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Seed China News 1204 - Annual Subscription Published on April 2012

Report Summary Winall Hi-tech rapidly expands wheat seed and corn seed businesses in 2011, with significant increase in revenue but substantial decline in net profit. By strengthened corn seed producing and marketing, Shandong Denghai presents an increase in both revenue and net profit in 2011. Hefei Fengle presents a sharp decrease in net profit in 2011, mainly due to the company's total withdrawing from real estate business. In 2011, Wanxiang Doneed witnessed a sharp increase in net profit, thanks to the excellent performance of its subsidiary Beijing Doneed in corn seed business. Domestic tomato processing industry sees continuous gloom mainly owing to overcapacity and slack sales in overseas market. Mechanized corn single-grain sowing technology has been widely promoted in Huang-Huai-Hai Plain, the major summer corn planting area at home. Longping High-tech suspends listing for issuing non-public shares and making equity replacement with minority shareholders of some subsidiaries. Grand Agriseeds is to control a prominent rice seed company in Chongqing City to further expand rice seed business. A vegetable seed technological innovation incubator was officially unveiled in Shouguang, China's Home of Vegetables. Domestic scientists achieve breakthrough in tissue culture of oil palm, which is expected to promote the development of oil palm industry. With the growing demand for food at home, China further expanded the grain import in 2011, following the sharp increase of grain import in 2010. According to the official statistics, China has imported 1.75 million tonnes of corn, 1.26 million tonnes of wheat and nearly 0.60 million tonne of rice in 2011, respectively up 11.5%, 2.2% and 54.0% over that in 2010. Revealed by the Ministry of Agriculture, China's agricultural trade deficit was further expanded in 2011, amounting to USD34.12 billion, up 47.4% over the previous year. China has become more dependent on import to meet domestic food consumption, in view of the expanding grain import in 2011. According to Chen Xiwen, Deputy Head of the Central Rural Work Leading Group, China's food self-sufficiency rate is actually lower than 90% in 2011 and the food security in China is not optimistic. Mr. Chen also revealed that owing to the increasing dependency on imported food, domestic food price has fluctuated more frequently, and it becomes more and more difficult for the government to regulate the food price.

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Table of Content Winall Hi-tech vigorously expands business 2011 Shandong Denghai: both revenue and net profit increase in 2011 Hefei Fengle's net profit down 39.21% in 2011 WanXiang Doneed: sharp growth in net profit 2011 Domestic tomato processing industry sees overcapacity Corn single-grain sowing technology promoted rapidly in Huang-Huai-Hai Plain Longping High-tech suspends listing for asset restructuring Grand Agriseeds to control a large rice seed company Vegetable seed technological innovation incubator opened in Shouguang, Shandong Domestic scientists successfully transplant oil palm plantlet Companies mentioned Winall Hi-tech, Shandong Denghai, Hefei Fengle, Wanxiang Doneed, Longping High-tech, Grand Agriseeds

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