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Form 6-K Origin Agritech LTD For: Jan 29

January 29, 2016 8:01 AM EST

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 OF
THE SECURITIES EXCHANGE ACT OF 1934

FOR THE MONTH OF JANUARY 2016
COMMISSION FILE NUMBER 000-51576

ORIGIN AGRITECH LIMITED
(Translation of registrant's name into English)

No. 21 Sheng Ming Yuan Road, Changping District, Beijing 102206
(Address of principal executive office)

 

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

 

Form 20-F x       Form 40-F ¨

 

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):        

 

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):        

 

Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

 

Yes ¨    No x

 

If "Yes" is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82-________.

 

 

 

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

ORIGIN AGRITECH LIMITED
     
  By: /s/ Gengchen Han
  Name: Gengchen Han
  Title: Chairman, President, and CEO
     
Date: January 29, 2016    

 

 

 

 

EXHIBIT

 

Exhibit Number   Description
     
99.1   Press release announcing the Q1 FY2016 Financial Results

  

 

 

Exhibit 99.1

Origin Agritech Limited Reports Unaudited Financial Results For Three Months

Ended December 31, 2015

 

BEIJING--/PRNewswire/-- January 29, 2016--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 first quarter ended December 31, 2015. Origin prepares its financial statements in accordance with generally accepted accounting principles (GAAP) of the United States.

 

FINANCIAL RESULTS OVERVIEW

 

During the first quarter of fiscal year 2016, the Company generated revenues of RMB8.6 million (US$1.3 million), compared with revenues of RMB 15.6 million in the three months ended December 31, 2014. The revenues of this quarter largely represented the sales from canola seeds and the decrease was mainly due to exit of market for certain major canola seeds products as the result of increasing competition in the canola seed business

 

Deferred revenues were RMB306.1 million (US$47.1 million) as of December 31, 2015 compared with RMB329.0 million as of December 31, 2014. 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 offers to its customers. It is expected that the majority of these deferred revenues will be recorded on the income statement in the third to fourth fiscal quarters.

 

Gross profit for the three months ended December 31, 2015 was RMB 3.7 million (US$0.6 million), compared with RMB7.8 million in the same period of the prior year. The decrease was in line with the decrease of sales of canola seeds.

 

Total operating expenses for the first quarter ended December 31, 2015 were RMB25.9 million (US$4.0 million) compared with RMB 30.3 million reported for the same period in fiscal year 2015. Selling and marketing expenses were RMB11.4 million (US$1.8 million) for the first quarter of fiscal year 2016, a significant decrease of 19.4% from RMB14.2 million for the same period last year due mainly to the decline in advertisement and transportation. General and administrative expenses were RMB9.6 million (US$1.5 million) for the first quarter ended December 31, 2015 compared with RMB8.9 million one year ago. Research and development expenses were RMB10.4 million (US$1.6 million) in the first quarter of fiscal year 2016 compared with RMB11.8 million for the same quarter last year.

 

Operating loss for the first quarter of fiscal year 2016 was RMB22.2 million (US$3.4million), compared with operating loss of RMB 22.5 million for the same period in fiscal year 2015,This reduction in operating loss reflects our efforts to improve our operating efficiency and cost reduction.

 

Net loss attributable to Origin Agritech Limited for the first quarter of fiscal year 2016 was RMB28.8 million (US$4.4 million), or net loss per basic and diluted share of RMB1.26 (US$0.19), compared with net loss of RMB29.5 million, or net loss per basic and diluted share of RMB1.30 in the same period one year ago.

 

 

 

 

BALANCE SHEET

 

As of December 31, 2015, cash and cash equivalents were RMB85.3 million (US$13.1 million) and shareholders' equity was RMB211.0 million (US$32.5 million). The Company had short-term loans of RMB230.0 million (US$35.4 million) and total long-term borrowing of RMB53.8 million (US$8.3 million). Short-term loans were mainly used for settlement of seed purchases, while long-term borrowings of bank loans were used for the corn seed production facilities in Xinjiang Origin and the Company’s working capital.

 

Advances from customers were RMB104.2 million (US$16.0 million) as of December 31, 2015. These advances represent cash receipts for orders in the upcoming selling season.

 

MANAGEMENT CHANGE

 

Effective as of today, the Company appointed Mr. Song Xu as its Chief Financial Officer, replacing Mr. James Chen, who has resigned to pursue other opportunities.

 

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 December 31, 
   2014   2015 
   RMB   RMB   USD 
             
Revenues   15,590    8,553    1,318 
Cost of revenues   (7,788)   (4,855)   (748)
Gross profit   7,802    3,698    570 
Operating expenses:               
Selling and marketing   (14,183)   (11,434)   (1,761)
General and administrative   (8,862)   (9,627)   (1,483)
Research and development   (11,775)   (10,432)   (1,607)
Other operating income, net   4,553    5,590    861 
Total operating expenses, net   (30,267)   (25,903)   (3,990)
                
Loss from operations   (22,465)   (22,205)   (3,420)
 Interest expense   (4,574)   (4,632)   (713)
Interest income   26    49    8 
Loss before income taxes   (27,013)   (26,788)   (4,125)
Income tax expense               
Current   (1,203)   (1,414)   (218)
Deferred   -    -    - 
Income tax expense   (1,203)   (1,414)   (218)
 Net loss   (28,216)   (28,202)   (4,343)
Less: Net income attributable to the non-controlling interests   1,287    572     88 
                
