SHENNONG TECHNOLOGY(SZ:300189)2024-04-25 15:26Financial Performance - The company reported a net profit of -36,022,358.67 yuan for 2023, a reduction in loss of 44.24% compared to the previous year[3]. - Operating revenue for 2023 was 166,725,377.15 yuan, representing a decrease of 12.51% from 2022[20]. - The cash flow from operating activities showed a significant improvement, with a net amount of 13,761,083.81 yuan, up 138.47% from the previous year[20]. - The basic earnings per share for 2023 was -0.0352 yuan, an improvement of 44.22% compared to -0.0631 yuan in 2022[20]. - Total assets at the end of 2023 were 1,001,434,092.88 yuan, a decrease of 3.34% from the end of 2022[20]. - The company plans not to distribute cash dividends or issue bonus shares for the year[4]. - The company did not incur asset impairment losses in the current period, contrasting with the previous year's loss of 26,650,900 yuan due to regulatory actions[3]. - The company’s net assets attributable to shareholders decreased by 4.46% to 771,198,554.14 yuan at the end of 2023[20]. - The company’s weighted average return on net assets improved to -4.56%, up 3.14 percentage points from -7.70% in 2022[20]. - The company achieved operating revenue of ¥166,725,377.15, a year-on-year decrease of 12.51%, primarily due to changes in rice seed sales varieties[43]. - Net profit was -¥32,697,815.64, a year-on-year reduction in losses of 48.11%, with the net profit attributable to the parent company at -¥36,022,358.67, a reduction in losses of 44.24%[43]. - The total assets at the end of the reporting period amounted to ¥1,001,434,092.88, a decrease of 3.34% compared to the previous year[43]. - The total liabilities at the end of the reporting period were ¥145,213,714.22, a decrease of 1.32% compared to the previous year[43]. - The company reported a consolidated net profit of -32,697,815.64 CNY for the year 2023, with a net profit attributable to the parent company of -36,022,358.67 CNY[169]. - As of December 31, 2023, the company's consolidated undistributed profits amounted to -548,410,935.68 CNY, and the parent company's undistributed profits were -221,588,542.23 CNY[169]. - Due to negative distributable profits, the company will not distribute profits to shareholders for the year 2023, nor will it increase capital from the capital reserve[169]. Business Operations and Market Position - The company’s core business and competitive strengths have not experienced significant adverse changes, aligning with industry trends[3]. - In Q1 2023, the company reported a revenue of ¥39,227,142.88, which increased to ¥62,391,871.22 in Q3, showing a significant growth[22]. - The net profit attributable to shareholders was negative in all quarters, with a loss of ¥24,384,193.42 in Q4 2023[22]. - The net cash flow from operating activities was positive in Q2, Q3, and Q4, with Q4 showing ¥6,879,049.21[22]. - The company received government subsidies amounting to ¥4,336,299.89 in 2023, which positively impacted its financial performance[26]. - The company is recognized as a key enterprise in the seed industry, holding multiple certifications and honors, including being a national key leading enterprise in agricultural industrialization[29]. - The implementation of the new seed law and supportive government policies in 2023 is expected to enhance market competitiveness and provide a favorable operating environment for the seed industry[30]. - The company has been actively involved in innovation and technology development to address challenges in the seed industry, with increased policy support for technological breakthroughs[31]. - The company’s oilseed variety "Qingyou 3" was included in the 2023 national crop variety promotion directory, indicating its market acceptance and potential for growth[29]. - The company has achieved recognition as a national intellectual property advantage enterprise, reflecting its commitment to innovation and quality[29]. - The company’s subsidiary was recognized as a national leading enterprise in 2024, further solidifying its position in the industry[29]. - In 2023, the company achieved a 61.27% year-on-year increase in oilseed sales revenue, driven by the "Qingyou" series of high-oil content rapeseed varieties[39]. - The company expanded its rapeseed planting area to over 800,000 acres, covering key regions such as Chongqing, Sichuan, Hubei, and Hunan, with a significant presence in the Yangtze River basin[39]. - The company introduced new rice varieties, including "Qiangyou 252" and "Qiangyou 266," which received approval in Chongqing and Guizhou, respectively, enhancing its market presence[38]. - The company established a breeding area of 9,790 acres in Bangladesh for high-quality rice varieties, producing 1.1 million kilograms of certified seeds[38]. - The company faced challenges in corn seed production due to extreme weather conditions, impacting expected yields[41]. - The company conducted six demonstration events for corn varieties, attracting nearly 1,000 participants, to strengthen market competitiveness[41]. - The company is focusing on the commercialization of its core research varieties, enhancing brand influence through a comprehensive service system[40]. - The company is actively promoting the development of deep-sea aquaculture and establishing a monitoring statistical system for food sources[34]. - The company is committed to advancing agricultural technology and innovation, aligning with national policies to enhance food security and agricultural productivity[35]. - The company is leveraging online and offline platforms to provide comprehensive technical services for rapeseed cultivation, improving brand recognition[41]. Research and Development - The company is currently developing 40 new crop varieties, including 24 rice and 16 corn varieties, with a focus on high yield and disease resistance[53]. - The "神农优 552" rice variety has entered production trials, characterized by high quality and disease resistance[53]. - The "劲单 9 号" corn variety is undergoing regional trials and production tests, noted for its high yield[53]. - The company has completed regional trials for the "Naafco Hybrid Dhan-3" rice variety in Bangladesh, awaiting approval[53]. - The company has authorized two new plant variety rights, including the corn variety "Y672" and "xzy8"[54]. - The "黑甜糯 568" corn variety is set to complete trials in the first half of 2024, known for its sweet and glutinous characteristics[54]. - The "新中玉 222" corn variety is expected to complete trials in 2024, recognized for its high yield and resistance[54]. - The company has submitted materials for approval for several new rice varieties, including "先两优耘占" and "广泰优 25", both noted for high yield and quality[53]. - The company is focusing on expanding its product portfolio with high-quality and disease-resistant varieties to enhance market competitiveness[53]. - The company is actively pursuing market expansion in regions such as the Yangtze