Beijing, China ?C May 22, 2009 ?C Origin Agritech Limited (NASDAQ: SEED) (“Origin” or the “Company”), a vertically?Cintegrated supplier of hybrid crop seeds in China, will announce unaudited financial results for the second quarter ended March 31, 2009 on May 26, 2009. These results reflect the Company??s financial statements during the period from January 1, 2009 to March 31, 2009. Origin prepares its financial statements in accordance with generally accepted accounting principles (GAAP) of the United States.
“We are investing in our significant opportunity, improving gross and operating margin, and maintaining healthy operating cash flow,” said Irving Kau, Origin vice president of finance. “We are focused on executing on our core strategy for market leadership to develop and bring the highest quality products to market.”
The company’s Q109 financial results improvement included:
1Q09 Deferred Revenue was RMB176.63 million (US$ 25.84 million) increased 57.63% for the three-months ended December 31, 2008 as compared to RMB112.05 million (US$ 15.36 million) for the same period last year.
1Q09 Total Operating Expenses for the three-months ended December 31, 2008 were RMB39.96 million (US$5.85 million) decreased 15.0% as compared with RMB 47.01 million (US$6.44 million) reported for the same period in 2007.
“Our positive trends we saw in FY08 are carrying into FY09. Q109 demonstrated these positive growth trends. We expect to remaining quarters to show similar growth trends. The strength of our renewed product portfolio and our long-term, technology-based solutions are meeting the demands of a growing market opportunity,” said Liang Yuan, Origin president and chief executive officer. “We had two good quarters, and we continue to press on toward more advanced agricultural technologies, we are determined to drive improved performance going forward.”
Based on preliminary financial data, the company expects annual revenue for the FY09 to range from RMB 550 million to RMB 580 million, and annual operating cash flow is expected to be around RMB 80 million, both improvements over fiscal year 2008.
Conference Call Information
The Company will host a teleconference on Wednesday, May 27, 2009, at 8:00 a.m. EDT / 8:00 p.m. Beijing time to discuss the quarterly results. To participate in the call, please dial +1-877-407-8031 in North America, or +1-201-689-8031 internationally, approximately 15 minutes prior to the scheduled start time.
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 filed with the SEC on March 23, 2009. We undertake no obligation to revise or update publicly any forward-looking statements for any reason.
Vice President, Finance
Origin Agritech Limited
Tel: 949.726.8101 or 011.86.136.8108.0243