SHENNONG TECHNOLOGY(SZ:300189)2022-08-26 16:00Financial Performance - The company's operating revenue for the first half of 2022 was ¥64,498,958.13, a decrease of 12.68% compared to ¥73,861,433.86 in the same period last year[20]. - The net profit attributable to shareholders was -¥19,300,325.40, representing a decline of 39.18% from -¥13,867,177.58 in the previous year[20]. - The net cash flow from operating activities was -¥34,680,477.84, a significant decrease of 812.09% compared to -¥3,802,293.17 in the same period last year[20]. - The basic earnings per share were -¥0.0188, down 39.26% from -¥0.0135 in the previous year[20]. - The company's revenue for the reporting period was ¥64,498,958.13, a decrease of 12.68% compared to ¥73,861,433.86 in the previous year, primarily due to a decline in sales of hybrid rice seeds and agricultural products[46]. - The cost of sales decreased by 18.14% to ¥47,863,596.30 from ¥58,466,667.68, attributed to the drop in sales revenue[46]. - Research and development expenses were ¥5,134,739.01, down 28.91% from ¥7,223,166.40, mainly due to reduced R&D activities in the subsidiary Hunan Shennong Seed Industry[46]. - The gross margin for hybrid rice seeds was 19.96%, down 4.48% year-on-year, while the gross margin for agricultural products was 38.92%, up 29.16% year-on-year[48]. - The company reported a net loss of 5,511,637.63 from Shenzhen Shennong Weigu Supply Chain Co., Ltd.[64]. - Hunan Shennong Dafen Seed Industry Co., Ltd. generated a net profit of 2,484,407.95 during the reporting period[64]. - The company reported a total revenue of approximately 842.37 million, with a net profit of around 17.78 million for the reporting period[65]. - The net cash flow from financing activities increased by 1028.74% to ¥4,371,601.41 from -¥470,704.59, mainly due to increased bank borrowings by the subsidiary Hunan Shennong Seed Industry[46]. Assets and Liabilities - Total assets at the end of the reporting period were ¥1,028,321,400.47, a decrease of 9.84% from ¥1,140,601,046.20 at the end of the previous year[20]. - The net assets attributable to shareholders were ¥852,521,982.56, down 2.21% from ¥871,822,307.96 at the end of the previous year[20]. - The company's cash and cash equivalents decreased to ¥120,817,807.16, representing 11.75% of total assets, down from 19.21% in the previous year[52]. - Inventory decreased to 53,728,592.03, representing 5.22% of total assets, down from 6.03% at year-end, primarily due to a significant reduction in inventory at Hunan Shennong Seed Industry[53]. - Long-term equity investments increased to 231,163,756.58, accounting for 22.48% of total assets, up from 19.83%[53]. - Fixed assets stood at 258,757,678.95, making up 25.16% of total assets, a slight increase from 22.95%[53]. - Short-term borrowings rose to 16,828,136.11, representing 1.64% of total assets, compared to 1.06% previously[53]. - Prepayments increased significantly to 16,365,007.52, which is 1.59% of total assets, up from 0.44%[53]. - Other payables decreased to 13,876,692.98, now 1.35% of total assets, down from 4.94%[53]. - The company's total liabilities decreased from CNY 188,672,234.55 to CNY 100,438,153.87, a decline of about 46.8%[147]. - The company's total liabilities decreased to CNY 120,410,746.77 from CNY 215,230,311.91, a reduction of 44.1%[150]. Research and Development - Ongoing R&D projects include the development of high-quality rice varieties, with 100% completion on certain gene marker projects and 50% completion on others[34]. - The company has successfully signed contracts for the development of corn inbred lines with pest resistance and herbicide tolerance[34]. - The company has a strong focus on R&D, with several new varieties undergoing trials, including "劲单308" and "劲糯108", which are expected to yield high production[37]. - The company aims to enhance its R&D capabilities for superior seed varieties and reduce the development cycle for new products, which currently takes 5-8 years[66]. - The company plans to improve its integrated breeding innovation system and expand collaborations with agricultural research institutions to boost its seed variety reserves and development capabilities[67]. Corporate Governance and Compliance - The company has not made any changes to its registered address or contact information during the reporting period[17]. - The company has strengthened internal control and compliance with laws and regulations to enhance information disclosure quality and market transparency[87]. - The company has not engaged in any violations regarding external guarantees during the reporting period[93]. - The semi-annual financial report has not been audited[94]. - The company confirms that there are no significant doubts regarding its ability to continue as a going concern for the next 12 months[194]. - The financial statements reflect the company's financial position, operating results, and cash flows accurately and completely[195]. Market and Competition Risks - The company faced significant risks impacting future development, which are detailed in the report[3]. - The company acknowledges market competition risks due to low industry concentration and aims to improve its financial situation by increasing R&D investment and marketing efforts[71]. - The company faces risks related to natural disasters affecting seed production, but it is implementing measures to mitigate these risks through standardized production bases and enhanced breeding technology[70]. Shareholder Information - The total number of shares is 1,024,000,000, with 60,950,327 shares (5.95%) under limited sale conditions and 963,049,673 shares (94.05%) under unlimited sale conditions[127]. - The largest shareholder, Cao Oujie, holds 183,666,101 shares, representing 17.94% of total shares, with 60,950,252 shares under limited sale conditions[131]. - The second largest shareholder, Hunan Hongde Asset Management Co., Ltd., holds 46,766,430 shares, representing 4.57% of total shares, with a reduction of 28,141,900 shares during the reporting period[131]. - The company has a total of 86,335 shareholders at the end of the reporting period[131]. - The report indicates that there are no related party transactions among the top 10 shareholders[132]. Legal Matters - The company has ongoing litigation related to a contract dispute, with a judgment requiring the defendant to pay 1,907,200 yuan plus penalties[97]. - The company has initiated a lawsuit to protect its legal rights regarding the dissolution dispute of a subsidiary, with the first-instance judgment rejecting the plaintiff's claims[101]. - The company is involved in other litigation matters, with a total amount of RMB 1.0156 million (¥101.56 million) at stake, which is currently under court mediation[105]. - The company is involved in 12 ongoing legal cases, with 3 concluded, 3 in execution, and 2 under review[106]. Social Responsibility - The company donated 2,500 sets of protective materials to support the frontline medical staff in Sanya during the COVID-19 outbreak in Hainan Province[88]. - The company has undertaken national and provincial-level disaster relief and reserve tasks for conventional early rice and hybrid corn, contributing to national food security[85]. - The company has actively participated in agricultural development initiatives in Southeast Asia, supporting the Belt and Road Initiative[86].