Securities code: Shandong Denghai Seeds Co.Ltd(002041) securities abbreviation: Shandong Denghai Seeds Co.Ltd(002041) Announcement No.: 2022005 Shandong Denghai Seeds Co.Ltd(002041) 2021 annual report summary
1、 Important note: the summary of this annual report comes from the full text of the annual report. In order to fully understand the company’s operating results, financial status and future development plan, investors should carefully read the full text of the annual report in the media designated by the CSRC. In addition to the following directors, other directors attended the meeting of the board of directors to consider the annual report in person
Name of director not present in person position of director not present in person reason for not attending the meeting name of the entrusted person
Tips on non-standard audit opinions □ applicable √ not applicable to the profit distribution plan of common shares or the plan of converting accumulation fund into share capital in the reporting period considered by the board of directors √ applicable □ not applicable whether to convert accumulation fund into share capital □ yes √ no
The company’s profit distribution plan for ordinary shares reviewed and approved by the board of directors is: take 88000000 as the base, distribute cash dividends of 0.36 yuan (including tax) to all shareholders for every 10 shares, send bonus shares of 0 share (including tax), and do not use the accumulation fund to increase the share capital. Preferred stock profit distribution plan for the reporting period adopted by the board of directors □ applicable □ not applicable II. Basic information of the company 1. Company profile
Stock abbreviation Shandong Denghai Seeds Co.Ltd(002041) stock code Shandong Denghai Seeds Co.Ltd(002041)
Shenzhen Stock Exchange
Contact person and contact information secretary of the board of directors securities affairs representative
Name: Yuan Shaogang Ju Haoyan
Office address: South of Chengshan Road Academy of Agricultural Sciences, Laizhou City, Shandong Province
Fax: 05352788875
Tel: 0535278892605352788889
E-mail [email protected]. [email protected].
2. Introduction to main business or products during the reporting period
Since its establishment, the company’s main business has not changed significantly. It is mainly engaged in the breeding of new crop varieties and the production, sub packaging and sales of crop seeds within the business scope specified in the license. It has been committed to the research of corn breeding and high-yield cultivation for a long time. It is the first pilot enterprise to implement the integration of breeding, propagation and promotion in China. It has formed a stable development industrial model, which meets the requirements of the national industrial development support policy.
The company’s main products include corn, wheat, rice, vegetables, flowers and other species (seedlings). The profit of the company mainly comes from corn hybrids, and the main varieties are Denghai, Xianyu series and other corn hybrids.
(I) at present, the company’s main business model is as follows:
1. Research and development mode of new varieties
(1) Main crop breeding procedures of the company
Maize breeding procedure: combination of basic materials → cultivation of inbred lines through selfing, backcross and haploid induction → determination of combining ability of inbred lines → combination of hybrids according to breeding objectives → product comparison test, regional test and production test → approval → popularization and application
(2) Breeding conditions and breeding cycle
The company has national and provincial R & D platforms such as national corn Engineering Technology Research Center (Shandong), national recognized enterprise technology center, Shandong provincial enterprise key laboratory and so on. More than 3000 mu of breeding experimental field, more than 20000 square meters of greenhouse and more than 100 sets of instruments and equipment. It can meet the needs of breeding.
Maize breeding cycle is divided into two stages, one is inbred line breeding stage, the other is hybrid combination and experiment stage. In the breeding stage of inbred lines, conventional breeding and haploid induction are mainly used. Conventional breeding generally requires 6-8 generations of breeding process, and it takes 3-4 years to breed in the South and North; Haploid induction can generally complete the breeding process in 2 generations, which takes 1-2 years. The hybrid combination and test stage generally takes 6-7 years, including 1 year for combination, 1 year for comparison, 1 year for product comparison, 1 year for pre-test, 2 years for regional test and 1 year for production test.
(3) Implementation subject of R & D activities
The main R & D body of self bred varieties is the corn Research Institute of the company.
(4) Ownership of R & D achievements
The ownership of R & D achievements belongs to the company.
2. Production mode
(1) Production mode and process
The company’s seed production mainly adopts the mode of “company + farmer”, entrusted reproduction, and the combination of “company + base” and “company + contractor”. The specific production organization process is as follows: the company formulates the seed production plan of the current year according to the sales plan, including the production quantity and seed production area, and reasonably allocates the seed production bases in each region. For the mode of entrusted seed breeding, the company signs seed production contracts with entrusted seed producers in various regions to agree on the entrusted seed production area, quantity, settlement price and seed quality requirements. The entrusted seed producers are responsible for the implementation of seed production area, isolation of seed production area, technical guidance and other field seed production work, so as to ensure that the seeds produced meet the standards agreed in the contract; If the mode of “company + farmer”, “company + base” and “company + contractor” is adopted, the company is responsible for providing seed production parents and supervising, managing and guiding the whole seed production process. The planter (Contractor) is responsible for producing seeds according to the technical requirements. After the seeds are mature, the company will uniformly purchase and transport them to the seed processing plant established by the company in the local area.
