Beijing, China
October 8, 2008
Origin Agritech Limited
(NASDAQ: SEED) ("Origin" or the "Company"), a leading
technology-focused supplier of crop seeds in China, today
announced that it has doubled market penetration efforts for the
upcoming FY2009 selling season to include 1,000 demonstration
lots up from 500 lots in FY2008 due to increased demand for our
high-quality seed products. The Company continues to see seed
prices increasing as the demand for these products continue to
be driven by non-ethanol related demand for corn. Of particular
importance is the increase of the incomes of the growing middle
class and the demand for higher-quality food products in China.
Origin reiterates the fact GMO approval of the first
genetically-modified corn product in China continues to be on
track. The government continues to support GMO implementation,
as demonstrated by the recently approved US $3 billion
comprehensive GMO implementation program, which is to be
supported from all levels of government. The Company's
conventional hybrid pipeline remains productive as we expect
eight total seed approvals this year across our four main
product categories.
Additionally, the Company expects that to be cash flow positive
for FY2008, as our expense base continues to decline. The
Company's balance sheet still remains strong with US $48.8
million in cash and cash equivalent as of June 30, 2008.
Co-CEO Liang Yuan states, "Our Company prospects have never been
stronger. We see the continued need for higher quality food
products coming into the marketplace and Origin is leading the
charge."
Founded in 1997 and headquartered in Beijing, Origin Agritech
Limited (NASDAQ: SEED) is one of China’s leading,
vertically-integrated agricultural technology company
specializing in agri-biotech research, development and
production to supply the growing populations of China. Origin
develops, grows, processes, and markets crop seeds to farmers
throughout China and parts of Southeast Asia via a network of
approximately 3,800 first-level distributors and 65,000
second-level distributors and retailers. The hybrid seed
industry is estimated at US$2 billion and that is expected to
double by 2010. The Company currently operates facilities in 30
of China’s 32 provinces as well as Beijing. Since Origin
launched its first entirely internally developed seed in 2003,
the Company has developed and commercialized an internally
developed proprietary seed portfolio of twelve corn hybrids,
twelve rice hybrids and two canola hybrids as of 2007. For
further information, please log on
www.originagritech.com.
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