For the whole of 2012, the company achieved operating income of 809 million yuan, down 34.24% from the same period last year; operating profit loss of 111 million yuan (22.2441 million yuan in the same period last year); net profit loss of 55.5391 million yuan belonging to the owner of the parent company (79.2285 million yuan in the same period last year); and basic earnings per share-0.0900 yuan.
Revenue, gross profit margin fell sharply, the main products comprehensive gross profit loss. The company is one of the leading enterprises in China's plastic packaging film industry, the main products are BOPP packaging film, BOPET film, CPP film, capacitive film. In 2012, due to the obvious downward trend of domestic and foreign industry economy, low downstream market demand, fierce domestic sales competition in the same industry, increasing overcapacity, the company's product sales and selling prices declined to varying degrees, at the same time, after the new capacity was put into production, due to the low output rate, fixed costs could not be effectively diluted, resulting in a significant decline in the profitability of the company's products. In the fourth quarter, the company's operating income continued to maintain a year-on-year decline of about 40%, while the comprehensive gross profit margin was-47%. The final full-year revenue fell 34%, and the gross profit margin fell 13.6% to-3.0%. In terms of products, the gross profit margin of CPP film and BOPET film products is negative, while the gross profit margin of BOPP membrane is only 6%. The accelerated decline in product revenue and profitability is a profound reflection of the poor macroeconomic and industry competitive environment faced by the company, and the comprehensive gross profit loss of the main products has become the main reason for the performance loss this year.
Taking into account the provision for impairment, the cost pressure was reduced in 2013, and the fundamental improvement in performance still needs to be improved by supply and demand. Combined with the market prosperity of raw materials and products, the company set aside 22.92 million yuan for impairment of raw materials in inventory, products in stock and goods in stock at the end of the year. The recognition of asset impairment loss has a certain negative impact on this year's performance. However, we believe that with the preparation, the cost pressure of the company's products is expected to be reduced in 2013, and the gross profit margin can be improved. However, the fundamental improvement in performance still awaits the pick-up of the domestic and foreign film market.
The production period of fund-raising projects has been delayed, and the process of industrial upgrading and diversification may be lower than expected. According to the national development orientation, the company is actively carrying out system integration and industrial upgrading of the existing production capacity. However, according to the information disclosed in the annual report, the 8000 tons of high-temperature ultra-thin capacitive film construction projects with an annual production capacity of 8000 tons and the new functional BOPET packaging film construction projects with an annual production capacity of 60, 000 tons are expected to reach the intended use state in September and December 2013, respectively. The lithium battery ion isolation membrane project with an annual production capacity of 60 million square meters and the solar cell packaging material project with an annual production capacity of 120 million square meters are expected to be put into production in December 2013 and November 2014, respectively, both of which are later than the previous estimated time. If the implementation progress of the project is lower than expected, it is bound to have a negative impact on the implementation of the company's overall strategic planning and the corresponding performance contribution.
Profit forecast and investment rating: take into account the company's current operating losses, do not give profit forecasts. Maintain the company's "neutral" investment rating.
Risk tips: 1) the risk that the plastic processing industry expands rapidly and the competition in the industry exceeds expectations; 2) the prospect of fund-raising projects is not as good as expected.