(2) Risk of production mode
Because the whole process of seed production is carried out in the field, the yield and quality of seeds are greatly affected by natural disasters such as abnormal climate, drought and flood, early frost and so on.
In addition, whether the technical guidance of the entrusted seed producers is appropriate and whether the growers are in place in strict accordance with the technical requirements will also have a certain impact on seed production. According to industry rules, if the loss is caused by climate, the company, entrusted seed producers and growers shall negotiate and jointly bear the loss; If it is a entrusted seed producer or grower, the losses caused by management problems shall be borne by itself.
3. procurement mode
The materials purchased by the company are mainly seed packaging materials and seed coating agents. The procurement plan of seed packaging and seed coating agent is mainly formulated according to the annual sales plan. The selection of suppliers is mainly determined by inquiry and centralized procurement to ensure high quality and good price.
4. Sales model
(1) Sales mode and its operation mode
The company’s seed sales mainly adopt the sales mode of county-level dealers. The seed sales season lasts from July of the current year to June of the next year. In the second half of each year, the company signs sales agreements with regional dealers. Dealers take delivery after paying in advance according to the delivery price stipulated by the company, and county-level dealers set up contracted retailers in villages and towns to sell to farmers. After the end of the whole seed sales season, the company will settle with the dealer according to the sales agreement and relevant sales policies.
(2) Risk of sales model
Driven by interests, while selling the company’s products, some dealers may sell the products of other companies in the same industry, affecting the promotion of the company’s products. Some dealers cross regional goods, affecting the market order of the company’s products and the enthusiasm of other dealers.
(3) Changes in sales model
With the accelerating speed of rural land transfer, the new customer groups of seed industry such as large planting households, family farms and agricultural cooperatives are obviously on the rise. The company improves and perfects the marketing model and provides customers with whole process services before, during and after production to adapt to the changes of sales model.
5. Warehouse management mode
Based on the principle of timely supply and saving storage expenses and transportation costs, the company has set up corresponding seed warehouses in the centralized seed production area, the centralized finished product supply area and the finished product supply center to realize the collection and storage of semi-finished seeds, the collection and storage of seeds after finishing and the weekly transfer of seeds to be sold.
(1) Seed in / out management
According to the company’s seed allocation plan, the production and processing department shall issue internal allocation documents, and the semi-finished seeds roughly processed by the production base shall be directly sent to the processing plant. After the seeds arrive at the processing plant, they shall be verified by the keeper and quality inspector for seed warehousing.
After receiving the delivery notice from the sales department, the production and processing department shall notify the processing factory. The processing plant shall go through relevant procedures and handle the delivery of seeds.
(2) Management during storage
Adhere to the five prevention principles of fire prevention, anti-theft, rain and snow prevention, insect moth prevention and mixed prevention, and focus on the pest inspection and fumigation of seeds before warehousing. The quality inspection department shall take samples before and after fumigation for bud rate comparison test, check the warehouse conditions after fumigation, confirm the fumigation quality, and issue fumigation report. The seeds shall be inspected regularly during storage to ensure that there are no insects, mildew, rats, birds, accidents and mixing. Dehumidifiers or (and) quicklime blocks are used in the constant temperature warehouse to reduce the humidity of the warehouse. With the change of climate, the normal temperature warehouse adopts ventilation and sealing methods to control the temperature and relative humidity of the warehouse, reduce the temperature and moisture, and eliminate harmful gases.
(II) main performance drivers
During the reporting period, the oversupply situation of corn seed market has improved, but the number of approved varieties is large, the degree of homogenization is high, and the market competition is still fierce. Facing the severe market situation, the company seized the opportunity of the recovery of commodity corn purchase price and corn seed demand, increased the sales of corn seeds, achieved an operating revenue of 110727 million yuan, a year-on-year increase of 22.20%, and the net profit attributable to the shareholders of the listed company was 2327988 million yuan, a year-on-year increase of 128.33%. The main reasons for the company’s performance growth are: driven by the rising commodity grain price, farmers’ enthusiasm for growing grain has further improved, the company’s seed business has improved, and the sales of corn seeds, wheat seeds and rice seeds have increased compared with the same period of last year. Among them, the profitability of subsidiaries increased significantly.
