CNAF Seed to offset losses, boost cash management, and expand trade

Zhongnongfa Seed Industry Group (CNAF Seed) announced plans to use capital reserves to offset accumulated losses, aiming to meet profit distribution conditions and improve investor returns. As of December 31, 2024, the company's parent had an undistributed loss of -CNY 147,881,071.46. CNAF Seed will use CNY 15,631,846.68 from its surplus reserves and CNY 132,249,224.78 from its capital reserves to bring the undistributed profit to CNY 0.

Concurrently, CNAF Seed's subsidiary, Henan Nonghua, plans to increase its daily related-party sales to Beijing Yingtai Jiahe Biotechnology and its subsidiaries by CNY 128m for 2025, bringing total estimated sales to CNY 338m. This expansion supports Henan Nonghua's operational growth and product sales. Additionally, another subsidiary, Henan Huangfan District God Seed Industry, will procure wheat seeds for 2025-2026 from Henan Huangfan District Industrial Group, its second-largest shareholder, as part of normal business operations.

To enhance financial management, CNAF Seed also approved a plan to utilize idle self-owned funds for cash management in 2026, with a maximum limit of CNY 700m. These funds will be invested in highly secure, liquid, and stable bank structured deposit products to increase returns without affecting daily operations. All these measures were approved by the board of directors and will be submitted for shareholder approval.