Jinyuan Seed Industry restarted its IPO. According to the company's announcement on April 8, the Beijing Stock Exchange has agreed to resume the company's public offering of shares and listing review on April 2. Jinyuan Seed has submitted a reply to the audit inquiry letter and related update documents to the Beijing Stock Exchange.
Founded in 2004, Jinyuan Seed Industry mainly uses modern agricultural technologies such as modern biotechnology and big data information technology to cultivate new varieties of major crops such as corn and wheat. In July 2022, it was listed on the New Third Board. In November 2022, the company terminated its plan to make an initial public offering and list on the Growth Enterprise Market (GEM) and switched to the Beijing Stock Exchange.
Previously, Jinyuan Seed Industry planned to issue no more than 34.04 million shares (including the number of shares), accounting for no more than 25% of the total share capital after the issuance, and planned to raise 322 million yuan. Accordingly, the issuance valuation is about 1.288 billion yuan.
Jinyuan Seed Industry plans to use the raised funds for the construction project of the Commercial Breeding Engineering Technology Research Center, the construction project of the 12,000-ton-per-year fully automated corn seed processing, storage and transportation center in Zhangye (Phase I), the Xinxiang 12,000-ton-per-year corn seed finishing and production base project, and replenish working capital.
However, during the critical period of the IPO, Jinyuan Seed Industry was suddenly sued.
According to a previous report by Jiemian News, Henderson Limagrand accused Jinyuan Seed Industry of producing the above 7 varieties of corn seeds without permission with "NP01154" as the parent and selling them to the outside world, with a total production area of more than 30,000 acres of infringing varieties. Request Jinyuan Seed Industry to stop the infringement and compensate for economic losses of 160 million yuan.
Jinyuan Seed announced that due to the receipt of litigation documents related to the dispute over the right of new plant varieties on October 12, according to relevant regulations, the company and the sponsor submitted an application for suspension of listing review to the Beijing Stock Exchange on October 16. On October 16, the Beijing Stock Exchange adjusted the company's listing review status to suspend the review.
By January 3, 2024, Jinyuan Seed Industry issued an announcement in the evening that Henderson Limagran sued Jinyuan Seed Industry for compensation of 160 million yuan and did not receive court support.
Soon after, on January 10, Jinyuan Seed Industry submitted to the Beijing Stock Exchange the "Application of Henan Jinyuan Seed Industry Co., Ltd. on the Resumption of Review of Public Offering of Shares to Unspecified Qualified Investors and Listing on the Beijing Stock Exchange", and the Beijing Stock Exchange agreed to resume the company's public offering of shares and listing review. However, because the financial information recorded in the company's issuance and listing application documents has expired, it needs to be supplemented.
However, in fact, the litigation risk faced by Jinyuan Seed Industry has not been resolved.
On the evening of January 29, Henan Jinyuan Seed Industry Co., Ltd. issued an announcement on the progress of major litigation. According to the announcement, in the case of Henderson Limagland v. Jinyuan Seed Industry New Plant Variety Rights Dispute, Henderson Limagland was dissatisfied with the first-instance judgment and appealed to the Supreme People's Court. On January 25, Jinyuan Seed received the civil appeal brief of Henderson Limagrande served by the court. So far, the second-instance trial has not yet been held.
In this regard, Jinyuan Seed Industry said that this lawsuit has adversely affected the use of some bank accounts of Jinyuan Seed Industry Headquarters to a certain extent, and the varieties involved in this lawsuit are not the company's main sales varieties, and the sales proportion is very small (about 2% cumulatively), and it will not have a significant adverse impact on the company's operating conditions, and the company's production and operation are normal.
It is worth noting that before the resumption of the IPO, Jinyuan Seeds also announced its 2023 annual report.
In 2023, Jinyuan Seed Industry will increase its revenue without increasing profits, with an operating income of 361 million yuan, an increase of 20.35% over the same period of the previous year, and a net profit of 47.2156 million yuan, a year-on-year decrease of 27.41%.
According to the prospectus, from 2020 to 2022, the operating income of Jinyuan Seed Industry will be 250 million yuan, 290 million yuan and 300 million yuan respectively, and the net profit will be 51.64 million yuan, 58.53 million yuan and 65.82 million yuan respectively.
Jinyuan Seed Industry said that the operating profit decreased by 22.8294 million yuan or 33.47% over the same period last year, mainly due to the decrease in investment income from the disposal of financial instruments.
The gross profit margin of Jinyuan Seed Industry in 2023 decreased by 6.17% over the same period of the previous year, mainly due to the increase in sales revenue of wheat seed and grain trade, which increased the proportion of revenue, while the gross profit margin of wheat seed and grain trade was lower than that of corn seeds.
According to the annual report, in 2023, the revenue of corn seeds will be 224 million yuan, an increase of 2.85% year-on-year, and the gross profit margin will be 40.72%, and the revenue of wheat seeds will be 84 million yuan, an increase of 23.19% year-on-year, and the gross profit margin will be 21.35%.
In addition, at the end of 2020, Jinyuan Seed Industry reached a strategic cooperation with Hangzhou Ruifeng in the development of genetically modified corn material technology. Through the cooperation between the two parties, Jinyuanyu 177K developed by Jinyuan Seed Industry has also become one of the first 37 transgenic corn varieties approved by the variety test.
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Article source: Jiemian News
Editors of this issue: Chen Xinrui and Wei Rong
Review in this issue: Zhai Yiting
Producer of this issue: Zheng Hongyan
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