BEIJING, Aug. 7, 2012 /PRNewswire-Asia/ -- Origin Agritech Limited (NASDAQ: SEED) ("Origin" or the "Company") , a technology-focused supplier of hybrid and genetically modified crop seeds in China, today announced unaudited financial results for the third quarter ended June 30, 2012. Origin prepares its financial statements in accordance with generally accepted accounting principles (GAAP) of the United States.
FINANCIAL RESULTS OVERVIEWDuring the third quarter of fiscal 2012, revenues increased by 10.1% year-over-year to RMB269.3 million (US$42.7 million) from RMB244.7 million one year ago. Higher revenues this quarter were mainly due to earlier sales settlement with the distributors for the 2012 selling season.
Deferred revenues were RMB257.3 million (US$40.7 million) as of June 30, 2012 compared with RMB287.2 million on June 30, 2011. Deferred revenues mainly reflect the value of Origin's crop seeds after a) 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 gives to its customers. The year-over-year decrease in deferred revenues was mainly due to more revenue is recognized in the current period of this year. Deferred revenues as of June 30, 2012 also included a total of RMB24.9 million (US$3.9 million) of subsidies received from various levels of the Chinese government.
The sum of recognized revenues for the first nine months ended June 30, 2012 and deferred revenues as of June 30, 2012 were RMB568.3 million (US$90.0 million), compared with RMB550.1 million for the same period last year. Excluding the deferred government subsidies, Changchun Origin and the divestiture of Jilin Changrong, the sum of revenues for the first nine months ended June 30, 2012 and deferred revenues as of June 30, 2012 increased by 20.6% year-over-year to RMB493.4 million (US$78.2 million) from RMB409.1 million as of June 30, 2011. This year-over-year increase in recognized and deferred revenues was mainly due to an increase in corn seed shipping volume during the 2012 planting season. The table below lists the deferred revenues and recognized revenues with and without the contribution from Jilin Changrong and Changchun Origin, and government subsidies.
Year-to-date Revenues and Deferred Revenues, in thousands of RMBAs of June 30, 2011
As of June 30, 2012
Year-over-Year ChangeDeferred revenues
-1.2%Deferred revenues excluding
Jilin Changrong, Changchun
Origin and deferred
Notes: After the divestiture of Jilin Changrong Hi-tech Seed Company Limited ("Jilin Changrong") in fiscal year 2011, Changchun Origin Seed Technology Development Limited ("Changchun Origin") started operation in the same Northeastern region in fiscal year 2012.Gross profit for the third quarter of fiscal 2012 was RMB54.2 million (US$8.6 million) compared to RMB85.8 million in the third quarter of fiscal 2011.
Total net operating expenses for the three months ended June 30, 2012 decreased to RMB30.2 million (US$4.8 million) from RMB51.9 million during the same period in fiscal 2011. Lower operating expenses during the third quarter of fiscal 2012 were mainly due to a decrease in costs previously associated with Jilin Changrong, which are no longer applicable after the divestiture. Specifically, selling and marketing expenses were RMB10.3 million (US$1.6 million) for the third quarter of fiscal 2012, compared with RMB12.6 million for the same period last year. General and administrative ("G&A") expenses decreased by 45.9% year-over-year to RMB12.9 million (US$2.0 million) from RMB23.8 million for the third quarter of fiscal 2011. Research and development ("R&D") expenses were RMB8.2 million (US$1.3 million) for the three months ended June 30, 2012, compared with RMB15.5 million during the same period last year.
Income from operations for the third quarter of fiscal 2012 amounted to RMB24.1 million (US$3.8 million) compared with income from operations of RMB33.9 million for the same period in fiscal 2011.
Net income attributable to Origin for the third quarter of fiscal 2012 was RMB25.4 million (US$4.0 million), or RMB1.09 (US$0.17) per share - both basic and diluted, compared with a net income of RMB13.9 million, or RMB0.60 per share - both basic and diluted during the same period one year ago.
BALANCE SHEETAs of June 30, 2012, cash and cash equivalents were RMB194.2 million (US$30.7 million), and shareholders' equity was RMB217.4 million (US$34.4 million). Short-term borrowings were RMB39.0 million (US$6.2 million). Long-term borrowings were RMB30.0 million (US$4.7 million), representing bank borrowings to finance the construction of the seed conditioning plant in Xinjiang.
