In 2010, the company achieved operating income of 1.517 billion yuan, up 16.34% from the same period last year; operating profit of 4.15 million yuan, down 182.56% from the same period last year; net profit belonging to the parent company was 4.16 million yuan, down 81.61% from the same period last year; and earnings per share was 0.03 yuan.

The company's gross profit margin fell due to the deterioration of the trading environment. The company's comprehensive gross profit margin was 2.7%, down 0.24 percentage points from the same period last year. While strengthening the internal management and improving the trade process, we raised the risk prevention work to the first place, and adopted the business strategy of high turnover and low risk, but the effect was not obvious in the first quarter.

The cost is well controlled in order to survive the transition period. During the reporting period, the company's management expenses were 27.4 million yuan, down 21.46% from the same period last year, and the management expense rate was 1.81%, a decrease of 0.87% over the same period last year. The financial expenses were 7.05 million yuan, down 27.17% from the same period last year, and the financial expense rate was 0.46%, a decrease of 0.28% over the same period last year.

Quit the wind power manufacturing business and begin to clean up inventory. In 2010, the company's board of directors called for an exit strategy for this machinery manufacturing business. In 2010, the company basically completed the closure and asset disposal of the machinery manufacturing subordinate chemical, beverage factory and watch factory, properly solved the problems of personnel, accounts receivable and inventory, ensured that assets were not lost, and strived to maximize the value of asset disposal. prepare for the transformation of the company. In 2010, the revenue of machinery manufacturing business reached 3.08 million yuan.

The wind power industry has entered the implementation stage. The company plans to issue 48 million shares in private, raising 581.4427 million yuan. Among them: 1. Hongchangsheng Group, the controlling shareholder, subscribed no more than 12.5 million shares with a debt of 160 million yuan to the company, and the other issued 35.5 million shares and raised 421.44 million yuan in cash for the second phase of the wind farm project.

Huitong Energy Zhuozi Bayinxile Wind Farm is located in Zhuozi County, Wulanchabu City, Inner Mongolia. The wind farm planning is divided into two phases. The first phase of the wind farm project has been completed before the end of 2010, and the installed capacity is 48MW. The second phase of the wind farm project is proposed to build an installed capacity 49.5MW. The development task of the wind farm project is mainly wind power generation to provide power resources to Inner Mongolia Power Grid. The second phase of the wind farm project has a total investment of 421.44 million yuan and is expected to provide 122.53 million kilowatt hours of clean electricity to the grid every year.

Profit forecast and risk hint: the company's earnings per share from 2010 to 2012 are expected to be 0.09 yuan, 0.08 yuan and 0.10 yuan. Based on the closing price of 14.58 yuan on March 24, the corresponding dynamic price-to-earnings ratios are 171 times, 173 times and 146 times, respectively. Due to the high valuation, the company maintains its "neutral" investment rating. It is suggested that the development of wind power business is uncertain.