SDDSC(SZ:002041)2022-08-28 16:00Financial Performance - The company reported a significant increase in revenue, achieving a total of 1.2 billion RMB for the first half of 2022, representing a year-on-year growth of 15%[25]. - The company's operating revenue for the reporting period was ¥439,696,556.88, representing a 6.12% increase compared to ¥414,329,284.09 in the same period last year[32]. - Net profit attributable to shareholders was ¥112,151,756.82, up 6.67% from ¥105,138,776.79 year-on-year[32]. - The company achieved a revenue of CNY 439.70 million in the reporting period, representing a year-on-year growth of 6.12%[52]. - The net profit attributable to shareholders was CNY 112.15 million, an increase of 6.67% compared to the previous year[52]. - The company reported a basic earnings per share of ¥0.1274, reflecting a 6.61% increase from ¥0.1195 in the same period last year[32]. - The company reported a decrease in contract liabilities to ¥197,392,516.33, which is 4.81% of total liabilities, down from 11.66% in the previous year[62]. - The net profit for the period was 126,179,611.18, down from 131,937,908.28, reflecting a decrease of about 4.4%[190]. Cost Management - The gross profit margin improved to 35%, up from 32% in the same period last year, indicating better cost management and pricing strategies[25]. - Total operating costs for the first half of 2022 amounted to CNY 361,330,522.47, compared to CNY 345,249,268.86 in the first half of 2021, indicating an increase of about 4.7%[181]. - The company's sales expenses decreased by 20.94% to CNY 24.85 million, while management expenses increased by 10.46% to CNY 49.43 million[55]. Research and Development - The company plans to invest 200 million RMB in R&D for new seed varieties and technologies, aiming to enhance its competitive edge in the market[25]. - The company applied for 25 plant variety rights in the first half of 2022, including 8 hybrid varieties and 17 inbred lines, with a total of 156 authorized plant variety rights as of the reporting period[48]. - The company obtained 4 authorized patents in the first half of 2022, all of which were invention patents, bringing the total to 20 effective patents, including 13 invention patents and 7 utility model patents[48]. - The company's R&D investment amounted to CNY 22.81 million, a decrease of 22.81% year-on-year[55]. - Research and development expenses amounted to 10,725,840.77, up from 7,499,372.23, representing a significant increase of approximately 42.9%[187]. Market Expansion - User data shows a 20% increase in the adoption of new seed products among farmers, reflecting growing market acceptance and demand[25]. - Market expansion efforts include entering two new provinces, which are expected to contribute an additional 100 million RMB in revenue by the end of the year[25]. - The company is positioned to benefit from new opportunities and challenges in the seed industry due to recent regulatory changes and increased market demand for high-quality agricultural products[41]. Cash Flow and Assets - The net cash flow from operating activities was -¥241,828,642.95, a significant decline of 727.06% compared to -¥29,239,559.74 in the same period last year[32]. - Total assets at the end of the reporting period were ¥4,107,695,826.77, down 2.44% from ¥4,210,225,406.34 at the end of the previous year[32]. - The company's cash and cash equivalents decreased by CNY 57.23 million, a decline of 124.11% year-on-year[55]. - The total cash outflow from operating activities increased significantly to 563,650,106.16 CNY in the first half of 2022, compared to 276,241,424.19 CNY in the first half of 2021, indicating a rise of about 104.0%[193]. Shareholder Information - The company does not plan to distribute cash dividends or issue new shares from capital reserves for the half-year period[96]. - The largest shareholder, Laizhou Agricultural Science Institute, holds 53.21% of the total ordinary shares, amounting to 468,223,255 shares[141]. - The second largest shareholder, Li Denghai, owns 7.33% of the shares, totaling 64,512,765 shares[141]. - The top ten shareholders include various investment funds, with the largest fund holding 9,243,635 shares, representing 1.05%[145]. Operational Challenges - The company is facing challenges from high inventory levels in the corn seed sector, which could impact pricing strategies and sales performance[25]. - The company has established a stable breeding base in Hainan and its headquarters, demonstrating strong R&D and innovation capabilities[44]. - The company operates a "company + farmer" production model, ensuring seed quality through contracts with entrusted seed producers[47]. Corporate Governance - The annual shareholders' meeting had a participation rate of 61.15%, reflecting shareholder engagement in corporate governance[93]. - The company has not engaged in any major related party transactions during the reporting period[113]. - The company has no significant environmental penalties or issues reported during the reporting period[101].