BVI-registered Origin Agritech reports audited financial results for the year period ended September 30 2008

BVI-registered Origin Agritech Limited, a technology-focused supplier of crop seeds working mainly in China, announced the audited financial results for the twelve months period which ended September 30, 2008. This year results reflect company’s financial statements during the period from October 1, 2007 to September 30, 2008.

The reported fiscal year was a recovery year for the company, in which there were significant improvements in both revenues and earnings. It was a transition year for the company and for the industry, especially because of the negative impact of certain new Chinese regulations and a widespread overproduction of crop seeds by Chinese seed producers.

Gross margins of Origin Agritech for the year ended September 30, 2008 were 31.56% (unaudited) as compared to 30.09% (unaudited) gross margins for the twelve months ended September 30, 2007. Company’s revenues for this period were RMB513.49 million (US $75.63 million) – 4.93% increase from RMB489.38 million (US $65.31 million) in the fiscal year ended September 30, 2007. Inclusive of any currency changes, based on US$, the year over year increase of revenues was 15.8%, from US $65.31 to US$75.63 mln.

Revenue cost for the period was RMB404.80 million (US $59.62 million). Gross profit for the year ended September 30, 2008 made RMB108.70 million (US $15.94 million) – an increase from RMB26.53 million (US $3.54 million) for the year ended September 30, 2007.

Company’s loss of operations for the year ended September 30, 2008 was RMB42.38 million (US $6.24 million), compared with RMB152.15 million (US $20.31 million) of loss for the previous year. Origin Agritech reported net loss of  RMB43.29 million (US $6.37 million), as compared to the net income of  RMB163.20 million (US $21.78 million) for the previous twelve months period.
As of September 30, 2007 the company had cash and cash equivalents in the amount of RMB162.31 million (US $21.66 million) and RMB102.26 million (US $15.00 million).

The expectations for the fiscal year 2009 published by the company included revenue guidance  from RMB560 million to RMB580 million, and operating cash flow guidance in the amount of RMB80 mln.

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