Origin Agritech Limited (NASDAQ:SEED) Q4 2024 Earnings Conference Call February 11, 2025 8:00 AM ET Company Participants Matthew Abenante - Strategic Investor Relations Weibin Yan - Chief Executive Officer Patrick Cheng - Chief Financial Officer Conference Call Participants Operator Thank you for standing by, and welcome to the Origin Agritech Fiscal Year 2024 Conference Call. Please note that, today's call is being recorded. It is now my pleasure to introduce Matthew Abenante of Strategic Investor Relation ...

Announces Filing of Annual Report on Form 20-F for Fiscal Year 2024BEIJING, Feb. 10, 2025 /PRNewswire/ -- Origin Agritech Ltd. (NASDAQ: SEED) (the "Company" or "Origin"), a leading Chinese agricultural technology company, today announced financial results for the year ended September 30, 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 t ...

Financial Performance - Revenues increased from RMB 52,580,000 in 2022 to RMB 93,307,000 in 2023, representing a growth of 77.5%[60] - Gross profit decreased slightly from RMB 17,247,000 in 2023 to RMB 16,067,000 in 2024, a decline of 6.8%[60] - Net income attributable to Origin Agritech Limited rose significantly from a loss of RMB 6,265,000 in 2022 to a profit of RMB 20,712,000 in 2024[60] - The company reported a comprehensive income of RMB 18,850,000 for the fiscal year 2024, down from RMB 62,455,000 in 2023[60] - Current working capital deficit improved from RMB 171,679,000 in 2023 to RMB 84,535,000 in 2024[62] - Total assets decreased from RMB 238,506,000 in 2023 to RMB 131,562,000 in 2024, a reduction of 44.8%[61] Research and Development - Research and development expenses increased from RMB 7,447,000 in 2023 to RMB 10,126,000 in 2024, an increase of 36%[60] - The company plans to continue its seed research and development activities, focusing on licensing seed traits and performing contract research[71] - The company has established several plant genetic engineering technology platforms, focusing on traits such as herbicide tolerance, insect resistance, and drought stress tolerance in corn inbred lines[182] - The company is working on drought-resistant traits for corn and next-generation quadruple stacked traits, aiming to enhance crop yield and quality[188] - The company has developed the world's first efficient genetic transformation system for maize induction line Hi3, allowing for rapid editing of maize inbred lines within a year[200] - The company has established the "Origin Marker Biological Breeding Service Consortium" to license its GMO insect-resistant and herbicide-tolerant traits to a wider range of industry players[201] Regulatory and Compliance Risks - The company faces significant risks related to government regulations and consumer acceptance of genetically modified products in China[74] - The independent auditors issued a going concern statement, indicating the need for additional capital to sustain operations[72] - The Chinese government may limit or not approve the commercialization of genetically modified corn products, which could adversely impact the company's future development[75] - The U.S. market requires rigorous testing and pre-approval for GM seeds, with the USDA and EPA involved in regulatory compliance, which can be costly and time-consuming[77] - Regulatory and legislative requirements for GM seeds may change over time, impacting sales and profitability in foreign markets[78] - Public acceptance of biotechnology products can influence government approvals and sales, potentially leading to increased regulation[83] - Compliance with PRC regulations is essential; failure to do so could result in fines or loss of operational capabilities, adversely affecting revenues[102] Competitive Landscape - The company faces significant international competition in the GM seed market, with major players like Monsanto (Bayer) and Corteva Agriscience holding approximately 70% of the U.S. GM corn seed market[86] - The seed production business is highly competitive, with both domestic and international companies entering the Chinese market, affecting pricing and market share[84] - The company competes on consistent product quality, brand identity, customer support, and a pipeline of proprietary products[204] - The multinational companies, including Pioneer, Monsanto, and Syngenta, pose a significant competitive threat due to their financial resources and high-quality seed products, particularly as GM seed products gain acceptance in China[208][209] Corporate Structure and Governance - The company operates through a variable interest entity (VIE) structure to comply with PRC regulations, which limits foreign ownership to a maximum of 49% in certain sectors[141] - The company relies on contractual arrangements with the VIE and its shareholders, which may not provide the same level of control as direct ownership[145] - The potential for conflicts of interest exists between the shareholders of the VIE and the company, which could adversely affect control and economic benefits[149] - The company has corporate protections in place, including an independent Board of Directors and audit committee, to safeguard its interests[140] Market and Operational Challenges - The evolving nature of the e-commerce market in China is crucial for the company's growth, requiring adaptation to technological changes and customer preferences[82] - The lengthy development process for new products poses challenges, with no assurance that current or future products will achieve commercial success[99] - The company faces risks related to product quality claims, which could lead to substantial legal expenses and damage awards, impacting market reputation and sales[100] - Limited business insurance coverage in China may expose the company to significant costs from business disruptions or litigation[101] Intellectual Property and Legal Risks - Intellectual property protection in China remains a developing legal sector, with significant counterfeiting affecting product sales[98] - The PRC legal system presents inherent uncertainties that may limit legal protections for non-PRC shareholders, affecting investment decisions[115] - The company has a total of eleven Chinese patents registered with the State Intellectual Property Office and twenty-three trademarks registered with the Trademark Office of China's State Administration for Industry and Commerce[193] Strategic Partnerships and Investments - In 2023, the company entered into a regional joint venture for corn supply chain and Nutrition Enhanced Corn (NEC) grow-by-contract business, holding 51% of the joint venture Baodao Origin in Henan province[179] - The company completed a transaction with Beijing Changping Technology Innodevelop Group, where BC-TID invested a total of RMB137.7 million ($20.2 million) and now owns 51% of Beijing Origin[177] - The company has entered into an agreement with Beijing DaBeiNong Biotechnology Co. Ltd. to combine traits for enhanced GM corn products, validating its germplasm and research capabilities[207] Financial and Tax Considerations - The company's subsidiaries may face increased tax liabilities due to changes in tax treatment, impacting overall financial condition[104] - Fluctuations in exchange rates between the Renminbi and the U.S. dollar could adversely affect the company's financial results when reported in U.S. dollar terms[111] - The withholding tax rate applicable to dividends payable by PRC companies to non-PRC-resident enterprises is 10%, unless reduced by treaties[161] Future Outlook - Future regulatory changes could impose additional requirements on the company, affecting its ability to conduct business and complete offerings[165] - The company has received safety certificates for its phytase corn products and insect-resistant and herbicide-tolerant corn products as of September 30, 2024[223] - The company is in the process of applying for GMO Biosafety certificates and is actively discussing requirements with related authorities[224]

