Do you work in seeds business ? I think you should ask your Questions to Agria IR. Please look on page 6 anual report:
As of June 30, 2012, we had prepaid all of the rent due under certain leases granting access to approximately 13,500 acres
of land, which were formerly held by P3A and have been retained by us following the divestiture of P3A in July 2010. The leases have
remaining terms of between approximately 8 and 26 years. We are not currently using this land and are in the process of assessing
appropriate revenue generating opportunities that will make use of the land.
LOL, I can't keep it , sorry, don't you read the recent half year report ? LOL....
That was in their yearly report dude, less than 6 months ago, they claimed "We are NOT currently using this land and are in the process of assessing appropriate revenue generating opportunities that will make use of the land", now look what they said,-- after merely 5 + months:
"We have since explored, apart from finding third-party tenants, long-term viable alternative commercial use of the land parcels, especially with respect to trial plantation of grass varieties. Extensive trial plantation of grass was conducted over the last several years. ...The independent valuation was received in February 2013 and indicated a substantial impairment on the land. The valuation has taken into consideration the results of the trial plantations, as well as other possible changes in the extent or manner these land parcels could be used. In compliance with US GAAP Accounting Standards Codification (ASC) Section 360, without clear visibility as to its cash flow generating capacity in the foreseeable future, we determined that it was appropriate to record an impairment provision of RMB357.3 million (US$57.3 million) ..."
Dude, do you want me to tell you the short version ? -- they spent US$57.3 million for a useless land ! People might wonder how could this happen ? because this is part of the scam. yes, P3A is part of the scam, now you see GRO took the lose, who is the winner? the invisible Mr Liar's partner.
Look another scam: "In September 2010, we acquired a 49% equity interest in Wuwei Ganxin Seeds Company Limited ("Ganxin"). ...." what happen now? less than 2 years, " we decided to discontinue our commercial arrangement with Ganxin. ... " , how much GRO lost in this transaction ? approximately RMB40.7 million (US$6.5 million).
How many total revenue of their China seeds business brought in in 6 months ? -- US$5.0 million, please be noted, this is revenue not profit !