BEIJING, April 7, 2022 /PRNewswire/ — Origin Agritech Ltd. (NASDAQ:SEED) (the “Company” or “Origin”), an agricultural technology company, today announced that it has signed purchase agreements to sell to two commodity companies a total of 50,000 metric tons of its corn nutritionally enriched.
Origin Agritech’s new nutritionally enriched corn reduces the need for costly additives such as soybean meal for commodity companies, doubling their margins. As a result, Origin has generated a lot of industry interest and a lot of interest. Origin donated corn samples to potential raw material customers so they could validate the corn’s nutritional content. The corn has passed these tests and companies are now placing orders.
Since Origin’s corn has such a positive impact on commodity companies and the company has no competition for this product, the company decided rather than just selling the seed, they would contract the growing corn to capture a much higher share of the profitability of the finished product. The company grows 50,000 metric tons of maize under contract in Xinjiang. The commodity companies agreed to buy the corn at market prices at the time of delivery, plus a markup to reward the company for the added value of the corn. Based on current market prices for maize, the selling price could be around 3,000 RMB per metric ton or 150 million RMB in total. The company is currently evaluating the impact of this purchase agreement on the company’s finances and may soon update its guidance to reflect this new activity.
“We are delighted with the positive customer response to our new maize variety,” said Dr. Gengchen Han, President of Origin Agritech. “In these unprecedented times of disrupted food supply chains and food inflation, I am particularly pleased that we are having a positive impact on the food security of China. “
About Origin Agritech Limited
Origin Agritech Limited, founded in 1997 and based in Zhong-Guan-Cun Life Science Park (ZGC) in beijing, is one of China’s leading agricultural technology enterprises. In crop seed biotechnologies, Origin Agritech’s phytase maize was the first transgenic maize to receive the Biosafety Certificate from China The Minister of Agriculture. Over the years, Origin has built a strong biotech seed pipeline that includes products with glyphosate tolerance and pest resistance (Bt) traits. For more information, please visit the company’s website at: www.originagritech.com. The company also maintains a Twitter account to update investors on company and industry developments, which is @origin_agritech.
This communication contains “forward-looking statements” as defined in the federal securities laws, including Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, as amended, and as as defined in the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements address expected future business and financial performance and financial condition, and contain words such as “expect”, “anticipate”, “have the intent to”, “plan”, “believe”, “seek”, “will”, “target”, and similar expressions and variations. Forward-looking statements address matters that are uncertain. Forward-looking statements are not guarantees of future performance and are based on assumptions and expectations that may not be realized. They are based on management’s current expectations, assumptions, estimates and projections regarding the company and the industry in which the company operates, but involve a number of risks and uncertainties, many of which are beyond the company’s control. Some of the important factors that could cause the company’s actual results to differ materially from those discussed in the forward-looking statements are: the inability to develop and market new products and to optimally manage product life cycles ; ability to respond to market acceptance, rules, regulations and policies affecting our products; failure to appropriately manage process safety and product stewardship issues; changes in laws and regulations or political conditions; global economic and financial market conditions, such as inflation, interest rates and currency exchange rates; business or supply disruptions; natural disasters and weather events and patterns; ability to protect and enforce the company’s intellectual property rights; and separation of underperforming or non-strategic assets or activities. The Company undertakes no duty or obligation to publicly revise or update any forward-looking statements as a result of future developments, new information or otherwise, if circumstances change, except as required by applicable securities and other laws. require it. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that these expectations will prove to be correct, and actual results may differ materially from anticipated results. You are urged to carefully consider these factors when evaluating the forward-looking statements contained herein and you are cautioned not to place undue reliance on such forward-looking statements, which are qualified in their entirety by these cautionary statements.
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SOURCE Origin Agritech Limited