Origin Agritech Announces Financial Results for the First Half of Fiscal Year 2026

Rhea-AI Summary

Origin Agritech (NASDAQ: SEED) reported first-half fiscal 2026 revenue of RMB 49.2 million, down 31.9% year-over-year, with gross margin stable at 11.2%. Operating expenses fell 43.9% to RMB 18.4 million, narrowing net loss 44% to RMB 14.4 million.

The company advanced GMO and gene-editing pipelines, secured additional seed production licenses, launched the nationwide “Aoyun 2026” promotion program, re-entered Northeast China, and strengthened leadership with a new independent director and returning CFO.

Positive

• Net loss reduced 44% YoY to RMB 14.4 million
• Operating expenses down 43.9% to RMB 18.4 million
• General and administrative expenses cut 69.8% to RMB 7.6 million
• Operating loss narrowed 47.8% to RMB 12.9 million
• Two crop seed production and operation licenses now in China
• Launch of nationwide “Aoyun 2026” program and Northeast market re-entry

Negative

• Revenue declined 31.9% YoY to RMB 49.2 million
• Gross profit decreased to RMB 5.5 million from RMB 8.1 million
• Selling and marketing expenses nearly doubled to RMB 5.1 million
• Cash and equivalents decreased to RMB 13.4 million from RMB 15.9 million
• Total liabilities of RMB 168.1 million exceed total assets of RMB 92.6 million

Market Context

This announcement details a mixed first half: revenue declined to RMB 49.2 million, but operating ex...

Analysis

This announcement details a mixed first half: revenue declined to RMB 49.2 million, but operating expenses fell sharply to RMB 18.4 million, narrowing net loss to RMB 14.4 million. The company highlights ongoing GMO and gene‑editing progress alongside commercialization efforts such as the “Aoyun 2026” program. Historically, earnings releases have triggered negative moves averaging -10.97%, so investors may focus on liability levels of RMB 168.1 million, cash of RMB 13.4 million, and future financing under the $30,000,000 shelf.

Key Figures

Revenue: RMB 49.2 million Net loss: RMB 14.4 million Total operating expenses: RMB 18.4 million +5 more

8 metrics

Revenue RMB 49.2 million Six months ended March 31, 2026; down 31.9% YoY from RMB 72.3 million

Net loss RMB 14.4 million Six months ended March 31, 2026; improved from RMB 25.6 million

Total operating expenses RMB 18.4 million Six months ended March 31, 2026; down 43.9% from RMB 32.8 million

Gross margin 11.2% Six months ended March 31, 2026; unchanged vs prior-year period

R&D expenses RMB 5.7 million Six months ended March 31, 2026; up 11.1% from RMB 5.2 million

Cash & equivalents RMB 13.4 million Balance at March 31, 2026; vs RMB 15.9 million at Sept 30, 2025

Total liabilities RMB 168.1 million As of March 31, 2026; current liabilities RMB 155.6 million

Basic & diluted EPS RMB -1.21 Net loss per share for first half FY 2026; vs RMB -3.55 prior year

Previous Earnings Reports

3 past events · Latest: Jan 30 (Negative)

Same Type Pattern 3 events

Date	Event	Sentiment	24h Move	Catalyst
Jan 30	Annual results	Negative	-7.7%	Fiscal 2025 revenue decline and large net loss vs prior-year profit.
Jun 26	Half-year results	Negative	-16.8%	Six-month 2025 results showed revenue drop and swing to net loss.
Feb 10	Annual results	Positive	-8.4%	Fiscal 2024 revenue growth and net income with key GMO milestones.

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

Pattern Detected

Earnings releases have historically been followed by mostly negative price reactions, averaging -10.97%, with even strong results sometimes sold off.