1. Development stage of the company’s industry
2021 is the first year of the 14th five year plan, and China’s seed industry has ushered in a new historic stage of development. At the central economic work conference at the end of 2020, it was proposed for the first time to “solve the problem of seeds and cultivated land”, carry out the technical breakthrough of seed source “neck sticking”, and be determined to fight a turnaround in the seed industry. In July 2021, the 20th meeting of the central comprehensive Deepening Reform Commission considered and adopted the action plan for the revitalization of seed industry Xi Jinping General Secretary stressed that to implement the strategy of rural revitalization, we must take ensuring the important Shenzhen Agricultural Products Group Co.Ltd(000061) especially the food supply as the primary task, put improving the comprehensive agricultural production capacity in a more prominent position, and truly implement the principle of “hiding grain in the ground and technology”. Seeds are the foundation of agricultural modernization. We must promote the national seed industry and raise the safety of seed sources to a strategic height related to national security. This fully reflects the great importance attached by the Party Central Committee with Comrade Xi Jinping as the core to the seed industry and the firm determination of the Central Committee to promote the revitalization of the seed industry. The National People’s Congress revised the seed law and further improved the rules and regulations related to the seed industry, which will greatly promote the protection of intellectual property rights and the development of the seed industry in the future.
The development of seed industry ushers in new opportunities and challenges. The industry presents the following development trends:
(1) With the promotion of various national policies and measures for the development of the seed industry, the supervision of the seed market has been strengthened, and the development environment of the seed industry has been more optimized, which has promoted the rapid development of the seed industry and steadily improved the industry concentration. Through the merger and reorganization of enterprises, we will further gather superior resources in China’s leading industries, and actively gather resources in the international market; Small and medium-sized enterprises with certain advantages are gradually developing towards regional and professional companies. The top 50 seed enterprises have continuously increased their scientific research investment, significantly improved their innovation ability, and become the main body of breeding innovation.
(2) Agriculture has changed from increasing production to improving quality, so as to promote the green and high-quality development of agriculture. The upgrading of varieties was accelerated, and the variety R & D showed a diversified development trend in the directions of high-quality and special use, green environmental protection, disease resistance and stress resistance, resource efficiency, suitability, light simplification and mechanization.
(3) The degree of homogeneity of breeding in China is high, and the proportion of derived varieties is relatively high. Affected by the accelerated speed of variety approval in recent years, the “blowout” in the number of new maize varieties approved, the homogenization of varieties and the high inventory, there is vicious competition at low prices in the market, which affects the growth of industry profits.
(4) In recent years, corn feed consumption and processing consumption have increased, the gap between production and demand has expanded, and the relationship between supply and demand has changed from basic balance to tightening. The rise in the price of corn commodity grain has played a positive role in promoting the recovery of corn production and the rise of seed demand.
(5) In 2020, the commercialization of genetically modified organisms in China accelerated, and four domestic maize varieties and three soybean varieties were successively approved with agricultural genetically modified organisms safety certificates. If China’s genetically modified seeds are commercialized, it will promote the expansion of the seed industry, reshape the pattern and improve the market concentration.
(6) The Ministry of agriculture and rural areas started the three-year clean-up action of 29 registered varieties of non major crops and made every effort to clean up homogeneous varieties with the “imitation seed” rectification of Zhejiang Sunflower Great Health Limited Liability Company(300111) . The national and provincial variety registration departments shall strengthen the examination of registration license according to law, strictly standardize variety naming, and play a positive role in promoting the high-quality development of seed industry. In the first half of 2021, 2595 varieties were applied for registration, 1969 varieties passed the provincial examination, and 1320 varieties were approved and announced in 4 batches at the ministerial level, a decrease of 60% over the same period. The rapid growth in the number of variety registration applications across the country has begun to slow down.
(7) The newly revised “seed law” has expanded the protection scope and links of new plant variety rights; Strengthen the protection of germplasm resources; Add a substantial derivative variety system to stimulate the original innovation of breeding and solve the serious problem of seed homogenization from the source; Strengthen the crackdown on fake and inferior seeds, improve the tort compensation system, and improve the deterrence against violations of new plant variety rights.
2. Company status
The company is a number of technological innovation platforms with industry influence, such as the national corn Engineering Technology Research Center (Shandong), the national high-tech enterprise, the national innovative enterprise, the national corn new variety technology research and promotion center and the national recognized enterprise technology center, the post of Taishan scholar in Shandong Province, the Key Laboratory of corn breeding and cultivation technology enterprises in Shandong Province, and the strategic alliance for technological innovation of corn industry; The company was incorporated into the key laboratories of the state and the Ministry of agriculture.
