2009 the company realized operating income of 362500 yuan, down 98.61% from the same period last year; operating profit was-5.5073 million yuan, compared with-26.0088 million yuan in the same period last year; net profit attributable to the parent company was 3.4173 million yuan, compared with-3794.22 yuan in the same period last year; and realized basic earnings per share of 0.03 yuan.
From January to March 2010, the operating income was 0 yuan, the operating profit was-483600 yuan, the net profit belonging to the parent company was-496000 yuan, and the basic earnings per share was-0.004 yuan.
The turnround in 2009 mainly benefited from the gains from debt restructuring. In 2009, as the project developed by Chongqing Yajia Real Estate Co., Ltd., a holding subsidiary, has been basically completed, the saleable area has been reduced, and there are no new development projects, resulting in a substantial decline in operating income. However, during the reporting period, the company recognized a profit of 9.3411 million yuan from debt restructuring, resulting in a substantial increase in non-operating income, which was the main reason for the reversal of net profit in 2009.
The ability of sustainable management has been enhanced. 1) the implementation of the major asset sale plan has been completed. The company plans to sell accounts receivable and inventory of about 163 million yuan at book value to Chongqing Yinxing Economic and technological Development Co., Ltd., a subsidiary of the controlling shareholder, and the major asset sale plan will be completed by April 23, 2010.
The implementation of this scheme will greatly improve the asset quality and sustainable operation ability of the company. 2) the bottleneck of land reserve has been alleviated. In April 2010, the company plans to buy 16 cases of adjacent land with a total area of 109698.04 square meters (164.55 mu) of Tianxian Lake, a related party of Chongqing Yinxing Zhiye (Group) Co., Ltd., the controlling shareholder, Chongqing Yinxing Zhiye (Group) Co., Ltd., which alleviates the company's current plight of insufficient land reserve, enhances the company's sustainable operation ability, and provides the company's profitability.
Profit forecast and investment rating. As the company's asset situation will change greatly, and there is still a process to purchase land for development and sales, there will be greater uncertainty in the future, and there is no profit forecast and investment rating for the time being.
Risk hint. The company is involved in a number of lawsuits. By the end of 2009, the company had been sued in a total of 25 cases, involving a total amount of 28.54 million yuan.