From January to September 2009, the company achieved operating income of 55.06 million yuan, a year-on-year decrease of 15.6%, an operating profit loss of 860000 yuan, and a net profit of 300000 yuan belonging to the parent company, a sharp drop of 71.7% over the same period last year, and earnings per share of 0.002 yuan. Of this total, the operating income in the third quarter was 12.25 million yuan, down 13.1% from the same period last year, with a net profit loss of 750000 yuan belonging to the parent company and a loss of 0.005 yuan per share.

Business conditions are still not improving. Operating income continued to decline from January to September, narrowing slightly in the third quarter. The company's performance has not improved due to historical baggage, serious product homogenization competition and other problems. At the same time, the company's shareholders change frequently, which is not conducive to the stability of the operation.

The gross profit margin and period expense rate are stable. In the first three quarters, the gross profit margin was 48.9%, an increase of 2.4% over the same period last year; and the expense rate during the period was 39.7%, an increase of 4.4% over the same period last year.

Due to the receipt of financial brand subsidies, non-operating income increased by 960000 yuan compared with the same period last year; due to the increase in provision for impairment, the asset impairment loss increased by 1.02 million yuan compared with the same period last year.

The future depends on the implementation of asset restructuring. The company's major asset restructuring plan disclosed that it plans to issue 46.19 million A shares in a private offering at a price of 8.66 yuan per share to acquire 100 per cent shares in Tongheng International's winery, plateau wine, wine industry development and plateau biology companies. Tongheng International is mainly committed to investing and holding "Yunnan Red" series companies. After the acquisition, Tongheng International will become the largest shareholder of the company, with a shareholding ratio of 24.81%. After the injection of "Yunnan Red", the company's asset quality and profitability will be greatly improved.

Earnings forecasts and ratings. As the audit, evaluation and profit forecast of the injected assets have not yet been completed, and the fundamentals of the company have changed greatly, we do not have a profit forecast for the time being and maintain the company's "neutral" investment rating.

Risk hint. (1) market systemic risk, (2) food safety risk.