A Letter to Shareholders from Weibin Yan, Chief Executive Officer of Origin Agritech

Beijing Origin obtained its seed production and operation license as the company enters its FY 2027–2029 growth stage.

Rhea-AI Summary

Origin Agritech (NASDAQ: SEED) reported seed preorders for the fiscal 2027 season up more than 100% year over year to date. Customer advance payments also increased more than 100% year over year to date. The company targets 50%+ year-over-year revenue growth for FY 2027 and expects operating cash flow from its seed business to more than double year over year.

Origin completed its FY 2025–2026 restructuring stage, expanded regional operations and secured exclusive nationwide commercialization rights to Zhongdan 6202. A completed sale-and-leaseback of its Xinjiang seed production subsidiary released capital while preserving operational access without shareholder dilution. For FY 2028 and FY 2029, Origin targets at least 50% year-over-year organic business growth. It is also evaluating acquisitions in China and Southeast Asia.

12 points · 0 major

PositiveiHow this balance works

How this balance works

Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.

It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.

Rhea-AI Sentiment measures something else, the tone of the wording.

How the balance worksHow Sentiment works

0 major · 0 points

Hollow bars mark forward-looking points. How the balance works

Positive

• Moderate pointFY 2027 seed preorders increased more than 100% year over year to date.
• Moderate pointCustomer advance payments increased more than 100% year over year to date.
• Moderate point. Forward-looking: it has not happened yet and may not happen.FY 2027 revenue growth targeted at 50%+ year over year.
• Moderate point. Forward-looking: it has not happened yet and may not happen.FY 2027 seed-business operating cash flow expected to more than double year over year.
• Moderate point. Forward-looking: it has not happened yet and may not happen.FY 2028 and FY 2029 organic business growth targeted at least 50% year over year.
• Moderate pointXinjiang subsidiary sale-and-leaseback released capital without shareholder dilution while retaining operational access.
• Moderate pointZhongdan 6202 exclusive nationwide commercialization rights secured in August 2026.

5 minor points

• Minor pointRegional expansion included re-entering Northeast China last year and launching Guizhou operations in June 2026.
• Minor pointResearch capacity expanded through upgraded Beijing and Sanya stations and new Zhengzhou and Guizhou stations.
• Minor pointBeijing Origin obtained its seed production and operation license.
• Minor pointGene-editing trait authorizations obtained, alongside academic partnerships to advance biotechnology commercialization.
• Minor point. Forward-looking: it has not happened yet and may not happen.Acquisition opportunities under evaluation in China and Southeast Asia alongside planned organic growth.

Negative

• None.

Key Figures

Seed orders and advance payments: More than 100% year-over-year Revenue growth target: 50%+ year-over-year Operating cash flow outlook: More than double year-over-year +1 more

Seed orders and advance payments

More than 100% year-over-year

Early FY 2027 season, year to date

Revenue growth target

50%+ year-over-year

FY 2027

Operating cash flow outlook

More than double year-over-year

Seed business, FY 2027

Organic business growth target

At least 50% year-over-year

FY 2028 and FY 2029

Historical Context

2 past events · Latest: Oct 19

2 events

1. Oct 19

   Distribution agreement

   24h Move

   -1.1%

   Three-year Shandong corn-seed distribution agreement included RMB 2.9 million in initial prepayments.

2. Oct 01

   Sale-leaseback

   24h Move

   -14.4%

   Company sold 70.5184% of Xinjiang Originbo and leased back its seed production assets.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

sale-and-leaseback, gene-editing, germplasm accessions

3 terms

sale-and-leaseback financial

"We also completed a sale-and-leaseback of our Xinjiang seed production subsidiary"

A sale-and-leaseback is when a company sells an asset it uses—often a building or equipment—to another party and immediately rents it back so it can keep using the asset. Think of selling your house to free up cash and then continuing to live there as a tenant; it provides liquidity now but creates a new ongoing rent expense. Investors watch these deals because they change a company's cash position, recurring costs and ownership of assets, which can affect cash flow, leverage and long-term profitability.

gene-editing technical

"We obtained gene-editing trait authorizations"

Gene-editing is a set of laboratory techniques that change an organism’s DNA by adding, removing or altering specific genetic instructions—think of it as editing words in a document to fix a sentence. For investors, it matters because these tools can create new treatments, improve agricultural crops or reduce manufacturing costs, potentially driving product value, regulatory risk, research milestones and long-term revenue prospects for companies involved.

germplasm accessions technical

"With more than 200,000 germplasm accessions"

Distinct, catalogued samples of plant or animal genetic material held in a gene bank or breeding collection. Each germplasm accession is assigned a unique identifier and represents seeds, cuttings, tissue cultures, embryos, or DNA from a single source or collection event; it is maintained, documented, and made available for research, breeding, conservation or restoration so that that specific genetic line can be retrieved and used in the future.

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Seed orders for the FY 2027 season up more than 100% Ytd, targeting 50%+ Yoy revenue growth for FY 2027

BEIJING, Oct. 21, 2026 (GLOBE NEWSWIRE) -- Origin Agritech Limited (NASDAQ: SEED) (“Origin” or the “Company”), a leading Chinese agricultural technology company, today issued a letter to shareholders from Chief Executive Officer Weibin Yan as the Company enters fiscal year 2027. The full text follows.

Dear Fellow Shareholders,

Two years ago, in August 2024, I returned to Origin Agritech as Chief Executive Officer with a clear objective: to strengthen our position in China’s corn seed industry and build a foundation for sustainable growth.. We closed fiscal 2026 on September 30 with the first phase of our strategic plan complete. Early indicators are encouraging: customer advance payments and seed preorders for spring planting are up more than 100% year-over-year to date. I would like to share the progress we have made, the opportunities ahead, and how we intend to build on this momentum.