Recent Company History

Over the past few reporting cycles, Origin Agritech’s earnings updates have produced mixed fundamentals but consistently negative next-day stock moves. Fiscal 2024 showed revenue growth and net income, yet the share price fell after the release. Results for fiscal 2025 and the six months ended March 31, 2025 highlighted revenue declines and rising losses, which were followed by sharper selloffs. Today’s first-half fiscal 2026 report fits into this ongoing turnaround narrative with continued losses but improved cost discipline.

Key Terms

gene-editing, nuclease, germplasm, gmo, +2 more

6 terms

gene-editing medical

"bringing the Cas-SF01 gene-editing nuclease into the Company's biotechnology toolkit."

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.

nuclease medical

"bringing the Cas-SF01 gene-editing nuclease into the Company's biotechnology toolkit."

A nuclease is a biological molecule that cuts DNA or RNA, acting like microscopic scissors that trim, remove or join genetic material. Investors should care because nucleases are core tools in gene therapies, diagnostics and genetic engineering—areas that can drive product value, regulatory scrutiny, intellectual property stakes and manufacturing complexity; a company’s control of nuclease technology can materially affect its prospects and risks.

germplasm medical

"using core germplasm and leveraging the Company's nationwide testing network."

Germplasm is the living genetic material—seeds, tissue, or cells—used to preserve and breed plants or animals. Think of it as a library or toolbox of traits (like drought tolerance or disease resistance) that breeders and biotech firms draw from to create new varieties. For investors, germplasm represents durable intellectual property and a source of future revenue and risk reduction because it underpins crop improvement, product differentiation, and resilience to changing markets and climates.

gmo medical

"licensing and commercialization pathway for Origin's GMO insect-resistant and herbicide-tolerant traits"

A genetically modified organism (GMO) is a plant, animal or microbe whose genetic material has been intentionally changed using laboratory techniques to add, remove or alter specific traits. Investors care because GMOs can change crop yields, costs, regulatory risk and market acceptance—much like upgrading parts in a car can improve performance but may also affect warranty and resale value—so their use can materially affect a company’s profitability and reputation.

transgenic medical

"commercialization of its BBL2-2 transgenic maize program, which received a GMO safety certificate"

An organism described as transgenic has had one or more genes from another species or source deliberately inserted into its DNA to give it new traits, like disease resistance or production of a useful protein. For investors, transgenic technology signals potential value drivers — it can create unique products, patentable assets, or regulatory risk, much like installing a new app can add features to a phone but may also require approval and maintenance.

glyphosate-tolerance medical

"and a glyphosate-tolerance gene (Cp4-epsps), providing the stacked-trait foundation"

Glyphosate-tolerance is the ability of a plant to survive applications of glyphosate, a widely used herbicide that kills weeds; this trait is often introduced by breeding or genetic modification so crops are not harmed while weeds are controlled. Investors care because seeds and traits that provide reliable weed control can affect crop yields, product sales, regulatory approval, intellectual property value, and legal or environmental risk—similar to buying a tool that lets a job be done faster but brings rules and liabilities to manage.

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Net Loss Narrows by 44% Year-Over-Year, Driven by 44% Reduction in Operating Expenses

BEIJING, May 21, 2026 /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, 2026.

Business Accomplishments and Highlights for the Six Months Ended March 31, 2026, and to date:

Strategic Partnerships and Commercialization:

• In March 2026, Origin formally launched the "Aoyun 2026" New Variety Promotion Program at its 2026 Annual Marketing Conference in Changsha, Hunan Province. The integrated commercial campaign is designed to accelerate market adoption of Origin's latest portfolio of high-performing seed products — including Jingke 317, Jinqiao 8, Xundan 203, and Aoyu 728 — across all of China's principal corn-producing regions. As part of the launch, CEO Weibin Yan personally signed performance accountability contracts for FY2026 and FY2027 with the Company's subsidiary general managers. Six regional teams concurrently finalized spring planting season deployment plans across China's key corn-growing markets.
• In November 2025, Origin executed a patent license agreement with Shunfeng BioTech, bringing the Cas-SF01 gene-editing nuclease into the Company's biotechnology toolkit. The license materially strengthens Origin's position in next-generation corn trait development by pairing Cas-SF01 as a precision-editing instrument with the Company's proprietary Hi3 induction-line delivery platform, advancing the commercialization pathway for stacked-trait hybrids.
• The Company's Origin Marker Biological Breeding Service Consortium, established in October 2024 with China Golden Marker Biotechnology Co., Ltd., continued to expand its cooperative network during the reporting period, advancing the licensing and commercialization pathway for Origin's GMO insect-resistant and herbicide-tolerant traits and gene-editing technologies.
• Origin has deepened collaborations with top corn breeders across different ecological zones, conducting joint crossing using core germplasm and leveraging the Company's nationwide testing network. Over 10,000 new corn combinations have been introduced or jointly assembled this year. A project led by Professors Jiansheng Li and Feng Tian of China Agricultural University is developing new germplasm from the Suwan population. Origin has also introduced the highly competitive variety Zhengtai 889 (co-developed with Professor Jihua Tang of Henan Agricultural University and Mr. Zhou Qingwei of Henan Sutai), which ranked first in national trials, and the CAU-bred variety Zhongnongda 8538, which performed strongly in Northwest China.

Biotechnology Advancements:

• During the 2025 winter season in South China, the Company's breeding work produced over 30,000 new corn test-cross combinations, including promising ones utilizing breakthrough germplasm such as QD14 for the Huang-Huai-Hai summer corn region. Using the Hi3 gene-editing technology, Origin has been improving main varieties for different ecological zones, particularly for plant density requirements. Leveraging two leaf-angle reduction genes exclusively licensed from China Agricultural University, precision "smart plant type" improvements have been completed on main varieties, including Yufeng 303 and T391, and the Company is accelerating the commercial conversion of these achievements.
• The Company continues to advance the commercialization of its BBL2-2 transgenic maize program, which received a GMO safety certificate from China's Ministry of Agriculture in May 2024. BBL2-2 incorporates dual insect-resistance genes (Cry1Ab and Cry3Bb) and a glyphosate-tolerance gene (Cp4-epsps), providing the stacked-trait foundation for Origin's next generation of biotechnology hybrids.
• Origin's national R&D platform now houses more than 200,000 corn germplasm resources. It supports in-house AI-assisted breeding programs that operate across genomic selection, image-based phenotyping, and donor-recipient pairing for the gene-editing pipeline, materially shortening the Company's breeding cycle and trait validation timeline.

Regulatory Approvals and Licensing:

• In October 2025, the Beijing Tongzhou District Market Supervision Administration approved the inclusion of GMO crop seed production within Beijing Origin Seed Limited's business scope, enabling the Company's principal operating entity to participate directly in China's expanding GMO seed sector.
• During the reporting period, Beijing Origin Seed Limited received its formal crop seed production and operation license from the Beijing Municipal Bureau of Agriculture and Rural Affairs. Combined with the license already held by the Company's subsidiary in Hainan, Origin now holds two crop seed production and operation licenses in China, significantly expanding its regional footprint and the geographies in which it can directly produce and commercialize seed.

Corporate Strategy and Market Expansion:

• In November 2025, the Company held a research and development work conference that further clarified its strategic direction focused on variety aggregation, variety development, and commercialization of biotechnologies, emphasizing the philosophy of "be first or be unique," expanding breeding approaches, strengthening collaborations with top breeders and institutions, and expanding testing scales, with good progress achieved to date.
• In October 2025, Origin re-entered the Northeast China market — one of the country's primary corn-producing regions — with a Variety Showcase and Technology Seminar held in Changchun, Jilin Province. The event drew more than 200 dealer partners and industry participants and resulted in formal regional commercial commitments. The Northeast initiative is supported by the Company's expanded national organization, which grew from 63 to 106 professionals during fiscal year 2025.
• In March 2026, the Company appointed Dr. Jian Zhang as an independent director of the Board. Dr. Zhang is a globally recognized authority in crop biotechnology with more than two decades of senior leadership experience at DuPont Pioneer, Syngenta, and BASF. Concurrently, Dr. Z. James Chen rejoined the Company as Chief Financial Officer. Dr. Chen previously served as Origin's Chief Executive Officer and Chief Financial Officer in two prior tenures, bringing institutional continuity and deep capital markets expertise to the executive team at a critical point in the Company's Recovery phase.

