Su Ken Nong Fa achieved operating revenue of 4.332 billion yuan in the first half, down 5.59 percent year on year, with net profit attributable to the parent of 144 million yuan, down 32.48 percent, and non-GAAP net profit of 116 million yuan, down 33.85 percent. Performance has been under pressure for multiple reporting periods. At the semi-annual results briefing held on September 28, some investors questioned whether management was simply relying on the weather. Company chairman Deng Guoxin responded that the grain industry has strong cyclical attributes and grain price fluctuations are the core external variable affecting profitability, but management is not simply relying on the weather, and all business segments are continuing to push for efficiency gains. Deng Guoxin said the company is working on four fronts to turn performance around: optimizing product and order structures, reducing costs through smart agriculture and high-standard farmland, strengthening working capital management, and advancing new variety research and development. However, because agriculture is constrained by grain price cycles and climate, it is difficult to give a precise timing for a performance turnaround. Chief financial officer Yuan Xiaobin explained that the 167 million yuan in net cash flow from operating activities in the first half, down 76.84 percent year on year, was mainly due to increased procurement and stocking of agricultural inputs and slower sales of agricultural product inventory compared with the same period last year. Deng Guoxin also said that so far El Niño has not caused any substantial major impact on the company's production this year, and the company will continue to track assessments by the National Climate Center and dynamically adjust farming arrangements.
Jiangsu Provincial Agricultural Reclamation and Development Co LtdSu Ken Nong Fa reported H1 revenue down 5.59% and net profit down 32.48%, with operating cash flow down 76.84%.
