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SEGMENT AND GEOGRAPHIC INFORMATION
 12 Months Ended
Sep. 30, 2016
Segment Reporting [Abstract]  
Segment Reporting Disclosure [Text Block]
23.
SEGMENT AND GEOGRAPHIC INFORMATION
 
From June 2015, the Company announced that it has successfully transitioned from a traditional seed company to a biotechnology seed company and is now organized into two business lines: agri-biotech and product development and production and distribution of hybrid seeds. The Company’s reportable segments are strategic business units that require different technology and marketing strategies and offer different products and services. The primary income (loss) measure used for assessing segment performance and making operating decisions is income (loss) from operations (i.e., earnings before non-operating income (expenses), interest and income taxes). The Company’s chief operating decision maker, the Chief Executive Officer, receives and reviews the results of the operations of each separate segment, assesses and manages their performance and makes decisions based on the measures of revenues, cost of revenues, gross profit, operating expenses, net and income (loss) from operations. Other than the information provided below, the Company’s chief operating decision maker does not use any other measures by segments.
 
The accounting policies of the segments are the same as those described in the summary of significant accounting policies. The Company accounts for intersegment sales and transfers as if the sales or transfers were to third parties, that is, at current market prices. Following a change in the identification of the Company’s reportable segments as aforementioned, the Company has also presented the corresponding items of segment information for the years ended September 30, 2015 and 2016 for comparative purposes.
 
Net revenues, income (loss) from operations and total assets of the Company’s reportable segments are as follows:
 
 
 
Year ended September 30,
 
 
 
2014
 
2015
 
2016
 
 
 
RMB
 
RMB
 
RMB
 
Segment net revenues
 
 
 
 
 
 
 
 
 
 
Production and distribution of hybrid seeds
 
 
414,891
 
 
376,250
 
 
334,769
 
Agri-biotech and product development
 
 
3,536
 
 
3,560
 
 
3,495
 
Segment total net revenues
 
 
418,427
 
 
379,810
 
 
338,264
 
Inter-segment sales eliminations
 
 
(3,250)
 
 
(3,257)
 
 
(3,013)
 
Reconciliation to consolidated revenues
 
 
415,177
 
 
376,553
 
 
335,251
 
 
 
 
 
 
 
 
 
 
 
 
Segment operating income(loss)
 
 
 
 
 
 
 
 
 
 
Production and distribution of hybrid seeds
 
 
10,691
 
 
38,709
 
 
263
 
Agri-biotech and product development
 
 
(24,328)
 
 
(26,501)
 
 
(31,205)
 
Total segment operating income(loss)
 
 
(13,637)
 
 
12,208
 
 
(30,942)
 
Less: Unallocated corporate operating expenses, net
 
 
10,842
 
 
10,868
 
 
30,366
 
Reconciliation to consolidated income (loss) from operations
 
 
(24,479)
 
 
1,340
 
 
(61,308)
 
 
 
 
September 30,
 
 
 
2015
 
2016
 
 
 
 
RMB
 
 
RMB
 
Segment identifiable assets:
 
 
 
 
 
 
 
Production and distribution of hybrid seeds
 
 
916,088
 
 
803,420
 
Agri-biotech and product development
 
 
187,223
 
 
189,446
 
Segment total identifiable assets
 
 
1,103,311
 
 
992,866
 
Receivables elimination
 
 
(117,482)
 
 
(112,240)
 
Reconciliation to consolidated total assets
 
 
985,829
 
 
880,626
 
 
Supplemental disclosures of segment information:
 
 
 
Year ended September 30,
 
 
 
2014
 
2015
 
2016
 
 
 
RMB
 
RMB
 
RMB
 
Segment depreciation and amortization
 
 
 
 
 
 
 
 
 
 
Production and distribution of hybrid seeds
 
 
27,567
 
 
29,668
 
 
30,365
 
Agri-biotech and product development
 
 
957
 
 
879
 
 
857
 
Reconciliation to consolidated depreciation and amortization
 
 
28,524
 
 
30,547
 
 
31,222
 
 
 
 
 
 
 
 
 
 
 
 
Segment capital expenditure to long-lived assets
 
 
 
 
 
 
 
 
 
 
Production and distribution of hybrid seeds
 
 
22,615
 
 
20,531
 
 
16,964
 
Agri-biotech and product development
 
 
-
 
 
-
 
 
-
 
Reconciliation to consolidated expenditure on the purchase of plant and equipment, land use rights and intangible assets
 
 
22,615
 
 
20,531
 
 
16,964
 
 
As we primarily generate our revenues from customers in the PRC, and all of our sales and all of our identifiable assets are located in the PRC, no geographical segments are presented.