Welcome!

Microsoft Cloud Authors: Andreas Grabner, Stackify Blog, Liz McMillan, David H Deans, Automic Blog

News Feed Item

Origin Agritech Limited Reports Unaudited Third Quarter Financial Results For Three Months Ended June 30, 2014

BEIJING, Aug. 3, 2014 /PRNewswire/ -- Origin Agritech Limited (NASDAQ GS: SEED) ("Origin", or the "Company"), a technology-focused supplier of crop seeds in China, today announced unaudited financial results for the third quarter ended June 30, 2014. Origin prepares its financial statements in accordance with generally accepted accounting principles (GAAP) of the United States.

FINANCIAL RESULTS OVERVIEW

For the third quarter of fiscal 2014, the Company reported revenues of RMB92.9 million (US$15.1 million) compared with RMB128.3 million for the three months ended June 30, 2013. Lower revenues this quarter were mainly due to the lower sales volume of the rice seed business as the result of increasing competition.

Deferred revenues were RMB342.1 million (US$55.6 million) as of June 30, 2014 compared with RMB338.4 million on June 30, 2013. It is expected that the majority of deferred revenues will be recorded on the income statement in the fiscal fourth quarter of 2014. Deferred revenues mainly reflect the value of Origin's crop seeds after: a) the sales arrangement is confirmed; b) delivery to the customer is made; and c) pre-payment from the customer is received, but before the final sales price is fixed and determined. The final sales price is primarily determined by sales incentives that Origin offers to its customers.

Gross profit for the third quarter of fiscal 2014 was RMB21.2 million (US$3.5 million) compared to RMB36.9 million in the third quarter of fiscal 2013. Gross margin for the third quarter of fiscal 2014 decreased to 22.9% from 28.7% for the same period of fiscal 2013 due to higher production cost and unfavorable product mix.

Total net operating expenses for the three months ended June 30, 2014 were RMB27.5 million (US$4.5 million) compared with RMB28.4 million during the same quarter in fiscal 2013. Specifically, selling and marketing expenses were RMB10.5 million (US$1.7 million) for the third quarter of fiscal 2014 compared with RMB13.5 million a year ago. The decrease in selling expenses was mainly due to lower transportation expenses this quarter. General and administrative expenses were RMB10.6 million (US$1.7 million) compared with RMB13.6 million for the third quarter of fiscal 2013. The decrease was mainly due to the continued implementation of expense control measures. Research and development expenses were RMB8.8 million (US$1.4 million) in the third quarter of fiscal 2014, which was slightly down from RMB10.0 million for the same period last year.

Loss from operations for the third quarter of fiscal 2014 amounted to RMB6.3 million (US$1.0 million) compared with profit of RMB8.4 million for the same quarter in fiscal 2013.

Net loss for the third quarter of fiscal 2014 was RMB14.7 million (US$2.4 million), or net loss per basic and diluted share of RMB0.65 (US$0.11), compared to a net profit of RMB6.1 million, or net profit per basic and diluted share of RMB0.26 in the same period one year ago.

BALANCE SHEET

As of June 30, 2014, cash and cash equivalents were RMB90.4 million (US$14.7 million) and shareholders' equity attributable to the Company was RMB175.2 million (US$28.5 million). The Company had short-term borrowings of RMB285 million (US$46.3 million) and long-term borrowings of RMB64.8 million (US$10.5 million). Short-term borrowings were mainly for working capital, while long-term borrowings were mainly used for the Xinjiang Origin corn seed production facilities. Advances from customers were RMB209.9 million (US$34.1 million) as of June 30, 2014.

In June 2014, the Company disposed of the subsidiary, Kunfeng, for the amount of RMB 12 million (US$1.9 million), and the realized loss from this disposition was RMB 2.7 million (US$0.4 million).

About Origin

Founded in 1997 and headquartered in Zhong-Guan-Cun (ZGC) Life Science Park in Beijing, Origin Agritech Limited (NASDAQ GS: SEED) is China's leading agricultural biotechnology company, specializing in crop seed breeding and genetic improvement, seed production, processing, distribution, and related technical services. Leading the development of crop seed biotechnologies, Origin Agritech's phytase corn was the first transgenic corn to receive the Bio-Safety Certificate from China's Ministry of Agriculture. Over the years, Origin has established a robust biotechnology seed pipeline including products with glyphosate tolerance and pest resistance (Bt) traits. Origin operates production centers, processing centers and breeding stations nationwide with sales centers located in key crop-planting regions. Product lines are vertically integrated for corn, rice and canola seeds. For further information, please log on to the Company's website at: www.originseed.com.cn.

