Huafang Textile, "China Lottery" 265 Million Stock Trading, Listed Companies Rely On Investment Income For A Long Time.

In the morning of November 1st, Hua Fang

A notice on land compensation was issued, which opened the company to a limit and closed at yesterday's close. The company's stock price closed at 5.75 yuan.

Insiders pointed out that the land compensation amount of Huafang textile will increase the performance of the company in 2012.

In fact, since the publication of the three quarterly bulletin, the financial data of many listed companies show that in addition to the main business, the investment income has made a huge contribution to the net profit of the company, and some have even accounted for more than 50% of the net profit. These revenues make the company's annual performance basically "high pillow and no worries" and envy others.

Extra revenue and big contribution

The three quarterly report of Huafang textile shows that in the 1-9 month, the total revenue of the company was 1 billion 59 million yuan, the net profit was -5839.46 million yuan, and the balance of stock at the end of 9 was as high as 233 million yuan.

At present, the macro-economy is sluggish and the downstream consumption is weak. The textile industry is facing the situation of overcapacity.

Relying solely on the main business, the company's hope of reversing profit and loss is slim.

The market is also not optimistic about its performance in 2012. The company's share price dropped from 8.49 yuan in August 9th to 5.03 yuan in October 29th, or more than 40%.

However, in November 1st, Huafang textile announced that the company's 14 thousand and 500 square meters of land were to be collected and received 265 million yuan in compensation, which is expected to increase its pre tax profit by about 130 million yuan.

With this news, investors holding it suddenly saw hope.

Hongyuan securities three quarterly report revealed that 1-9 months to achieve investment income of 748 million yuan, an increase of 144.53% over the same period, accounting for 69.52% of the total profit.

It is very difficult for the company's performance to maintain growth without the investment income of the 748 million yuan business.

Phoenix media just released the three quarter also reflects the importance of investment income.

The profit table shows that 66.41% of the company's net profit has risen, which is entirely due to the investment income gained by the company's financial products.

The data showed that the company's investment income in 1-9 months was 503 million yuan, accounting for 74.3% of the total profit.

The contribution of investment income to overseas Chinese town A is also good.

Three quarterly reports show that the amount of investment income of the company for joint ventures and joint ventures amounted to 224 million yuan in 1-9 months, accounting for 9.68% of the total profit of 2 billion 311 million yuan in the current period.

Last year,

Earnings also contributed 229 million yuan to the company's performance, accounting for 10.94% of the company's total profits.

Even some companies succeed in making profits through investment returns.

For example, the three quarterly report shows that the substantial increase in corporate profits is mainly due to the investment income of 71 million 801 thousand and 400 yuan. It is reported that the company's share pfer to Xinjiang Ag long agricultural international cooperation Limited by Share Ltd has brought more than 70 million yuan investment income.

Excluding non recurring gains and losses, net profit will lose 44 million 115 thousand and 700 yuan, compared with the same period last year -2703.16 million, the loss is significantly expanded.

Investment income is not a long way.

The investment income is the net income from the profits earned by foreign investment, dividends and interest on bonds, minus the investment losses. It is another income outside the company's main business.

For large enterprises, investment income has little effect, such as overseas Chinese town A.

But for small and medium enterprises, such as long Ping Gao Ke, it can play a decisive role in turning losses into profits.

Zhu Lixu, an analyst with Xiangcai securities, said: "although investment income can bring performance growth to the company in the short term, it can only bring short-term trading opportunities because of its unsustainability."

"Because a listed company will face an assessment of its operating performance all year round, some companies with poor performance and poor management will whitewash the financial statements and adjust their performance by disposing of assets, such as the sale of real estate and the sale of shares.

But these can only bring short-term effects, and the main business is the basis for judging the profitability of the company.

If a company wants to continue to make profits, it must have its own core competitiveness.

Debbond securities analyst Zhang Haidong said.

Zhu Lixu said: "for investment income, we should divide it into two parts.

On the one hand, financial, insurance and securities companies, for them, the investment income is also the main business. The larger the profit from the investment income, the stronger the main business capability. On the other hand, the non-financial industry companies, such as industry, machinery, etc., their main products should be their own products' R & D and production, and the greater the proportion of investment income in their total profits, the worse their main business is.

"Listed companies in non-financial sectors, using financial products and stocks to obtain investment returns, is a sign of not being honest.

It shows that although their idle funds are sufficient, there are no good projects to invest, and the efficiency of capital utilization is not high.

Zhu Lixu road.

"At present, the economy has not yet shown signs of improvement. Entrepreneurs are more impetuous, and there may be some speculative psychology. This is also why the listed companies are involved in the investment field."

Zhu Lixu concluded.

The company can make money, such as Wuhan Jianmin lending to real estate enterprises.