BEIJING, February 5, 2015 /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, 2014. Origin prepares its financial statements in accordance with generally accepted accounting principles (GAAP) of the United States.
BIOTECHNOLOGY PROGRESS
During the first quarter of fiscal year 2015, we submitted a patent application to the United States Patent and Trademark Office for our glyphosate-resistant technologies. In addition, we have also applied for a patent in Brazil for similar biotechnologies. The patent applications are listed below. We believe these patents will strengthen further our leading position in the genetically modified seed technologies in China and will allow us to expand our biotechnology position in the international seed market.
Patent/Patent |
Patent/Patent application title |
Date |
Country |
14/391,948 |
SYNTHETIC GLYPHOSATE-RESISTANT |
Oct 10, 2014 |
US |
1120140255296 |
GENE DE RESISTENCIA AO GLIFOSATO |
Oct 13, 2014 |
Brazil |
FINANCIAL RESULTS OVERVIEW
During the first quarter of fiscal year 2015, the Company generated revenues of RMB15.6 million (US$2.5 million), compared with revenues of RMB20.4 million in the three months ended December 31, 2013. The revenues of this quarter largely represented the sales from canola seeds and the decrease was mainly due to increasing competition in the canola seed business and our short supply of a main canola seed product.
Deferred revenues were RMB329.0 million (US$53.8 million) as of December 31, 2014, compared with RMB312.6 million as of December 31, 2013. Deferred revenues mainly 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 primarily 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, 2014 was RMB7.8 million (US$1.3 million), compared with RMB10.1 million in the same period of the prior year.
Total operating expenses for the first quarter ended December 31, 2014 were RMB30.3 million (US$4.9 million), compared with RMB34.4 million reported for the same period in fiscal year 2014. Selling and marketing expenses were RMB14.2 million (US$2.3 million) for the first quarter of fiscal 2015, compared to RMB16.3 million for the same period last year. General and administrative expenses were RMB8.9 million (US$1.4 million) for the first quarter ended December 31, 2014, down by 16.0% from RMB10.5 million one year ago. The decline was mainly due to the continued implementation of measures to control our expenses. Research and development expenses were RMB11.8 million (US$1.9 million) in the first quarter of fiscal 2015, compared with RMB10.2 million for the same quarter last year, which in part reflects our efforts to expand our intellectual property portfolio.
Operating loss for the first quarter of fiscal 2015 was RMB22.5 million (US$3.7million), compared with operating loss of RMB24.3 million for the same period in fiscal 2014.
Net loss attributable to Origin Agritech Limited for the first quarter of fiscal 2014 was RMB29.5 million (US$4.8 million), or net loss per basic and diluted share of RMB1.30 (US$0.21), compared with net loss of RMB31.0 million, or net loss per basic and diluted share of RMB1.36 in the same period one year ago.
BALANCE SHEET
As of December 31, 2014, cash and cash equivalents were RMB82.3 million (US$13.4 million) and shareholders' equity was RMB227.8 million (US$37.2 million). The Company had short-term loans of RMB245 million (US$40.0 million) and total long-term borrowing of RMB52.0 million (US$8.5 million). Short-term loans were mainly used for the working capital, while long-term borrowings of bank loans were used for financing the construction of the Xinjiang Origin corn seed production facilities.
Advances from customers were RMB126.2 million (US$20.6 million) as of December 31, 2014. 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 in China, 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.
UNAUDITED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (In thousands, except share data) |
||||||||||||
Three Months ended December 31, |
||||||||||||
2013 |
2014 |
|||||||||||
RMB |
RMB |
USD |
||||||||||
Revenues |
20,368 |
15,590 |
2,542 |
|||||||||
Cost of revenues |
(10,317) |
(7,788) |
(1,270) |
|||||||||
Gross profit |
10,051 |
7,802 |
1,272 |
|||||||||
Operating expenses: |
||||||||||||
Selling and marketing |
(16,269) |
(14,183) |
(2,313) |
|||||||||
General and administrative |
(10,547) |
(8,862) |
(1,445) |
|||||||||
Research and development |
(10,185) |
(11,775) |
(1,920) |
|||||||||
Other operating income, net |
2,604 |
4,553 |
742 |
|||||||||
Total operating expenses |
(34,397) |
(30,267) |
(4,936) |
|||||||||
Loss from operations |
(24,346) |
(22,465) |
(3,664) |
|||||||||
|
(4,177) |
(4,574) |
(746) |
|||||||||
Share of net loss of equity investment |
(279) |
- |
- |
|||||||||
Interest income |
258 |
26 |
4 |
|||||||||
Loss before income taxes |
(28,544) |
(27,013) |
(4,406) |
|||||||||
