Financial Performance - Revenue for the first quarter was ¥190,895,016.52, a decrease of 24.57% compared to ¥253,071,491.69 in the same period last year[8] - Net profit attributable to shareholders was ¥20,284,207.44, an increase of 43.84% from ¥14,101,919.20 year-on-year[8] - Basic earnings per share increased to ¥0.0679, up 43.86% from ¥0.0472 in the same period last year[8] - Total assets decreased by 4.19% to ¥1,809,850,538.13 from ¥1,888,971,512.86 at the end of the previous year[8] Cash Flow and Operating Activities - Net cash flow from operating activities was -¥65,846,692.88, a decline of 153.89% compared to -¥25,935,418.67 in the previous year[8] - Operating costs decreased by 34.86%, indicating a larger decline than the revenue drop[15] - Income tax expenses decreased by 91.62%, primarily due to a significant reduction in the profit of the subsidiary Fengle Agricultural Chemicals[16] - Cash received from tax refunds decreased by 83.85%, mainly due to reduced export tax rebates received by subsidiaries Fengle Agricultural Chemicals and Fengle Spices[16] - Cash received from other operating activities increased by 554.07%, primarily due to an increase in government subsidies received by the parent company[16] - Cash received from borrowings decreased by 68.68%, primarily due to a reduction in borrowings during the period[16] - Cash paid for dividends, profits, and interest decreased by 73.91%, mainly due to a decrease in loan interest during the period[16] Shareholder Information - The number of ordinary shareholders at the end of the reporting period was 53,309[11] - The largest shareholder, Hefei Construction Investment Holding Group Co., Ltd., holds 34.11% of the shares[11] Strategic Initiatives and Collaborations - The company received strategic emerging industry funding of ¥9,600,000, contributing to a 67.06% increase in deferred income[15] - The company signed an asset transfer agreement with Beicheng Construction Investment for the transfer of Fengle Ecological Park assets valued at 140.5028 million yuan[17] - The company is collaborating with Hefei Urban Construction to develop a real estate project in Sanya, with a registered capital of no less than 20 million yuan for the joint venture[19] Investments and Financial Products - The company has purchased financial products with a total amount of 100 million yuan, with a remaining balance of 65 million yuan as of March 31, 2015[20] - The company held 21,475,146 shares of Huishang Bank, which is listed in Hong Kong[27] - There were no securities investments during the reporting period[26] - The company did not engage in any derivative investments during the reporting period[28] Corporate Governance and Commitments - The company committed to not planning any major asset restructuring for at least six months following the resumption of trading on November 28, 2014[25] - The company successfully completed a major asset restructuring plan on June 19, 2014, but it was later terminated due to certain defects in the target assets[24] - The company has maintained its independent operational system despite the control by the investment group[23] - The company has fulfilled its commitments to minority shareholders in a timely manner[25] Investor Relations - The company engaged in discussions with various institutional investors regarding industry development and its basic situation[30] - There were no significant changes in net profit expected for the first half of 2015 compared to the same period last year[26] - The company has not provided any written materials during investor meetings[30]

Financial Performance - The company's operating revenue for 2014 was ¥1,378,800,048.18, a decrease of 18.60% compared to ¥1,693,934,876.29 in 2013[22] - The net profit attributable to shareholders for 2014 was ¥60,968,414.12, representing an increase of 9.32% from ¥55,768,436.48 in 2013[22] - The net profit attributable to shareholders after deducting non-recurring gains and losses was ¥5,052,197.56, a decrease of 53.34% from ¥10,827,771.50 in 2013[22] - The net cash flow from operating activities increased by 23.50% to ¥248,397,277.61 in 2014, compared to ¥201,139,041.76 in 2013[22] - The basic earnings per share for 2014 was ¥0.2040, up 9.32% from ¥0.1866 in 2013[22] - The total assets at the end of 2014 were ¥1,888,971,512.86, a decrease of 5.48% from ¥1,998,443,123.11 at the end of 2013[22] - The net assets attributable to shareholders increased by 4.27% to ¥1,344,803,426.17 at the end of 2014, compared to ¥1,289,771,488.54 at the end of 2013[22] - The weighted average return on net assets for 2014 was 4.63%, slightly up from 4.54% in 2013[22] Revenue Breakdown - In 2014, the company achieved a sales revenue of CNY 1,378.80 million, a decrease of 18.60% compared to the previous year[29] - The seed business revenue declined by 17.14%, with a slight increase in gross margin[29] - The agricultural chemical business saw a revenue increase of 2% and a gross margin increase of 0.94%[29] - The spice business revenue decreased by 46.24%, but the gross margin increased by 9.15%, achieving profitability[29] - The total operating revenue for the seed segment was CNY 584,528,318.19, a decrease of 17.14% compared to the previous year[47] - The total operating revenue for the agrochemical segment was CNY 540,665,510.17, an increase of 2.00% year-on-year[48] - The total operating revenue for the spice segment was CNY 233,710,501.64, a significant decrease of 46.24% compared to the previous year[48] - The