The world’s leading seed industry company, focusing on the research, production, sales and service of agriculture products. Head office located in Changsha, China.
- Industry: Longping Hi-Tech is mainly engaged in the research and development (R&D) of plant operation and the agricultural service.
- Product: Longping Hi-Tech’s product covers high-tech crop seeds of hybrid rice and vegetables, which includes the business of cultivation, breeding, promotion and sales.
- Market: Longping Hi-tech has the largest hybrid rice seed supply base. The market share of rice seeds exceeds 17% (largest in China). It also has the largest vegetable seed distribution center in Asia.
Source: www.eastmoney. com
Note: The first trading vacancy was rom February 26 to March 16, 2018, suspend trading for the company’s merger and acquisition. The second trading vacancy was from August 15 to August 22, 2018, suspend for the company’s asset restructuring activities.
The Longping High-Tech semi-annual report 2018 stated operating income of ¥13.49 billion, an increase by 22.2%, and net profit is ¥1.58 billion, a decrease of 32.69% YoY. This is due to the increase of financial cost, sales expense and administration expense. The company’s sales expense ratio was 10.28%, the management expense ratio was 11%, and the financial expense ratio was approximately 7.66%. Long Ping also holds shares in the companies of Brazil projects, the return for this long-term equity investment project accounted for approximately ¥60.61 million. However, the revenue has not yet been settled in the first half of 2018, this also contributes to the decrease of net profit.
Characteristics of the Chemical Materials Company
- The growth of M&A business keeps the company dominant in the Chinese market
- Increased R&D investment to enhance the firm’s core competitiveness
- Higher-than-expected growth of corn in 2018
- Trade war promotes the independent development of China’s agricultural planting industry, and Chinese government policies support the agricultural industry
Potential Cautions for the Industry
- Agricultural Policy Risk
- Natural Disaster Risk