Origin Agritech Limited Reports Unaudited First Quarter Financial Results For Three Months Ended December 31, 2013 - Wandtv.com, NewsCenter17, StormCenter17, Central Illinois News-

Origin Agritech Limited Reports Unaudited First Quarter Financial Results For Three Months Ended December 31, 2013

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SOURCE Origin Agritech Limited

BEIJING, Feb. 21, 2014 /PRNewswire/ -- Origin Agritech Limited (NASDAQ GS: SEED) ("Origin", or the "Company"), a technology-focused supplier of crop seeds in China, today announced unaudited financial results for the first quarter ended December 31, 2013. Origin prepares its financial statements in accordance with generally accepted accounting principles (GAAP) of the United States.

FINANCIAL RESULTS OVERVIEW

During the first quarter of fiscal year 2014, the Company generated revenues of RMB 20.4 million (US$3.3 million) compared with RMB 22.7 million in the three months ended December 31, 2012.  The revenues this quarter were all from the canola business, which was down by 6% from RMB21.7 million canola revenues in the same quarter one year ago. The decrease was mainly due to the short supply of a main canola seed product.

Deferred revenues were RMB312.6 million (US$51.3 million) as of December 31, 2013, compared with RMB317.4 million as of December 31, 2012. Deferred revenues reported a year ago included deferred revenues from corn seed toll production of RMB23.9 million from Xinjiang Origin. Excluding this item, deferred revenues from the Company's core businesses increased by 6.5% year-over-year, mainly due to an increase in the corn seed volume shipped during the 2014 selling season.

Deferred revenues reflect the value of Origin's crop seeds after: a) sales arrangement is confirmed; b) delivery to the customer is made; and c) pre-payment from the customer is received, but before the final sales price is fixed and determined. The final sales price is largely determined by sales incentives that Origin offers to its customers. It is expected that the majority of these deferred revenues will be recorded on the income statement in the third to fourth fiscal quarters.

Gross profit for the three months ended December 31, 2013 was RMB10.1 million (US$1.6 million), compared with RMB11.9 million in the same period of the prior year.

Total operating expenses for the first quarter ended December 31, 2013 were RMB34.4 million (US$5.6 million), compared with RMB 34.1 million reported for the same period in fiscal year 2013. Selling and marketing expenses were RMB16.3 million (US$2.7 million) for the first quarter of fiscal 2014, which is consistent with RMB16.8 million for the same period last year. General and administrative expenses were RMB10.5 million (US$1.7 million) for the first quarter ended December 31, 2012, down by 16.2% from RMB12.6 million one year ago. The decline was mainly due to continued expense control measures. Research and development expenses were RMB10.2 million (US$1.7 million) in the first quarter of fiscal 2014, which is consistent with RMB10.1 million for the same quarter last year.

Operating loss for the first quarter of fiscal 2014 was RMB24.3 million (US$4.0 million) compared with operating loss of RMB 22.2 million for the same period in fiscal 2013.

Net loss for the first quarter of fiscal 2014 was RMB31 million (US$5.1 million), or net loss per share of RMB1.36 (US$0.22), compared with net loss of RMB23 million, or net loss per share of RMB0.98 in the same period one year ago.

BALANCE SHEET

As of December 31, 2013, cash and cash equivalents were RMB146.1 million (US$24 million) and shareholders' equity was RMB234.2 million (US$38.4 million). The Company had short-term loans of RMB283.7 million (US$46.5 million) and long-term borrowing of RMB42.5 million (US$7 million). Short-term loans were mainly for the working capital, while long-term borrowing of bank loans were used for the construction and opening of the Xinjiang Origin corn seed production facilities.

Advances from customers were RMB221.6 million (US$36.3 million) as of December 31, 2013. These advances represent cash receipts for orders in the upcoming selling season.

About Origin

Founded in 1997 and headquartered in Zhong-Guan-Cun (ZGC) Life Science Park in Beijing, Origin Agritech Limited (NASDAQ GS: SEED) is China's leading agricultural biotechnology company, specializing in crop seed breeding and genetic improvement, seed production, processing, distribution, and related technical services. Leading the development of crop seed biotechnologies, Origin Agritech's phytase corn was the first transgenic corn to receive the Bio-Safety Certificate from China's Ministry of Agriculture. Over the years, Origin has established a robust biotechnology seed pipeline including products with glyphosate tolerance and pest resistance (Bt) traits. Origin operates production centers, processing centers and breeding stations nationwide with sales centers located in key crop-planting regions. Product lines are vertically integrated for corn, rice and canola seeds. For further information, please log on to the Company's website at: www.originseed.com.cn.

Forward Looking Statement

This release contains forward-looking statements. All forward-looking statements included in this release are based on information available to us on the date hereof. These statements involve known and unknown risks, uncertainties and other factors, which may cause our actual results to differ materially from those implied by the forward-looking statements. In some cases, you can identify forward-looking statements by terminology such as "may," "will," "should," "could," "expects," "plans," "anticipates," "believes," "estimates," "predicts," "potential," "targets," "goals," "projects," "continue," or variations of such words, similar expressions, or the negative of these terms or other comparable terminology. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements. Therefore, actual results may differ materially and adversely from those expressed in any forward-looking statements. Neither we nor any other person can assume responsibility for the accuracy and completeness of forward-looking statements. Important factors that may cause actual results to differ from expectations include, but are not limited to, those risk factors discussed in Origin's filings with the SEC including its annual report on Form 20-F to be filed. We undertake no obligation to revise or update publicly any forward-looking statements for any reasons.


