Financial Performance - Net profit attributable to shareholders decreased by 30.73% to CNY -24,996,603.79 for the current period[7] - Basic earnings per share decreased by 30.88% to CNY -0.0581[7] - The weighted average return on net assets was -3.47%, a decrease of 0.55% compared to the previous year[7] - Total operating revenue for the third quarter was CNY 67,865,767.55, a decrease of 7.5% compared to CNY 73,199,488.58 in the same period last year[50] - Net loss for the quarter was CNY 43,729,589.54, compared to a net loss of CNY 31,648,026.74 in the previous year, representing a 38.2% increase in losses[52] - The company's operating revenue for the current period is CNY 25,928,990.88, a decrease of 28.4% compared to CNY 36,252,741.72 in the previous period[55] - The net profit for the current period is a loss of CNY 8,852,288.26, compared to a loss of CNY 4,345,550.98 in the previous period, indicating a worsening performance[56] - The total comprehensive income for the current period is a loss of CNY 43,729,589.54, compared to a loss of CNY 31,648,026.74 in the previous period[56] Research and Development - Research and development expenses increased by 41.35% in the current period, contributing to the decline in net profit[7] - Research and development expenses for the first nine months reached CNY 29,896,758.08, a 55.22% increase year-on-year, driven by increased investment in rice and corn research[21] - Research and development expenses rose to CNY 10,271,501.12, up 41.3% from CNY 7,266,470.95 year-on-year[50] - Research and development expenses rose to ¥11,965,863.32, up from ¥9,298,176.56, indicating a focus on innovation[63] Cash Flow and Investments - Cash flow from operating activities increased by 34.60% year-on-year, primarily due to an increase in received seed payments[8] - Cash received from investment activities increased by 57.26% to CNY 448,200,000.00, reflecting increased purchases of bank wealth management products[24] - Cash flow from operating activities generated a net amount of ¥171,466,047.81, an increase from ¥127,387,011.62[65] - Cash flow from investing activities resulted in a net outflow of ¥173,650,461.41, worsening from a loss of ¥57,109,171.27[67] - Cash inflow from investment activities totaled $382,471,236.13, up from $231,680,171.92, indicating a growth of approximately 65%[70] - Cash outflow for investment activities surged to $482,940,426.43 from $230,414,416.42, reflecting an increase of about 109.5%[70] Assets and Liabilities - Total assets increased by 10.73% to CNY 1,757,915,587.16 compared to the end of the previous year[7] - The balance of advance receipts as of September 30 was CNY 604,056,800, an increase of 18.36% compared to the same date last year[8] - Other current assets rose by 88.04% to CNY 327,054,524.67, mainly from increased bank wealth management purchases[19] - Investment properties increased by 131.22% to CNY 55,966,284.98, attributed to the transfer of self-owned portions of agricultural product wholesale logistics market[19] - The company's current assets totaled RMB 1,311,635,766.31, up from RMB 1,179,601,130.95 at the start of the year[43] - The total liabilities decreased from RMB 1,179,601,130.95 to RMB 1,311,635,766.31, indicating a shift in the company's financial structure[44] Shareholder Information - The company had 7,423 common shareholders at the end of the reporting period[12] - The top shareholder, Beijing Dabeinong Technology Group Co., Ltd., held 14.17% of the shares[12] - The registered capital of the company increased from RMB 319.88 million to RMB 430.33 million following the completion of business registration changes[32] Legal and Regulatory Matters - The company is involved in ongoing litigation regarding overdue financial assistance and investment disputes, which may impact future financial performance[26][28] - The company provided a guarantee of RMB 23 million for its subsidiary Anhui Wan Nong Seed Industry Co., Ltd. to support its daily operations[32] - The Ministry of Agriculture and Rural Affairs announced the approval of 27 hybrid rice varieties and 2 hybrid corn varieties developed by the company and its subsidiaries[33] Dividend and Earnings - The company reported a cash dividend distribution of RMB 0.981528 per 10 shares, totaling RMB 42,238,115.10 for the year 2017, based on a total share capital of 430,330,071 shares as of July 4, 2018[36] - The total loss attributable to the parent company for the current period is CNY 40,450,919.04, compared to a loss of CNY 27,678,673.85 in the previous period[60] - The total comprehensive income attributable to minority shareholders for the current period is a loss of CNY 27,985,437.78, compared to a loss of CNY 10,211,831.42 in the previous period[61]

Financial Performance - Total revenue for the first half of 2018 was CNY 202,240,477.98, a decrease of 0.92% compared to CNY 204,113,457.33 in the same period last year[19]. - Net profit attributable to shareholders was a loss of CNY 15,454,315.25, compared to a loss of CNY 8,558,385.62 in the previous year[19]. - Net cash flow from operating activities was a negative CNY 137,876,022.22, worsening from a negative CNY 106,756,282.38 in the prior year[19]. - Basic and diluted earnings per share were both CNY -0.0366, compared to CNY -0.0203 in the same period last year[19]. - Total assets decreased by 9.22% to CNY 1,441,261,691.58 from CNY 1,587,560,586.50 at the end of the previous year[19]. - The total profit amounted to -23.97 million yuan, an increase in loss of 18.17 million yuan year-on-year[52]. - The net profit attributable to ordinary shareholders was -15.45 million yuan, an increase in loss of 6.90 million yuan compared to the previous year[52]. - Operating revenue for the reporting period was ¥202,240,477.98, a decrease of 0.92% compared to the previous year[64]. - Operating costs increased by 4.98% to ¥123,783,773.13, while sales expenses rose by 7.64% to ¥46,175,045.98[64]. Research and Development - The company maintains a high level of R&D investment, with R&D expenses accounting for 4.77% of revenue in 2017[27]. - Research and development investment for the reporting period was 24.76 million yuan, an increase of 6.18 million yuan, or 33.25% year-on-year[35]. - The company has developed a total of 87 rice varieties, including 33 national approved varieties[44]. - The company has received 7 invention patents and 50 plant variety rights, showcasing its strong research and innovation capabilities[44]. - The company’s core research personnel account for 22.70% of the total workforce, with 153 researchers[42]. - The company has increased its research collaboration with external institutions, enhancing its technology in transgenic corn, which is crucial for maintaining a competitive edge[53]. Market Strategy - The company has a dual sales strategy targeting both domestic and international markets, with domestic sales primarily through distributors[31]. - The company is actively expanding its market presence both domestically and internationally, leveraging the "Belt and Road" initiative[46]. - The company achieved a revenue of 553.87 million CNY from rice seed business in the reporting period, representing a year-on-year growth of 15.08%[57]. - The company exported 2,357 tons of hybrid rice seeds in the first half of 2018, marking a year-on-year increase of 65.21%[60]. - The company has established strategic partnerships with major agricultural firms to provide comprehensive agricultural services, enhancing its market presence[58]. Risk Management - The company faces various risks including market risk and new product development risk, which are detailed in the report[5]. - The company emphasizes the importance of understanding the difference between plans and commitments, urging investors to remain aware of investment risks[5]. - The company has a risk management strategy in place for production, sharing losses from natural disasters among the company, agents, and farmers[30]. - The company faces significant market risks due to increased competition and overproduction in the seed industry, prompting the need for precise marketing strategies and improved seed quality management[113]. Corporate Governance - The company plans not to distribute cash dividends or issue bonus shares[6]. - The half-year financial report has not been audited, which may affect the reliability of the financial data presented[126]. - The company has not engaged in derivative investments or entrusted loans during the reporting period[96][98]. - The company did not conduct any repurchase transactions among the top 10 common shareholders during the reporting period[185]. - The company has not reported any media scrutiny during the reporting period[136]. Subsidiaries and Investments - The company has established multiple subsidiaries, including Anhui Qianyin Agricultural Technology Co., Ltd. with an investment of CNY 510 million, achieving a completion rate of 100.00%[86]. - The company has invested RMB 15.3 million in Jiangxi Qianya Seed Industry Co., Ltd., acquiring a 51% stake[78]. - The total assets of the subsidiary Qianyin Technology reached approximately CNY 100.24 million, with a net profit of CNY 9.83 million[101]. - The subsidiary Wannong Seed Industry reported total assets of approximately CNY 89.64 million and a net profit of approximately CNY 475,370[101]. - The company has a total of 16 controlling subsidiaries and 6 affiliated companies, with 9 subsidiaries showing significant performance changes[102]. Legal Matters - The company is involved in significant litigation matters, although specific details on the amounts and outcomes are not disclosed[128]. - The company is pursuing legal action against Sichuan Longping for an outstanding payment of 333,819.40 yuan related to hybrid rice seed production[131]. - The company has initiated legal proceedings to recover the overdue financial assistance, which has been accepted by the court[171]. - The company is actively seeking to resolve disputes through legal channels to protect its financial interests[131]. Social Responsibility - The company maintained a commitment to social responsibility, engaging in poverty alleviation and charitable activities, which contributed to its positive brand image[62]. - The company donated 20,000 yuan to support poverty alleviation and education initiatives in Shijicun, focusing on assisting 10 impoverished students with scholarships and supplies[164]. - The company plans to provide technical support for vegetable planting in Shijicun and assist in the construction of high-standard farmland for melon and pumpkin seed production[166]. - The company is developing a precise poverty alleviation plan and will continue to promote the "Hundred Enterprises Help Hundred Villages" initiative[163].

