On September 27, 2021, Dabeinong (002385) issued an announcement that Zhong Kaifeng of Guotai Junan Securities Co., Ltd., Mao Yifan of Zhengxin Valley Investment, Li Yanling of Life Insurance Asset Management Co., Ltd., Cao Xinrui of Industrial Securities, Sheng Xia of CITIC Securities, Yang Sisi of Xinhua Asset Management, Zhou Shuyue of GF Securities, Lu Di of Diangang Investment, Chen Lian of Tianfeng Securities, Zhao Jinhou of Shenwan Hongyuan Securities, Li Yiran of Kaiyuan Securities, Wang Xiaohua of Chongyang Investment, and Zhang Ning of Shanghai Seaview Assets investigated our company on September 23, 2021. The survey was received by Liu Shi, President of Dabei Crop Science and Technology Industry, Xu Daming, Director of Technology Promotion Department of Dabei Agricultural Biotechnology Company, and Chen Zhongheng, Secretary of the Board of Directors.
The main contents of this survey are:
I. Introduction of Biotechnology Company Biotechnology Company was established on November 15, 2010, and in June 2004, the company organized the first GMO seminar held by relevant domestic scientific research experts and academicians, which started very early and laid out the international and domestic markets. At present, the scale of 150 people, more than 80% of the personnel are under 35 years old, more than 50% are master's, doctoral degree or above, and the doctoral team of Dabeinong Group is estimated to be more than 200 people. In 2013, the Argentine company (holding) was established to carry out biotechnology development in the local area. At present, more than 100 international patents have been applied for. Rich technical reserves: Since 2010, about 100 million yuan has been invested every year, and soybean and corn biotechnology has progressed to the second and third generations of research and development. The 9935 variety was the first declaration to the Ministry of Agriculture in 2015, with more technical reserves, soybean research and development plans arranged until 2035, and corn research and development plans arranged to 10 years later.
Second, on biotechnology
1. Biotechnology is different from traditional agricultural technology, and the barrier to entry is very high. Traditional seed fertilizers and pesticides have low thresholds, and there are many competitors in the same industry, while biotechnology companies are few. The same is true of 20 years of international commercialization experience. It's a high-threshold industry, and Great Northern Agriculture occupies a good track. Biotechnology is a huge investment in research and development. It is expected that the number of biotechnology companies in the Chinese market will not be small in the future, within 5.
2. At present, it has carried out substantive cooperation with international companies. The company's patents and technologies are attractive and advantageous, and international companies review for up to 3 months, which is also the recognition of international companies for companies.
3, the third generation of technology many people are doing, biosafety certificates are 1-2 years late, in fact, after getting the biosafety certificate, it takes a long time 1) It takes 2-3 years to introduce traits into the parental inbred line; 2) The time to expand the parents takes 2-3 generations, about 1-2 years; 3) It takes 3-4 years overall (from getting the trait safety certificate to commercialization). There are many new varieties pushed by the market every year, but only about 10% can stand up, and Dabeinong mainly imports traits for the existing old varieties that stand firm.
3. Exchange questions and answers
1. Is this transgenic variety approved as a new variety or an old variety? It is highly likely that after 1 year of observation, it is confirmed that there are no other linkage trait reactions except for transgenic traits.
2. At that time, how did Monsanto benefit from the promotion of insect-resistant cotton? The pricing of multinational companies is different from that in China, Monsanto is from the excess benefits it creates to share 20% of the proportion, such as creating 100 yuan of interests, collecting 20 yuan, and the cost has nothing to do, at that time China's wool seeds 2 yuan 1 kg (10 kg can be), Monsanto's light seeds 42 yuan 1 kg (1 kg can be), the extra 22 yuan is equivalent to the cost of recovering the loss of insect-resistant cotton and insecticides to price. Later, cotton cultivation was concentrated in Xinjiang, the climate was dry, and the cotton bollworm was not serious and was no longer a big problem. At present, the country attaches much higher importance to the protection of intellectual property rights than before.
