Long Ping High-Tech(000998)2020-04-28 16:00Research and Development - The company reported a significant focus on research and development of new crop varieties, which is essential for maintaining competitiveness in the seed industry[5]. - The company is committed to continuous innovation in breeding technology to enhance the efficiency of new variety development[5]. - The company focuses on modern seed industry development, primarily engaging in the R&D, breeding, promotion, and service of high-tech crop seeds, with hybrid rice, corn, and vegetable seeds as core business segments[31]. - The R&D team consists of 546 dedicated personnel, accounting for 18.29% of the total workforce, enhancing the company's innovation capabilities[35]. - The company achieved a breeding production of 14,248.50 tons in 2019, representing a growth of 4.66% compared to 2018[54]. - The company applied for 180 new plant variety rights in 2019, with 22 granted, bringing the total to 301[50]. - The company has made significant progress in establishing a commercial breeding system for hybrid rice and corn, improving the scale and efficiency of innovation processes[37]. - The company has established a leading commercial breeding system in China, with a total breeding research and testing area of nearly 10,000 acres, and has completed over 1,097 tests for various crop varieties in 2019[43]. Financial Performance - The company's operating revenue for 2019 was CNY 3,579,717,393.27, representing a decrease of 12.58% compared to 2018[18]. - The net profit attributable to shareholders for 2019 was CNY 791,002,502.22, a significant decline of 137.71% from the previous year[18]. - The net profit after deducting non-recurring gains and losses was CNY 325,628,675.38, down 200.87% year-on-year[18]. - The net cash flow from operating activities was negative at CNY -14,403,400.18, an increase of 731.66% in cash outflow compared to 2018[18]. - Total assets at the end of 2019 were CNY 15,495,392,127.64, reflecting a slight increase of 0.86% from the end of 2018[19]. - The net assets attributable to shareholders decreased to CNY 6,176,787,332.36, down 9.87% from the previous year[19]. - Basic earnings per share for 2019 were CNY 0.63, a decrease of 136.51% compared to 2018[18]. - The diluted earnings per share also stood at CNY 0.63, reflecting the same percentage decline[18]. - The weighted average return on equity was 13.29%, down 17.91% from the previous year[18]. Market and Competition - The company is actively monitoring market competition and adjusting strategies to mitigate risks associated with new product launches[5]. - The company recognizes the seasonal nature of the seed industry, which requires careful planning of production and sales[5]. - The company has established a comprehensive network for the import and export of agricultural products and technologies, facilitating market expansion[13]. - The company aims to enhance its competitive edge by accelerating the introduction of new high-yield varieties and improving farmers' planting benefits[43]. - The company has implemented a strict market control policy, leading to improved market order and resource optimization[48]. Corporate Governance and Compliance - The company has a strong commitment to ensuring the accuracy and completeness of its financial reporting, as stated by its management[2]. - The company discloses its financial information through designated media, ensuring transparency and compliance with regulatory requirements[12]. - The company has established a comprehensive internal control management system to enhance governance and risk management[157]. - The company has a commitment to disclose related transactions in accordance with laws and regulations, ensuring transparency and fairness[116]. - The company has pledged to avoid any improper benefits through related transactions, holding accountable any losses incurred due to violations of this commitment[116]. Strategic Initiatives - The company plans to not distribute cash dividends or issue bonus shares, indicating a focus on reinvestment[5]. - The company is focusing on optimizing resource allocation and enhancing its core seed business[107]. - The company aims to collaborate with large financial institutions and agricultural companies to enhance financial services in the agricultural sector[97]. - The company is entering a new technology cycle with the opening of the transgenic market, which is expected to expand market opportunities for leading enterprises[106]. - The company has established several new subsidiaries, contributing a profit of 130,900 and incurring losses of 2,358,700 from other new ventures[105]. Social Responsibility and Community Engagement - The company has invested over 2 million RMB in poverty alleviation projects, helping more than 700 villagers through hybrid rice seed production initiatives[160]. - A total of 720 individuals received vocational skills training, with an investment of 2.058 million RMB in training programs[161]. - The company has established long-term partnerships with impoverished villages, providing tailored support based on local agricultural conditions[156]. - The company has trained nearly 10,000 agricultural professionals from over 100 countries through its international training programs, enhancing its global cooperation and seed trade[154]. - The company has implemented a strict seed production quality control system to ensure high-quality seeds for farmers, contributing to poverty alleviation and increased market value for seed producers[152]. Future Outlook - The company anticipates a recovery in the seed industry driven by rising grain prices and government policies aimed at stabilizing grain production[106]. - The company has set a future outlook with a revenue target of 1.5 billion yuan for the next fiscal year, indicating a projected growth rate of 25%[192]. - The company is focusing on expanding its market presence and enhancing its strategic development through new appointments in the decision-making committee[187]. - The company is actively pursuing new strategies for growth and development in the agricultural high-tech sector[186]. - The company has a strategic focus on expanding its agricultural technology and investment management capabilities, as evidenced by the roles of its board members in various agricultural and financial institutions[189].