total operating revenue from hotel services was CNY 16,362,071.10, reflecting a decrease of 30.90% year-on-year[48] Cash Flow and Investments - The company reported a net cash flow from operating activities of ¥248,397,277.61, which represents a 23.50% increase compared to the previous year[44] - The net cash flow from investment activities was CNY -87,052,421.45, a decrease of 47.05% compared to the previous year[45] - The net cash flow from financing activities was CNY -198,339,293.72, a dramatic decrease of 342.75% year-on-year[45] - The total cash and cash equivalents decreased by CNY 36,548,559.20, a decline of 354.39% compared to the previous year[45] - The total investment amount for external investments during the reporting period was ¥24 million, a decrease of 65.89% compared to ¥70.37 million in the previous year[57] Research and Development - Research and development expenditures amounted to ¥50,377,000, representing 3.65% of operating revenue, with 11 new varieties approved during the reporting period[42] - The company participated in 10 provincial and above-level research projects, including 7 national-level projects, enhancing its research and innovation capabilities[42] - The company launched new seed varieties, including "NK718," and established a conventional rice seed division to enhance market presence[30] - The company initiated nine new research cooperation projects and made progress in transgenic corn research and molecular breeding[31] Dividends and Profit Distribution - The company plans to distribute a cash dividend of ¥0.30 per 10 shares to all shareholders[5] - The total cash dividend distributed for 2014 was CNY 8,966,279.04, representing 14.71% of the net profit attributable to shareholders[90] - The cash dividend per 10 shares was CNY 0.30 (including tax), with a total of 298,875,968 shares as the basis for distribution[92] - The cash dividend accounted for 100% of the total profit distribution for the year[90] Operational Challenges - The company's sales volume for spice products decreased by 50.81%, production volume decreased by 97.36%, and inventory decreased by 43.71% compared to the previous year, primarily due to market-driven production adjustments[36] - The hotel services segment experienced a 30.91% decrease in sales revenue, an 87.09% decrease in production volume, and a 33.55% decrease in inventory, largely influenced by the operating environment of the catering industry[36] Corporate Governance - The company has established a comprehensive internal control system in compliance with relevant laws and regulations, ensuring effective corporate governance[162] - The board of directors has established various committees, including a strategy committee and an audit committee, to enhance governance and oversight[162] - The company has maintained transparency in information disclosure, ensuring all shareholders have equal access to information[163] - The independent directors actively participated in board meetings and provided suggestions on management, project development, internal control, financial auditing, and information disclosure, all of which were adopted by the company[169][170] Shareholder Structure - The total number of shares outstanding is 298,875,968, with 298,873,605 being unrestricted shares, representing 100% of the total[136] - The largest shareholder, Hefei Construction Investment Holding Group Co., Ltd., holds 34.11% of the shares, totaling 101,941,200 shares[138] - The second-largest shareholder, Zhou Minghua, holds 1.69% of the shares, totaling 5,040,000 shares[138] Environmental and Social Responsibility - The company strictly adheres to environmental protection policies and has taken measures to reduce pollution from its subsidiary[95] - The company actively participates in social responsibility initiatives, including environmental protection and poverty alleviation[94] Future Outlook - The company anticipates opportunities from national reforms in state-owned enterprises and a reduction in seed inventory, which may enhance industry conditions[79] - The company plans to focus on seed industry development, particularly in rice, corn, and vegetables, while adjusting product structures in agricultural chemicals and spices to improve profitability[80] - The 2015 operational plan emphasizes internal reforms, management efficiency, and marketing innovation to adapt to new industry norms and enhance overall performance[80]

[Important Notice](index=2&type=section&id=First%20Section%20Important%20Notice) [Board of Directors' Statement](index=2&type=section&id=1.1%20Board%20of%20Directors'%20Statement) The company's Board of Directors, Supervisory Board, and senior management ensure the truthfulness, accuracy, and completeness of this quarterly report and assume corresponding legal responsibilities - The company's Board of Directors, Supervisory Board, and senior management guarantee the truthfulness, accuracy, and completeness of the report content, assuming individual and joint legal liabilities[4](index=4&type=chunk) - The company's person in charge, the head of accounting work, and the head of the accounting department guarantee the truthfulness, accuracy, and completeness of the financial statements[4](index=4&type=chunk) [Key Financial Data and Shareholder Changes](index=3&type=section&id=Second%20Section%20Key%20Financial%20Data%20and%20Shareholder%20Changes) [Key Accounting Data and Financial Indicators](index=3&type=section&id=II.I.