BEIJING, May 15, 2024
/PRNewswire/ -- Origin Agritech Ltd. (NASDAQ: SEED) (the "Company"
or "Origin"), a leading Chinese agricultural technology company,
today announced its unaudited financial results for the six months
ended March 31, 2024. The Company
also provided updates on its key product developments and strategic
initiatives.
Financial Results Overview:
Revenue Growth: Origin Agritech reported net
revenues of RMB 92 million
(US$13 million) for the first half of
FY2024, marking a substantial increase of 39.1% compared to
RMB 66.1 million in the first half of
FY2023. This growth reflects the strong demand for the Company's
innovative crop solutions.
Operating Expenses and Income: Total operating
expenses decreased by 10% to RMB 13.4
million (US$1.9 million), down
from RMB 15 million a year ago. This
reduction is primarily attributed to efficiencies gained in general
and administrative expenses, which decreased by 19% to RMB 6.7 million (US$1million). Consequently, total operating
income for the first half of FY2024 was RMB
4.3 million (US$0.6 million),
an improvement from an operating loss of RMB
0.2 million reported in the prior year.
Net Profit: The Company achieved a net profit of
RMB 1.4 million (US$0.2 million), compared to a net loss of
RMB 1.1 million during the same
period last year. Earnings per share were RMB 0.21 (US$0.03),
compared to a loss per share of RMB
0.17 a year ago.
Balance Sheet Highlights:
Liquidity Position: As of March 31, 2024, cash and cash equivalents totaled
RMB 10.4 million (US$1.5 million).
Customer Advances and Liabilities: Advances from
customers stood at RMB 84.7 million
(US$11.9 million), while total
current liabilities were RMB 293.7
million (US$41.4 million)
Operational Highlights:
GMO Developments: Origin Agritech received a
GMO safety certificate for its transgenic maize, BBL2-2, marking a
significant milestone for the company. The newly certified BBL2-2
maize contains two insect-resistant genes, Cry1Ab and Cry3Bb, and
one herbicide-tolerance gene, Cp4-epsps. This genetic composition
makes the maize resistant to various lepidopteran pests such as
corn borer, cotton bollworm, armyworm. BBL2-2 is a product with
substantial commercial value and extensive application
potential.
New Hybrid Developments: Two new hybrids have
completed three years of national trials and are expected to
receive regulatory approval this summer, with commercial
availability projected for 2025. Additionally, 15 new hybrids have
entered national official registration trials.
NEC Hybrid Expansion: The successful performance
of our new NEC hybrid has initiated preparations for large-scale
planting in Xinjiang, aimed at enhancing regional agricultural
productivity and sustainability.
Innovation Milestones:
In March 2024, Origin Agritech
announced a breakthrough with a high-yield corn inbred line
developed through gene editing, showing a yield increase of over
50% in trials. This, together with our successful integration of a
gene from wild corn into a commercial hybrid, underscores our
leadership in crop innovation and our dedication to improving
global food security.
Dr. Gengchen Han, Chairman and CEO of Origin Agritech,
commented, "Our strong financial performance in the first half of
FY2024, marked by a 39.1% growth in revenue and our transition from
a loss to a profit, underscores the successful execution of our
strategic initiatives and the increasing market demand for our
innovative agricultural solutions. As we look ahead to the
remainder of the fiscal year, we remain focused on advancing our
pipeline of groundbreaking hybrids and GMO crops, securing
regulatory approvals, and preparing for the commercial launch of
our new products, positioning Origin Agritech to achieve continued
growth and shareholder value."
About Origin Agritech Limited
Origin Agritech Limited, founded in 1997 and headquartered in
Zhong-Guan-Cun (ZGC) Life Science Park in Beijing, is a leading Chinese agricultural
technology company. In crop seed biotechnologies, Origin Agritech's
phytase corn was the first transgenic corn to receive the
Bio-Safety Certificate from China's Ministry of Agriculture. Over the
years, Origin has established a robust biotechnology seed pipeline,
including products with glyphosate tolerance and pest resistance
(Bt) traits. For further information, please visit the Company's
website at www.originagritech.com. The Company also maintains a
Twitter account for updating investors on Company and industry
developments which is https://x.com/origin_agritech.
Forward-Looking Statements
This communication contains "forward-looking statements" as
defined in the federal securities laws, including Section 27A of
the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934, as amended, and as defined in the U.S.
Private Securities Litigation Reform Act of 1995. Forward-looking
statements address expected future business and financial
performance and financial condition and contain words like
"expect," "anticipate," "intend," "plan," "believe," "seek,"
"will," "would," "target," and similar expressions and variations.
Forward-looking statements address matters that are uncertain.
Forward-looking statements are not guarantees of future performance
and are based on assumptions and expectations that may not be
realized. They are based on management's current expectations,
assumptions, estimates, and projections about the Company and the
industry in which the Company operates but involve a number of
risks and uncertainties, many of which are beyond the Company's
control. Some of the important factors that could cause the
Company's actual results to differ materially from those discussed
in forward-looking statements are: failure to develop and market
new products and optimally manage product life cycles; ability to
respond to market acceptance, rules, regulations and policies
affecting our products; failure to appropriately manage process
safety and product stewardship issues; changes in laws and
regulations or political conditions; global economic and capital
markets conditions, such as inflation, interest and currency
exchange rates; business or supply disruptions; natural disasters
and weather events and patterns; ability to protect and enforce the
Company's intellectual property rights; and separation of
underperforming or non-strategic assets or businesses. The Company
undertakes no duty or obligation to publicly revise or update any
forward-looking statements as a result of future developments, new
information, or otherwise, should circumstances change, except as
otherwise required by securities and other applicable laws.
Although the Company believes that the expectations expressed in
these forward-looking statements are reasonable, it cannot assure
that such expectations will be correct. Actual results may differ
materially from the anticipated results. You are urged to consider
these factors carefully when evaluating the forward-looking
statements contained herein. You are cautioned not to place undue
reliance on such forward-looking statements, which are qualified in
their entirety by these cautionary statements.
For more information, please contact:
Origin Agritech Limited Contact:
Kate Lang (Mandarin/English)
Director of Investor Relations
Phone: +86 186-1839-3368
Email: bing.lang@originseed.com.cn
Investor Relations Contact:
Matthew Abenante, IRC
President
Strategic Investor Relations, LLC
Tel: 347-947-2093
Email: matthew@strategic-ir.com
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SOURCE Origin Agritech Limited