Group 1 - The company has recognized an inventory impairment provision of 12.2145 million yuan as of September 30, 2025, to reflect the asset status and operating results accurately [2][4] - The impairment provision is based on the principle of prudence and is in accordance with the relevant accounting standards and the company's financial management system [2][5] - The provision will reduce the company's total profit for the third quarter of 2025 by 12.2145 million yuan, but it will not affect the normal operations of the company or harm the interests of shareholders [5][6] Group 2 - The impairment provision was made for hybrid corn seeds that showed signs of impairment [4] - The final amount of the impairment provision will be confirmed by the company's annual auditing firm [6]

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].