,

On April 15, in an exclusive interview with our reporter, Xiao Jianhua told the history of the group's entrepreneurship and quoted Li Jiacheng as saying that entrepreneurship is difficult and "difficult to name."

"All dealers are down"

"21st Century": To many people, "Tomorrow" is a big bookmaker in the stock market.

Xiao Jianhua: After so many years in the stock market, many people think we are bookmakers. I don't think this actually knows stocks. As far as the stock market is concerned, the people in Zhuangzhuang are generally unable to get out. The people who really sit in Zhuangzhuang may put themselves in, and the capital chain will definitely break. The people who really make money are with Zhuang or with the trend.

You can check the information. Tomorrow the group is successful because it invested a large number of employee stocks and financial stocks around 2000. When it invested in Industrial Bank that year, the cost was less than two dollars, and when it went public, it rose to sixty to seventy dollars. The cost of Huaxia Bank was one dollar. Later it rose to seventeen or eight dollars (Note: Public information shows that as early as 1998 before tomorrow's formal entry, Tomorrow Technology had invested 20 million yuan to hold a 13.9% stake in Baoshang Bank. In 2003, Huazi Industrial Invested 15 million yuan to hold a 6.8% stake in Baoshang Bank. Aishang shares and Xishui shares also invested in Industrial Bank in 2001 and 2002 respectively).

When the two bank stocks were loaded into Huazi Industrial and Xishui Co., the cost was very low. In fact, the two listed companies put in a profit of almost 6-8 billion. This information can be checked. However, the money we actually raised from the listed company did not exceed 2 billion, and this information can also be checked.

"21st Century": Someone has calculated a book for you, including 5 listed companies including Tomorrow Technology, Huazi Industrial, Xishui, Aishang and Northern Ventures. From 1999 to 2012, the total equity financing amount It was 4.217 billion yuan.

Xiao Jianhua: For the financial stocks we put in, the profit we put in will be far greater than the amount raised from the market. This number can be checked. So when I look at the "empty listed company" statement, I think it is incredible that the money of a listed company is very laborious to transfer investment. It requires a return on net assets and the cost of capital is very high.

We put financial stocks at a very low cost, but both public shareholders and the government shared huge profits and profits and taxes.

"21st Century": Some people will also question that although tomorrow's department will pack excellent assets into a listed company, the real purpose is to use this to manipulate the stock price, and then transfer assets after sitting in the estate.

Xiao Jianhua: This is just a theoretical model. From the founding of the Chinese securities market to the present, you can look at the history. All the bookmakers have collapsed, because a "bookmaker" carrying the burden of a baggage will basically be crushed once it faces a large economic cycle adjustment.

Secondly, you can calculate an absolute value, such as Chinese capital and Xishui. The funds raised by these companies, including the secondary market, are definitely not as good as the profits brought by the two pieces we installed. Regardless of Xingye or Huaxia, the increase rate is very high, with a profit of 6 to 7 billion for 100 million shares alone.

"21st Century": Always holding these two banks?

Xiao Jianhua: We have been holding it, and the two banks have been sending stocks constantly. The actual profits are very large.

"21st Century": If you do not count at the highest stock price in 2007, according to the current valuation, the bank shares held by Chinese capital and Xishui will contribute a lot of profits, or will you take more money?

Xiao Jianhua: Even at the current price and in terms of return on investment, it still contributes a lot. Now Industrial Bank also has dozens of dollars. By sending shares, you can measure a number by yourself. The return on investment for a listed company is an amazing number.

"21st Century": Why were you willing to put such a good profit project into a listed company at that time, was it just because you were optimistic about bank stocks?

Xiao Jianhua: Right. We want to turn these listed companies into financial investment-oriented companies. According to Warren Buffett's theory, we hope to slowly pass the high-quality assets of listed companies to increase the stock prices of listed companies and realize a virtuous circle step by step. However, we found that the domestic stock market is still in its infancy, and sometimes the real high-quality things are not reflected.

