Origin Agritech Reports 24.6% Revenue Growth and Key Technological Milestones in Fiscal Year 2024
Rhea-AI Summary
Origin Agritech (NASDAQ: SEED) reported financial results for fiscal year 2024, showing revenue growth of 24.6% to RMB 113.4 million (US$16.2 million). The company achieved significant milestones in GMO development, receiving a safety certificate for transgenic maize BBL2-2 and advancing four GMO corn hybrids in national trials. Notable achievements include breakthrough gene editing technology published in NATURE and establishment of the Origin Marker Biological Breeding Service Consortium.
Financial highlights include operating expenses of RMB 52.7 million (US$7.5 million) and net income of RMB 20.7 million (US$3.0 million). Cash position stood at RMB 8.4 million (US$1.2 million) as of September 30, 2024. The company appointed new leadership with Weibin Yan as CEO and Patrick Cheng as CFO.
Positive
- Revenue increased 24.6% to RMB 113.4 million (US$16.2 million)
- Received GMO safety certificate for transgenic maize BBL2-2
- Four GMO corn hybrids entered national trials with potential approvals in 2025-2026
- Breakthrough in maize gene editing technology published in NATURE
- Established strategic consortium for GMO and gene editing technology commercialization
Negative
- Operating expenses increased 63% to RMB 52.7 million
- Net income decreased 62.6% from RMB 55.3 million to RMB 20.7 million
- Cash position declined 64.6% to RMB 8.4 million
- Net cash used in operating activities increased to RMB 15 million from RMB 5.5 million
News Market Reaction – SEED
On the day this news was published, SEED declined 8.43%, reflecting a notable negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
Announces Filing of Annual Report on Form 20-F for Fiscal Year 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 than10% ; 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
Total operating expenses for the fiscal year ended September 30, 2024, were
Selling and marketing expenses for fiscal year 2024 were
General and administrative expenses for the fiscal year ended September 30, 2024, were
Research and development expenses were
Net income from continuing operations for the fiscal year ended September 30, 2024, was
Net income attributable to Origin for the fiscal year ended September 30, 2024 was
Liquidity
As of September 30, 2024 and 2023, we had approximately
Net cash used in operating activities was
Net cash used in investing activities was
Net cash provided by financing activities was
Management Commentary
Mr. Weibin Yan, CEO of Origin Agritech, commented, "Fiscal year 2024 marked a transformative period for Origin Agritech, with revenue growing to
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 (
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
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
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