Forward Looking Statement

This release contains forward-looking statements. All forward-looking statements included in this release are based on information available to us on the date hereof. These statements involve known and unknown risks, uncertainties and other factors, which may cause our actual results to differ materially from those implied by the forward-looking statements. In some cases, you can identify forward-looking statements by terminology such as "may," "will," "should," "could," "expects," "plans," "anticipates," "believes," "estimates," "predicts," "potential," "targets," "goals," "projects," "continue," or variations of such words, similar expressions, or the negative of these terms or other comparable terminology. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements. Therefore, actual results may differ materially and adversely from those expressed in any forward-looking statements. Neither we nor any other person can assume responsibility for the accuracy and completeness of forward-looking statements. Important factors that may cause actual results to differ from expectations include, but are not limited to, those risk factors discussed in Origin's filings with the SEC including its annual report on Form 20-F to be filed. We undertake no obligation to revise or update publicly any forward-looking statements for any reasons.

 

UNAUDITED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
(In thousands, except share data)



Three Months ended June 30,


2013


2014


RMB


RMB


USD







Revenues

128,337


92,935


15,139

Cost of revenues

(91,465)


(71,686)


(11,677)

Gross profit

36,872


21,249


3,462

Operating expenses:






Selling and marketing

(13,475)


(10,549)


(1,718)

General and administrative

(13,558)


(10,561)


(1,720)

Research and development

(10,028)


(8,778)


(1,430)

Other operating income, net

8,628


2,372


386

Total operating expenses

(28,434)


(27,516)


(4,482)







Income (loss) from operations

8,438


(6,267)


(1,020)


Interest expense

(4,720)


(5,276)


(859)

Share of net loss of equity investment

(649)


(279)


(46)

Loss on liquidation of a subsidiary

-


(2,666)


(434)

Interest income

974


63


10

Income (loss) before income taxes

4,043


(14,425)


(2,349)

Income tax expense






Current

(972)


(677)


(110)

Deferred

-


-


-

Income tax expense

(972)


(677)


(110)


Net Income (loss)

3,071


(15,102)


(2,459)

Less: Net loss attributable to the non-controlling interests

(3,054)


(432)


(70)







Net income (loss) attributable to Origin Agritech Limited

6,125


(14,670)


(2,389)


Other comprehensive income (loss)






Net income (loss)

3,071


(15,102)


(2,459)

Foreign currency translation difference

891


12


2

Comprehensive income (loss)

3,962


(15,090)


(2,457)

Less: Comprehensive loss attributable to non-controlling interests

(3,054)


(432)


(70)

Comprehensive income (loss) attributable to Origin Agritech Limited

7,016


(14,658)


(2,387)







Net loss per share – basic

0.26


(0.65)


(0.11)

Net loss per share – diluted

0.26


(0.65)


(0.11)







Shares used in calculating basic net loss per share

23,199,700


22,743,853


22,743,853

Shares used in calculating diluted net loss per share

23,241,541


22,743,853


22,743,853

 

 


UNAUDITED CONSOLIDATED BALANCE SHEETS

(In thousands, except share data)


6/30/2013


9/30/2013

6/30/2014


6/30/2014


RMB


RMB

RMB


US$

ASSETS







Current Assets







Cash and cash equivalents

131,999


131,978

90,398


14,692

Accounts receivable

8,260


1,949

4,209


684

Due from related parties

2,000


3,400

2,400


390

Advances to suppliers

18,745


9,768

19,826


3,222

Advances to growers

48,026


58,473

22,784


3,703

Inventories

591,322


470,811

698,395


113,509

Income tax recoverable

1,163


1,163

49


8

Other current assets

7,146


7,000

5,111


831

Total current assets

808,661


684,542

843,172


137,039

Restricted cash

-


14,350

14,350


2,332

Land use rights, net

31,739


33,205

31,071


5,050

Plant and equipment, net

346,171


354,735

341,481


55,500

Equity investments

21,594


24,894

21,119


3,432

Goodwill

11,973


11,973

11,973


1,946

Acquired intangible assets, net

24,343


23,117

25,236


4,102

Deferred income tax assets

1,755


-

-


-

Other assets

3,468


11,256

2,299


374

Total assets

1,249,704


1,158,072

1,290,701


209,775

LIABILITIES AND EQUITY







Current liabilities







Short-term borrowings

97,440


205,000

285,000


46,320

Current portion of long-term borrowings

8,000


16,500

21,500


3,495

Accounts payable

13,691


4,590

13,069


2,124

Due to growers

7,605


37,875

16,665


2,709

Due to related parties

16,766


1,530

16,230


2,638

Advances from customers

337,382


371,571

209,897


34,114

Deferred revenues

338,359


22,069

342,146


55,608

Income tax payable

39,060


39,060

39,060


6,348

Other payables and accrued expenses

46,501


53,783

52,928


8,602

Total current liabilities

904,804


751,978

996,495


161,958

Long-term borrowings

58,828


64,819

43,329


7,042

Other long-term liability

20,805


21,030

19,468


3,164

Total liabilities

984,437


837,827

1,059,292


172,164








Shareholders' equity:







