Sales Performance - For the six months ended December 31, 2022, the company sold approximately 64,350 metric tons of fertilizer products, a decrease of 49.8% compared to 128,276 metric tons for the same period in 2021[166]. - Jinong sold approximately 16,785 metric tons of fertilizer products for the six months ended December 31, 2022, down 45% from 30,498 metric tons in the same period of 2021[166]. - Gufeng's sales for the same period were approximately 47,565 metric tons, a decrease of 51.4% from 97,778 metric tons in the prior year[166]. - For the three months ended December 31, 2022, the company sold approximately 30,794 tons of fertilizer products, compared to 74,278 metric tons for the same period in 2021, representing a decline of 58.5%[165]. Revenue and Profitability - The company's fertilizer business generated approximately 89.0% and 92.1% of total revenues for the six months ended December 31, 2022 and 2021, respectively[160]. - For the three months ended December 31, 2022, total net sales decreased by $14,819,929 or 37.7% to $24,539,207 compared to $39,359,136 for the same period in 2021[186]. - Jinong's net sales decreased by $5,123,770 or 34.2% to $9,842,749, with a sales volume drop of 51.5% to approximately 7,400 metric tons[186][187]. - Gufeng's net sales decreased by $9,723,695 or 45.1% to $11,849,719, with a sales volume drop of 60.4% to approximately 23,394 metric tons[187]. - Total gross profit for the six months ended December 31, 2022 decreased by $3,650,033 or 27.3% to $9,699,226 compared to $13,349,259 in the same period of 2021[204]. Expenses and Losses - Total operating expenses decreased by $21,779,404 or 72.7% to $8,194,056 for the three months ended December 31, 2022[186]. - General and administrative expenses for the three months ended December 31, 2022 were $6,535,402, a decrease of $20,471,197 or 75.8% from $27,006,599 in the same period of 2021[194]. - Net loss for the three months ended December 31, 2022 was $(3,596,545), a decrease in loss of $28,386,391 or 88.8% compared to $(31,982,936) for the same period in 2021[198]. - Net loss for the six months ended December 31, 2022, was $(4,124,660), a decrease of $42,935,484, or 91.2%, compared to $(47,060,144) in 2021[211]. Cash Flow and Financial Position - Net cash used in operating activities was $(2,803,848) for the six months ended December 31, 2022, an increase of $4,444,383, or 270.9%, from cash provided by operating activities of $1,640,536 in 2021[221]. - Cash and cash equivalents increased by $16,348,846, or 28.3%, to $74,119,148 as of December 31, 2022, from $57,770,303 as of June 30, 2022[217]. - Net cash provided by financing activities was $19,872,445 for the six months ended December 31, 2022, a 100% increase compared to $0 in 2021, primarily due to proceeds from common stock sales[223]. Market and Economic Conditions - The COVID-19 pandemic has created significant economic uncertainty, potentially impacting demand for the company's products and services[249]. - Inflationary pressures have increased operating costs, adversely affecting gross margins and administrative expenses[248]. - The company continues to monitor the COVID-19 situation and its potential impacts on operations and financial performance[250]. Strategic Developments - The company entered into strategic acquisition agreements with various agricultural companies, with total cash payments for acquisitions amounting to RMB 37 million and principal of notes for acquisitions totaling RMB 51 million[171]. - The company is developing an online platform to connect its physical distribution network, indicating a strategic move towards e-commerce in the agricultural sector[179].
CGA(CGA) - 2023 Q2 - Quarterly Report