Origin Agritech Announces Long-Term Revenue Projections Across Key Product Lines Through 2029

Rhea-AI Summary

Origin Agritech (NASDAQ: SEED), a leading Chinese agricultural technology company, has announced its revenue projections for key product lines through 2029. The company expects significant growth, with total revenue projected to increase from ￥52,580,000 ($7,240,000) in 2022 to ￥958,747,000 ($132,019,000) by 2029. This growth is driven by three main product lines: hybrid seeds, NEC, and GMO.

The projections assume that China's GMO corn will account for 70% of the total corn planting area in 5 years, with Origin aiming for a 5% market share. GMO seeds are expected to contribute revenue starting in 2025, while GMO IP granting business is projected to begin in 2027. The company's CEO, Dr. Gengchen Han, expressed optimism about Origin's growth prospects and its role in addressing global food security challenges.

Positive

• Projected revenue growth from ￥52,580,000 in 2022 to ￥958,747,000 by 2029
• Introduction of new revenue streams: NEC and GMO products
• Anticipated 5% market share in China's GMO corn market
• Diversification of product portfolio with hybrid seeds, NEC, and GMO offerings

Negative

• Heavy reliance on future GMO approvals and market adoption
• Potential regulatory risks associated with GMO products in China
• Ambitious growth projections may be challenging to achieve

BEIJING, July 23, 2024 /PRNewswire/ -- Origin Agritech Ltd. (NASDAQ: SEED) (the "Company" or "Origin"), a leading Chinese agricultural technology company, is pleased to announce its revenue projections for key product lines through the year 2029.

Revenue Projections
	Revenue from hybrid seeds and other	Revenue from NEC	Revenue from GMO	Total Revenue(￥'000)	Total Revenue(US$'000)
2022	￥52,580	-	-	￥52,580	$7,240
2023	￥93,307	-	-	￥93,307	$12,848
2024 (Expected)	￥95,000	￥10,000	-	￥105,000	$14,458
2025 (Expected)	￥99,750	￥50,000	￥30,000	￥179,750	$24,751
2026 (Expected)	￥104,738	￥100,000	￥90,000	￥294,738	$40,585
2027 (Expected)	￥109,974	￥150,000	￥210,000	￥469,974	$64,715
2028 (Expected)	￥115,473	￥225,000	￥330,000	￥670,473	$92,324
2029 (Expected)	￥121,247	￥337,500	￥500,000	￥958,747	$132,019
Assumptions: In 5 years, China's GMO corn will account for 70% of the total corn planting area, about 400 million mu. Origin aims to have a 5% market share of about 20 million mu (GMO seed sale & IP granting). Exchange rate $:￥:7.2622 (July 15) GMO seeds sale begins to contribute revenue in 2025 GMO IP granting business begins to contribute revenue in 2027

Dr. Gengchen Han, Chairman and CEO of Origin Agritech, commented: "We are excited about the growth prospects for Origin Agritech as we continue to innovate and expand our product offerings. These revenue projections and our clear timeline for GMO corn variety approvals reflect our commitment to delivering high-value solutions to farmers worldwide and significant value to our shareholders. By leveraging our GMO technology and gene editing expertise, we are well-positioned to address global food security challenges and promote sustainable agricultural practices."

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.

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

FAQ

What is Origin Agritech's projected revenue for 2029?

Origin Agritech (NASDAQ: SEED) projects a total revenue of ￥958,747,000 ($132,019,000) for the year 2029.

When does Origin Agritech expect to start generating revenue from GMO seeds?

Origin Agritech (SEED) expects to start generating revenue from GMO seeds in 2025.

What market share does Origin Agritech aim to achieve in China's GMO corn market?

Origin Agritech (SEED) aims to achieve a 5% market share in China's GMO corn market, which is expected to account for 70% of the total corn planting area in 5 years.

How many product lines are included in Origin Agritech's revenue projections through 2029?

Origin Agritech's (SEED) revenue projections through 2029 include three main product lines: hybrid seeds, NEC, and GMO.