River Basin and Guizhou Province, targeting diverse agricultural needs[54]. - The company has implemented a local standard for "Rice Flooded Direct Seeding Cultivation Technology," which is significant for promoting local rice industry development and ensuring food security[179]. - The company has established six demonstration areas of over 100 acres and held six on-site observation meetings to promote agricultural technology development[179]. - The company has initiated various agricultural projects aimed at promoting energy-efficient and sustainable farming practices, including the development of new rice varieties[175]. - The hybrid rice variety "Shen 9 You 28" developed by the company has low cadmium absorption characteristics, suitable for various planting methods, promoting reduced use of fertilizers and pesticides[175]. Corporate Governance and Management - The company held its annual general meeting with an investor participation rate of 18.98% on May 18, 2023, where several key reports and proposals were approved[133]. - The board of directors consists of 5 members, including 2 independent directors, ensuring compliance with legal and regulatory requirements[122]. - The company has established an independent financial department with its own accounting system and bank accounts, ensuring financial independence from the controlling shareholder[132]. - The company has a transparent and fair performance evaluation and incentive mechanism for senior management, with a dedicated remuneration and assessment committee[124]. - The company strictly adheres to information disclosure regulations, ensuring timely and accurate communication with investors[126]. - The company has no related party transactions or financial dependencies on the controlling shareholder, maintaining operational independence[121]. - The company has a complete and independent business operation capability, with clear separation from the controlling shareholder's assets[131]. - The company has implemented a robust internal control and governance structure, complying with relevant laws and regulations[127]. - The company actively engages with stakeholders to balance interests and promote sustainable development[130]. - The company has established various governance documents, with the latest updates disclosed in April 2024[128]. - The company has undergone changes in its board of directors, with new appointments and resignations, including the resignation of the general manager in April 2023[136]. - The company plans to adjust the number of board members and the composition of its specialized committees, with proposals approved in recent meetings[138]. - The company has proposed to appoint a new general manager and vice general manager, with announcements made in March and April 2024[139]. - The company has established various governance policies, including related party transaction decision-making and fundraising management systems[134]. - The company has a governance structure in place for independent directors and management personnel, ensuring compliance with regulations[135]. - The company is focusing on enhancing its corporate governance through the implementation of cumulative voting and management of shareholding changes[134]. - The company has proposed to authorize the board to handle stock issuance matters through simplified procedures, indicating potential capital raising activities[134]. - The company has experienced changes in its supervisory board, with new candidates nominated for non-employee representative supervisors[139]. - The company is actively managing its executive team, with ongoing adjustments to ensure effective leadership and governance[138]. - The company appointed Huang Qijun as General Manager on April 24, 2023, and later as Chairman and Vice Chairman on May 18 and August 24, 2023, respectively[140]. - Cao Oujie was appointed as General Manager on March 12, 2024, after previously serving in various roles since 2007[141]. - The company has seen significant management changes, with multiple executives resigning or being appointed throughout 2023 and early 2024, indicating a potential shift in strategic direction[140][146]. - The company’s financial leadership includes Zheng Kang as Vice General Manager and CFO, who has extensive experience in financial management since 2007[141][146]. - The management team includes independent directors with diverse backgrounds, enhancing governance and strategic oversight[143][144]. - The company is undergoing a restructuring of its board and management, which may impact future operational strategies and market positioning[140][146]. - The company has a history of appointing experienced professionals in key roles, which may contribute to its stability and growth potential in the market[141][146]. - The ongoing changes in management and board composition suggest a proactive approach to adapting to market conditions and enhancing corporate governance[140][146]. Social Responsibility and Community Engagement - The company has donated 1 million yuan to the Taohua Yuan Foundation to support marine conservation projects, contributing to ecological protection efforts[181]. - The company has actively engaged in community support activities, including educational assistance for impoverished students in Hainan Province[180]. - The company has promoted the integration of agriculture and tourism by developing "Colorful" rapeseed flower fields, fostering local agricultural and tourism innovation[184]. - The company established a 10,000-acre rapeseed breeding base in Bichiao Village, Chongqing, involving over 3,000 farming households and creating 1,000 job opportunities for low-income individuals, generating over 100,000 yuan in direct economic income for impoverished households[186]. - The company provided training to over 500 farmers on advanced agricultural techniques, including rice compound planting and late sowing of rapeseed, enhancing their planting skills[186]. - The company raised over 1 million yuan for high-standard environmental remediation around the Dajiang base, promoting local ecological conservation and rural tourism[187]. - The company’s commitment to rural revitalization includes funding the renovation of sanitary toilets for surrounding farmers, improving local satisfaction and happiness[187]. Legal and Compliance Matters - The company has not faced any administrative penalties related to environmental issues during the reporting period[175]. - The company has not faced any bankruptcy reorganization matters during the reporting period[194]. - There are no significant litigation or arbitration matters reported during the period[195]. - The company is involved in 9 ongoing legal cases, with 3 cases concluded and 3 cases currently in trial[199]. - The total amount involved in the ongoing legal cases is approximately 2,179.81 million CNY[199]. - The company has not faced any penalties or rectification measures during the reporting period[200].