Elegant Shares Won 415 Million Yuan Box Room Order

The 8 day temporary suspension of the elegant shares revealed a major contract today.

The company said its subsidiary Langfang elegant signed a contract with the Qinhuangdao Guoqing brilliant earth and stone Engineering Co., Ltd. to sign a supply contract for the box type housing, with a total value of 415 million yuan before the tax.

The company said the contract will have a positive impact on the performance in 2010 and 2011.

The company's stock is resumed today.

The announcement shows that the amount of the contract after tax is 355 million yuan, accounting for 18.52% of the company's revenue in 2009.

The time limit for execution of the contract will be completed within 8 to 10 months after the signing of the agreement, which will have a positive impact on the revenues and operating profits of the two years.

The signing of this contract means that this year's elegant shares really have gained in the integrated housing business.

Last year, the main business of the elegant shares of the small and medium-sized board was divided into three aspects: integrated housing, ship cabin and clean room business.

However, integrated housing is still the mainstay, and last year it achieved a revenue of 1 billion 470 million yuan, far ahead of the latter 390 million yuan and more than 4900 yuan of revenue.

At the same time, the gross profit margin of its integrated housing business is the highest, reaching 26.34%, while the ship cabin matching and clean room gross margin are 23.19% and 14.52% respectively.

Due to the small scale and slow development of the cleanroom business, the company expects to lose money this year. The company will pfer the 100% stake in the company's business in April this year.

After divestiture of this business, the company will focus on developing integrated housing and ship cabins.

However, despite the signing of major contracts, it remains to be seen whether there will be a major breakthrough in the development of the integrated housing business this year.

Analysts pointed out that, due to the barriers to entry of the business is not high, so in the case of a number of integrated housing enterprises to seize the market situation, may face the risk of gross margin decline.

The company also disclosed in the 2009 annual report that due to the adjustment of the real estate market, and the industrial and civil construction projects of the real economy will not increase significantly, the domestic market demand of integrated housing business products should be relatively stable.

The domestic part of the shipbuilding business may be affected by the decline in the new handheld orders of the shipyard, but the export business is more optimistic.

According to the announcement, the above contract was signed in June 8th.

The company's share price has started since June 4th, and the 8 day share price rose 3.47%, closing at 17.57 yuan.