In 2009, the company realized operating income of 1.304 billion yuan, an increase of 29.41% over the same period last year; operating profit of-5.03 million yuan; net profit belonging to the parent company of 22.62 million yuan, down 46.88% from the same period last year; and earnings per share of 0.15 yuan.

Trade, real estate and machinery manufacturing all showed signs of improvement. The operating environment of the trading business improved, with an annual income of 1.27 billion yuan, an increase of 31% over the same period last year, an operating profit margin of 1.53%, an increase of 1.30% over the same period last year, and an 8.6-fold increase in operating profit. For the whole year, the income of the real estate business was 8.4575 million yuan, an increase of 17.91 percent over the same period last year, and the operating profit margin was 60.31 percent, an increase of 8.24 percent over the same period last year. For the whole year, the operating income of the machinery manufacturing business was 8.295 million yuan, down 22.65% from the same period last year, but by tapping the potential and reducing costs, the company made the operating profit margin of the business 3.04%, an increase of 141.84 percentage points over the same period last year. All three main industries are showing signs of improvement.

The cost is well controlled in order to weather the danger. The sales expenses incurred by the company during the reporting period were 260000 yuan, down 50.76% from the same period last year, and the sales expense rate was 0.02%, 0.03% lower than the same period last year. The management fee was 34.88 million yuan, down 10.23% from the same period last year, and the management expense rate was 2.67%, down 1.18% from the same period last year. The financial expenses were 9.67 million yuan, down 27.83% from the same period last year, and the financial expense rate was 0.74%, a decrease of 0.59% over the same period last year. The company's operating performance continues to deteriorate, and the control of expenses will help the company to tide over the crisis.

The company's gross profit margin reversed in the fourth quarter, but investment income fell. For the whole year, the company's comprehensive gross profit margin was 2.94%, an increase of 2.55 percentage points over the same period last year. The company's gross profit margin in the fourth quarter was 2.76%, an increase of 9.76 percentage points over the same period last year. However, the company's net profit fell 51.26% to 19.8 million yuan in the fourth quarter of 2009, mainly due to the transfer of shares in Shanghai Nanchang Real Estate Co., Ltd. in 2008, and the current investment income was 71.23 million yuan. The company chose an opportunity to sell 100% equity in Shanghai Yangning Investment Management Co., Ltd. in December 2009, which brought an one-time income of about 35 million yuan to the company, compared with 17.86 million yuan in 2009.

The construction of wind power industry has entered the implementation stage. In 2007, the company acquired 100% equity of Inner Mongolia Huitong Energy Investment with 99 million yuan. Through the acquisition, the company will obtain the 49.5MW wind power concession and related approval documents in Bayinxile Wind Farm (Phase I) in Zhuozi County, Wulanchabu City, Inner Mongolia, and the exploration right of 1000MW wind farm in Siziwang Banner, with a total wind farm resources of 400km2. After the wind farm is fully put into operation, the annual generating capacity is 3.75 billion kilowatt hours, and the annual sales revenue is expected to reach 2.063 billion yuan and a net profit of 371 million yuan. Construction of the Bayinxil wind farm began in the second half of 2009, and the contract for the purchase of wind turbine equipment was signed in early 2010, but the construction cycle of the wind farm is usually 1.5 years, which has no impact on the 2010 performance.

Earnings forecast: the company's earnings per share from 2010 to 2012 are expected to be 0.08 yuan, 0.09 yuan and 0.08 yuan. Based on the closing price of 12.07 yuan on March 24, the corresponding dynamic price-to-earnings ratios are 160 times, 142 times and 160 times. Due to the high valuation, the company maintains its "neutral" investment rating.