WINALL(SZ:300087)2021-08-25 16:00Financial Performance - The company's operating revenue for the first half of 2021 was ¥677,675,002.99, representing a 20.66% increase compared to ¥561,624,439.20 in the same period last year[26]. - The net profit attributable to shareholders of the listed company was -¥9,466,849.41, a decrease of 194.05% from ¥10,066,201.86 in the previous year[26]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was -¥11,917,329.04, which is a 69.67% decline compared to -¥7,023,993.25 in the same period last year[26]. - The net cash flow from operating activities improved to -¥161,054,455.78, a 56.45% increase from -¥369,811,846.24 in the previous year[26]. - The total assets at the end of the reporting period were ¥2,457,385,559.40, a decrease of 0.61% from ¥2,472,447,760.58 at the end of the previous year[26]. - The net assets attributable to shareholders of the listed company decreased by 4.23% to ¥646,709,983.39 from ¥675,300,719.30 at the end of the previous year[26]. - The basic and diluted earnings per share were both -¥0.02, reflecting a 200.00% decline from ¥0.02 in the same period last year[26]. - The weighted average return on net assets was 1.25%, down from 2.08% in the previous year[26]. Research and Development - The company maintained a high level of R&D investment, with amounts of CNY 62.66 million, CNY 55.44 million, and CNY 56.17 million for the years 2018, 2019, and 2020 respectively[36]. - The company has established a breeding system with a focus on independent research and development, collaborating with domestic research institutions and universities[36]. - The company has formed a "National Rice Commercial Molecular Breeding Technology Innovation Alliance" to enhance research and development capabilities in crop breeding[36]. - The company has built stable research and breeding bases in multiple locations, including Hefei and Sanya, to support its R&D efforts[36]. - The company has been recognized as a "National Enterprise Technology Center" and has established various research facilities, including a postdoctoral research station and an engineering technology research center[36]. - The company’s breeding process involves determining breeding directions based on market demand and selecting high-quality parent materials[36]. - The company’s research and development strategy relies on its own capabilities while collaborating with external partners to enhance its breeding programs[43]. - The company has developed a strong research and innovation capability, with 186 research personnel, accounting for 18.9% of total employees, and has secured 15 invention patents and 96 plant variety rights[51]. - The company has established various innovation platforms, including a "National Enterprise Technology Center" and a "Key Laboratory for Hybrid Rice Variety Creation," enhancing its research capabilities[51]. - The company has a diverse portfolio of seed varieties, with a total of 259 rice varieties (125 nationally approved), 67 corn varieties (10 nationally approved), and 8 wheat varieties, showcasing its strong R&D output[51]. Market and Sales - The increase in operating revenue was primarily due to enhanced marketing efforts and increased seed sales volume[47]. - The company’s order agriculture business scale has expanded, contributing to revenue growth[47]. - The company sold 15.1143 million kilograms of various crop seeds, a year-on-year increase of 27.95%, with rice seed sales volume increasing by 13.59% and sales revenue increasing by 25.92%[62]. - The company introduced 29 new provincial-approved varieties, including 17 rice, 6 corn, and 6 wheat varieties during the reporting period[60]. - The company is focusing on a "company + large households" marketing model to adapt to the increasing number of large-scale farmers and cooperatives[42]. - The company emphasizes strict quality control during the procurement of agricultural products to meet market standards[46]. - The company is actively expanding its market presence both domestically and internationally, with significant achievements in seed exports and overseas agricultural technology development[53]. - The company has been involved in foreign aid projects in countries like Angola and Sierra Leone, leveraging international opportunities to enhance its competitive edge[56]. Risks and Challenges - The company faces risks including intensified market competition and challenges in new variety research and promotion[6]. - The decrease in net profit was mainly due to the amortization of the new employee stock ownership plan amounting to 27.4275 million yuan; excluding this factor, net profit increased by 78.43% year-on-year[47]. - The company faces intensified market competition due to the implementation of new seed laws and rapid introduction of new varieties, leading to significant inventory pressure and potential market share loss if it fails to innovate and expand[103]. - Seed production is highly sensitive to climate conditions, with recent climate changes increasing the risk of natural disasters affecting seed yield and quality, prompting the company to enhance standardized production practices[105]. - The company is committed to increasing research investment and innovation capabilities to mitigate risks associated with potential changes in national agricultural policies that could impact seed development and sales[106]. Legal and Compliance - The company is currently involved in a lawsuit where it is required to pay 16,423,752,000 VND (approximately 4,856,503 RMB) in compensation due to alleged seed quality issues[138]. - The company has ongoing litigation regarding overdue rental payments totaling 1,134,306.30 RMB from various tenants[138]. - The company has been involved in multiple legal disputes, reflecting challenges in its operational environment and potential impacts on cash flow[138]. - The company is actively managing its legal risks and disputes, which may impact its operational focus and financial performance[141]. - The company is pursuing a claim for 500 million CNY against Anhui Ansheng Seed Co. for infringement of plant variety rights, with the case currently pending in court[149]. - The company has engaged in related party transactions, including seed procurement from Syngenta Group, amounting to 5.56 million CNY, which is 0.02% of the total related transactions[155]. Corporate Governance and Social Responsibility - The company has not faced any administrative penalties related to environmental issues during the reporting period[121]. - The company actively engaged in social responsibility through the Anhui Zhang Haiyin Seed Industry Foundation, awarding 23 seed industry elites and providing scholarships to 10 outstanding students[122]. - The "Suiyue Action" initiative supported 1,503 farmers in five provinces with donations of seeds and fertilizers, contributing to rural revitalization efforts[122]. - The company has not reported any significant changes in agricultural tax incentives, government subsidies, or industrial policies affecting the company during the reporting period[180]. - The company is committed to maintaining its market position despite ongoing legal challenges, indicating resilience in its business strategy[138].