In 2010, the company achieved operating income of 252 million yuan, an increase of 25.1% over the same period last year; the total profit was-5.35 million yuan, and the loss was significantly reduced; the net profit belonging to the owner of the parent company was 8.05 million yuan, reversing losses compared with the same period last year, and realizing basic EPS0.06 yuan.

The increase in performance comes from the transfer of forest harvesting rights. The company's main business is forest chemical products and wood processing. The company currently owns 547000 mu of woodland. During the reporting period, the company transferred 15400 mu of standing wood cutting rights, with a comprehensive accumulation of 119700 cubic meters, worth 29.42 million yuan and 31000 mu of eucalyptus woodland and 15-year woodland use rights, with a comprehensive accumulation of 90900 cubic meters, worth 24.49 million yuan. The transfer price of the two forest cutting rights totaled 61.55 million yuan, contributing 52.96 million yuan to gross profit, while the company's operating income increased by only 50.62 million yuan in 2010, with a gross profit of 56.45 million yuan for the whole year. During the reporting period, there was no substantial improvement in the company's actual profitability.

The competition in the wood-based panel market is fierce, and the development prospect of the company is not optimistic. From the performance of Chinese forest board listed companies, except wood flooring and laminated wood flooring, the gross profit margin of wood-based panel business of all companies has been declining year by year in the past three years. The company's industrial structure adjustment, relying on the advantages of wood resources, pinning its hopes on the wood-based panel business, the development prospect is not optimistic.

Look at the future. Under the condition that the company has been in a loss for a long time, the company began to seek cooperation with other companies. 1. The company announced on October 16 that it had reached an agreement with Kunming Changsheng Hongrui on forest chemical product production line cooperation. from October 14 to 2016, the company obtained 3.3 million yuan in annual asset use fees, such as an annual output of 2000-5000 tons, the company made a profit of 50 yuan / ton, the annual output was 5001-8000 tons, the profit was 80 yuan / ton, 8001-12000 tons, the annual output was more than 12000 tons, and the company made a profit of 120 yuan / ton. two。 With the cooperation of the MDF production line with an annual output of 30, 000 cubic meters, the company can choose to obtain 40% profit or 2 million yuan of fixed income per year. 3. With an annual output of 80, 000 cubic meters, the company has reached an agreement with Kunming Chaoguan wood-based panel manufacturing company to provide working capital and technical transformation of the production line, with a production capacity of 130000 cubic meters and a cooperation period of 2010-11 to the end of 2016. the company enjoys 60% of the profit distribution.

Profit forecast and investment rating. The main business is in a state of loss for a long time, and the company makes rational use of resources to reach a cooperative operation with external enterprises, which will help the company to reverse the situation of long-term loss, but the effect of cooperative operation still needs to be observed. we do not make profit forecasts and corresponding investment ratings for the time being.