Financial Performance - Total revenue for the first quarter reached CNY 126,497,757.97, an increase of 21.22% compared to CNY 104,357,592.54 in the same period last year[7] - Net profit attributable to shareholders was CNY 6,050,691.30, representing a significant increase of 125.27% from CNY 2,685,968.47 year-on-year[7] - The net profit after deducting non-recurring gains and losses was CNY 4,290,199.00, up 177.15% from CNY 1,547,972.05 in the previous year[7] - Basic earnings per share rose to CNY 0.0143, a 123.44% increase from CNY 0.0064 in the same quarter last year[7] - Operating profit reached 8.75 million yuan, up 60.58% compared to the same period last year[23] - Net profit attributable to shareholders was 6.05 million yuan, reflecting a significant growth of 125.27% year-on-year[23] - Net profit for Q1 2018 reached CNY 7,677,010.95, a significant increase of 63.1% from CNY 4,695,000.34 in Q1 2017[58] - Earnings per share (EPS) for Q1 2018 was CNY 0.0143, compared to CNY 0.0064 in the previous year, marking an increase of 123.4%[59] Assets and Liabilities - Total assets decreased by 11.36% to CNY 1,407,191,151.06 from CNY 1,587,560,586.50 at the end of the previous year[7] - Total current assets decreased from CNY 1,179,601,130.95 to CNY 1,002,543,712.40, a decline of approximately 15.03%[49] - The company's total assets decreased to CNY 857,049,146.87 from CNY 884,029,125.46, indicating a decline of 3.1%[58] - Total liabilities decreased from CNY 614,862,695.56 to CNY 427,534,275.63, a decline of approximately 30.38%[51] - The total liabilities decreased to CNY 204,700,547.55 from CNY 243,689,643.05, a reduction of 16.0%[58] Cash Flow - Cash and cash equivalents decreased by 39.76% compared to the end of the previous year, primarily due to increased seed payments[21] - Cash received from operating activities increased by 67.81% compared to the same period last year, mainly due to increased government subsidies and receivables[22] - Cash outflow from operating activities was CNY 266,407,399.89, up 30.5% from CNY 204,122,358.53 year-on-year[66] - Net cash flow from operating activities was CNY -142,246,253.48, worsening from CNY -93,930,444.63 in the prior period[66] - The ending cash and cash equivalents balance was CNY 239,258,064.31, down from CNY 333,800,319.90 in the previous period[67] Investments and Expenditures - Development expenditures increased by 31.94% compared to the end of the previous year, driven by ongoing research investments in rice and corn[21] - Cash paid for the acquisition of fixed assets increased by 331.47% compared to the same period last year, due to increased payments for variety rights and project costs[22] - The company has added 7 new plant variety rights, enhancing its core research and development capabilities[25] - The company has invested ¥5,500,000 in the corn/wheat seed industry facility project, with further investments planned[38] Market and Competition - The company faces market risks due to increased competition in the seed industry following the implementation of new seed laws and reforms[10] - The company is focusing on enhancing its marketing strategies to expand market share amid challenges in promoting new varieties[10] - The company increased its investment in overseas seed markets, particularly in South Asia and Southeast Asia, resulting in significant growth in seed exports during the reporting period[26] Corporate Developments - A new wholly-owned subsidiary, Guangdong Qianyuan Seed Technology Co., Ltd., was established in the Nansha Free Trade Zone to expand the seed market in Guangzhou and South China[26] - The company formed a comprehensive cooperation relationship with Sinochem Modern Agriculture Co., Ltd. to enhance market development and optimize product structure, aiming to increase market share and brand influence[27] - The company is in the process of acquiring 49% equity in its subsidiary, Qianyuan Agricultural Technology Co., Ltd., to achieve 100% ownership[32] Financial Obligations and Legal Matters - The company provided financial support of RMB 20 million to its subsidiary, which has since become overdue, with a remaining balance of RMB 3.3942 million in principal and interest unpaid[28] - The company’s bank account was partially frozen by a court for RMB 12.24 million, with RMB 4.0292 million actually frozen as of April 18, 2018[30] Shareholder Returns - The company plans to distribute a cash dividend of RMB 1 per 10 shares, totaling RMB 42,238,115.10, based on a total share capital of 422,381,151 shares as of December 31, 2017[42]

Financial Performance - The company's operating revenue for 2017 was CNY 947,465,898.19, representing a 25.12% increase compared to CNY 757,218,222.05 in 2016[19] - The net profit attributable to shareholders for 2017 was CNY 62,461,913.52, a significant increase of 103.61% from CNY 30,677,152.44 in 2016[19] - The net profit after deducting non-recurring gains and losses was CNY 52,857,333.72, up 139.93% from CNY 22,030,669.33 in 2016[19] - The basic earnings per share for 2017 was CNY 0.15, an increase of 114.29% compared to CNY 0.07 in 2016[19] - The total profit for the year was 101.99 million yuan, up by 47.58 million yuan, or 87.46% compared to the previous year[51] - The net profit attributable to shareholders reached 62.46 million yuan, a significant increase of 103.61% compared to the previous year, exceeding the annual profit target[35] Assets and Liabilities - The total assets at the end of 2017 amounted to CNY 1,587,560,586.50, reflecting a 10.98% increase from CNY 1,430,458,597.47 at the end of 2016[19] - The net assets attributable to shareholders at the end of 2017 were CNY 736,403,907.30, an increase of 11.59% from CNY 659,916,244.54 at the end of 2016[19] - The company reported a significant increase in other current assets, which reached ¥173,930,491.73, representing 10.96% of total assets, up by 3.00% due to increased bank wealth management[93] - Payables increased to ¥272,731,886.55, accounting for 17.18% of total assets, a rise of 3.83% attributed to business expansion and increased payable seed funds[93] Cash Flow - The net cash flow from operating activities for 2017 was CNY 135,745,441.63, a decrease of 25.11% from CNY 181,248,246.77 in 2016[19] - Operating cash inflow totaled CNY 939,096,283.65, a 12.40% increase from the previous year[87] - Investment cash inflow surged by 119.28% to CNY 413,129,592.70, primarily due to increased purchases of bank financial products[87] - The company reported a significant increase of 340.82% in cash outflow from financing activities, totaling CNY 131,925,629.45, mainly due to dividend distribution[88] Research and Development - Research and development expenses accounted for 4.77% of the company's revenue in 2017, up from 4.06% in 2016[28] - The company has a strong focus on independent research and development, collaborating with domestic research institutions and universities[28] - The company has increased its research and development capabilities, with 153 research personnel accounting for 24.21% of the total workforce, enhancing its competitive edge in seed innovation[45] - The company has established research and development centers for hybrid rice varieties in Southeast Asia, Africa, and South America to enhance international competitiveness[62] Market and Products - The company’s main products include hybrid rice, corn, wheat, and various vegetable seeds, primarily sold in East, Central, North, Northeast, Southwest, and Northwest China, as well as Southeast Asia, South Asia, and Africa[27] - The company achieved significant results in the breeding and approval of new hybrid rice and corn varieties, with 17 rice varieties and 7 corn varieties passing national approval[54] - Revenue from rice products reached ¥556.87 million, accounting for 58.77% of total revenue, with a year-on-year growth of 31.33%[72] - The company has developed a diverse portfolio of seed varieties, including 75 rice varieties (33 nationally approved), 32 corn varieties (2 nationally approved), and 6 cotton varieties (2 nationally approved), showcasing its research achievements[45] Marketing and Sales - The company has established a new marketing model focusing on direct supply to large agricultural clients, enhancing service-oriented marketing through comprehensive support[33] - The company’s marketing strategies included early planning and promotional events, which effectively stimulated sales of core products[37] - The company organized various demonstration activities to enhance product visibility and sales, particularly for the new variety Qianyou Huazhan[122] - The company has focused on strict market price control and brand promotion, effectively increasing dealer enthusiasm and market competitiveness[119] Risks and Challenges - The company faces various risks including market risk and new product promotion risk, which are detailed in the report[4] - The company noted that the production of new seed varieties in Guangxi Quanhong was insufficient, impacting operational plans and revenue[105] - The company is addressing risks associated with new variety promotions by providing technical guidance and pest control services[133] Corporate Governance and Social Responsibility - The company has not experienced any non-operating fund occupation by controlling shareholders or related parties during the reporting period[150] - The company has committed to fulfilling its social responsibilities and benefiting farmers while maximizing economic efficiency[188] - The company donated a total of 2.53 million RMB to the Zhang Haiyin Seed Industry Foundation, including 2 million RMB in 2017 and 530,000 RMB in physical donations[170] - The company plans to donate 300,000 yuan to the Zhang Haiyin Seed Industry Foundation in 2018 to further its social responsibility initiatives[193] Employee Engagement and Incentives - The company implemented a three-year equity incentive plan in 2014, significantly boosting employee motivation and aligning compensation with company performance[197] - The company organized various employee activities, including a four-day trip to Zhangjiajie, sports competitions, and annual meetings, enhancing employee engagement and cohesion[196] - The company emphasizes employee career development through a combination of internal and external training, enhancing skills and knowledge across various areas[197] Future Outlook - The company plans to achieve an operating revenue of CNY 1.2 billion and a net profit of CNY 100 million in 2018, although these targets are subject to market conditions[129] - The company aims to expand its international business, particularly in Southeast Asia and South Asia, by establishing overseas seed production bases[130] - The company is focusing on developing new crop varieties suitable for both southern and northern China, enhancing regional adaptability[85]

