Origin Agritech Limited

For the 6 months ended March 31, 2026, total revenues were RMB 49.2 million (USD 7.1 million), down from RMB 72.3 million, a decrease of approximately 31.9%. Gross profit was RMB 5.5 million (USD 0.8 million) versus RMB 8.1 million in the prior-year period. Operating expenses were RMB 18.4 million (USD 2.7 million), down 43.9% year over year; G&A fell 69.8% to RMB 7.6 million, selling and marketing rose 93.3% to RMB 5.1 million, and R&D increased 11.1% to RMB 5.7 million. Loss from operations improved to RMB 12.9 million (USD 1.9 million) from RMB 24.7 million, and net loss attributable to Origin Agritech improved to RMB 14.4 million (USD 2.1 million) from RMB 25.6 million; basic and diluted net loss per share was RMB 1.21 versus RMB 3.55. As of March 31, 2026, cash and cash equivalents were RMB 13.4 million, inventories were RMB 24.8 million, short-term borrowings were RMB 9.5 million, and total liabilities were RMB 168.1 million. Management did not provide quantified next-quarter or full-year revenue/EPS guidance, but said the second half of fiscal 2026 and first half of fiscal 2027 will be the key test of whether the rebuilt foundation is converting into commercial outcomes.

Weibin Yan framed the period as the midpoint of a multi-stage recovery plan, saying the company has moved from rebuilding capabilities to converting that foundation into measurable commercial and scientific outcomes. He highlighted over 30,000 new test-cross combinations, restoration of the sales team to 36 professionals, reentry into Northeast China, and the launch of the Aoyun 2026 program with KPI contracts across six regional sales companies. His tone was constructive and confident, repeatedly emphasizing that biotech is becoming a commercial story and that he believes the next reporting periods will show conversion.

Zheng Chen focused on the financial turnaround in expenses and losses. He pointed to the RMB 49.2 million revenue base, the RMB 5.5 million gross profit, and the steep drop in operating expenses to RMB 18.4 million, especially the reduction in G&A to RMB 7.6 million following the leadership restructuring and consolidation in Beijing. He also noted that selling and marketing increased to RMB 5.1 million to support the 36-person sales organization and Aoyun 2026, while R&D rose to RMB 5.7 million for Hi3, Shunfeng, and the new variety pipeline. On the balance sheet, he cited RMB 13.4 million in cash, RMB 24.8 million in inventories, RMB 9.5 million in short-term borrowings, and RMB 168.1 million in total liabilities.

Investors asked when China’s expanding GMO corn policy could turn into visible GMO revenue. Management said the policy direction is favorable but would not forecast Ministry of Agriculture timing; instead, it emphasized that Origin already has the BBL2-2 biosafety certificate, GMO crop seed production in Beijing Origin’s business scope, two crop seed production and operation licenses, and a licensing pathway through the Origin Marker Biological Breeding Service Consortium. Another question asked how Origin could compete for a top-three position by 2030 to 2032; management said the strategy is not conventional scale but a biotechnology stack built around Hi3, the Shunfeng patent license, AI-assisted breeding, GMO readiness, and related licenses. On AI-assisted breeding, management said it is being used for genomic selection, image-based phenotyping, and donor/recipient prediction for HI3 and Shunfeng editing, with the goal of reducing field seeds required per candidate and lowering R&D cost per validated trait.