Performance overview of listed seed enterprises in Q1-Q3 2012Summary: Potato industry in Gansu is facing an opportunity brought by increasingplanting area, growing demand and well-developed seed production.Tags:
Non-transgenic soybean, net profit, acquisition, TYLCV, sweet pepper, cucumber, cornhybridsThe performance differentiation of listed seed companies in China in the first three quarters isbasically the same with that in H1 this year, since Q3 is usually the off-season for corn and riceseed sales at home. Seed players with reasonable business structure and sensible operatingstrategies could generate increasing profits while those with poor status generally witnesseddeclined performance
according to CCM’s October Issue of
.In aspect of net profit, Longping High-tech and Winall Hi-tech achieved sharp growth in the firstthree quarters this year mainly due to their efforts in seed business expansion. On the contrary,Hefei Fengle and Shandong Denghai suffered a remarkable decline in net profit; GansuDunhuang continued to suffer loss in Q3 2012, mainly due to its sluggish cotton and foodprocessing businesses. It seems that the enhancing and expanding seed business has brought good returns for seedcompanies like Longping High-tech and Winall Hi-tech, while some players like Hefei Fengle andGansu Dunhuang have been implicated by non-core businesses with a high proportion incompany's total revenue.Some listed seed companies have started the distribution of seeds earlier for the marketing year of 2012/2013. For example, Shandong Denghai and Hefei Fengle have received increasingadvance from customers in Q3 2012, which would be conducive to their performance rebound in2012. Shandong Denghai started the corn seed distribution in Sept., with more promotions for itsdistributors. Thanks to the good performance in field planting, "Denghai 605", a leading cornhybrid bred by Shandong Denghai, has seen a price increase of seeds, probably to createhandsome profits for the company. However, the annual performance of Shandong Denghaiwould be not so optimistic in 2012, mainly in view of the declining profits of "Xianyu 335"promoted by its joint venture with Pioneer Hi-Bred International Inc.