Financial Performance - Operating revenue decreased by 22.63% to CNY 73,199,488.58 year-on-year[7] - Net profit attributable to shareholders was a loss of CNY 19,120,288.23, a decrease of 696.81% compared to the same period last year[7] - The net profit attributable to shareholders after deducting non-recurring gains and losses was a loss of CNY 20,848,558.09, a decrease of 6,932.71% year-on-year[7] - The weighted average return on net assets was -2.89%, a decrease of 2.50% compared to the previous year[7] - Net loss for the period was CNY 31,648,026.74, significantly higher than the net loss of CNY 5,716,482.53 in the previous year[55] - The net profit for the current period was a loss of CNY 37,890,505.27, compared to a loss of CNY 12,825,475.74 in the previous period, indicating a significant decline in profitability[63] - The company reported a comprehensive income total of -37,846,036.25, compared to -12,804,257.73 in the previous period, reflecting a significant decline[64] Assets and Liabilities - Total assets increased by 8.88% to CNY 1,557,425,270.07 compared to the end of the previous year[7] - The company's total assets increased to CNY 854,470,903.90 from CNY 730,122,556.12 at the beginning of the period[52] - Current assets rose to CNY 483,112,235.07, up from CNY 366,149,308.05 at the start of the period[50] - The total liabilities increased to CNY 264,664,820.21 from CNY 172,816,150.63[52] - Total liabilities decreased by 50,000,000.00 yuan, a reduction of 100%, due to the repayment of a special fund by a subsidiary[21] - The total liabilities of the company were reported at RMB 732,876,844.85, compared to RMB 555,505,733.76 at the beginning of the year, showing an increase of approximately 31.9%[48] Cash Flow - Cash flow from operating activities for the year-to-date was CNY 127,387,011.62, an increase of 10.73%[7] - Operating cash flow for the period was CNY 127,387,011.62, an increase of 10.3% compared to CNY 115,040,573.88 in the previous period[70] - Total cash inflow from operating activities was CNY 619,674,455.44, up from CNY 479,223,402.74, representing a growth of 29.3%[70] - Cash outflow from operating activities totaled CNY 492,287,443.82, compared to CNY 364,182,828.86, indicating an increase of 35.2%[70] - Cash inflow from investment activities reached CNY 287,722,433.76, significantly higher than CNY 74,941,552.06, marking an increase of 284.5%[71] - Cash outflow from investment activities was CNY 344,831,605.03, compared to CNY 125,670,897.11, reflecting an increase of 174.5%[71] - Net cash flow from financing activities was CNY -52,573,130.39, a decline from CNY 68,356,428.98 in the previous period[71] Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 10,922[11] - As of the report date, the combined shareholding of Da Bei Nong and its affiliate in the company reached 12.40%, totaling 52,362,771 shares[30] - The company reported a total cash dividend distribution of RMB 31,982,000, equivalent to RMB 1 per 10 shares, based on a total share capital of 319,820,000 shares as of December 31, 2016[38] - The profit distribution plan for 2016 was adjusted to a total share capital of 325,762,000 shares, with a cash dividend of RMB 0.981759 per 10 shares and a capital reserve increase of 2.945279 shares for every 10 shares held[39] Operational Challenges - The company faced a decline in sales of late rice varieties due to weather impacts and changes in planting structure[7] - Increased marketing expenses were incurred to promote market expansion, leading to higher upfront promotional costs[7] - Sales expenses increased to CNY 69,909,456.06 from CNY 56,325,984.56, an increase of 24.2%[61] - Management expenses rose to CNY 75,860,093.68 from CNY 69,645,576.92, an increase of 8.5%[61] Investments and Collaborations - Research and development investment in rice and corn varieties has been increased[7] - The company and Beijing Jinse Nonghua Seed Technology Co., Ltd. jointly established Anhui QuanHua Seed Technology Co., Ltd. with a registered capital of RMB 30 million, where the company holds a 51% stake[32] - The company’s subsidiary, Zhonghe Hengfeng, received a cash investment of RMB 50 million from Chuzhou Urban Development Company for the China Supply and Marketing - Chuzhou Agricultural Products Wholesale Market project[33] - The company provided a guarantee of RMB 23 million for its subsidiary Anhui Wan Agricultural Technology Co., Ltd. for a bank loan, with a guarantee period of one year[35] Legal Matters - The company filed a civil lawsuit against Chongqing Zhongxin Rongze Investment Center and its affiliates for illegal shareholding actions, with the case transferred to the Anhui High Court[26] - As of the report date, the company had provided financial assistance of RMB 20 million to its subsidiary, which has since been overdue, with total repayments of principal and interest amounting to RMB 20 million[29]

Financial Performance - Total operating revenue for the first half of 2017 was ¥204,113,457.33, representing a 12.12% increase compared to ¥182,055,655.11 in the same period last year[19]. - Net profit attributable to shareholders was -¥8,558,385.62, a decrease of 33.83% from -¥6,394,763.61 in the previous year[19]. - Basic earnings per share decreased by 50.00% to -¥0.03 from -¥0.02 in the previous year[19]. - The company reported a total comprehensive loss of CNY 6,198,009.51, improving from a loss of CNY 7,092,638.26 in the same period last year[186]. - The total profit was -5.80 million yuan, a decrease of 11.94% year-on-year[49]. - The company achieved a revenue growth of 12.12% year-on-year during the reporting period[33]. - The net profit attributable to shareholders decreased by 33.42% year-on-year, primarily due to adverse weather conditions affecting wheat sales and increased R&D investment in rice and corn varieties[33]. Cash Flow and Assets - Net cash flow from operating activities was -¥106,756,282.38, a significant decline of 987.10% compared to -¥9,820,280.76 in the same period last year[19]. - The company's total assets decreased by 6.62% to ¥1,349,000,000.00, primarily due to payments for rice and corn seed production[67]. - Cash and cash equivalents decreased by 27.17% to ¥302,134,782.48, mainly due to increased payments for seed production[67]. - The company's total liabilities decreased by 50.45% to ¥94,653,959.35, reflecting a reduction in accounts payable[67]. - The company's total liabilities decreased to CNY 152,764,949.61 from CNY 172,816,150.63 year-on-year[185]. - The company's equity increased to CNY 883,629,594.19 from CNY 874,952,863.71, marking an increase of about 1.9%[179]. Research and Development - The company maintains a high level of R&D investment, with the ratio of R&D expenditure to revenue being 4.06% in 2016[26]. - The company has established a partnership with the Beijing Academy of Agricultural and Forestry Sciences to enhance corn variety breeding[26]. - The company has established a national rice commercialization molecular breeding technology innovation alliance to strengthen its R&D capabilities[26]. - Research and development investment increased by 51.25% to ¥18,584,595.46, primarily due to increased funding for rice and corn research[61]. - The company has a research team of 115 members, accounting for 21.02% of its total workforce, with many holding significant academic and practical experience in the seed industry[40]. Market Strategy and Expansion - The company is adapting its sales strategy to include direct supply channels for large agricultural operators, enhancing service-oriented marketing[31]. - The company is actively expanding its market presence both domestically and internationally, leveraging the "Belt and Road" initiative to enhance its competitive edge[43]. - The company is expanding its overseas business, focusing on markets in Pakistan, Indonesia, Bangladesh, Vietnam, and Angola, to enhance its international competitiveness[56]. - The company is actively pursuing mergers and acquisitions to enhance its corn seed industry strategy, with a restructuring plan involving Sichuan Tonglu Agricultural Technology Co., Ltd. underway[57]. - The company is actively responding to national strategies such as the "Belt and Road" initiative and the seed industry "going out" strategy to accelerate business development[94]. Risk Management - The company faces various risks including market risk, new variety promotion risk, and mergers and acquisitions risk[5]. - The company emphasizes the importance of production management to mitigate risks related to seed quality and yield due to climate sensitivity[106]. - The company has established a mechanism for selecting and researching potential acquisition targets to minimize risks associated with mergers and acquisitions[107]. Corporate Governance and Compliance - The company did not conduct an audit for the semi-annual financial report[115]. - There were no significant litigation or arbitration matters reported during the period[118]. - The company has not faced any penalties or rectification issues during the reporting period[120]. - The company has fulfilled its commitments in a timely manner[118]. - The company has not reported any overdue principal or accumulated income during the reporting period[86]. Employee and Shareholder Information - The company has implemented a stock option incentive plan to align employee interests with corporate goals, enhancing motivation and performance across its subsidiaries[45]. - The total number of shareholders at the end of the reporting period was 12,338[162]. - The largest shareholder, Zhang Qin, holds 10.73% of shares, totaling 34,969,924 shares, with 8,742,481 shares pledged[162]. - The total number of stock options in the company's stock option incentive plan was adjusted from 9.05 million to 17.3 million[123]. Future Outlook - The company plans to invest a total of 10 million yuan over the next five years to enhance corn breeding capabilities in collaboration with the Beijing Academy of Agriculture and Forestry Sciences[50]. - Future outlook includes potential market expansion and new product development initiatives[200].

