BEIJING - Gansu Dunhuang Seed Co Ltd, one of China's leading seed producers and providers, on Friday posted a 168.7 percent year-on-year net profit increase in 2010 based on soaring seed prices.
Net profit totaled 80.69 million yuan ($12.36 million), and earnings per share stood at 0.434 yuan, a 168.7 percent increase from 2009, the company said in a statement filed with the Shanghai Stock Exchange.
The profitability of the seed production business has grown as the 168.7 percent increase in net profit was achieved along side a five percent growth in revenues, which reached a total of 1.59 billion yuan, according to the statement.
The company mostly attributed its strong performance to a 52 percent surge in the profits of its seed business, which totaled 1.06 billion yuan, along with a 12.4 percent drop in operating costs.
Cotton-related business brought 357.1 million yuan in revenues to the company after turning from a 100 percent loss rate in 2009 to a profit rate of 12.92 percent in 2010, said the statement.
The company said it will focus on improving its operating model and pushing forward research and development for new seed varieties in 2011.
Shares of Gansu Dunhuang Seed closed 1.54 percent down to 28.84 yuan per share on Friday at the Shanghai Stock Exchange.