Core Viewpoint - Longping High-Tech (隆平高科) reported a revenue of 2.166 billion yuan for the first half of 2025, with a non-net profit loss of 157 million yuan, marking a year-on-year reduction in losses by 39.13% [1] Group 1: Business Performance - The company achieved stable revenue of 779 million yuan from rice seeds, with a net profit increase of 4% year-on-year [2] - The corn business generated nearly 1 billion yuan in revenue, with the Brazilian corn segment significantly reducing losses by 59.13% [3] - The Brazilian corn business reported revenue of 868 million yuan, a year-on-year increase of 2.11% (14% when adjusted for last year's exchange rate) [3] Group 2: Research and Development - Longping High-Tech invested 280 million yuan in R&D, achieving breakthroughs in breeding technologies for rice, corn, and wheat [4] - The company made significant progress in rice parent creation, with 47.8% of trial combinations being dual-resistant recovery lines [4] - The company registered 11 new corn varieties and 5 sorghum varieties in Brazil, expanding planting areas due to their disease resistance and high yield characteristics [4] Group 3: Management and Financial Health - The company completed a private placement raising 1.2 billion yuan from its major shareholder, significantly reducing interest-bearing liabilities by 726 million yuan [7] - Operating cash flow increased by 52.66% year-on-year, and the asset-liability ratio decreased by 6.46% since the beginning of the year [7] - Financial expenses decreased by approximately 17.33% due to reduced interest-bearing liabilities and favorable loan rates [7] Group 4: Future Outlook - The company plans to capitalize on opportunities in low-cadmium rice varieties and rapid growth of key new varieties to strengthen its leading position in the rice industry [8] - The domestic corn business is expected to enhance its competitive advantage due to the opportunities in the bio-breeding industry [8] - The Brazilian corn segment is anticipated to benefit from the growth of the ethanol industry and diversified demand for Chinese agricultural products, leading to increased seed and grain sales and prices [8]

Investment Rating - The investment rating for the company is "Accumulate" [1] Core Views - The company's performance in 2025 is expected to be under pressure due to impairment impacts and intense market competition [7] - Revenue for 2025 is projected to decline slightly by 2.50% year-on-year, with total revenue estimated at 3.81 billion [1] - The net profit attributable to the parent company is forecasted to decrease by 15.92% year-on-year, reaching 424.1 million [1] - The company is focusing on transforming its product varieties, particularly in corn seeds, which may face challenges in the competitive market [7] - The peanut seed business is expected to become a significant growth driver in the next three years [7] Financial Summary - Total revenue for 2023 is reported at 5.34 billion, with a year-on-year growth of 22.10% [1] - The net profit for 2023 is 794.2 million, reflecting a year-on-year increase of 28.68% [1] - The latest diluted EPS for 2023 is 0.48 yuan per share [1] - The company’s gross margin for H1 2025 is 18.30%, showing a slight increase of 0.63% year-on-year [7] - The company’s total assets are projected to reach 970 million by 2027 [8]

公司8月15日晚间发布公告称，拟向特定对象发行A股股票募资不超过4.07亿元，发行对象为公司实际控 制人中国农发集团及其控股子公司华农资产，发行价格为5.14元/股。募集资金将用于偿还国拨资金专 项应付款和补充流动资金。 风险提示：投资有风险，入市需谨慎。 截至2025年8月15日收盘，农发种业股价报6.35元，较前一交易日上涨0.03元，涨幅0.47%。当日成交量 为168274手，成交金额达1.07亿元。 农发种业主要从事农作物种子的研发、生产和销售业务，是农业产业化国家重点龙头企业。公司产品涵 盖玉米、水稻、小麦、棉花、油菜等多种农作物种子。 ...