First Half Fiscal Year 2026 Financial Results:

Revenues for the six months ended March 31, 2026, were RMB 49.2 million (US$7.1 million), a decrease of 31.9% from RMB 72.3 million for the six months ended March 31, 2025. The decrease was primarily due to the strategic transition in the Company's product portfolio, as we're focusing more on sales of new corn seed products and reducing external seed tolling services.

Cost of revenues for the first half of fiscal 2026 was RMB 43.7 million (US$6.3 million), compared to RMB 64.2 million for the same period in 2025.

Gross profit for the six months ended March 31, 2026, was RMB 5.5 million (US$0.8 million), compared to RMB 8.1 million for the first half of fiscal 2025. Gross margin was 11.2%, consistent with the 11.2% reported in the prior-year period.

Total operating expenses for the first half of fiscal 2026 were RMB 18.4 million (US$2.7 million), a 43.9% decrease from RMB 32.8 million in the same period a year ago.

• Selling and marketing expenses were RMB 5.1 million (US$0.7 million), compared to RMB 2.6 million in the prior year, reflecting increased investment in the "Aoyun 2026" commercialization program and the expanded sales force.
• General and administrative expenses decreased by 69.8% to RMB 7.6 million (US$1.1 million), down from RMB 25.0 million in the first half of fiscal 2025, demonstrating the success of the Company's cost-control initiatives.
• Research and development expenses were RMB 5.7 million (US$0.8 million), an 11.1% increase from RMB 5.2 million in the prior year, as the Company continued to invest in its proprietary breeding and biotechnology pipeline.

Operating loss for the first half of fiscal 2026 was RMB 12.9 million (US$1.9 million), a reduction of 47.8% compared to an operating loss of RMB 24.7 million for the first half of fiscal 2025.

Net loss attributable to Origin Agritech Limited for the six months ended March 31, 2026, was RMB 14.4 million (US$2.1 million), compared to a net loss of RMB 25.6 million for the same period a year ago.

Basic and diluted net loss per share for the first half of fiscal 2026 was RMB 1.21 (US$0.17), compared to a net loss per share of RMB 3.55 in the first half of fiscal 2025.

Balance Sheet and Liquidity

As of March 31, 2026, the Company had cash and cash equivalents of RMB 13.4 million (US$1.9 million), compared to RMB 15.9 million as of September 30, 2025. Total current assets were RMB 60.8 million (US$8.8 million), and total assets were RMB 92.6 million (US$13.4 million).

Total current liabilities were RMB 155.6 million (US$22.5 million), and total liabilities were RMB 168.1 million (US$24.3 million) as of March 31, 2026. Short-term borrowings were RMB 9.5 million (US$1.4 million).

Note: The translation of Renminbi (RMB) into U.S. dollars (US$) is based on the exchange rate of RMB 6.9194 to US$1.00 as of March 31, 2026.

Management Commentary

Mr. Weibin Yan, Chief Executive Officer of Origin Agritech, commented, "Our first-half results demonstrate clear progress in our strategic turnaround. We have transferred our sales structure to our new product portfolio to align with market development, significantly reducing our operating loss and cutting general and administrative expenses by nearly 70%. This financial discipline is the direct result of the accountability structures we put in place over the past year. While top-line revenue reflects our proactive restructuring of operations — phasing out older businesses while pushing new product sales — our gross margins remained stable, and our cash position is solid."

