The company released its annual report on February 15, 2010 with an operating income of 82.88 million yuan, an increase of 20.32% over the same period last year, and an annual loss of 22.86 million yuan.

The company explained three reasons for the loss, including a provision for bad debts of 16.15 million yuan, an increase of 5.46 million yuan in operating costs and an increase of 2.36 million yuan in management expenses. We believe that the provision for bad debts and the increase in management expenses are very likely to be related to asset restructuring, get rid of the burden, so that the restructured company's business can be "light."

The company's major asset restructuring was not over on December 21, and the company made it clear that it would continue to promote asset purchase and major asset restructuring with Tongheng International in 2011.

Li Xinxin and Wen Furong, who represent Yunnan Hongfang, served as the general manager and deputy general manager of the listed company in September 2009, respectively. If the restructuring is successful, the company is likely to have a smooth transition in the future.

The personnel structure has changed significantly (two decreases and one increase), the number of marketing personnel has plummeted by more than half (from 98 to 48), the number of managers has been reduced by nearly 50% (from 51 to 27), and the number of administrative staff has increased significantly (from 47 to 105). The total number of active employees decreased by 40 (from 663 to 623), and personnel changes should be one of the preparations for asset restructuring.

In 2011, the company's business goal is to achieve the main business income of 100 million yuan, profits of 6 million yuan, if the restructuring is successful, it is very likely to exceed the target.

The company's EPS is expected to be 0.07yuan, 0.12yuan and 0.70yuan respectively in 2011, 2012 and 2013, which is overvalued, but given a "cautious recommendation" rating considering the restructuring of the company.