[Important Notice](index=2&type=section&id=Item%201.%20Important%20Notice) The company's board of directors, supervisory board, and senior management guarantee the truthfulness, accuracy, and completeness of this quarterly report [Important Notice](index=2&type=section&id=Important%20Notice) The company's board, supervisory board, and senior management guarantee the quarterly report's truthfulness, accuracy, and completeness, with key officers ensuring financial statement integrity - The company's board of directors, supervisory board, and senior management guarantee the quarterly report's content is **true, accurate, and complete**, free from false records, misleading statements, or major omissions, and assume individual and joint legal responsibility[3](index=3&type=chunk) - Company head Zhang Qin, chief accountant Wang Jin, and head of accounting department Zhao Suzhen declare the financial statements in the quarterly report are **true, accurate, and complete**[4](index=4&type=chunk) [Company Profile](index=3&type=section&id=Item%202.%20Company%20Profile) This section provides an overview of the company's key financial performance, significant risks, and shareholder information [Key Accounting Data and Financial Indicators](index=3&type=section&id=I.%20Key%20Accounting%20Data%20and%20Financial%20Indicators) During the reporting period, the company's total operating revenue increased by **10.10%**, net profit attributable to shareholders grew by **43.78%**, and non-recurring net profit surged by **183.17%**, while operating cash flow significantly decreased Key Accounting Data and Financial Indicators for the Current Period | Indicator | Current Period (yuan) | Prior Year Period (yuan) | Change from Prior Year Period (%) | | :--- | :--- | :--- | :--- | | Total Operating Revenue | 104,357,592.54 | 94,781,530.41 | 10.10 | | Net Profit Attributable to Shareholders of Listed Company | 2,685,968.47 | 1,868,164.27 | 43.78 | | Net Profit Attributable to Shareholders of Listed Company (Excluding Non-Recurring Gains and Losses) | 1,547,972.05 | 546,664.36 | 183.17 | | Net Cash Flow from Operating Activities | -93,930,444.63 | -2,434,395.87 | 3,758.47 | | Basic Earnings Per Share (yuan/share) | 0.0084 | 0.0058 | 44.83 | | Diluted Earnings Per Share (yuan/share) | 0.0084 | 0.0058 | 44.83 | | Weighted Average Return on Net Assets | 0.41% | 0.31% | 0.10 | | **Period-End Indicators** | **Current Period-End (yuan)** | **Prior Year-End (yuan)** | **Change from Prior Year-End (%)** | | Total Assets | 1,326,995,436.10 | 1,430,458,597.47 | -7.23 | | Net Assets Attributable to Shareholders of Listed Company | 664,879,656.00 | 659,916,244.54 | 0.75 | Non-Recurring Gains and Losses and Amounts | Item | Amount from Year-Beginning to Period-End (yuan) | | :--- | :--- | | Disposal gains and losses of non-current assets | -13,284.06 | | Government grants recognized in current profit or loss | 1,798,068.48 | | Gains and losses from changes in fair value and investment income from disposal of tradable financial assets | 521,845.21 | | Other non-operating income and expenses | -678,952.92 | | Less: Income tax impact | 168,542.94 | | Impact on minority interests (after tax) | 321,137.35 | | **Total** | **1,137,996.42** | [Significant Risk Factors](index=4&type=section&id=II.%20Significant%20Risk%20Factors) The company's significant risks during the reporting period, including new variety market promotion, corn industry policy adjustments, seed production, M&A, and group management risks, remain consistent with those disclosed in the 2016 annual report, with no major changes or new adverse risks identified - Risks disclosed in the company's 2016 annual report, such as **new variety market promotion risk, corn industry policy adjustment risk, seed production risk, M&A risk, and group company management risk**, persist in the current reporting period without significant changes[10](index=10&type=chunk) - No new significant risks that could adversely affect operations in the next reporting period emerged during the reporting period[10](index=10&type=chunk) [Total Shareholders and Top Ten Shareholders at Period End](index=4&type=section&id=III.%20Total%20Shareholders%20and%20Top%20Ten%20Shareholders%20at%20Period%20End) As of the reporting period end, the company had **12,401** common shareholders, with top individual shareholders Zhang Qin and Jia Guilan holding significant pledged stakes, while key institutional shareholders are related parties, and restricted shares for executives saw minor changes - The total number of common shareholders at the end of the reporting period was **12,401**[12](index=12&type=chunk) Top 10 Shareholders' Shareholding Status | Shareholder Name | Shareholder Nature | Shareholding Ratio (%) | Number of Shares Held (shares) | Number of Restricted Shares Held (shares) | Pledge or Freeze Status (Share Status/Quantity) | | :--- | :--- | :--- | :--- | :--- | :--- | | Zhang Qin | Domestic Natural Person | 10.93 | 34,969,924 | 26,227,443 | Pledged/34,969,924 | | Jia Guilan | Domestic Natural Person | 9.59 | 30,669,500 | 23,002,125 | Pledged/17,900,000 | | Chongqing Zhongxin Rongze Investment Center (Limited Partnership) | Other | 7.83 | 25,028,878 | 0 | - | | Chongqing Zhongxin Rongxin Investment Center (Limited Partnership) | Other | 7.65 | 24,470,564 | 0 | - | | Beijing Zhinong Investment Co., Ltd. | Domestic Non-State-Owned Legal Person | 3.71 | 11,879,865 | 0 | - | | Gao Jian | Domestic Natural Person | 3.58 | 11,462,400 | 0 | Pledged/11,462,400 | | Chen Jinjie | Domestic Natural Person | 2.12 | 6,770,000 | 5,077,500 | - | | Zhang Conghe | Domestic Natural Person | 1.58 | 5,065,724 | 3,799,293 | - | | Xiamen ITG Asset Management Co., Ltd. - ITG Hengsheng No. 3 Asset Management Plan | Other | 1.21 | 3,882,033 | 0 | - | | Rongtong Capital - China Merchants Bank Huarun Trust - Huarun Trust · Runjin No. 76 Collective Fund Trust Plan | Other | 1.14 | 3,630,900 | 0 | - | Changes in Restricted Shares | Shareholder Name | Restricted Shares at Period Beginning (shares) | Unrestricted Shares in Current Period (shares) | Increased Restricted Shares in Current Period (shares) | Restricted Shares at Period End (shares) | Reason for Restriction | | :--- | :--- | :--- | :--- | :--- | :--- | | Zhang Qin | 26,227,443 | 0 | 0 | 26,227,443 | Executive Lock-up Shares | | Jia Guilan | 23,002,125 | 0 | 0 | 23,002,125 | Executive Lock-up Shares | | Chen Jinjie | 6,270,000 | 1,192,500 | 0 | 5,077,500 | Executive Lock-up Shares | | Zhang Conghe | 4,024,293 | 225,000 | 0 | 3,799,293 | Executive Lock-up Shares | | Wang Jin | 686,250 | 0 | 0 | 686,250 | Executive Lock-up Shares | | Ye Hong | 75,000 | 0 | 0 | 75,000 | Executive Lock-up Shares | | Zhu Quangui | 54,000 | 0 | 0 | 54,000 | Executive Lock-up Shares | | **Total** | **60,339,111** | **1,417,500** | **0** | **58,921,611** | -- | [Significant Matters](index=7&type=section&id=Item%203.%20Significant%20Matters) This section details major financial data changes, business performance, key project progress, and unfulfilled commitments [Significant Changes and Reasons in Key Financial Data and Indicators](index=7&type=section&id=I.