Q2 2026 Origin Agritech Ltd Earnings Call and Business Update
Operator: Thank you for standing by. Welcome to Origin Agritech H1 Fiscal Year 2026 Results Conference Call. Please note that today's call is being recorded. It is now my pleasure to introduce Matthew Abenante of Strategic Investor Relations. Please go ahead.
Speaker #2: Please note that today's call is being recorded. It is now my pleasure to introduce Matthew Abenanti of Strategic Investor Relations. Please go ahead.
Speaker #1: Thank you, operator. And thanks to all of you for joining us today on the Origin Agritech conference call. Joining us on the call today are Mr. Wei Bin Yen, Chief Executive Officer; Dr. Zhang James Chen, Chief Financial Officer; and Ms. Kate Lang, Director of Investor Relations.
Matthew Abenante: Thank you, operator, and thanks to all of you for joining us today on the Origin Agritech conference call. Joining us on the call today are Mr. Weibin Yan, Chief Executive Officer, Dr. Zheng James Chen, Chief Financial Officer, and Ms. Kate Lang, Director of Investor Relations. Before we begin, I would like to remind our listeners that any statements on this call that are not historical facts are forward-looking statements. Today's call includes forward-looking statements that address expected future business and financial performance and financial conditions and contain words such as expect, anticipate, intend, plan, believe, seek, will, would, target, and similar expressions and variations. Forward-looking statements address matters that are uncertain, and they are not guarantees of future performance and are based on assumptions and expectations which may not be realized.
Matthew Abenante: Thank you, operator, and thanks to all of you for joining us today on the Origin Agritech Conference Call. Joining us on the call today are Mr. Weibin Yan, Chief Executive Officer, Dr. Zheng James Chen, Chief Financial Officer, and Ms. Kate Lang, Director of Investor Relations. Before we begin, I would like to remind our listeners that any statements on this call that are not historical facts are forward-looking statements.
Speaker #1: Before we begin, I would like to remind our listeners that any statements on this call that are not historical facts are forward-looking statements. Today's call includes forward-looking statements that address expected future business and financial performance and financial conditions, and contain words such as "expect," "anticipate," "intend," "plan," "believe," "seek," "will," "would," "target," and similar expressions in variations.
Matthew Abenante: Today's call includes forward-looking statements that address expected future business and financial performance and financial conditions and contain words such as expect, anticipate, intend, plan, believe, seek, will, would, target, and similar expressions and variations. Forward-looking statements address matters that are uncertain, and they are not guarantees of future performance and are based on assumptions and expectations which may not be realized.
Speaker #1: Forward-looking statements address matters that are uncertain, and they are not guarantees of future performance. They are based on assumptions and expectations which may not be realized.
Speaker #1: They are based on management's current expectations and assumptions, estimates, and projections about the company and the industry in which the company operates, but involve a number of risks and uncertainties, many of which are beyond the company's control.
Matthew Abenante: They are based on management's current expectations, assumptions, estimates, and projections about the company and the industry in which the company operates but involve a number of risks and uncertainties, many of which are beyond the company's control. Some of the important factors that could cause the company's actual results to differ materially from those discussed in forward-looking statements are failure to develop and market new products and optimally manage product life cycles. Ability to respond to market acceptance, rules, regulations, and policies affecting our products. Failure to appropriately manage process safety and product stewardship issues. Changes in laws and regulations or political conditions. Global economic and capital markets conditions such as inflation, interest, and currency exchange rates. Business or supply disruptions. Natural disasters and weather events and patterns. Ability to protect and enforce the company's intellectual property rights. Separation of underperforming or non-strategic assets or businesses.
Matthew Abenante: They are based on management's current expectations, assumptions, estimates, and projections about the company and the industry in which the company operates but involve a number of risks and uncertainties, many of which are beyond the company's control. Some of the important factors that could cause the company's actual results to differ materially from those discussed in forward-looking statements are failure to develop and market new products and optimally manage product life cycles.
Speaker #1: Some of the important factors that could cause the company's actual results to differ materially from those discussed in forward-looking statements are: failure to develop and market new products and optimally manage product life cycles; ability to respond to market acceptance rules, regulations, and policies; affecting our products; failure to appropriately manage process safety and product stewardship issues; changes in laws and regulations or political conditions; global economic and capital markets conditions such as inflation, interest, and currency exchange rates; business or supply disruptions; natural disasters and weather events and patterns; ability to protect and enforce the company's intellectual property rights; and separation of underperforming or non-strategic assets or businesses.
Matthew Abenante: Ability to respond to market acceptance, rules, regulations, and policies affecting our products. Failure to appropriately manage process safety and product stewardship issues. Changes in laws and regulations or political conditions. Global economic and capital markets conditions such as inflation, interest, and currency exchange rates. Business or supply disruptions. Natural disasters and weather events and patterns. Ability to protect and enforce the company's intellectual property rights. Separation of underperforming or non-strategic assets or businesses.
Speaker #1: The company undertakes no duty or obligation to publicly revise or update any forward-looking statements as a result of future developments or new information or otherwise, should circumstances change, except as otherwise required by securities and other applicable laws.
