Monthly Archives: March 2008

Origin Agritech Ltd (BVI) reports first quarter 2008 fiscal results

Origin Agritech Limited, an agricultural biotechnology company incorporated in the British Virgin Islands and focused on the supply of crop seeds in China, on March 25 announced the unaudited financial results for the first quarter of the fiscal year ended December 31, 2007.

The BVI company has recently announced its financials for the twelve months period ended September 30, 2007. Origin Agritech reported revenues in the amount of US$65.2 mln – a 6.23% decrease from US$66.0 in the twelve months ended September 30, 2006. In the first quarter period, the company reported 37% increase of revenues, from RMB 19,24 mln in the three months ended December 31, 2006, to RMB 26.36 mln in the first quarter of fiscal 2008.

Gross profit for the three-months period ended December 31, 2007 was RMB3.34 mln (US$457,284), compared to about RMB 2.74 mln (US$375,406). Gross margins for the quarter were 48.3%, that is a 5.9% increase if compared to the gross margin for the three months ended December 31, 2006.

Total operating expenses for the first quarter of this fiscal year were RMB47.01 million (US$6.44 million), compared with RMB 36.90 million (US$4.73 million) for the same period of 2006. The major increase in operating expenses was caused by the increase in research and development expenses, from RMB4.19 million (US$536,281) in the three months ended December 31, 2006, to RMB9.62 million (US$1.32 million) in the same quarter of this year. This is an increase of 129.9%.

Operating loss for the first quarter of 2007 was RMB43.67 million (US$5.99 million) compared with an operating loss of RMB28.73 million (US$3.68 million) for the same period one year ago. Net loss for the first quarter of 2007 was RMB15.37 million (US$2.11 million), compared to a net loss of RMB30.67 million (US$3.93 million) in the same period of the year 2006.

Origin’s balance sheet at December 31, 2007 included cash and cash equivalents of  RMB118.53 mln (US$16.25 million), investments in US Government Agency bonds amounting to RMB 131.27 million (US$18 million), working capital of RMB241.40 million (US$33.1million), and shareholders’ equity of RMB285.95 million (US$39.2 million).

BVI-registered OpenTV reports its revenues and results of operations for the year ended December 31, 2007

BVI-based telecommunications corporation OpenTV published report on its financial condition and results of operations for the year ended December 31, 2007. The report was released on March 11, 2008.

For this year period, OpenTV Corp. reported revenues in the amount of $110.0 million; that is a 16% increase of $14.8 million, compared to $95.2 million revenues in 2006. In its turn, revenues for the year 2006 made a 22% increase, or $17.0 million, from $78.2 million for the year ended December 31, 2005.

Royalties and licenses revenues of the BVI company by the end of 2007 made $73.7 million – that is $7.8 million, or 12% increase from the previous year. Of this $73.7 million, $42.4 million accounted for Europe, Middle East and Africa – an increase of $10.1 million, or 31%, compared to the year 2006.

Services revenues increased 24%, from $29.3 million in 2006 to $36.3 million in 2007.

BVI-domiciled Euro Tech Holdings Company receives contract US$3 mln worth

BVI-registered Euro Tech Holdings Company Limited, working in the field of manufacturing and distribution of analytical and testing equipment, has announced that its associated company, Zhejiang Jia Huan Electronic Co. Ltd., Zhejiang, China, has received 4 contracts in China. These contracts, totally worth about US$3 mln, are for 8 equipment for ESP used to remove dust from stacks in various power plants in several provinces of China, including Shanghai. The contracts cover design, manufacture, supply, and commissioning of electric voltage control equipment for ESP.

The subsidiary of Euro Tech Holdings, Zhejiang Jia Huan is a company whose largest part of business is related to air pollution control, and less than 5% of its products are made for water and wastewater treatment. The company designs and manufactures automatic control systems and electric voltage conrtol equipment.

Jia Huan, the new member of the group, in 2008 will definitely contribute some profit but not the revenues of Euro Tech Holdings Company.

BVI-registered Origin Agritech Ltd. reported fiscal results for the financial year ended September 30, 2007

Origin Agritech Limited, BVI-registered company engaged in supplying hybrid crop seeds in China, reported the financial results for the twelve months ended September 30, 2007. These are company’s financials for the period of the year from October 1, 2006 to September 30, 2007, resulting from the change in fiscal year end to September 30, which was announced a year ago. So, previously published financials were for the transitional period of January 1, 2006 to September 30, 2006.

For the year ended September 30, 2007, the BVI company generated revenues of US$65.2 million – a 6.23% decrease from US$66.0 million revenues reported for the twelve months ended September 30, 2006. The BVI company named some factors that materially impacted the results of operations, having influenced the entire Chinese crop seed industry this year – including the increased industry pressure and government regulations change. During fiscal year 2007, the company wrote off a significant portion of seed inventory of US$ 10.31 million, which was recorded as cost of revenues; also, temporary scrap sales impacted overall gross margin by 8.25%. Excluding these two factors, gross margins for the period were 30.09% as compared to 30.73% gross margins for the twelve months ended September 30, 2006.

During this year, corn seed products remain company’s strongest product that makes 74.36% of company’s sales, – compared to 65.03% in the twelve month ended September 30, 2006. Total revenue from corn seed grew 4.94% in fiscal year 2007, compared to the previous period.

Total expenses for the reported period were US$23.85 million, – a 46.39% increase
from  US$15.44 million for the twelve months ended September 30, 2006. Selling and marketing expenses for the year ended September 30, 2007 were US$7.74 million, representing an increase of 0.51% from US$7.30 million for the year ended September 30, 2006. General and administrative expenses for the year ended September 30, 2007 were US$12.31 million, – an 83.74% increase from US$6.35 million for the twelve months ended September 30, 2006. Research and development expenses for the year ended September 30, 2007 were US$3.80 million, that is 100.88% growth from US$1.79 million in the twelve months ended September 30, 2006. This doubling of expenses amounted to 5.8% of total revenues being in line with company’s research and development strategy.

The company reported net loss applicable to ordinary shareholders of US$21.78 million for the year ended September 30, 2007, as compared to the net income of US$7.32 million for the twelve months ended September 30, 2006. Origin’s balance sheet as of September 30, 2007 includes cash and cash equivalents of US$21.66 million, working capital of US$39.37 million, shareholders’ equity of US$39.63 million, and long-term debt of US$35.94 million.