Dunhuang Seed Industry's stock price expansion shrinks

In the recent weak secondary market, Dunhuang Seed Industry (600354) has been very strong: Since July, the stock price has risen more than 60%, and as of August 27, the closing price has reached 28.8 yuan. However, the company's semi-annual report disclosed a few days ago shows that the company's corn seed production this year compared with the normal year, the greater the rate of decline.

According to the semi-annual report of Dunhuang Seed Industry, during the reporting period, the company realized revenue from its main business of RMB 615 million, realized a net profit of RMB 50.675 million, and was attributable to the parent company’s net profit of RMB 1.18800 million, which turned losses into profits over the same period of last year. Basic earnings per share 0.0063 yuan. Although the operating results have increased significantly compared to the same period of last year, the overall business of the company still shows a significant impact on agricultural product price fluctuations and seasonal, cyclical production and operating characteristics of the industry.

During the reporting period, Dunhuang Seed Industry implemented an area of ​​169,400 mu of corn. However, due to the high temperature in the middle and late July, the company's corn planting and pollination was poor and had a great impact on the seed production this year. According to investigations by the seed management department and the company’s relevant experts, due to the early low temperature, high temperature in late July, especially during the cross-pollination period of more than ten consecutive days of high-temperature weather, the company’s corn seed production bases generally have lower seed setting rate, and will As a result, this year's corn seed production output compared with normal years, the overall reduction in production is greater. In addition, in the company's business risks, the current high lint prices, will lead to high raw cotton acquisition costs, the company's cotton industry is still facing operational pressures and operational risks; cotton oil prices are running low, sales are slow, inventory pressure.

The reporter interviewed senior executives of the Dunhuang Seed Industry by telephone. The executive said that the company’s management will actively take various measures to deal with the various unfavorable factors facing the development of the main business.

Regarding the strong performance of Dunhuang Seed Industry in the secondary market recently, the executive said that it could not understand that the company did not have information that should be disclosed but not disclosed. It is hoped that investors will read the company’s publicly disclosed information carefully, pay attention to investment risks, and exercise caution. Make investment decisions.