"21st Century": Why not use another method, such as Warren Buffett, to master a platform and make this company a star company. Why will the group take a diversified investment tomorrow?

Xiao Jianhua: Prior to the split share reform, China's listed companies were too restrictive, and the capital allocation of light-equity shares was subject to a series of approvals. Often when you want to raise funds when the stock market is good, but after the approval of the Securities Regulatory Commission, the stock market has come down, it is difficult for you to coordinate these factors. In addition, the approval process is sometimes laborious, and the return on investment is not proportional to the time cost.

I am proud to say that the return on investment of the group tomorrow will always be relatively close.

Tomorrow Group, mainly a company composed of Peking University Tsinghua students, still depends on intelligence and IQ. You can take a look at the so-called listed companies we manipulate, in fact, the market value is not large, and the combined profit is not much. For Tomorrow Group, it is definitely not a strategic focus, and the market value of these stocks at the time was only a few billion.

I have studied some of the stock markets in Taiwan, and I have also studied the stock markets of Hong Kong and the United States. I think the really correct method is still Warren Buffett's.

I have stayed abroad for many years. By the way, the outside world said that I was avoiding overseas because of the Wang Yi case of Pacific Securities. You can go to the political and legal department to inquire. Wang Yi and I are not familiar with it.

"I and Wang Yi are not familiar"

In the media narrative, the 2008 Pacific Securities Corruption Incident was a turning point between Xiao Jianhua and Tomorrow.

As one of the shareholders of Pacific Securities, how Xiao Jianhua and his future can completely escape from each other has always been a mystery of the capital market.

After the Wang Yi case, Xiao Jianhua was far from overseas. Xiao Jianhua gave a categorical denial: "Some say that I fled abroad because of the" Wang Yi case ". This is indeed a downright lie. The truth is that I and Wang Yi are not familiar with it. I have not listed with any of the Securities Regulatory Commissions The leaders have contacted me, and I am not familiar with any of the SFC leaders involved in the media. "

"In the more than ten years since the company's senior executives started their business, no one has been investigated, border-controlled, interrogated, or punished by the state's political and legal department, so all the abscondings and how are basically irresponsible guesses."

"21st Century": The media reports that there are many extraordinary ways in the listing of Pacific Securities. Everyone thinks you have operated this matter. What do you think?

Xiao Jianhua: In fact, I am not very clear about the actual listing process of Pacific Securities, but the shell is ours, and some people cooperate with us.

The process of Pacific Securities' listing is not like the media said, "The exchange sends a message to the Office of the Securities Regulatory Commission." This is an imagination, which is impossible. As a national regulatory authority, the operation of a government department is not possible in such a process. The office must issue a document and the number of chairpersons must sign it.

In addition, since the establishment of Tomorrow Group, no one in charge of the deputy general manager or above has been investigated and questioned by the national political and legal department. I have been able to check for more than ten years. I have not said that I have been wanted by any government including the Chinese government. Control and investigation, this is queryable.

Buffett's Chinese disciples?

How big are the asset maps of Xiao Jianhua and "Tomorrow"?

"New Fortune" magazine survey results show that tomorrow will be in charge of, control 9 listed companies, holding, equity participation in 30 financial institutions. These 30 financial institutions include 12 city commercial banks, 6 securities companies, 4 trust companies, 4 insurance companies, 2 fund companies, 1 futures company, and 1 asset management company. The total assets of these institutions are nearly Trillion.

"Tomorrow's department seems to be an all-round mixed financial giant. And we can't be sure so far. This is the whole picture of tomorrow's department without any omissions." New Fortune magazine commented.

"New Fortune" also analyzes that the "Tomorrow Department" asset layout also has two major characteristics: decentralized and hidden. For example, most of the listed companies controlled by Tomorrow, especially financial institutions, are held by decentralized intermediary holding companies, and they are multi-layered holdings. Tomorrow, the holdings are hidden at the top level. Furthermore, even one of them Listed companies or financial institutions are also dispersedly held by a number of intermediate holding companies, making the outside world feel like they are blind, only to know whether they are dead or not.

