Core Viewpoint - Dunhuang Seed Industry Group Co., Ltd. reported a slight decline in revenue for 2024, but a significant increase in net profit, indicating improved profitability despite revenue challenges [3]. Financial Performance - In 2024, Dunhuang Seed Industry achieved revenue of 1.156 billion yuan, a year-on-year decrease of 0.16% [3]. - The net profit for the year was 49.88 million yuan, with a year-on-year growth rate of 22.26% [3]. - The increase in profit despite declining revenue is attributed to higher product gross margins [3]. Business Segments - The seed business remains the core revenue driver, generating 833 million yuan in revenue, accounting for over 70% of total revenue [3]. - The gross margin for the seed business increased by 5.55 percentage points compared to the previous year [3]. Market Conditions - The corn seed market is experiencing an oversupply, with a national corn seed production area of 4.28 million acres in 2024, a decrease of 7.5% from 2023 [4]. - Despite the reduction in planting area, the average yield reached 390 kg per acre, the highest in five years, leading to stable total production levels [4]. - The supply-demand ratio for corn seeds is projected to rise from 167% in 2023-2024 to 175% in 2024-2025, indicating continued high inventory levels [4]. Strategic Initiatives - The company plans to reduce seed production costs and enhance the sales of proprietary varieties to improve market competitiveness [3][4]. - Future strategies include controlling seed production areas based on market conditions and optimizing sales strategies to accelerate inventory turnover [5]. - Currently, the company has no plans to launch genetically modified varieties and focuses on hybrid corn seeds [4]. Dividend Policy - Due to negative retained earnings, the company is currently not in a position to distribute dividends but aims to do so in the future when conditions allow [5].