The depreciation of the red-day inventory to raise the deficiency

Overcapacity, nitrogen fertilizer industry as a whole under the background of the downturn, the red days of the 600227. SH) at the end of the first half of 2013, the final inventory value of 719 million yuan, but the inventory price is only 1.24 million yuan, the proportion is far less than the same industry listed companies. 2013.5 Annual report shows that the first half of the red days to achieve business income of 2.435 billion yuan, an increase of 116.37% per cent, the net profit attributable to the shareholders of the listed companies is 27.89 million yuan, down 49.36% per cent. Earnings showed that the end of the company inventory of 719 million yuan, compared to the beginning of the 619 million yuan increased by 16.2%. Of these, 191 million yuan of raw materials for the depreciation of 456,000 yuan, 502 million of the inventory of goods to be prepared for the depreciation of 7.86 billion yuan. Compared with the listed companies in the same industry, Chang nine biochemical (600228. SH 2013.5 Annual report shows that the final inventory of 58.59 million yuan, compared to the beginning of the 58.02 million yuan increase of 0.98%, a total of 2.1 million yuan in preparation for the decline, of which 36.2 million yuan of raw materials for 1.03 million yuan, 13.73 million yuan in the inventory of goods to mention 1.08 million yuan, Hubei Yi (000422. SZ) 2013.5 Annual report shows that the end of the inventory of 3.83 billion yuan, compared to the beginning of the 3.93 billion-yuan decline of 2.5%, a total of 39.1 million yuan in preparation for the depreciation, of which 1.73 billion yuan of raw materials for 5.97 million yuan, 2.14 billion yuan in the product to mention 33.13 million yuan. In the overall downturn in the market, why the company's proportion to be far lower than the nitrogen fertilizer industry other listed companies? The reporter contacted the chief executive and securities representative of the Red sky, but none of them answered the phone. In addition, the red-day of the company within 1 years, 1-2 years, 2-3 years, more than 3 years of accounts receivable to mention 0.5%, 5%, 10% and 20%, the standard is far less than the same industry listed companies. such as Chang-jiu biochemical, for 1 years, 1-2 years, 2-3 years, 3-4 years, 4-5 years, 5 years of accounts receivable are counted 5%, 9%, 12%, 40%, 40% and 100% respectively. As a result of the first half of 2013 nitrogenous fertilizer market overall in excess capacity, market downturn, urea prices fell sharply, the red-day net profit decline is normal. But the company adopts more radical method of calculation, less to mention inventory depreciation preparation and bad debts, there is increased profits, do high performance suspicion. As of the time of the press, the red days of 3.24 yuan, down 0.31%.