Long Ping High-Tech(SZ:000998)2025-04-29 12:10Group 1: Company Performance Overview - The company achieved an annual revenue of 85.66 billion CNY, with a net profit attributable to shareholders of 5.4 billion CNY, driven by a robust domestic business that generated 54 billion CNY in revenue [3][4] - Domestic rice revenue grew by 13% on top of a 36% increase in 2023, surpassing 20 billion CNY, while corn revenue exceeded 21 billion CNY despite international market challenges [3][4] - The company maintained a stable market share of approximately 20% in Brazil, with sales remaining flat year-on-year despite adverse conditions [3][4] Group 2: Strategic Focus and Initiatives - The company is focusing on a "2+2" crop strategy, prioritizing corn and sorghum while also expanding into soybeans and rice [5][6] - Aiming to enhance profitability, the company plans to leverage its operational management capabilities in Brazil to meet high customer service and product quality demands [5][6] - The company is optimizing its research and product strategies to develop globally competitive products while reducing costs and improving efficiency [5][6] Group 3: Market Trends and Future Outlook - The Brazilian corn market is expected to see significant changes due to the government's new biofuel policy, which will increase ethanol production and subsequently corn demand [7][8] - The company anticipates a slight increase in corn prices by the end of the year, with a clear and sustainable growth trend in the industry [7][8] - The company is positioned to capitalize on market opportunities by deepening its core crop strategy of "corn + sorghum" to enhance market share and profitability [7][8] Group 4: Financial Management and Cost Control - The company has implemented financial strategies to manage high interest rates in Brazil, securing loans at a significantly lower rate of 2.9% compared to local rates exceeding 16% [9][10] - Management expenses have decreased by 22.9 million CNY year-on-year, reflecting the company's commitment to cost control and efficiency [9][10] - The company is adopting hedging tools to mitigate exchange rate risks associated with cross-border loans, ensuring stability in profit margins [9][10] Group 5: Research and Development Focus - The company is prioritizing the development of drought-resistant and high-yield corn varieties, with a focus on enhancing traits such as resistance to pests and diseases [16] - The integration of gene editing technology is expected to significantly shorten breeding cycles from 7-8 years to 5-6 years, facilitating the introduction of competitive varieties [16] - The company plans to expand its market presence in northern regions by launching early-maturing corn varieties and optimizing product structures [14][15]