[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].

Financial Performance - Total revenue for Q1 2016 was ¥94,781,530.41, an increase of 6.02% compared to ¥89,403,545.38 in the same period last year[7] - Net profit attributable to shareholders was ¥1,868,164.27, representing a growth of 25.41% from ¥1,489,604.62 year-on-year[7] - Basic and diluted earnings per share increased by 25.53% to ¥0.0059 from ¥0.0047 year-on-year[7] - The company achieved operating revenue of 94.78 million yuan, an increase of 6.02% compared to the same period last year[21] - The net profit attributable to shareholders was 1.8682 million yuan, representing a growth of 25.41% year-on-year[21] - The company achieved an operating revenue of 800 million CNY for the year, with a net profit attributable to shareholders of 27 million CNY, completing 11.85% and 6.92% of the annual targets respectively[24] - The company reported a total comprehensive income attributable to the parent company of CNY 1,866,282.06, compared to CNY 1,489,604.62 in the previous year[54] Cash Flow and Liquidity - The net cash flow from operating activities was negative at -¥2,434,395.87, a decline of 119.21% compared to ¥12,669,947.32 in the same period last year[7] - Cash flow from operating activities showed a net outflow of CNY 2,434,395.87, down from a net inflow of CNY 12,669,947.32 in the same period last year[60] - The company's cash and cash equivalents decreased from CNY 277.88 million at the beginning of the year to CNY 242.74 million by March 31, 2016, representing a decline of approximately 12.63%[44] - The company's cash and cash equivalents increased to CNY 89,703,979.37 from CNY 82,384,946.41, marking a growth of about 9.6%[48] - The ending balance of cash and cash equivalents was ¥89,703,979.37, compared to ¥55,084,069.69 at the end of the previous year[64] Assets and Liabilities - Total assets at the end of the reporting period were ¥1,117,180,242.56, up 0.85% from ¥1,107,796,218.38 at the end of the previous year[7] - The total liabilities as of Q1 2016 were CNY 124,919,084.55, up from CNY 118,247,732.63 at the start of the year, which is an increase of approximately 5.7%[50] - The total assets of the company increased from CNY 1,107.80 million to CNY 1,117.18 million, reflecting a growth of about 0.84%[45] - The total equity attributable to shareholders of the parent company was CNY 603,658,825.28, up from CNY 599,412,854.76, indicating a growth of approximately 0.4%[47] Investments and R&D - The company is actively pursuing a merger and acquisition plan to acquire 60% of Sichuan Tonglu Agricultural Technology Co., Ltd., and is preparing necessary reports for regulatory approval[25] - The company continues to invest in R&D and innovation, focusing on improving the breeding and approval processes for new crop varieties[24] - The company is conducting five major R&D projects, including the breeding of hybrid rice varieties suitable for mechanized production[21][22] - The company has developed new approved varieties of corn (3), wheat (1), and rapeseed (1) during the reporting period, enhancing its product offerings[24] Operational Challenges and Risks - The company continues to face risks related to the promotion of new rice varieties and changes in national corn industry policies, with no new significant risks identified during the reporting period[10] - The company has outlined major risk factors and challenges in its operations, with plans to address these issues as part of its strategic management[25] Shareholder Information - The total number of shareholders at the end of the reporting period was 25,799, with the top ten shareholders holding significant stakes[12] Cost Management - Management expenses increased by 5,657,563.88 yuan, up 37.85%, mainly due to stock incentive amortization and office expenses[19] - Sales expenses decreased to CNY 5,849,806.19 from CNY 6,841,152.01, indicating improved cost management[56] Fundraising and Investments - Total raised funds amount to 46,992,000 RMB, with 0 RMB invested in the current quarter[32] - Cumulative investment of raised funds reached 43,402,270 RMB, with a 0% change in usage[32] - The company has committed to using remaining excess funds based on future operational and developmental needs[35]

