Origin Agritech (SEED) Q2 2026 earnings summary

Executive summary

• Midpoint of recovery phase in a three-stage plan, focusing on converting rebuilt foundations into commercial and scientific outcomes, with tangible progress in R&D, sales infrastructure, and operational execution.

• Net revenue for H1 FY2026 was RMB 49.2 million ($7.1 million), down from RMB 72.3 million year-over-year, reflecting a strategic shift toward new corn seed products and reduced external seed tolling services.

• Net loss attributable to shareholders narrowed to RMB 14.4 million ($2.1 million) from RMB 25.6 million a year ago, mainly due to lower general and administrative expenses.

• Leadership strengthened with new board and executive appointments, and direct equity investment by CEO.

Financial highlights

• Total revenues for H1 FY2026 were RMB 49.2 million ($7.1 million), down 31.9% year-over-year due to strategic product portfolio transition.

• Gross profit was RMB 5.5 million ($0.8 million), compared to RMB 8.1 million in the prior year period.

• Operating expenses dropped 44% to RMB 18.4 million, driven by a 70% reduction in G&A costs.

• Selling and marketing expenses increased 93% to RMB 5.1 million, reflecting intentional investment in commercial campaigns and sales personnel.

• R&D expenses rose 11% to RMB 5.7 million, supporting Hi3 platform, gene editing, and proprietary product development.

Outlook and guidance

• Operating leverage is becoming visible, with reduced costs and stable gross margin positioning for growth.

• Strategic focus remains on expanding new corn seed product sales and reducing lower-margin external seed tolling.

• Commercial cycle ahead is concrete, with spring planting and Aoyu 2026 program underway.

• First half of FY2027 expected to demonstrate conversion of restructuring efforts into commercial outcomes.