Origin Agritech Grows Revenue by 77% Year-Over-Year, Records Net Income of $8.7 Million

Core Viewpoint - Origin Agritech Ltd. has reported significant financial growth for the fiscal year 2023, driven by strong performance in hybrid corn seeds and advancements in biotechnology, positioning the company for a landmark year in 2024 [2][6]. Financial Performance - For the fiscal year ended September 30, 2023, revenue reached RMB 93.3 million (US$ 13 million), marking a 77.5% increase from RMB 52.6 million in the previous year [6]. - Net income attributable to Origin for the fiscal year was RMB 62.7 million (US$ 8.7 million), compared to RMB 2.35 million for the fiscal year ended September 30, 2022 [9]. - Total operating expenses for the fiscal year were RMB 32.2 million (US$ 4.5 million), up from RMB 29.1 million in fiscal year 2022 [7]. Operational Highlights - The company announced the selection of its GMO corn hybrid for a national demo plot and the establishment of a new 33,000-acre growing and processing facility in Xinjiang, which is expected to significantly increase revenue [4]. - A groundbreaking ceremony for a 100,000-ton corn drying base in Shihezi, Xinjiang, was held on July 12, 2023 [4]. - Development of a new gene-editing method was announced, reducing cross-procedure timing from 4-5 years to just one year [4]. Strategic Initiatives - The company is projecting over 30% sales growth in its hybrid corn seed segment and expects its Nutritionally Enhanced Corn (NEC) to contribute more than 50% to total revenue in 2024 [2]. - A RMB 2 million grant from the Xinjiang government was received to support the construction of a local Germplasm Bank and contract growing of NEC [5]. - The company finalized an agreement to convert approximately RMB 137.7 million in debt into equity, enhancing its financial health [5]. Research and Development - Research and development expenses remained stable at RMB 7.4 million (US$ 1 million) for fiscal year 2023, focusing on proprietary crop seeds and genetically modified products [8]. - The company is making advancements in gene editing technology, which is expected to enhance existing product lines and open new revenue streams [2]. Liquidity and Cash Flow - As of September 30, 2023, the company had approximately RMB 23.7 million (US$ 3.3 million) in cash and cash equivalents, an increase from RMB 17.7 million in the previous year [10]. - Net cash provided by operating activities was RMB 5.5 million (US$ 0.76 million) during fiscal year 2023, compared to RMB 3.3 million for the previous fiscal year [10].