In 2010, the company achieved operating income of 82.88 million yuan, an increase of 20.32% over the same period last year; operating profit of-24.37 million yuan, net profit attributed to the owner of the parent company-22.86 million yuan; earnings per share of-0.16 yuan.
The increase in operating income cannot hide the embarrassment of losses. The company is mainly engaged in wine production and sales. 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. In 2010, although the company achieved an increase of 20.32% in operating income to 82.88 million yuan, due to the rise in the price of raw materials such as white sugar, coupled with high expenses and provision for bad debts, the company has not yet got rid of the fate of losses. the annual net profit was-22.86 million yuan.
Rebuild the marketing system and sort out the product line. Relying on the good local natural conditions, the company is mainly engaged in the production and sale of sweet wine. During the reporting period, the company planned and rebuilt the marketing system and focused on rectifying the market order, which effectively controlled the waste of sales expenses, and the sales price system returned to normal; in terms of products, after carding and adjustment, at present, four complete product lines of dry wine, sweet wine, ice wine and spirits have been formed. In the future, while striving to expand and strengthen the wine industry, the company plans to strengthen the comprehensive development and utilization of the wine culture, tourism industry and planting industry, so as to create new profit growth points. At the same time, in marketing, we continue to promote the goal of "consolidating the leading position in the sweet wine segment, creating the leading position in the grape spirit market, and seeking a breakthrough in the dry wine market", so as to enhance the company's core competitiveness.
The pace of asset restructuring has been blocked, and there is still hope for a comeback. The asset restructuring of the company and Tongheng International, the holding company of the "Yunnan Red" series of companies, has been planned for a long time, and plans to realize the "marriage between the north and the south" of the wine industry by means of private placement. However, the restructuring plan was not approved when it was submitted to the merger and reorganization Review Committee of the Securities Regulatory Commission at the end of last year. The company immediately made it clear that it would continue to promote the asset restructuring work, supplement, revise and improve the application materials according to the relevant requirements, and submit them to the CSRC for approval as soon as possible.
Profit forecast and investment rating. Due to two consecutive years of losses in 2009 and 2010, the company will be delisted risk warning special treatment from February 16. We will not give profit forecasts for the time being, and investors can follow the progress related to its asset restructuring.
Risk hint. 1) the risk that the reorganization plan will be rejected again. (2) Food safety risk.
