26 August 2025 | 2:47PM HKT Longping High-Tech (000998.SZ) Earnings Review: 1H25A better than expectations, solid rice seeds and improving overseas; Maintain Buy | 000998.SZ | | --- | | 12m Price Target: Rmb12.00 | | Price: Rmb10.09 | | Upside: 18.9% | Longping reported 1H25A net loss of Rmb164mn, or negative EPS of Rmb0.124/sh, versus positive Rmb0.085/sh in 1H24A. Excluding one-off items, mainly on FX gain, inventory impairment loss, and government subsidy, the recurring net loss was Rmb284mn, versus Rmb6 ...

Corporate Finance - Godrej Seeds and Genetics 正在考虑首次发行本地货币债券 [1] - Godrej Seeds and Genetics 是印度历史最悠久的集团公司之一 [1]

Core Viewpoint - S&W Seed Company has announced its decision to voluntarily delist its common stock from The Nasdaq Capital Market and deregister with the SEC, aiming to relieve itself of reporting obligations under the Exchange Act [1][4]. Group 1: Delisting and Deregistration Process - The Company will file a Form 25 with the SEC around July 24, 2025, to initiate the delisting process, which is expected to take effect 10 days after the filing [2]. - Following the delisting, the Company plans to file a Form 15 with the SEC around August 4, 2025, to suspend its reporting obligations, which will cease upon the effectiveness of the deregistration [3]. Group 2: Reasons for Delisting - The Board's decision was influenced by the likelihood of future non-compliance with Nasdaq's continued listing requirements, which could lead to involuntary delisting, as well as the high costs and regulatory burdens associated with ongoing reporting requirements [4]. Group 3: Future Trading Options - After delisting from Nasdaq, the Company's common stock may be eligible for quotation on the Pink Open Market, contingent upon sponsorship by a market maker, although there are no guarantees of a trading market existing in the future [5]. Group 4: Company Overview - S&W Seed Company, founded in 1980, is a global multi-crop agricultural company based in Longmont, Colorado [6].

Financial Data and Key Metrics Changes - For Q3, the company reported revenue of $9.5 million, a slight increase from $9.4 million in the same quarter last year, excluding Australia [23] - Adjusted EBITDA for Q3 was positive $244,000 compared to negative $2.2 million in the previous year's Q3 [29] - The gross profit margin for Q3 improved to 37.7% from 24.6% in the previous year, driven by better lifecycle management and a shift to higher-margin products [26][27] Business Line Data and Key Metrics Changes - America's sorghum revenue, including double team and conventional sorghum, was $7.1 million compared to $7 million last year [23] - Double team revenue was $3.3 million this year, down from $3.4 million last year [23] - America's Forages revenue increased to $1.5 million from $1.2 million last year [23] Market Data and Key Metrics Changes - U.S. sorghum exports to China dropped significantly starting in January, with minimal purchases in April due to retaliatory tariffs [11][12] - The reduced demand from China has led to increased U.S. sorghum inventories, driving down prices and prompting farmers to switch cropping plans [12][13] Company Strategy and Development Direction - The company is focusing on core Americas-based operations, particularly high-margin double team sorghum solutions [6][8] - A new $25 million working capital facility was secured to support operations [8] - The company aims to achieve approximately 10% to 12% market share of U.S. grain sorghum acres this year, with a long-term goal of capturing 25% to 30% market share over the next eight years [14][15] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about long-term growth in the sorghum market despite near-term disruptions from tariffs [19][34] - The company revised its full-year revenue expectations to $29 million to $31 million, down from $34.5 million to $38 million previously [25] - Management believes that a resolution to trade tensions with China could restore normalcy in the market [42] Other Important Information - The divestiture of the Australian subsidiary has moved all related operations to discontinued operations, affecting financial comparisons [22] - The company is exploring various strategic alternatives to enhance shareholder value [20][21] Q&A Session Summary Question: Impact of Chinese tariff situation on fourth quarter outlook - Management indicated that the situation is fluid and that local pricing pressures are significant, with expectations for orders from China to stabilize the market [36][39] Question: Status of ongoing strategic review - The strategic review process is ongoing, with continued interest from parties engaged in the sorghum market [44][45] Question: Updates on international market expansion - The company is targeting international markets through partnerships and licensing relationships, which are progressing but require time for trait integration and herbicide registration [46][49]

