Kenfeng Seed: net profit -21.2% to USD52.6 million in 2016

The seed company listed on the New Third Board (= National Equities Exchange and Quotations), Beidahuang Kenfeng Seed Co., Ltd. (Kenfeng Seed) recently released its full-year 2016 financial figures. Specifically, its revenue was down by 14.9% year on year to USD245.9 million and its net profit down by 21.2% to USD52.6 million.

Kenfeng Seed is mainly involved in the R&D, production, processing, promotion and sales of crop seeds covering corn, rice, soybean, triticeae crops and beet, and is offering related services.

Its fall in revenue is mainly because of the adjustment of the government’s corn industry policies and the corn price decreases. In its key sales region, the government promoted the policies to reduce the corn planting area and to cancel the corn temporary purchase for storage, which caused a fall of 18.3% in its revenue from corn seed business.

Its rice seed business recorded a decline of 11.4% in revenue, mainly because of the price war and the subsequent dumping at low prices by distributors.

Its revenue of soybean seeds also decreased, by 2.3% year on year, due to its simple product structure and its deficiencies in promotion and sales.

Its other seed businesses (say wheat and beet) also made a fall of 19.7%, since the farmers, frustrated by their small profits, were not active in planting.