%20Significant%20Changes%20and%20Reasons%20in%20Key%20Financial%20Data%20and%20Indicators) During the reporting period, the company experienced significant changes across its balance sheet, income statement, and cash flow statement, driven by increased prepayments, reduced other current assets, decreased payables, and substantial shifts in taxes, financial expenses, asset impairment, and investment income - Balance Sheet Item Changes:[18](index=18&type=chunk) Major Balance Sheet Item Changes | Item | Change Amount (yuan) | Change Ratio (%) | Primary Reason | | :--- | :--- | :--- | :--- | | Notes Receivable | -600,000.00 | -66.67 | Acceptance bills matured and collected | | Prepayments | +39,113,595.94 | +144.48 | Increase in seed payments | | Other Current Assets | -44,568,151.35 | -39.13 | Maturity and collection of bank wealth management products | | Construction in Progress | -1,248,535.00 | -51.44 | Hubei Jingzhou warehouse project transferred to fixed assets | | Development Expenditures | +3,354,149.04 | +43.62 | Increased R&D investment in rice and corn | | Accounts Payable | -86,921,486.97 | -45.50 | Increase in seed payments | | Employee Remuneration Payable | -19,149,328.34 | -56.88 | Year-end bonuses accrued last period paid in current period | | Taxes Payable | -2,348,511.29 | -82.79 | Taxes accrued last period paid in current period | - Income Statement Item Changes:[19](index=19&type=chunk) Major Income Statement Item Changes | Item | Change Amount (yuan) | Change Ratio (%) | Primary Reason | | :--- | :--- | :--- | :--- | | Taxes and Surcharges | +200,049.67 | +251.59 | Change in accounting standards for VAT reform | | Financial Expenses | +419,786.35 | +220.29 | Exchange losses from export collections | | Asset Impairment Losses | +378,244.73 | +2,010.63 | Increase in provision for bad debts | | Investment Income | +483,495.30 | +1,236.73 | Increase in bank wealth management income | | Non-Operating Income | -882,726.88 | -32.93 | Decrease in government grants | | Non-Operating Expenses | +417,020.73 | +151.12 | Reversal of performance commitment by a controlled subsidiary | | Income Tax Expense | -257,245.28 | -77.35 | Decrease in accrued income tax expense | - Cash Flow Statement Item Changes:[20](index=20&type=chunk)[21](index=21&type=chunk) Major Cash Flow Statement Item Changes | Item | Change Amount (yuan) | Change Ratio (%) | Primary Reason | | :--- | :--- | :--- | :--- | | Tax refunds received | -315,551.88 | -100 | Export tax rebates in prior year, none in current period | | Cash received relating to other operating activities | -11,191,105.72 | -73.36 | Decrease in government grants | | Cash paid for goods and services | +54,149,369.28 | +62.36 | Increase in seed payments | | Cash paid to and on behalf of employees | +14,151,863.33 | +82.70 | Payment of year-end bonuses accrued last period | | Cash received from investment income | +404,331.51 | +344.07 | Increase in bank wealth management income | | Net cash received from disposal of subsidiaries and other business units | -4,000,000.00 | -100 | Equity transfer proceeds received in prior year, none in current period | | Cash received relating to other investment activities | +59,000,000.00 | +295.00 | Maturity and collection of bank wealth management products | | Cash paid for acquisition of fixed assets, intangible assets, and other long-term assets | -8,874,679.00 | -74.16 | Decrease in fixed asset investment | | Cash paid relating to other investment activities | -17,000,000.00 | -33.33 | Decrease in bank wealth management products | | Cash received from investments | +490,000.00 | - | Controlled subsidiary received capital from minority shareholders | | Cash received relating to other financing activities | -7,350,262.67 | -93.24 | Decrease in guarantee deposits received by controlled subsidiary | | Cash paid for distribution of dividends, profits, or interest | +17,151,784.37 | +1,015.35 | Controlled subsidiary paid dividends to minority shareholders | | Cash paid relating to other financing activities | +45,705.92 | - | Controlled subsidiary paid guarantee deposits | [Business Review and Outlook](index=8&type=section&id=II.%20Business%20Review%20and%20Outlook) During the reporting period, the company achieved strong performance with **10.10%** revenue growth and **43.78%** net profit increase, driven by enhanced marketing and variety promotion, while continuing R&D investments and strategic collaborations, with no significant changes to previously identified major risks - Specific Factors Driving Changes in Business Revenue During the Reporting Period:[22](index=22&type=chunk) - The company achieved total operating revenue of **104.36 million yuan**, a **10.10%** increase year-on-year, and net profit attributable to shareholders of **2.69 million yuan**, a **43.78%** increase year-on-year[22](index=22&type=chunk) - The primary drivers for business revenue growth were the company's increased market efforts and the successful promotion of **rice and corn varieties**[22](index=22&type=chunk) - Progress and Impact of Key R&D Projects:[23](index=23&type=chunk) - The company effectively advanced **six key scientific research projects**, including the National Rice Commercial Molecular Breeding Technology Innovation Alliance and research on transgenic insect-resistant corn industrialization[23](index=23&type=chunk) - Changes in the Company's Top 5 Suppliers and Customers During the Reporting Period:[23](index=23&type=chunk)[24](index=24&type=chunk) Total Procurement Amount from Top Five Suppliers | Year | Total Procurement Amount (yuan) | Percentage of Q1 Total Procurement (%) | | :--- | :--- | :--- | | Jan-Mar 2017 | 11,675,086.90 | 37.36 | | Jan-Mar 2016 | 6,286,672.40 | 17.93 | Total Sales Amount to Top Five Customers | Year | Total Sales Amount (yuan) | Percentage of Q1 Total Sales (%) | | :--- | :--- | :--- | | Jan-Mar 2017 | 30,409,088.56 | 29.14 | | Jan-Mar 2016 | 24,053,176.97 | 25.38 | - Execution of Annual Operating Plan:[24](index=24&type=chunk)[25](index=25&type=chunk) - The company is increasing R&D investment and accelerating new variety selection and approval, including a **corn breeding collaboration** with Beijing Academy of Agriculture and Forestry Sciences, to achieve its 2017 targets of **1 billion yuan** in operating revenue and **60 million yuan** in net profit attributable to shareholders[24](index=24&type=chunk) - The company strengthened operational management, optimized marketing task allocation and incentive measures, and vigorously conducted marketing activities to **expand market share and influence**[25](index=25&type=chunk) - The company actively hosted agricultural vocational training programs, acquiring qualifications for the first batch of agricultural professional managers in Anhui Province, thereby **accumulating customer and talent resources** for future development[25](index=25&type=chunk) - Significant Risk Factors Adversely Affecting the Company's Future Operations:[25](index=25&type=chunk) - The company's risks, including **new variety market promotion, corn industry policy adjustments, seed production, M&A, and group management**, remain consistent with those disclosed in the 2016 annual report, with no significant changes[25](index=25&type=chunk) [Progress and Solutions for Significant Matters](index=10&type=section&id=III.%20Progress%20and%20Solutions%20for%20Significant%20Matters) The company revised the performance commitment for its subsidiary Anhui Wannong Seed Industry Co., Ltd., extending the period to end-2016 and adjusting the target to **48.95 million yuan**, while also committing **10 million yuan** over five years to a corn breeding collaboration with Beijing Academy of Agriculture and Forestry Sciences - Revision of Profit Distribution Plan for Controlled Subsidiary Wannong Seed Industry's Performance Commitment Period:[26](index=26&type=chunk)[27](index=27&type=chunk) - Wannong Seed Industry's performance commitment period was extended to December 31, 2016, with the total committed target adjusted from **52 million yuan** to **48.95 million yuan**[26](index=26&type=chunk) - The company has received **14.935 million yuan** in dividends from Wannong Seed Industry for this period, with cumulative dividends totaling **23.787 million yuan**[27](index=27&type=chunk) - Initiating Corn Cooperative Breeding:[27](index=27&type=chunk) - Over the next five years (2017-2021), the company will invest **2 million yuan annually**, totaling **10 million yuan**, in a corn cooperative breeding program with the Beijing Academy of Agriculture and Forestry Sciences to accelerate the development of superior corn varieties[27](index=27&type=chunk) [Overdue Unfulfilled Commitments](index=11&type=section&id=IV.%20Overdue%20Unfulfilled%20Commitments%20by%20Actual%20Controller,%20Shareholders,%20Related%20Parties,%20Acquirers,%20and%20the%20Company) During the reporting period, Chongqing Zhongxin Rongze Investment Center (Limited Partnership) had an equity reduction commitment not to transfer shares for 12 months from the transfer date, which has been partially fulfilled Overdue Unfulfilled Commitments | Commitment Source | Promisor | Commitment Type | Commitment Content | Commitment Date | Commitment Period | Fulfillment Status | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Commitments made in acquisition report or equity change report | Chongqing Zhongxin Rongze Investment Center (Limited Partnership) | Share Reduction Commitment | Not to directly or indirectly transfer shares in any form for 12 months from the date of share transfer to its name (excluding subsequent arrangements under strategic cooperation agreement) | July 25, 2014 | Within 12 months from the date of share transfer to its name | Partially fulfilled | [Use of Raised Funds](index=12&type=section&id=V.