UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

FORM 6-K

 

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16 OF

THE SECURITIES EXCHANGE ACT OF 1934

 

FOR THE MONTH OF August 2014

COMMISSION FILE NUMBER 000-51576

 

ORIGIN AGRITECH LIMITED

(Translation of registrant's name into English)

 

No. 21 Sheng Ming Yuan Road, Changping District, Beijing 102206

(Address of principal executive office)

 

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

 

Form 20-F x       Form 40-F ¨

 

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):        

 

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):        

 

Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

 

Yes ¨   No x

 

If "Yes" is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82-________.

 

 

 
 
 

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

ORIGIN AGRITECH LIMITED
     
  By: /s/ Gengchen Han
  Name: Gengchen Han
  Title: Chairman, President, and CEO
     
Date: August 3, 2014    

 

 

 

 
 

 

EXHIBIT

 

Exhibit Number   Description
     
99.1   Press release announcing the Q3 FY2014 Financial Results

 

 

Exhibit 99.1

 

Origin Agritech Limited Reports Unaudited Third Quarter Financial Results

For Three Months Ended June 30, 2014

 

BEIJING--/PRNewswire/--August 3, 2014--Origin Agritech Limited (NASDAQ GS: SEED) (“Origin”, or the “Company”), a technology-focused supplier of crop seeds in China, today announced unaudited financial results for the third quarter ended June 30, 2014. Origin prepares its financial statements in accordance with generally accepted accounting principles (GAAP) of the United States.

 

FINANCIAL RESULTS OVERVIEW

 

For the third quarter of fiscal 2014, the Company reported revenues of RMB92.9 million (US$15.1 million) compared with RMB128.3 million for the three months ended June 30, 2013. Lower revenues this quarter were mainly due to the lower sales volume of the rice seed business as the result of increasing competition.

 

Deferred revenues were RMB342.1 million (US$55.6 million) as of June 30, 2014 compared with RMB338.4 million on June 30, 2013. It is expected that the majority of deferred revenues will be recorded on the income statement in the fiscal fourth quarter of 2014. Deferred revenues mainly reflect the value of Origin’s crop seeds after: a) the sales arrangement is confirmed; b) delivery to the customer is made; and c) pre-payment from the customer is received, but before the final sales price is fixed and determined. The final sales price is primarily determined by sales incentives that Origin offers to its customers.

 

Gross profit for the third quarter of fiscal 2014 was RMB21.2 million (US$3.5 million) compared to RMB36.9 million in the third quarter of fiscal 2013. Gross margin for the third quarter of fiscal 2014 decreased to 22.9% from 28.7% for the same period of fiscal 2013 due to higher production cost and unfavorable product mix.

 

Total net operating expenses for the three months ended June 30, 2014 were RMB27.5million (US$4.5 million) compared with RMB28.4 million during the same quarter in fiscal 2013. Specifically, selling and marketing expenses were RMB10.5 million (US$1.7 million) for the third quarter of fiscal 2014 compared with RMB13.5 million a year ago. The decrease in selling expenses was mainly due to lower transportation expenses this quarter. General and administrative expenses were RMB10.6 million (US$1.7 million) compared with RMB13.6 million for the third quarter of fiscal 2013. The decrease was mainly due to the continued implementation of expense control measures. Research and development expenses were RMB8.8 million (US$1.4 million) in the third quarter of fiscal 2014, which was slightly down from RMB10.0 million for the same period last year.

 

Loss from operations for the third quarter of fiscal 2014 amounted to RMB6.3million (US$1.0 million) compared with profit of RMB8.4 million for the same quarter in fiscal 2013.

 

Net loss for the third quarter of fiscal 2014 was RMB14.7 million (US$2.4 million), or net loss per basic and diluted share of RMB0.65 (US$0.11), compared to a net profit of RMB6.1 million, or net profit per basic and diluted share of RMB0.26 in the same period one year ago.

 

BALANCE SHEET

 

As of June 30, 2014, cash and cash equivalents were RMB90.4 million (US$14.7 million) and shareholders' equity attributable to the Company was RMB175.2 million (US$28.5 million). The Company had short-term borrowings of RMB285million (US$46.3 million) and long-term borrowings of RMB64.8 million (US$10.5 million). Short-term borrowings were mainly for working capital, while long-term borrowings were mainly used for the Xinjiang Origin corn seed production facilities. Advances from customers were RMB209.9 million (US$34.1 million) as of June 30, 2014.

 

In June 2014, the Company disposed of the subsidiary, Kunfeng, for the amount of RMB 12 million (US$1.9 million), and the realized loss from this disposition was RMB 2.7million (US$0.4 million).

 

 
 
 

 

About Origin

 

Founded in 1997 and headquartered in Zhong-Guan-Cun (ZGC) Life Science Park in Beijing, Origin Agritech Limited (NASDAQ GS: SEED) is China's leading agricultural biotechnology company, specializing in crop seed breeding and genetic improvement, seed production, processing, distribution, and related technical services. Leading the development of crop seed biotechnologies, Origin Agritech's phytase corn was the first transgenic corn to receive the Bio-Safety Certificate from China's Ministry of Agriculture. Over the years, Origin has established a robust biotechnology seed pipeline including products with glyphosate tolerance and pest resistance (Bt) traits. Origin operates production centers, processing centers and breeding stations nationwide with sales centers located in key crop-planting regions. Product lines are vertically integrated for corn, rice and canola seeds. For further information, please log on to the Company's website at: www.originseed.com.cn.

