Business
Origin Agritech Reports First Half of 2022 Revenue Growth of 300% and Achievement of Profitability
BEIJING, May 5, 2022 /PRNewswire/ -- Origin Agritech Ltd. (NASDAQ: SEED) (the "Company" or "Origin"), an agriculture technology company, announced revenue for
About this update from Origin Agritech Limited
[{"type":"text","content":"BEIJING, May 5, 2022 /PRNewswire/ -- Origin Agritech Ltd. (NASDAQ: SEED) (the \"Company\" or \"Origin\"), an agriculture technology company, announced revenue for the first half of fiscal 2022 of RMB46.4 million (US $7.3 million) an increase of 300% vs. first half 2021, and earnings of RMB1.3 million (US $0.2 million, or $0.03 per share).\nSummary of Financial Results 6 Month Period Ending March 31, 2022\n1st half 2021 RMB\n1st half 2022 RMB\n% Change\n1st half 2022 USD\nRevenues\n11.6mm\n46.4mm\n300%\n$7.3mm\nOperating expenses\n12.1mm\n14.3mm\n18%\n$2.3mm\nOperating income/(loss)\n(7.8mm)\n(1.3mm)\nN/A\n($0.2mm)\nNet income/(loss)\n(4.6mm)\n1.3mm\nN/A\n$0.2mm\nThe company had RMB6.5 million (US $1 million) cash on 3/31/22 vs. RMB 15.4 million on 9/30/21. The cash was used to ramp up seed production and for other working capital purposes that funded the company's rapid growth. The company has access to borrowing under credit facilities that can be accessed as needed to fund future growth. Origin's complete financials will be filed under a form 6-K with the SEC that will be accessible on the company's website at: SEC Filings - Origin Agritech.\nGrowth drivers\nGrowth in the first half of 2022 came from the sale of the company's new high yield, disease tolerant corn variety that can adapt to stressful environments. During the 2021 growing season one of China's main growing areas experienced extreme weather fluctuations of drought followed by massive flooding. Despite this, the variety performed extremely well in this environment while other corn varieties planted nearby were decimated. This created goodwill for the Origin Agritech brand and big demand for the new hybrid seed. Origin did not have enough seed to meet demand and are expanding our seed production to meet anticipated 2023 demand.\nWhat's ahead for Origin?\nDespite the company's rapid growth rate in the first half of 2022, the company's biggest growth driver in the near-term, sale of its nutritionally enhance corn (NEC), contributed nothing to sales in the period but rather will hit in the second half of the year, after the harvest. We have formed joint venture companies with our feedstock partners and are busy ramping up production of NEC using contract growing. The partners are responsible for the capital expenditures for the contract growing and Origin supplies the ...