Preferred stock (no par value; 1,000,000 shares authorized, none issued)

-


-

-


-

Common stock (no par value; 60,000,000 shares authorized,







24,016,163, 24,016,163 and 24,016,163 shares issued as of June 30, 2013, September 30, 2013 and June 30, 2014;





23,151,980, 22,905,926 and 22,738,541 shares outstanding as of June 30, 2013, September 30, 2013 and June 30, 2014)

-


-

-


-

Additional paid-in capital

399,188


399,564

400,606


65,110

Accumulated deficit

(145,672)


(93,473)

(183,511)


(29,826)

Treasury stock at cost (864,183, 1,110,237 and 1,277,622 shares as of June 30, 2013, September 30, 2013 and June 30, 2014)

(33,314)


(35,659)

(37,445)


(6,086)

Accumulated other comprehensive loss

(4,699)


(4,390)

(4,450)


(722)

Total Origin Agritech Limited shareholders' equity 

215,503


266,042

175,200


28,476








Non-controlling interests

49,764


54,203

56,209


9,135

Total equity

265,267


320,245

231,409


37,611








Total liabilities and equity

1,249,704


1,158,072

1,290,701


209,775








 

CONTACT:
Origin Agritech Limited
James Chen,
Chief Financial Officer
[email protected]

Kay Liu
Investor Relations
[email protected]
+86 10 5890-7536

SOURCE Origin Agritech Limited

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

@ThingsExpo Stories
With major technology companies and startups seriously embracing Cloud strategies, now is the perfect time to attend 21st Cloud Expo October 31 - November 2, 2017, at the Santa Clara Convention Center, CA, and June 12-14, 2018, at the Javits Center in New York City, NY, and learn what is going on, contribute to the discussions, and ensure that your enterprise is on the right path to Digital Transformation.
No hype cycles or predictions of zillions of things here. IoT is big. You get it. You know your business and have great ideas for a business transformation strategy. What comes next? Time to make it happen. In his session at @ThingsExpo, Jay Mason, Associate Partner at M&S Consulting, presented a step-by-step plan to develop your technology implementation strategy. He discussed the evaluation of communication standards and IoT messaging protocols, data analytics considerations, edge-to-cloud tec...
New competitors, disruptive technologies, and growing expectations are pushing every business to both adopt and deliver new digital services. This ‘Digital Transformation’ demands rapid delivery and continuous iteration of new competitive services via multiple channels, which in turn demands new service delivery techniques – including DevOps. In this power panel at @DevOpsSummit 20th Cloud Expo, moderated by DevOps Conference Co-Chair Andi Mann, panelists examined how DevOps helps to meet the de...
When growing capacity and power in the data center, the architectural trade-offs between server scale-up vs. scale-out continue to be debated. Both approaches are valid: scale-out adds multiple, smaller servers running in a distributed computing model, while scale-up adds fewer, more powerful servers that are capable of running larger workloads. It’s worth noting that there are additional, unique advantages that scale-up architectures offer. One big advantage is large memory and compute capacity...
The Internet giants are fully embracing AI. All the services they offer to their customers are aimed at drawing a map of the world with the data they get. The AIs from these companies are used to build disruptive approaches that cannot be used by established enterprises, which are threatened by these disruptions. However, most leaders underestimate the effect this will have on their businesses. In his session at 21st Cloud Expo, Rene Buest, Director Market Research & Technology Evangelism at Ara...
"When we talk about cloud without compromise what we're talking about is that when people think about 'I need the flexibility of the cloud' - it's the ability to create applications and run them in a cloud environment that's far more flexible,” explained Matthew Finnie, CTO of Interoute, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
The current age of digital transformation means that IT organizations must adapt their toolset to cover all digital experiences, beyond just the end users’. Today’s businesses can no longer focus solely on the digital interactions they manage with employees or customers; they must now contend with non-traditional factors. Whether it's the power of brand to make or break a company, the need to monitor across all locations 24/7, or the ability to proactively resolve issues, companies must adapt to...
Artificial intelligence, machine learning, neural networks. We’re in the midst of a wave of excitement around AI such as hasn’t been seen for a few decades. But those previous periods of inflated expectations led to troughs of disappointment. Will this time be different? Most likely. Applications of AI such as predictive analytics are already decreasing costs and improving reliability of industrial machinery. Furthermore, the funding and research going into AI now comes from a wide range of com...
Internet of @ThingsExpo, taking place October 31 - November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 21st Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The Internet of Things (IoT) is the most profound change in personal and enterprise IT since the creation of the Worldwide Web more than 20 years ago. All major researchers estimate there will be tens of billions devic...
