Revenue and Sales Performance - For the six months ended December 31, 2023, total fertilizer sales decreased to approximately 52,426 metric tons, down 18.5% from 64,350 metric tons in the same period of 2022[124]. - Jinong's revenue for the three months ended December 31, 2023, was $6,811,640, a decrease of 30.8% compared to $9,842,749 in the same period of 2022[131]. - Gufeng's revenue for the three months ended December 31, 2023, was $8,209,157, down 30.7% from $11,849,719 in the same period of 2022[131]. - Total net sales for the three months ended December 31, 2023 were $17,800,114, a decrease of $6,739,093 or 27.5% from $24,539,207 for the same period in 2022[133]. - Jinong's net sales decreased by $3,031,109 or 30.8% to $6,811,640, with a sales volume of approximately 6,694 metric tons, down 9.5% from 7,400 metric tons in the previous year[133]. - Gufeng's net sales were $8,209,157, a decrease of $3,640,562 or 30.7%, with sales volume dropping to approximately 16,869 metric tons, down 27.9% from 23,394 metric tons[134]. - Total net sales for the six months ended December 31, 2023 were $40,197,976, a decrease of $11,938,556 or 22.9% from $52,136,532 for the same period in 2022[150]. - Jinong's net sales decreased by $5,890,353 or 26.8% to $16,100,398, with a sales volume of 14,748 tons compared to 16,785 tons in the previous year[150]. - Gufeng's net sales were $18,630,431, a decrease of $5,798,110 or 23.7%, with a sales volume of 37,678 tons compared to 47,565 tons in the previous year[151]. Profitability and Loss - The gross profit for the three months ended December 31, 2023, was $3,328,487, a decrease of 26.3% from $4,514,417 in the same period of 2022[131]. - The net loss for the three months ended December 31, 2023, was $5,370,003, an increase of 49.3% compared to a net loss of $3,596,545 in the same period of 2022[131]. - Total gross profit for the six months ended December 31, 2023 decreased by $1,720,885 or 17.7% to $7,978,341, with a gross profit margin of 19.8%[153]. - Net loss for the six months ended December 31, 2023 was $(7,154,196), an increase of loss by $3,029,536 or 73.4% compared to $(4,124,660) in the previous year[161]. - Comprehensive loss for the three months ended December 31, 2023 was $(3,285,173), a decrease of $5,672,756 or 63.3% from $(8,957,929) in the same period of 2022[148]. Expenses - Selling expenses were $1,770,860, or 9.9% of net sales, an increase from $1,658,654 or 6.8% of net sales in the previous year[140]. - General and administrative expenses were $6,947,810, or 39% of net sales, an increase of $412,409 or 6.3% from $6,535,402 or 26.6% of net sales in the same period of 2022[141]. - General and administrative expenses increased to $11,504,417 or 28.6% of net sales, up from $9,820,517 or 18.8% in the previous year[156]. - Jinong's general and administrative expenses decreased by $1,286,878 or 45.6% to $1,533,184 compared to $2,820,062 in the previous year[158]. Cash Flow and Financial Position - Cash and cash equivalents as of December 31, 2023 were $70,402,736, a decrease of $739,452 or 1.0% from $71,142,188 as of June 30, 2023[166]. - Net cash used in operating activities was $(2,066,674), a decrease of $737,173 or 26.3% from $(2,803,847) in the previous year[171]. - Net cash used in investing activities for the six months ended December 31, 2023 was $(1,607,163), a decrease of $2,196,885 compared to cash provided by investing activities of $589,722 for the same period in 2022[172]. - Net cash used in financing activities for the six months ended December 31, 2023 was $1,382,404, a decrease of 93.0% compared to $19,872,445 net cash provided by financing activities for the same period in 2022[173]. Accounts and Inventory Management - Accounts receivable increased by $4,533,103, or 27.5%, reaching $20,988,837 as of December 31, 2023, compared to $16,455,734 as of June 30, 2023[175]. - Allowance for doubtful accounts decreased by $4,601,409, or 8.4%, to $50,107,077 as of December 31, 2023, with the allowance as a percentage of accounts receivable at 70.5%[175]. - Inventories decreased by $6,900,644, or 14.9%, to $39,554,487 as of December 31, 2023, primarily due to a decrease in Gufeng's inventory[177]. - Advances to suppliers increased by $2,633,644, or 18.4%, to $16,966,359 as of December 31, 2023, compared to $14,332,715 as of June 30, 2023[178]. - Accounts payable decreased by $516,794, or 24.6%, to $1,583,655 as of December 31, 2023, compared to $2,100,449 as of June 30, 2023[179]. - Customer deposits decreased by $82,301, or 1.5%, to $5,407,480 as of December 31, 2023, with Jinong's unearned revenue increasing by $91,085, or 7.9%[179]. Other Financial Information - The company launched one new fertilizer product during the three months ended December 31, 2023, while eliminating 72 unqualified distributors[129]. - The company incurred no income tax expenses for Jinong and Gufeng for the three months ended December 31, 2023[146]. - As of December 31, 2023, total short-term loans payable was $7,653,040, an increase from $5,346,640 as of June 30, 2023[174]. - The accumulated other comprehensive loss was $23 million as of December 31, 2023, reflecting exposure to foreign exchange risk due to fluctuations in the RMB against the U.S. dollar[191].
CGA(CGA) - 2024 Q2 - Quarterly Report