ROE Island operating profit down 40% when operating results

Ning, author of the Securities Market weekly Red Weekly, after 2012 years of "performance diving", Roe Island 2013 apparently has not regained its vitality. February 26, Roe Island released a 2013-year performance letters, in the total operating income of 0.42% per cent Year-on-year, operating profit was down 40% year-on-year. Operating profit further down 40% February 26, known as "Submarine Bank" Roe Island released a 2013-year performance letters, 2013 Roe Island to achieve operating income of 2,619,229,200 yuan, the same as the previous year, the net profit of 108.0757 million yuan, slightly increased by 2.27% , operating profit of 84.1047 million yuan, continued to decline by 40.16% over the previous year. The Roe Island's operating performance failed to roll over as the company had expected, but continued to crawl on the seabed, according to the Express data. Historical data show that Roe Island for many years to maintain rapid profit growth, from 2008 to 2010 its net profit growth of 3 times times, once won a number of institutions sought after, but after 2011 years of the Four seasons in a single quarter net profit of 112.7%, 2012 became Roe Island heavy Shanyan. 2012, the operation of Roe Island encountered difficulties, the quarterly operating performance continued to decline, especially in the fourth quarter of the performance was particularly obvious, the quarterly loss of 99.74 million. From the annual report data, 2012 Roe Island operating income of 2.608 billion yuan, fell 11.2%; net profit of 106 million yuan, reduce 78.78%. In this respect, the Roe Island is due to the debt crisis and the impact of multiple factors such as natural disasters, the main product of shrimp in the scallop yield decreased, floating raft abalone production is lower than expected, resulting in a sharp decline in export trade volume. In fact, since 2010, the business situation has also shown a significant downward trend (Figure 1). Among them, Roe Island from 2010 to 2012 4 years, operating profit growth rate of 133.45%, 32.39%,-77.4% and-40.16% respectively. As a result of the rapid decline in operating profits, resulting in the Roe Island's operating profit rate fell correspondingly, in 2010-2012, Roe Island operating profit rate of 20.79%, 21.17%, 5.39% and 3.21% respectively. Operating profit rate indicates the ability of enterprises to obtain profit through production and operation, the higher the operating profit rate, the more business profit that the enterprise sells, the more profitable the enterprise is, and the lower the operating profit rate, the weaker the profitability of the enterprise. While the operating profit is the most basic business activities of the results, but also a certain period of time to obtain profits of the most important and most stable source. Roe Island in recent years the annual report data in the continued decline in operating profit and operating profit rate, showing the Roe Island profitability of the decline. In addition, in the accounting account, the operating profit content is the main business profit and other business profit deduction period expenses after the balance, and net profit is generally refers to the total profit in accordance with the provisions of the income tax after the company's profit retention, the net profit calculation formula for "net Profit = Operating profit + non-operating income-non-operating expenses-income tax feeWith ". 2013, Roe Island operating profit fell 40% and net profit turnover, net profit than operating profit of more than 23.971 million yuan, which means that Roe Island by virtue of a large amount of non-operating income, only reluctantly to ensure the 2013 net profit of the micro-increase. In other words, the Roe Island of real business benefits, and did not make the company this year's performance improved how much, Roe Island's main business, has not recovered its vitality. The double factor causes the main business to be more fragile Roe Island operating profit lower, mainly because of its main business lower. Whether it is shrimp scallop, or abalone, sea cucumber is not to let people worry. According to the 2013 Performance Express, Roe Island for operating profit fell 40.16%, originally because it is "floating raft abalone growth has not reached expectations, the domestic market price downturn, the company's abalone product sales gross profit margin lower" and "at the same time the early environmental factors on the inertia of the current impact, resulting in the production of shrimp scallop is still recovering. At present, the shrimp is the scallop and abalone is precisely the Roe Island to contribute the most income of the two products. First of all, shrimp and scallop, since 2010, the development of shrimp scallop is stumbling. From 2010 to 2012, the annual growth rate of shrimp scallop was 63.46%, 30.58% and 10.59% respectively, and the growth weakness was becoming more and more obvious; Gross margin also slipped from 62.27% in 2010 to 44.19% in 2012 (Figure 2), up from 11.45% Fell to-17.62%. The lack of growth of the scallop has led directly to the Roe Island's missed performance growth opportunities. Data show that the national production of shrimp in the bottom of the country more than 70% of the output from Roe Island, 2012, the shrimp scallop industry in short supply, shrimp, scallop price continued several prices, from the beginning of the 25 yuan/kg up to 36.5 yuan/kg, the cumulative increase of nearly 50%, helplessly watching the exuberant demand, Roe Island can not get the product. 2013, internal and external environment is still poor, under the influence of natural and policy factors, Roe Island still failed to restore vitality, main products shrimp, abalone, sea cucumber in succession shot. First of all, the yield of the scallop was seriously reduced. The reason is that the Roe Island in recent years has expanded rapidly, and the sea area has increased from more than 700,000 acres in the 2007 to 3.4 million acres, but the overall mass production has decreased due to the poor geology of many new seedlings. According to a long-term concern of the marine aquatic products Investors, "Roe Island new sea water depth reached 40 meters, the older sea increased by one times, the bottom of the shrimp scallop in the deep sea conditions, temperature, water and fishing methods are very different." Generally speaking, within 30 meters of water depth are suitable for shrimp scallop growth, 5~10 rice depth is the most appropriate. And Roe Island new sea water many more than 40 meters deep, more than 40 meters deep water depth, shrimp scallop growth rate, survival rate will decline. The large expansion of the area of the Roe Island did not match the larger yield of the shrimp, which led directly to the decrease of the average yields of the scallop, and the complicated sea environment also resulted in the cost of the related expenses. In addition, 2013, by the state to promote "strict economy, avoid waste" and "three public" consumption restrictions, many high-end seafood products can not find the market, the purchase of senior hotels and restaurants with a significant decrease, resulting in high-grade seafood procurement drink atrophy seriously. Important products of Roe Island abalone, sea cucumber as a traditional luxury food sales have been hit, abalone, sea cucumber, scallops and other prices all the way collapsed, from "aristocratic" style to "civilian" status, so that last one or two quarters, abalone, sea cucumber and other prices nearly halved. In addition, as a result of the former abalone, sea cucumber, including seafood products market is bullish, resulting in the growing size of farmers, there are some profit-driven capital also joined the investment, resulting in oversupply of the situation, combined with the foregoing factors, the formation of more products and small market situation, directly led to the collective decline of high-end seafood Shrimp, scallops, abalone, sea cucumber, pulling Roe Island to move the three main products have encountered setbacks, Roe Island's vitality, but also need to restore.