SDDSC(SZ:002041) Xin Lang Cai Jing·2025-08-27 15:23Core Viewpoint - The corn seed industry is facing supply-demand imbalance and intense competition, leading to significant revenue declines for multiple companies, including Donghai Seed Industry, which reported its first-ever half-year net profit loss since its listing [1][2]. Company Summary - Donghai Seed Industry's revenue for the first half of 2025 was 369 million yuan, a year-on-year decrease of 9.41%, with a net profit attributable to shareholders of 35.11 million yuan, down 33.42% [1][2]. - The company's net profit after excluding non-recurring gains and losses was -432.61 thousand yuan, marking a shift from profit to loss for the first time since its listing [2]. - The decline in performance is attributed to lower corn prices, insufficient market confidence, and a supply surplus, alongside challenges from diseases and market preferences for dense planting varieties [2][3]. - Donghai Seed Industry primarily engages in hybrid corn seed business, with corn seed revenue accounting for approximately 90% of total revenue, focusing on varieties like "Donghai" and "Xianyu" [2]. Industry Summary - The corn seed industry is experiencing a widespread downturn, with many listed seed companies reporting revenue declines in their corn seed businesses during the first half of the year [3]. - The industry is undergoing a phase of "de-stocking, structural adjustment, and value creation," indicating a challenging environment for seed companies [3]. - Despite a stabilization in corn spot prices, seed prices are expected to recover slowly, with traditional varieties facing dual pressures from de-stocking and price competition [3]. - The industry is transitioning from traditional seeds to genetically modified and dense planting varieties, with companies that have a first-mover advantage likely to increase their market share [3]. - Donghai Seed Industry has already made advancements in genetically modified varieties, with six nationally approved corn GM varieties, including Donghai 605D, and is seeing gradual sales increases [3].