From January to June 2011, the company realized operating income of 120 million yuan, up 47.74% from the same period last year; realized operating profit of-6.6982 million yuan, down 42.99% from the same period last year; realized net profit of owners belonging to the parent company of-6.56 million yuan, down 39.37% from the same period last year; and realized diluted earnings per share of-0.04 yuan.
Business income increased. The company's main business is the production and sales of worsted wool products. During the reporting period, the company's domestic sales revenue increased by 69.35% over the same period last year, export revenue increased by 20.16% over the same period last year, and operating income increased by 47.74% over the same period last year, mainly due to the company's active development of new customers, cooperation with market product research and development, optimization of sales order acceptance policy, and expansion of market share through the adjustment of product structure and customer structure.
Gross profit margin fell compared with the same period last year. During the reporting period, the company's gross profit margin decreased by 1.1 percentage points compared with the same period last year, mainly due to the rapid rise in the price of the company's main raw materials and rising labor costs. Under the combined influence of inflation, the sharp appreciation of the Australian dollar against the US dollar and the continued rise in Australian wool prices, composite wool prices rose by 30-40% in the first half of the year compared with the prices at the end of 2010. Secondly, due to the fierce market competition, the sales price of the product cannot be raised synchronously with the rise in cost, which leads to a deviation between the sales price and the cost of the product to a certain extent, resulting in a decline in the company's gross profit margin compared with the same period last year. Thirdly, the domestic inflationary pressure is still large, and the rise in the price of production factors seriously squeezes the company's profit space. as the intermediate products of the textile and clothing industry chain, the transfer of product price and cost can not be coordinated synchronously. Squeezed by the upper and lower two industrial links, the profit space is further reduced.
It's important. The dispute over the trust line contract between the company and Guangzhou Branch of China China Minsheng Banking Corp Co., Ltd. has entered the process of execution and settlement, and the Shenzhen Intermediate people's Court froze the company's 50000000.00 yuan stake in Binagao. The company is facing greater pressure on capital repayment. As of the date of disclosure of the report, the company has made a payment of 35 million yuan. The balance of the estimated liability at the end of the reporting period is 46568228.77 yuan, of which the principal is 25000000.00 yuan and the interest is expected to be 21568228.77 yuan.
Profit forecast and valuation: the company's EPS from 2011 to 2013 is expected to be-0.05yuan,-0.03yuan and-0.04yuan respectively, maintaining the company's investment rating as "neutral".
Risk tips: rising raw material prices, the appreciation of the Australian dollar, domestic inflationary pressures.