BEIJING, Jan. 28, 2025 /PRNewswire/ -- Origin Agritech Ltd. (NASDAQ: SEED) (the "Company" or "Origin"), a leading Chinese agricultural technology company, will announce its financial results for fiscal year 2024 on Monday, February 10th after the market closes. Origin will host a conference call on Tuesday, February 11th at 8 a.m. ET with the investment community to discuss the Company's financial results and provide a business update. CONFERENCE CALL & AUDIO WEBCAST The conference call will be led by Mr. W ...

BEIJING, Jan. 17, 2025 /PRNewswire/ -- Origin Agritech Ltd. (NASDAQ: SEED) (the "Company" or "Origin"), a leading Chinese agricultural technology company, today announced the signing of cooperation agreements (the "agreements") with 12 prominent agricultural companies, including Beidahuang Kenfeng Seed Co., Ltd. and Denong Seed Co., Ltd. The Agreements were formalized during the Company's "Corn Smart Plant Type & Transgenic Breeding" seminar and Field Observation of Origin's corn transgenic experimental fie ...

SANYA, China, Jan. 16, 2025 /PRNewswire/ -- Origin Agritech Ltd. (NASDAQ: SEED) (the "Company" or "Origin"), a leading Chinese agricultural technology company, today announced significant advances in its biotechnology breeding program and a groundbreaking partnership during the 4th Sanya International Seed Industry Scientist Conference and 2025 International Seed Industry Technology Expo.During his keynote presentation at the conference's Corn Seed Forum, Origin CEO Yan Weibin outlined the Company's strateg ...

Accessibility StatementSkip Navigation The conference focused on Origin Agritech's corporate strategy for 2025 and the overall development of China's seed industry. Attendees participated in in-depth discussions and comprehensive planning sessions. Key Highlights from the Conference: Chairman's Vision: Dr. Gengchan Han, Chairman of Origin Agritech, outlined the Company's vision to establish three platforms: a technology development and cooperation platform, a profit-sharing platform, and an innovation plat ...

BEIJING, Oct. 21, 2024 /PRNewswire/ -- Origin Agritech Ltd. (NASDAQ: SEED) (the "Company" or "Origin"), a leading Chinese agricultural technology company, is pleased to announce the establishment of the "Origin Marker Biological Breeding Service Consortium" in partnership with China Golden Marker Biotechnology Co., Ltd. This consortium is designed to license Origin's GMO insect-resistant and herbicide-tolerant (IR/HT) traits to a wider range of industry players and to accelerate the application of Origin's ...

BEIJING, Aug. 23, 2024 /PRNewswire/ -- Origin Agritech Ltd. (NASDAQ: SEED) (the "Company" or "Origin"), a leading Chinese agricultural technology company, is pleased to announce the appointment of Mr. Weibin Yan as the new Chief Executive Officer (CEO) and member of the Board of Directors, effective immediately. Dr. Gengchen Han, who has served as CEO, will continue as Chairman of the Board.Mr. Yan brings a wealth of experience and leadership to Origin Agritech, with a distinguished career in the agricultur ...

BEIJING, Aug. 8, 2024 /PRNewswire/ -- Origin Agritech Ltd. (NASDAQ: SEED) (the "Company" or "Origin"), a leading Chinese agricultural technology company, is pleased to announce the appointment of Cheng Chi Kin (Patrick Cheng) as Chief Financial Officer and to the Board of Directors of the Company, effective immediately. With a distinguished career spanning over three decades in corporate management, investment, and financial control, Patrick Cheng will drive Origin Agritech's financial strategy and operatio ...