Core Viewpoint - The company, Qiule Agricultural Technology, reported a significant decline in corn revenue for 2024, leading to a notable drop in operating income, net profit attributable to shareholders, and gross margin, which the company deemed reasonable given market conditions [1][2]. Group 1: Financial Performance - In 2024, the company achieved operating income of 391 million yuan, a year-on-year decrease of 26.77% [2]. - The net profit attributable to shareholders was 50.44 million yuan, down 36.49% year-on-year [2]. - The net profit after deducting non-recurring gains and losses was 2.02 million yuan, a decline of 71.84% compared to the previous year [2]. - The gross margin was 27.86%, a decrease of 4.23 percentage points year-on-year [2]. Group 2: Revenue Breakdown - The company's corn seed revenue decreased by 42.05% year-on-year due to oversupply and low grain prices, resulting in lower sales volume and price, as well as increased return rates [2]. - Conversely, wheat seed revenue increased by 5.52% year-on-year, attributed to the competitiveness of new wheat seed varieties launched in 2024 [2]. Group 3: Industry Comparison - The company noted that the decline in net profit and net profit after deducting non-recurring gains and losses was consistent with trends observed in peer companies within the industry [3]. Group 4: Investment Projects - The company has temporarily suspended the construction of the "Biological Breeding R&D Capacity Enhancement Project" [1][4]. - As of the end of 2024, the cumulative investment in the "Biological Breeding R&D Capacity Enhancement Project" and the "Seed Processing Center Renovation Project" was 11.15 million yuan and 14.67 million yuan, respectively, with progress rates of 8.84% and 35.35% [3]. - The "Seed Processing Center Renovation Project" is progressing as planned, with no current risks of delays [4]. Group 5: Additional Information - The company primarily engages in the research, breeding, processing, promotion, sales, and technical services of seeds for corn, wheat, and oilseeds [5].

Core Viewpoint - Hybrid rice technology offers new solutions for food security in developing countries, being more efficient and environmentally friendly compared to food trade [1] Group 1: Company Overview - Longping High-Tech, founded in 1999 and listed in 2000, is a modern seed industry group initiated by Yuan Longping, known as the "father of hybrid rice" [2] - The company is a leading integrated seed enterprise in China, focusing on hybrid rice, corn, wheat, and various specialty crops [6] - Longping High-Tech has a significant market presence, with 46 rice varieties covering 20.625 million acres, and it ranks among the top in national promotion areas for rice, corn, and wheat [6] Group 2: Technological Innovation - The company emphasizes the importance of research and development, maintaining around 10% of its revenue for R&D, and has established a commercial breeding system [7] - Longping High-Tech is actively involved in the internationalization of its business, particularly through the establishment of Longping Brazil, which enhances access to diverse maize germplasm resources [10][11] Group 3: Global Impact and Collaboration - The company has conducted over 260 training sessions in more than 100 countries, training over 11,000 technicians and officials to boost food production in Belt and Road Initiative countries [9] - Longping High-Tech's hybrid rice technology has been instrumental in supporting food security in developing nations, providing local seed varieties that are more suited to regional conditions [14] Group 4: Future Prospects - The company aims to strengthen R&D investments and global partnerships to enhance food production quality and quantity [13] - Longping High-Tech's approach of combining "good seeds + good methods" is seen as a sustainable solution for global food security challenges, particularly in regions with limited access to affordable food [14]

