HomeProduct Complimentary download Origin Agritech Limited reports unaudited financial results for the three months ended March 31, 2016

Origin Agritech Limited reports unaudited financial results for the three months ended March 31, 2016

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Publish time: 5th May, 2016      Source: Beijing, China
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Origin Agritech Limited reports unaudited financial results for the three months ended March 31, 2016Origin Agritech Limited reports unaudited financial results for the three months ended March 31, 2016" title="Share this link on Facebook">Beijing, ChinaMay 5, 2016Origin 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 second quarter ended March 31, 2016. Origin prepares its financial statements in accordance with generally accepted accounting principles (GAAP) of the United States.Highlights for the Second Fiscal Quarter Ended March 31, 2016Corporate StrategiesThe Company and DuPont Pioneer, the advanced seed and genetics business of DuPont (NYSE: DD) jointly announced a commercial licensing agreement to develop new seed technologies for Chinese farmers on April 4, 2016. This combined effort will contribute to the modernization of China's agriculture system and improved food security, which the government has set as priorities.Key Financial Results(in thousands RMB)Q2FY2016Q2FY2015%ofchangeSegment net revenue: Seed production & distribution2,5413,838(33.8)%Biotech & Product Development211-100.0%Segment total net revenues2,7523,838(28.3)%Financial Results for the Second Fiscal Quarter Ended March 31, 2016During the second quarter of fiscal year 2016, the Company generated revenues of RMB2.8 million (US$0.4 million) compared with RMB3.8 million for the three months ended March 31, 2015. Revenues of seed production & distribution generated this quarter were mainly from scrap sales, while revenues of Biotech & Product Development represented the conversion and testing fees from DuPont Pioneer. The majority of Origin's revenues are recorded in the third and fourth fiscal quarters as a result of our revenue recognition policy.Deferred revenues were RMB418.8 million (US$64.8 million) as of March 31, 2016, compared with RMB423.1 million on March 31, 2015. 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 loss for the second quarter of fiscal 2016 was RMB5.6 million (US$0.9 million) compared with a gross loss of RMB1.7 million in the second quarter of fiscal 2015. Negative gross margin was a result of scrap sales of some rice seed products during this quarter.Total operating expenses for the second quarter ended March 31, 2016, were RMB24.9 million (US$3.8 million), up 25% from RMB19.8 million for the same period in fiscal 2015. The increase was mainly due to increased inventory shipping costs. Specifically, selling and marketing expenses were RMB8.4 million (US$1.3 million) for the second quarter of fiscal 2016, an increase of 35% from RMB6.2 million for the same period last year. General and administrative expenses were RMB9.9 million (US$1.5 million) for the second quarter ended March 31, 2016, which was consistent with RMB9.2 million for the same period last year. Research and development expenses were RMB8.8 million (US$1.4 million) in the second quarter of fiscal 2016, compared with RMB8.9 million for the same period last year, also consistent with the same period last year.Operating loss for the second quarter of fiscal 2016 amounted to RMB30.4 million (US$4.7 million) compared with an operating loss of RMB21.5 million for the same period in fiscal 2015. The increased operating loss was mainly due to handling of the scrap rice seed products at lower price and increased inventory shipping costs.Net loss attributable to the Company for the second quarter of fiscal 2016 was RMB28.1 million (US$4.4 million), or net loss per basic and diluted share of RMB1.23 (US$0.19), compared to a net loss of RMB25.9 million, or net loss per basic and diluted share of RMB1.14 in the same period one year ago.BALANCE SHEETAs of March 31, 2016, cash and cash equivalents were RMB40.2 million (US$6.2 million) and shareholders' equity attributable to the Company was RMB184.0 million (US$28.5 million).The Company had short-term borrowings of RMB220.0 million (US$34.0 million) and long-term borrowing of RMB53.7 million (US$8.3 million). The total borrowings decreased by 8.1% from the total borrowings of RMB 297.7 million for the same period last year. Short-term borrowings were mainly for working capital, while long-term borrowing was mainly used in relation with the corn seed production facilities in Xinjiang Origin and the Company's working capital.Advances from customers were RMB62.8 million (US$9.7 million) as of March 31, 2016. These advances represent cash receipts for orders in the upcoming selling season.Management and Board ChangesThe Board of Directors ofOrigin announced Dr. William S. Niebur as the company's new President, CEO and Director. Dr. Gengchen Han will retain his position as Chairman of the Board, effective April 25, 2016.Yasheng Yang and James Kang resigned their position as directors, effective April 25, 2016.More news from: Origin Agritech Ltd.Website: http://www.cnchemicals.com/: May 5, 2016The news item on this page is copyright by the organization where it originatedFair use notice