Financial Performance - The company's operating revenue for 2015 was CNY 607,448,026.24, representing a 29.51% increase compared to CNY 469,022,777.13 in 2014[18]. - The net profit attributable to shareholders for 2015 was CNY 22,136,404.04, a significant increase of 323.29% from CNY 5,229,652.18 in 2014[18]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was CNY 13,805,752.35, compared to a loss of CNY 3,770,562.17 in 2014[18]. - The net cash flow from operating activities was CNY 98,905,731.12, showing a slight increase of 1.72% from CNY 97,235,184.36 in 2014[18]. - The basic earnings per share for 2015 was CNY 0.0699, up 323.64% from CNY 0.0165 in 2014[18]. - The total assets at the end of 2015 were CNY 1,107,796,218.38, reflecting a 5.67% increase from CNY 1,048,315,086.11 at the end of 2014[18]. - The net assets attributable to shareholders at the end of 2015 were CNY 599,412,854.76, a 5.40% increase from CNY 568,689,399.31 at the end of 2014[18]. - The weighted average return on equity for 2015 was 3.78%, an increase from 0.91% in 2014[18]. - The company's total revenue increased by 29.51% year-on-year[29]. - Net profit attributable to shareholders grew by 323.29% compared to the previous year[29]. Business Operations - The company plans not to distribute cash dividends or issue bonus shares for the year[6]. - The company faces potential risks including market promotion risks for new rice varieties and management risks in diversified business development[4]. - The company has been recognized as a national high-tech enterprise and a leading agricultural enterprise in Anhui Province[29]. - The company has developed a range of new seed varieties that meet market demands, enhancing its competitive advantage[29]. - The company implemented a stock incentive plan to boost employee motivation and performance[29]. - The company operates under a "company + distributor + farmer" sales model to promote its seed products[28]. - The company is positioned as the 16th in comprehensive strength among seed enterprises nationwide[29]. - The company is focusing on expanding its market share in hybrid rice, corn, and wheat seeds[27]. Sales and Market Performance - In 2015, the company achieved operating revenue of 607.45 million CNY, an increase of 29.51% compared to the previous year, and net profit of 42.87 million CNY, up 77.36% year-on-year[35]. - The company sold 12.62 million kilograms of rice seeds, a 17.65% increase from the previous year, generating sales of 343.36 million CNY, which is a 34.56% increase[37]. - The company’s hybrid rice variety, Hui Liangyou 898, sold 493,200 kilograms within three months of its launch, significantly contributing to revenue growth[37]. - The company’s corn seed sales reached 4.14 million kilograms, a 20.37% increase, with sales revenue of 59.12 million CNY, up 22.00% year-on-year[38]. - The company completed the disposal of 3.19 million kilograms of rice seed inventory, a 21.54% reduction from the beginning of the period, achieving a more reasonable inventory level[37]. Research and Development - The company’s seed production completion rate exceeded 95%, with germination rates of new varieties reaching 85% and purity over 98%[40]. - The company established subsidiaries in Africa and Southeast Asia to expand its international market presence and agricultural technology services[41]. - The company is investing in agricultural product wholesale logistics, with a project in Quanjiao County, Anhui Province, currently under construction[41]. - The company's R&D investment reached ¥24,515,834.99, an increase of 33.96% year-on-year, primarily due to increased investment in new varieties of rice and corn[46]. - The gross profit margin for agricultural products was 39.68%, which improved by 6.33% compared to the previous year[51]. - The company added 13 new crop varieties during the reporting period, including several rice and cotton varieties approved at the national and provincial levels[60]. - The company is involved in six major R&D projects, including a national project focused on hybrid rice breeding capabilities and a transgenic corn project[62][63]. - The establishment of a national-level postdoctoral research workstation aims to enhance the company's R&D capabilities and attract high-level talent[64]. Financial Management - The company reported a net cash flow from financing activities of ¥14,533,198.54, an increase of ¥42,139,616.68 compared to the previous year[46]. - The company established a joint venture, Anhui Qianying Gaosheng Investment Co., Ltd., with a registered capital of ¥1,000,000, in which the company holds a 51% stake[54]. - The company divested 51% of its stake in Sichuan Zhufeng Seed Industry Co., Ltd., completing the transfer for ¥12,240,000[54]. - The company reported a total of 7 patent applications in 2015, with 4 patents granted by the end of the reporting period[65]. - The company recorded an investment income of CNY 3,995,927.76, accounting for 9.11% of total profit[71]. Corporate Governance - The company has not faced any major litigation or arbitration matters during the reporting period[142]. - The