%20Key%20Accounting%20Data%20and%20Financial%20Indicators) In the first three quarters of 2014, the company's operating revenue decreased by 25.61% year-over-year, while net loss attributable to shareholders narrowed by 61.55%, primarily due to approximately **CNY 44.76 million** in non-recurring gains and losses Key Financial Indicators for the First Three Quarters of 2014 | Indicator | Year-to-date as of Reporting Period End | YoY Change (Year-to-date as of Reporting Period End) | | :--- | :--- | :--- | | Operating Revenue (CNY) | 652,083,767.98 | -25.61% | | Net Profit Attributable to Shareholders of Listed Company (CNY) | -25,857,950.62 | 61.55% | | Net Profit Attributable to Shareholders of Listed Company After Non-recurring Items (CNY) | -70,617,214.46 | -3.44% | | Net Cash Flow from Operating Activities (CNY) | 74,961,116.23 | 45.10% | | Basic Earnings Per Share (CNY/share) | -0.0865 | 61.56% | Non-recurring Gains and Losses (Year-to-date as of Reporting Period End) | Item | Amount (CNY) | | :--- | :--- | | Gains and Losses from Disposal of Non-current Assets | 27,412,296.95 | | Government Grants Recognized in Current Profit or Loss | 17,644,379.00 | | Net Non-operating Income and Expenses | -297,412.11 | | **Total** | **44,759,263.84** | [Shareholder Information](index=4&type=section&id=II.II.%20Total%20Shareholders%20and%20Top%20Ten%20Shareholders'%20Holdings%20as%20of%20Reporting%20Period%20End) As of the end of the reporting period, the company had **63,109** common shareholders, with Hefei Construction Investment Holding (Group) Co., Ltd. as the largest shareholder holding **34.11%** - As of the end of the reporting period, the total number of common shareholders was **63,109** accounts[11](index=11&type=chunk) Top Five Shareholders' Holdings | Shareholder Name | Shareholder Nature | Holding Percentage | Number of Shares Held | | :--- | :--- | :--- | :--- | | Hefei Construction Investment Holding (Group) Co., Ltd. | State-owned Legal Person | 34.11% | 101,941,200 | | PICC Life Insurance Co., Ltd. - Dividend - Individual Dividend | State-owned Legal Person | 2.59% | 7,739,062 | | Zhou Minghua | Domestic Natural Person | 1.69% | 5,040,000 | | Bainian Cosmetics & Healthcare Products Co., Ltd. | Domestic Non-state-owned Legal Person | 1.21% | 3,628,931 | | PICC Life Insurance Co., Ltd. - Universal - Individual Universal | State-owned Legal Person | 1.08% | 3,229,169 | - The largest shareholder has no related party relationship or acting in concert relationship with other shareholders[12](index=12&type=chunk) [Significant Events](index=6&type=section&id=Third%20Section%20Significant%20Events) [Analysis of Major Financial Item Changes](index=6&type=section&id=III.I.%20Changes%20and%20Reasons%20for%20Major%20Accounting%20Statement%20Items%20and%20Financial%20Indicators%20During%20the%20Reporting%20Period) During the reporting period, several financial items experienced significant changes, with advances from customers increasing by **219.51%** due to new operating year seed prepayments, and investment and non-operating income significantly rising from ecological park transfer and government grants Major Balance Sheet Item Changes and Reasons | Statement Item | Change Rate | Reason for Change | | :--- | :--- | :--- | | Prepayments | 52.56% | Initial investment in hybrid rice and corn seed production bases | | Other Receivables | 43.88% | Mainly due to outstanding ecological park transfer payments from Beicheng Jiantou | | Advances from Customers | 219.51% | Prepayment of seed funds at the start of the new operating year for the seed industry | | Accounts Payable | -62.81% | Due to payment of seed funds | | Taxes Payable | 332.79% | Mainly due to land value-added tax and business tax accrued from the ecological park transfer | Major Income Statement Item Changes and Reasons | Statement Item | Change Rate | Reason for Change | | :--- | :--- | :--- | | Investment Income | 136.44% | Investment income from the transfer of the ecological park | | Non-operating Income | 1869.87% | Transfer of expired special funds for bio-breeding capacity building and industrialization, and receipt of government support funds | [Progress of Significant Events](index=6&type=section&id=III.II.%20Analysis%20of%20Progress%2C%20Impact%2C%20and%20Solutions%20for%20Significant%20Events) The company is undergoing two significant events: the transfer of Fengle Ecological Park assets, with slow payment recovery, and a major asset restructuring involving share issuance and cash payment, which has led to a continuous stock suspension since June 19, 2014, due to regulatory approvals - Fengle Ecological Park asset transfer: Asset handover was completed on July 24, 2014, for a transfer price of **CNY 140.5 million**, with **CNY 42.15 million** received as of the reporting period end, and remaining balance outstanding[17](index=17&type=chunk)[18](index=18&type=chunk) - Major asset restructuring: The company's stock has been suspended since June 19, 2014, due to planning for share issuance and cash payment for asset acquisition and fundraising, with the restructuring process delayed by the need for approval from relevant authorities for the target's institutional reform[18](index=18&type=chunk)[19](index=19&type=chunk) [Commitments](index=8&type=section&id=III.III.