Matthew Abenante: The company undertakes no duty or obligation to publicly revise or update any forward-looking statements as a result of future developments or new information or otherwise, should circumstances change, except as otherwise required by securities and other applicable laws. Although the company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and actual results may differ materially from the anticipated results. You are urged to consider these factors carefully in evaluating the forward-looking statements contained herein and are cautioned not to place undue reliance on such forward-looking statements, which are qualified in their entirety by these cautionary statements. With that, I would like to turn the call over to our first speaker, Mr. Weibin Yan, Chief Executive Officer of Origin Agritech. Hello, Mr. Yan.
Matthew Abenante: The company undertakes no duty or obligation to publicly revise or update any forward-looking statements as a result of future developments or new information or otherwise, should circumstances change, except as otherwise required by securities and other applicable laws. Although the company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and actual results may differ materially from the anticipated results.
Speaker #1: Although the company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct.
Speaker #1: Actual results may differ materially from the anticipated results. You are urged to consider these factors carefully and evaluate the forward-looking statements contained herein, and are cautioned not to place undue reliance on such forward-looking statements, which are qualified in their entirety by these cautionary statements.
Matthew Abenante: You are urged to consider these factors carefully in evaluating the forward-looking statements contained herein and are cautioned not to place undue reliance on such forward-looking statements, which are qualified in their entirety by these cautionary statements. With that, I would like to turn the call over to our first speaker, Mr. Weibin Yan, Chief Executive Officer of Origin Agritech. Hello, Mr. Yan.
Speaker #1: With that, I would like to turn the call over to our first speaker, Mr. Wei Bin Yen, Chief Executive Officer of Origin Agritech. Hello, Mr. Yen.
Speaker #2: Thank you, Matthew, and good morning. Good evening to everyone joining us from around the world. The six months ended March 31, 2026, represent the midpoint of the recovery phase of the three-stage strategic plan.
Weibin Yan: Thank you, Matthew Abenante, and good morning, good evening to everyone joining us from around the world. H1 2026 represent the midpoint of the recovery phase of the three-stage strategic plan we announced in November 2024. As a reminder, that plan calls for recovery in 2025 and 2026. Up from 2027 to 2029, and return to industrial leadership from 2030 to 2032. When I addressed you on our fiscal year 2025 earnings call in February, I described the recovery work we had completed across our team building research capabilities, production facilities, and sales infrastructure. This H1 of fiscal year 2026 was about taking that rebuilt foundation and beginning to convert it into measurable commercial and scientific outcomes.
Weibin Yan: Thank you, Matthew Abenante, and good morning, good evening to everyone joining us from around the world. H1 2026 represent the midpoint of the recovery phase of the three-stage strategic plan we announced in November 2024. As a reminder, that plan calls for recovery in 2025 and 2026. Up from 2027 to 2029, and return to industrial leadership from 2030 to 2032.
Speaker #2: We announced in November 2024. As a reminder, the plan calls for recovery in 2025 under 2026. So that up from 2027 to 2029. And there are 10 to industrial leadership from 2030 to 2032.
Weibin Yan: When I addressed you on our fiscal year 2025 earnings call in February, I described the recovery work we had completed across our team building research capabilities, production facilities, and sales infrastructure. This H1 of fiscal year 2026 was about taking that rebuilt foundation and beginning to convert it into measurable commercial and scientific outcomes.
Speaker #2: When I addressed you on our fiscal year 2025 forwarding score in February, I described the recovery work we had completed across our team, building research capabilities, production facilities, and sales infrastructure.
Speaker #2: This half-year of the fiscal year 2026 was about taking that rebuild foundation and beginning to convert it into measurable commercial and scientific outcomes. I want to thank you through several operational areas where we made tangible progress during the period.
Weibin Yan: I want to take you through several operational areas where we made tangible progress during the period, then Dr. Chen will walk you through what that progress looked like in our financial statement. In November 2025, we held a research and development conference that sharpened our focus on variety acquisitions, variety development, and biotech commercialization. With the philosophy either be the first or be unique, we expanded breeding approaches and test scales have made very good progress since then. Our 2025 winter South China breeding work generated over 30,000 new test cross combinations, including those by the most breakthrough gene platforms. By using our high-throughput platform and the tassel final reduction gene licensed from China Agricultural University, we completed precision smart plant type improvements on the major varieties in the market to support our partners and ourselves to meet higher density trend in the industry.
Weibin Yan: I want to take you through several operational areas where we made tangible progress during the period, then Dr. Chen will walk you through what that progress looked like in our financial statement. In November 2025, we held a research and development conference that sharpened our focus on variety acquisitions, variety development, and biotech commercialization. With the philosophy either be the first or be unique, we expanded breeding approaches and test scales have made very good progress since then.
Speaker #2: And then Dr. Chen will walk you through what that progress looked like in our financial statements. In November 2025, we held a research and development conference that sharpened our focus on variety acquisitions.
Speaker #2: Variety development and biotech commercialization. With the philosophy 'either be the first or be unique,' we expanded breeding approaches and test scales, and have made very good progress since then.
Weibin Yan: Our 2025 winter South China breeding work generated over 30,000 new test cross combinations, including those by the most breakthrough gene platforms. By using our high-throughput platform and the tassel final reduction gene licensed from China Agricultural University, we completed precision smart plant type improvements on the major varieties in the market to support our partners and ourselves to meet higher density trend in the industry.
Speaker #2: Our 2025 winter South China breeding work generated our 30,000 new test cross compilations including those by the most breakthrough gene plasmas. By using our highest-grade platform and totally financial reduction gene licensed from China Agriculture University, we completed precision smart plant-type improvements on the major varieties in the market to support our partners and ourselves.
