Origin Agritech Announced Financial Results for the Six Months Ended March 31, 2025
BEIJING, June 26, 2025 /PRNewswire/ -- Origin Agritech Ltd. (NASDAQ:SEED) (the "Company" or "Origin"), a leading Chinese agricultural technology company, today announced financial results for the six months ended March 31, 2025.
Business Accomplishments and Highlights for the Six Months Ended March 31, 2025, and to date:
Strategic Partnerships and Commercialization:
- In October 2024, Origin established the "Origin Marker Biological Breeding Service Consortium" in partnership with China Golden Marker Biotechnology Co., Ltd., designed to accelerate the licensing and commercialization of Origin's GMO insect-resistant and herbicide-tolerant traits and gene editing technologies. The consortium has established cooperative relationships with dozens of breeding companies across China and is currently improving over 100 corn varieties planted in key corn-producing regions.
- In January 2025, Origin announced a landmark three-way partnership with China Agricultural University and the Beijing Academy of Agricultural and Forestry Sciences, establishing a comprehensive research and development initiative focused on corn "smart plant type" improvement and innovative variety development. This collaboration unites the strengths of these prestigious institutions with Origin's biotechnology capabilities to reshape the future of corn development.
- Also in January 2025, the Company signed cooperation agreements with 12 prominent agricultural companies, including Beidahuang Kenfeng Seed Co., Ltd. and Denong Seed Co., Ltd., during its "Corn Smart Plant Type & Transgenic Breeding" seminar. These agreements encompass comprehensive biotechnology services focusing on BBL2-2 transgenic applications, molecular marker-based variety improvement, gene editing technology implementation, and corn mutant library applications.
Biotechnology Advancements:
- The Company continues to advance its GMO corn hybrid trials, with multiple hybrids progressing through the national GMO hybrid trial process. One hybrid remains on track for potential approval in 2025, with two others advancing toward anticipated approval in 2026. Significant progress has been made in the commercialization of BBL2-2 maize, which received a GMO safety certificate in May 2024.
- In January 2025, Origin unveiled the MIGC 20K (Multi-function Integrated Gene Chip 20K), a breakthrough technology developed by Origin's Marker Biological Breeding Platform. This advanced chip leverages data from 40 million SNP sites across 1,218 inbred lines and incorporates 10 million detection data sites from over 2,000 breeding inbred lines in China, providing comprehensive solutions for transgenic component identification, variety rights protection, and efficient molecular breeding.
- The Company has established four provincial and ministerial R&D platforms with research bases in Beijing, Hainan, and Henan, and developed a large-scale corn genetic platform for efficient functional gene exploration. Origin has accumulated nearly 300,000 corn germplasm resources and received authorization for multiple gene editing traits, including leaf angle, plant height, and rust resistance.
Corporate Strategy and Market Expansion:
- In December 2024, Origin held its 2025 R&D and Business Management Conference in Beijing. Chairman Dr. Gengchan Han outlined the Company's vision to establish three platforms: a technology development and cooperation platform, a profit-sharing platform, and an innovation platform. CEO Mr. Weibin Yan emphasized the significant opportunities in China's seed industry and the Company's ambition to become a leading player in Asia.
- In May 2025, Origin hosted its Huanghuai Region Core Customer Symposium in Zhengzhou, Henan Province, showcasing nearly 300 new corn varieties and strengthening strategic relationships with core regional distributors. The field demonstration highlighted flagship corn varieties, including Jinqiao 8, Jingke 317, Jundan 203, and Aoyu 728, and 16 advanced validation-stage varieties with significant market potential, breakthrough gene editing varieties, and transgenic breeding technologies.
- The exhibition field featured dedicated zones for biotechnology product displays, cooperative expert varieties, and Origin's self-developed varieties, with participants receiving expert guidance on variety characteristics, cultivation management, pest control strategies, and supporting planting technologies. The enthusiastic response from the distributor network confirmed the market potential of Origin's innovative seed varieties and strengthened the Company's market position for the commercial launch of its next generation of corn varieties.
