From January to September 2009, the company achieved operating income of 28.38 million yuan, down 49.01% from the same period last year, operating profit of-41.33 million yuan, down 259.3% from the same period last year, and net profit attributed to the parent company of-36.13 million yuan, down 209.71% from the same period last year.
In the third quarter, the operating income was 8.87 million yuan, down 20.53% from the same period last year, and the operating profit was-11.13 million yuan, down 116.22% from the same period last year. The net profit attributed to the parent company was-10.35 million yuan, down 102.06% from the same period last year, and earnings per share was-0.06 yuan.
The sales of old products have declined and the prices of raw materials have risen. The company's main products are Jinhuangtai, Yinhuangtai series of spirits and Huangtai dry red wine, Liangzhou dry red wine series. And enjoy the reputation of "Maotai in the south and Huangtai in the north". The market price of the company's old wine and spirit products has decreased, and the market share has decreased, resulting in a 49.01% drop in operating revenue compared with the same period last year. In the same period, the price of raw materials rose, further compressing the profit margin of the products. Exacerbated the loss.
New products are on the market and marketing costs are on the rise. In the case of low profitability of the company's old products, the company developed new liquor and wine series and invested a lot of marketing expenses, resulting in a 88.7% increase in sales expenses while sales revenue decreased by 49.01% compared with the same period last year. However, because it is a new product, the time to enter the market is relatively short, and the market recognition of its brand is not high, the sales of new products is not ideal, which has little impact on sales revenue.
The sugar production line is still under overhaul. The company's sugar production line is still under overhaul, causing interval costs to rise sharply, while not releasing profits for the company. Wuwei City, Gansu Province, where the company is located, is a key project area for the national implementation of comprehensive management of the Shiyang River Basin, and the key to the management of the Shiyang River Basin is to save water. the main measures taken by the local government are to vigorously develop modern sunshine agriculture, close wells and press the fields. Focus on the implementation of plastic greenhouse to grow water-saving crops, therefore, it has a certain negative impact on the company's development of farmers to plant sugar beet and increase the planting area of raw materials. Secondly, other order agricultural products such as tomato, seed corn, potato and so on compete with sugar beet planting for planting base. Third, the pressure of rising prices of raw and auxiliary materials in the sugar industry can not be ignored.
Profit forecast and rating. Excluding the influence of other non-operating factors, the company is unlikely to reverse its losses in 2009. The company's EPS in 2009 is expected to be-0.23 yuan, maintaining the company's "neutral" investment rating.
Risk hint. (1) market systemic risk, (2) food safety risk.