Long Ping High-Tech(SZ:000998)2024-07-13 03:03Group 1: Performance and Growth - The rice industry has shown a year-on-year growth, attributed to the company's market-oriented breeding system and the introduction of high-yield varieties like "Wei Liang You" and "Zhen Liang You" [2][3] - The company has integrated six subsidiaries into the Asia Rice Division, leading to a more unified strategy and resource allocation, resulting in domestic sales growth of over 50% since 2021 [3] - The company’s subsidiary, Longping Development, achieved revenue exceeding 3.8 billion RMB in Brazil, indicating significant market success [4] Group 2: Financial Management - The company has replaced all foreign currency (USD) loans with RMB loans to avoid exchange losses, with an estimated exchange loss of approximately 188 million RMB in the reporting period, compared to a gain of 91 million RMB in the previous year [3][4] - The exchange loss increased by about 280 million RMB year-on-year due to the appreciation of the RMB against the Brazilian Real [3] Group 3: Strategic Initiatives - The company is adopting a cautious approach to capital expenditure in Brazil while enhancing operational cash flow to mitigate external risks [4] - The introduction of a rotating presidency system aims to optimize governance and management, enhancing the company's operational vitality and decision-making capabilities [5] Group 4: Market Opportunities - The domestic corn seed industry is experiencing a shake-up due to oversupply, but the demand for corn remains strong, with the company positioned to benefit from the expanding market for genetically modified corn varieties [4] - The company has implemented a dual-driven strategy of internal breeding and external introduction to enhance its competitive edge in the corn seed market [4]