In 2012, the company achieved operating income of 166 million yuan, a year-on-year increase of 0.26%; operating profit of 26.1736 million yuan, an increase of 25.53%; net profit attributable to the parent company of 25.7364 million yuan, a year-on-year decrease of 75.86%; and earnings per share of 0.06 yuan. In the first quarter of 2013, the company achieved operating income of 43 million yuan, a year-on-year decrease of 12.06%; operating profit of 7.578 million yuan, an increase of 91.78%; net profit attributable to the parent company of 7.5639 million yuan, an increase of 97.13% over the previous year; and earnings per share of 0.02 yuan. The cost rate decreased significantly throughout the year. The company's consolidated gross margin during the reporting period was 30.45%, down 0.16 percentage points year on year. The cost rate for the period was 61.23%, a year-on-year decrease of 3.5 percentage points. Among them, the sales expense ratio was 21.83%, down 3.81 percentage points from the previous year; the management expense ratio was 29.08%, down 1.21 percentage points from the previous year; and the financial expense ratio was 10.31%, up 1.53 percentage points from the previous year. Currently, endogenous growth is the main focus. The company is an established state-owned enterprise in Shanghai. Shanghai Zhengzhang Washing and Dyeing Co., Ltd., a wholly-owned subsidiary, has further improved business processes and controlled operating risks in the face of factors such as sharp market fluctuations, intense competition for the homogenization of detergent products, and rising raw material costs. It has taken solid steps to further strengthen the Zhengzhang brand building and reshape the brand image of Zheng Zhang. The wholly-owned subsidiary Shanghai 900 China Sugar Liquor Co., Ltd. has now successfully achieved the national general distribution business for Wuliangye's related brands in accordance with the goal of “expanding the scale of general distribution and general agents, expanding sales outlets, innovating marketing strategies, and improving operational quality”, laying the foundation for further expanding sales scale and establishing new profit growth points. Profit forecasting and investment ratings. Due to the poor business of the company and the large share of non-recurring profits and losses, profit forecasts and investment ratings are not given for the time being due to uncertainty about the company's future. Risk warning. Expenses for the period are too high; the company's investment income is uncertain.