%20Comparison%20Table%20of%20Raised%20Funds%20Usage) The company's total raised funds were **469.92 million yuan**, with **439.12 million yuan** cumulatively invested and no new investments this quarter, achieving **100%** completion for most projects, while some benefit forecasts are difficult to assess due to scope changes Overview of Raised Funds Usage | Indicator | Amount (yuan) | | :--- | :--- | | Total Raised Funds | 469,920,000 | | Total Raised Funds Invested in Current Quarter | 0 | | Total Raised Funds with Changed Use (Cumulative) | 0 | | Percentage of Total Raised Funds with Changed Use (Cumulative) | 0.00% | | Total Raised Funds Invested (Cumulative) | 439,122,700 | - Most committed investment projects and over-raised fund projects have completed investment, with an investment progress of **100%**[32](index=32&type=chunk)[33](index=33&type=chunk)[34](index=34&type=chunk) - The benefit forecast for the 'High-Yield, High-Quality, Broadly Adaptable Hybrid Rice Breeding, Propagation, and Promotion Industrialization Project' is difficult to estimate due to significant changes in its scope compared to the company's current business and scale[34](index=34&type=chunk) - As of the end of the reporting period, the company's planned raised funds account had a balance of **500 yuan**, and the over-raised funds account had a balance of **12.0037 million yuan**, primarily due to unused over-raised funds and interest income[34](index=34&type=chunk) [Execution of Cash Dividend Policy During the Reporting Period](index=15&type=section&id=VI.%20Execution%20of%20Cash%20Dividend%20Policy%20During%20the%20Reporting%20Period) The board approved the 2016 profit distribution plan, proposing a cash dividend of **1 yuan per 10 shares** (tax inclusive) and a **3-for-10 share bonus** from capital reserves, pending shareholder approval - For 2016, the company proposes a cash dividend of **1 yuan per 10 shares** (tax inclusive) to all shareholders, based on a total share capital of **319,820,000 shares**, totaling **31,982,000 yuan**[36](index=36&type=chunk) - Concurrently, the company proposes a **3-for-10 share bonus** from capital reserves to all shareholders, totaling **95,946,000 yuan**[36](index=36&type=chunk) - The aforementioned profit distribution plan requires approval by the company's 2016 Annual General Meeting of Shareholders[36](index=36&type=chunk) [Warning and Explanation of Potential Loss or Significant Change in Cumulative Net Profit from Year-Beginning to Next Period-End](index=15&type=section&id=VII.%20Warning%20and%20Explanation%20of%20Potential%20Loss%20or%20Significant%20Change%20in%20Cumulative%20Net%20Profit%20from%20Year-Beginning%20to%20Next%20Period-End) The company has no forecast of potential cumulative net profit loss or significant change from year-beginning to the next period-end during the reporting period [Illegal External Guarantees](index=15&type=section&id=VIII.%20Illegal%20External%20Guarantees) The company had no illegal external guarantees during the reporting period [Non-Operating Fund Occupation by Controlling Shareholder and Related Parties](index=15&type=section&id=IX.%20Non-Operating%20Fund%20Occupation%20by%20Controlling%20Shareholder%20and%20Related%20Parties) The company had no non-operating fund occupation by controlling shareholders or related parties during the reporting period [Financial Statements](index=16&type=section&id=Item%204.%20Financial%20Statements) This section presents the company's consolidated and parent company balance sheets, income statements, and cash flow statements [Consolidated Balance Sheet](index=16&type=section&id=1.%20Consolidated%20Balance%20Sheet) As of March 31, 2017, the company's total consolidated assets were **1.327 billion yuan**, a **7.23%** decrease from the beginning of the period, with significant shifts in current assets, liabilities, and owner's equity Consolidated Balance Sheet Key Data (March 31, 2017) | Item | Period-End Balance (yuan) | Period-Beginning Balance (yuan) | | :--- | :--- | :--- | | Monetary Funds | 344,574,953.27 | 414,864,221.14 | | Notes Receivable | 300,000.00 | 900,000.00 | | Prepayments | 66,185,308.24 | 27,071,712.30 | | Other Current Assets | 69,324,723.45 | 113,892,874.80 | | Total Current Assets | 949,399,919.13 | 1,051,027,658.67 | | Development Expenditures | 11,043,097.62 | 7,688,948.58 | | Total Assets | 1,326,995,436.10 | 1,430,458,597.47 | | Accounts Payable | 104,110,290.33 | 191,031,777.30 | | Employee Remuneration Payable | 14,518,014.04 | 33,667,342.38 | | Total Current Liabilities | 379,701,059.18 | 472,199,437.48 | | Total Liabilities | 462,208,383.08 | 555,505,733.76 | | Total Owners' Equity Attributable to Parent Company | 664,879,656.00 | 659,916,244.54 | | Total Owners' Equity | 864,787,053.02 | 874,952,863.71 | [Parent Company Balance Sheet](index=19&type=section&id=2.%20Parent%20Company%20Balance%20Sheet) As of March 31, 2017, the parent company's total assets were **720 million yuan**, a slight decrease from the period's beginning, with notable changes in current assets, liabilities, and owner's equity Parent Company Balance Sheet Key Data (March 31, 2017) | Item | Period-End Balance (yuan) | Period-Beginning Balance (yuan) | | :--- | :--- | :--- | | Monetary Funds | 159,740,015.45 | 166,576,383.11 | | Accounts Receivable | 11,962,172.81 | 12,647,521.57 | | Prepayments | 6,184,055.79 | 3,860,363.25 | | Other Receivables | 42,480,074.12 | 17,604,904.62 | | Inventories | 94,772,953.68 | 103,560,135.50 | | Long-term Equity Investments | 193,406,000.92 | 192,660,744.58 | | Total Assets | 720,397,576.96 | 730,122,556.12 | | Accounts Payable | 22,912,877.01 | 40,778,987.14 | | Advances from Customers | 68,692,812.41 | 79,867,388.35 | | Total Liabilities | 148,254,654.06 | 172,816,150.63 | | Total Owners' Equity | 572,142,922.90 | 557,306,405.49 | [Consolidated Income Statement](index=21&type=section&id=3.%20Consolidated%20Income%20Statement) During the reporting period, the company achieved **104.36 million yuan** in total operating revenue, a **10.10%** increase, with operating profit surging by **136.55%** to **3.67 million yuan**, and net profit attributable to the parent company growing by **43.78%** to **2.69 million yuan**, primarily due to increased revenue and investment income Consolidated Income Statement Key Data | Item | Current Period Amount (yuan) | Prior Period Amount (yuan) | | :--- | :--- | :--- | | Total Operating Revenue | 104,357,592.54 | 94,781,530.41 | | Operating Profit | 3,665,245.73 | 1,549,447.53 | | Total Profit | 4,770,332.42 | 3,954,281.83 | | Net Profit | 4,695,000.34 | 3,621,704.47 | | Net Profit Attributable to Owners of Parent Company | 2,685,968.47 | 1,868,164.27 | | Basic Earnings Per Share | 0.0084 | 0.0058 | | Diluted Earnings Per Share | 0.0084 | 0.0058 | [Parent Company Income Statement](index=23&type=section&id=4.%20Parent%20Company%20Income%20Statement) During the reporting period, the parent company's operating revenue significantly decreased to **18.03 million yuan**, yet operating profit surged by **902.79%** to **15.21 million yuan**, and net profit grew by **784.70%** to **15.50 million yuan**, primarily driven by a substantial increase in investment income Parent Company Income Statement Key Data | Item | Current Period Amount (yuan) | Prior Period Amount (yuan) | | :--- | :--- | :--- | | Operating Revenue | 18,030,430.44 | 42,047,929.46 | | Investment Income | 18,251,655.64 | 2,921,581.02 | | Operating Profit | 15,214,064.90 | 1,517,334.41 | | Total Profit | 15,500,607.63 | 1,751,921.67 | | Net Profit | 15,500,607.63 | 1,751,921.67 | | Basic Earnings Per Share | 0.0485 | 0.0055 | | Diluted Earnings Per Share | 0.0485 | 0.0055 | [Consolidated Cash Flow Statement](index=25&type=section&id=5.