Dunhuang Seed Industry Cotton Efficiency Continues To Decline Or Start Stripping Plan

< p > as an old seed enterprise, Dunhuang seed industry (600354, closing price of 8.63 yuan) was poor in 2012. Now it is facing a huge loss of 120 million yuan, while the a href= "//www.sjfzxm.com/news/index_c.asp" > cotton < /a > business downturn has become the main force of deficit.

As early as last year, the Dunhuang seed industry made it clear that it would divest its cotton business. But a year later, the matter was put on the shelf.

Yesterday, the a href= "//www.sjfzxm.com/news/index_p.asp" > Dunhuang < /a > seed industry announcement announced that it was going to sell its cotton plant.

Some investors believe that its cotton stripping plan is about to start.

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< p > however, the reporter learned from the seed industry in Dunhuang that the company really expects to strip cotton industry, but it is hard to find a supplier, so far no progress has been made.

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< p > < strong > Company: there is no progress in divestiture plan < /strong > < /p >

< p > yesterday, in order to revitalize assets and reduce unnecessary losses, the board of directors of Dunhuang seed industry considered and passed the motion to deal with the existing assets of its cotton plant.

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< p > according to the announcement, the first factory of Dunhuang Cotton Corp (cotton one factory) has become the object of this asset disposal, its assets include land, plant, processing equipment, etc.

Among them, the land is undoubtedly the main asset of the first plant of the cotton plant. The plot is located in the South Ring Road of Dunhuang, with an area of 46 thousand and 300 square meters (69.47 mu).

The assets of the first plant of the cotton plant are valued at 6 million 183 thousand yuan, and the assessed value is 23 million 745 thousand and 500 yuan.

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< p > at the same time, the Dunhuang seed industry indicated that the above disposal "a href=" //www.sjfzxm.com/news/index_cj.asp > assets < /a > the bottom income will not be less than 25 million yuan, and the disposal of assets will eventually be based on the asset disposal agreement signed.

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< p > as early as last year, the Dunhuang seed industry once said in the 2011 Annual report that the cotton industry can gradually pfer and weaken operational risks through grafting, reorganization or overall pfer and asset stripping.

Now, a year has passed. Does this mean that the divestiture plan will be officially opened? < /p >

< p > in response to this situation, the reporter called Dunhuang seed industry as an investor. Yang Jie, a securities affairs representative, said that the first plant of cotton was a processing plant set up in the middle of 50s.

In fact, due to the failure to carry out the normal acquisition and processing business in the cotton purchasing season, the cotton plant has already ceased its acquisition and processing business since 2005.

Up to now, all factory buildings, equipment and office facilities are idle.

She further pointed out that the cotton business accounted for about 30% of the company's revenue, but the boom in the industry declined year by year, which has become a drag on the company's performance.

In view of this fact, the company made plans for stripping cotton business last year.

However, since no enterprise or individual is willing to take over, the plan has not made much progress.

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< p > < strong > cotton business continued loss < /strong > < /p >

"P >" overall, in recent years, the domestic seed industry has been out of stock for a long time, and the profitability of the relevant companies is not ideal.

Compared with other peers, cotton and food business are being dragged down by many other businesses, and Dunhuang's seed business is even worse.

A brokerage researcher said.

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< p > in fact, the above views have been verified by data. In 2011, Dunhuang's annual net profit was only 15 million 660 thousand yuan, down 80.59% from the same period last year.

Reporters noted that the company's cotton business has significantly reduced net profit, the company's cotton business to achieve operating income of 402 million yuan, but a loss of 25 million 598 thousand and 500 yuan.

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< p > in January this year, Dunhuang seed industry has predicted that its performance last year will be a huge loss of 120 million yuan, which is also the first loss of the company in 5 years, and the cotton and food industry will once again become a burden on performance.

Yang Jie told reporters that because of the downturn in the textile industry last year, the cotton market prices fell back, the company's cotton business has been operating in the loss.

In addition, the domestic edible oil market is weak and the price is depressed for a long time, and the food business is not satisfactory.

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< p > besides, the researcher also reminded that the average gross profit margin of the seed industry listed companies showed a downward trend overall, and the average gross profit margin of the industry has dropped to 25.5%.

Up to the end of the 3 quarter of 2012, the gross profit rate of the seed industry (002041, closing price 24.83 yuan) had dropped from 58.14% at the end of 2011 to 53.40%, and Long Ping high tech (000998, closing price 21.91 yuan) decreased from 35.41% to 31.60%.

By contrast, the gross profit margin of Dunhuang's seed industry has fallen far beyond its peers. The figure dropped sharply from 34% in 2011 to 8.6%, down 25 percentage points.

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