Financial Performance - For the fiscal year ended June 30, 2023, the company sold approximately 175,519 metric tons of fertilizer products, a decrease of 38.9% from 287,160 metric tons in the previous year[250]. - Jinong's revenue for the fiscal year ended June 30, 2023, was $40,247,303, down 25.9% from $54,339,228 in 2022[259]. - Gufeng's revenue for the fiscal year ended June 30, 2023, was $74,028,542, a decline of 28.0% from $102,755,286 in 2022[259]. - The company's net sales for the fiscal year ended June 30, 2023, totaled $124,140,355, representing a decrease of 26.3% from $168,450,904 in 2022[259]. - Gross profit for the fiscal year ended June 30, 2023, was $21,918,293, down 25.0% from $29,206,282 in 2022[259]. - The company reported a net loss of $13,281,985 for the fiscal year ended June 30, 2023, compared to a net loss of $98,364,332 in 2022, reflecting an improvement of 86.5%[259]. - Total net sales for the fiscal year ended June 30, 2023 were $124,140,355, a decrease of $44,310,549 or 26.3% from $168,450,904 for the fiscal year ended June 30, 2022[262]. - Jinong's net sales decreased by $14,091,925, or 25.9%, to $40,247,303 from $54,339,228 for the fiscal year ended June 30, 2022, with a sales volume of 31,637 tons, a decrease of 28,170 tons or 47.1% compared to 59,807 tons for fiscal year 2022[262]. - Gufeng's net sales were $74,028,542, a decrease of $28,726,744, or 28.0% from $102,755,286 for the fiscal year ended June 30, 2022, with a sales volume of 143,882 tons, a decrease of 83,471 tons or 36.7% compared to 227,353 tons for fiscal year 2022[263]. - Total gross profit for the fiscal year ended June 30, 2023 decreased by $7,287,989 to $21,918,293, with a gross profit margin of 17.7% compared to 17.3% for the fiscal year ended June 30, 2022[265]. Expenses and Losses - General and administrative expenses were $27,197,200, or 21.9% of net sales for the fiscal year ended June 30, 2023, a decrease of $74,612,033, or 73.3% from $101,809,233, or 60.4% of net sales for the fiscal year ended June 30, 2022[269]. - Net loss for the fiscal year ended June 30, 2023 was $(13,281,985), a decrease of loss by $85,082,347, or 86.5%, compared to $(98,364,332) for the fiscal year ended June 30, 2022[271]. Cash Flow and Financial Position - Cash and cash equivalents as of June 30, 2023 were $71,142,188, an increase of $13,371,885, or 23.1%, from $57,770,303 as of June 30, 2022[278]. - Net cash used in operating activities was $990,122 for the fiscal year ended June 30, 2023, a decrease of $18,958,094, or 95.0% from cash used in operating activities of $19,948,216 for the fiscal year ended June 30, 2022[277]. - Net cash provided by financing activities decreased by 63.7% to $19,771,581 for the fiscal year ended June 30, 2023, compared to $54,454,275 in 2022[281]. Accounts and Inventory - Accounts receivable decreased by 42.8% to $16,455,734 as of June 30, 2023, down from $28,792,891 in 2022, primarily due to a 49.6% decrease in Jinong's accounts receivable[283]. - Inventories increased by 10.1% to $46,455,131 as of June 30, 2023, compared to $42,198,186 in 2022, driven by an 11.4% increase in Gufeng's inventory[287]. - Advances to suppliers decreased by 30.8% to $14,332,715 as of June 30, 2023, down from $20,711,891 in 2022[289]. - Accounts payable increased by 25.7% to $2,100,449 as of June 30, 2023, compared to $1,670,655 in 2022, primarily due to Antaeus's accounts payable[290]. - Unearned revenue decreased by 31.3% to $5,489,781 as of June 30, 2023, down from $7,994,669 in 2022, mainly due to a 67.4% decrease in Jinong's unearned revenue[290]. - Total loans payable increased to $6,283,680 as of June 30, 2023, compared to $4,031,100 in 2022, with short-term loans rising to $5,346,640[282]. - Allowance for doubtful accounts decreased by 5.7% to $54,708,486 as of June 30, 2023, from $58,000,266 in 2022, while the allowance as a percentage of accounts receivable increased to 76.9%[283]. Product Development and Market Focus - As of June 30, 2023, the company had developed and sold a total of 406 different fertilizer products, with 70 from Jinong and 336 from Gufeng[252]. - The company eliminated 15 obsolete products and added 1 new distributor for Jinong during the three months ended June 30, 2023[257]. - The provinces of Hebei, Liaoning, Inner Mongolia, Heilongjiang, and Jilin accounted for approximately 66.0% of the company's manufactured fertilizer revenue for the year ended June 30, 2023[254]. - The company intends to use net proceeds from securities offerings to acquire new businesses and upgrade production lines, indicating a focus on growth and expansion[276]. Digital Asset Activities - The company expanded its digital asset activities by establishing Antaeus Tech Inc. in Texas for bitcoin mining in March 2023[256]. Other Considerations - The company reported an accumulated other comprehensive loss of $27.0 million as of June 30, 2023, with the RMB depreciating by 7.6% against the U.S. dollar during the fiscal year[300]. - The company has not entered any hedging transactions to reduce exposure to foreign exchange or interest rate risks[301][302]. - The Company is actively monitoring the COVID-19 pandemic situation and its potential impact on operational and financial performance, which remains uncertain[306]. - Future impacts may include adverse effects on demand for the Company's products and services, supply chain disruptions, and challenges in executing strategic plans[307]. - The pandemic could heighten existing risks related to profitability and cost structure[307].
CGA(CGA) - 2023 Q4 - Annual Report