Origin Agritech sees FY23 revenue up 60%-70% vs. last year to $12M-$13M

Origin Agritech provided a business update and preliminary financial results for FY23. Expects FY23 revenue $12M-$13M, an increase of 60% to 70% vs. FY22 revenue of $7.4M. Expects FY23 net income $16M-$17M, which includes a one-time gain from the sale of a former office building of $19M. Expects FY23 operating profit of $2M. CEO Gengchen Han commented, “Earlier this year, our triple-stack trait corn, featuring BFL4-2, was selected for inclusion in the national demo plot. This recognition underscores the exceptional quality and potential of our corn varieties. I am confident that our GMO corn hybrids will be approved in 2024…Our majority-owned joint venture in Shihezi, Xinjiang, secured 200,000 mu of farmland for growing nutrition-enhanced corn. We are also near completion of our state-of-the-art 100,000-ton corn drying base in Shihezi, Xinjiang…Our large-scale pilot production of nutrition-enhanced corn harvested in September and October 2023 has set the stage for revenue recognition of approximately RMB 50M to 100M in FY24, or $7M to $14M U.S. We have produced enough NEC seed for next year’s planting and expansion plans…The recognition of our triple-stack trait corn and the successful pilot production of our nutrition-enhanced corn are just the beginning of what promises to be a transformative journey for Origin Agritech. As we look to the future, our focus remains to revolutionize agricultural biotechnology and contribute meaningfully to global food security. The potential approval of our GMO corn hybrids in 2024, our advancements in gene editing, and the expansion of our production capabilities are pivotal steps in this direction. I am not satisfied with our stock price and believe that the market is severely discounting our company’s upside potential. We are taking steps to ensure that we achieve a fair and realistic market valuation, and we look forward to conveying new developments and delivering value to our shareholders”.