WanXiang Doneed (SH:600371)2014-04-23 16:00Financial Performance - The company reported a net loss of ¥35,393,397.30 for the year 2013, with a statutory surplus reserve of ¥3,086,266.52 deducted from the beginning retained earnings of ¥207,242,155.47, resulting in a cumulative retained earnings of ¥100,562,491.65[5]. - In 2013, the company reported a revenue of CNY 413,015,082.51, a decrease of 37.48% compared to CNY 660,618,661.21 in 2012[24]. - The net profit attributable to shareholders was a loss of CNY 35,393,397.30, representing a decline of 142.62% from a profit of CNY 83,037,232.74 in 2012[24]. - The basic earnings per share for 2013 was -CNY 0.17, a decrease of 134.69% from CNY 0.49 in 2012[24]. - The weighted average return on equity decreased to -9.09% in 2013 from 20.35% in 2012, indicating a significant decline in profitability[24]. - The company's operating revenue for 2013 was ¥413,015,082.51, a decrease of 37.48% compared to ¥660,618,661.21 in the previous year[32]. - The company faced a significant inventory issue in the corn seed market, with effective inventory reaching 1 billion kilograms against a demand of only 1.15 billion kilograms, leading to a surplus of 1.21 billion kilograms[27]. - The company reported a net cash outflow from investment activities of -¥25,043,217.69, a 57.24% improvement from -¥58,566,667.71 in the previous year, due to reduced project investments[40]. - The company achieved an investment income of CNY 39,667,451.20, down from CNY 74,044,880.00 in the previous year[126]. - The company reported a net cash outflow from financing activities of CNY 34,100,000.00, compared to a larger outflow of CNY 51,150,000.00 in the previous year[127]. Business Operations - The company has transitioned its main business focus to corn seed research, production, and sales, as well as compound fertilizer sales[17]. - The company established Beijing Wanxiang Denong Fertilizer Co., Ltd. in 2008, marking its entry into the compound fertilizer business[17]. - The company holds a 92.78% stake in Beijing Denong Seed Industry Co., Ltd., having increased its investment from 41% to 75% in previous years[17]. - The company focused on promoting new corn varieties to reduce reliance on the declining Zhengdan 958 variety, which has seen a stable planting area of around 70 million mu over the past three years[28]. - The company aims to improve its market position through differentiated sales strategies and enhanced seed quality amid a competitive market environment[29]. - The company plans to enhance seed quality through the upgrade of production lines and the implementation of advanced management practices[57]. - The company will focus on "digesting inventory, developing new products, enhancing services, and revitalizing assets" to stabilize performance in 2014[57]. - The company aims to increase the market share of new seed varieties, reducing reliance on traditional varieties like Zhengdan 958[52]. Financial Position - The company’s total assets at the end of 2013 were CNY 1,013,126,064.67, down 1.80% from CNY 1,031,710,488.78 in 2012[24]. - The company’s cash and cash equivalents increased to ¥76,280,244.68 from ¥34,946,773.29, representing a growth of approximately 118.5% year-over-year[109]. - Accounts receivable decreased to ¥3,303,384.79 from ¥5,511,074.13, a decline of about 40.1%[109]. - Inventory decreased to ¥526,419,207.48 from ¥566,886,706.07, reflecting a reduction of approximately 7.1%[109]. - Long-term equity investments increased to ¥123,904,460.74 from ¥118,995,870.71, showing a growth of about 4.9%[109]. - Fixed assets increased to ¥218,430,362.97 from ¥209,309,419.87, indicating a rise of approximately 4.4%[109]. - The total current assets decreased to ¥618,360,571.91 from ¥639,330,319.03, a decline of about 3.3%[109]. - Total liabilities increased from CNY 582,743,195.55 to CNY 625,871,680.01, an increase of about 7.4%[110]. - Owner's equity attributable to shareholders decreased from CNY 424,078,586.45 to CNY 354,585,189.15, a drop of approximately 16.4%[111]. Shareholder Information - The company has a total share capital of 204,600,000 shares after a stock distribution of 34,100,000 shares based on the 2012 profit distribution plan[73]. - The largest shareholder, Wanxiang San Nong Group Co., Ltd., holds 104,755,339 shares, representing 51.20% of the total shares[76]. - The number of shareholders as of the end of the reporting period is 26,876, with the top ten shareholders holding a total of 51.20% of the shares[76]. - The company’s parent, Wanxiang San Nong Group, holds 51.2% of the shares as of December 31, 2013[143]. Governance and Compliance - The company has maintained compliance with the governance standards set by the China Securities Regulatory Commission[97]. - The current auditor is Zhonghuan Haihua Accounting Firm, with an audit fee of 55,000 RMB and an audit tenure of 13 years[70]. - There were no administrative penalties or public reprimands from the China Securities Regulatory Commission during the reporting period[69]. - The company has not reported any significant accounting errors or omissions during the reporting period[104]. - The financial statements are prepared based on individual financial statements of subsidiaries, adjusted for long-term equity investments and internal transactions[153]. Research and Development - Research and development expenses totaled ¥24,914,987.45, representing 6.03% of operating revenue and a 219% increase year-over-year[39]. - The company will continue to strengthen its R&D capabilities while tracking new varieties obtained through cooperation and licensing[61]. - The company plans to continue expanding its market presence and investing in new technologies to drive future growth[134]. Market Challenges - The company faces significant competition from foreign seed companies and a persistent oversupply in the corn seed market, impacting revenue negatively[33]. - The company faces challenges from increasing competition and rising production costs, which may impact profit levels[55]. - The company faces market risks due to oversupply in the seed industry and increasing competition from foreign and domestic companies[60]. - Financial risks include seasonal cash flow volatility and high financing requirements during peak seed purchasing periods[60].