company has not engaged in any major related party transactions during the reporting period[147]. - The company has not undergone any bankruptcy reorganization during the reporting period[141]. - The company has not reported any major contracts that significantly impacted its profit during the reporting period[155]. - The total amount of external guarantees approved during the reporting period was CNY 5,300 million, with actual guarantees amounting to CNY 5,900 million[156]. - The company provided no guarantees to shareholders, actual controllers, or related parties[157]. - The company had no violations regarding external guarantees during the reporting period[157]. - The company engaged in entrusted financial management, with a total of CNY 3,900 million recovered from financial products during the reporting period[159]. Shareholder Information - The total number of shareholders at the end of the reporting period was 28,186, with no changes in the number of preferred shareholders[176]. - The company’s major shareholders include 贾桂兰 with 9.49% and 张琴 with 8.77% of the total shares[176]. - The total number of shares increased from 158,400,000 to 316,800,000 after a capital reserve distribution of 158,400,000 shares[171]. - The company has a dispersed shareholding structure with no single shareholder holding more than 50% or having actual control over 30% of voting rights[179]. - The company reported no changes in its controlling shareholder or actual controller during the reporting period[182]. Future Outlook - The company plans to continue expanding its market presence through strategic investments in agricultural products[78]. - The company aims to strengthen its research and innovation capabilities, focusing on the establishment of a green channel for variety approval and enhancing its research resource reserves[114]. - The company plans to utilize remaining superfluous funds based on future operational and development needs[90]. - The company plans to implement a comprehensive market promotion and service plan for new varieties, enhancing marketing efforts and providing technical support[117]. - The company aims to accelerate corn R&D and innovate high-quality corn varieties to meet market demands in core production areas[118].

Financial Performance - Total operating revenue for the reporting period was ¥110,529,860.50, representing a year-on-year increase of 58.61%[6] - Net profit attributable to shareholders was -¥7,556,167.43, a decrease of 18.88% compared to the same period last year[6] - Basic earnings per share were -¥0.0239, down 18.88% from the previous year[6] - The weighted average return on net assets was -1.34%, a decrease of 0.18% compared to the previous year[6] - The company reported a net profit attributable to shareholders for the first nine months of 2015 was a loss of CNY 11,143,436.32, a decrease of 10.57% compared to the previous year[21] - The company reported a significant increase in prepayments, which rose to CNY 125,892,350.69 from CNY 59,081,913.65, an increase of approximately 113.4%[46] - The company reported a net loss of CNY 7,617,133.36, compared to a net loss of CNY 5,863,229.56 in the same period last year, indicating a deterioration in profitability[55] - The total comprehensive loss for the current period was CNY -7,617,133.36, compared to CNY -5,863,229.56 in the previous period[56] Assets and Liabilities - Total assets at the end of the reporting period reached ¥1,094,753,659.45, an increase of 4.43% compared to the previous year[6] - The company's total liabilities increased to CNY 360,695,898.35 from CNY 319,700,728.36, reflecting a rise of approximately 12.1%[48] - The total equity attributable to shareholders of the parent company decreased slightly to CNY 564,374,183.73 from CNY 568,689,399.31, a decline of about 0.6%[49] - Cash and cash equivalents decreased to CNY 235,423,754.48 from CNY 260,494,186.68, representing a decrease of approximately 9.6%[46] - Accounts receivable decreased to CNY 27,299,671.76 from CNY 34,885,876.09, a decline of about 21.7%[46] - Inventory decreased to CNY 327,669,255.72 from CNY 366,348,873.18, reflecting a decrease of approximately 10.5%[46] - Short-term borrowings increased to CNY 29,000,000.00 from CNY 17,000,000.00, an increase of approximately 70.6%[48] Cash Flow - The net cash flow from operating activities was ¥38,368,331.25, showing a significant increase of 687.85% year-on-year[6] - The company's operating cash flow for the period was CNY 38,368,331.25, significantly improved from CNY 4,869,978.51 in the previous year[69] - The net cash flow from operating activities was -23,394,755.45 CNY, compared to 27,876,235.87 CNY in the previous period, indicating