SYS-CON Events announced today that MobiDev, a client-oriented software development company, will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place October 31-November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. MobiDev is a software company that develops and delivers turn-key mobile apps, websites, web services, and complex software systems for startups and enterprises. Since 2009 it has grown from a small group of passionate engineers and business...
SYS-CON Events announced today that GrapeUp, the leading provider of rapid product development at the speed of business, will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place October 31-November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Grape Up is a software company, specialized in cloud native application development and professional services related to Cloud Foundry PaaS. With five expert teams that operate in various sectors of the market acr...
SYS-CON Events announced today that Ayehu will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on October 31 - November 2, 2017 at the Santa Clara Convention Center in Santa Clara California. Ayehu provides IT Process Automation & Orchestration solutions for IT and Security professionals to identify and resolve critical incidents and enable rapid containment, eradication, and recovery from cyber security breaches. Ayehu provides customers greater control over IT infras...
In this presentation, Striim CTO and founder Steve Wilkes will discuss practical strategies for counteracting fraud and cyberattacks by leveraging real-time streaming analytics. In his session at @ThingsExpo, Steve Wilkes, Founder and Chief Technology Officer at Striim, will provide a detailed look into leveraging streaming data management to correlate events in real time, and identify potential breaches across IoT and non-IoT systems throughout the enterprise. Strategies for processing massive ...
SYS-CON Events announced today that Cloud Academy named "Bronze Sponsor" of 21st International Cloud Expo which will take place October 31 - November 2, 2017 at the Santa Clara Convention Center in Santa Clara, CA. Cloud Academy is the industry’s most innovative, vendor-neutral cloud technology training platform. Cloud Academy provides continuous learning solutions for individuals and enterprise teams for Amazon Web Services, Microsoft Azure, Google Cloud Platform, and the most popular cloud com...
In his session at Cloud Expo, Alan Winters, an entertainment executive/TV producer turned serial entrepreneur, presented a success story of an entrepreneur who has both suffered through and benefited from offshore development across multiple businesses: The smart choice, or how to select the right offshore development partner Warning signs, or how to minimize chances of making the wrong choice Collaboration, or how to establish the most effective work processes Budget control, or how to ma...
SYS-CON Events announced today that Enzu will exhibit at SYS-CON's 21st Int\ernational Cloud Expo®, which will take place October 31-November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Enzu’s mission is to be the leading provider of enterprise cloud solutions worldwide. Enzu enables online businesses to use its IT infrastructure to their competitive advantage. By offering a suite of proven hosting and management services, Enzu wants companies to focus on the core of their ...
SYS-CON Events announced today that IBM has been named “Diamond Sponsor” of SYS-CON's 21st Cloud Expo, which will take place on October 31 through November 2nd 2017 at the Santa Clara Convention Center in Santa Clara, California.
We build IoT infrastructure products - when you have to integrate different devices, different systems and cloud you have to build an application to do that but we eliminate the need to build an application. Our products can integrate any device, any system, any cloud regardless of protocol," explained Peter Jung, Chief Product Officer at Pulzze Systems, in this SYS-CON.tv interview at @ThingsExpo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA
SYS-CON Events announced today that CA Technologies has been named "Platinum Sponsor" of SYS-CON's 21st International Cloud Expo®, which will take place October 31-November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. CA Technologies helps customers succeed in a future where every business - from apparel to energy - is being rewritten by software. From planning to development to management to security, CA creates software that fuels transformation for companies in the applic...
Amazon started as an online bookseller 20 years ago. Since then, it has evolved into a technology juggernaut that has disrupted multiple markets and industries and touches many aspects of our lives. It is a relentless technology and business model innovator driving disruption throughout numerous ecosystems. Amazon’s AWS revenues alone are approaching $16B a year making it one of the largest IT companies in the world. With dominant offerings in Cloud, IoT, eCommerce, Big Data, AI, Digital Assista...