Speaker #2: To meet the higher density trend in the industry, during this period we have restored the sales team to 36 professionals deployed across the country, and we have rebuilt the regional presence, including most importantly our reentry into North China and Northeastern China.
Weibin Yan: During this period, we have restored the sales team to 36 professionals deployed across country, and we have rebuilt the regional presence, including, most importantly, a re-entry into Northeast China, where in September 2025, we hosted a variety showcase and technology seminar in Changchun, which drew more than 200 dealers and partners. In early March of the year, we held our 2026 annual marketing conference in Changsha, Hunan Province. The total conference convened our subsidiary general managers, regional marketing leadership, and key distribution partners. As a conclusion of that conference, we formally launched the Aoyun 2026 New Variety Promotion Program, our integrated commercial campaigns for this marketing cycle, and signed KPI contracts with general managers of the six regional sales companies across China's principal corn production regions.
Weibin Yan: During this period, we have restored the sales team to 36 professionals deployed across country, and we have rebuilt the regional presence, including, most importantly, a re-entry into Northeast China, where in September 2025, we hosted a variety showcase and technology seminar in Changchun, which drew more than 200 dealers and partners. In early March of the year, we held our 2026 annual marketing conference in Changsha, Hunan Province.
Speaker #2: We're in September 2025; we hosted a variety showcase and technology seminar in Changcheng, which drew more than 200 diners and partners. In early March of the year, we held our 2026 annual marketing conference in Changsha, Hunan Province.
Speaker #2: The total conference can wind our subsidiary general managers, regional marketing leadership, and key distribution partners. As a conclusion, for that conference, we formally launched the all-in 2026 new variety promotion program.
Weibin Yan: The total conference convened our subsidiary general managers, regional marketing leadership, and key distribution partners. As a conclusion of that conference, we formally launched the Aoyun 2026 New Variety Promotion Program, our integrated commercial campaigns for this marketing cycle, and signed KPI contracts with general managers of the six regional sales companies across China's principal corn production regions.
Speaker #2: Our integrated commercial campaigns for this marketing cycle and assigned KPI contracts with general managers of the six regional sales companies across China's principal corn production regions.
Speaker #2: With our All-In 2026 program and the performance contract we signed, every manager, every region, and every product line now has a working annual target and personally owns the outcome.
Weibin Yan: With the Aoyun 2026 program and the performance contract we signed, every manager, every region, and every product line now has a very clear annual target and personally owns the outcome. To fill our product portfolio with the most competitive varieties, we have deepened collaborations with top breeders across ecological zones, introduced or jointly assembled over 10,000 new corn combinations in our test pipeline this year by working with more than 30 outstanding breeders in the industry. We now acquired a top-ranked variety, Zhengtai 889, which was jointly developed with the Hunan Agricultural University. Also, a CAU bred Zhongnongda 8538, which performs strongly in Northwest China. In November 2025, the Beijing Tongzhou District Administration for Market Regulation approved the inclusion of GMO crop seed production license with our Beijing Origin Seed Ltd. in the business scope I have reported to you previously.
Weibin Yan: With the Aoyun 2026 program and the performance contract we signed, every manager, every region, and every product line now has a very clear annual target and personally owns the outcome. To fill our product portfolio with the most competitive varieties, we have deepened collaborations with top breeders across ecological zones, introduced or jointly assembled over 10,000 new corn combinations in our test pipeline this year by working with more than 30 outstanding breeders in the industry.
Speaker #2: To fill our product portfolio with the most competitive varieties, we have deepened collaborations with top breeders across ecological zones. We introduced and jointly assembled our 10,000 new corn compilations in our test pipeline this year by working with more than 30 outstanding breeders in the industry.
Speaker #2: And we now acquired a top-ranked variety, gene type 8 line, which was jointly developed with Hunan Agriculture University. Also, our CAU brought Zhonglongda 85308, which performs strongly in Northwest China.
Weibin Yan: We now acquired a top-ranked variety, Zhengtai 889, which was jointly developed with the Hunan Agricultural University. Also, a CAU bred Zhongnongda 8538, which performs strongly in Northwest China. In November 2025, the Beijing Tongzhou District Administration for Market Regulation approved the inclusion of GMO crop seed production license with our Beijing Origin Seed Ltd. in the business scope I have reported to you previously.
Speaker #2: In November 2025, the Beijing-Tongzhou District Marketing Supervision Administration approved the inclusion of general crop seed production license with our Beijing Origin Seed Limited in the business scope, and I have reported this to you previously.
Weibin Yan: We have two leadership milestones subsequent to the reporting period that I want to address directly. First, in March 2026, we welcomed Dr. Jian Zhang to our board of directors as an independent director. Dr. Zhang has 20 year above experience in global crop biotechnology industry with prior senior roles at DuPont Pioneer, Syngenta, and BASF. His appointment brings world-class biotechnology and international commercialization experience to our board at exactly the right time in our development. We are also happy to welcome back Dr. James Chen, retained as chief financial officer. Many of you will know Dr. Chen from his prior service at Origin. To tenure as CFO and one as CFO, Dr. Chen brings continuity, capital market sophistication, and a deep institutional understanding of the company. I'm pleased to have him back on the executive team, and this is very helpful for me.
Speaker #2: And we have two leadership milestones subsequent to the reporting period that I want to address directly. First, in March 2026, we welcomed Dr. Jian Zhang to our board of directors as an independent director.