%20Commitments%20by%20the%20Company%20or%20Shareholders%20Holding%205%25%20or%20More%20Shares%20During%20or%20Continuing%20into%20the%20Reporting%20Period) During the reporting period, neither the company nor its shareholders holding 5% or more shares had any new or ongoing commitments - During the reporting period, there were no commitments by the company or shareholders holding 5% or more shares that occurred during or continued into the reporting period[22](index=22&type=chunk) [Annual Operating Performance Forecast](index=8&type=section&id=III.IV.%20Forecast%20for%202014%20Annual%20Operating%20Performance) The company has not provided a forecast for its 2014 annual operating performance nor issued any related performance warnings - The company has not forecasted cumulative net profit from the beginning of the year to the end of the next reporting period or issued any performance change warnings[23](index=23&type=chunk) [Securities Investment Status](index=8&type=section&id=III.V.%20Securities%20Investment%20Status) The company made no new securities investments during the reporting period but holds **21,475,146** shares of Huishang Bank (03698.HK), classified as available-for-sale financial assets - The company holds **21,475,146** shares of Huishang Bank (03698.HK), with this equity investment accounted for as available-for-sale financial assets[23](index=23&type=chunk) [Derivative Investment Status](index=8&type=section&id=III.VI.%20Derivative%20Investment%20Status) The company had no derivative investments during the reporting period - The company had no derivative investments during the reporting period[24](index=24&type=chunk) [Investor Relations Activities](index=8&type=section&id=III.VII.%20Registration%20Form%20for%20Investor%20Relations%20Activities%20During%20the%20Reporting%20Period) The company did not engage in any investor relations activities such as research visits, communications, or interviews during the reporting period - The company did not conduct any investor relations activities such as research visits, communications, or interviews during the reporting period[25](index=25&type=chunk) [Impact of Accounting Standard Changes](index=8&type=section&id=III.VIII.%20Impact%20of%20Newly%20Issued%20or%20Revised%20Accounting%20Standards%20on%20the%20Company's%20Consolidated%20Financial%20Statements) Following the revised Accounting Standard No. 2, the company reclassified investments in associate companies without actual control from "long-term equity investments" to "available-for-sale financial assets," increasing the latter's balance by **CNY 19,740,160.27** - Due to the implementation of the newly revised "Accounting Standard for Business Enterprises No. 2 – Long-term Equity Investments," the company reclassified investments in associate companies without actual control from "long-term equity investments" to "available-for-sale financial assets" for accounting purposes[26](index=26&type=chunk) - This accounting standard change resulted in an increase of **CNY 19,740,160.27** in the ending balance of the "available-for-sale financial assets" account compared to the beginning of the period[26](index=26&type=chunk)

Financial Performance - The company's operating revenue for the first half of 2014 was ¥619,195,059.61, a decrease of 4.93% compared to ¥651,337,670.54 in the same period last year[21]. - The net profit attributable to shareholders of the listed company was ¥14,588,071.90, an increase of 8.63% from ¥13,428,647.07 year-on-year[21]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was -¥2,745,572.22, a decline of 120.51% compared to ¥13,388,147.37 in the previous year[21]. - The net cash flow from operating activities was ¥10,647,247.54, down 84.57% from ¥68,989,105.72 in the same period last year[21]. - The total assets at the end of the reporting period were ¥1,944,966,529.84, a decrease of 2.68% from ¥1,998,443,123.11 at the end of the previous year[21]. - The net assets attributable to shareholders of the listed company were ¥1,299,047,452.26, an increase of 0.72% from ¥1,289,771,488.54 at the end of the previous year[21]. - The basic earnings per share for the reporting period was ¥0.0487, an increase of 8.46% compared to ¥0.0449 in the same period last year[21]. - The diluted earnings per share also stood at ¥0.0487, reflecting the same growth of 8.46% year-on-year[21]. Revenue Breakdown - Seed business revenue increased by 9.97%, while gross margin decreased by 21.38% due to inventory write-downs in the previous period[32]. - Agricultural chemical sales revenue grew by 24.30%, with gross margin remaining stable compared to last year[32]. - Fragrance sales revenue declined by 43.53% due to weak market demand and falling prices, although overall gross margin improved by 7.39%[32]. - Hotel services revenue decreased by 13.63%, primarily impacted by construction-related disruptions[29]. Investment and Projects - The company committed a total investment of CNY 42,597 million, with a cumulative input of CNY 38,128.19 million, achieving an investment progress of 89.6%[48]. - The seed production and processing project reached an investment completion rate of 97.79%, with CNY 10,851.51 million invested out of CNY 13,200 million[48]. - The chemical intermediate project has not yet reached the planned progress, with CNY 9,799.88 million invested out of CNY 11,000 million, achieving 89.09%[48]. - The company plans to complete the rectification of the chemical intermediate project by the end of 2014 due to safety and environmental inspections[49]. - The new pesticide environmental protection formulation project has an investment completion rate of 84.02%, with CNY 7,142.12 million invested out of CNY 8,500 million[49]. - The company has adjusted its project plans