Net loss attributable to Origin Agritech Limited   (29,503)   (28,774)   (4,431)
Other comprehensive loss               
Net loss   (28,216)   (28,202)   (4,343)
Foreign currency translation difference   401    (1,675)   (258)
Comprehensive loss   (27,815)   (29,877)   (4,601)
Less: Comprehensive income attributable to non-controlling interests   1,287    572    88 
Comprehensive loss attributable to Origin Agritech Limited   (29,102)   (30,449)   (4,689)
                
Net loss attributable to Origin Agritech Limited per share – basic   (1.30)   (1.26)   (0.19)
Net loss attributable to Origin Agritech Limited per share – diluted   (1.30)   (1.26)   (0.19)
                
Shares used in calculating basic and diluted net loss per share   22,738,541    22,813,541    22,813,541 
                

 

 

 

 

UNAUDITED CONSOLIDATED BALANCE SHEETS

(In thousands, except share data)      

 

   12/31/2014   9/30/2015   12/31/2015   12/31/2015 
   RMB   RMB   RMB   US$ 
ASSETS                    
Current Assets                    
Cash and cash equivalents   82,250    66,025    85,307    13,137 
Restricted cash   14,350    -    20,280    3,123 
Accounts receivable   2,965    2,051    5,087    783 
Due from related parties   5,200    -    3,718    572 
Advances to suppliers   10,625    10,484    8,264    1,273 
Advances to growers   1,903    20,796    1,370    211 
Inventories   636,787    439,562    554,035    85,320 
Income tax recoverable   48    48    48    7 
Other current assets   4,323    4,793    4,587    706 
Total current assets   758,451    543,759    682,696    105,132 
Restricted cash   -    20,280    -    - 
Land use rights, net   32,130    31,722    31,421    4,839 
Plant and equipment, net   334,899    324,905    319,322    49,175 
Equity investments   23,721    18,721    18,721    2,883 
Goodwill   11,973    11,973    11,973    1,844 
Acquired intangible assets, net   33,882    31,390    31,589    4,865 
Other assets   3,502    3,079    2,345    361 
Total assets   1,198,558    985,829    1,098,067    169,099 
LIABILITIES AND EQUITY                    
Current liabilities                    
Short-term borrowings   245,000    220,000    230,000    35,419 
Current portion of long-term borrowings   32,488    24,000    26,981    4,155 
Accounts payable   15,514    4,389    16,196    2,494 
Due to growers   57,862    17,337    49,268    7,587 
Due to related parties   11,469    42,284    11,612    1,788 
Advances from customers   126,201    264,547    104,204    16,047 
Deferred revenues   328,975    11,248    306,143    47,145 
Income tax payable   1,203    37    1,377    212 
Other payables and accrued expenses   58,926    50,298    44,769    6,894 
Total current liabilities   877,638    634,140    790,550    121,741 
Long-term borrowings   19,523    40,972    26,773    4,123 
Other long-term liability   18,689    19,939    19,604    3,020 
Total liabilities   915,850    695,051    836,927    128,884 
Commitments and contingencies                    
                     
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, 24,091,163 and 24,091,163 shares issued as of December 31, 2014, September 30, 2015 and December 31, 2015, respectively;                    
22,738,541, 22,813,541 and 22,813,541 shares outstanding as of                    
December 31, 2014, September 30, 2015 and December 31, 2015, respectively)   -    -           
Additional paid-in capital   401,824    402,500    402,739    62,021 
Accumulated deficit   (132,503)   (116,808)   (145,582)   (22,419)
Treasury stock at cost (1,277,622, 1,277,672 and 1,277,622 shares   (37,445)   (37,445)   (37,445)   (5,766)
as of December 31, 2014, September 30, 2015 and December 31, 2015, respectively)                    
Accumulated other comprehensive loss   (4,045)   (7,053)   (8,728)   (1,345)
Total Origin Agritech Limited shareholders’ equity   227,831    241,194    210,984    32,491 
                     
Non-controlling interests   54,877    49,584    50,156    7,724 
Total equity   282,708    290,778    261,140    40,215 
                     
Total liabilities and equity   1,198,558    985,829    1,098,067    169,099 

  

 

 

 

UNAUDITED SEGMENT INFORMATION

 

Contributions of the major activities and profitability information of the Company’s reportable segments for the three months ended December 31, 2014 and 2015 are as follows:

 

(In thousands)  Three Months ended December 31, 
   2014   2015 
   RMB   RMB   US$ 
Segment net revenues               
Seed Production &Distribution   15,590    8,553    1,318 
Biotech &Product Development   469    391    60 
Segment total net revenues   16,059    8,944    1,378 
Inter-segment sales eliminations   (469)   (391)   (60)
Reconciliation to consolidated revenues   15,590    8,553    1,318 
                
Segment operating loss               
Seed Production &Distribution   16,676    14,777    2,276 
Biotech &Product Development   4,037    5,317    819 
Total segment operating loss   20,713    20,094    3,095 
Unallocated corporate operating expenses, net   1,752    2,111    325 
Reconciliation to consolidated income (loss) from operations   22,465    22,205    3,420 

 

 

 

 

CONTACT:

Investor Relations

[email protected]

+86 10 5890-7506

 

 

 



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