WanXiang Doneed (SH:600371)2021-08-20 16:00Financial Performance - The company's operating revenue for the first half of 2021 was ¥120,451,773.31, a decrease of 4.13% compared to the same period last year[15]. - The net profit attributable to shareholders was ¥17,675,035.56, down 49.93% year-on-year[15]. - The net profit after deducting non-recurring gains and losses was ¥14,127,806.71, a decline of 58.27% compared to the previous year[15]. - The company achieved a main business revenue of ¥118,910,749.10, with a main business profit of ¥49,512,272.07 and a net profit of ¥22,577,176.14 during the reporting period[40]. - The company's operating income decreased by 4.13% to ¥120,451,773.31, primarily due to a decline in seed sales prices[32]. - The total comprehensive income for the first half of 2021 was ¥19,932,753.17, down 49.5% from ¥39,449,796.08 in the first half of 2020[91]. - Operating profit for the first half of 2021 was CNY 16,714,008.48, a decline of 57.5% compared to CNY 39,218,990.66 in the first half of 2020[90]. - The net profit for the first half of 2021 was CNY 19,932,753.17, down 49.5% from CNY 39,449,796.08 in the same period last year[90]. Cash Flow and Assets - The net cash flow from operating activities increased by 95.40% to ¥27,219,015.68[15]. - The company's operating cash flow increased significantly by 95.40% to ¥27,219,015.68, attributed to reduced cash payments for goods and services[36]. - Cash and cash equivalents as of June 30, 2021, were RMB 350,015,431.98, slightly down from RMB 359,964,516.30 at the end of 2020, indicating a decrease of about 2.7%[83]. - The total assets at the end of the reporting period were ¥687,096,188.42, a decrease of 7.93% from the end of the previous year[15]. - The total cash outflow from operating activities in the first half of 2021 was ¥54,689,067.85, compared to ¥71,737,746.44 in the first half of 2020, indicating a reduction of 23.8%[97]. - The total liabilities decreased from RMB 168,897,461.36 at the end of 2020 to RMB 126,039,664.14, reflecting a reduction of about 25.5%[85]. - The company's inventory decreased from RMB 151,911,560.02 at the end of 2020 to RMB 96,911,807.27, representing a decline of about 36.2%[84]. Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 45,811[73]. - The largest shareholder, Wanxiang San Nong Group Co., Ltd., held 142,650,135 shares, representing 48.76% of the total shares[75]. - The company has no changes in controlling shareholders or actual controllers during the reporting period[79]. - There were no changes in the company’s share capital structure during the reporting period[72]. Research and Development - The company continues to focus on the research, production, and sales of hybrid corn seeds, including varieties like "Jingke 968" and "Zhengdan 958"[21]. - The company plans to enhance its R&D capabilities through a dual strategy of independent and collaborative development, aiming to reduce market risks associated with new varieties[45]. - Research and development expenses for the first half of 2021 were CNY 4,527,148.98, an increase of 10.4% compared to CNY 4,102,806.84 in the first half of 2020[90]. Market Strategy and Risks - The company is collaborating with international seed companies to enhance its variety reserves and optimize transgenic varieties[28]. - The company is facing risks related to policy changes, natural disasters, and uncertainties in product research and development[42][43]. - The company faces significant seasonal risks in seed production and sales, requiring advance planning for production and sales, which can lead to discrepancies in actual performance[44]. - A premium strategy will be implemented to improve seed quality and brand effect through differentiated marketing and enhanced technical services[46]. - The company plans to continue expanding its market presence and investing in new technologies[98]. Management and Governance - The company has undergone significant management changes, including the election of new directors and a general manager, which may impact strategic direction[52]. - The financial report was approved by the board of directors on August 20, 2021[129]. - The company is committed to maintaining good relationships with financial institutions to ensure adequate funding for operations[48]. Compliance and Environmental Responsibility - There are no reported environmental penalties or significant environmental disclosures, indicating compliance with environmental regulations[56]. - The company adheres to the accounting standards set by the Ministry of Finance, ensuring accurate financial reporting[133]. Financial Liabilities and Equity - The company's total equity attributable to shareholders was reported at $545,599,822, with a decrease of $29,257,800.00 from the previous period[106]. - The total equity at the end of the reporting period was 577,981,618 RMB, an increase from 525,061,172 RMB[114]. - The company’s retained earnings decreased by 29,257,800 RMB during the period[117]. - The total capital contributions from owners remained stable at 292,578,000 RMB[118]. Accounting Policies - The company recognizes direct expenses incurred during business combinations in the current period's profit and loss upon occurrence[139]. - The company assesses whether multiple transactions constitute a "package deal" for accounting purposes, impacting how they are recorded[147]. - The company measures inventory at the lower of cost and net realizable value, recognizing impairment losses when necessary[168]. - The company applies the equity method for long-term equity investments where it has joint control or significant influence, while using the cost method for investments where it has control[179].