Cash Flow From Business Activities Decreased By 1 Billion 500 Million &Nbsp Compared With The Same Period, And The Loss Of COFCO Real Estate Stocks Was Reversed.

In April 27th, COFCO real estate (000031.SZ) issued a quarterly report in 2011. Compared with the same period last year, COFCO real estate business activities generated cash flow A huge drop in net volume - the figure of -1.49 billion in the same period last year, has dropped to -16.84 billion in the first quarter of this year.

During the reporting period, the realization of COFCO real estate is attributable to list Shareholders net profit of 54 million 381 thousand and 700 yuan, an increase of 44.90% over the same period. However, behind the seemingly net profit growth, it may not be a good performance:

A quarterly report shows that COFCO has achieved a total revenue of 388 million 350 thousand and 800 yuan, but its total operating cost is as high as 422 million 273 thousand and 400 yuan. Among them, the financial cost is as high as 80 million 481 thousand and 200 yuan, a sharp increase of 592.35% over the same period last year. The selling expenses were 33 million 706 thousand and 100 yuan, an increase of 56.49% compared with the same period last year, while the management cost was 55 million 454 thousand and 100 yuan, up 60.37% over the same period last year - three items cost 169 million 641 thousand and 400 yuan, nearly half of the total business revenue.

As early as March 30th, COFCO announced that it was a supplementary flow. capital The company sells 9 million 700 thousand shares of China Merchants Securities through the Shanghai stock exchange system, with a preliminary estimate of 129 million yuan after tax profits.

In fact, after deducting the investment income of COFCO, the operating profit is -3392.26 yuan. A quarterly report further shows that the investment income of 170 million 68 thousand yuan is the investment income from the sale of China Merchants Securities. After deducting non recurring gains and losses, the weighted average return on net assets of COFCO increased by 2.05 percentage points compared with the same period last year.

In the first quarter, COFCO's assets and liabilities ratio was 69.72%, up nearly 2 percentage points from the beginning of the year. Compared with the 14 billion 459 million yuan inventory held by the company, the company has only 2 billion 100 million yuan in money. In 2010, COFCO real estate tried various financing channels, including the application of entrusted loans to joint venture companies, affiliate companies, trust funds and so on. Selling stocks is not the first time - as early as last September, 9 million 40 thousand shares of China Merchants Bank have been sold to supplement liquidity.

It is worth noting that the 2010 annual report shows that the investment income of COFCO has increased by 189.43% over the previous year, mainly due to the sale of China Merchants Bank and China Merchants Securities stock returns this year, and the receipt of dividends from China Merchants Bank and China Merchants Securities. Of the 737 million 651 thousand and 400 yuan of operating profits realized by COFCO in 2010, 524 million 52 thousand and 600 yuan came from investment income. After deducting investment income, it only realized 213 million 598 thousand and 700 yuan in operating profit, compared with 455 million 588 thousand and 300 yuan in the same period last year.

As the 16 central enterprises with real estate as the main business, COFCO Property is a bit embarrassed by selling off the sale of financial assets to beautify the report. Analysts in the industry pointed out that most of COFCO real estate projects are in the construction phase, and there are not many resources available for sale. At the same time, COFCO spent more than 60 billion yuan in 2010 to acquire 6 plots in Beijing, Chengdu, Hangzhou and Shenyang, and also invested in equity acquisition and cooperative development. COFCO real estate has caused analysts' concerns about their capital after big investment.