based on market changes, including the transformation of certain seed processing projects into new processing centers[49]. Financial Health and Equity - The total owner's equity at the end of the reporting period was CNY 1,308,001,000, up from CNY 1,201,377,000 in the previous year, reflecting a growth of approximately 8.9%[147]. - The company reported a capital increase of CNY 42,305,171 due to owner contributions during the period[147]. - The total capital stock as of June 30, 2014, was CNY 298,875,968, with a registered capital of CNY 298,875,968[151]. - The total amount of undistributed profits was reported at 721,763.20 CNY, showing a decline from the previous period[141]. Governance and Compliance - The company’s governance structure has been enhanced to comply with regulatory requirements, including the establishment of various committees[68]. - The company did not engage in any major litigation or arbitration matters during the reporting period[69]. - The company has not reported any significant non-fundraising investment projects during the reporting period[59]. - The company did not experience any penalties or rectifications during the reporting period[95]. Cash Flow and Liquidity - The net cash flow from operating activities was 10,647,247.54 CNY, a decrease of 84.6% compared to 68,989,105.72 CNY in the previous period[132]. - Cash flow from investment activities showed a net outflow of 20,117,985.67 CNY, compared to a net outflow of 26,855,116.70 CNY in the previous period[133]. - Cash inflow from financing activities was 98,690,101.93 CNY, while cash outflow was 128,270,337.42 CNY, leading to a net cash outflow of 29,580,235.49 CNY[133]. Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 63,208[104]. - The largest shareholder, Hefei Construction Investment Holding (Group) Co., Ltd., holds 34.11% of the shares, totaling 101,941,200 shares[105]. - The second largest shareholder, China Life Insurance Co., Ltd., holds 2.59% of the shares, totaling 7,739,062 shares[105]. Accounting Policies - The financial statements prepared by the company comply with the requirements of the accounting standards, reflecting the financial position, operating results, and cash flows accurately[156]. - The company uses Renminbi as its functional currency for accounting purposes[158]. - The company recognizes goodwill when the acquisition cost exceeds the fair value of identifiable net assets acquired[162]. Asset Management - The company adopts the weighted average method for inventory valuation, ensuring accurate cost measurement during inventory issuance[187]. - Long-term equity investments are recorded at their initial investment cost, which varies based on the acquisition method, including cash payments and equity securities[191]. - The company assesses whether the recoverable amount of long-term equity investments is lower than their book value and recognizes impairment losses accordingly[197].

Financial Performance - The company's operating revenue for the first half of 2014 was ¥619,195,059.61, a decrease of 4.93% compared to ¥651,337,670.54 in the same period last year[21]. - The net profit attributable to shareholders of the listed company was ¥14,588,071.90, an increase of 8.63% from ¥13,428,647.07 year-on-year[21]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was -¥2,745,572.22, a decline of 120.51% compared to ¥13,388,147.37 in the previous year[21]. - The net cash flow from operating activities was ¥10,647,247.54, down 84.57% from ¥68,989,105.72 in the same period last year[21]. - Basic earnings per share for the reporting period were ¥0.0487, up 8.46% from ¥0.0449 in the same period last year[21]. - Diluted earnings per share were also ¥0.0487, reflecting the same increase of 8.46% compared to the previous year[21]. - The weighted average return on net assets was 1.12%, slightly up from 1.11% in the previous year[21]. Revenue Breakdown - Seed business revenue increased by 9.97%, while gross margin decreased by 21.38% due to prior inventory write-backs[32]. - Agricultural chemical sales revenue grew by 24.30%, with gross margin remaining stable compared to last year[32]. - Spice sales revenue declined by 43.53%, attributed to weak market demand and falling sales prices[32]. - Hotel services revenue decreased by 13.63%, impacted by construction-related disruptions[29]. Investment and Projects - The company committed a total investment of CNY 42,597 million, with a cumulative input of CNY 38,128.19 million, achieving an investment progress of 89.5%[48]. - The seed production and processing project reached an investment completion rate of 97.79%, with CNY 10,851.51 million invested out of CNY 13,200 million[48]. - The chemical intermediate project has not yet met the planned progress, with only CNY 9,799.88 million invested out of CNY 11,000 million, achieving 89.09%[48]. - The company plans to complete the rectification of the chemical intermediate project by the end of 2014 due to safety and environmental inspections[49]. - The new pesticide environmental protection formulation project has an investment completion rate of 84.02%, with CNY 7,142.12 million invested out of CNY 8,500 million[49]. Financial Position - The total assets at the end of the reporting period were ¥1,944,966,529.84, a decrease of 2.68% from ¥1,998,443,123.11 at the end of the previous year[21]. - The net assets attributable to shareholders of the listed company were ¥1,299,047,452.26, an increase of 0.72% from ¥1,289,771,488.54 at the end of the previous