Net profit fell 70.3% in the first three quarters of 2009 compared with the same period a year earlier. From January to September 2009, the company achieved operating income of 161 million yuan, down 94.0% from the same period last year; operating profit was 71 million yuan, down 20.9% from the same period last year; net profit belonging to the parent company was 45 million yuan, down 70.3% from the same period last year; and earnings per share was 0.305 yuan.
The company's third-quarter net profit fell 82.6% from a year earlier. In the third quarter of 2009, the company achieved operating income of 83.89 million yuan, down 87.1% from the same period last year; operating profit of 39.15 million yuan, down 33.2% from the same period last year; net profit belonging to the parent company was 24.49 million yuan, down 82.6% from the same period last year; and earnings per share was 0.167 yuan.
An overview of the company's fundamentals-mainly engaged in real estate development, projects are distributed in Beijing, Chongqing and Changchun; current income mainly comes from Beijing projects.
The company is registered in Wuhan and used to be mainly engaged in wholesale and retail of refined oil products in Wuhan, with China Petroleum & Chemical as the controlling shareholder.
In the third quarter of 2008, the company carried out a major asset restructuring: 1), the sale of the oil products business as a whole to China Petroleum & Chemical; 2) the purchase of a 90% stake in Beijing Rongfeng Real Estate, a subsidiary of Shengshida Investment Co., Ltd., and the transformation of the main business into real estate development; 3), Sheng Shida transferred the equity of the company held by China Petroleum & Chemical (49.98% of the company's total share capital) to become the company's controlling shareholder.
Beijing Rongfeng Real Estate holds 100% stake in Chongqing Rongfeng (operating Chongqing project) and 100% stake in Changchun Rongfeng (operating Changchun project), mainly in Beijing, Chongqing and Changchun.
The company's performance fell sharply in the first three quarters (a 94% drop in revenue and a 70% drop in net profit), mainly due to the company's asset restructuring in the third quarter of 2008, and the data are not comparable.
The company's results for the first three quarters of 2008 include the results of Yuanwu Oil from January to July and Beijing Rongfeng from January to September; the first three quarters of 2009 only include the results of Beijing Rongfeng, so the data are not comparable.
The company's profitability increased significantly compared with the same period last year. The company's gross profit margin in the first three quarters of 2009 was 59.1%, up 51 percentage points from the same period last year, mainly due to the transformation of the main business.
The company is rich in settlement resources. As of September 30, 2009, the company received a balance of 113 million yuan in advance, an increase of 8.26 times over the beginning of the year.
Risk tips: the scale is small, the reserve is not enough, and the ability of sustainable development needs to be improved.