Investment Rating - The investment rating for the company is "Outperform" (Maintain) [3] Core Views - The company, a leader in the domestic corn seed industry, is currently facing short-term performance pressure but is expected to see a turning point as it ramps up research and development and expands its distribution channels [3] - The overall corn seed market is experiencing oversupply and intense competition, leading to declines in both sales volume and price [3] - The company has adjusted its profit forecasts for 2025-2026 and introduced a new forecast for 2027, expecting net profits of 55 million, 67 million, and 77 million yuan respectively for those years [3] Financial Summary - In 2024, the company is projected to achieve revenue of 391 million yuan, a decrease of 26.77% year-on-year, with a net profit of 50 million yuan, down 36.49% [3][6] - The gross margin is expected to be 27.86%, down 4.23 percentage points, and the net margin is projected at 12.89%, down 1.98 percentage points [3] - For Q1 2025, revenue is expected to be 19.19 million yuan, a decline of 45.25%, with a net loss of 4.48 million yuan [3] Research and Development - The company increased its R&D expenditure to 2160.87 million yuan in 2024, a year-on-year growth of 17.98% [5] - Several of the company's corn varieties have been recognized for their disease resistance and high yield, with specific varieties selected as leading agricultural varieties in various provinces [5] Market Position and Strategy - The company is actively exploring online sales channels, including establishing its own e-commerce platform and collaborating with influencers and e-commerce teams [5] - The company aims to enhance its market position in the wheat and peanut seed markets, anticipating accelerated expansion in these areas [3]

Group 1: Financial Performance - In Q1 2025, the company's revenue decreased by 45.25%, and the net profit turned to a loss of -4.4845 million yuan [6] - The net cash flow from operating activities in 2024 was -13.7718 million yuan, a 138.20% decrease compared to 36.0555 million yuan in 2023 [8] - The basic earnings per share in 2024 decreased by 35.42%, and the weighted average return on net assets dropped by 6.20% [13] Group 2: Inventory and Cost Management - As of the end of 2024, the company's inventory was 198 million yuan, a decrease of 1.42% from the previous year, with an inventory turnover rate of 0.82, down from 1.03 [5] - The company implemented measures to optimize inventory management and reduce inventory depreciation risks, including production based on sales and optimizing product structure [5] Group 3: Strategic Initiatives - The company plans to expand market share by optimizing the product structure and increasing marketing efforts for corn, wheat, and peanut seeds [7] - In 2024, the company established an official online store and collaborated with e-commerce platforms to enhance sales channels [7] Group 4: Research and Development - In 2024, the company increased R&D investment by 18%, focusing on 16 projects related to crop breeding and technology [12] - The company is advancing in biotechnology, with two genetically modified varieties expected to generate revenue in 2025 [13] Group 5: Industry Position and Future Outlook - The company is recognized as a key leading enterprise in agricultural industrialization and is positioned to leverage mergers and acquisitions to enhance market presence [10] - The company aims to build a comprehensive system around corn, wheat, and peanuts, focusing on R&D, production, and marketing [9]

Group 1 - Shandong is the second largest wheat-producing province in China, with winter wheat planting area expected to stabilize at over 6 million acres by 2025, maturing by the end of May [1] - A seed observation meeting is being held at a new wheat variety trial base in Shandong, serving as a "barometer" for the promotion of new wheat varieties in the northern Huanghuaihai region [3] - More than 30 new wheat varieties are showcased, with farmers able to select and order seeds on-site, indicating a proactive approach to seed selection [4] Group 2 - The contribution rate of good varieties to grain yield increase in Shandong has reached 47%, with a good variety coverage rate of 98% across the province [8] - Agricultural research institutions and seed companies are accelerating the breeding of good varieties to meet market demands for new wheat performance [9] Group 3 - In Sichuan, over 9.3 million acres of winter wheat are maturing, with advanced machinery improving harvesting efficiency by 40% [12] - The introduction of unmanned planting machines in the Nanniwan area enhances planting efficiency, reducing the labor required for rice planting from 4-5 people to just 1 [16] Group 4 - In Hubei, a former mining area has been transformed into productive farmland, with 16,000 acres of previously abandoned land being revitalized through government support and ecological restoration efforts [21]