year[21]. - The total amount of external guarantees approved during the reporting period was 24,000 million yuan, with an actual occurrence of 24,000 million yuan[88]. - The actual guarantee balance at the end of the reporting period was 1,933.33 million yuan, which accounts for 1.49% of the company's net assets[89]. Shareholder Information - The total number of shares is 298,875,968, with 100% being unrestricted shares[102]. - The largest shareholder, Hefei Construction Investment Holding Group Co., Ltd., holds 34.11% of the shares, totaling 101,941,200 shares[105]. - The second largest shareholder, China Life Insurance Co., Ltd., holds 2.59% of the shares, totaling 7,739,062 shares[105]. Governance and Compliance - The company’s governance structure has been improved to comply with regulatory requirements, enhancing internal control systems[68]. - The company reported no major litigation or arbitration matters during the reporting period[69]. - The company has not engaged in any significant asset acquisitions during the reporting period[72]. - The semi-annual financial report has not been audited[94]. Cash Flow Analysis - The net cash flow from operating activities was 10,647,247.54 CNY, a decrease of 84.6% compared to 68,989,105.72 CNY in the previous period[132]. - Cash inflow from financing activities was 98,690,101.93 CNY, while cash outflow was 128,270,337.42 CNY[133]. - The ending cash and cash equivalents balance was 313,457,286.23 CNY, down from 352,508,259.85 CNY at the beginning of the period[133]. Future Outlook - The company plans to focus on increasing sales of high-value new seed varieties and expanding into new market areas in the second half of the year[30]. - The company aims to enhance its risk control and profitability in the spice segment by prioritizing high-margin products[30]. - The company plans to establish a seed reserve system with a total investment of CNY 80 million to ensure seed safety for farmers and operational continuity[55].

Financial Performance - Revenue for the first quarter was ¥253,071,491.69, a decrease of 25.65% compared to ¥340,376,016.41 in the same period last year[8] - Net profit attributable to shareholders was ¥14,101,919.20, down 3.88% from ¥14,671,612.89 year-on-year[8] - Net cash flow from operating activities improved by 47.85%, reaching -¥25,935,418.67 compared to -¥49,736,952.45 in the previous year[8] - Total assets at the end of the reporting period were ¥1,988,744,525.25, a slight decrease of 0.49% from ¥1,998,443,123.11 at the end of the previous year[8] - The company's net assets attributable to shareholders increased by 1.24% to ¥1,305,777,927.24 from ¥1,289,771,488.54[8] Accounts and Receivables - Accounts receivable decreased by 56.04%, primarily due to the maturity and acceptance of notes by subsidiaries[14] - Prepaid accounts increased by 62.99%, mainly due to unsettled raw material payments by subsidiaries[14] Construction and Projects - The company reported a significant increase of 511.93% in construction in progress, attributed to ongoing projects that have not yet been settled or accepted[14] Non-Recurring Items - Operating income from non-recurring items increased by 52.08%, mainly due to increased government subsidies received[14] Shareholder Information - The total number of shareholders at the end of the reporting period was 64,986[10] Asset Transfer Agreement - The company signed an asset transfer agreement with Beicheng Construction Investment on December 18, 2012, for the transfer of Fengle Ecological Park assets at an assessed value of CNY 140.5028 million[16] - As of the announcement date, the company has received a total of CNY 42.15 million from the asset transfer, with payments made on January 11, 2013 (CNY 3 million), July 15, 2013 (CNY 37 million), and December 31, 2013 (CNY 2.15 million)[16] - The company is actively urging the buyer to fulfill payment obligations and retains the right to pursue breach of contract claims if necessary[16] Board of Directors - The resignation of Mr. Xu Xiaoshu from the board of directors was effective on April 25, 2014, due to personal reasons, and will not affect the legal number of board members[18] Investments - The company holds 21,475,146 shares of Huishang Bank, representing 0.26% of the total shares, with a book value of CNY 59.77079 million[23] Corporate Governance - The company has made commitments to ensure independence in operations and financials between itself and its major shareholder, Beicheng Group, as part of its corporate governance[20] Future Expectations - There are no significant changes expected in net profit for the first half of 2014 compared to the same period last year[23] Risk Management - The company has not engaged in derivative investments during the reporting period, with no associated risks reported[25] Minority Shareholder Relations - The company continues to maintain compliance with its commitments made to minority shareholders[22] Investor Relations - The company has conducted investor communications and research activities, with the last recorded meeting on March 31, 2014[27]