"I feel that the strength of Tomorrow Group is greatly exaggerated, and that any company has its own rules for its emergence, growth, and growth. I have not been in the country for ten years, and it is impossible for a company to develop for more than ten years beyond the enterprises of its era. Many, there must be a deviation between the summary method and the analytical method. "

However, Xiao Jianhua did not give the exact size and size of the assets controlled by the group tomorrow.

For example, investing in commercial banks. Many companies across the country have invested in banks. The calculation method cannot be based on the investment bank's total assets as the total assets of the enterprise group. Otherwise, Mr. Liu Yonghao of New Hope Group, Mr. Zhang Hongwei of Oriental Group, Mr. Shi Yuzhu of Giant Group, Mr. Lu Zhiqiang of Oceanwide Group, Mr. Guo Guangchang of Fuxing Group, and the company's total assets have already passed several trillion, because they are all major shareholders of Minsheng Bank.

Many investments are formed by history, and they are all financial investments. They are the same as Mr. Shi Yuzhu's investment in Minsheng Bank, except for financial equity returns. They do not participate in the management and operation of the bank.

And the bank's management is local growth, local appointments and little relationship with the group tomorrow. Take the chairman of Baoshang Bank Li Zhenxi as an example. Before the technology investment of tomorrow, the chairman of Li Zhenxi is the person in charge of the bank. Baoshang Bank is a large local profit and tax player, mainly developed by the team of Chairman Li Zhenxi under the leadership and support of the local government.

In addition, these people have overestimated my capabilities. It is incredible that they can control a completely localized bank when they are not in China for ten years.

Xiao Jianhua said, "Tomorrow Group is a PE investment company." His example is Warren Buffett.

"Investment in financial companies is not controlled as well"

"21st Century": How big is the group's assets tomorrow?

Xiao Jianhua: I paid attention to the report. I think there are errors in the statistical and comprehensive methods. In fact, the group is a PE investment company tomorrow. Tomorrow, the group will not be as big as imagined. Objectively speaking, I think it is similar to the enterprises of the contemporary era and the current enterprises.

"21st Century": Have you estimated it yourself?

Xiao Jianhua: I have never estimated it. Why it is difficult to estimate now is because of valuation issues. Many of our investments in financial equity were invested ten years ago, or more than ten years ago.

"21st Century": What are your strategic ideas for investment in the financial industry? What do you want to make it like?

Xiao Jianhua: Actually, my own idea is Warren Buffett's model, and Warren Buffett has a very simple life. In Omaha, there are a team of more than ten people, and he believes in these managements. the way. But in the domestic environment, it takes a long distance to achieve this process.

"21st Century": Do you think that investing in financial companies does not need to be controlled under the current reality of China?

Xiao Jianhua: I think it is better to invest in financial companies without control. Shi Yuzhu also has this view. For example, Minsheng Bank, shareholders are very clear, only by supporting the team led by Chairman Dong Wenbiao, Minsheng Bank will do better and better.

Including Ping An's A-share investment, no one at Ping An is better than Chairman Ma Mingzhe. Objectively speaking, the purpose of investment is to make money. You ca nt just control and not make money. If you always want to control and do nt want to make money, take the process as the result. I agree with Warren Buffett. As a smart investor, what you want is income, not the hardship of a very difficult process. If you spend a lot of time trying to control others, you actually lose a lot of freedom. . I'm very sincere.

For example, Li Zhenxi, the chairman of Baoshang Bank, was mentioned. In fact, when we took a stake in a Baoshang bank more than a decade ago, Li Zhenxi was an executive of Baoshang Bank, and the bank's cadre appointment power was also in the local government. I can say for sure that very few companies generally control local banks. We do not have control over Baoshang Bank, and our shares in Baoshang Bank are continuously diluted.

"21st Century": You don't want to be Ma Mingzhe or Guo Guangchang yourself?

Xiao Jianhua: I don't want to, I haven't thought of it at all. So did Shi Yuzhu. My own character is a person who likes reading freely.

