According to the 2006 report of G Han Merchants, the main business income, net profit and earnings per share decreased by 5%, 30% and 29.5% respectively compared with the same period last year, and the return on net assets was 3.76%, down 1.77 percentage points. The company's operations have fallen sharply, and net profit in the first half of the year would have been negative were it not for government subsidy income.
The poor performance is mainly due to the scattered business of the company, the poor profitability of many subsidiaries and the heavy burden. G Han businessmen carry out diversified operation, in addition to commodity sales, but also spend a lot of money to convention and exhibition, real estate, tourism and other directions. However, up to now, the operating results are not ideal, and the income obtained is far from the investment. Convention, exhibition, tourism and other businesses generate less than 10% of the income, but the expenses account for 40% of the total expenses. These businesses are also the main sources of the company's debt, accounting for more than 50% of the total debt.
The market performance of the stock over the past six months is better than the overall level of the commercial sector, and the company's investment highlights lie in its potential for appreciation of fixed assets, government support and the recent high-profile performance of entering the real estate industry. However, the market performance without performance support is not sustainable, and the holding risk is higher in the short term. In the long run, as the company has the potential to be acquired, investors are advised to pay attention to the event. At the same time, the company reserves a lot of land and owns a number of properties, which has great potential for appreciation in the future, which is suitable for bargain-hunting intervention and long-term holding.