After years of thriving in the stock market as the "stock god", he announced his retirement and called it a day with a golden exit.

10 months ago 254

The "stock god" who has been active in the stock market for many years announced his retirement! Yunnan Baiyao, the former "stock god," revealed that he is temporarily leaving the turbulent secondary market investment.Meanwhile, the topic of Yunnan Baiyao losing 2.2 billion yuan in stock trading over the past two years has also become popular on Weibo."Under the principle of further focusing on the main business and investing cautiously, the company has completely exited all secondary market securities investments in the third quarter of 2023, and plans to no longer engage in the business of secondary market securities investments in 2024." This was disclosed in the investor conference record released by Yunnan Baiyao on the evening of January 17.In response to this, some netizens expressed their views: Yunnan Baiyao is effective in stopping bleeding; and others said: Focus on the main business is the right path!In fact, secondary market securities investment has been a "side business" for Yunnan Baiyao for many years. In recent years, Yunnan Baiyao has also frequently hit the hot search due to its stock trading activities.As one of the leading traditional Chinese medicine companies, Yunnan Baiyao entered the stock market in 2018 and reached its peak in 2020 after two years of exploration. At the end of that year, the trading financial assets were 11.229 billion yuan, and the net income from fair value changes reached 2.24 billion yuan. It can be seen that Yunnan Baiyao initially gained significant returns from stock trading. That year, Yunnan Baiyao resembled a "stock god".At that time, Yunnan Baiyao publicly stated that the securities investment would be led by the chairman/co-chairman, who would form an investment execution team and formulate specific investment operation methods. The chairman and co-chairman were Wang Minghui and Chen Fashu, respectively.According to reports, Chen Fashu is known as a "super bull" in the capital market.However, the secondary market quickly became a vortex of investment losses for Yunnan Baiyao, which had tasted the sweetness.According to Yunnan Baiyao's annual report, in 2021, the company suffered a fair value change loss of up to 1.929 billion yuan due to investment losses, which wiped out most of the investment income earned in the previous three years.An investor once sighed on a public platform, "Yunnan Baiyao is not focusing on its core business, and its stock investments cause significant fluctuations in net profit."At that time, Yunnan Baiyao responded by saying thatthe company fully listens to the opinions and suggestions of investors on the company's development. Based on the existing risk control measures, it strictly controls the scale of secondary market investments. In 2022, within the scope approved by the board of directors, the company will gradually reduce its holdings and not continue to increase them.However, Yunnan Baiyao's losses in securities investments continued in 2022. The annual report for that year showed that its fair value change loss exceeded 600 million yuan.Considering the details of Yunnan Baiyao's securities investments disclosed in the 2023 interim report, after "clearing" Xiaomi Group's stocks and some fund investments, the company only holds a small amount of fund investments, etc. The balance of trading financial assets as of the end of September last year, 287 million yuan, decreased by nearly 11 billion yuan compared to the peak of 121.92 billion yuan at the end of 2020.During the period when the company reduced its investments in the secondary market, Yunnan Baiyao also experienced a transition of leadership in 2023. In March of last year, the former chairman of Yunnan Baiyao, Wang Minghui, resigned from all positions in the company and its controlling subsidiaries, and CEO Dong Ming took over the responsibilities of the chairman.Dong Ming publicly stated that he wants to transform Yunnan Baiyao from a traditional manufacturing company to a comprehensive solution provider and from a regional enterprise to an international one. In the first three quarters of 2023, the company achieved operating income of 29.689 billion yuan, a year-on-year increase of 10.30%; and a net profit attributable to the parent company of 4.123 billion yuan, a year-on-year increase of 78.90%.In addition to Yunnan Baiyao, there are many other listed companies in the A-share market who are obsessed with securities investments.According to data, as of the first half of 2023, a total of over 700 listed companies participated in securities investments, including stocks, funds, bonds, and more.Among them, the apparel company YAGEO can be regarded as the "top student" in the investment field. The company's investment returns from stock trading far exceed its core business.However, in the case of increased stock market volatility, many companies have further dragged down their performance due to "stock trading". According to the 2023 third-quarter report disclosed by Huaxia Cement, its net profit attributable to the parent company in the first three quarters was 8.672 billion yuan, a year-on-year decrease of 30.17%. Looking at the reasons for the performance decline, weak downstream demand is the main reason, and unfavorable securities investments have also amplified the decline in performance.

After years of thriving in the stock market as the "stock god", he announced his retirement and called it a day with a golden exit.

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