Origin Agritech Limited (SEED) Special Call Transcript

Summary of Origin Agritech Limited Conference Call Company Overview - Company: Origin Agritech Limited (NASDAQ: SEED) - Industry: Agricultural Biotechnology Key Points GMO Commercialization Developments - Origin Agritech received a Chinese GMO safety certificate for its transgenic maize, BBL2-2, developed in collaboration with the Biotechnology Institute of the Chinese Academy of Agricultural Sciences [7] - BBL2-2 maize is engineered with two insect-resistant genes (Cry1Ab and Cry3Bb) and one herbicide-tolerance gene (Cp4-epsps), providing protection against various pests [7] - The company expects several hybrids with these traits to enter GMO variety registration trials, with approvals anticipated in one to two years [7] Hybrid Performance - A new hybrid, OY728, is expected to be ready for commercial production in the next growing season, with accelerated seed production and sales planned over the next six to twelve months [8] - The latest commercial hybrid has shown significant advantages over traditional varieties, optimized for high-density planting [8] - Feedback from farmers indicates higher yields and better crop health compared to previous plantings [9] Gene Editing Business Progress - Origin Agritech has developed a high-yield corn inbred through gene editing, demonstrating over a 50% yield increase compared to non-edited inbreds [10] - The company has established the world's first induction line genetic transformation system, allowing rapid editing of maize inbred lines [11] - Gene-edited hybrids are in production trials, with commercial production expected soon [12] Revenue Generation and Product Launches - The corn variety Aoyu 728 is projected to cover over 1 million mu and generate approximately RMB 40 million (around $7 million) in revenue in the 2025 season [16] - The GMO hybrid corn seed variety Aoyu 64BF is expected to start small-scale seed production in winter 2024, with sales beginning in 2025 [16] - The planting area of NEC corn in Xinjiang has doubled, with projected profits between RMB 2 to 5 million (approximately $350,000 to $950,000) [23] Future Plans and Partnerships - The company is exploring various commercial pathways for its gene editing platform utilizing CRISPR technology [22] - Origin Agritech anticipates completing the national trials for Aoyu 64BF by the end of 2024, with approvals for additional hybrids expected in one to two years [19] - The drying facility for NEC corn in Xinjiang is in the final stages of construction, expected to be completed by September [24] Closing Remarks - The company emphasizes its commitment to enhancing shareholder value and achieving fair market value reflective of its potential [27]