In 2012, the company realized operating income of 5.81 billion yuan, an increase of 8.22% over the same period last year; operating profit of 139 million yuan, down 43.77% from the same period last year; net profit belonging to the parent company was 77.6273 million yuan, down 49.39% from the same period last year; and basic earnings per share was 0.05 yuan. The distribution scheme is as follows: a cash dividend of 0.6 yuan (including tax) is distributed for every 10 shares.

The liquor business is a drag on full-year performance. The company is mainly engaged in the production and sales of soybean milk powder, dairy products and liquor products. The company's leading products are "Weiwei" soybean milk powder products, "Tianshan Snow" dairy products and "Zhijiang" wine products. During the reporting period, the business income of solid beverages (soy milk) and plant protein drinks was relatively stable, with a slight increase compared with the previous year. Of this total, the income of the solid beverage (soy milk) business was 1.365 billion yuan, up 4.49% from the same period last year, and that of the plant protein beverage business was 829 million yuan, up 1.89% from the same period last year. Affected by industry competition, internal product structure adjustment and other factors, liquor sales were 8.43 tons, down 29.76% from the same period last year, and liquor business revenue was 1.855 billion yuan, down 17.76% from the same period last year. The coke business income for the whole of 2012 was 1.186 billion yuan, while the production period in 2011 was only three months, an increase of 300.9% over the same period last year.

The comprehensive gross profit margin was 30.19%, down 1.55 percentage points from the same period last year. Among them, the gross profit margin of the solid beverage (soy milk) business was 38.73%, up 6.75% from the same period last year; the gross profit margin of the plant protein beverage business was 17.69%, down 1.35% from the same period last year; and the gross profit margin of the liquor business was 43.93%, up 4.47% from the same period last year.

The return on investment has been greatly reduced. The investment income in the current period was 2.0056 million yuan, down 94.87% from the same period last year, mainly due to the decrease in the income from the disposal of transactional financial assets and the distribution profits of the participating enterprises. Among them, the investment income from the disposal of transactional financial assets was 3.4704 million yuan, down 90.23% from the same period last year.

Complete the acquisition of Guizhou Alcohol Distillery and Chutian Liquor Industry. In 2012, the company's foreign equity investment was 407 million yuan, an increase of 4.35% over the same period last year. In June 2012, Guizhou Guizhou Chun Wine Industry Co., Ltd. was officially established, the company contributed 357 million yuan, through holding 51% of its shares to achieve the actual control of Guizhou alcohol wine industry. During the year, the company invested 50 million yuan to buy a 100% stake in Chutian Wine Industry, realizing a wholly-owned holding. Up to now, the company has three high-quality liquor enterprises: Zhijiang Liquor Industry, Guizhou Chun Liquor Industry and Chutian Liquor Industry. With the gradual expansion of liquor business, the development of liquor business will play a more important role for the company.

Profit forecast: in the medium and long term, the company's leading business solid beverages (soy milk) and plant protein beverages will maintain a steady growth trend, but it is difficult for the revenue growth rate to increase significantly; liquor business will gradually occupy a more important position and contribute more performance, but due to the adverse impact of policies, it is difficult to have the possibility of rapid growth in the short term. We expect the company's earnings per share from 2013 to 2015 to be 0.08,0.12 and 0.17 yuan respectively. Based on the closing price of 5.94 yuan on March 29th, 2013, the corresponding dynamic P / E ratios are 73X, 49x and 34X respectively, maintaining the "neutral" possibility. We expect the company's earnings per share from 2013 to 2015 to be 0.07 yuan, 0.11 yuan and 0.16 yuan respectively. Based on the closing price of 5.94 yuan on March 29th, 2013, the corresponding dynamic P / E ratios are 80X, 54X and 38X respectively, maintaining a "neutral" investment rating.

Risk tips: (1) the slow growth of solid beverage business income; (2) the adverse impact of the state's strict control of the three public consumption and the strict implementation of the "prohibition" policy on liquor sales.