Weibin Yan: We have two leadership milestones subsequent to the reporting period that I want to address directly. First, in March 2026, we welcomed Dr. Jian Zhang to our board of directors as an independent director. Dr. Zhang has 20 year above experience in global crop biotechnology industry with prior senior roles at DuPont Pioneer, Syngenta, and BASF. His appointment brings world-class biotechnology and international commercialization experience to our board at exactly the right time in our development.
Speaker #2: Dr. Zhang has over 20 years' experience in the global crop biotechnology industry. With para-senior roles at Tufang, Pioneer, Syngenta, and BASF, his appointment brings world-class biotechnology and international commercialization experience to our board as an executive at the right time in our development.
Speaker #2: We are also happy to welcome back Dr. James Chen, retained as Chief Financial Officer. Many of you will know Dr. Chen from his prior service at Orange.
Weibin Yan: We are also happy to welcome back Dr. James Chen, retained as chief financial officer. Many of you will know Dr. Chen from his prior service at Origin. To tenure as CFO and one as CFO, Dr. Chen brings continuity, capital market sophistication, and a deep institutional understanding of the company. I'm pleased to have him back on the executive team, and this is very helpful for me.
Speaker #2: To tenure us as CFO and one as CFO, Dr. Chen brings continuity, capital market sophistication, and a deep institutional understanding of the company. I'm pleased to have him back on the executive team and this is very helpful for me.
Speaker #2: And we'll attend the call out to him in a moment to walk through the numbers. Finally, during the reporting period, we completed an investment agreement that included a direct equity investment by myself.
Weibin Yan: I will turn the call over to him in a moment to walk through the numbers. Finally, during the reporting period, we completed an investment agreement that included a direct equity investment by myself. I want our shareholders to know that my conviction in the path we are executing is reflected not just in my words on the script, also in my own financial state. With that, let me hand it over to Dr. Chen. Thank you.
Weibin Yan: I will turn the call over to him in a moment to walk through the numbers. Finally, during the reporting period, we completed an investment agreement that included a direct equity investment by myself. I want our shareholders to know that my conviction in the path we are executing is reflected not just in my words on the script, also in my own financial state. With that, let me hand it over to Dr. Chen. Thank you.
Speaker #2: I want our shareholders to know that my conviction in the path we are executing is reflected not just in my words, but on the scope.
Speaker #2: Also, in my own finance state. With that, let me hand it over to Dr. Chen. Thank you.
Speaker #1: Thank you, Mr. Yan, and hello everyone. It is great to be back addressing Origin Agritech shareholders. I will walk you through our financial results for the six months ended March 31, 2026, with comparisons to the prior year period.
Zheng James Chen: Thank you, Mr. Yan, and hello everyone. It is great to be back addressing Origin Agritech shareholders. I will walk you through our financial results for the H1 ended 31 March 2026, with comparisons to the prior year period. Total revenues for the H1 of fiscal 2026 were RMB 49.2 million, or $7.1 million, compared with RMB 72.3 million in the H1 of fiscal 2025, a decrease of approximately 31.9%. The decrease was mainly due to the strategic transition in the company's product portfolio, as we are focusing more on the sales of new corn seed products and reducing the external seed tolling service. Gross profit was RMB 5.5 million, or $0.8 million, in the H1 of fiscal 2026, compared with RMB 8.1 million in the prior year period.
Zheng James Chen: Thank you, Mr. Yan, and hello everyone. It is great to be back addressing Origin Agritech shareholders. I will walk you through our financial results for the H1 ended 31 March 2026, with comparisons to the prior year period. Total revenues for the H1 of fiscal 2026 were RMB 49.2 million, or $7.1 million, compared with RMB 72.3 million in the H1 of fiscal 2025, a decrease of approximately 31.9%.
Speaker #1: Total revenues for the first half of fiscal 2026 were RMB 49.2 million, or $7.1 million, compared with RMB 72.3 million in the first half of fiscal 2025, a decrease of approximately 31.9%.
Speaker #1: The decrease was mainly due to the strategic transition in the company's product portfolio, as we are focusing more on the sales of newly conceived products.
Zheng James Chen: The decrease was mainly due to the strategic transition in the company's product portfolio, as we are focusing more on the sales of new corn seed products and reducing the external seed tolling service. Gross profit was RMB 5.5 million, or $0.8 million, in the H1 of fiscal 2026, compared with RMB 8.1 million in the prior year period.
Speaker #1: And reducing the external seed tooling service. Gross profit was RMB 5.5 million, or $0.8 million, in the first half of fiscal 2026, compared with RMB 8.1 million in the prior-year period.
Speaker #1: Total operating expenses for the first half of fiscal 2026 were 18.4 million RMB, or $2.7 million, compared with 32.8 million RMB in the prior year period.
Zheng James Chen: Total operating expenses for H1 of fiscal 2026 were RMB 18.4 million or $2.7 million, compared with RMB 32.8 million in the prior year period, a 43.9% reduction. Let me break that down. General and administrative expenses declined sharply from RMB 25 million to RMB 7.6 million, a 69.8% year-over-year reduction. That reduction reflects the operating discipline now embedded in the business following the leadership restructuring completed in December 2025 and the consolidation of corporate functions on the Beijing Origin. Selling and marketing expenses increased from RMB 2.6 million to RMB 5.1 million, up 93.3%. That increase is intentionally and entirely consistent with our strategy. It reflects the build-out of the 36-person sales organization and the field deployment of the Aoyun 2026 commercial campaign.