Because I don't like to go to work, I haven't been to the office for more than ten years. I basically walk around the sea, walk around the hotel, and listen. This is how I work. I don't like programmatic things.

There are several main reasons why I did not choose to work in politics from the chairman of the student union to business. First, I think objectively speaking, excellent people are in the party and government system. The quality of these people in politics is much higher than those in business. Secondly, I think that those who work in politics are more devoted than rewarded. Thirdly, in the field of politics, the people in our business sector have to enter the competition, which can only be at a lower level. People like us, people with a little bit of macro thinking, if they go to the business world, they will choose generals in the mule, which has a great advantage.

People have a sense of self-knowledge. When I was at Peking University, I met many high-level leaders of the party and the country. This work is unbearable without strong dedication and enthusiasm.

"21st Century": Some people say that your investment is more hidden and diversified. Why not make the company easier? Use a general transparent architecture?

Xiao Jianhua: At the time, many PE companies were invested. During the registration process, they did not think so carefully at the beginning. I think that the formation of any idea is a long time. It is not planned at the beginning. Historical conditions. For example, it is required to be registered locally when the shares are purchased, the profits and taxes must be kept locally, and the proportion of shares must not exceed much ... This is all formed in history.

"21st Century": Do you want to change this situation now?

Xiao Jianhua: Gradually. I want to gradually realize the first transparency and sunshine and the second simplification in the future. This judgment is correct.

"21st Century": The market has always had such doubts: the Department of Tomorrow has developed to this day, it is a large scale, and it makes a lot of investment. Where does the money come from?

Xiao Jianhua: Objectively speaking, our investment in legal person stocks and financial stocks more than a decade ago was very profitable, and it was very profitable in the Hong Kong capital market and the domestic capital market. Second, as long as you invest in a good project, financing must be very easy. Now the Securities Regulatory Commission's new policy, securities companies can do asset management, and insurance companies' investment has also been liberalized.

I think the scarcity is high-quality projects rather than money. We are more compliant in adopting modern financial open funding methods rather than rumors that we are using the funds of the financial institutions we invest in.

In fact, these small financial institutions cannot solve the big money problem.

"21st Century": Where did you get cheaper funds?

Xiao Jianhua: The first bucket of gold was for computers. In fact, before we went to Inner Mongolia, the profit had already exceeded one billion.

Now the method of raising funds is more market-oriented. We have good projects and mainly talk to large insurance companies. Now big insurance companies are very worried about the way out of funds. If there are now projects that return more than 10%, it is not difficult to raise a few tens of billions. It is nothing more than transparent operation, profit sharing and joint supervision. Very simple way.

Objectively speaking, investment capacity is a scarce resource.

"21st Century": Tomorrow you have invested in so many financial institutions. The outside world thinks that you are building a financial capital empire.

Xiao Jianhua: Even if we had a controlling investment before, it gradually began to be converted into a financial investment. For example, Hengtai Securities, we were originally a major shareholder. Later we introduced Financial Street as a major shareholder. The agency department of the Securities and Futures Commission invited someone to be the chairman, and now we are basically out of management. For some very clean and high quality companies, we are giving up management. Because we have to do what we are good at ourselves.

"21st Century": Some people think that after the Delong system, your layout of the financial sector is more hidden and decentralized.

Xiao Jianhua: We have turned to financial investment more to win by volume, not by holding. The media has written us a little omnipotently. We are crossing the river by feeling the stones. For example, Warren Buffett has invested in many companies, and this is a diversified investment.

"21st Century": There are many rumors about your background.

Xiao Jianhua: I believe there will be a lot of news about me in the next ten years. I am indeed a good person at M & A. In the future, we will have a lot of domestic and overseas mergers and acquisitions, and everyone will pay attention to us. In the future, we will definitely make several large overseas mergers and acquisitions with the needs of the country.

Tomorrow, the Group will focus on the status quo based on the media, and will gradually come into the public view. I think at that time, everyone's guess will be much less, and at the same time, the interest of the media in the Group will not be so great. ^[3]