a significant decline in operational cash generation[73] - Total cash inflow from operating activities was 92,888,419.84 CNY, down from 113,835,990.16 CNY year-over-year, reflecting a decrease of approximately 18.4%[72] - The cash outflow from operating activities increased to 116,283,175.29 CNY, compared to 85,959,754.29 CNY in the previous period, representing a rise of about 35.2%[72] Investments and Acquisitions - The company is actively pursuing mergers and acquisitions to achieve breakthrough developments in its main business, with due diligence and evaluations already completed for targeted companies[23] - The company has completed the acquisition of a 54% stake in Anhui Wan Nong Seed Industry Co., Ltd., but the expected sales performance has not been met[37] - The company has purchased exclusive production rights for various hybrid rice and corn varieties, with total investments reaching CNY 1,000 million[35] - The cumulative investment in the seed industry facility project has reached CNY 7,996.48 million, fully utilizing the raised funds[35] Research and Development - The company plans to enhance its breeding innovation capabilities, having developed two new hybrid rice varieties and one hybrid cotton variety that have passed national approval[22] - The company is focusing on developing new corn seed varieties to enhance its product portfolio, as current operations are primarily rice seed-based[27] - The company is actively pursuing research and development projects, including a major project on transgenic pest-resistant corn[24] - The company’s core breeding technology capabilities are being strengthened, with new hybrid rice varieties expected to pass national certification by 2016[25] Shareholder Information - The total number of shareholders at the end of the reporting period was 25,114[11] - The top ten shareholders held a combined 43.88% of the company's shares, with the largest shareholder owning 9.49%[11] - The company has not made any cash dividends during the reporting period, nor has it adjusted its cash dividend policy[42] Management and Operational Challenges - The company’s management expenses for the first nine months of 2015 increased by CNY 17,947,275.90, a rise of 43.78% due to higher stock incentive amortization and project depreciation[18] - Management plans to control operational expenses to mitigate the impact of rising management costs on performance[27] - The company did not report any new significant risks that could adversely affect operations in the next reporting period[9]

Financial Performance - Total operating revenue for the first half of 2015 was ¥173,323,580.89, an increase of 6.25% compared to ¥163,127,295.90 in the same period last year[17]. - Net profit attributable to ordinary shareholders was a loss of ¥3,587,268.89, an improvement of 3.62% from a loss of ¥3,721,894.21 in the previous year[17]. - Basic earnings per share were reported at -¥0.0113, a slight improvement of 3.42% from -¥0.0117 in the previous year[17]. - The total profit for the period was a loss of 149,100 yuan, which is a reduction in loss by 440,500 yuan compared to the same period last year[27]. - The net profit attributable to ordinary shareholders was a loss of 3.59 million yuan, a decrease in loss by 134,600 yuan year-on-year[27]. - The company reported a significant increase in sales expenses, which rose to CNY 35,770,820.64 from CNY 32,581,376.81, marking an increase of 6.7%[136]. - The net profit for the current period was CNY -517,461.91, an improvement from CNY -1,998,750.72 in the previous period, indicating a reduction in losses[138]. - The total comprehensive income for the current period was CNY -517,461.91, an improvement from CNY -1,998,750.72 in the previous period[138]. Cash Flow and Liquidity - Net cash flow from operating activities was negative at ¥6,241,856.16, a decline of 174.28% compared to a positive cash flow of ¥8,403,463.99 in the same period last year[17]. - The company’s cash and cash equivalents decreased by 463.00% to -¥83,617,376.91, reflecting significant outflows[34]. - The company’s investment activities resulted in a net cash outflow of -¥89,717,665.96, a 408.85% increase in outflows compared to the previous year, mainly due to prepayments for real estate and land by a subsidiary[34]. - The cash inflow from operating activities totaled CNY 186,148,948.62, an increase from CNY 173,653,819.17 in the previous period, reflecting a growth of 7.9%[143]. - The net cash flow from operating activities was -23,741,296.88 CNY, a significant drop from 25,462,463.63 CNY in the previous period, reflecting operational challenges[148]. - The total cash and cash equivalents at the end of the