Yuan Longping High-Tech Agriculture Co., Ltd. (Longping High-Tech) unveiled its 2018 annual report in April 2019, in which it reported a 12.2% increase in the whole-year revenue to USD533.4 million, and a 2.5% rise in net profit attributable to shareholders of the listed company to USD117.9 million compared with the previous fiscal year.
Table 2: Financial performance of Longping High-Tech, 2017, 2018 (million USD)
Cost of sales
Source: Longping High-Tech
The company registered growth in revenue of all business sectors in 2018, including rice seed, corn seed and vegetable seed etc. Specifically,
² Rice seed: 2018 revenue USD316.6 million, up 9.4% year on year.
Longping High-Tech succeeded in maintaining its leadership on the domestic market of hybrid rice seed and a continuously rising market share. During the past five years, the company has kept achieving growth in performance of rice seed business by the aid of two series of high-quality products including Longliangyou (隆两优) and Jingliangyou (晶两优). Among these products, Jiangliangyou 534 (晶两优534), Jingliangyou Huazhan (晶两优华占), Longliangyou Huazhan (隆两优华占) and Longliangyou 534 (隆两优534) rank among the top 10 varieties by extension areas of hybrid rice seed in China.
² Corn seed: 2018 revenue USD89.8 million, up 72.5% year on year.
Corn seed business of Longping High-Tech also displayed an explosive growth. In 2018, the company acquired 90% shares in Beijing Lantron Seed Co., Ltd., strengthening its domestic market layout of corn seed business. Previously, Longping High-Tech announced that it had finished acquisition of the corn seed business sector of Dow AgroSciences LLC in Brazil at a price of USD1.1 billion, and the acquired subsidiary was renamed LP Sementes. This move could help Longping High-Tech increase its market share on the international market of corn seed.
² Other seed varieties:
During the past five years, Longping High-Tech has been proactively making strategic planning for a comprehensive business layout covering various kinds of agricultural crops with the aid of abundant capital. Besides Beijing Lantron Seed Co., Ltd., outstanding companies breeding cucumber and confectionery sunflower including Tianjin Derit Seed Company Ltd., Hebei Universe Agriculture Science & Technology Co., Ltd. and Sanrui Agritec Co., Ltd. have also become its subsidiaries.
Supported by the rapid development of main business sectors, Longping High-Tech managed to delivered prosperous financial performance. From 2014 to 2018, its revenue increased from USD270.4 million to USD533.4 million, and the net profit climbed from USD54.1 million to USD117.9 million.
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