3. What is the future and the share of benefits of seed companies? Foreign enterprises generally take 20-30% of the excess benefits created, foreign intellectual property rights protection is better, and individual companies have strong technology. It is more reasonable to take 15-20% in China. More than 200 pieces of excess income per mu of land, 20-30 pieces to farmers, the remaining traits, seeds, channels to divide, channels to take the most, because the channels for many farmers, do more work, trait companies take second, seed companies take the least. There will also be competition at the trait level in the future, but Dabeinong will not take the low-price route because the trait has a comparative advantage.
4. How are american traits charged? Technology royalties are charged because Monsanto is technologically advanced in the United States, has a certain monopoly advantage, and seed companies are divided into links, more than 70% of the proportion.
5. How to manage intellectual property rights at the practical level? Dabeinong only cooperates with the standardized big seed company, and there are codes and other marks. In the later period, Dabeinong will also do market spot checks, and the cost of spot checks is relatively low.
6. The current number of dabei agricultural cooperative customers? There are more than 40-50 major cooperative enterprises, divided into core, close and ordinary cooperation, involving more than 180 varieties, and have been substantially transferred to traits (backbone enterprises and backbone varieties have established cooperation). There are exclusive cooperations and there are non-exclusives. There are several important companies that originally chose not to be Dabeinong, but later found that Dabeinong's was better and switched to Dabeinong. In the era of transgenics, there will be a significant reshuffle of seeds, in the past, small companies in some areas through adaptation, marketing, has a place, and GM import costs are higher, will give up small varieties, large companies dozens of varieties, will not all import GMOs, will not exceed half. And in the past, there were some small varieties that had a yield advantage of 3-5% in local areas, while GMos could get a 10-15% yield advantage and beat its advantage.
7. The protection of domestic variety rights is stronger than that of patent rights, will Dabeinong seek variety rights in the future? Dabeinong is a patent right, and trait genes should not claim variety rights. The scientific research of seeds and genes is 2 lines within Dabeinong. Foreign enterprises themselves transform 2/3 of the varieties, and transform to third-party varieties account for 1/3.
8, transgenic traits, in addition to the time of different companies to do sooner or later, are there other differences? The GM threshold is high, and not everyone can do it after the patent expires. In addition, new products will appear to meet market demand. With the accumulation of technology and market, the threshold of competition will become higher and higher.
9. The future shareholding structure of Dabeinong Biotechnology Company? At present, two war investments have been introduced, with a shareholding ratio of more than 9% and a company shareholding ratio of 63%; The shareholding ratio will not decline, and Great Northern Agriculture holds the biotechnology technology company.
10. What are the future plans of biotechnology companies? The first is to promote biotechnology well; The second is to promote internal integration, in the past, the subsidiary companies of Dabeinong developed independently and the synergy was worse; The third is to strengthen the development of the international market, and at present, Dabeinong has regular international business meetings every 2 weeks.
11. How much profit contribution can South American soybeans generate? The market size in South America is similar to that in China, but the pace is later than in China, because it involves regulations in more countries. Cooperation models range from cooperation with local enterprises to cooperation with multinational enterprises.
12. How about South American corn? At present, Dabeinong is mainly a second-generation product and cooperates with seed companies. The company's current traits can be supplemented and are lower than Monsanto's.
Dabeinong's main business: technology development, technical services, technical consulting, technology transfer; Animal husbandry and veterinary scientific research and experimental development; Technological development of animal nutrition and health products; Agricultural information technology development and services; Sale of feed; Export of feed and animal nutrition and health products produced by the enterprise; Import raw and auxiliary materials, machinery and equipment, instruments and meters and spare parts required for production and scientific research of the enterprise; Sale of veterinary drugs (it is strictly forbidden to trade biological products for veterinary prevention); Feed processing (limited to branch operations); Operate telecommunications business. Enterprises independently choose business projects and carry out business activities in accordance with law; The operation of telecommunications business and projects subject to approval in accordance with law shall carry out business activities in accordance with the approved content after approval by the relevant departments.
Dabeinong's 2021 interim report shows that the company's main revenue was 15.268 billion yuan, up 69.8% year-on-year; net profit attributable to the mother was 499 million yuan, down 44.15% year-on-year; deducted non-net profit of 347 million yuan, down 55.03% year-on-year; debt ratio was 46.98%, investment income was 116 million yuan, financial expenses were 146 million yuan, and gross profit margin was 14.2%.