Zheng James Chen: Total operating expenses for H1 of fiscal 2026 were RMB 18.4 million or $2.7 million, compared with RMB 32.8 million in the prior year period, a 43.9% reduction. Let me break that down. General and administrative expenses declined sharply from RMB 25 million to RMB 7.6 million, a 69.8% year-over-year reduction.
Speaker #1: At 43.9% reduction. Let me break that down. General and administrative expenses declined sharply, from 25.0 million RMB to 7.6 million RMB, a 69.8% year-over-year reduction.
Speaker #1: That reduction reflects the operating discipline now embedded in the business following the leadership restructuring completed in December 2025, and the consolidation of corporate functions on the Beijing origin.
Zheng James Chen: That reduction reflects the operating discipline now embedded in the business following the leadership restructuring completed in December 2025 and the consolidation of corporate functions on the Beijing Origin. Selling and marketing expenses increased from RMB 2.6 million to RMB 5.1 million, up 93.3%. That increase is intentionally and entirely consistent with our strategy. It reflects the build-out of the 36-person sales organization and the field deployment of the Aoyun 2026 commercial campaign.
Speaker #1: Selling and marketing expenses increased from RMB 2.6 million to RMB 5.1 million, up 93.3%. That increase is intentional and entirely consistent with our strategy.
Speaker #1: It reflects the build-out of the 36% sales organization and the field deployment of the all-in 2026 commercial campaign. Research and development expenses were RMB 5.7 million, compared with RMB 5.2 million in the prior year period.
Zheng James Chen: Research and development expenses were 5.7 million RMB compared with 5.2 million RMB in the prior year period, an increase of approximately 11.1%, reflecting continued investment in the Hi3 platform and the Shunfeng licensed gene editing program and the new variety pipelines. Loss from operations for the H1 of fiscal 2026 was 12.9 million RMB or $1.9 million, compared with a loss from operation of 24.7 million RMB in the prior year period, a reduction of 47.8% year-over-year. Net loss attributable to Origin Agritech Limited was 14.4 million RMB or $2.1 million, compared with a net loss of 25.6 million RMB in the prior year period, a 43.8% improvement. Basic and diluted net loss per share was 1.21 RMB or $0.17, compared with 3.55 RMB in the prior year period. Turning to the balance sheet.
Zheng James Chen: Research and development expenses were 5.7 million RMB compared with 5.2 million RMB in the prior year period, an increase of approximately 11.1%, reflecting continued investment in the Hi3 platform and the Shunfeng licensed gene editing program and the new variety pipelines. Loss from operations for the H1 of fiscal 2026 was 12.9 million RMB or $1.9 million, compared with a loss from operation of 24.7 million RMB in the prior year period, a reduction of 47.8% year-over-year.
Speaker #1: An increase of approximately 11.1%, reflecting continued investment in the high-thread platform and the Shengfeng licensed gene editing program, and the new variety pipelines. Loss from operations for the first half of fiscal 2026 was 12.9 million RMB, or $1.9 million, compared with the loss from operations of 24.7 million RMB in the prior year period.
Speaker #1: A reduction of 47.8% year over year. Net loss attributed to Origin Agritech Limited was RMB 14.4 million, or $2.1 million, compared with a net loss of RMB 25.6 million in the prior year period.
Zheng James Chen: Net loss attributable to Origin Agritech Limited was 14.4 million RMB or $2.1 million, compared with a net loss of 25.6 million RMB in the prior year period, a 43.8% improvement. Basic and diluted net loss per share was 1.21 RMB or $0.17, compared with 3.55 RMB in the prior year period. Turning to the balance sheet.
Speaker #1: At 43.8% improvement, basic and diluted net loss per share was RMB 1.21, or $0.17, compared with RMB 3.55 in the prior year period.
Speaker #1: Turning to the balance sheet. As of March 31, 2026, the company had cash and cash equivalents of RMB 13.4 million, or $1.9 million, compared with RMB 15.9 million as of September 30, 2025.
Zheng James Chen: As of 31 March 2026, the company had a cash and cash equivalent of RMB 13.4 million or $1.9 million, compared with RMB 15.9 million as of 30 September 2025. Inventories were RMB 24.8 million or $3.6 million, compared with RMB 14.4 million at fiscal year-end. That increase is seasonal, reflecting the inventory build into spring planting season. Short-term borrowings were RMB 9.5 million or $1.4 million, compared with RMB 8.0 million at fiscal year-end. Total liabilities were RMB 168.1 million or $24.3 million, compared with RMB 162.2 million at fiscal year-end. With that financial summary, I will turn the call back to Mr. Yan for closing remarks.
Zheng James Chen: As of 31 March 2026, the company had a cash and cash equivalent of RMB 13.4 million or $1.9 million, compared with RMB 15.9 million as of 30 September 2025. Inventories were RMB 24.8 million or $3.6 million, compared with RMB 14.4 million at fiscal year-end. That increase is seasonal, reflecting the inventory build into spring planting season. Short-term borrowings were RMB 9.5 million or $1.4 million, compared with RMB 8.0 million at fiscal year-end. Total liabilities were RMB 168.1 million or $24.3 million, compared with RMB 162.2 million at fiscal year-end. With that financial summary, I will turn the call back to Mr. Yan for closing remarks.