Advances from customers were RMB365.8 million (US$57.8 million) as of June 30, 2012 compared with RMB290.8 million a year ago. These advances represent cash receipts for future orders.
About OriginFounded 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 Genetically Modified (GM) technology, 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 GM seed pipeline including products with glyphosate tolerance and pest resistance (Bt) traits. Staffed by approximately 800 employees, 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 StatementThis 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 reason.
UNAUDITED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME(In thousands, except share data)Three Months ended June 30,20112012RMBRMBUS$Revenues244,688269,31942,667Cost of revenues(158,886)(215,102)(34,078)Gross profit85,80254,2178,589Operating expenses:Selling and marketing(12,552)(10,301)(1,632)General and administrative(23,756)(12,860)(2,037)Research and development(15,506)(8,206)(1,300)Other operating income (expenses), net(97)1,208191Total operating expenses, net(51,911)(30,159)(4,778)Income from operations33,89124,0583,811
Interest expense(327)(1,308)(207)Share of net income of equity investments2,430721114Interest income66050480Income before income tax expense36,65423,9753,798Income tax expense:Current(1,739)(31)(5)Deferred(3,754)--Income tax expense(5,493)(31)(5)Net income31,16123,9443,793Less: Net income (loss) attributable to the non-controlling interests17,236(1,500)(238)Net income attributable to Origin Agritech Limited 13,92525,4444,031Other comprehensive income Net income 31,16123,9443,793Foreign currency translation difference71262499Comprehensive income31,87324,5683,892Less: Comprehensive income (loss) attributable to non-controlling interests17,236(1,500)(238)Comprehensive income attributable to Origin Agritech Limited14,63726,0684,130Net income per share - basic0.601.090.17Net income per share - diluted0.601.090.17Shares used in calculating basic net income per share23,313,97023,382,81223,382,812Shares used in calculating diluted net income per share23,335,83523,382,81223,382,812 UNAUDITED CONSOLIDATED BALANCE SHEETS(In thousands, except share data)June 30September 30June 302011201120122012RMBRMBRMBUS$Assets:Current assets:Cash and cash equivalents219,989129,942194,20030,704Accounts receivable8,5926,61611,3601,796Dividend receivable--2,100332Due from related parties 1055,1832,207349Advances to suppliers 5,21512,41814,3622,271Advances to growers34,29378,62356,2948,900Inventories 434,114210,826385,63160,970Income tax recoverable 2,7452,1552,110334Other current assets 12,69265,05515,3872,433Total current assets717,745510,818683,651108,089Land use rights, net 20,53133,09432,2495,099Plant and equipment, net 166,599190,094298,80647,243Equity investments 24,66620,50322,1543,503Goodwill 16,66511,97311,9731,893Acquired intangible assets, net 32,16529,23226,7904,236Deferred income tax assets 16,3243,0283,028479Other assets 29,76319,6402,384377Total assets1,024,458818,3821,081,035170,919Liabilities and Equity:Current liabilities:Short-term borrowings 20,00020,00039,0006,166Accounts payable14,1985,74013,4882,133Due to growers10,9517,9479,6851,531Due to related parties 14,8301,72812,1501,921Advances from customers290,783397,933365,75857,828Deferred revenues287,16419,812257,34640,688Income tax payable45,48639,06039,0606,175Other payables and accrued expenses 29,05640,35141,6066,578Total current liabilities712,468532,571778,093123,020Long-term borrowings--30,0004,743Other long-term liabilities6,133---Total liabilities718,601532,571808,093127,763Shareholders' equity: Preferred stock (no par value; 1,000,000 shares authorized, none issued)----Common stock (no par value; 60,000,000 shares authorized, 23,313,970, 23,382,812 and 23,382,812 shares issued and outstanding as of June 30, 2011, September 30, 2011 and June 30, 2012 respectively)----Additional paid-in capital391,101394,344397,26562,810Retained deficit(116,041)(99,533)(145,630)(23,025)Treasury stock at cost (498,851 shares) (29,377)(29,377)(29,377)(4,645)Accumulated other comprehensive loss(7,387)(6,397)(4,906)(773)Total Origin Agritech Limited shareholders' equity238,926259,037217,35234,367 Non-controlling interests67,56126,77455,5908,789Total equity305,857285,811272,94243,156Total liabilities and equity1,024,458818,3821,081,035170,919CONTACT:
Origin Agritech Limited
Chief Financial Officer
Shiwei Yin, 646-284-9474
|SOURCE Origin Agritech Limited|
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