Tianshan Textile Audit Firm Renamed Today Is Up Or Down.

Tianshan textile (000813) considered the adoption of the joint venture company of Wuzhou song de 2012 as the 2012 annual audit institution at the general meeting of shareholders in the year of 2011.

Recently, Wuzhou song de united accounting firm has absorbed the Huayin CPA Limited liability company and changed its name to Hua Yin Wuzhou accounting firm (special general partnership) in order to expand the scale of the firm and enhance the core competitiveness of the firm.

In view of the above reasons, the auditor of the company, "Wuzhou song de united accounting firm", has been renamed as "Huaxin Wuzhou accounting firm (special general partnership)".

The renaming of Tianshan textile does not involve the alteration of the main body. It does not belong to the replacement of the accounting firm.

Tianshan textile has developed its own brand and improved domestic sales. The company's 2010 report reversed the first quarter loss and achieved profitability.

The total profit in the first half of 2010 was 2196022 yuan, down 11.79% compared with the same period last year. The net profit attributable to shareholders of listed companies was 2785961 yuan, down 3.45% compared with the same period last year, and the earnings per share were 0.0077 yuan, down 3.75% compared with the same period last year.

Affected by the financial crisis, Tianshan textile company's foreign sales revenue was 49 million 871 thousand and 400 yuan, down 23.62% from the same period last year.

But through the construction of independent brands and sales channels, the domestic sales revenue of the company reached 72 million 514 thousand and 100 yuan, up 44.89% from the same period last year, which is the main reason for the gross profit margin growth of the company.

Among them, cashmere sweater achieved revenue of 55 million 596 thousand and 300 yuan, and gross profit margin increased by 7.15% over the same period last year.

Xinjiang Katie Investment Co., Ltd. reorganized Tianshan textile to complete the first step, completed the pfer of stock pfer procedures in July 9, 2010. At this point, Xinjiang's investment in Xinjiang held 206354457 shares of Tianshan textile, accounting for 56.78% of the total share capital of the company and became the controlling shareholder of the company.

The next step to restructure is the asset injection of Xi Tuo mining.

According to the company's announcement, the assets of the mine will not be profitable in 2010 and 2011. There are some uncertainties in the development of the mineral resources. However, the injection of mineral resources will fundamentally change the main business and profitability of Tianshan textile, and it is worth looking forward to.

Katie, the new controlling shareholder of the company, promises to make sure that Tianshan textile does not lose money in 2010, realizes net profit of not less than 10 million yuan in 2011, and achieves net profit of not less than 20 million yuan in 2012. If the above profit target is not achieved, the deficiency will be replenished in cash so as to fully protect the interests of listed companies and minority shareholders.

This commitment will prompt the company to take measures to improve its operation and ensure that the company can maintain its growth in performance before its main business has changed.

We expect the company's EPS in 2010 and 2011 to be 0.01 yuan or 0.011 yuan, giving the company a neutral rating.