Performance overview of listed seed enterprises in Q1-Q3 2012

The performance differentiation of listed seed companies in China in the first three quarters is basically the same with that in H1 this year, since Q3 is usually the off-season for corn and rice seed sales at home. Seed players with reasonable business structure and sensible operating strategies could generate increasing profits while those with poor status generally witnessed declined performance，according to CCM’s October Issue of Seed China News.

In aspect of net profit, Longping High-tech and Winall Hi-tech achieved sharp growth in the first three quarters this year mainly due to their efforts in seed business expansion. On the contrary, Hefei Fengle and Shandong Denghai suffered a remarkable decline in net profit; Gansu Dunhuang continued to suffer loss in Q3 2012, mainly due to its sluggish cotton and food processing businesses.

It seems that the enhancing and expanding seed business has brought good returns for seed companies like Longping High-tech and Winall Hi-tech, while some players like Hefei Fengle and Gansu Dunhuang have been implicated by non-core businesses with a high proportion in company's total revenue.

Some listed seed companies have started the distribution of seeds earlier for the marketing year of 2012/2013. For example, Shandong Denghai and Hefei Fengle have received increasing advance from customers in Q3 2012, which would be conducive to their performance rebound in 2012.

Shandong Denghai started the corn seed distribution in Sept., with more promotions for its distributors. Thanks to the good performance in field planting, "Denghai 605", a leading corn hybrid bred by Shandong Denghai, has seen a price increase of seeds, probably to create handsome profits for the company. However, the annual performance of Shandong Denghai would be not so optimistic in 2012, mainly in view of the declining profits of "Xianyu 335" promoted by its joint venture with Pioneer Hi-Bred International Inc.

The performance differentiation of listed seed companies in China would be extended throughout the year of 2012. The serious loss of Gansu Dunhuang is almost impossible to be reversed in the remaining period of 2012. Mainly due to depressed non-core businesses, Hefei Fengle would probably continue to generate a decreasing net profit in 2012, following the similar situation in 2011. On the contrary, Longping High-tech and Winall Hi-tech which have been strengthening their core business, would see continuous profit growth in the coming few years.

Source: Seed China News 1210

http://www.cnchemicals.com/Newsletter/NewsletterDetail_28.html

Content of Seed China News 1210:

Non-transgenic soybean price running high in Heilongjiang

"Zhongdan 909" suffered stalk breaking for strong wind in Hebei

Performance overview of listed seed enterprises in Q1-Q3 2012

ZARD to control HPSG

Longping High-tech to divest inferior businesses and enhance seed business

TYLCV occurrence in Northeast China

Foreign varieties dominate sweet pepper seed market in Shandong

SNP technology to reinforce seed testing

Interview to Ma Dehua on "Derit 10" cucumber variety

Major corn varieties promoted in Jilin

For more information about CCM’s Seed China News, please contact us at econtact@cnchemicals.com.

Development of China’s Hybridization Breeding Soybean Keeps Growing

CCM International has published the latest Issue of Seed China News on November 30^th , 2011, indicating that the development of soybean hybridization breeding is expected to improve the competitiveness of China's non-transgenic soybeans.

China is capably to produce hybridization breeding soybean. For example, Anhui Province is a major soybean-planting province in China, with an annual planting area of over 666,666.67 ha. (10 million mu). The province's soybean hybridization breeding, especially for high-protein soybeans, has led the country. By three-line breeding methods, some summer soybeans with higher yield, such as "Zayoudou 1", have been successfully cultivated and released in the province and surrounding areas.

It's believed that the new cross-breeding and cultivation technology would be essential to revitalize China's soybean industry. The improvement in soybean seed breeding would reduce farmers' purchase cost of hybrid soybean seeds. The planting efficiency of soybean would be greatly improved, with upgrading of yield and quality.

Many industrial insiders also advocate to enhance domestic protein processing business, in order to expand the consumption of non-transgenic soybeans. Actually, non-transgenic soybeans are thought to be the material most appropriate for protein processing. It appears that the demand for non-transgenic soybeans continues to increase globally, with the development of protein processing industry.

It’s noteworthy that some domestic oil companies still insist on extract oil mainly with non-tansgenic soybeans. "Only by building our non-GM brand can we compete with international cereals and oils giants," said Vice President of a cereals and oils industrial group in Heilongjiang Province, Northeast China.

All findings are from CCM International’s Seed China News 1111. The headline news include:

-The Government of Anhui Province released suggestions for developing modern seed industry, indicating the strategy to support leading seed companies.

-The two-line wheat breeding technology is expected to realize industrialization in China.

-China continues to attach importance to crop breeding through space mutation, aiming to develop more abundant variety resources.

-IRRI, CAAS and BGI jointly launched Rice 3,000 Genomes Project in Shenzhen City, South China.

-Winall Hi-tech buys "Wushan Simiao" to enrich the rice variety structure and make more profits in rice seeds.

-Hunan Jinjian is transferred by HJCI owing to HJCI’s lack of ability and willingness to strengthen the seed business.

-Shandong Denghai establishes a joint venture to expand business scope.

-Golden Rice sets up a special research department, aiming to build a commercial rice-breeding system.

-The developing hybridization breeding of soybean is expected to improve the competitiveness of China's non-transgenic soybeans.