Building the Foundation for Growth: The Restructuring Stage

When I rejoined Origin in August 2024, we established a three-stage development plan. Fiscal 2025 and 2026 comprised the Restructuring Stage, during which we made substantial progress. We strengthened our leadership team and expanded sales and marketing across China’s major corn seed regions, re-entering Northeast China last year and launching operations in Guizhou in June this year. We launched four new corn varieties in August 2025, secured exclusive nationwide commercialization rights to Zhongdan 6202 one year later, and began introducing Bangzhongbang 889 for FY 2027.

We upgraded R&D stations in Beijing and Sanya, opened new stations in Zhengzhou and Guizhou. We obtained gene-editing trait authorizations, partnered with China Agricultural University and the Beijing Academy of Agricultural and Forestry Sciences to advance biotechnology commercialization, obtained Beijing Origin’s seed production and operation license, and implemented an AI-assisted information management system. We also completed a sale-and-leaseback of our Xinjiang seed production subsidiary, unlocking capital while retaining operational access, strengthening liquidity without shareholder dilution.

What to expect in FY 2027: The Strong Growth Stage Begins

Fiscal 2027 through fiscal 2029 marks our Strong Growth Stage. The new fiscal 2027 season started very well with our new seed varieties have receiving encouraging market responses across our main business regions. Advance payments are up more than 100% year-over-year in this early season. Building on this momentum, we expect our operating cash flow from the seed business to more than double year over year in FY 2027.

Three engines are driving that growth: our variety portfolio, led by Zhongdan 6202 and Bangzhongbang 889, with new varieties supporting central China; our regional expansion, including full seasons in Northeast China and Guizhou; and most importantly, our technology platform is greatly improving our R&D efficiency, and the planned Origin Agri-tech Agent will greatly accelerate our engagement with the farmers to improve farmer productivity, deepen and broaden our client relationships.

Looking ahead, we are pursuing organic growth and evaluating M&A opportunities in China and Southeast Asia, supported by our international capital platform. For FY 2028 and FY 2029, we target at least 50% year-over-year organic business growth as our new varieties expand across the Huanghuai-Hai belt and China’s Northeast, Northwest, and Southwest regions.

A personal note

I returned to Origin because I believe China’s corn seed market offers significant opportunities for companies with strong genetics, effective distribution, and innovative technology. With more than 200,000 germplasm accessions, authorized gene-edited traits, a growing variety portfolio, and an expanded sales network,strong engagement with the leading experts in the industry, Origin is building the capabilities to capture these opportunities. Our goal is to become one of  China’s leading corn seed companies within five years, and the more than 100% year-over-year increase in advance payments to date is an encouraging early indicator of customer demand. My own capital is invested alongside yours.

Thanks for your investment and attention, I look forward to speaking with you on our next call.

Sincerely,
Weibin Yan
Chief Executive Officer
Origin Agritech Limited

About Origin Agritech Limited

Origin Agritech Limited, founded in 1997 and headquartered at the Origin R&D Center in Songzhuang, Tongzhou, Beijing, is a leading Chinese agricultural technology company. In crop seed biotechnology, Origin Agritech’s phytase corn was the first transgenic corn to receive a Biosafety Certificate from China’s Ministry of Agriculture. Over the years, Origin has established a robust biotechnology seed pipeline, including products with glyphosate tolerance and Bt (pest resistance) traits. For further information, please visit the Company’s website at https://originagritech.com. The Company also maintains an X account to update investors on Company and industry developments, available at https://x.com/origin_agritech.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding the Company’s expectations for advance payments and seed sales in fiscal 2027, the launch and market acceptance of Zhongdan 6202, Bangzhongbang 889, and other varieties, the launch, timing, and expected benefits of the Company’s Farming AI Agent, and AI-asisted information management system, the Company’s three-stage strategic plan and the targets for each stage, the use of capital from the sale and leaseback of the Xinjiang subsidiary and its effect on the Company’s results and liquidity, regulatory and commercial milestones for new and biotechnology-derived varieties, potential acquisitions and international expansion, and the Company’s strategic goals. Words such as “expect,” “anticipate,” “intend,” “plan,” “believe,” “seek,” “will,” “would,” “target,” and similar expressions identify forward-looking statements. These statements involve known and unknown risks and uncertainties, including the risk that advance payments do not convert into seed sales at the level or timing expected, delays in or failure to achieve regulatory and commercial milestones, grower adoption of the Company’s varieties, seed production yields and weather conditions, competitive variety introductions, pricing pressure in the Chinese seed market, regulatory and agricultural policy developments in China, currency fluctuation, risks associated with international operations and licensing approvals, and the Company’s ability to fund and execute the plans described above, which may cause actual results to differ materially from those expressed or implied. Forward-looking statements are not guarantees of future performance. Origin Agritech undertakes no obligation to update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise, except as required by securities and other applicable laws.

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

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What growth does Origin Agritech target for FY 2027?

Origin Agritech targets 50%+ year-over-year revenue growth for FY 2027 and expects operating cash flow from its seed business to more than double year over year. Seed preorders and customer advance payments for the new season are each up more than 100% year over year to date.

What are Origin Agritech's growth targets for FY 2028 and FY 2029?

Origin Agritech targets at least 50% year-over-year organic business growth for FY 2028 and FY 2029. The company links these targets to expansion of its new varieties across the Huanghuai-Hai belt and China's Northeast, Northwest and Southwest regions.