period decreased to 166,148,745.09 CNY from 231,557,719.52 CNY, showing a significant reduction in liquidity[146]. Assets and Liabilities - Total assets at the end of the reporting period were ¥1,035,405,397.37, a decrease of 1.23% from ¥1,048,315,086.11 at the end of the previous year[17]. - The company reported a decrease in accounts payable from CNY 86,387,771.29 to CNY 59,743,868.30, a reduction of about 30.8%[129]. - The total liabilities decreased from CNY 319,700,728.36 to CNY 306,424,425.17, a reduction of about 4.1%[129]. - The company’s long-term investments increased from CNY 2,133,494.42 to CNY 2,522,213.46, an increase of approximately 18.3%[128]. - The total equity attributable to the parent company was 728,614,357.75 CNY, reflecting changes in comprehensive income and capital contributions during the period[151]. Shareholder Information - The company plans not to distribute cash dividends or issue bonus shares for the reporting period[6]. - The total number of shares increased from 158,400,000 to 316,800,000 due to a capital reserve conversion plan, effectively doubling the share count[108]. - Major shareholders include Jia Guilan with 27,054,000 shares (9.49%) and Zhang Qin with 20,847,600 shares (8.77%)[113]. - The company reported a total of 63,876,074 restricted shares at the end of the period[110]. - The company’s shareholding structure shows 72.96% of shares are unrestricted, totaling 252,923,926 shares[108]. Investment and R&D - The company is actively exploring agricultural diversification, including the establishment of a wholesale logistics market for agricultural products in partnership with Anhui Zhonghe Gaosheng Market Investment Co., Ltd.[29]. - The company has three key R&D projects aimed at enhancing its breeding capabilities and competitiveness in hybrid rice production[43]. - The company signed a project task contract with the Anhui Provincial Department of Science and Technology for research on rice varieties suitable for mechanized production[44]. - Research and development expenses amounted to ¥7,044,504.62, a slight decrease of 1.36% compared to the previous year[34]. Corporate Governance and Management - The company has undergone changes in its management team, including resignations of key executives[102]. - The company implemented a stock option incentive plan to align the interests of shareholders, the company, and management, with the first grant date set for March 5, 2015[81]. - The stock option plan was revised and approved by the board and independent directors, with the first grant registration completed on March 24, 2015[83]. - The company’s board of directors and senior management experienced changes, with two resignations noted during the reporting period[122]. Regulatory and Compliance - The half-year financial report has not been audited[101]. - The company’s financial statements are prepared based on the assumption of going concern and comply with the relevant accounting standards[169]. - The company has not engaged in any entrusted financial management, derivative investments, or entrusted loans during the reporting period[67][68][69].

Financial Performance - Total revenue for Q1 2015 was CNY 89,403,545.38, an increase of 8.96% compared to CNY 82,048,210.77 in the same period last year[7] - Net profit attributable to ordinary shareholders decreased by 21.11% to CNY 1,489,604.62 from CNY 1,888,142.24 year-on-year[7] - Basic earnings per share decreased by 21.01% to CNY 0.0094 from CNY 0.0119 in the same period last year[7] - The company achieved operating revenue of CNY 89.40 million, an increase of 8.96% year-on-year, while net profit attributable to shareholders decreased by 21.11% to CNY 1.49 million[21] - The net profit for the period was CNY 6,369,091.87, compared to CNY 6,634,092.95 in the previous year, reflecting a decrease of approximately 4.0%[49] - The profit attributable to the parent company's shareholders was CNY 1,489,604.62, down from CNY 1,888,142.24, a decline of about 21.1%[49] Cash Flow - Net cash flow from operating activities increased by 7.34% to CNY 12,669,947.32 compared to CNY 11,803,360.77 in the previous year[7] - Cash received from operating activities increased by CNY 9,190,168.22, a growth rate of 201.69%, mainly due to increased government subsidies[19] - Cash inflow from operating activities totaled 111,285,950.57 CNY, slightly up from 109,419,143.19 CNY year-over-year[56] - Cash outflow from investing activities was 105,717,417.29 CNY, significantly higher than 11,958,969.21 CNY in the previous period[57] - Net cash flow from investing activities was -60,433,162.49 CNY, compared to -11,958,969.21 CNY in the previous period[57] - Cash flow from financing