Origin Agritech Limited (BVI), a technology-focused supplier of crop seeds having main part of its business in China and registered in the British Virgin Islands, announced the unaudited financial results for the third quarter of the year 2008.
The company reported revenues in the amount of US$71.54 mln – that is an increase of 7.73% from US$59.84 mln for the three months period ended June 30, 2007. The financial results were mainly due to a 6.2% increase in average sales price of the products, with volumes also increasing 2.2%.
Total operating expenses for the three months period ended June 30, 2008 were US$6.66 million, a decrease of 7.79% from US$6.51 million in the same period of the prior year – mainly due to the effective internal controls over daily operating costs and expenses. Selling and marketing expenses were US$2.45 mln for the third quarter of 2008, representing a decrease of 7.95% from the financial results of the same quarter of 2007, mainly due to the decrease in advertising expenses.
Income from operations for the third quarter of 2008 amounted to US$14.34 mln, compared with an operating income of US$7.80 million in the same period of 2007, reflecting a 65.77% increase from the previous year. Net income for the third quarter of 2008 reached US$8.77 mln and rose by 62.98%, as compared to net income of US$4.85 million in the same period a year ago. Earnings per share on a fully diluted basis were US$0.38, as compared to US$0.20 per diluted share in the same period a year ago.
In the company update, Origin announced that it entered into a Notes Repurchase Agreement with Citadel Equity Fund Ltd. on July 28, 2008, concerning the repurchase by the BVI company from Citadel of a part of its outstanding 1% guaranteed senior secured convertible notes due 2012. The deal provides Origin with the opportunity to increase equity shareholder value, providing flexibility to its operations.
The company published its expectations concerning the total revenues for the year ending September 30, 2008, which will be approximately US$75 – US$80 mln. Net income for the year ending September 30, 2008 will be aproximately US$0.5 – US$2 mln.