Origin Agritech (SEED) Registration Filing summary

Company overview and business model

• Operates in agricultural biotechnology, focusing on crop seed breeding and genetic improvement in China, with a strong emphasis on GM seed traits and germplasm resources.

• Utilizes a VIE structure due to PRC restrictions on foreign ownership in certain agricultural sectors, consolidating VIEs under US GAAP.

• Engages in cooperative agreements with Chinese research institutes for exclusive seed marketing rights, reducing R&D costs.

• Maintains a competitive advantage through “Green Pass” status, expediting new hybrid variety approvals.

Financial performance and metrics

• For the year ended September 30, 2024, consolidated total revenue was RMB 113,381,000, with net income attributable to shareholders of RMB 20,712,000.

• Cash used in operating activities was RMB 15,031,000 in 2024, with a net decrease in cash and equivalents of RMB 15,333,000.

• The company has a history of fluctuating revenues and net income, with a going concern qualification from its auditor.

Use of proceeds and capital allocation

• Proceeds from securities offerings will be used for general corporate purposes, working capital, debt repayment, capital expenditures, and potential acquisitions or licensing of technology.

• Management has broad discretion over the allocation of net proceeds.