The company publishes its 2009 annual report. The company realized income of 1.388 billion yuan, an increase of 60% over the same period last year, and a net profit of 154 million yuan, an increase of 19% over the same period last year, and earnings per share of 0.72 yuan, basically in line with expectations. The profit distribution plan is 1.29 yuan (including tax) in cash dividends for every 10 shares.

The gross profit margin of the main products in the second half of the year is higher than that in the first half of the year. The gross profit margin of power station castings and forgings is as high as 36.97% in the second half of the year, much higher than 23.81% in the first half of the year; the gross profit margin of power station iron castings (wind power castings) is 22.42%, up from 15.02% in the first half of the year; and the gross profit margin of marine castings is 21.91%, up from 16.50% in the first half of the year. There may be several main reasons for the analysis: first, the product structure of delivery in the last half of the year is different, resulting in a change in gross profit margin; second, the wind power casting base was put into production in the first half of the year, and the production efficiency was not high in the second half of the year; in addition, the decline in raw material prices may also be the reason for the higher gross profit margin in the second half of the year.

The new forging project drags down the overall gross profit margin. The company realized 101.86 million yuan of forgings income this year (mainly wind power input shaft, a small part of thermal power rotors and other products). As the forging project has just reached production, the process is not perfect, the efficiency is low, and the amount of new depreciation is relatively large, resulting in a gross profit margin of only 3.41%. It is expected that the gross profit margin of the company's forging business will return to the normal level in 2010.

The growth of wind power castings and forgings is carefree. The company achieved an income of 374 million of wind power cast iron parts, an increase of 421%, and an output of about 30,000 tons. The production capacity of wind power castings in the newly built Wafangdian hot processing base reached 40,000 tons, which can meet the needs of the rapid development of wind power castings. The company signed an order of 1.24 billion yuan for power station cast iron parts, an increase of 148.69% over the same period last year, with a rapid growth rate. At present, the company also provides wind power castings and forgings for 13 customers, including Ende of Germany and Mitsubishi of Japan, and will continue to expand the sales of external customers.

The pressure of price reduction of wind power castings and forgings is great. Due to the fierce price competition of wind power, the price of wind power castings and forgings of the company will inevitably be subject to some pressure of price reduction. The company expects to provide 433 million yuan for Sinovel products in 2010, down from 495 million yuan in 2009, and 223 million yuan for Dalian heavy Industry Mechanical and Electrical equipment Company in 2010, down from 303 million yuan in 2009. these two related transactions provide products mainly for wind power castings and forgings. In addition to the reduction in the number of products provided, the reduction in unit price may also be the reason for the decrease in the amount of related transactions.