How to efficiently view annual reports

Generally, the annual report is a formal and detailed report of the company on its production and operation overview and financial status during the reporting period. After reading the annual report, investors can have a complete outline and general understanding of the basic overview and production and operation of listed companies. The content and form of annual reports disclosed by different Listed Companies vary with specific situations. For example, the financial industry, as a special industry, should be disclosed in the annual report of the deep development (0001) of its listed companies according to the special financial disclosure requirements and forms different from those of other listed companies. However, the annual report disclosure of all listed companies should contain the same basic content, and the basic format is also unified. According to China's current annual report disclosure requirements, the annual report disclosure of a listed company consists of the company profile, accounting and business information, shareholder profile, General Meeting profile, board of directors report, board of supervisors report, important matters, financial and accounting reports, and other basic standards.

The content disclosed in the annual report is all necessary and useful information for investors to fully understand the company. Only by carefully reading and analyzing all information disclosed in the annual report can investors minimize the major clues and information contained in the Annual Report and discover the hidden investment opportunities in the annual report information. At present, there are more than 1000 listed companies in Shanghai and Shenzhen, and the annual report disclosure is concentrated in a short period of time due to timeliness requirements, A large number of "Wenshan zihai" annual reports make it impossible for many investors who want to fully read the annual report. Most people often read annual reports in a leisurely manner. There is no substantial difference between this hasty way of reading the annual report and not reading the annual report. It is impossible for investors to find valuable information in their annual reports at a glance. However, it is unrealistic for most investors and even many professionals to carefully read and analyze the annual reports of each listed company.

since the information and content disclosed in the annual report are for all Annual Report readers, it includes existing shareholders, potential investors, creditors and other readers of listed companies, therefore, the main content and information that ordinary investors want to know and study are usually concentrated in a few important parts of the annual report. By grasping these key points, investors can have a preliminary understanding of the basic situation of listed companies. This information is mainly concentrated in three parts: accounting materials and business materials, Board reports, and financial reports. The accounting and business information provides investors with basic financial data and indicators such as the main business income, net profit, net assets per share, and net cash flow generated during the reporting period of listed companies; the report of the Board of Directors states to investors the company's operation, financial status, investment and other basic information during the reporting period; the financial report includes the audit report, the balance sheet, the profit and loss statement, and the cash flow statement. In the audit report, the CPA provides investors with a professional report on whether the information provided is standardized during the preparation of the annual report. The level of information quality is the key for investors to find valuable clues from the annual report. At present, the report compilation of listed companies in China is usually nonstandard. The audit opinions of CPAs on the annual report should be paid more attention to by investors. The three accounting statements provide investors with comprehensive information on the assets and liabilities structure, profitability, and cash flow of listed companies. After a preliminary understanding of the above content, investors can determine whether the annual report has the necessary and value for further detailed and careful analysis according to their own requirements, in this way, you can get twice the result with half the effort.