In 2011, the company achieved operating income of 290 million yuan, down 36.56% from the same period last year; operating profit of 10.6145 million yuan, an increase of 141.87% over the same period last year; net profit belonging to the owner of the parent company was 21.5009 million yuan, an increase of 56.93% over the same period last year; and basic earnings per share was 0.0595 yuan.

In the first quarter of 2012, the company achieved operating income of 63.4257 million yuan, down 19.15% from the same period last year; operating profit loss of 19.3758 million yuan, an increase of 5.5474 million yuan compared with the same period last year; net profit loss of 17.327 million yuan belonging to the owner of the parent company, an increase of 4.118 million yuan compared with the same period last year; basic earnings per share-0.0480 yuan.

Soybean deep processing business: Harbin Hi-Tech Soybean Food Co., Ltd. achieved an operating income of 166 million yuan in 2011, a decrease of 35.33% over the same period last year, but suffered a large loss due to the rising price of bean chips, the rise of the RMB exchange rate and other factors.

Real estate project: at present, the company's only project is the "Songhua River still" real estate project located in Daoli District, Harbin City, with a planned construction area of 72700 square meters. So far, 250 million yuan has been invested. It is scheduled to go on sale in May 2012.

Investment income: Puni Solar Energy (Hangzhou) Co., Ltd., which is a shareholder of the company, achieved an operating income of 69.35 million yuan and a net profit of 7.26 million yuan in 2011 degrees. The company's holding income to the company was 1.81 million yuan in 2011. the company's 60 MW solar thin film cell production line is under construction.

Financial status of the company: in the first quarter of 2012, the company's consolidated gross profit margin was 9.51%, down 1.55 percentage points from the same period last year; the expense rate was 39.16%, down 12.13 percentage points from the same period last year. The company has a monetary capital of 48 million yuan, a decrease of 41.27% compared with the beginning of the year. it is mainly due to the increase in the early investment of the "Songhua River still" project of the subsidiary Harbin High-tech Group Real Estate Development Co., Ltd., and the increase of soybean inventory of the subsidiary Harbin Harbin Hi-Tech Oil Co., Ltd. Short-term loans and one-year maturing non-current liabilities amount to 223 million yuan, with an asset-liability ratio of 47.51%. Excluding prepaid payments, the asset-liability ratio is 46.93%. With the progress of the project, the pressure on the company to repay debt gradually appears.

In view of the lack of sustainable operation ability of the company's main business and the uncertainty of the related business integration process, we will not carry on the profit forecast and investment rating of the company for the time being.

Risk Tip: be on guard against the risks of the real estate industry.