WINALL(SZ:300087)2020-08-26 16:00Financial Performance - The company's operating revenue for the first half of 2020 was CNY 561,624,439.20, representing a 161.35% increase compared to CNY 214,895,456.02 in the same period last year[23]. - The net profit attributable to shareholders of the listed company was CNY 10,066,201.86, a significant turnaround from a loss of CNY 4,221,806.87 in the previous year, marking a 338.43% increase[23]. - Basic earnings per share increased to CNY 0.02 from a loss of CNY -0.01, reflecting a 300.00% improvement[23]. - The company reported a decrease in net profit after deducting non-recurring gains and losses to CNY -7,023,993.25, an improvement of 57.08% from CNY -16,364,224.40 in the previous year[23]. - The weighted average return on net assets was 2.08%, a recovery from -0.53% in the same period last year, indicating improved profitability[23]. - The company achieved a revenue of 561.62 million yuan, representing a year-on-year growth of 161.35%[47]. - The net profit attributable to shareholders was 10.07 million yuan, marking a turnaround from loss to profit compared to the previous year[47]. - The increase in seed sales and order grain business revenue contributed to the growth in gross profit[47]. - The company received increased government subsidies compared to the previous year, further supporting its financial performance[47]. Assets and Liabilities - Total assets at the end of the reporting period were CNY 2,033,665,761.81, up 17.57% from CNY 1,729,688,942.68 at the end of the previous year[23]. - The net assets attributable to shareholders of the listed company were CNY 485,343,740.26, a slight increase of 0.79% from CNY 481,529,122.97 at the end of the previous year[23]. - The company reported a significant increase in equity assets, with a balance of ¥2,068,946.04, up by ¥1,721,825.46 compared to the beginning of the period, primarily due to capital increase in its subsidiary Guangdong Jingu Qianyuan Company[52]. - Cash and cash equivalents at the end of the reporting period amounted to ¥314,506,635.06, representing 15.47% of total assets[81]. - Accounts receivable increased to ¥258,302,896.90, accounting for 12.70% of total assets, attributed to the growth in order grain business[81]. - Short-term borrowings rose significantly to ¥630,000,000.00, making up 30.98% of total liabilities, due to increased working capital loans[81]. Research and Development - The company has maintained a high level of R&D investment, with R&D expenses accounting for 4.77%, 6.88%, and 4.81% of revenue from 2017 to 2019[33]. - The company focuses on the research and development of high-quality seeds for major crops, including hybrid rice, corn, and wheat, with sales covering key agricultural regions in China and overseas markets[32]. - The breeding cycle for new varieties typically takes 8-10 years, but can be shortened to 3-4 years using molecular breeding techniques[37]. - The company has established a national innovation alliance for rice molecular breeding, recognized as a benchmark alliance by the Ministry of Agriculture and Rural Affairs[33]. - The company has developed a total of 169 rice varieties, including 74 national approved varieties, and 50 corn varieties, with 5 national approved[60]. - The company has received 11 invention patents and 64 plant variety rights, showcasing its strong research and innovation capabilities[60]. - The company has established multiple innovation platforms, including a "National Enterprise Technology Center" and an "Anhui Provincial Engineering Research Center" to enhance its R&D capabilities[59]. - The company has formed strategic partnerships with leading agricultural research institutions to enhance its breeding technology and product development[60]. Market Strategy and Operations - The company actively explores order agriculture business to enhance its market presence and agricultural development[32]. - The company’s breeding program is driven by market demand, focusing on high-yield and stress-resistant parent lines[34]. - The company adopted a "company + base + farmers" model for seed production, ensuring quality through a structured process[38]. - The sales model includes a direct supply channel to large agricultural operators, enhancing service-oriented marketing[42]. - The company is exploring order agriculture to integrate resources and promote brand grain production, enhancing market competitiveness[43]. - The company is positioned to benefit from the ongoing structural reforms in agriculture, focusing on quality improvement and faster variety updates in seed production[51]. - The company is expanding its market presence in Southeast Asia, targeting a 25% market share by the end of 2021[182]. Risks and Challenges - The company faces risks including intensified market competition and challenges in new variety research and promotion[6]. - Risks in the production process include natural conditions affecting seed quality and yield, which are shared among the company, seed producers, and farmers[38]. - The company plans to mitigate market fluctuation risks by collaborating with large, reputable enterprises and ensuring contract compliance[46]. - The company is exposed to risks related to new variety R&D, including long cycles and high costs, with uncertainties in market acceptance and potential natural disasters affecting performance[108]. - The company aims to strengthen standardized seed production bases and improve production management to mitigate risks from climate change and pest outbreaks[108]. - The company is at risk from potential changes in national agricultural policies that could impact seed R&D, production, and sales[108]. Corporate Governance and Shareholder Matters - The company declared a cash dividend of 0.5 yuan per 10 shares, totaling 20,609,791.75 yuan (after tax) for 412,195,835 shares[117]. - The total distributable profit for the period was 159,487,271.64 yuan, with the cash dividend representing 100% of the profit distribution[117]. - The company did not issue any bonus shares or conduct capital reserve transfers to increase share capital during the reporting period[117]. - The company held three temporary shareholder meetings and one annual shareholder meeting, with participation rates of 38.97%, 17.43%, 40.13%, and 48.91% respectively[114]. - There were no major litigation or arbitration matters during the reporting period[123]. - The company has not undergone any bankruptcy reorganization during the reporting period[122]. - The semi-annual financial report was not audited[121]. Social Responsibility and Environmental Initiatives - The company actively engaged in social responsibility initiatives, donating over CNY 1 million to support pandemic relief and poverty alleviation efforts[73]. - The company emphasized environmental protection and does not belong to the key pollutant discharge units as per environmental protection department announcements[166]. - The company has implemented measures to reduce pollution from dust during seed selection processes[168]. - The company participated in the "Suiyue" targeted poverty alleviation initiative, donating over RMB 1 million worth of seeds, fertilizers, and funds to 1,810 registered impoverished households across seven provinces[170]. - The company provided RMB 2 million in scholarships and support to 10 impoverished students during the Dragon Boat Festival[171]. - The company plans to continue its targeted poverty alleviation efforts, integrating national poverty alleviation strategies with its own development strategies[172]. Related Transactions and Financial Agreements - The company signed a three-year financial service agreement with Sinochem Group Finance Co., Ltd., with a maximum amount involved not exceeding RMB 3,010 million[158]. - As of the reporting period, the company's deposit balance with the financial company was RMB 1,981,178.79, and the loan balance was RMB 430,000,000[158]. - The company signed a related party transaction for the procurement of rice seeds with a total transaction amount of RMB 2,809,000[186]. - The company approved financial support of up to RMB 80 million to its subsidiary for grain and crop seed operations, with a borrowing rate 1% above the bank's benchmark rate[186]. - The company used its own funds of RMB 140.08 million to acquire 40% equity of its subsidiary, making it a wholly-owned subsidiary[186]. - The company acquired 46% equity of its subsidiary for RMB 161.46 million, resulting in it becoming a wholly-owned subsidiary[186].