From January to September 2009, the company achieved operating income of 183 million yuan, an increase of 28.6% over the same period last year; operating profit of 24.76 million yuan; net profit belonging to the owner of the parent company of 10.37 million yuan; and basic earnings per share of 0.027 yuan.
Operating income fell in the third quarter compared with the same period last year. Operating revenue fell 21% in the third quarter compared with the same period last year, mainly due to the transfer of shares in Suzhou Taihu Lake and a change in the scope of the merger. The company's products are mainly power tools, garden machinery, alloy materials and real estate sales, of which some products are exported to Europe and the United States, affected by the financial crisis, this part of the business has declined. The increase in operating income in the first three quarters was mainly due to the transfer of investment real estate by the company's holding subsidiaries, with an income of 92 million yuan.
Gross profit margin increased year-on-year. The comprehensive gross profit margin rose 6.4 percentage points to 25.76% compared with the same period last year, mainly due to the investment real estate income of 9200 yuan and a profit of 4295.69 yuan.
Investment income supports performance. The reason for the increase is that the company gains from the transfer of its stake in Taihu Lake in Suzhou. If this income is deducted, the company's operating income in the third quarter is a loss of more than 8 million.
The reform of non-tradable shares is expected to get out of the shadow of "Delong crisis". In 2008, the company adopted the non-tradable share structure reform plan: the consideration for the company's share reform was carried out on the premise that the application for exemption of 56.76% of the shares of the company acquired by Liaoji Group was approved by the China Securities Regulatory Commission. Now Liaoji Group's exemption offer has been approved by the China Securities Regulatory Commission, after the transfer of 56.76% of the shares of the company and the consideration paid by Liaoji Group. At present, the shares of the company are all transferred, and Liaoji Group is going through the formalities of paying consideration for share reform.
Profit forecast: because the company is in the suspension period of share reform, profit forecast and rating are not given for the time being.
Risk tips: (1) the restructuring of the company has not been finally completed, the company's cash flow is tight; (2) the external operating environment is not optimistic, which is not conducive to the company's export business.