Core Viewpoint - The article discusses the book "Four-Dimensional Financial Report Analysis" by Zhang Xinmin, which provides a framework for analyzing financial statements of Chinese companies, focusing on four dimensions: strategy, competitiveness, value, and risk & prospects [2][3]. Group 1: Financial Analysis Framework - The book introduces the "Zhang's Financial Report Analysis Framework," developed over 30 years, aimed at decoding the financial statements of Chinese enterprises [2]. - It emphasizes the importance of comparing parent company statements with consolidated statements, focusing on the consolidated balance sheet, income statement, and cash flow statement to understand the true execution of corporate strategy [2][3]. Group 2: Key Financial Metrics - The analysis includes distinguishing between earnings from core business versus "side businesses" or one-time gains, and differentiating between "paper profits" and actual cash flow [3]. - Key performance indicators such as gross margin and turnover rates are used to compare the real competitiveness of different companies within the industry [3]. Group 3: Mergers and Acquisitions - The book discusses the financial effects and potential risks of mergers and acquisitions, including valuation logic, goodwill assessment, and whether the acquisition price is justified [3]. - It aims to help investors identify whether an acquisition represents "true expansion" or "virtual growth," and to recognize high-risk mergers [3]. Group 4: Risk Assessment and Future Outlook - The framework includes evaluating financial risks such as debt pressure, idle funds, and overcapacity, as well as identifying abnormal profit structures or short-term embellishments [3]. - It combines changes in revenue structure with development strategies to forecast future prospects, using real case studies from well-known companies like CATL, SMIC, Midea, Gree, and others [3].