荃银高科(300087) - 2017 Q1 - 季度财报

Important Notice The company's board of directors, supervisory board, and senior management guarantee the truthfulness, accuracy, and completeness of this quarterly report Important Notice 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] - 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] Company Profile This section provides an overview of the company's key financial performance, significant risks, and shareholder information Key Accounting Data and Financial Indicators 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 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] - No new significant risks that could adversely affect operations in the next reporting period emerged during the reporting period[10] Total Shareholders and Top Ten Shareholders at Period End 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] 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 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 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] 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] 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][21] 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 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] - 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] - The primary drivers for business revenue growth were the company's increased market efforts and the successful promotion of rice and corn varieties[22] - Progress and Impact of Key R&D Projects:[23] - 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] - Changes in the Company's Top 5 Suppliers and Customers During the Reporting Period:[23][24] 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][25] - 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] - The company strengthened operational management, optimized marketing task allocation and incentive measures, and vigorously conducted marketing activities to expand market share and influence[25] - 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] - Significant Risk Factors Adversely Affecting the Company's Future Operations:[25] - 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] Progress and Solutions for Significant Matters 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][27] - 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] - 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] - Initiating Corn Cooperative Breeding:[27] - 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] Overdue Unfulfilled Commitments 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 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][33][34] - 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] - 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] Execution of Cash Dividend Policy During the Reporting Period 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] - Concurrently, the company proposes a 3-for-10 share bonus from capital reserves to all shareholders, totaling 95,946,000 yuan[36] - The aforementioned profit distribution plan requires approval by the company's 2016 Annual General Meeting of Shareholders[36] Warning and Explanation of Potential Loss or Significant Change in Cumulative Net Profit from Year-Beginning to Next Period-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 The company had no illegal external guarantees during the reporting period Non-Operating Fund Occupation by Controlling Shareholder and Related Parties The company had no non-operating fund occupation by controlling shareholders or related parties during the reporting period Financial Statements This section presents the company's consolidated and parent company balance sheets, income statements, and cash flow statements Consolidated Balance Sheet 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 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 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 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 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 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 The company's 2017 first-quarter report is unaudited - The company's first-quarter report is unaudited[65]