Income tax expense |
||||||||||||
Current |
- |
(1,203) |
(196) |
|||||||||
Deferred |
- |
- |
- |
|||||||||
Income tax expense |
- |
(1,203) |
(196) |
|||||||||
|
(28,544) |
(28,216) |
(4,602) |
|||||||||
Less: Net income attributable to the non-controlling interests |
2,485 |
1,287 |
210 |
|||||||||
Net loss attributable to Origin Agritech Limited |
(31,028) |
(29,503) |
(4,812) |
|||||||||
|
||||||||||||
Net loss |
(28,544) |
(28,216) |
(4,602) |
|||||||||
Foreign currency translation difference |
572 |
401 |
65 |
|||||||||
Comprehensive loss |
(27,972) |
(27,815) |
(4,537) |
|||||||||
Less: Comprehensive income attributable to non-controlling interests |
2,485 |
1,287 |
210 |
|||||||||
Comprehensive loss attributable to Origin Agritech Limited |
(30,457) |
(29,102) |
(4,747) |
|||||||||
Net loss attributable to Origin Agritech Limited per share - basic |
(1.36) |
(1.30) |
(0.21) |
|||||||||
Net loss attributable to Origin Agritech Limited per share - diluted |
(1.36) |
(1.30) |
(0.21) |
|||||||||
Shares used in calculating basic and diluted net loss per share |
22,743,853 |
22,738,541 |
22,738,541 |
|||||||||
UNAUDITED CONSOLIDATED BALANCE SHEETS |
||||||||
(In thousands, except share data) |
||||||||
12/31/2013 |
9/30/2014 |
12/31/2014 |
12/31/2014 |
|||||
RMB |
RMB |
RMB |
US$ |
|||||
ASSETS |
||||||||
Current Assets |
||||||||
Cash and cash equivalents |
146,075 |
46,268 |
82,250 |
13,442 |
||||
Restricted cash |
- |
15,670 |
14,350 |
2,345 |
||||
Accounts receivable |
2,835 |
1,021 |
2,965 |
484 |
||||
Due from related parties |
3,200 |
2,698 |
5,200 |
850 |
||||
Advances to suppliers |
9,751 |
17,751 |
10,625 |
1,736 |
||||
Advances to growers |
9,243 |
20,759 |
1,903 |
311 |
||||
Inventories |
733,102 |
516,368 |
636,787 |
104,067 |
||||
Income tax recoverable |
1,163 |
48 |
48 |
8 |
||||
Other current assets |
5,873 |
4,368 |
4,323 |
707 |
||||
Total current assets |
911,242 |
624,951 |
758,451 |
123,950 |
||||
Restricted cash |
14,350 |
- |
- |
- |
||||
Land use rights, net |
35,101 |
31,799 |
32,130 |
5,251 |
||||
Plant and equipment, net |
353,300 |
338,526 |
334,899 |
54,731 |
||||
Equity investments |
24,615 |
18,721 |
23,721 |
3,877 |
||||
Goodwill |
11,973 |
11,973 |
11,973 |
1,957 |
||||
Acquired intangible assets, net |
22,139 |
34,891 |
33,882 |
5,537 |
||||
Other assets |
9,609 |
4,009 |
3,502 |
572 |
||||
Total assets |
1,382,329 |
1,064,870 |
1,198,558 |
195,875 |
||||
LIABILITIES AND EQUITY |
||||||||
Current liabilities |
||||||||
Short-term borrowings |
267,194 |
225,000 |
245,000 |
40,039 |
||||
Current portion of long-term borrowings |
16,500 |
33,805 |
32,488 |
5,309 |
||||
Accounts payable |
15,499 |
4,525 |
15,514 |
2,535 |
||||
Due to growers |
99,362 |
17,943 |
57,862 |
9,456 |
||||
Due to related parties |
6,216 |
11,711 |
11,469 |
1,874 |
||||
Advances from customers |
221,584 |
324,645 |
126,201 |
20,625 |
||||
Deferred revenues |
312,561 |
19,029 |
328,975 |
53,763 |
||||
Income tax payable |
39,060 |
- |
1,203 |
197 |
||||
Other payables and accrued expenses |
48,370 |
67,953 |
58,926 |
9,630 |
||||
Total current liabilities |
1,026,346 |
704,611 |
877,638 |
143,428 |
||||
Long-term borrowings |
42,523 |
31,023 |
19,523 |
3,191 |
||||
Other long-term liability |
22,573 |
19,649 |
18,689 |
3,054 |
||||
Total liabilities |
1,091,442 |
755,283 |
915,850 |
149,673 |
||||
Commitments and contingencies |
||||||||
Shareholders' equity: |
||||||||
Preferred stock (no par value; 1,000,000 shares authorized, none |
- |
- |
- |
- |
||||
Common stock (no par value; 60,000,000 shares authorized, |
||||||||
24,016,163, 24,016,163 and 24,016,163 shares issued as of December 31, 2013, September 30, 2014 and December 31, 2014; |
||||||||
22,738,541, 22,738,541 and 22,738,541 shares outstanding as of |
||||||||
December 31, 2013, September 30, 2014 and December 31, 2014) |
- |
- |
- |
- |
||||
Additional paid-in capital |
399,947 |
400,888 |
401,824 |
65,668 |
||||
Accumulated deficit |
(124,501) |
(103,000) |
(132,503) |
(21,654) |
||||
Treasury stock at cost (1,277,622, 1,277,622 and 1,277,622 shares as of December 31, 2013, September 30, 2014 and December 31, 2014) |
(37,429) |
(37,445) |
(37,445) |
(6,119) |
||||
Accumulated other comprehensive loss |
(3,818) |
(4,446) |
(4,045) |
(661) |
||||
Total Origin Agritech Limited shareholders' equity |
234,199 |
255,997 |
227,831 |
37,234 |
||||
Non-controlling interests |
56,688 |
53,590 |
54,877 |
8,968 |
||||
Total equity |
290,887 |
309,587 |
282,708 |
46,202 |
||||
Total liabilities and equity |
1,382,329 |
1,064,870 |
1,198,558 |
195,875 |
||||
CONTACT:
Kay Liu
Investor Relations
ke.liu@originseed.com.cn
+86 10 5890-7536
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/origin-agritech-limited-reports-unaudited-financial-results-for-three-months-ended-december-31-2014-and-announces-its-first-united-states-patent-application-300031347.html
