Origin Agritech Limited, a technology-focused supplier of crop seeds in China, incorporated in the British Virgin Islands, announced the unaudited financial results for three months ended June 30, 2009. During this period, the company generated revenues of US$69.84 mln, a 2.76% decrease from US$71.54 mln for the three months ended June 30, 2008.
Gross profit for the three-months ended June 30, 2009 was US$22.18 mln, compared to US$21.01 mln in the same period of 2008, mainly due to increased demand and pricing in all product categories. Total operating expenses for the three-months ended June 30, 2009 were US$4.77 million, compared with US$6.66 million reported for the same period in 2008. The 28.18% decrease in selling and marketing expenses compared to the third quarter of 2008 was mainly due to lower transportation costs. The 36.11% decrease of research and development costs, which made just US$0.92 mln during the three months ended June 30, 2009, was due to lower charges for scientific co-operation projects of this year. The reported period is the third quarter of lower year-over-year expenses for Origin.
The BVI company reported income for operations for the third quarter of 2009 amounting to US$17.41 mln, compared with US$14.34 mln for the same period of 2008. Net income for the reported period was US$10.98 mln, or US$0.48 per diluted share, as compared to a net income of US$8.77 mln (or US$0.38 per diluted share) in the same period a year ago.
For the nine months ended June 30, 2009, Origin Agritech’s revenue made US$78.26 mln. Gross profit for this period was US$23.94 mln, compared to US$21.01 mln in the first nine months of 2008. The gains in revenue and gross profit were a result of stronger product demand and revenue pricing recognized in 3Q 2009 across all product categories. Total operating expenses made US$ 15.20 mln, compared with US$ 18.45 mln reported for the same period of 2008.
Among the main achievements the company named the repurchase of outstanding convertible notes from Citadel Investment Group (CIG). This event had no material impact on company’s third quarter financial results, it affects the year-to-date financial figures.