In 2010, the company achieved operating income of 456.9997 million yuan, an increase of 34.23% over the same period last year; operating profit of 4.3884 million yuan, an increase of 103.0293 million yuan over the same period last year; net profit belonging to the parent company was 13.7011 million yuan, turning losses into profits; and basic earnings per share was 0.04 yuan.

Overview of fundamentals: the company's controlling shareholder is Zhejiang Xinhu Group, with a shareholding ratio of 17.58%. The company's main business is real estate development and sales, soybean processing business and pharmaceutical business. Due to its high production costs and low soybean protein prices in the past two years, its soybean deep processing business has performed poorly, while Xinhu is located in Harbin. The Songhua River Shang project is the only developable real estate project in the company at present.

Operating income stopped falling and rebounded. The company's 10-year operating income got rid of the unfavorable situation of continuous decline in the past two years, achieving an increase of 34.23% and a comprehensive gross profit margin of 13.73%, an increase of 8.84 percentage points over the same period last year. Among them, the income of soybean deep processing business reached 257 million yuan, an increase of 23.19% over the same period last year, accounting for 56.58%, gross profit margin of 1.26%, an increase of 10.45% over the same period last year and a turnround from losses to profits; housing development income was 102 million yuan, an increase of 207.01% over the same period last year, income accounted for 22.37%, gross profit margin was 26.28%, an increase of 18.44% over the same period last year The revenue of the pharmaceutical industry was 53 million yuan, down 2.97% from the same period last year, accounting for 11.59%, and the gross profit margin was 39.96%, an increase of 2.12% over the same period last year. During the reporting period, the expense rate during the company period was 16.10%, down 8.85 percentage points from the same period last year. Among them, the sales expense rate was 5.93%, down 2.16% from the same period last year; the management expense rate was 8.39%; it was 6.78% lower than the same period last year.

The return on investment helps to turn losses into profits. Although the company's 10-year operating income increased compared with the same period last year and the expense rate decreased significantly during the period, its gross profit remained negative after deducting business tax and period expenses. therefore, the investment income mainly from the equity transfer income of Puni Solar helps the company turn its operating profit into profit.

What to look for in the future: the company currently holds a 36% stake in Puni, which is engaged in the development of thin-film solar energy, the company completed the pilot test of the 3-megawatt production line in July 2010, the project land has been implemented, and the design of the project is under way to prepare for the next large-scale production. In view of the fact that solar photovoltaic power generation is in line with the strategic direction of national future industrial development, and Puni solar energy has the core competitiveness in the field of thin film solar cells and system integration, it is optimistic about its future development.

Profit forecast and rating: without considering the completion of the sale of the 4.46% stake in Wenzhou Bank (which is worth about 300 million yuan based on the current average price-to-book ratio of listed banks), the company is expected to earn-0.01 yuan per share and 0.02 yuan per share for 11-12 years, respectively. Although the company's performance has improved in 10 years, the main soybean processing business can not get rid of the predicament of low gross margin in the short term. It is a serious drag on the company's performance, so it maintains its "neutral" investment rating.