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 multi-tier holding structure with a BVI parent, PRC subsidiaries, and VIEs to comply with Chinese restrictions on foreign ownership in certain agricultural sectors.

• Engages in R&D partnerships with Chinese research institutes, securing exclusive rights to market new seed varieties.

• Maintains a competitive edge through expedited government approval for new hybrid varieties via its “Green Pass” status.

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 flow from operating activities was negative RMB 15.0 million in 2024, with continued negative cash flows in prior years.

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

Use of proceeds and capital allocation

• Proceeds from securities offerings will be used for general corporate purposes, working capital, debt repayment, R&D, and potential acquisitions or investments.

• Management has broad discretion over allocation of funds, with no specific amounts or timing determined.