From January to September 2011, the company achieved operating income of 59.8992 million yuan, down 4.56% from the same period last year; operating profit loss of 2.7088 million yuan (24800 yuan in the same period last year); net profit loss of 1.824 million yuan belonging to the owner of the parent company (1.2645 million yuan in the same period last year); basic earnings per share-0.013 yuan.

In the third quarter of 2011, the company achieved operating income of 15.54 million yuan, operating profit of-870000 yuan, net profit belonging to the owner of the parent company of 10, 000 yuan, basic earnings per share of 0. 00 yuan.

There was a slight loss in the first three quarters. The company is located in Tonghua City, Jilin Province, mainly engaged in wine production and sales. Because the region is cool in summer and cold in winter, mountain wine made from local mountain grape is one of the unique wines in China. Due to the formation of oligopoly in the domestic wine market and the impact of imported wine on the domestic market, the company is facing an increasingly fierce competitive environment. During the reporting period, the company achieved operating income of 59.8992 million yuan, down 4.56% from the same period last year, with a slight loss and a net profit of-1.83 million yuan.

During the period, the expense rate increased compared with the same period last year. During the reporting period, the company's period expense rate reached 43.8%, an increase of 9.3% compared with the same period last year. Among them, the financial cost was 1.55 million yuan, a sharp increase of 627.64% over the same period last year, mainly because the loan amount last year mostly occurred in the second half of the year, and the lower base led to a higher year-on-year growth rate this year. The company also increased its investment in the market this year. The taste and design of the products have been improved. As a result, sales promotion and marketing costs, store entry fees and advertising production costs have all increased compared with last year, making the sales expenses increase by 19.95% year-on-year to 13.56 million yuan.

The reorganization ends and the future is uncertain. The main focus of the company before is the asset restructuring that has been planned for a long time with Tongheng International, the holding company of the "Yunnan Red" series of companies. The company plans to achieve the "north-south marriage" of the wine industry through private placement. However, on July 29 this year, the company announced that because the value of the target assets did not meet the consideration requirements, the major asset restructuring could no longer be carried out in accordance with the original plan and transaction conditions, and the company signed a termination agreement with Tongheng International. Subsequently, at the interim shareholders' meeting held in August, the termination of the major asset restructuring was examined and approved. At present, the company has lost money for two consecutive years and is facing pressure to suspend listing.

Profit forecast and investment rating. Due to two consecutive years of losses in 2009 and 2010, the company has been delisted risk warning special treatment since February 16 this year.

We do not give profit forecasts for the time being, and investors can focus on trading opportunities.

Risk hint. 1) the risk of suspending listing. (2) Food safety risk.