Speaker #1: Inventories were 24.8 million RMB, or $3.6 million, compared with 14.4 million RMB at fiscal year-end. That increase is seasonal, reflecting the inventory build into the spring planting season.
Speaker #1: Short-term borrowings were RMB 9.5 million, or $1.4 million, compared with RMB 8.0 million at fiscal year end. Total liabilities were RMB 168.1 million, or $24.3 million, compared with RMB 162.2 million at fiscal year end.
Speaker #1: With that financial summary, I will turn the call back to Mr. Yan for closing remarks.
Speaker #2: Thank you. I want to leave you with three observations as we head into the second half of fiscal 2026, on the back half of the recovery phase.
Weibin Yan: Thank you. I want to leave you with three observations as we head into the H2 of fiscal 2026 on the H2 of the recovery phase. First, the operating leverage in the business is becoming visible in the numbers. A fundamental reduction in general administrative costs in a 1 year. With a stable gross margin and intentional investments in selling and marketing. It's a financial signature of a company that has completed its restructuring and is now positioned to grow into its customer base. Second, our biotechnology platform is no longer a research story. It is becoming a commercial story. Hi3 is recognized externally. The GMO varieties are in trial or in the channel. The connective tissue between the laboratory and the customer is being built. Third, the commercial cycle ahead is concrete and measurable. The spring planting season is underway. Aoyun 2026 is in the field.
Weibin Yan: Thank you. I want to leave you with three observations as we head into the H2 of fiscal 2026 on the H2 of the recovery phase. First, the operating leverage in the business is becoming visible in the numbers. A fundamental reduction in general administrative costs in a 1 year. With a stable gross margin and intentional investments in selling and marketing. It's a financial signature of a company that has completed its restructuring and is now positioned to grow into its customer base.
Speaker #2: First, the operating leverage in the business is becoming visible in the numbers. There was a fundamental reduction in general administrative costs in a single year, with a stable gross margin on intentional investment in selling and marketing.
Speaker #2: It's a financial signature of accounting that has completed its restructuring and is now positioned to grow into its customer base. Second, our biotechnology platform is no longer a research story.
Weibin Yan: Second, our biotechnology platform is no longer a research story. It is becoming a commercial story. Hi3 is recognized externally. The GMO varieties are in trial or in the channel. The connective tissue between the laboratory and the customer is being built. Third, the commercial cycle ahead is concrete and measurable. The spring planting season is underway. Aoyun 2026 is in the field. Performance contracts are signed. The 36-person professional sales team is deployed against a defined target. Our H1 of fiscal 2027 will tell the market whether the work of the past 18 months is converting in the commercial outcomes. I believe it will. Thank you.
Speaker #2: It is becoming a commercial story. High-thread is recognized externally, the GMO variety or in trial or in the channel. The connective tissue between the laboratory and the consumer and the customer is being built.
Speaker #2: Third, the commercial cycle ahead is concrete and measurable. The spring planting season is on the way. All-in 2026 is in the field. Performance contracts are signed.
Weibin Yan: Performance contracts are signed. The 36-person professional sales team is deployed against a defined target. Our H1 of fiscal 2027 will tell the market whether the work of the past 18 months is converting in the commercial outcomes. I believe it will. Thank you.
Speaker #2: The 36 professional sales team is deployed against a defined target. Our fiscal year or first half of fiscal 2027 will tell the market whether the work or the post-18 months is converting into commercial outcomes.
Speaker #2: Answer: I believe it will. Thank you.
Speaker #3: Thank you, Mr. Yan. Moreover, we did receive a number of questions in advance of today's call. Ms. Kate Lang will now answer the questions submitted by investors.
Matthew Abenante: Thank you, Mr. Yan. Moreover, we did receive a number of questions in advance of today's call. Ms. Kate Lang will now answer the questions submitted by investors. Hello, Kate.
Matthew Abenante: Thank you, Mr. Yan. Moreover, we did receive a number of questions in advance of today's call. Ms. Kate Lang will now answer the questions submitted by investors. Hello, Kate.
Speaker #3: Hello, Kate.
Speaker #4: Hello, Matthew. Thank you. And thank everyone who has submitted questions. Let's hear about them.
Kate Lang: Hello, Matthew. Thank you. Thank everyone who has submitted questions. Let's hear about them.
Kate Lang: Hello, Matthew. Thank you. Thank everyone who has submitted questions. Let's hear about them.
Speaker #3: Our first question. China has been gradually expanding the geography and acreage for approved commercial GMO corn planting over the past two years. How does that policy direction affect Origin's commercialization timeline?
Matthew Abenante: Our first question. China has been gradually expanding the geography and acreage for approved commercial GMO corn planting over the past two years. How does that policy direction affect Origin's commercialization timeline? Is there a fiscal year in which investors should expect GMO-related revenue to become a visible line item?
Matthew Abenante: Our first question. China has been gradually expanding the geography and acreage for approved commercial GMO corn planting over the past two years. How does that policy direction affect Origin's commercialization timeline? Is there a fiscal year in which investors should expect GMO-related revenue to become a visible line item?
Speaker #3: And is there a fiscal year in which investors should expect GMO-related revenue to become a visible line item?
Speaker #4: The policy direction in China has been moving favorably over the past two years, with gradual expansion of the geography and acreage approved for commercial GMO corn planting.