Financial Performance - Revenue for the first quarter was CNY 253,071,491.69, a decrease of 25.65% compared to the same period last year[9] - Net profit attributable to shareholders was CNY 14,101,919.20, down 3.88% year-on-year[9] - Total operating revenue decreased to ¥253,071,491.69 from ¥340,376,016.41, representing a decline of approximately 25.6% year-over-year[44] - Total operating costs decreased to ¥239,864,563.93 from ¥325,625,988.57, a reduction of about 26.4% year-over-year[44] - Operating profit for the period was ¥13,206,927.76, down from ¥14,750,027.84, reflecting a decrease of approximately 10.5%[44] - Net profit for the period was ¥14,084,997.17, compared to ¥14,713,584.63 in the previous period, indicating a decline of about 4.3%[46] - Basic and diluted earnings per share remained stable at ¥0.05, unchanged from the previous period[46] Cash Flow - Net cash flow from operating activities improved by 47.85%, reaching CNY -25,935,418.67[9] - Cash flow from operating activities showed a net outflow of ¥25,935,418.67, an improvement from a net outflow of ¥49,736,952.45 in the previous period[52] - Cash inflow from operating activities totaled 98,803,189.25, up from 72,158,744.39, representing an increase of about 36.8%[56] - Cash outflow from operating activities increased to 140,773,249.44 from 126,375,280.22, which is an increase of approximately 11.1%[58] - The cash flow from investing activities was -5,875,696.79, worsening from -4,978,664.80, indicating a decline in investment cash flow by about 18%[58] - Cash flow from financing activities resulted in a net outflow of -3,450,000.00, compared to -2,873,250.00, indicating a decline of about 20%[58] Assets and Liabilities - Total assets at the end of the reporting period were CNY 1,988,744,525.25, a decrease of 0.49% from the previous year[9] - Total current assets decreased from ¥1,279,411,253.94 to ¥1,268,085,468.61, a decline of approximately 0.1%[31] - Total non-current assets slightly increased from ¥719,031,869.17 to ¥720,659,056.64, a growth of about 0.2%[33] - Current liabilities decreased from ¥664,526,225.06 to ¥637,943,096.24, a reduction of about 4%[35] - Total liabilities decreased from ¥699,183,997.81 to ¥673,495,883.28, a decline of approximately 3.7%[35] - Owner's equity increased from ¥1,299,259,125.30 to ¥1,315,248,641.97, representing a growth of about 1.2%[35] Shareholder Information - The number of shareholders at the end of the reporting period was 64,986[11] - The company holds 21,475,146 shares of Huishang Bank, representing 0.26% of the total shares, classified as available-for-sale financial assets[25] Government and Taxation - The company received government subsidies, leading to a 52.08% increase in non-operating income[15] - The company reported a significant increase of 495,181.05% in tax refunds received, attributed to increased export tax rebates[16] - Tax payments increased to 1,004,418.64 from 562,168.28, which is an increase of about 78.4%[58] Operational Changes - The company has made commitments to ensure independent operations and avoid conflicts of interest with its major shareholder, Beicheng Construction Investment[21] - The company has maintained its commitment to independent operations and compliance with legal regulations during the period of control by Beicheng Construction Investment[22] - There are no significant changes expected in net profit for the first half of 2014 compared to the same period last year[23] - The company has not engaged in any derivative investments during the reporting period, with a total investment amount of CNY 0[26] Asset Transfer Agreement - The company signed an asset transfer agreement with Beicheng Construction Investment on December 18, 2012, for the transfer of Fengle Ecological Park assets at an assessed value of CNY 140.5028 million[17] - As of the announcement date, the company has received a total of CNY 42.15 million from the asset transfer, with payments of CNY 3 million, CNY 37 million, and CNY 2.15 million received on January 11, July 15, and December 31, 2013, respectively[17] - The company is actively urging the buyer to fulfill payment obligations and retains the right to pursue breach of contract claims if necessary[17] - The company will continue to disclose relevant progress regarding the asset transfer and any potential risks associated with the remaining payments[17] Management Changes - The resignation of Mr. Xu Xiaoshu from the board of directors was effective on April 25, 2014, due to personal reasons, and does not affect the legal number of board members[19] Other Financial Metrics - Accounts receivable decreased by 56.04%, primarily due to the maturity and acceptance of notes by subsidiaries[15] - Prepaid accounts increased by 62.99%, mainly due to unsettled raw material payments[15] - Cash and cash equivalents decreased from ¥352,508,259.85 to ¥285,299,676.71, a decline of approximately 19%[31] - Inventory remained relatively stable, decreasing slightly from ¥595,773,645.05 to ¥595,705,511.86[31] - The company experienced a decrease in sales expenses to ¥20,989,676.99 from ¥26,098,209.28, a reduction of approximately 19.5% year-over-year[44] - The company reported an increase in other operating income to ¥893,719.03 from ¥587,660.50, a rise of about 52% year-over-year[46] - The ending cash and cash equivalents balance was ¥285,299,676.71, compared to ¥262,813,266.49 at the end of the previous period, showing an increase of approximately 8.5%[54] - The ending balance of cash and cash equivalents was 158,721,377.92, an increase from 137,879,062.87, showing a growth of approximately 15.1%[60]