activities resulted in a net outflow of -19,959,249.45 CNY, a decrease from a net inflow of 579,820.01 CNY in the previous period[58] Assets and Liabilities - Total assets at the end of the reporting period were CNY 1,014,677,440.00, a decrease of 3.21% from CNY 1,048,315,086.11 at the end of the previous year[7] - The company's total liabilities decreased from CNY 319,700,728.36 to CNY 278,407,852.38, a decline of about 12.9%[42] - Cash and cash equivalents decreased from CNY 260,494,186.68 to CNY 191,161,710.11, representing a decline of approximately 26.6%[40] - Accounts receivable increased from CNY 34,885,876.09 to CNY 36,891,873.53, reflecting a growth of about 5.7%[40] - Inventory decreased from CNY 366,348,873.18 to CNY 340,557,120.12, a reduction of approximately 7.0%[40] Shareholder Information - The total number of shareholders at the end of the reporting period was 8,717[12] - The top ten shareholders held a combined 54.71% of the company's shares, with the largest shareholder holding 11.39%[12] - Shareholders' equity attributable to ordinary shareholders increased by 0.49% to CNY 571,465,141.93 from CNY 568,689,399.31 at the end of the previous year[7] Investments and Projects - The company is actively pursuing mergers and acquisitions to strengthen its market position and has initiated preparations for small-scale rapid private placements[22] - The company has established a new investment company to explore diversified agricultural development, focusing on wholesale logistics for agricultural products[22] - The company completed the construction of a major breeding innovation platform, enhancing its core competitiveness in hybrid rice breeding[23] - The project for high-yield, high-quality hybrid rice breeding has a total investment of CNY 10,030.46 million, with 103.30% of the project completed as of November 26, 2014[30] - The acquisition of a 51% stake in Sichuan Zhufeng Seed Industry Co., Ltd. has been fully completed with an investment of CNY 994.2 million[30] Commitments and Compliance - There are no changes in the commitments made to small shareholders, and all commitments have been fulfilled on time[28] - The company has maintained normal performance in fulfilling its commitments related to stock incentives and competition avoidance[28] - The company has not reported any major changes in project feasibility or investment plans[30] Future Outlook - The company plans to achieve an annual operating revenue target of CNY 600 million and a net profit target of CNY 20 million, with the current quarter achieving 14.90% and 7.45% of these targets respectively[24] - The company plans to increase its share capital by 100% by converting capital reserves, resulting in a total of 158,400,000 new shares issued[36]

Financial Performance - The company reported a total revenue of 1.2 billion RMB for the year 2014, representing a year-on-year increase of 15%[11] - The net profit attributable to shareholders was 150 million RMB, an increase of 20% compared to the previous year[11] - The gross margin for 2014 was reported at 35%, a slight improvement from 33% in 2013[11] - In 2014, the company's operating income was CNY 469,022,777.13, a slight increase of 0.63% compared to CNY 466,066,716.75 in 2013[17] - The company's net profit attributable to shareholders decreased by 32.41% to CNY 5,229,652.18 from CNY 7,736,895.62 in the previous year[17] - The net cash flow from operating activities surged by 844.41% to CNY 97,235,184.36, compared to CNY 10,295,898.35 in 2013[17] - The total assets increased by 4.58% to CNY 1,048,315,086.11 at the end of 2014, up from CNY 1,002,412,854.98 in 2013[17] - The company reported a significant decline in operating profit, which fell by 42.67% to CNY 15,207,114.56 from CNY 26,526,868.21 in 2013[17] Market Expansion and Product Development - The company expanded its user base by 10% in 2014, reaching a total of 1.1 million active users[11] - The company plans to launch three new seed varieties in 2015, aiming to capture a larger market share in the agricultural sector[11] - The company expects a revenue growth of 12% for 2015, driven by new product launches and market expansion efforts[11] - The company has established partnerships with two major agricultural cooperatives to enhance distribution channels[11] - The company introduced 5 new provincial rice varieties and 2 new corn varieties during the reporting period, with expectations for national approval in 2015[29] - The company is exploring e-commerce models in the seed industry by investing in a seed e-commerce platform[32] - The company is expanding its international business, particularly in Southeast Asia and Angola, enhancing its global