荃银高科(300087) - 2018 Q2 - 季度财报

Financial Performance - Total revenue for the first half of 2018 was CNY 202,240,477.98, a decrease of 0.92% compared to CNY 204,113,457.33 in the same period last year[19]. - Net profit attributable to shareholders was a loss of CNY 15,454,315.25, compared to a loss of CNY 8,558,385.62 in the previous year[19]. - Net cash flow from operating activities was a negative CNY 137,876,022.22, worsening from a negative CNY 106,756,282.38 in the prior year[19]. - Basic and diluted earnings per share were both CNY -0.0366, compared to CNY -0.0203 in the same period last year[19]. - Total assets decreased by 9.22% to CNY 1,441,261,691.58 from CNY 1,587,560,586.50 at the end of the previous year[19]. - The total profit amounted to -23.97 million yuan, an increase in loss of 18.17 million yuan year-on-year[52]. - The net profit attributable to ordinary shareholders was -15.45 million yuan, an increase in loss of 6.90 million yuan compared to the previous year[52]. - Operating revenue for the reporting period was ¥202,240,477.98, a decrease of 0.92% compared to the previous year[64]. - Operating costs increased by 4.98% to ¥123,783,773.13, while sales expenses rose by 7.64% to ¥46,175,045.98[64]. Research and Development - The company maintains a high level of R&D investment, with R&D expenses accounting for 4.77% of revenue in 2017[27]. - Research and development investment for the reporting period was 24.76 million yuan, an increase of 6.18 million yuan, or 33.25% year-on-year[35]. - The company has developed a total of 87 rice varieties, including 33 national approved varieties[44]. - The company has received 7 invention patents and 50 plant variety rights, showcasing its strong research and innovation capabilities[44]. - The company’s core research personnel account for 22.70% of the total workforce, with 153 researchers[42]. - The company has increased its research collaboration with external institutions, enhancing its technology in transgenic corn, which is crucial for maintaining a competitive edge[53]. Market Strategy - The company has a dual sales strategy targeting both domestic and international markets, with domestic sales primarily through distributors[31]. - The company is actively expanding its market presence both domestically and internationally, leveraging the "Belt and Road" initiative[46]. - The company achieved a revenue of 553.87 million CNY from rice seed business in the reporting period, representing a year-on-year growth of 15.08%[57]. - The company exported 2,357 tons of hybrid rice seeds in the first half of 2018, marking a year-on-year increase of 65.21%[60]. - The company has established strategic partnerships with major agricultural firms to provide comprehensive agricultural services, enhancing its market presence[58]. Risk Management - The company faces various risks including market risk and new product development risk, which are detailed in the report[5]. - The company emphasizes the importance of understanding the difference between plans and commitments, urging investors to remain aware of investment risks[5]. - The company has a risk management strategy in place for production, sharing losses from natural disasters among the company, agents, and farmers[30]. - The company faces significant market risks due to increased competition and overproduction in the seed industry, prompting the need for precise marketing strategies and improved seed quality management[113]. Corporate Governance - The company plans not to distribute cash dividends or issue bonus shares[6]. - The half-year financial report has not been audited, which may affect the reliability of the financial data presented[126]. - The company has not engaged in derivative investments or entrusted loans during the reporting period[96][98]. - The company did not conduct any repurchase transactions among the top 10 common shareholders during the reporting period[185]. - The company has not reported any media scrutiny during the reporting period[136]. Subsidiaries and Investments - The company has established multiple subsidiaries, including Anhui Qianyin Agricultural Technology Co., Ltd. with an investment of CNY 510 million, achieving a completion rate of 100.00%[86]. - The company has invested RMB 15.3 million in Jiangxi Qianya Seed Industry Co., Ltd., acquiring a 51% stake[78]. - The total assets of the subsidiary Qianyin Technology reached approximately CNY 100.24 million, with a net profit of CNY 9.83 million[101]. - The subsidiary Wannong Seed Industry reported total assets of approximately CNY 89.64 million and a net profit of approximately CNY 475,370[101]. - The company has a total of 16 controlling subsidiaries and 6 affiliated companies, with 9 subsidiaries showing significant performance changes[102]. Legal Matters - The company is involved in significant litigation matters, although specific details on the amounts and outcomes are not disclosed[128]. - The company is pursuing legal action against Sichuan Longping for an outstanding payment of 333,819.40 yuan related to hybrid rice seed production[131]. - The company has initiated legal proceedings to recover the overdue financial assistance, which has been accepted by the court[171]. - The company is actively seeking to resolve disputes through legal channels to protect its financial interests[131]. Social Responsibility - The company maintained a commitment to social responsibility, engaging in poverty alleviation and charitable activities, which contributed to its positive brand image[62]. - The company donated 20,000 yuan to support poverty alleviation and education initiatives in Shijicun, focusing on assisting 10 impoverished students with scholarships and supplies[164]. - The company plans to provide technical support for vegetable planting in Shijicun and assist in the construction of high-standard farmland for melon and pumpkin seed production[166]. - The company is developing a precise poverty alleviation plan and will continue to promote the "Hundred Enterprises Help Hundred Villages" initiative[163].