Operating Profit Is Only 1/7 &Nbsp Net Profit; ST Qiu Lin Makes 140 Million Key Depends On Debt.

If there is no debt repayment, the net profit attributable to shareholders of listed companies will be greatly reduced.

This seems to be a paradox, but ST Qiu Lin [13.21 -4.34% shares] (600891.SH) the 2010 annual report disclosed in April 16th shows that the profit attributable to the listed company has been realized by about 140 million yuan, thanks to the increase in the debt restructuring income gained from the repayment of Goldstone's loan principal and interest during the current period.

Reconciliation increased extra income 150 million

According to the annual report, during the reporting period, the company achieved operating income of about 270 million yuan, an increase of 28.08% over the same period last year, but the total profit was about 170 million yuan, up 15579.91% over the previous year, and the net profit attributable to shareholders of listed companies was about 140 million yuan, up 2776.23% from the same period last year.

After deducting non recurring gains and losses, this figure is about 16 million 160 thousand yuan, an increase of 259.46%.

Basic earnings per share of 0.58 yuan / share, an increase of 2800% over the previous year.

The company does not distribute dividends in the year, nor does it convert capital reserve into capital stock.

The analysis shows that the profit growth of such a scale is mainly due to the increase in operating income of about 150 million yuan during the reporting period, an increase of about 149 million yuan over the previous year, an increase of 28774.87%.

The annual report explains that this income is mainly due to the increase in debt restructuring income due to the repayment of the principal and interest of Goldstone.

The profit statement shows that the operating profit during the reporting period is about 19 million 100 thousand yuan, while the out of business revenue is about 150 million yuan.

After the discount, the net profit is about 140 million yuan.

ST Qiu Lin, which was officially listed in 1996, was originally a state-owned enterprise. In May 20, 2004, after being approved by the state owned assets supervision and Administration Commission of the State Council, Heilongjiang Ben Ma Industrial Group Co., Ltd. was granted the original 59 million 910 thousand shares of Harbin Qiu Lin by the former state-owned assets supervision and Administration Commission of the Harbin Municipal People's government, becoming the largest shareholder of the company.

In 2005, Goldstone obtained the right to ST [128.85 0.02%] from the Chellona Orient Asset Management Corp, including ST Qiu Lin owed 193 million yuan in loans and 38 million yuan in interest, and 24 million 530 thousand yuan in April 30, 2010 as a result of a total of 255 million yuan.

After five years, the creditor's rights had not yet been recovered, and Goldstone finally appealed to the court.

In 2010, the two sides reached a settlement agreement on debt and paid two yuan in total in cash, 110 million yuan in cash.

As of December 31, 2010, the obligations stipulated in the debt settlement agreement had been fulfilled and the debt restructuring income was about 146 million yuan.

Share reform nail households

Since 2004, when the horse racing group took over, it made ST Qiu Lin profitable through asset disposal and debt restructuring. It resumed listing in October that year, but in the following years, the company continued to have rumors of restructuring. Although rumors eventually ended, the stock price of the company rose sharply.

It was not until September 30, 2010 that the company began to suspend trading to discuss the reform and reorganization. However, it was only in November 17th that Yihe gold entered the main and share reform plan.

The equity pfer agreement signed by major shareholder Heilongjiang investment and industrial group and the investment of horse racing company is going to be pferred to 59 million 913 thousand and 700 shares of 24.5987% of the total share capital of the company, which will be pferred to the investment company at 359 million 480 thousand yuan to 6 yuan / share.

And Ben Ma investment is the restructuring of Fang Yi and gold products Co., Ltd. (for the acquisition of the newly established company.

Yihe gold, run horse group and Tianjin Guo Kai Gold Products Management Co., Ltd. respectively hold 70%, 16%, 14% shares of the investment company.

In February 22, 2011, SST Qiu Lin issued a notice of suspension for nearly five months. The company's share reform plan increased 5 shares for every 10 shares of the tradable share. The stock registration date is February 25th, and the resumption date is March 1st.

The stock was renamed "ST Qiu Lin" at the same time.

In accordance with the implementation plan of share reform, Yihe gold, the controlling shareholder of the investment company, donated about 266 million 419 thousand and 900 yuan and 82 million yuan of cash in cash stock to the listed company to pay the cost of the share reform consideration paid by all non tradable shareholders.

All non tradable share holders will share the shares held by each of the 10 shares according to the ratio of 2.2 shares to 24844446 shares, which is the compensation for the cost of share reform.

Although planning for a long time, but the stock reform finally ended.

In February 11th, ST Qiu Lin announced that he had received the letter on the termination of major asset reorganization by Yihe gold products Co., Ltd., indicating that the assets to be injected involve more subjects, and the reorganization of assets was not completed at present. The reorganization was cancelled.