Financial Performance - In 2013, the company's operating revenue was CNY 1,693,934,876.29, a decrease of 8.1% compared to CNY 1,843,203,032.44 in 2012[22] - The net profit attributable to shareholders was CNY 55,768,436.48, down 18.47% from CNY 68,403,211.06 in the previous year[22] - The net profit after deducting non-recurring gains and losses was CNY 10,827,771.50, reflecting a significant decline of 80.35% from CNY 55,090,515.61 in 2012[22] - The basic earnings per share decreased to CNY 0.1866, down 18.48% from CNY 0.2289 in the previous year[22] - The diluted earnings per share also fell to CNY 0.1866, reflecting the same percentage decrease as basic earnings[22] - The weighted average return on equity was 4.54%, down from 5.68% in 2012, indicating a decline in profitability[22] - Total sales revenue for the year was CNY 169,393,490, down 8.1% from CNY 184,320,300 in the previous year[36] - The company reported a significant decrease in revenue from the spice segment, down 19.47% year-on-year[52] - The company’s net profit for 2013 was 79,262,539.19 yuan after deducting the legal surplus reserve of 7,926,253.92 yuan[98] Cash Flow and Assets - The net cash flow from operating activities increased by 277.02% to CNY 201,139,041.76, compared to CNY 53,349,942.55 in 2012[22] - The total assets at the end of 2013 were CNY 1,998,443,123.11, an increase of 8.4% from CNY 1,843,621,202.39 at the end of 2012[22] - The net assets attributable to shareholders rose to CNY 1,289,771,488.54, marking a 7.12% increase from CNY 1,204,095,858.75 in 2012[22] - The cash and cash equivalents decreased by 80.56% to a net reduction of ¥8,205,941.98 compared to the previous year[50] - The total cash inflow from operating activities was ¥1,817,388,089.29, a decrease of 3.28% from ¥1,879,054,221.45 in 2012[49] Inventory and Production - The company’s seed sales volume increased by 11.92% to 508,445,556.23 units, while production volume decreased by 19.03% to 375,514,639.66 units[37] - The inventory of agricultural chemicals rose by 41.4% compared to the previous year, primarily due to increased raw material reserves[37] - The company reduced its inventory by 7.49% to ¥595.77 million, reflecting increased sales efforts[55] Research and Development - Research and development expenditure in 2013 was ¥56,965,000, accounting for 3.34% of operating revenue[50] - The company reported a total of 47 patent applications, with 14 patents granted, and a cumulative total of 19 patents obtained by the end of the reporting period[47] - The company successfully advanced 24 out of 70 crop variety trials to the next stage, with 14 varieties receiving national and provincial approvals[60] - The company applied for 22 invention patents during the year, with 11 patents granted, showcasing its commitment to innovation[60] Investment and Projects - The company plans to invest a total of 40 million yuan in the hybrid rice molecular breeding platform project, with a remaining balance of 39.9736 million yuan as of June 30, 2013[76] - The seed production and processing project has an investment commitment of CNY 13,200 million, with CNY 11,096.99 million invested, achieving 92.12% of the investment progress[74] - The chemical intermediate project has an investment commitment of CNY 11,000 million, with CNY 9,609.81 million invested, achieving 87.36% of the investment progress[75] - The environmental pesticide new formulation project has an investment commitment of CNY 8,500 million, with CNY 7,021.93 million invested, achieving 82.61% of the investment progress[75] Corporate Governance - The company has established a comprehensive evaluation and incentive system for senior management based on operational performance and industry standards[154] - The report indicates that the compensation for certain executives includes risk deposits from previous years, which were returned in 2013 after assessment[154] - The company has maintained a stable management team since 2011, with all current directors and supervisors in their positions for over a decade[150] - The company has not reported any changes in shareholding among the board members during the reporting period[150] Shareholder Information - The company plans to distribute a cash dividend of 0.30 yuan per 10 shares, totaling 8,966,279.04 yuan for the year 2013[95] - The cash dividend for 2013 represents 16.08% of the net profit attributable to shareholders, which was 55,768,436.48 yuan[97] - The total number of shareholders at the end of the reporting period was 66,295, an increase from 64,985 at the end of the previous reporting period[140] - The largest shareholder, Hefei Construction Investment Holding Group Co., Ltd., holds 34.11% of the shares, amounting to 101,941,200 shares[140] Compliance and Risk Management - The company has implemented a comprehensive internal control management system to ensure compliance with relevant laws and regulations[164] - The internal control audit report confirmed that the company maintained effective financial reporting internal controls as of December 31, 2013[190] - The company has not encountered any significant changes in the feasibility of the projects after the adjustments made[78] - The company has not experienced any insider trading issues or regulatory actions related to insider information during the reporting period[167] Market Strategy - The company plans to focus on seed industry development, particularly in rice and corn, while gradually exiting low-profit sectors[89] - The company aims to accelerate mergers and acquisitions in the seed industry, targeting research institutions and enterprises with talent and market presence[90] - The company anticipates challenges from high inventory levels in hybrid corn and rice seed markets, which may lead to market disruptions[87]