"In the previous quarter, our new variety promotion count and sales volume increased. We are now executing the second phase of our strategic plan. With the launch of our 'Aoyun 2026' promotion program, we are aggressively pushing our next-generation seed varieties into the market. We have expanded both our R&D product lines and our sales force, improved our R&D network, re-entered the critical Northeast corn corridor, and secured the necessary production licenses. Furthermore, the recent appointments of Dr. Jian Zhang to our Board and the return of Dr. James Chen as CFO give us an executive team with stronger technical and capital markets expertise. We are positioned to convert our rebuilt infrastructure into tangible commercial results."

Conference Call & Audio Webcast

Origin will host a conference call on Friday, May 22, at 8 a.m. ET with the investment community to discuss the Company's financial results and provide a business update. The conference call will be led by Mr. Weibin Yan, Chief Executive Officer, and Dr. Z. James Chen, Chief Financial Officer, who will be available to answer questions.

To access the call by phone, please call 1-800-267-6316 (United States) or 1-203-518-9783 (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=1764036&tp_key=4b33d6defb.

A webcast replay will be available for two weeks.

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 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 originagritech.com. The Company also maintains an X account to update investors on Company and industry developments, available at 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: 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

View original content:https://www.prnewswire.com/news-releases/origin-agritech-announces-financial-results-for-the-first-half-of-fiscal-year-2026-302778474.html

SOURCE Origin Agritech Limited

FAQ

How did Origin Agritech (NASDAQ: SEED) perform in first-half fiscal 2026?

Origin Agritech reported lower revenue but a smaller net loss in first-half fiscal 2026. According to Origin Agritech, revenue fell 31.9% to RMB 49.2 million, while net loss narrowed 44% year-over-year to RMB 14.4 million through significant cost reductions.

What were Origin Agritech’s key financial metrics for H1 FY2026?

Origin Agritech’s key metrics included revenue of RMB 49.2 million and gross profit of RMB 5.5 million. According to Origin Agritech, gross margin stayed at 11.2%, operating loss fell to RMB 12.9 million, and basic and diluted loss per share improved to RMB 1.21.

Why did Origin Agritech’s H1 FY2026 revenue decline year-over-year?

Origin Agritech’s revenue declined mainly due to shifting its product mix. According to Origin Agritech, it focused more on new corn seed sales and reduced external seed tolling services, which led to a 31.9% year-over-year revenue decrease to RMB 49.2 million.

How did Origin Agritech reduce operating expenses in first-half fiscal 2026?

Origin Agritech achieved large cost reductions across its operations. According to Origin Agritech, total operating expenses fell 43.9% to RMB 18.4 million, driven by a 69.8% drop in general and administrative expenses to RMB 7.6 million while maintaining R&D investment growth.

What is Origin Agritech’s cash and debt position as of March 31, 2026?

Origin Agritech ended March 31, 2026 with lower cash and notable liabilities. According to Origin Agritech, cash and cash equivalents were RMB 13.4 million, current liabilities were RMB 155.6 million, total liabilities RMB 168.1 million, and short-term borrowings RMB 9.5 million.

What strategic initiatives did Origin Agritech launch with the “Aoyun 2026” program?

The “Aoyun 2026” program aims to speed adoption of new corn varieties. According to Origin Agritech, it promotes hybrids like Jingke 317 and Aoyu 728 nationwide, aligns regional teams’ planting plans, and ties subsidiary managers’ performance to FY2026–FY2027 commercialization goals.

How is Origin Agritech advancing its GMO and gene-editing seed pipeline in 2026?

Origin Agritech continued to build its biotechnology platform in 2026. According to Origin Agritech, it is commercializing BBL2-2 transgenic maize with a GMO safety certificate, licensed the Cas-SF01 gene-editing nuclease, and uses its Hi3 platform with over 200,000 corn germplasm resources.