Origin Agritech Provides First Half Revenue Forecast and Updates Advancements in Hybrids and GMO Development

Rhea-AI Summary

Origin Agritech (NASDAQ: SEED) reports an impressive estimated revenue growth of 30-40% in the first half of FY 2024. The company highlights successful completion of national trials for two new hybrids and progress in developing four GMO corn hybrids. Origin also submits biosafety certification application for a GMO trait, showcasing commitment to agricultural biotechnology.

Agricultural Biotechnology Expert

The reported revenue growth of 30-40% for Origin Agritech signifies a robust performance, likely driven by the company's innovation in crop genetics and the development of new hybrids. This level of growth is significant, as it suggests a strong demand for their products, possibly due to the increased need for higher yield crops in response to global food security concerns. The successful completion of national trials for two new hybrids indicates a potential increase in the company's product offerings, which could enhance its competitive edge in the agricultural biotech market.

Moreover, the advancement of four GMO corn hybrids through national trials and the submission of a new biosafety certification application reveal a strategic focus on GMO technology. This technology is essential for improving crop resilience and yield, which aligns with global trends in sustainable agriculture. The development of the NEC hybrid and its planned large-scale planting could also mark a significant contribution to regional agricultural productivity, thus potentially impacting the company's market share and profitability.

Market Analyst

From a market perspective, Origin Agritech's performance update is likely to be positively received by investors, as revenue growth and product pipeline expansion are key indicators of a company's future profitability. The anticipated commercial availability of new hybrids in 2025 could be factored into long-term growth projections. However, it's important to note that the agricultural sector is subject to regulatory risks, particularly in the area of GMOs. The company's efforts to comply with biosafety standards and secure certifications are critical steps, but regulatory changes or public sentiment shifts could impact future growth trajectories.

Furthermore, the focus on the NEC hybrid and its introduction to Xinjiang suggests a strategic move to capitalize on regional growth opportunities. This could position Origin Agritech favorably within China's agricultural sector, provided that the hybrid's performance meets expectations. Investors should monitor the progress of these developments closely, as they could have significant implications for the company's stock performance in both the short and long term.

Sustainability Analyst

Origin Agritech's updates underscore the company's alignment with sustainability trends in agriculture. The emphasis on developing hybrids that contribute to agricultural productivity and sustainability is in line with the increasing global focus on sustainable farming practices. The successful commercialization and adoption of these hybrids, particularly those that are GMO, could serve as a case study for the industry, demonstrating how biotechnological innovations can address critical issues such as food security and environmental sustainability.

However, the integration of GMO crops into the market is accompanied by environmental and health concerns. The company's commitment to regulatory compliance is commendable, but the long-term environmental impacts and the public's acceptance of GMO products remain areas of scrutiny. Stakeholders, including investors, should consider both the potential benefits and the risks associated with GMO adoption, as these factors can influence consumer acceptance and, ultimately, the company's reputation and financial performance.

Estimated Revenue Growth of 30-40% in the First Half of FY 2024

Two New Hybrids Completed National Trials and Four GMO Corn Hybrids Currently in National Trials

BEIJING, April 2, 2024 /PRNewswire/ -- Origin Agritech Ltd. (NASDAQ: SEED) (the "Company" or "Origin"), a leading Chinese agricultural technology company, provided an update on its financial and operational performance.

Origin Agritech reported an estimated half-year revenue of RMB 85-95 million, an increase of 30-40% compared to the same period in the previous fiscal year.

Product and Innovation Updates:

New Hybrid Developments: Two new hybrids have successfully completed three years of national trials and are expected to receive approval this summer. These hybrids are anticipated to be commercially available in 2025. Furthermore, an additional 15 new hybrids have entered the national official registration trial, highlighting the Company's ongoing commitment to expanding its product portfolio.

GMO Hybrid Trials: Progress continues in developing genetically modified organisms (GMOs), with four GMO hybrids undergoing national GMO hybrid trials. This initiative represents a significant step in the Company's efforts to introduce traits that enhance crop resilience and yield.

Biosafety Certification Application: Origin has submitted a new application for a GMO bt/gt trait for biosafety certification to further its advancements in GMO technology. This submission underscores the Company's dedication to adhering to regulatory standards while pushing the boundaries of agricultural biotechnology.

NEC Hybrid Success: The Company is also proud to report the successful performance of its new NEC hybrid. Following promising results, plans are underway to prepare for large-scale planting in Xinjiang. This expansion is poised to contribute significantly to the region's agricultural productivity and sustainability.

Dr. Gengchen Han, Chairman and CEO of Origin Agritech, commented, "Origin Agritech continues to lead the way in agricultural innovation, as evidenced by our strong financial performance and exciting progress in product development. With new hybrids and GMO technology advancements, we are setting the stage for a future where agriculture is more productive, sustainable, and resilient. We remain committed to leveraging our gene editing and hybrid development expertise to address the pressing challenges of food security and agricultural sustainability and deliver high-value solutions to farmers and stakeholders worldwide."

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.

Forward-Looking Statements

This communication contains "forward-looking statements" as defined in the federal securities laws, including Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements address expected future business and financial performance and financial condition and contain words like "expect," "anticipate," "intend," "plan," "believe," "seek," "will," "would," "target," and similar expressions and variations. Forward-looking statements address matters that are uncertain. Forward-looking statements are not guarantees of future performance and are based on assumptions and expectations that may not be realized. They are based on management's current expectations, assumptions, estimates, and projections about the Company and the industry in which the Company operates but involve a number of risks and uncertainties, many of which are beyond the Company's control. Some of the important factors that could cause the Company's actual results to differ materially from those discussed in forward-looking statements are: failure to develop and market new products and optimally manage product life cycles; ability to respond to market acceptance, rules, regulations and policies affecting our products; failure to appropriately manage process safety and product stewardship issues; changes in laws and regulations or political conditions; global economic and capital markets conditions, such as inflation, interest and currency exchange rates; business or supply disruptions; natural disasters and weather events and patterns; ability to protect and enforce the Company's intellectual property rights; and separation of underperforming or non-strategic assets or businesses. The Company undertakes no duty or obligation to publicly revise or update any forward-looking statements as a result of future developments, new information, or otherwise, should circumstances change, except as otherwise required by securities and other applicable laws. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure that such expectations will be correct. Actual results may differ materially from the anticipated results. You are urged to consider these factors carefully in evaluating the forward-looking statements contained herein. You are cautioned not to place undue reliance on such forward-looking statements, which are qualified in their entirety by these cautionary statements.

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

What is the estimated revenue growth reported by Origin Agritech for the first half of FY 2024?

Origin Agritech reported an estimated half-year revenue of RMB 85-95 million, showing a 30-40% increase compared to the same period in the previous fiscal year.

How many new hybrids have completed national trials according to the PR?

Two new hybrids have successfully completed three years of national trials and are expected to be commercially available in 2025.

How many GMO corn hybrids are currently undergoing national trials based on the PR?

Four GMO corn hybrids are currently undergoing national trials as part of Origin Agritech's efforts to enhance crop resilience and yield.

What application has Origin Agritech submitted for biosafety certification?

Origin Agritech has submitted a new application for a GMO bt/gt trait for biosafety certification, showcasing advancements in GMO technology.

Where is the Company planning large-scale planting of its new NEC hybrid according to the PR?

Origin Agritech is planning large-scale planting of its new NEC hybrid in Xinjiang following successful performance results.