① Benefiting from the integration of “Two Dragons”, Longping Hi-Tech's revenue increased dramatically last year, approaching the 10 billion yuan mark for the first time; ② During the reporting period, the company's rice and domestic corn seed revenue increased 36.50% and 72.30%, respectively, and the market share also increased to a certain extent; ③ The company's 8 genetically-modified corn varieties passed the national review during the reporting period, and 1.14 million mu were piloted for industrialization.
Financial Services Association, April 28 (Reporter Liu Jian) Longping Hi-Tech (000998.SZ) continued its capital movements last year, successively acquiring shares in Fujian Keli, Yunnan Xuansheng, and Longping Development. In particular, Longping Development supported the company's performance. The company's revenue reached a record high last year. Furthermore, a total of 8 genetically-modified corn varieties passed the national review last year, and 1.14 million mu were piloted for industrialization.
Today, Longping Hi-Tech disclosed its 2023 annual report, achieving operating income of 9.223 billion yuan, an increase of 22.45% year on year; realized net profit of 200 million yuan, an increase of 124.02% year on year; and realized deducted non-net profit of 487 million yuan, an increase of 149.67% year on year.
In recent years, the revitalization of the seed industry has accelerated, and China's seed industry has entered an important period of market integration. Many small-scale seed companies with poor scientific research standards will gradually withdraw from the market, seed companies with “integrated breeding and promotion” management capabilities will become mainstream in the market, and mergers and acquisitions of major enterprises continue to accelerate.
Longping Hi-Tech was no exception. Last year, the company used cash payment to bid for 7.14% of Longping Development's shares held by Xinyu Nongyin Longfa Investment Partnership (Limited Partnership). After the transaction was completed, the company held a total of 42.89% of Longping Development's shares and acquired 51% of Fujian Keli and Yunnan Xuansheng's shares.
Focusing on epitaxial expansion in the main business, it has contributed greatly to the company's performance. A CFA reporter noticed that the company's revenue from 2021 to 2023 continued to grow sharply, to 3.503 billion yuan, 7.532 billion yuan, and 9.223 billion yuan, respectively. In particular, last year, after the company completed the “Lianglong” merger and Longping development contributed 3,886 billion yuan in revenue, the company's revenue reached the 10 billion yuan mark.
In addition, the growth in the rice and corn sector also supported the company's performance. During the reporting period, the company's rice seed revenue was 1,777 billion yuan, up 36.50% year on year, with a market share of 18%; domestic corn seed revenue was 2,268 billion yuan, up 72.30% year on year, and market share increased from 7% to nearly 10%; at the same time, the company's market shares for millet, anchovies, chili peppers, and cucumber seeds were 60%, 39%, 10%, and 60% respectively, all of which remained high.
It is worth noting that last year, the first batch of 51 genetically modified corn and soybean varieties in China passed the national variety certification, and production and operation licenses were quickly issued, and the domestic GM development process accelerated. Financial reports show that a total of 8 genetically-modified corn varieties of Longping Hi-Tech passed the national review last year, and 1.14 million mu were piloted for industrialization.
Looking ahead to this year, the sales area for genetically-modified seeds will open up to 8 provinces. In an interview with a reporter from the Financial Federation, some industry experts said, “Overall, the country is advancing the genetically-modified process according to the plan. Early investment by related companies may begin to gradually realize benefits, and it is likely that faster than expected, and with the promotion of genetically modified genes, the market share of leading seed companies with superior R&D capabilities will further increase.”
On the same day, the company released its report for the first quarter of 2024. During the reporting period, the company achieved operating income of 2,072 billion yuan, an increase of 16.56% over the previous year, and realized net profit of 77 million yuan, a year-on-year decrease of 48.95%.