From January to September 2009, the company realized operating income of 1.19 billion yuan, down 31.6% from the same period last year; operating profit loss of 190 million yuan; net profit loss of 180 million yuan belonging to the parent company; and basic earnings per share of-0.41 yuan.
Affected by the international financial crisis, the income of overseas companies has dropped sharply. The company mainly produces and sells industrial sewing equipment, and more than half of its operating income comes from its controlling subsidiary Germany Dukerp Adler Co., Ltd. (referred to as DA), while Germany's DA company was affected by the international financial crisis, its operating income decreased by 46% compared with the same period last year.
Gross profit margin fell sharply compared with the same period last year. In the first three quarters, the company's gross profit margin fell 10 percentage points from a year earlier to 12.46%. The sharp decline in gross profit margin is mainly due to the fact that the previous market for high gross profit margin products was mainly overseas, which was affected by the financial crisis, resulting in a reduction in market demand and lower prices, resulting in a sharp drop in the comprehensive gross profit margin of the company's sewing equipment products.
The sewing equipment industry is in the doldrums as a whole, and it is difficult for the company to turn around this year. Due to the heavy setbacks in clothing, luggage and other industries, the development of sewing equipment industry is in trouble, and product sales have declined in an all-round way. DA, the company's main subsidiary, is still underordered and full-year revenue is expected to fall sharply.
Profit forecast: the company is expected to lose money in 2009, and the company will not be given profit forecast and investment rating for the time being.
Risk tips: (1) sales decline of overseas subsidiaries due to the global financial crisis; (2) domestic production and marketing is at a low level; (3) exchange rate risk.