Origin Agritech Limited Reports Third Quarter Financial Results for Three Months Ended June 30,
Gross Margin increased from 31.76% to 41.30% for the three months, an increase of 9.54% as a
result of increased pricing in corn seed
Net Income of RMB 105.16 million increased 40.3% from RMB 74.97 million
BEIJING--(BUSINESS WIRE)--August 30, 2010-- Origin Agritech Limited (NASDAQ: SEED)
(“Origin” or the “Company”) , a technology-focused supplier of crop seeds in China, today announced
unaudited financial results for the third quarter ended June 30, 2010. Origin prepares its financial statements in
accordance with generally accepted accounting principles (GAAP) of the United States.
FINANCIAL RESULTS OVERVIEW
During the third quarter of fiscal 2010, the Company generated revenues of RMB 462.23 million (US$68.07
million), a decrease of 3.13% from RMB 477.17 million (US$69.84 million) generated in the three months ended
June 30, 2009.
Gross profit for the three-months ended June 30, 2010 was RMB190.90 million (US$28.11 million) compared
to RMB151.56 million (US$22.18 million) in the same period of the prior year. Gross margin for the quarter
increased from 31.76% in the same period of prior year to 41.30% for the three months ended June 30, 2010.
This is an increase of 9.54% over the three months ended June 30, 2009 as a result of increased pricing in corn
seed this quarter. Corn comprises the vast majority of our recognized revenues in this current quarter and a
significant portion of the rice seed sales will be recognized later this year.
Total operating expenses for the three-months ended June 30, 2010 were RMB37.54 million (US$5.53 million)
compared with RMB32.61 million (US$4.77 million) reported for the same period in 2009. Selling and
marketing expenses were RMB9.40 million (US$1.38 million) for the third quarter of 2010, representing a
decrease of 22.23% from RMB 12.08 million (US$1.77 million) for the same period of the last year, as a result
of lower spending th