First Half of Fiscal Year 2025 Financial Results:
For the six months ended March 31, 2025, revenue was $10.1 million, compared to $13.0 million for the six months ended March 31, 2024. The decrease in revenues was primarily due to the halt of partial production lines at the Xinjiang factory, the implementation of equipment upgrades, and technical renovation on the production lines, resulting in reduced production capacity and consequently decreased revenue during this period.
Some of our proprietary products experienced sales declines due to market cycle impacts. Meanwhile, newly launched products this year are still in the market cultivation stage, with channel penetration rates and consumer awareness yet to be fully developed.
Total operating expenses for the six months ended March 31, 2025, were $4.6 million, compared to operating expenses of $1.9 million in the same period of fiscal year 2024.
Selling and marketing expenses for the first half of fiscal year 2025 were $0.4 million, compared to $0.5 million in the same period of fiscal year 2024.
General and administrative expenses for the six months ended March 31, 2025, were $3.5 million, compared to $1.0 million year-over-year.
Research and development expenses were $0.7 million in the first half of fiscal year 2025, compared to $0.5 million in the same period of fiscal year 2024. The increase in research and development expenses reflects the Company's continued development of new proprietary products.
Total operating loss for the first half year of FY2025 was $3.4 million, compared to total operating income of $0.6 million reported a year ago.
Interest expense during the first half year of FY2025 was $64,000, compared to interest expense of $0.1 million reported a year ago. There was no rental income during the first half year of FY2024 and FY2025.
Net loss attributable to the Company for the first half year of FY2025 was recorded at $3.6 million, compared to a net profit of $0.2 million a year ago.
Loss per ordinary share for the first half of FY2025 was $0.50 per share, compared to an income per share of $0.03 per share during the same period a year ago.
Liquidity
As of March 31, 2025, the Company had approximately $0.33 million in cash and cash equivalents, compared to $1.2 million as of September 30, 2024. As of March 31, 2025, total borrowings were $0.69 million, unchanged from September 30, 2024.
Management Commentary
Mr. Weibin Yan, CEO of Origin Agritech, commented, "The first half of fiscal year 2025 represents a transformative period for Origin Agritech, marked by strategic investments in our future growth. While our financial results reflect challenging market conditions and timing differences in seed sales, we have made extraordinary progress in establishing the foundation for long-term value creation through our biotechnology platforms and strategic partnerships. As we look ahead, we remain focused on executing our three-platform strategy: strengthening our technology development and cooperation platform, expanding our profit-sharing platform, and accelerating our innovation platform. With our BBL2-2 GMO trait now certified, multiple hybrids advancing through regulatory trials, and partnerships with 12 leading agricultural companies, Origin is well-positioned to capitalize on the vast opportunities in China's seed industry and deliver substantial long-term value to our shareholders."
Conference Call & Audio Webcast
Origin will host a conference call on Friday, June 27th at 8 a.m. ET with the investment community to discuss the Company's financial results and provide a business update. ET The conference call will be led by Mr. Weibin Yan, Chief Executive Officer, and Mr. Patrick Cheng, Chief Financial Officer, who will be available to answer questions.
To access the call by phone, please call 1-800-225-9448 (United States) or 1-203-518-9708 (International) using the conference ID: ORIGIN.
To avoid delays, we encourage participants to dial into the conference call 15 minutes before the scheduled start time. The webcast can be accessed at the following link: https://viavid.webcasts.com/starthere.jsp?ei=1725421&tp_key=a4591a0e2a.
A webcast replay will be available for two weeks.
About Origin Agritech Limited
Origin Agritech Limited, founded in 1997 and headquartered in Origin R&D Center, Songzhuang, Tongzhou 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 an X account for updating investors on Company and industry developments which is https://x.com/origin_agritech.
For more information, please contact:
Origin Agritech Limited Contact:
Kate Lang (Mandarin/English)
Director of Investor Relations
Phone: +86 186-1839-3368
Email: [email protected]
Investor Relations Contact:
Matthew Abenante, IRC
President
Strategic Investor Relations, LLC
Tel: 347-947-2093
Email: [email protected]
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SOURCE Origin Agritech Limited