Gross margin below industry average standard the growth of animal husbandry is questioned

"Pig" company Hunan Great Kang Animal husbandry recently began IPO inquiry.　　The company boasts steady growth in its performance and outstanding industry advantages, but institutional investors do not seem to be buying accounts, and a fund manager in Shenzhen said they are not prepared to participate in the inquiry because of the company's low gross margin, poor growth, and many other drawbacks. Gross profit margin far below the industry average standard big Kang animal husbandry mainly engaged in breeding pigs, piglets, fattening pig production and sales. In the Shanghai and Shenzhen cities, listed companies include the new five abundant, Luonishan, shun Xin Agriculture, young eagle farming and pastoral. According to the data, 2009, the same industry listed company's average gross profit margin of 16.6%, young eagle farming and pastoral, shun Xin agriculture more than 20%, respectively, 20.61% and 22.51%.　　And the 2009 comprehensive gross profit margin of the great Kang Animal husbandry is only 12.22%, far below the industry average standard. Not only the cardinal number is low, the comprehensive gross profit margin of the big Kang Animal husbandry also presents the tendency of the rapid decline. 2008, the company's comprehensive gross margin of 16.59%, 2009 to 12.22%, and the first half of 2010, the company's overall gross profit margin was reduced to 9.87%.　　By contrast, in the first half of this year, the return on net assets of the animal husbandry has fallen from 20.65% in 2009 to 7.75% per cent. The fund manager of a fund company in Shenzhen said that the profit situation of the animal husbandry was greatly influenced by the fluctuation of the price of live pigs. Pig prices have a large state of intervention, in the increasingly obvious inflation today, the CPI is very sensitive to the price of pork is very difficult to rise, and only the first half of this year, pig feed prices rose more than 30%.　　Therefore, Tai Kang animal husbandry is likely to be listed on the face of the embarrassing loss of the situation.　　Fundraising benefits are exaggerated suspicion of the reality of the income is not satisfactory, Tai Kang animal husbandry described in the investment project also has exaggerated the proceeds of suspicion.　　According to the prospectus of Tai Kang Animal husbandry, the company intends to issue 26 million new shares and raise about 220 million yuan to invest in the construction of a 300,000-year ecological pig-raising community and an annual processing of 400,000 pig slaughter and processing projects. The company said that 400,000 pig slaughter and processing project was completed and put into production, in accordance with the annual slaughter and processing of pigs, 400,000 head of the scale, the company will be processing 22,000 tons of chilled meat, 6,000 tons of split meat, pig by-products 6,014 tons, pigskin 140,000. In economic analysis, the company said, 22,000 tons of cooling meat per ton of 17000 yuan, can produce 374 million yuan of income, and 6000 tons of meat per ton can be sold to 21000 yuan, can produce 126 million yuan income. But industry insiders said both sets of data are very large. "At present, the market price of chilled meat is about 11000 yuan/ton, 17000 yuan/ton is not sold pork." Split meat is less than 21000 yuan/ton, "said one industry insider.　　And the same is the production of cooling meat listed companies, according to the company disclosed in the 2009 Annual report, the price of chilled meat is 11,700 yuan/ton. Well, if you follow 1170,000 yuan calculation, even if the big Kang animal husbandry 400,000 pig slaughter and processing project Tatsu production and all sales, only cooling meat, the company made a false profit of billion. The risk of venture investment is not only this. Tai Kang Animal Husbandry "prospectus" shows that the company's second and third largest shareholder for the two countries of the nature of venture capital companies to create financial and pioneering investment. The two major VC shares hold 34.9% of the company, more than 30.71% of the largest shareholder. Industry insiders pointed out that the VC's profit model is the IPO exit, and through packaging, whitewashing the performance of the expected listing of the big Kang animal husbandry, if the major shareholder wind investment sleeve is withdrawn, the two-tier market share price is bound to be significantly affected.