 

ORIGIN AGRITECH LIMITED

UNAUDITED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME

(In thousands, except share data)

 








     Three Months ended December 31,




2012



2013




RMB




RMB




USD














Revenues


22,683




20,368




3,322


Cost of revenues


(10,810)




(10,317)




(1,683)


Gross profit


11,873




10,051




1,639


Operating expenses:












Selling and marketing


(16,817)




(16,269)




(2,654)


General and administrative


(12,588)




(10,547)




(1,720)


Research and development


(10,061)




(10,185)




(1,661)


Other operating income, net


5,367




2,604




425


Total operating expenses


(34,099)




(34,397)




(5,610)














Loss from operations


(22,226)




(24,346)




(3,971)



Interest expense


(2,143)




(4,177)




(681)


Share of net income (loss) of equity investment


150




(279)




(46)


Interest income


540




258




42


Loss before income taxes


(23,679)




(28,544)




(4,656)


Income tax expense












Current


(217)




-




-


Deferred


-




-




-


Income tax expense


(217)




-




-



Net loss


(23,896)




(28,544)




(4,656)


Less: Net income (loss) attributable to the non-controlling interests


(900)




2,485




405














Net loss attributable to Origin Agritech Limited


(22,996)




(31,028)




(5,061)



Other comprehensive income (loss)












Net loss


(23,896)




(28,544)




(4,656)


Foreign currency translation difference


499




572




93


Comprehensive loss


(23,397)




(27,972)




(4,563)


Less: Comprehensive income (loss) attributable to non-controlling interests


(900)




2,485




405


Comprehensive loss attributable to Origin Agritech Limited


(22,497)




(30,457)




(4,968)














Net loss per share – basic


(0.98)




(1.36)




(0.22)


Net loss per share – diluted


(0.98)




(1.36)




(0.22)














Shares used in calculating basic and diluted net loss per share


23,382,812




22,743,853




22,743,853














 

 

ORIGIN AGRITECH LIMITED

UNAUDITED CONSOLIDATED BALANCE SHEETS

(In thousands, except share data)

 



12/31/2012


9/30/2013

12/31/2013


12/31/2013




RMB


RMB

RMB


US$


ASSETS









Current Assets









Cash and cash equivalents


222,805


131,978

146,075


23,959


Accounts receivable


7,200


1,949

2,835


465


Due from related parties


2,000


3,400

3,200


525


Advances to suppliers


6,940


9,768

9,751


1,599


Advances to growers


2,254


58,473

9,243


1,516


Inventories


649,227


470,811

733,102


120,242


Income tax recoverable


2,159


1,163

1,163


191


Other current assets


7,891


7,000

5,873


963


Total current assets


900,476


684,542

911,242


149,460


Restricted cash


-


14,350

14,350


2,354


Land use rights, net


32,341


33,205

35,101


5,757


Plant and equipment, net


340,282


354,735

353,300


57,947


Equity investments


22,584


24,894

24,615


4,037


Goodwill


11,973


11,973

11,973


1,964


Acquired intangible assets, net


25,093


23,117

22,139


3,631


Deferred income tax assets


1,755


-

-


-


Other assets


12,787


11,256

9,609


1,576


Total assets


1,347,291


1,158,072

1,382,329


226,726


LIABILITIES AND EQUITY









Current liabilities









Short-term borrowings


145,000


205,000

267,194


43,825


Current portion of long-term borrowings


8,000


16,500

16,500


2,706


Accounts payable


13,217


4,590

15,499


2,542


Due to growers


19,486


37,875

99,362


16,297


Due to related parties


15,400


1,530

6,216


1,020


Advances from customers


366,162


371,571

221,584


36,344


Deferred revenues


317,424


22,069

312,561


51,265


Income tax payable


39,060


39,060

39,060


6,407


Other payables and accrued expenses


55,282


53,783

48,370


7,934


Total current liabilities


979,031


751,978

1,026,346


168,340


Long-term borrowings


56,000


64,819

42,523


6,975


Other long-term liability


21,475


21,030

22,573


3,702


Total liabilities


1,056,506


837,827

1,091,442


179,017


Commitments and contingencies


















Shareholders' equity:









Preferred stock (no par value; 1,000,000 shares authorized, none

issued)


-


-

-




Common stock (no par value; 60,000,000 shares authorized,









23,881,663, 24,016,163 and 24,016,163 shares issued as of December

31, 2012, September 30, 2013 and December 31, 2013;






23,382,812, 22,905,926 and 22,738,541 shares outstanding as of






December 31, 2012, September 30, 2013 and December 31, 2013)


-


-

-




Additional paid-in capital


398,421


399,564

399,947


65,598


Accumulated deficit


(123,963)


(93,473)

(124,501)


(20,420)


Treasury stock at cost (498,851, 1,110,237 and 1,277,622 shares as of

December 31, 2012, September 30, 2013 and December 31, 2013)


(29,377)


(35,659)

(37,429)


(6,139)


Accumulated other comprehensive loss


(5,781)


(4,390)

(3,818)


(628)


Total Origin Agritech Limited shareholders' equity


239,300


266,042

234,199


38,411











Non-controlling interests


51,485


54,203

56,688


9,298


Total equity


290,785


320,245

290,887


47,709











Total liabilities and equity


1,347,291


1,158,072

1,382,329


226,726












CONTACT:
Origin Agritech Limited
James Chen,
Chief Financial Officer
james.chen@originseed.com.cn

Kay Liu
Investor Relations
ke.liu@originseed.com.cn
+86 10 5890-7536

©2012 PR Newswire. All Rights Reserved.

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