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敦煌种业(600354) - 2020 Q2 - 季度财报
Dunhuang SeedDunhuang Seed(SH:600354)2021-04-28 16:00

Financial Performance - The company's operating revenue for the first half of 2020 was approximately CNY 411.39 million, a decrease of 9.73% compared to CNY 455.72 million in the same period last year[19]. - The net profit attributable to shareholders of the listed company was a loss of CNY 34.19 million, an improvement from a loss of CNY 81.73 million in the previous year[19]. - The net cash flow from operating activities was negative CNY 92.54 million, compared to negative CNY 35.29 million in the same period last year[19]. - The total assets at the end of the reporting period were approximately CNY 1.85 billion, a decrease of 5.79% from CNY 1.96 billion at the end of the previous year[20]. - The net assets attributable to shareholders of the listed company were approximately CNY 496.49 million, down 6.44% from CNY 530.68 million at the end of the previous year[20]. - The basic earnings per share for the first half of 2020 was -CNY 0.0648, an improvement from -CNY 0.1548 in the same period last year[21]. - The weighted average return on net assets was -6.66%, an improvement from -12.42% in the previous year[21]. - The company reported a significant loss of 104.54% in net profit compared to the previous year, with a total revenue of 6,878 million[47]. - The company reported a net loss of CNY 50,015,741.19 for the first half of 2020, compared to a net loss of CNY 91,999,713.98 in the first half of 2019[98]. - The total comprehensive income for the first half of 2020 was a loss of CNY 43,886,499.07, compared to a loss of CNY 102,862,941.01 in the first half of 2019[101]. Revenue and Costs - The company's seed industry revenue increased by 74.96% compared to the same period last year, contributing 28.92% to total revenue[26]. - Total operating revenue for the reporting period was approximately ¥411.39 million, a decrease of 9.73% from ¥455.72 million in the previous year[33]. - Operating costs decreased by 19.89% to ¥343.11 million from ¥428.29 million year-on-year[33]. - The food and trade sector's revenue declined compared to the previous year, attributed to intensified competition and the impact of the pandemic[31]. Assets and Liabilities - Financial assets measured at fair value decreased by 45.09% to ¥17,045,587.80, primarily due to the sale of equity instruments during the reporting period[35]. - Accounts receivable increased by 6.13% to ¥207,807,644.16, mainly due to slower sales returns[35]. - Prepayments rose by 43.00% to ¥149,143,546.09, attributed to increased advance payments during the reporting period[35]. - Construction in progress increased by 41.42% to ¥104,453,167.91, primarily due to prepayment expenditures[37]. - Deferred income tax assets increased by 69.35% to ¥8,476,029.30, mainly due to the company's recognition of impairment losses[37]. - Accounts payable decreased by 41.85% to ¥119,901,613.89, mainly due to reduced procurement activities[38]. - The total liabilities of the company were not explicitly stated, but the current liabilities included accounts payable of RMB 119,901,613.89, down from RMB 206,185,357.03, indicating a decrease of approximately 41.8%[92]. Research and Development - Research and development expenses decreased by 9.28% to ¥2.81 million, due to delays in some R&D activities[33]. - Research and development expenses for the first half of 2020 were CNY 2,808,929.70, slightly down from CNY 3,096,280.50 in the same period of 2019[98]. - Research and development expenses increased to CNY 2,165,382.50 in the first half of 2020, up from CNY 1,525,497.62 in the first half of 2019, reflecting a growth of 42.0%[104]. Market Strategy and Competition - The company is focusing on developing proprietary seed varieties to enhance market competitiveness[31]. - The company is expanding its market presence in high-end consumer areas, particularly in the Yangtze River Delta and Pearl River Delta regions[26]. - The company is actively adjusting its product development direction to focus on regionally advantageous varieties[31]. - The company is facing intense market competition in the seed industry, which poses a significant challenge for seed sales[47]. - The food trade sector is heavily impacted by market demand fluctuations and the ongoing effects of the COVID-19 pandemic in major markets like Europe and the United States[47]. Financial Management and Risks - The company has a large amount of idle assets and significant seed inventory, which poses a financial risk[48]. - The company will implement measures to recover accounts receivable and reduce inventory levels to alleviate operational pressure[48]. - The company has ongoing significant litigation matters, including a lawsuit against Jilin Ping'an Seed Industry Co., Ltd. with a claim amount of RMB 22,496,516.76, and another against Urumqi Land Port International Trade Co., Ltd. for RMB 41,584,721.27, both of which have not yet gone to trial[55][56]. - The company has reached a settlement in a lawsuit with Shanghai Shangrong Supply Chain Management Co., Ltd., with a net profit impact of RMB -3.9573 million, and a remaining amount of RMB 10 million to be paid in installments[58]. Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 49,158[80]. - The largest shareholder, Jiuquan Modern Agriculture (Holding Group) Co., Ltd., held 68,170,168 shares, accounting for 12.92% of the total shares[82]. - Jiangsu Rongzhuo Investment Co., Ltd. held 55,000,000 shares, representing 10.42% of the total shares, with 20,610,000 shares pledged[82]. Poverty Alleviation and Community Engagement - The company aims for a 10% increase in per capita net income for poverty alleviation targets compared to the previous year[64]. - A total of 8,014.57 million was invested in poverty alleviation projects, helping 36 registered poor individuals to escape poverty[69]. - The company has implemented 10 or more practical assistance projects to address the production and living difficulties of the local population[66]. - The company has conducted 2 visits to assist farmers and promote poverty alleviation measures[67]. Environmental and Compliance - The company has strengthened its environmental management responsibilities, ensuring compliance with national and local environmental standards[75]. - The company has undergone changes in accounting policies effective from January 1, 2020, in accordance with national regulations[136]. - The company’s financial statements are prepared based on the assumption of going concern[135]. Taxation - The company is subject to a corporate income tax rate of 25%[145]. - The company has received tax exemptions for agricultural projects, including new crop variety breeding and cotton processing, resulting in a full exemption from corporate income tax for 2020[150]. - The company’s subsidiary, Gansu Dunhuang Seed Industry Co., Ltd., has been granted a 15% reduced corporate income tax rate from January 1, 2015, to December 31, 2020, due to its involvement in encouraged industries in the western region[155]. Accounts Receivable and Bad Debt Provisions - The total accounts receivable balance is CNY 433,895,673.14, with a total bad debt provision of CNY 224,335,134.98, resulting in a provision rate of approximately 51.7%[171]. - The company’s bad debt provision methodology is based on expected credit losses, with no single item provision applied[167]. - The total accounts receivable at the end of the period is ¥467,122,000.00, with a bad debt provision of ¥257,561,500.00, resulting in a provision ratio of 55%[167].