The British Virgin Islands-registered Origin Agritech Limited announced financial results for the twelve months period ended September 30, 2008. This year was reported as a recovery year for the company remarkable with significant improvements in earnings and revenues. The BVI company announced its accomplishments of the year 2008, including the repurchase of the remaining outstanding convertible notes – US$4.7 million in principal at 107 and US $16.6 million in principal at 104, and introduction of a range of executives.
For the year ended September 30, 2008 the BVI company reported revenues of US $75.63 million, a 4.93% increase from US $65.31 million in the fiscal year 2007. So, the year over year revenues increase was 15.8%. The cost of revenue for the year 2008 was US $59.62 million – a decrease of 12.54% from US $61.67 million.
The gross profit of the year ended September 30, 2008 increased to US$15.94 million from US $3.54 million in 2007. Excluding the US $3.89 million loss, the gross profit for the period were US $22.591 million – representing a 6.42% increase from US $19.24 million from the year period ended September 30, 2007. So, the year over year increase in gross profit was 17.4%.
Company’s net loss was US$6.37 million in the year ended September 30, 2008, as compared to the net income of US $21.78 million of the BVI company for the twelve months ended September 30, 2007.
During the past year, the Chinese central government has sponsored a comprehensive US$6 billion plan for the implementation of genetically modified food products in the country.
By the end of the year period 2008 the company had approximately US $15.00 million in cash and cash equivalents – compared to US$21.66 million reported by the end of September 30, 2007. Company’s cash and cash equivalents primarily consisted of cash and short term liquid investments with original maturities of three months or less, deposited with banks and other financial institutions.