The consolidated statement of the company in 2009 showed that the operating income was 439 million yuan, an increase of 177.8% over the same period last year, and the net profit belonging to the shareholders of the parent company was 77 million yuan, an increase of 96.7% over the same period last year. Basic earnings per share is 0.22 yuan.
General situation of asset reorganization: the company was originally a Tibetan medicine production enterprise. In 2009, the company acquired 100% equity of Northern City Investment owned by Zhabei District State-owned assets Supervision and Administration Commission in the form of additional shares. The program was held on September 25, 2009 and has been successfully transformed into a real estate development enterprise. By buying assets and issuing shares to buy assets, the quality of assets has been fundamentally improved and profitability has been enhanced.
Summary of the company's fundamentals: the company is one of the key enterprises in the reconstruction and indemnificatory housing construction of the old district of Zhabei District, Shanghai, with special shareholder background, government resources and 16 years of real estate development experience. Northern City Investment launched a factory land replacement housing development model, the old bundled development model, cooperative development model and other development programs. The real estate construction area of the project under construction of the company is nearly 120000 square meters, and the main buildings are Heyuan residence, Helan Garden Phase II and Yuexiu Garden Phase II, and so on. The business income has increased significantly this year, mainly due to the settlement of Jiangqiao Base, Heyuan Mansion and Heidong Block Project. The company has less project reserves and will rely on the support of controlling shareholders in the future.
Company financial analysis: in 2009, the company's three expenses totaled 59 million yuan, and the three expense rates were 14.43%. The sales expense rate, management expense rate and financial expense rate were 5.13%, 4.45% and 4.86% respectively, which was at a high level in the industry. The company's operating cash flow per share is-0.9 yuan, mainly due to a substantial increase in inventory. the additional projects are the Pengpu Phase 10 project developed by the company's grandson, Shanghai Real Estate North Construction Co., Ltd., and the construction of Qiaodong Phase II old renovation project developed by the company's grandson's Shanghai State Investment Real Estate Co., Ltd. The company's asset-liability ratio is too high, reaching 83.65%, mainly because other payables amount to 2.2 billion yuan, including 1.5 billion yuan for the old renovation project of the second phase of Qiaodong Bridge, and another 500 million yuan for commercial housing for the relocation base, which will be transferred to the accounts received in advance after signing an agreement with the relocation households. The long-term loan amounts to 820 million yuan, and the account received in advance reaches 670 million yuan. In view of the special nature of the company, we think that the financial risk of the company is relatively small. At the same time, the accounts received in advance of 670 million yuan also provided a guarantee for the company's performance in 2010.
