Origin Agritech Reports 24.6% Revenue Growth and Key Technological Milestones in Fiscal Year 2024
Announces Filing of Annual Report on Form 20-F for Fiscal Year 2024
BEIJING, Feb. 10, 2025 /PRNewswire/ -- Origin Agritech Ltd. (NASDAQ:SEED) (the "Company" or "Origin"), a leading Chinese agricultural technology company, today announced financial results for the year ended September 30, 2024.
Business Accomplishments and Highlights for the Year Ended September 30, 2024:
GMO Development & Commercialization:
- In May 2024, Origin received a GMO safety certificate for its transgenic maize BBL2-2, which contains two insect-resistant genes (Cry1Ab and Cry3Bb) and one herbicide-tolerance gene (Cp4-epsps);
- Four GMO corn hybrids entered national GMO hybrid trials during the first half of 2024, one hybrid is likely to get the approval in 2025 and two others are likely to be approved in 2026; and
- The Company submitted a new application for GMO bt/gt trait biosafety certification
Gene Editing Breakthroughs:
- In June 2024, the Company published research in NATURE describing their breakthrough in maize induction line gene editing technology, establishing the world's first efficient genetic transformation system for maize induction line Hi3; and
- The Company developed more than ten maize gene editing induction lines with various improved traits, including leaf angle reduction, drought resistance, and lodging resistance, and relevant verification and testing are on the way.
Strategic Initiatives:
- In October 2024, Origin established the "Origin Marker Biological Breeding Service Consortium" with China Golden Marker Biotechnology Co., to accelerate licensing and commercialization of the GMO and gene editing technologies of the Company; and
- The consortium established cooperative relationships with dozens of breeding companies across China and is working on improving over 100 corn varieties to expand the possibilities of the Company to collect royalties
Traditional Hybrid Development:
- Two new hybrid varieties completed three years of national trials and are expected to receive approval in the summer of 2025;
- Fifteen new hybrids entered national official registration trials;
- The Company successfully integrated a gene from wild corn into one of its elite commercial hybrids, enabling 10-15% higher planting density and a potential yield increase of more than 10%; and
- The Company has refilled its Hybrid varieties' portfolio and 8 new hybrid varieties which are anticipated to be launched to the market during and after 2025 to enhance the seed sales.
Corporate Leadership & Governance:
- In August 2024, the Company appointed Weibin Yan, Founder and former chairman of Ausnutria and executive at Longping High-Tech as CEO and Board Director, with Dr. Gengchen Han remaining as Chairman, and appointed Patrick Cheng as CFO and Board Director, bringing over 30 years of corporate management experience.
Fiscal Year 2024 Financial Results:
For the fiscal year ended September 30, 2024, revenue was RMB 113.4 million (US$16.2 million), compared to RMB 93.3 million (US$13 million) for the fiscal year ended September 30, 2023. The increase in revenues was mainly due to the higher volumes for the corn seed sales as a result of the improvement of market competitiveness.
Total operating expenses for the fiscal year ended September 30, 2024, were RMB 52.7 million (US$7.5 million), compared to operating expenses of RMB 32.3 million (US$4.5 million) in fiscal year 2023.
Selling and marketing expenses for fiscal year 2024 were RMB 6.3 million (US$0.9 million), compared to RMB 8.4 million (US$1.2 million) in fiscal year 2023. The decrease was mainly due to the Company's strategy to form seed distribution joint ventures, which helped improve efficiency and control of labor costs
General and administrative expenses for the fiscal year ended September 30, 2024, were RMB 36.0 million (US$5.1 million), compared to RMB 14.2 million (US$1.98 million) year-over-year. General and administrative expenses from continuing operations primarily consist of salary and compensation, depreciation and amortization, legal fees, professional expenses, and other expenses, including travel and other general business expenses and office supplies.
Research and development expenses were RMB 10.1 million (US$ 1.4 million) in fiscal year 2024, compared to RMB 7.4 million (US$1.0 million) in fiscal year 2023. Research and development expenses from continuing operations primarily consist of salary and compensation expenses of personnel engaged in the research and development of our proprietary crop seeds and genetically modified products, traveling expenses, depreciation of plant and equipment, and expenses paid to certain research institutes to carry out research projects on behalf of Origin during the period.
Net income from continuing operations for the fiscal year ended September 30, 2024, was RMB 18.7 million (US$ 2.7 million), compared with net income from continuing operations of RMB 62.7 million (US$ 8.7 million) in fiscal year 2023. The net income from fiscal year 2023 was mainly from investment income by subsidiary disposal.
Net income attributable to Origin for the fiscal year ended September 30, 2024 was RMB 20.7 million (US$3.0 million), compared to the net income of RMB 55.3 million (US$7.7 million) for the fiscal year ended September 30, 2023.
Liquidity
As of September 30, 2024 and 2023, we had approximately RMB 8.4 million (US$1.2 million) and RMB 23.7 million (US$3.3 million), respectively, in cash and cash equivalents for continuing operations. Total borrowings as of September 30, 2024 and 2023 were RMB 4.95 million (US$0.7 million) and RMB-nil- million, respectively.
Net cash used in operating activities was RMB 15 million (US$2.1 million) during fiscal year 2024, compared with net cash used in operating activities of RMB 5.5 million (US$0.76 million) for the fiscal year ended September 30, 2023.
Net cash used in investing activities was RMB 5.0 million (US$0.7 million) for the fiscal year ended September 30, 2024, compared with net cash used in investing activities of RMB 11.2 million (US$1.6 million) for the fiscal year ended September 30, 2023.
Net cash provided by financing activities was RMB 4.5 million (US$0.6 million) for the fiscal year ended September 30, 2024, compared with net cash provided in financing activities of RMB 22.9 million (US$3.2 million) for the fiscal year ended September 30, 2023.
Management Commentary
Mr. Weibin Yan, CEO of Origin Agritech, commented, "Fiscal year 2024 marked a transformative period for Origin Agritech, with revenue growing to $16.2 million, driven mostly by the performance from our Xinjiang operations. While we saw increased operating expenses as we invested in our future, we achieved several milestone developments, including receiving our GMO safety certificate for BBL2-2 maize and establishing the Origin Marker Biological Breeding Service Consortium for commercialization. Our gene editing breakthroughs, particularly our publication in Nature and our high-yield corn inbred line development, position us well for future growth. With our new leadership team in place and our expanding partnerships across China, we are well-positioned to accelerate the commercialization of our innovative agricultural technologies and deliver long-term value to our shareholders."
Annual Report Now Available
The Company has filed its annual report on Form 20-F for the fiscal year ended September 30, 2024, with the Securities and Exchange Commission ("SEC"). The annual report on Form 20-F can be accessed on the SEC's website at http://www.sec.gov and the Company's investor relations website at https://originagritech.com/investor-relations/.
CONFERENCE CALL & AUDIO WEBCAST
Origin will host a conference call on Tuesday, February 11, 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 1-800-245-3047 (United States) or 1-203-518-9765 (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=1706334&tp_key=309410cd09.
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