Investment Rating - The report maintains an "Accumulate" investment rating for the company [1][8] Core Insights - The company's performance is under short-term pressure, with total revenue for 2024 at 391 million yuan, down 26.77% year-on-year, and a net profit of 50 million yuan, down 36.49% year-on-year [7] - The sales of corn seeds are under pressure, with revenue from corn seeds at 196 million yuan, down 42.05% year-on-year, while wheat seeds saw a slight increase of 5.52% [7] - The company continues to strengthen its R&D capabilities, with a 17.98% increase in R&D expenses in 2024, which is crucial for maintaining its competitive edge in the industry [7] - The company’s gross margin for 2024 was 27.86%, down 4.23 percentage points year-on-year, and the net profit margin was 12.89%, down 1.98 percentage points year-on-year [7] - The commercialization of biotechnology breeding is progressing steadily, with significant policy support for the seed industry, indicating potential for future growth [8] Summary by Sections Financial Performance - In Q1 2025, the company reported revenue of 19 million yuan, down 45.25% year-on-year, and a net profit of -4.48 million yuan, indicating a shift from profit to loss [7] - The company’s total revenue for 2024 was 391 million yuan, with a projected revenue of 370 million yuan for 2025, reflecting a continued decline [9] Product Performance - Revenue from corn seeds decreased significantly, while wheat seed revenue increased slightly, indicating a mixed performance across product lines [7] - The company’s core products, particularly its corn varieties, have maintained a strong competitive position in the market [7] R&D and Competitive Position - The company has been increasing its investment in R&D, which is essential for sustaining its competitive advantage in the seed industry [7] - Several of the company’s corn and peanut varieties have been recognized as leading products in various regions, showcasing its strong market position [7] Market Outlook - The report anticipates that the company will achieve net profits of 55 million yuan in 2025, 66 million yuan in 2026, and 77 million yuan in 2027, indicating a recovery trend [8][9] - The company is expected to remain within a reasonable valuation range compared to industry peers, with projected P/E ratios of 58.86 for 2025, 48.92 for 2026, and 42.21 for 2027 [8][9]

Investment Rating - The report maintains an "Accumulate" investment rating for the company, indicating a projected relative increase of 5% to 15% compared to the CSI 300 index over the next six months [8][16]. Core Views - The company's performance is under short-term pressure, with total revenue for 2024 at 391 million yuan, down 26.77% year-on-year, and a net profit of 50 million yuan, down 36.49% year-on-year [7]. - The sales of corn seeds are under pressure, with revenue from corn seeds at 196 million yuan, a decrease of 42.05% year-on-year, while wheat seed revenue increased by 5.52% [7]. - The company continues to enhance its R&D capabilities, with a 17.98% year-on-year increase in R&D expenses, which is crucial for maintaining its competitive edge in the industry [7]. - The company’s gross margin for 2024 is reported at 27.86%, down 4.23 percentage points year-on-year, while the net margin is at 12.89%, down 1.98 percentage points year-on-year [7]. - The commercialization of biotechnology breeding is progressing steadily, with significant policy support expected to enhance profitability and market share for industry players [8]. Summary by Sections Financial Performance - In Q1 2025, the company reported a revenue of 19 million yuan, down 45.25% year-on-year, and a net profit of -4.48 million yuan, indicating a shift from profit to loss [7]. - The company’s total revenue for 2024 was 391 million yuan, with a significant decline in net profit and cash flow [7][9]. Product Performance - Corn seed sales have been particularly affected, with a revenue drop of 42.05% year-on-year, while wheat seed sales showed a modest increase [7]. - The company’s core products, including various corn and wheat varieties, continue to receive recognition and maintain competitive advantages in the market [7]. R&D and Competitive Position - The company has increased its R&D investment, which is essential for sustaining its market position and developing new products [7]. - Several of the company’s seed varieties have been recognized as leading products in their respective categories, indicating strong market presence [7]. Market Outlook - The report anticipates a gradual recovery in the industry, with projected net profits of 55 million yuan in 2025, 66 million yuan in 2026, and 77 million yuan in 2027 [8][9]. - The company is expected to remain within a reasonable valuation range compared to industry peers, with projected EPS of 0.33 yuan in 2025 and a PE ratio of 58.86 [8][9].