Kate Lang: The policy direction in China has been moving favorably over the past 2 years, with gradual expansion of the geography and acreage approved for commercial GMO corn planting. We are encouraged by that direction. However, I want to be careful now to characterize the future regulatory decisions. Those are decisions the Ministry of Agriculture makes on its own timeline, and I am not in a position to forecast them. What I can speak to is Origin's position relative to the policy window. We hold the biosafety certificate for BBL2-2. We have included GMO crop seed production within Beijing Origin's business scope as of October 2025. We have 2 crop seed production and operation license in China.
Kate Lang: The policy direction in China has been moving favorably over the past 2 years, with gradual expansion of the geography and acreage approved for commercial GMO corn planting. We are encouraged by that direction. However, I want to be careful now to characterize the future regulatory decisions. Those are decisions the Ministry of Agriculture makes on its own timeline, and I am not in a position to forecast them. What I can speak to is Origin's position relative to the policy window.
Speaker #4: We are encouraged by that direction. However, I want to be careful now to characterize future regulatory decisions. Those are decisions the Ministry of Agriculture makes on its own timeline, and I am not in a position to forecast them.
Speaker #4: What I can speak to is origins positioned relative to the policy window. We hold the biosafety certificate for BBL 2-2. We have included the GMO crop seed production within Beijing Origin's business scope as of October 2025.
Kate Lang: We hold the biosafety certificate for BBL2-2. We have included GMO crop seed production within Beijing Origin's business scope as of October 2025. We have 2 crop seed production and operation license in China. We have the Xinjiang processing facility restored to industry leading standards, and we have the Origin Marker Biological Breeding Service Consortium with the China Golden Marker Biotech, which gave us a licensing pathway that monetizes the biotechnology independent of our own seed sales.
Speaker #4: We have two crop seed production and operation licenses in China. We have the Xinjiang processing facility restored to industry-leading standards. And we have the Origin Marker Biological Breeding Service Consortium with China Golden Marker Biotech.
Kate Lang: We have the Xinjiang processing facility restored to industry leading standards, and we have the Origin Marker Biological Breeding Service Consortium with the China Golden Marker Biotech, which gave us a licensing pathway that monetizes the biotechnology independent of our own seed sales. The way I would frame it for shareholders is this: There are not many seed companies in China that hold both the biotechnology credentials and the production and distribution infrastructure to commercialize GMO corn at scale once the policy window fully opens. Origin is one of them.
Speaker #4: Which gave us a licensing pathway that monetizes the biotechnology independent of our own seed cells. The way I would frame it for shareholders is this.
Kate Lang: The way I would frame it for shareholders is this: There are not many seed companies in China that hold both the biotechnology credentials and the production and distribution infrastructure to commercialize GMO corn at scale once the policy window fully opens. Origin is one of them.
Speaker #4: There are not many seed companies in China that hold both the biotechnology credentials and the production and distribution infrastructure to commercialize GMO corn at scale once the policy window fully opens.
Speaker #4: Origin is one of them.
Speaker #3: You have stated a goal of being one of the top three Chinese corn seed companies by 2030 to 2032. What is the specific competitive position that lets Origin take share from its bigger competitors over the next several years?
Matthew Abenante: You have stated a goal of being one of the top three Chinese corn seed companies by 2030 to 2032. What is the specific competitive position that lets Origin take share from its bigger competitors over the next several years?
Matthew Abenante: You have stated a goal of being one of the top three Chinese corn seed companies by 2030 to 2032. What is the specific competitive position that lets Origin take share from its bigger competitors over the next several years?
Speaker #4: I appreciate the question. The path to a top-three position by 2030 to 2032 is not a path of outscaling the incumbents on conventional terms.
Kate Lang: I appreciate the question. The path to a top 3 position by 2030 to 2032 is not a path of outscaling the incumbents on conventional terms. It is a path of competing on biotechnology credentials in the Chinese seed industry that, in my view, is entering a decade of consolidation that rewards biotechnology-credentialed players. Hi3 corn haploid induction gene editing, recognized by the Chinese Academy of Agricultural Sciences in December 2025 as one of the top 10 major progresses in Chinese agricultural science. The Shunfeng BioTech patent license brings Cas-SF01 into our editing toolkit. In-house AI-assisted breeding is running against more than 200,000 germplasm resources. 2 crop seed production and operation license, GMO business scope at Beijing Origin, the BBL2-2 biosafety certificate. That is a biotechnology stack that the conventional scale incumbents cannot easily match. Because it is the product of a sustained, focused 20-year investment in next-generation breeding.
Kate Lang: I appreciate the question. The path to a top 3 position by 2030 to 2032 is not a path of outscaling the incumbents on conventional terms. It is a path of competing on biotechnology credentials in the Chinese seed industry that, in my view, is entering a decade of consolidation that rewards biotechnology-credentialed players. Hi3 corn haploid induction gene editing, recognized by the Chinese Academy of Agricultural Sciences in December 2025 as one of the top 10 major progresses in Chinese agricultural science.
Speaker #4: It is a path of competing on biotechnology credentials. In the Chinese seed industry, that, in my view, is entering a decade of consolidation that rewards biotechnology-credentialed players.
Speaker #4: HI3 corn haploid induction gene editing was recognized by the Chinese Academy of Agricultural Sciences in December 2025 as one of the top 10 major progresses in Chinese agricultural science.
