Dunhuang Seed(SH:600354)2017-04-27 16:00Financial Performance - In 2016, the company reported a net profit of -322,133,619.84 CNY, with a net profit attributable to shareholders of -254,038,598.98 CNY[3]. - The company's operating revenue for 2016 was 655,137,590.83 CNY, representing a decrease of 49.76% compared to 1,304,026,666.04 CNY in 2015[20]. - Total assets decreased by 14.06% to 3,031,331,225.56 CNY in 2016 from 3,527,360,525.09 CNY in 2015[20]. - The net assets attributable to shareholders decreased by 21.98% to 895,733,994.98 CNY in 2016 from 1,148,083,911.41 CNY in 2015[20]. - The company did not distribute profits for the reporting period due to significant losses[3]. - The company experienced a cash flow deficit from operating activities amounting to -287,835,390.98 CNY in 2016[20]. - The company’s accumulated undistributed profits at the end of the reporting period were -566,847,171.26 CNY[3]. - In 2016, the company reported a basic earnings per share of -0.4813 CNY, a decrease from 0.0485 CNY in 2015[21]. - The company's total revenue for the fourth quarter was 440,495,990.38 CNY, while the net profit attributable to shareholders was -78,667,421.73 CNY[22]. - The company faced a net loss attributable to shareholders of CNY 255.00 million, primarily due to significant declines in seed sales and inventory pressure[33]. Business Operations - The seed industry accounted for 64.45% of the company's total revenue, while the food industry contributed 25.69%[28]. - The company experienced a significant decline in sales due to the government's policy changes affecting the corn seed market, leading to a decrease in commodity corn prices[29]. - The company has ceased its oilseed processing business and exited the oilseed industry entirely in 2016[28]. - The company has stopped its cotton acquisition and processing business due to a significant decline in local cotton resources[28]. - The seed industry generated revenue of CNY 418.56 million, down 51.91% from CNY 870.30 million year-on-year, with a gross profit margin decline of 12.28 percentage points to 25.80%[41]. - The food industry achieved sales revenue of CNY 169.98 million, a decline of 49.67%, but excluding last year's oil inventory sales impact, revenue showed growth[34]. - The cotton industry reported sales revenue of CNY 60.15 million, a decrease of 46.65%, as the company ceased cotton acquisition and processing operations[34]. - The company sold 40.89 million kilograms of various seeds, a reduction of 21.95 million kilograms compared to the previous year, with corn seed sales down by 20.22 million kilograms[35]. - The average yield per mu for corn seed production increased by 13 kilograms to 382 kilograms, despite a reduction in planting area[35]. Research and Development - Research and development expenses increased by 123.27% to CNY 23.16 million, indicating a focus on innovation despite financial challenges[39]. - The company submitted 46 new corn varieties for approval in 2016, with 32 entering national and provincial testing procedures[56]. - The company established a research institute and multiple standardized breeding test stations, covering 524.8 acres of experimental land[55]. - The number of R&D personnel is 65, representing 4% of the total workforce[54]. - The company is actively seeking partnerships with upstream and downstream enterprises to enhance synergy and improve operational efficiency[33]. Financial Management - The weighted average return on equity was -24.88% in 2016, down from 3.33% in 2015[21]. - Interest expenses decreased by 39.79% to CNY 61,948,629.98, while total financial expenses dropped by 18.54% to CNY 55,166,314.73[53]. - The total amount of guarantees provided by the company, excluding those to subsidiaries, is 69.9 million RMB, which accounts for 7.8% of the company's net assets[114]. - The company provided guarantees totaling 84.9 million RMB to its subsidiaries during the reporting period[114]. - The total amount of entrusted loans issued by the company is 200,000,000.00 RMB, with an annual yield of 3.10% for both loans[121]. - The company reported a total overdue principal and interest amount of 0 RMB, indicating no overdue loans[126]. Corporate Governance - The company has engaged Ruihua Accounting Firm for auditing services, with a remuneration of 620,000 RMB[109]. - The company has not encountered any non-standard audit opinions during the reporting period[108]. - The company has a structured approach to corporate governance, with clear roles and responsibilities for its board and management team[156]. - The board of directors includes experienced professionals with backgrounds in agriculture and finance, ensuring strategic oversight and governance[148]. - The total remuneration for all directors, supervisors, and senior management at the end of the reporting period amounted to 2.9129 million yuan[157]. Market Outlook - The company aims to achieve total revenue of over 3 billion RMB and a net profit of 250 million RMB by 2021, with the seed industry contributing 1.5 billion RMB in revenue and 100 million RMB in net profit[93]. - The company plans to introduce 8-10 new hybrid corn varieties and 10 vegetable seed varieties that respond well to the market by 2021[93]. - The company is focusing on the "Belt and Road" initiative, particularly in Gansu and Xinjiang, to strengthen its seed and specialty food industries[91]. - The company plans to establish five subsidiaries on the New Third Board and participate in five professional trading markets by 2021[93]. - The company is facing market risks due to the cyclical nature of the seed industry and potential fluctuations in raw material prices affecting its food industry[94]. Employee Management - The total number of employees in the parent company and major subsidiaries is 928, with 479 in the parent company and 449 in subsidiaries[160]. - The professional composition includes 212 production personnel, 162 sales personnel, 291 technical personnel, 65 financial personnel, and 198 administrative personnel[160]. - The company has established a performance evaluation and incentive mechanism for directors, supervisors, and senior management, linking income to performance[166]. - The company adheres to national labor laws and adjusts employee salaries based on local market conditions[161]. - The company has conducted various training programs related to financial management, quality systems, and corporate culture[162].