competitiveness[32] - The company plans to expand its market presence by participating in the approval process for a new corn variety across six provinces in 2015, aiming to enhance market coverage[90] Research and Development - The company is investing 50 million RMB in research and development for new agricultural technologies in the upcoming year[11] - Research and development investment totaled CNY 18,301.01 million, an increase of 6.33% compared to the previous year[36] - The company aims to enhance breeding innovation capabilities and establish a green channel management department to improve overall research efficiency[98] - The company has accelerated the breeding and approval process for new varieties, adding three new watermelon varieties and two new sweet melon varieties in 2014[92] - The company highlighted the need for strong R&D capabilities to adapt to changing market demands and mitigate competition risks[23] Financial Management and Investments - The company plans to continue implementing inventory digestion measures as a key operational goal to alleviate financial pressure[24] - The total liabilities increased by 14.37% to CNY 319,700,728.36 from CNY 279,541,466.06 in 2013[17] - The company has a cash dividend policy that mandates a minimum of 10% of distributable profits to be distributed as cash dividends when conditions are met[105] - The total distributable profit for the current period is 80,103,122.49 RMB, with no cash dividends declared for the year[107] - The company plans to increase its share capital by 158,400,000 shares, with a distribution ratio of 1:1 (10 shares for every 10 shares held) based on the total share capital as of December 31, 2014[108] - The company has a remaining balance of CNY 2,197.65 million in its oversubscribed funds account, attributed to unutilized funds and interest income[65] Challenges and Risks - The company faced risks related to seed production due to climate sensitivity, which could impact yield and quality[23] - The company faced challenges in 2014 due to low temperatures affecting rice seed production, leading to reduced sales of certain varieties[47] - The overall seed market faced challenges due to product homogeneity and accelerated lifecycle, prompting companies to innovate and collaborate with research institutions[80] Corporate Governance and Management - The company has established a comprehensive insider information management system to protect investor rights and prevent insider trading[112] - The company has a strategic cooperation agreement that includes a commitment to not transfer shares for 12 months after acquisition[151] - The company has a strong leadership structure, with several members enjoying government special allowances, reflecting their expertise and contributions to the industry[193] - The total remuneration paid to directors, supervisors, and senior management in 2014 amounted to CNY 173.89 million[195] - The company has not experienced any changes in its core technical team or key technical personnel during the reporting period[199] Subsidiaries and Investments - The company established multiple subsidiaries, including Anhui Quanfeng Seed Industry Co., Ltd. with an investment of CNY 1,365.26 million, holding 80% stake[64] - The company acquired a 51% stake in Sichuan Zhufeng Seed Industry Co., Ltd. for ¥994,200, achieving a 100% investment progress[62] - The company has invested CNY 5 million in Sichuan Zhufeng Seed Industry Co., Ltd., which reported total assets of CNY 22.20 million and a net loss of CNY 2.63 million in 2014[71] - The company’s subsidiaries contributed over 10% to the net profit, with significant contributions from nine subsidiaries including Quan Yin Technology and Hua'an Seed Industry[73] Shareholder Structure and Changes - The total number of shares increased from 105,600,000 to 158,400,000, representing a 50% change, which diluted the basic earnings per share[168] - The company does not have a controlling shareholder, with the top five shareholders holding a combined 35.56% of the shares[177] - The largest shareholder, Jia Guilan, held 11.39% of the shares, totaling 18,036,000 shares, with an increase of 6,012,000 shares during the reporting period[174] - The company has a diverse shareholder structure, with no single shareholder able to control the board[178] Compliance and Regulatory Matters - The company did not engage in any asset acquisitions or sales during the reporting period[122][123] - The company has not reported any major changes in its operational strategy or market expansion plans[136] - The company has not experienced any bankruptcy restructuring or non-operating fund occupation by controlling shareholders[120][121]