%20Consolidated%20Cash%20Flow%20Statement) During the reporting period, net cash flow from operating activities significantly decreased to **-93.93 million yuan**, while net cash flow from investing activities turned positive to **42.53 million yuan** due to matured wealth management products, and financing activities turned negative to **-17.86 million yuan** due to increased dividend payments Consolidated Cash Flow Statement Key Data | Item | Current Period Amount (yuan) | Prior Period Amount (yuan) | | :--- | :--- | :--- | | Subtotal of Cash Inflows from Operating Activities | 110,191,913.90 | 132,567,187.15 | | Subtotal of Cash Outflows from Operating Activities | 204,122,358.53 | 135,001,583.02 | | Net Cash Flow from Operating Activities | -93,930,444.63 | -2,434,395.87 | | Subtotal of Cash Inflows from Investing Activities | 79,621,845.21 | 24,321,513.70 | | Subtotal of Cash Outflows from Investing Activities | 37,092,449.00 | 62,967,128.00 | | Net Cash Flow from Investing Activities | 42,529,396.21 | -38,645,614.30 | | Subtotal of Cash Inflows from Financing Activities | 1,022,837.33 | 7,883,100.00 | | Subtotal of Cash Outflows from Financing Activities | 18,886,746.12 | 1,689,255.83 | | Net Cash Flow from Financing Activities | -17,863,908.79 | 6,193,844.17 | | Net Increase in Cash and Cash Equivalents | -69,802,136.46 | -35,135,293.08 | | Cash and Cash Equivalents at Period End | 333,800,319.90 | 238,811,068.03 | [Parent Company Cash Flow Statement](index=27&type=section&id=6.%20Parent%20Company%20Cash%20Flow%20Statement) During the reporting period, the parent company's net cash flow from operating activities turned negative to **-41.74 million yuan**, while net cash flow from investing activities turned positive to **34.93 million yuan** due to increased inflows, and financing activities recorded zero net cash flow Parent Company Cash Flow Statement Key Data | Item | Current Period Amount (yuan) | Prior Period Amount (yuan) | | :--- | :--- | :--- | | Subtotal of Cash Inflows from Operating Activities | 36,931,428.54 | 59,896,168.92 | | Subtotal of Cash Outflows from Operating Activities | 78,671,133.01 | 45,967,952.71 | | Net Cash Flow from Operating Activities | -41,739,704.47 | 13,928,216.21 | | Subtotal of Cash Inflows from Investing Activities | 65,295,000.00 | 17,560,000.00 | | Subtotal of Cash Outflows from Investing Activities | 30,365,870.00 | 27,730,569.00 | | Net Cash Flow from Investing Activities | 34,929,130.00 | -10,170,569.00 | | Subtotal of Cash Inflows from Financing Activities | 0.00 | 3,683,100.00 | | Subtotal of Cash Outflows from Financing Activities | 0.00 | 0.00 | | Net Cash Flow from Financing Activities | 0.00 | 3,683,100.00 | | Net Increase in Cash and Cash Equivalents | -6,836,367.66 | 7,319,032.96 | | Cash and Cash Equivalents at Period End | 159,740,015.45 | 89,703,979.37 | [Audit Report](index=29&type=section&id=II.%20Audit%20Report) The company's 2017 first-quarter report is unaudited - The company's first-quarter report is **unaudited**[65](index=65&type=chunk)

Financial Performance - The company's operating revenue for 2016 was CNY 757,218,222.05, representing a 24.66% increase compared to CNY 607,448,026.24 in 2015[16]. - The net profit attributable to shareholders for 2016 was CNY 30,677,152.44, a 38.58% increase from CNY 22,136,404.04 in 2015[16]. - The net cash flow from operating activities reached CNY 181,248,246.77, marking an 83.25% increase from CNY 98,905,731.12 in 2015[16]. - The total assets at the end of 2016 amounted to CNY 1,430,458,597.47, a 29.13% increase from CNY 1,107,796,218.38 at the end of 2015[16]. - The net assets attributable to shareholders increased by 10.09% to CNY 659,916,244.54 at the end of 2016, compared to CNY 599,412,854.76 at the end of 2015[16]. - The basic earnings per share for 2016 was CNY 0.10, up 42.86% from CNY 0.07 in 2015[16]. - The company achieved a revenue growth of 24.66% year-on-year, with a total profit increase of 24.07% and a net profit attributable to shareholders rising by 38.58%[32]. - The gross profit margin for agricultural products was 35.73%, down from the previous year's margin[67]. - The company reported a total revenue of 2,000 million CNY for the year 2016, reflecting a growth of 9.29% compared to the previous year[170]. Market Expansion and Product Development - The company has expanded its product offerings to include rice, corn, and wheat seeds, maintaining a competitive edge in the rice seed market while making significant progress in corn and wheat seed businesses[24]. - The company has successfully expanded its market reach to Southeast Asia, South Asia, and Africa, enhancing its international presence[24]. - The company is focusing on developing green, mechanized, and specialized quality varieties in response to new agricultural policies[37]. - The company is actively pursuing seven significant R&D projects to enhance its breeding capabilities and market competitiveness[77]. - The company plans to enhance its research capabilities and accelerate the breeding of superior varieties to improve profitability in the future[110]. - The company is focusing on expanding its market presence and promoting new varieties to counteract the challenges faced in the current market environment[109]. Research and Development - The company has adopted a "technology first" strategy, focusing on independent research and development in collaboration with domestic research institutions and universities[25]. - Research and development investment as a percentage of revenue remained high at 4.06% in 2016, reflecting the company's commitment to innovation[26]. - The company established the "National Rice Commercial Molecular Breeding Technology Innovation Alliance" with six leading research institutions to enhance its research capabilities[26]. - The company has launched 9 self-bred corn varieties to the market during the reporting period, indicating progress in its breeding program[27]. - The company has developed a comprehensive ecological testing network covering major ecological regions to support its breeding efforts[26]. Risks and Challenges - The company faced risks related to new variety market promotion, corn industry policy adjustments, and mergers and acquisitions, as noted in the report[4]. - The company emphasizes the importance of managing seed production risks due to climate sensitivity and natural disasters[126]. - The company is addressing risks from corn industry policy adjustments that have negatively impacted market conditions[125]. - The company faces risks in its production model due to potential impacts from natural disasters and the management practices of entrusted seed producers[28]. Subsidiaries and Investments - The company has a total of 14 subsidiaries and 5 affiliated companies, with 6 subsidiaries showing significant performance changes impacting the consolidated results[104]. - The company completed the acquisition of 11% equity in Qianrunfeng, increasing its ownership to 51%[141]. - The company transferred 51% equity of Sichuan Qianyuan to its subsidiary Qianyuan Chao Da, making Sichuan Qianyuan a wholly-owned subsidiary[141]. - The company has established multiple subsidiaries, including Guangxi Quan Hong and Quan Yin Chao Da, with varying ownership stakes, to expand its market presence and product offerings[98]. Corporate Social Responsibility - The company is actively participating in poverty alleviation efforts as part of its corporate social responsibility initiatives[174]. - The company has established a fund to support 320 impoverished students, contributing a total of 2.84914 million yuan to various charitable activities[182]. - The company donated 20,000 RMB to the Zhang Haiyin Seed Industry Foundation to support 10 impoverished students aged 3 to 16 in Shijie Village, Changfeng County[175]. - The company has initiated various public welfare activities, including educational support and disaster relief efforts, enhancing its brand image[182]. Financial Management and Strategy - The company has implemented an equity incentive plan since 2014 to enhance motivation and performance within its marketing teams[34]. - The company has a stable R&D team with 99 research personnel, accounting for 18.5% of the total workforce, enhancing its competitive edge in seed innovation[41]. - The company is committed to fulfilling its social responsibilities and contributing to the sustainable development of the national seed industry[185]. - The company has established a long-term incentive mechanism through stock option plans to motivate employees[186]. - The company is exploring potential mergers and acquisitions to strengthen its market position and diversify its product portfolio[170].

