Financial Associated Press, October 27 (Reporter Liu Jian Wang Ping an)The traditional seed industry is facing greater pressure this year, with many companies losing money in the first three quarters, and 000998.SZ is no exception. But the company's losses narrowed in the first three quarters, thanks to rising profits in its main business. In addition, due to the recent acceleration of GM commercialization, a number of GM varieties of the company have entered the preliminary examination and publicity, which may become its new performance growth point in the future.

This evening, Longping Hi-Tech released its report for the third quarter of 2023, saying that the company's operating income in the first three quarters was 2.047 billion yuan, an increase of 59.48 percent over the same period last year. The net profit loss belonging to shareholders of listed companies was 543 million yuan, down 23.57 percent from the same period last year.

For the increase in revenue, the company said: the main reason is the growth of the main business during the reporting period, in which the rice seed business due to the superposition of multiple factors such as the government's promotion of low-cadmium varieties, international business growth, sales of new varieties and other factors, revenue increased significantly compared with the same period last year.

In addition, a reporter from the Financial Associated Press noted that the improvement of the prosperity of the corn seed industry this year has also provided some support for the company's performance recovery. Earlier, the Ministry of Agriculture and Village said that this year's prices of corn seeds, rice seeds and soybean seeds rose slightly from the same period last year, rising by between 4% and 14%.

From the perspective of net profit, due to the increase in gross profit of the company's main business compared with the same period last year, the net profit increased compared with the same period last year. According to the financial report, the company's gross profit in the first three quarters was 835 million yuan, compared with 472 million yuan in the same period last year, and the gross profit margin also increased by 4 percentage points over the same period last year.

While reducing losses in the first three quarters, the company is also constantly promoting capital operation and looking for new performance growth points. After divesting the small loan financial business, the company competed to buy Longping Development shares to promote the "Lianglong" integration. "(bidding for Longping Development shares) there are many considerations: one is that from the resource level, it can enhance our germplasm resources; secondly, it can also enhance the international influence; finally, the integration of" Lianglong "is also to further strengthen the subsequent performance growth points." Prior to this, when the reporter called the company as an investor, relevant people said.

In addition, the company's early GM investment is also expected to be realized in the follow-up. Recently, the Ministry of Agriculture and Village issued the "publicity of varieties approved at the fourth examination and approval meeting of the Fifth National crop Variety approval Committee". 37 genetically modified corn varieties and 14 genetically modified soybean varieties were approved in the first trial, and 8 varieties were passed by Zhonglongping High-Tech and its subsidiaries. From the character point of view, Longping Hi-Tech holding company Hangzhou Ruifeng accounted for 9. "the company has a first-mover advantage in genetically modified breeding and is more focused on the main business after restructuring and divestiture, which may become a new performance growth point for the company in the future." Some people in the industry have pointed out.