Financial Data and Key Metrics Changes - For Q3, the company reported revenue of $9.5 million, a slight increase from $9.4 million in the same quarter last year, excluding Australia [24] - Adjusted EBITDA for Q3 was positive $244,000 compared to negative $2.2 million in the previous year [31] - The company revised its full-year revenue expectation to between $29 million and $31 million, down from a previous range of $34.5 million to $38 million [26][20] Business Line Data and Key Metrics Changes - America's sorghum revenue, including double team and conventional sorghum, was $7.1 million compared to $7 million last year [24] - Double team revenue was $3.3 million this year, down from $3.4 million last year [24] - America's forages revenue increased to $1.5 million from $1.2 million last year [24] Market Data and Key Metrics Changes - U.S. sorghum exports to China dropped significantly starting in January, with minimal purchases in April due to retaliatory tariffs [12][14] - The reduced demand from China has led to increased U.S. sorghum inventories, driving down prices and prompting farmers to switch cropping plans [13][14] Company Strategy and Development Direction - The company is focusing on core Americas-based operations, particularly high-margin double team sorghum solutions [6][9] - The company aims to capture 10% to 12% market share of U.S. grain sorghum acres this year, with a long-term goal of 25% to 30% market share over the next eight years [15][17] - The company is exploring various strategic alternatives to enhance shareholder value [21][22] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about long-term growth in the sorghum market despite near-term disruptions from tariffs [20][35] - The company believes that a resolution to trade tensions will eventually normalize the market and restore demand from China [14][42] - Management highlighted the potential for sorghum to be recognized as a superfood, which could drive domestic demand [15] Other Important Information - The company successfully completed a $25 million working capital facility to support operations [9] - The divestiture of the Australian subsidiary has moved all related operations to discontinued operations [23] Q&A Session Summary Question: Impact of Chinese tariff situation on fourth quarter outlook - Management noted that the situation is fluid and that local cash prices have been affected, but they expect a return to normalcy in the long term [37][40][42] Question: Status of ongoing strategic review amid market uncertainty - The strategic review process is still moving forward, with continued interest from parties engaged in sorghum [44][45] Question: Updates on expanding traded sorghum portfolio internationally - The company is targeting other international markets through partnerships and licensing relationships, which could double the key target of the U.S. sorghum market [46][48]

Core Insights - S&W Seed Company reported a year-over-year revenue growth of 2.0% for the third quarter of fiscal 2025, with total revenue reaching $9.6 million compared to $9.4 million in the same quarter of fiscal 2024 [4][11] - The company achieved a gross profit margin of 37.7% in the third quarter of fiscal 2025, significantly up from 24.6% in the same quarter of fiscal 2024, driven by improved product mix and lifecycle management [5][11] - Despite positive trends, the company revised its fiscal 2025 revenue expectations to a range of $29.0 to $31.0 million due to tariffs affecting exports to China and market uncertainties [10][11] Financial Performance - Total revenue for the third quarter of fiscal 2025 was $9.6 million, an increase of $0.2 million from the previous year, attributed to higher sales in non-dormant alfalfa and conventional grain sorghum [4][11] - Gross profit for the third quarter was $3.6 million, with a gross profit margin of 37.7%, reflecting a strong improvement in profitability compared to the previous year [5][11] - GAAP operating expenses decreased to $4.3 million in the third quarter of fiscal 2025 from $5.5 million in the same quarter of fiscal 2024, primarily due to reduced selling, general, and administrative expenses [6][11] Loss and Adjusted Metrics - The net loss from continuing operations for the third quarter of fiscal 2025 was $2.2 million, or $1.04 per share, a significant improvement from a net loss of $4.8 million, or $2.11 per share, in the same quarter of fiscal 2024 [7][11] - Adjusted EBITDA for the third quarter of fiscal 2025 was $0.2 million, compared to an adjusted EBITDA loss of $2.2 million in the same quarter of fiscal 2024, indicating a turnaround in operational performance [9][11] - The adjusted net loss for the third quarter of fiscal 2025 was $1.2 million, or $0.57 per share, compared to an adjusted net loss of $4.1 million, or $1.79 per share, in the same quarter of fiscal 2024 [8][11] Market Outlook - The company expressed optimism about the long-term demand for sorghum, particularly due to its nutritional benefits, including being high in protein and gluten-free [3] - S&W Seed Company is focusing on high-value, high-margin products such as Double Team and Prussic Acid Free sorghum, which have received strong endorsements from the domestic market [3] - The company anticipates that once market conditions stabilize, it will be well-positioned to regain market share and continue its growth trajectory [3]

Company Overview - S&W Seed Company is a multi-crop, middle-market agricultural company founded in 1980 and headquartered in Longmont, Colorado [4] - The company aims to be a preferred proprietary seed company to meet the growing demand for animal proteins and healthier consumer diets [4] - S&W is a leader in sorghum seeds and has significant research and development, production, and distribution capabilities [4] - The company also has a commercial presence in proprietary alfalfa and focuses on sustainable biofuel feedstocks, primarily through a partnership in camelina [4] Upcoming Financial Results - S&W Seed Company will report its third quarter fiscal year 2025 financial results for the period ended March 31, 2025, on Thursday, May 15, 2025, before the market opens [1] - A conference call to review the results is scheduled for the same day at 11:00 a.m. Eastern time [1] Conference Call Access - Interested parties can access the conference call by dialing (844) 861-5498 or (412) 317-6580, or via a live Internet webcast available on the company's Investor Relations website [2] - A teleconference replay will be available for seven days after the call, and a webcast replay will be accessible for 30 days [3]