Financial Performance - Total operating revenue decreased by 14.41% to CNY 94,606,450.12 for the current period compared to the same period last year[7] - Net profit attributable to shareholders decreased by 68.24% to a loss of CNY 2,399,610.55 for the current period compared to the same period last year[7] - Basic earnings per share decreased by 68.22% to CNY -0.0075 for the current period compared to the same period last year[7] - The company reported a net profit attributable to shareholders of CNY -8,794,374.16 year-to-date, a decrease of 21.08% compared to the same period last year[7] - The company experienced a decrease in sales revenue for wheat seeds due to adverse weather conditions during the harvest season, impacting overall revenue[22] - The company reported a total revenue of 43,402.27 million CNY for the third quarter of 2016, showing an increase compared to the previous period[39] - Total operating revenue for the third quarter was CNY 94,606,450.12, a decrease of 14.4% compared to CNY 110,529,860.50 in the same period last year[58] - The total comprehensive income for the period was -¥12,804,257.73, compared to -¥8,134,595.27 in the previous period, indicating a worsening financial position[66] Cash Flow and Liquidity - Net cash flow from operating activities increased by 199.83% to CNY 115,040,573.88 year-to-date[7] - The net cash flow from operating activities was 115,040,573.88 CNY, a significant increase from 38,368,331.25 CNY in the previous period, reflecting a strong operational performance[72] - Cash and cash equivalents at the end of the period reached 406,890,774.45 CNY, up from 224,761,610.62 CNY, showing a strong liquidity position[73] - The net cash flow from operating activities was 86,447,809.43 CNY, a turnaround from -23,394,755.45 CNY in the previous year, highlighting operational efficiency improvements[75] - The company reported a net increase in cash and cash equivalents of 132,944,413.34 CNY, contrasting with a decrease of -25,004,511.38 CNY in the prior year, demonstrating improved cash management[73] Assets and Liabilities - Total assets increased by 21.65% to CNY 1,347,670,425.92 compared to the end of the previous year[7] - The total liabilities rose to CNY 548,536,013.05 from CNY 321,814,935.87, indicating a significant increase of about 70.5%[52] - The company's inventory increased to CNY 368,129,802.10 from CNY 351,422,982.53, reflecting a growth of approximately 4.8%[50] - The total equity attributable to shareholders of the parent company reached CNY 616,795,846.15, up from CNY 599,412,854.76, showing an increase of about 2.3%[53] Investments and Projects - The company has ongoing research projects, including the development of hybrid rice varieties suitable for mechanized production, which aims to enhance production efficiency[22] - The company is also working on a transgenic corn project aimed at industrializing pest-resistant varieties, collaborating closely with various research and industry partners[23] - The company has completed a project on hybrid rice breeding capacity building, which aims to enhance its competitive edge in the biotechnology sector[24] - The company plans to invest ¥20 million in R&D over five years (2016-2020) for the establishment of the National Rice Commercial Molecular Breeding Technology Innovation Alliance[27] - The company has initiated a project for the construction of a corn seed breeding and processing base in Tieling City, Liaoning Province, with a total investment of CNY 14.0961 million[42] Shareholder Information - The total number of shareholders at the end of the reporting period was 14,856[12] - The largest shareholder, Jia Guilan, holds 9.59% of the shares, amounting to 30,669,500 shares[12] - The company did not engage in any repurchase transactions during the reporting period[13] - The company did not distribute any cash dividends during the reporting period, maintaining its previous policy of not issuing cash dividends or bonus shares[43] Risk Factors and Management - The company faced risks related to new product market promotion and corn industry policies, which remain unchanged from the previous report[10] - The company is focusing on strengthening its management and operational efficiency to meet stock incentive goals[28] - The company is actively addressing significant risk factors that may adversely affect future operations[30] - The company has established a management system to maximize revenue rights from proprietary breeding combinations[28] Supplier and Customer Dynamics - The top five suppliers accounted for 30.83% of total purchases in Q3 2016, with a total procurement amount of ¥29,103,775.50, compared to 28.55% in Q3 2015[26] - The top five customers contributed ¥9,359,040.71 in sales during Q3 2016, representing 9.89% of total sales, down from 18.49% in Q3 2015[26]

Financial Performance - Total revenue for the reporting period was CNY 182,055,655.11, an increase of 5.04% compared to CNY 173,323,580.89 in the same period last year[17]. - Net profit attributable to shareholders was a loss of CNY 6,394,763.61, representing a decrease of 78.26% from a loss of CNY 3,587,268.89 in the previous year[17]. - The net cash flow from operating activities was a negative CNY 9,820,280.76, a decline of 57.33% compared to a negative CNY 6,241,856.16 in the same period last year[17]. - The weighted average return on net assets was -1.07%, a decrease of 69.84% from -0.63% in the previous year[17]. - The net profit after deducting non-recurring gains and losses was a loss of CNY 9,099,502.65, a decrease of 32.56% from a loss of CNY 6,864,657.48 in the previous year[17]. - The company reported a basic earnings per share of -0.02, a decline of 76.99% from -0.0113 in the same period last year[17]. - The company reported a net profit of ¥8,901,945.23, while several subsidiaries experienced losses, including 湖北荃银高科种业有限公司 with a net loss of ¥3,277,392.37[46]. - The company achieved an operating revenue of ¥182,055,655.11, which is 22.76% of the annual target of ¥800 million[54]. - The company reported a gross profit margin of approximately -5.5% for the first half of 2016, compared to a positive margin in the previous year[139]. - The total comprehensive income for the first half of 2016 was -¥5,535,933.94, compared to -¥8,736,856.22 in the same period last year, showing a significant improvement[144]. Assets and Liabilities - The total assets at the end of the reporting period were CNY 1,149,858,449.20, an increase of 3.80% from CNY 1,107,796,218.38 at the end of the previous year[17]. - Total current assets at the end of the period amounted to ¥785,558,295.94, up from ¥739,170,027.96, marking an increase of approximately 6.27%[131]. - Total liabilities rose to ¥348,173,750.95 from ¥321,814,935.87, indicating an increase of approximately 8.14%[132]. - The company's equity increased with the share capital rising to ¥319,820,000.00 from ¥316,800,000.00[132]. - The total equity attributable to shareholders of the parent company was CNY 616,754,972.53, up from CNY 599,412,854.76, reflecting an increase of 2.25%[136]. - The total amount of other comprehensive income is reported as 9,353,991 CNY[161]. - The company's total liabilities are reported as 186,568,000 CNY[161]. Research and Development - The company has launched several new hybrid rice and corn varieties, enhancing its seed business's growth potential[23]. - The company has developed 7 new varieties of rice, corn, wheat, and rapeseed that have passed provincial-level approval, enhancing its seed business growth potential[33]. - The company is focusing on enhancing its research and innovation capabilities by increasing investments in talent, technology reserves, and variety testing[32]. - The company is involved in five major R&D projects, including the development of hybrid rice varieties suitable for mechanized production and transgenic pest-resistant corn[48][49][50]. - The company plans to establish a "National Rice Commercialization Molecular Breeding Technology Innovation Alliance" with several research institutes to improve its rice breeding innovation capabilities[32]. Market Strategy and Expansion - The company is actively implementing an asset restructuring plan with Sichuan Tonglu Agricultural Technology Co., Ltd. to strategically position its corn seed industry[34]. - The company is exploring new marketing models, including internet marketing and technical support services, to increase market share of its new varieties[33]. - The company is accelerating its "going out" strategy to actively expand overseas business[34]. - The company aims to enhance its competitive edge in overseas agricultural projects, particularly in Angola, through the selection of suitable crop varieties[50]. - The company expanded its international presence by initiating localized research in Southeast Asia, South Asia, and Africa, enhancing its agricultural technology service projects[35]. Financial Management and Investments - The company raised a total of RMB 469,920,000.00 from the issuance of 13.2 million shares at an issue price of RMB 35.60 per share, with a net amount of RMB 432,721,606.30 after deducting underwriting and issuance expenses[60]. - The company has accumulated a total of ¥43,402.27 million in raised funds, with no changes in the use of these funds reported during the period[58]. - The company has a total of RMB 332,417,000.00 in excess raised funds, with RMB 330,410,400.00 already allocated to various projects[61]. - The company has completed all fundraising investment projects as per the prospectus, with remaining oversubscribed funds to be used according to future operational and development needs[66]. - The company plans to continue expanding its investment activities, as indicated by the increase in cash flow from financing activities[151]. Shareholder Information - The total number of shareholders at the end of the reporting period is 21,419[117]. - Major shareholders include 贾桂兰 with 9.59% (30,669,500 shares) and 张琴 with 8.69% (27,796,800 shares), both of whom have pledged their shares[117]. - The total number of restricted shares at the beginning of the period was 62,074,074, with 8,024,556 shares released and 909,750 shares added, resulting in 54,959,268 restricted shares at the end of the period[115]. - The total number of shares after the changes is 319,820,000, with 54,959,268 restricted shares (17.18%) and 264,860,732 unrestricted shares (82.82%)[112]. Compliance and Regulatory Matters - The company has faced regulatory scrutiny, receiving a warning letter from the China Securities Regulatory Commission[108]. - The company is involved in a civil lawsuit regarding illegal shareholding, with a disputed amount of 3.71% of shares in question[78]. - The company has committed to not engaging in any business that directly competes with its operations[106]. - The company reported no significant related party transactions during the reporting period[87]. Cash Flow and Financial Position - The company's cash and cash equivalents increased to ¥317,135,728.32 from ¥277,876,695.37, representing a growth of approximately 14.14%[130]. - The company's cash flow from operating activities showed a net outflow of -¥9,820,280.76, worsening from -¥6,241,856.16 in the same period last year[147]. - The total cash and cash equivalents at the end of the period increased to 117,943,263.31 CNY, up from 57,796,244.37 CNY in the previous period[151]. - The net cash flow from financing activities was 15,222,100.00 CNY, with no cash outflow recorded in the previous period[151].