On March 14, Hefei Fengle Seed Co.Ltd(000713) ( Hefei Fengle Seed Co.Ltd(000713) ) announced that the listed company decided to invest 36 million yuan to control Sichuan Tianyu Xinghe Biotechnology Co., Ltd. (hereinafter referred to as Tianyu Xinghe) by means of capital increase and transfer.
Although the investment amount is not high, Tianyu Xinghe is involved in many popular agricultural breeding technologies and Hefei Fengle Seed Co.Ltd(000713) hopes to promote non transgenic molecular biology breeding and other industries after the acquisition.
According to the announcement, Tianyu Xinghe is an agricultural high-tech company led by Chinese American scientist Xu Nanfei (English Name: Nanfei Xu) returning home. It focuses on the field of biological breeding and creates innovative new traits for agriculture, including unique innovative traits in herbicide resistance (functional gene), disease resistance, high yield and so on.
At present, Tianyu Xinghe has obtained two major key core technologies with completely independent intellectual property rights, namely, cell evolution nitrosulfuron resistant rice and gene super evolution self optimization breeding glyphosate resistant rice.
According to the data, Xu Nanfei is the chief scientist of Tianyu Xinghe, doctor of plant physiology of Guelph University in Canada and postdoctoral (Molecular Biology) of the University of Missouri in the United States; He has worked in Monsanto, BASF, Bayer and other top agricultural technology companies in the world for nearly 20 years.
On March 14, Hefei Fengle Seed Co.Ltd(000713) signed the agreement on capital increase and equity transfer of Sichuan Tianyu Xinghe Biotechnology Co., Ltd. with Tianyu Xinghe and its shareholders. Hefei Fengle Seed Co.Ltd(000713) invested 27 million yuan in cash to increase the capital of Tianyu Xinghe and obtained 4.5 million shares of the target company; At the same time, 1.5 million shares of the original shareholders were transferred in cash of 9 million yuan, including 1.1 million shares of Sichuan Tianyu Taihe Agricultural Technology Co., Ltd., 200000 shares of natural person Zhang Chunli and 200000 shares of natural person Wang Chaoquan; After completing the above investment, Hefei Fengle Seed Co.Ltd(000713) holds 6 million shares of Tianyu Xinghe, accounting for 35.58% of its equity.
At the same time, Hefei Fengle Seed Co.Ltd(000713) signed the agreement on concerted action with Tianyu Taihe and Nanfei Xu, and Tianyu Taihe and Nanfei Xu became the persons acting in concert of Hefei Fengle Seed Co.Ltd(000713) ; After the transaction is completed, Tianyu Xinghe will become a holding subsidiary within the scope of Hefei Fengle Seed Co.Ltd(000713) consolidated statements.
According to the transaction price, the value of all shareholders’ equity assessed by Tianyu Xinghe using the income method is 751977 million yuan, with an estimated value-added of 743042 million yuan and a value-added rate of 831535%. The price of capital increase and transfer of 6 million shares is 6 yuan per share, totaling 36 million yuan. The benchmark date of transaction audit and evaluation is September 30, 2021.
At present, the main products of Tianyu Xinghe are divided into two categories. One is technical products, which are herbicide resistant functional genes and can cover rice, wheat, corn, soybean, rape and other major crops; One is a new plant variety, which is xinghezhuang crop glyphosate resistant crop, xingheqiang crop glyphosate resistant crop and xinghexin crop trianone resistant crop. The profit model is mainly to provide technical (cooperation) services such as herbicide resistance introduction and molecular detection for varieties provided by seed enterprises, and participate in the sales revenue sharing and premium after the promotion of cooperative varieties by seed enterprises.
So far, Tianyu Xinghe has a total of 9 authorized invention patents (including 2 authorized by the United States and 1 authorized by Canada) and 6 patents under application (including 5 patents entering the substantive examination stage and 1 patent under application acceptance).
Weeds are an important factor affecting the yield and quality of rice. Endowing rice varieties with herbicide resistance can broaden the types of herbicides used in rice fields, reduce production costs, improve seed added value and market competitiveness, and promote the development of large-scale and mechanized planting of rice. At present, more than 80% of genetically modified crops in the world have herbicide resistance traits, but there are no glyphosate resistant non genetically modified crop varieties. China lacks endogenous herbicide resistance genes of non genetically modified green crops with independent intellectual property rights.
Cell evolution technology is a mutation breeding technology at the cell level. Its resistance to nitrosulfuron in rice has reached 10 times the recommended dose level in the field; Self optimizing breeding is a technology to improve the genes of crops on the basis of gene hyperevolution. These two core key breeding technologies are unique outside China and at the world’s leading level. They can be applied to various crops such as rice, corn, wheat, rape and soybean. If they can be quickly applied to commercial breeding, China will take the lead in occupying the strategic highland of molecular breeding of non transgenic plants.
The “Liangfeng rice series” has become a national leading hybrid rice variety in China. With the change of production mode, “Fengliangyou” series varieties can no longer meet the market demand.
In recent years, Hefei Fengle Seed Co.Ltd(000713) has continuously strengthened independent research and development and actively sought cooperation opportunities, in order to master the leading cutting-edge breeding technology in the seed industry, improve the company’s scientific research and breeding ability, and realize the transformation of the company’s product structure and high-quality development. A batch of breakthrough breeding materials created by Tianyu Xinghe can solve the “neck” pain point of seed industry research and development. After the acquisition, the company will accelerate the enrichment and improvement of its core technology system and the transformation of achievements, that is, promote the industrialization of non transgenic molecular biology breeding with commercial seed breeding system, and provide a strong technical guarantee for China’s food security.
Hefei Fengle Seed Co.Ltd(000713) announced that after holding Tianyu Xinghe, it can enhance the breeding ability, shorten the R & D time of the company in biological breeding technology, reduce relevant R & D expenses, quickly obtain advanced biological breeding technology and related products, accelerate the transformation of core technical achievements of Tianyu Xinghe, and use its technology to improve the company’s rice, wheat Improve the existing core varieties of rape and other industries to enhance the market competitiveness of the company’s products; As a separate business entity, Tianyu Xinghe cooperates with various industrial companies in the market to maximize the benefits of the transformation of patented technology achievements by means of paid use of patented technology and sales commission. In addition, a new marketing model of joint promotion of herbicide resistant varieties and herbicides can be formed by combining the herbicide resistant products of Hefei Fengle Seed Co.Ltd(000713) agrochemical industry line.
Hefei Fengle Seed Co.Ltd(000713) suggests that the seed industry is a special industry. Whether it is improved varieties or new varieties, it takes a period of 3-4 years for the promotion to produce benefits. It is difficult to see benefits in a short time after cooperation.
