Key Takeaways
- Revenue from Origin AgriTech increased to $16.2 million, up from $13 million in 2023, driven by higher corn seed sales.
- Received a GMO safety certificate for transgenic maize BBL2-2, featuring insect-resistant and herbicide-tolerant traits.
- Published gene editing breakthroughs in Nature and developed maize induction lines with improved traits.
- Established the Origin Marker Biological Breeding Service Consortium to accelerate commercialization of GMO and gene editing technologies.
- Net income decreased to $3.0 million, compared to $7.7 million in 2023, due to lower investment income.
- Liquidity decreased, with cash and cash equivalents at $1.2 million, down from $3.3 million in 2023.
GMO and Gene Editing Developments From Origin Agritech
Origin Agritech made significant progress in its GMO and gene editing initiatives during fiscal year 2024:
- GMO Safety Certification: In May 2024, the company received a GMO safety certificate for transgenic maize BBL2-2, which contains two insect-resistant genes (Cry1Ab and Cry3Bb) and one herbicide-tolerance gene (Cp4-epsps).
- GMO Hybrid Trials: Four GMO corn hybrids entered national trials, with one expected to receive approval in 2025 and two more anticipated in 2026.
- Gene Editing Innovations:
- Published research in Nature describing a breakthrough in maize induction line gene editing technology.
- Developed over ten maize gene-edited induction lines, with traits such as leaf angle reduction, drought resistance, and lodging resistance.
Strategic Initiatives and Partnerships
Origin Agritech launched several initiatives to accelerate the commercialization of its agricultural technologies:
- Established the Origin Marker Biological Breeding Service Consortium in collaboration with China Golden Marker Biotechnology Co., aiming to license and commercialize GMO and gene editing technologies.
- Expanded cooperation with breeding companies, improving over 100 corn varieties and creating new royalty-based revenue opportunities.
Traditional Hybrid Seed Development
Origin Agritech continued to enhance its hybrid corn portfolio:
- Two hybrid varieties completed national trials and are expected to receive approval by summer 2025.
- Fifteen new hybrids entered official registration trials.
- Integrated a gene from wild corn into an elite commercial hybrid, enabling a 10-15% increase in planting density and a potential yield increase of over 10%.
- Eight new hybrid varieties are planned for market launch in 2025 and beyond.
Financial Performance of Origin Agritech
Revenue Growth
- Total revenue for fiscal year 2024 was $16.2 million, compared to $13 million in 2023.
- Increase driven by higher corn seed sales and improved market competitiveness.
Operating Expenses
- Total operating expenses rose to $7.5 million, up from $4.5 million in 2023, reflecting investments in research and business expansion.
- Research and development (R&D) expenses increased to $1.4 million, compared to $1.0 million in 2023, primarily for crop seed innovation and genetically modified products.
Net Income and Liquidity
- Net income was $3.0 million, down from $7.7 million in 2023, due to lower investment income.
- Cash and cash equivalents declined to $1.2 million, from $3.3 million in 2023.
- Total borrowings increased to $0.7 million, compared to zero debt in 2023.
Leadership and Governance
- Weibin Yan was appointed CEO and Board Director in August 2024.
- Patrick Cheng joined as CFO and Board Director, bringing over 30 years of corporate management experience.
Origin Agritech Management Commentary
“Fiscal year 2024 was a transformative period for Origin Agritech, with strong revenue growth and major advancements in GMO and gene editing technologies. With our new leadership team and expanding partnerships, we are well-positioned to accelerate commercialization and deliver long-term value to shareholders.”
– Weibin Yan, CEO, Origin Agritech
Origin Agritech remains focused on expanding its agricultural technology offerings, advancing its GMO and hybrid seed portfolio, and driving growth through strategic partnerships and commercialization efforts.
Read the complete financial results here.
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