Among these six kinds of information, business information and financial information are the most important, and they are also the main reference parts of financial analysis and valuation modeling. Other parts (such as corporate governance, etc. ) Mainly listed companies fulfill their disclosure obligations, which belongs to the part of "generally no problem, but there are big problems". Simply put, in order to save time, investors can directly look at business information and financial information on the premise of confirming that the management of the company will not deceive (small and medium-sized) shareholders.
Business information focuses on the management's interpretation of the industry and the company's business, generally in the "management's discussion and analysis" or "report of the board of directors", including industry situation, company strategy, core competitiveness analysis, business review, future outlook, risk analysis and other related business data, and the most abundant non-financial data information in the annual report is generally here.
A simple empathy will understand why this part is important: First of all, our familiarity with the company's business is generally not as good as that of management, and management often exaggerates the company's advantages, so the content of strategy and core competitiveness will only be nonsense, and there will be no shortage of dry goods; Secondly, although the management doesn't want to mention risks in a word, it has to say it under the regulatory requirements, so there will be some contents in the risk analysis section. The purpose of our investment is nothing more than discovering the advantages of the company and identifying hidden risks. Combined with the above logic, the company's advantages are extracted from the core competitiveness analysis and the hidden risks are identified from the risk analysis.
For stock investors, the conclusions drawn from business information are mostly qualitative, while quantitative analysis and value evaluation should be combined with financial information.
Three financial statements are naturally indispensable, but more important information is in the notes.
In the note part, it is good to pay attention to all kinds of "changes" in accounting policies and estimation methods that are a headache: the basis of abnormal change estimation is the common means of earnings management. Dry goods are mainly hidden in the sub-project notes at the back. On the one hand, project notes may explain the calculation process of numbers, which is beneficial for investors to trace the source more deeply; On the other hand, for larger or important subjects, project notes often contain detailed data, which is very important for financial analysis, prediction and evaluation.