-Multinational giants are marking great efforts to enhance seed treatment business in China.

About CCM

CCM is dedicated to market research in China, Asia-Pacific Rim and global market. With a staff of more than 150 dedicated highly-educated professionals. CCM offers Market Data, Analysis, Reports, Newsletters, Buyer-Trader Information, Import/Export Analysis all through its new proprietary product ValoTracer.

For more information, please visit http://www.cnchemicals.com.

CCM International Ltd.
Guangzhou CCM Information Science & Technology Co., Ltd.
17th Floor, Huihua Commercial & Trade Mansion, No.80 Xianlie Zhong Road, Guangzhou 510070, China

Tel: 86-20-37616606

Email: econtact@cnchemicals.com

Source: http://www.cnchemicals.com/PressRoom/PressRoomDetail_c_864.html

China Soybean Breeding on the Rise

Opposite to the decreasing soybean production, the hybridization breeding of soybean is rising in China. The cross breeding system of soybean has been established in some areas. It is estimated that the breakthrough in soybean yield and quality would greatly improve the competitiveness of domestic non-transgenic soybeans, according to CCM’s November Issue of Seed China News.

Anhui Province is a major soybean-planting province in China, with an annual planting area of over 666,666.67 ha. (10 million mu). The province's soybean hybridization breeding, especially for high-protein soybeans, has led the country, mainly relying on the cooperation efforts of research institutes. By three-line breeding methods, some summer soybeans with higher yield, such as "Zayoudou 1", have been successfully cultivated and released in the province and surrounding areas.

It was reported in early Nov. 2011 that a highly efficient soybean breeding system was established in Jilin Province, a key soybean planting region located in Northeast China. After a male sterile line with high outcrossing rate was cultivated, the hybrid seed yield of soybean has been significantly increased. The seed breeding system combining the environment, insects and crop has been further improved. Then the industrialization of soybean seed breeding would be accelerated substantially.

Compared with other main crops like rice, corn and rapeseed, soybean is a most difficult crop to realize distant crossing. It has taken Chinese scientists many years to cultivate soybean male-sterile line and breeding hybrid varieties. The world's first hybrid soybean was born in China in Jan. 2003.

Although China owns the advantages in planting non-transgenic soybean in large areas, the soybean industry has not shown powerful competitiveness compared with the GM soybean industry. Owing to the high cost and low efficiency in growing soybeans, domestic farmers intends to plant other high efficiency or yield crops, such as hybrid rice and corn. Besides, the shrinking demand for non-transgenic soybean in processing industry also affected domestic soybean planting.

It's believed that the new cross-breeding and cultivation technology should be essential to revitalize China's soybean industry. The improvement in soybean seed breeding should cut farmers' purchase cost of hybrid soybean seeds. The planting efficiency of soybean would be greatly improved, with the upgrading of yield and quality.

As for developing excellent hybrid soybean, the cooperation between seed companies and research institutes should be encouraged. Companies should play a key role in promoting the commercialization of soybean breeding. According to Gai Junyi, a famous soybean expert, Shandong Shengfeng Seeds and Technology Co., Ltd. has collaborated with Nanjing Agricultural University to establish a modern soybean-breeding system.

Many industrial insiders also advocate to enhance domestic protein processing business, in order to expand the consumption of non-transgenic soybeans. Actually, non-transgenic soybeans are thought to be the material most appropriate for protein processing. It appears that the demand for non-transgenic soybeans continues to increase globally, with the development of protein processing industry.

It is noteworthy that some domestic oil companies still insist on extract oil mainly with non-tansgenic soybeans. "Only by building our non-GM brand can we compete with international cereals and oils giants," said Vice President of a cereals and oils industrial group in Heilongjiang Province, Northeast China.

Source: Seed China News 1111

http://www.cnchemicals.com/Newsletter/NewsletterDetail_28.html

Content of Seed China News 1111:

Anhui government to support leading seed enterprises

Two-line hybrid wheat to realize industrialization in China

China attaches importance to crop space breeding

Rice 3,000 Genomes Project launched in Shenzhen

Winall Hi-tech introduces conventional rice variety

Hunan Jinjian transferred to Shenzhen Jinsheng

Shandong Denghai sets a joint venture

Golden Rice sets up research institute

China soybean breeding on the rise

Bayer's new seed treatment application center launched in China

Seed China News, a monthly publication issued by CCM International on 30th of every month, offers timely update and close follow-up of China’s seed industry dynamics, analyzes market data and finds out factors influencing market development

About CCM

CCM is dedicated to market research in China, Asia-Pacific Rim and global market. With a staff of more than 150 dedicated highly-educated professionals. CCM offers Market Data, Analysis, Reports, Newsletters, Buyer-Trader Information, Import/Export Analysis all through its new proprietary product ValoTracer.

For more information, please visit http://www.cnchemicals.com.

CCM International Ltd.
Guangzhou CCM Information Science & Technology Co., Ltd.
17th Floor, Huihua Commercial & Trade Mansion, No.80 Xianlie Zhong Road, Guangzhou 510070, China

Tel: 86-20-37616606

Email: econtact@cnchemicals.com

Source: http://www.cnchemicals.com/PressRoom/PressRoomDetail_w_858.html