SHENNONG SEED(SZ:300189)2020-04-27 16:00Financial Performance - The company's operating revenue for 2019 was ¥112,458,427.26, a decrease of 34.58% compared to ¥171,895,373.03 in 2018[15]. - The net profit attributable to shareholders was -¥329,317,069.35, a significant decline from a profit of ¥20,415,280.36 in the previous year, representing a decrease of 1,713.09%[15]. - The net profit excluding non-recurring gains and losses was -¥220,567,536.31, compared to -¥79,638,349.64 in 2018, marking an increase of 176.96% in losses[15]. - The cash flow from operating activities was -¥111,222,322.37, down 122.81% from ¥487,639,456.36 in 2018[15]. - The basic and diluted earnings per share were both -¥0.3216, a decrease of 1,716.08% from ¥0.0199 in 2018[15]. - The total assets at the end of 2019 were ¥1,122,177,083.34, a decrease of 25.06% from ¥1,497,454,654.67 at the end of 2018[15]. - The net assets attributable to shareholders were ¥1,048,481,139.60, down 24.99% from ¥1,397,798,978.22 in 2018[15]. - The weighted average return on equity was -27.15%, a decline of 28.59 percentage points from 1.44% in 2018[15]. - The company reported a consolidated net profit of -338,021,069.24 CNY for the year 2019, with a net profit attributable to the parent company of -329,317,069.35 CNY[116]. - As of December 31, 2019, the company's consolidated undistributed profits amounted to -270,969,308.27 CNY, indicating a negative distributable profit situation[116]. Revenue Breakdown - The company reported a total revenue of ¥29,184,630.02 in Q1, ¥77,623,440.98 in Q2, ¥4,531,404.27 in Q3, and ¥1,118,951.99 in Q4 for the year 2019[18]. - The company's hybrid rice seed sales accounted for CNY 89,911,219.74, which is 79.95% of total revenue, down 23.61% from the previous year[47]. - Total revenue for the agriculture sector was CNY 111,793,337.92, with a year-on-year decrease of 33.92%[50]. - The sales volume increased by 10.56% to 555.40 million kg, while sales revenue decreased by 33.92% due to lower seed prices[51]. Cash Flow and Assets - The net cash flow from operating activities was -¥15,429,369.03 in Q1, -¥26,311,665.69 in Q2, -¥667,974.48 in Q3, and -¥68,813,313.17 in Q4, reflecting ongoing cash outflows[18]. - The company reported a significant increase in expected credit losses under the new financial instrument standards, which contributed to the decline in net profit[43]. - The company reported a net cash flow from investment activities increased by 27,585.09 million yuan, a year-on-year increase of 112.22%, mainly due to the previous period's cash outflow for purchasing financial products exceeding the cash inflow from redemptions[63]. - The total assets decreased from 1,497,545,654.67 yuan at the beginning of the year to 1,122,177,083.34 yuan at the end of the year, reflecting a significant reduction in cash and receivables[69]. - The proportion of cash and cash equivalents to total assets decreased by 3.04 percentage points, primarily due to the lack of significant cash inflows from subsidiaries and large employee severance payments[70]. Research and Development - The company has completed over 70% of its ongoing major R&D project for high-quality rice varieties in Fujian Province[29]. - A total of 15 new rice varieties are currently under development, with several in initial testing and preliminary review stages, focusing on high yield and disease resistance[29]. - Research and development expenses amounted to CNY 5,852,519.99, representing 5.20% of total revenue, a significant decrease from 15.46% in the previous year[58]. - The company aims to enhance its research and development capabilities to shorten the breeding cycle and improve the quality of new varieties[105]. Strategic Initiatives - The company has shifted its business model from a hybrid rice seed supplier to a biotechnology service provider, enhancing its competitive edge in the seed industry[34]. - The company plans to implement a "one-stop grain production supply chain management service" to transform traditional seed industry operations, integrating seed supply, agricultural services, and financial support[96]. - The company is committed to exploring new directions and business models to accelerate project development and enhance its operational transformation[100]. - The company plans to actively explore various channels to increase market share in 2020[51]. Governance and Management - The company appointed Zhongxing Caiguanghua Accounting Firm as its auditor for the 2019 fiscal year, with an audit fee of 980,000 yuan[126]. - The company has established a strong governance framework with independent directors to ensure compliance and strategic oversight[199]. - The company appointed a new management team, including a new General Manager and Financial Director, effective April 15, 2019[195]. - The leadership changes are anticipated to positively impact the company's strategic planning and execution moving forward[197]. Legal and Compliance - The company has received an administrative penalty from the China Securities Regulatory Commission for alleged information disclosure violations[134]. - The company faced a total of 24 lawsuits related to securities false statements, with 16 cases already adjudicated and 8 still under review[136]. - The company has not encountered any changes in the raised funds project during the reporting period[84]. - The company has not faced any major litigation or arbitration matters during the reporting period[128]. Market Environment - The seed industry is experiencing a market environment of oversupply, leading to intensified competition and declining industry profits[88]. - The government has implemented policies to stabilize grain planting areas and seed demand, which is expected to support the long-term sustainable development of the seed industry[90]. - The company anticipates significant opportunities for industry consolidation as smaller, less competitive firms exit the market[91].