Speaker #4: The Xunfeng Biotech patent license brings CUS-SF01 into our editing toolkit. In-house AI-assisted breeding is running against more than 200,000 germplasm resources. Two crop seed production and operation licenses, GMO business scope at Beijing origin, the BBL 2-2 biosafety certificate—this is a biotechnology stack that the conventional scale incumbents cannot easily match.
Kate Lang: The Shunfeng BioTech patent license brings Cas-SF01 into our editing toolkit. In-house AI-assisted breeding is running against more than 200,000 germplasm resources. 2 crop seed production and operation license, GMO business scope at Beijing Origin, the BBL2-2 biosafety certificate. That is a biotechnology stack that the conventional scale incumbents cannot easily match. Because it is the product of a sustained, focused 20-year investment in next-generation breeding. Over the next decade, I believe the market will increasingly value biotechnology credentials, and Origin is well-positioned for that.
Speaker #4: Because it is the product of a sustained, focused 20-year investment in next-generation breeding. Over the next decade, I believe the market will increasingly value biotechnology credentials, and Origin is well-positioned for that.
Kate Lang: Over the next decade, I believe the market will increasingly value biotechnology credentials, and Origin is well-positioned for that.
Speaker #3: And onto our last question. You have referenced AI-assisted breeding on prior calls and in press releases. Can you describe what that means operationally, what specific tasks are being run on AI, and whether there is a measurable improvement in breeding cycle time, trait identification, or hit rate that you can point to?
Matthew Abenante: Onto our last question. You have referenced AI-assisted breeding on prior calls and in press releases. Can you describe what that means operationally? What specific tasks are being run on AI? What is there a measurable improvement in breeding cycle time, trait identification, or hit rate that you can point to?
Matthew Abenante: Onto our last question. You have referenced AI-assisted breeding on prior calls and in press releases. Can you describe what that means operationally? What specific tasks are being run on AI? What is there a measurable improvement in breeding cycle time, trait identification, or hit rate that you can point to?
Speaker #4: It is a fair question. And I want to answer it concretely, because I know that AI can be an overused term in our industry and in the broader market.
Kate Lang: It is a fair question, and I want to answer it concretely because I know that AI can be an overused term in our industry and in the broader market. What we are running operationally is principally three things. First, genomic selection models that score potential crosses against the trait targets we are pursuing, yield, drought tolerance, leaf angle, lodging resistance, and root growth. Using our germplasm database of more than 200,000 core resources, the model identifies the highest probability candidates before we commit field seeding capacity to evaluate them. Second, image-based phenotyping in our research stations that captures plant performance data at a density and consistency that manual evaluation cannot match, and then feeds that data back into the selection models.
Kate Lang: It is a fair question, and I want to answer it concretely because I know that AI can be an overused term in our industry and in the broader market. What we are running operationally is principally three things. First, genomic selection models that score potential crosses against the trait targets we are pursuing, yield, drought tolerance, leaf angle, lodging resistance, and root growth.
Speaker #4: What we are running operationally is principally three things. First, the genomic selection models. That score potential crosses against the treated targets we are pursuing.
Speaker #4: Yield, drop tolerance, leaf angle, low gene resistance, and growth spheroid. Using our germplasm database of more than 200,000 corn resources, the model identifies the highest probability candidates before we commit field seeding capacity to evaluate them.
Kate Lang: Using our germplasm database of more than 200,000 core resources, the model identifies the highest probability candidates before we commit field seeding capacity to evaluate them. Second, image-based phenotyping in our research stations that captures plant performance data at a density and consistency that manual evaluation cannot match, and then feeds that data back into the selection models.
Speaker #4: Second, image-based phenotyping in our research stations. That captures plant performance data at a density and consistency that manual evaluation cannot match. And we fit that data back into the selection models.
Kate Lang: Third, prediction of optimal donor-recipient pairings for the Hi3 and Shunfeng licensed gene editing pipeline, which is where AI has the most direct impact on the speed of our biotechnology platform. The operational outcome we are working toward and beginning to see is a reduction in the number of field seedings required to validate a candidate variety. That translates into lower R&D cost per validated trait and a faster commercialization path.
Kate Lang: Third, prediction of optimal donor-recipient pairings for the Hi3 and Shunfeng licensed gene editing pipeline, which is where AI has the most direct impact on the speed of our biotechnology platform. The operational outcome we are working toward and beginning to see is a reduction in the number of field seedings required to validate a candidate variety. That translates into lower R&D cost per validated trait and a faster commercialization path.
Speaker #4: Third, prediction of optimal donor-recipient pairings for the HI3 and Xunfeng licensed gene editing pipeline, which is where AI has the most direct impact on the speed of our biotechnology platform.
Speaker #4: The operational outcome we are working toward, and beginning to see, is a reduction in the number of field seedings required to validate a candidate variety.
Speaker #4: That translates into lower R&D cost per validated trait and a faster commercialization path.
Speaker #3: Thank you again to everyone for participating in today's call. We look forward to providing additional updates in the near future. Goodbye.
Matthew Abenante: Thank you again to everyone for participating in today's call. We look forward to providing additional updates in the near future. Goodbye.
Matthew Abenante: Thank you again to everyone for participating in today's call. We look forward to providing additional updates in the near future. Goodbye.
Operator 2: We'd like to thank everybody for their participation on today's conference call. We appreciate your time and participation. You may now disconnect.
Operator: We'd like to thank everybody for their participation on today's conference call. We appreciate your time and participation. You may now disconnect.
