The performance in 2008 was worse than expected: the company achieved operating income of 234 million yuan in 2008, down 4.86% from the same period last year; realized operating profit of-6.6518 million yuan, down 171.53% from the same period last year; and realized net profit after tax of 3.0862 million yuan, down 64.11% from the same period last year, and earnings per share was 0.0077 yuan, worse than market expectations.
Jiuguang Department Store achieved a net profit of 116 million yuan in 2008 and contributed 32.24 million yuan to investment income. Jiuguang Department Store owns a 30% stake in Jiuguang Department Store. Jiuguang Department Store has gradually become the main source of profits since it broke even in 2007. Jiuguang Department Store achieved a net profit of 116 million yuan in 2008. After the company transferred 5% of its equity from the group company in early 2008, it held a total of 30% of Jiuguang Department Store and calculated the investment income according to the equity method. We can see that the investment income of 32.24 million yuan contributed by Jiuguang Department Store is much higher than the company's net profit or operating profit. Jiuguang Department Store made a net profit of 85.39 million yuan in 2007, an increase of 35.85% over the same period last year. For Jiuguang Department Store, which has just entered the profit period, it can still achieve more than 30% growth under the influence of the financial crisis, which fully illustrates the good profitability of Jiuguang Department Store and the good management ability of foreign management.
Shanghai 900 Group also holds a 5% stake in Jiuguang Department Store. We believe that in order to further expand and strengthen listed companies, major shareholders should gradually inject the remaining 5% into listed companies, which will further enhance the profitability of listed companies.
The sharp decline in net profit is due to the decline in Zhengzhang washing and dyeing performance and the reduction in rent in the former Jing'an Temple Antique City, which accounts for the company's main source of profit, mainly due to fierce competition in the domestic market and rising raw material prices. production costs remain high; and moved to Baoshan Industrial Park, the operating costs of the new plant increased, resulting in operating losses. In 2009, the company will take Zhengzhang brand as an important task, and vigorously enhance the development ability of the main business.
In addition, the property of Shenle Building (former Jing'an Temple Jewelry and Antique City) is facing functional adjustment, and the emptying of the original property but the failure of new investment has led to a reduction in rental income. In 2009, we will actively attract investment and strive to increase rental income.
The decline in gross profit margin and the increase in the rate of expenses during the period are the double whammy of a sharp decline in the company's net profit. In 2008, the company's gross profit margin fell from 31.39% to 27.68%, while the expense rate rose from 40.86% to 48.37%. These two factors are indicators of reducing the company's profitability, resulting in a sharp decline in the company's net profit.
