SHENNONG SEED(SZ:300189)2020-01-06 16:00Financial Performance - The company's operating revenue for 2015 was CNY 310,509,442.07, representing a 2.95% increase compared to CNY 301,602,338.43 in 2014[16]. - The net profit attributable to shareholders for 2015 was a loss of CNY 20,358,985.17, an improvement of 77.38% from a loss of CNY 90,004,908.49 in 2014[16]. - The cash flow from operating activities increased significantly to CNY 47,994,890.53, up 815.50% from CNY 5,242,463.77 in 2014[16]. - The total assets at the end of 2015 reached CNY 2,281,506,675.48, a 44.05% increase from CNY 1,583,828,602.68 at the end of 2014[16]. - The total equity attributable to shareholders increased by 14.13% to CNY 1,420,290,496.03 from CNY 1,244,410,988.23 in 2014[16]. - The basic earnings per share for 2015 was CNY -0.0199, a 90.94% improvement from CNY -0.2197 in 2014[16]. - The diluted earnings per share also stood at CNY -0.0199, reflecting the same percentage change as the basic earnings per share[16]. - The weighted average return on equity improved by 8.54 percentage points to -1.60% in 2015 from -6.94% in 2014[16]. - The total share capital at the end of 2015 was 102,400,000 shares, a 150% increase from 40,960,000 shares in 2014[16]. Revenue and Profitability - In 2015, the company's total revenue was approximately 310 million yuan, with a significant drop in the third quarter to 44.15 million yuan, representing a decline of over 53% compared to the second quarter[18]. - The net profit attributable to shareholders was negative in the first and fourth quarters, with a loss of approximately 10.95 million yuan and 23.35 million yuan respectively, indicating volatility in profitability[18]. - The company reported a net cash flow from operating activities of -31.53 million yuan in the first quarter, followed by positive cash flow in the second and third quarters, highlighting fluctuations in operational efficiency[18]. - The operating profit for the same period was CNY -38.28 million, a reduction in losses by 66.94% compared to the previous year[31]. - The net profit attributable to shareholders was CNY -20.36 million, reflecting a decrease in losses by 77.38% year-on-year[31]. Investments and Assets - The company achieved a 48.29% year-on-year increase in construction in progress, amounting to 61.91 million yuan, primarily due to investments in the Hainan high-tech seed industry base[24]. - Cash and cash equivalents increased by 64.97% year-on-year, reaching approximately 209.56 million yuan, mainly due to capital injections received by a subsidiary[24]. - Accounts receivable rose by 46.57% year-on-year, totaling approximately 28.87 million yuan, attributed to unsettled sales payments[24]. - The company invested ¥99,993,742.93 during the reporting period, representing a 34.53% increase compared to ¥74,327,999.47 in the same period last year[57]. - The company has ongoing non-equity investments totaling ¥76,844,877.00, with a cumulative investment of ¥174,724,655.44[61]. Research and Development - The company has made significant progress in developing its proprietary hybrid rice SPT technology, with 9 invention patent applications submitted, aiming for large-scale commercialization by 2018[28]. - The company has applied for 9 invention patents related to its SPT technology, with 6 patents already entering substantive examination[31]. - The company has developed a total of 202 new crop varieties, including 125 hybrid rice varieties, 32 pepper varieties, 20 corn varieties, 8 cotton varieties, 9 melon varieties, 7 rapeseed varieties, and 1 tomato variety[48]. - Research and development investment for 2015 amounted to ¥41,784,117.11, representing 13.46% of operating revenue, a significant decrease from 41.48% in 2014[49]. - The number of R&D personnel increased to 48 in 2015, accounting for 12.21% of the total workforce, up from 11.35% in 2014[49]. Market Strategy and Business Transition - The company is transitioning its main business focus towards biological breeding technology services and "one-stop grain production supply chain management services," moving away from traditional seed sales[23]. - The area signed for the "one-stop grain production supply chain management services" project reached 3.3 million mu, indicating substantial market expansion efforts[23]. - The company is actively pursuing a major asset restructuring, with plans to resubmit its application to the regulatory authority after addressing feedback[33]. - The company is focusing on integrating breeding, propagation, and promotion to strengthen its position in the seed industry[79]. - The company plans to gradually exit the traditional crop seed business over the next two to three years, focusing on the "one-stop grain production supply chain management service" project[87]. Profit Distribution and Shareholder Returns - The company has a profit distribution policy that prioritizes cash dividends, aiming for a minimum of 10% of distributable profits to be distributed in cash annually[98][99]. - The company plans to distribute profits through cash, stock, or a combination of both, with a minimum of 20% of the distributable profits allocated for cash dividends annually from 2015 to 2017[102]. - In 2015, the company distributed a cash dividend of 0.02 yuan per 10 shares, totaling 2,048,000 yuan, which represents 100% of the profit distribution amount[104]. - The company's net profit attributable to shareholders in 2015 was -27,679,761.07 yuan, with a year-end undistributed profit of 67,700,953.26 yuan[105]. - The company did not distribute any profits in 2014 and had a cash dividend distribution of 12,800,000 yuan in 2013, which was 33.32% of the net profit[108]. Governance and Compliance - The company has maintained complete independence from its controlling shareholder in terms of business, personnel, assets, organization, and finance[195]. - No significant discrepancies exist between the company's governance status and the regulatory requirements set by the China Securities Regulatory Commission[191]. - The company has ensured that all shareholders, especially minority shareholders, have equal rights and opportunities to participate in decision-making processes[192]. - The board of directors consists of 9 members, including 3 independent directors, ensuring compliance with legal and regulatory requirements[193]. - The company has a structured approach to employee training, focusing on skills development and regulatory compliance[187]. Legal Matters and Risks - The company is involved in multiple lawsuits, including a compensation case where it was ordered to pay 133,190.80 RMB[126]. - Another lawsuit resulted in a judgment requiring the company to return 244,582.80 RMB and pay damages of 358,371 RMB[127]. - The company faces risks from natural disasters affecting seed production, but it is taking measures to mitigate these risks through strategic site selection and increased seed reserves[90][91]. - The company is addressing market competition risks by adjusting its strategic planning and expanding revenue sources to improve financial health and reduce operational risks[92].