Haining Leather City &Nbsp; Operating Gross Profit Margin Continues To Improve

In 2010,

The annual report shows that last year, the leather market of Haining leather city was newly added to the three phase of the Eastern market, the four fur market, the lighthouse Tong Er Fort Haining leather city and the Shuyang Haining leather city. The total area of the new leather city in Haining is about 330 thousand square meters. At the same time, the new leather market has contributed greatly to the revenue growth due to the good recruitment situation of the new leather city.

Take Leather City four phase project as an example, the project was opened in October 2010, that is to say, the 100% rent rate was achieved. At the same time, the other new leather city's rental rates were also at a higher level.

In addition, the rental level of the rental property before the company has also increased during the reporting period, especially in the two phase of the leather market, replacing the above 2 floor of the shoe Plaza with fur clothing shops. The adjustment of the management direction has increased the rent level considerably.

Statistics show that the rental income of leather city two phase market increased by 33 million 619 thousand yuan over the same period.

In addition, the company's merchandise sales business realized revenue of 351 million 22 thousand and 100 yuan, an increase of 54.87% compared with the same period last year, and the hotel service revenue reached 40 million 774 thousand and 600 yuan, an increase of 22.77% over the same period last year.

In the first quarter of 2011, the company achieved operating income of 294 million yuan, an increase of 177.69% over the same period, and the net profit attributable to shareholders of listed companies was 71 million 242 thousand and 300 yuan, a sharp increase of 698.89% over the same period last year.

Changjiang Securities analyst pointed out that the company's first quarter income increased substantially, mainly due to the larger growth of the rental area, which led to a substantial increase in the rental of the shops.

At the same time, in the first quarter, the part of Haining Oriental City's real estate project was confirmed, and the company recognized the part of the real estate revenue.

From the perspective of comprehensive gross profit margin, the consolidated gross profit margin of the company in 2010 was 48.12%, up 7.16 percentage points from the same period last year, while the consolidated gross profit margin increased to 53.59% in the first quarter of this year.

The main reason for the increase in gross profit margin is that the price of the shops and properties of the company is rising, while the cost rate remains stable.

Financial data show that in 2010, the gross profit margin of the company's shops and ancillary properties increased by 5.69 percentage points compared to the same period last year, and the gross profit margin of the hotel business increased by 15.44 percentage points compared with that of the previous year, and the gross profit margin of the main business was improved significantly.

The gross profit margin of the business sales and the property rental business increased by 0.16 percentage points and 0.54 percentage points respectively. The gross margin of the company's business continued to improve with the maturity of the company's business.

In the future, the scale of the leather city will continue to expand, and the proportion of gross margin rental and sale business will further expand. This will also make the company's gross margin level continue to improve.

From the point of view of cost, in 2010, the company's sales expenses and management expenses increased by 161.82% and 24.48% respectively compared with the same period last year. But due to the rapid growth of the company's revenue during the same period, the sales expenses rate increased by 1.96 percentage points to 6.44% compared with the same period last year, and the management fee rate decreased 2.04 percentage points to 4.40% over the same period, and the total cost rate of two fees remained stable.

In addition, as the company returned some of the bank loans in 2010, the current financial cost has been greatly reduced.

In the first quarter of this year, the company's sales expenses and management expenses increased by 4.54% and 22.22% respectively compared with the same period last year. However, due to the large increase in revenue in the quarter, the sales cost rate and the management fee rate all fell sharply compared with the same period last year.

In the first quarter, the company's sales expenses rate dropped 12.57 percentage points to 7.83% compared with the same period last year, and the management fee rate dropped 4.63 percentage points to 3.58%.