Exaggerated profit expectation Yellow River Whirlwind project doubtful

Recently, the Yellow River Cyclone Bulletin said, to be no less than 8.47 yuan/share of targeted additional 120 million shares, the net amount of fund-raising not more than 950 million yuan for investment in 3 projects, up to the postpartum can achieve annual sales income of 3.1374 billion yuan, net profit of 533.9 million yuan. The annual report shows that　　The company 2009 EPS for 0.082 Yuan, assuming that the project has reached production in 2009, according to the total share capital after the issuance of additional shares, EPS will soar to 1.433 yuan, the prospect of additional projects seems very tempting, but in the company's financial situation in recent years after the analysis found that the company exists in order to implement additional, exaggerated the expected performance of the project The astonishing rate of return is "flooding" the company bulletin shows that The total investment of 3 projects is 1.51 billion yuan, among them 22000 ton presses the synthesis coarse grain diamond single crystal and the big diameter polycrystalline compound industry project investment 780 million yuan, reaches the postpartum to realize the sales income 1.961 billion yuan, realizes the net profit 304.7 million yuan, the annual output 12000 ton alloy powder production line project investment 380 million yuan, may realize the sales income 600 million yuan, net profit　　Run 119.4 million yuan, an annual production capacity of 12 million grains of geological and mineral drilling super hard composite material line project investment of 350 million yuan, can achieve sales revenue of 576 million yuan, net profit of 109.8 million yuan. According to the above, the annual net profit of three projects amounted to 533.9 million yuan, the annual return on investment is as high as 35.4%, of which 22000 ton presses synthetic coarse grain diamond crystal and large diameter polycrystalline composite film industrialization Project investment return rate of annual investment is even as high as 39.06%,　　And the company's main business is the same as the prospectus of the diamond, the company intends to invest an annual output of 300 million-carat high-grade synthetic diamond project, the total investment of 194.5 million yuan, the annual net profit is expected to be 48.3 million yuan, the annual return on investment of 24.83%. 2008, the Yellow River Cyclone has issued 22000 tons of press synthesis of coarse grain diamond crystal and large diameter polycrystalline composite film industrialization Project feasibility study report, said the project annual output of coarse grained diamond 907.2 million carats, annual income can reach 881.4 million yuan, equivalent to about 0.97 yuan per carat.　　and Henan Diamond Prospectus shows that the company's annual output of 300 million-carat high-grade synthetic diamond project in normal years can achieve sales income of 146.9974 million yuan, equivalent to only 0.49 yuan per carat, and product grade higher than the Yellow River cyclone of the investment project. The price of the decline in profit expectations why not reduce the He Huang whirlwind of investment projects profitability far higher than the industry companies? Data show that, in fact, one of the company's fund-raising projects in the 22000-ton press synthesis of coarse grained diamond crystal and large diameter polycrystalline composite film industrialization Project as early as 2008 has been implemented. The company said at the time that the project's total investment of 780 million yuan, all put into production at the end of 2010, the project investment and profit data and the published data, but the project due to the impact of the economic crisis, diamond prices continue to decline, implementation progress slower than planned. Up to 2009At the end of the year, the project completed only 17.6% of the investment. The company clearly in the knowledge of the investment project profitability decline in the case, in order to smooth out the issue, to conceal the profitability of the investment project decline in the fact.　　The company's prospectus also showed that the diamond industry averaged 0.45 yuan/carat in 2007, and that it had fallen to 0.39 yuan/carat in 2009.　　Why does the fixed asset surge income not increase in the last three years the company's operating income and net profit continued to decline, 2007-2009 years of operating income of 697 million yuan, 653 million yuan and 599 million yuan, the net profit is 56.0544 million yuan, 38.7176 million yuan and 21.9616 million yuan respectively. In fact, about 70% of the man-made diamond in China is now used for stone processing.　　In recent years, as a result of the boom in the real estate market, pulling as the main decorative material demand for stone has increased, thus pulling the demand for synthetic diamond, and in such a context, the company's operating income and net profit continued to decline, once the real estate market downturn, new capacity to achieve the expected profit target 2009, the company's main business income of 598.5 million yuan, compared with 2000 years of 318.9 million yuan, operating income increased by 87.7%, 2000, the company's fixed assets of the original value of 472.6 million yuan, the end of 2009, fixed assets of the original value of 1.6188 billion yuan, an increase of up to 242.5 %, this is in contrast to the increase in operating income of only 87.7% in the period, why is the growth of business income far below the growth rate of fixed assets?　　Only by selling prices to explain this phenomenon is not convincing, after all, the company fixed assets net increase of 1.1462 billion yuan. The announcement shows that the company intends to use the three projects to raise capital investment in fixed assets of about 1.178 billion yuan, the corresponding operating income of up to 3.1374 billion yuan. At present, the original value of the company's fixed assets as high as 1.6188 billion yuan, the company's operating income is only 599 million yuan, the contrast between the two so huge, whether the production capacity is idle, or the company seriously exaggerated the profit prospects of the investment project?