Origin Agritech (SEED) Registration Filing summary

Company overview and business model

• Operates as an agricultural biotechnology company focused on crop seed breeding and genetic improvement in China, leveraging advanced technologies and a rich germplasm resource base.

• Utilizes a multi-tier holding structure with a British Virgin Islands parent, PRC subsidiaries, and variable interest entities (VIEs) to comply with Chinese restrictions on foreign ownership in GMO seed development.

• Engages in cooperative agreements with Chinese research institutes to access and commercialize new seed products, reducing R&D costs.

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

Financial performance and metrics

• For the year ended September 30, 2024, consolidated revenue was RMB 113.4 million, with net income attributable to shareholders of RMB 20.7 million.

• Working capital deficit as of September 30, 2024 was RMB 84.5 million, and total consolidated assets were RMB 131.6 million.

• Cash used in operating activities in 2024 was RMB 15.0 million, with a net decrease in cash and equivalents of RMB 15.3 million.

• Auditor issued a going concern qualification, indicating a need for additional working capital.

Use of proceeds and capital allocation

• Proceeds from the offering will be used for general corporate purposes, working capital, debt repayment, capital expenditures, and potential acquisitions or licensing of intellectual property.

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