Origin Agritech “ideally positioned” to benefit from China’s commitment to genetically modified food
Origin Agritech (NASDAQ: SEED) a supplier of hybrid and genetically-modified crop seeds in China, released audited financial results for the year ended September 30, 2009 this morning.
Revenues for the year ended September 30, 2009 were RMB592.49
million (US $86.76 million), an increase of 15.39% on the previous
fiscal year, while gross margins rose to 35.6% compared to 31.56% in
previous fiscal year, excluding scrap sales and an impairment of
inventory. Origin Agritech also posted an improved net loss, of
RMB40.82 million (US$5.98 million) compared to a net loss of US$6.37
million in the year ended September, 2008. Excluding non-recurring
charges related to the convertible notes charged mainly in the second
quarter of 2009, net income for the fiscal year ended 2009 was RMB 1.91
million (unaudited), or US$0.08 per diluted share, as compared to a
loss of US$0.27 per share a year ago.
Looking ahead, Origin said it was “ideally positioned” to
benefit from emerging trends in China, noting that the country is
undertaking a US$6 billion plan to implement genetically modified food
production in China.
"We remain excited of the positive growth trends illustrated by
results for the fiscal 2009 year period ended September 30, 2009,”
Liang Yuan, President and Chief Executive Officer of Origin Agritech,
commented, "While most other industries remain uncertain, we show
positive signs of significant improvement in both Origin's top-line and
bottom-line numbers. As expected, Origin's financials for the fiscal
2009 period ended September 30, 2009 showed revenue growth, margin
improvement, and bottom line increases from the fiscal year ended
September 30, 2008. We expect these trends to continue into FY 2010. As
the market trends more towards technology based products, we have
managed Origin's R&D and operations in anticipation of bringing
higher quality products to the market."
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