 

Forward Looking Statement

 

This release contains forward-looking statements. All forward-looking statements included in this release are based on information available to us on the date hereof. These statements involve known and unknown risks, uncertainties and other factors, which may cause our actual results to differ materially from those implied by the forward-looking statements. In some cases, you can identify forward-looking statements by terminology such as "may," "will," "should," "could," "expects," "plans," "anticipates," "believes," "estimates," "predicts," "potential," "targets," "goals," "projects," "continue," or variations of such words, similar expressions, or the negative of these terms or other comparable terminology. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements. Therefore, actual results may differ materially and adversely from those expressed in any forward-looking statements. Neither we nor any other person can assume responsibility for the accuracy and completeness of forward-looking statements. Important factors that may cause actual results to differ from expectations include, but are not limited to, those risk factors discussed in Origin's filings with the SEC including its annual report on Form 20-F to be filed. We undertake no obligation to revise or update publicly any forward-looking statements for any reasons.

 

 
 
 

 

UNAUDITED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME

(In thousands, except share data)

 

   Three Months ended June 30, 
   2013   2014 
   RMB   RMB   USD 
             
Revenues   128,337    92,935    15,139 
Cost of revenues   (91,465)   (71,686)   (11,677)
Gross profit   36,872    21,249    3,462 
Operating expenses:               
Selling and marketing   (13,475)   (10,549)   (1,718)
General and administrative   (13,558)   (10,561)   (1,720)
Research and development   (10,028)   (8,778)   (1,430)
Other operating income, net   8,628    2,372    386 
Total operating expenses   (28,434)   (27,516)   (4,482)
                
Income (loss) from operations   8,438    (6,267)   (1,020)
                
Interest expense   (4,720)   (5,276)   (859)
Share of net loss of equity investment   (649)   (279)   (46)
Loss on liquidation of a subsidiary   -    (2,666)   (434)
Interest income   974    63    10 
Income (loss) before income taxes   4,043    (14,425)   (2,349)
Income tax expense               
Current   (972)   (677)   (110)
Deferred   -    -    - 
Income tax expense   (972)   (677)   (110)
                
Net Income (loss)   3,071    (15,102)   (2,459)
Less: Net loss attributable to the non-controlling interests   (3,054)   (432)   (70)
                
Net income (loss) attributable to Origin Agritech Limited   6,125    (14,670)   (2,389)
                
Other comprehensive income (loss)               
Net income (loss)   3,071    (15,102)   (2,459)
Foreign currency translation difference   891    12    2 
Comprehensive income (loss)   3,962    (15,090)   (2,457)
Less: Comprehensive loss attributable to non-controlling interests   (3,054)   (432)   (70)
Comprehensive income (loss) attributable to Origin Agritech Limited   7,016    (14,658)   (2,387)
                
Net loss per share – basic   0.26    (0.65)   (0.11)
Net loss per share – diluted   0.26    (0.65)   (0.11)
                
Shares used in calculating basic net loss per share   23,199,700    22,743,853    22,743,853 
Shares used in calculating diluted net loss per share   23,241,541    22,743,853    22,743,853

 

 
 

 

UNAUDITED CONSOLIDATED BALANCE SHEETS        
(In thousands, except share data)        
   6/30/2013   9/30/2013   6/30/2014   6/30/2014 
   RMB   RMB   RMB   US$ 
ASSETS                
Current Assets                
Cash and cash equivalents   131,999    131,978    90,398    14,692 
Accounts receivable   8,260    1,949    4,209    684 
Due from related parties   2,000    3,400    2,400    390 
Advances to suppliers   18,745    9,768    19,826    3,222 
Advances to growers   48,026    58,473    22,784    3,703 
Inventories   591,322    470,811    698,395    113,509 
Income tax recoverable   1,163    1,163    49    8 
Other current assets   7,146    7,000    5,111    831 
Total current assets   808,661    684,542    843,172    137,039 
Restricted cash   -    14,350    14,350    2,332 
Land use rights, net   31,739    33,205    31,071    5,050 
Plant and equipment, net   346,171    354,735    341,481    55,500 
Equity investments   21,594    24,894    21,119    3,432 
Goodwill   11,973    11,973    11,973    1,946 
Acquired intangible assets, net   24,343    23,117    25,236    4,102 
Deferred income tax assets   1,755    -    -    - 
Other assets   3,468    11,256    2,299    374 
Total assets   1,249,704    1,158,072    1,290,701    209,775 
LIABILITIES AND EQUITY                    
Current liabilities                    
Short-term borrowings   97,440    205,000    285,000    46,320 
Current portion of long-term borrowings   8,000    16,500    21,500    3,495 
Accounts payable   13,691    4,590    13,069    2,124 
Due to growers   7,605    37,875    16,665    2,709 
Due to related parties   16,766    1,530    16,230    2,638 
Advances from customers   337,382    371,571    209,897    34,114 
Deferred revenues   338,359    22,069    342,146    55,608 
Income tax payable   39,060    39,060    39,060    6,348 
Other payables and accrued expenses   46,501    53,783    52,928    8,602 
Total current liabilities   904,804    751,978    996,495    161,958 
Long-term borrowings   58,828    64,819    43,329    7,042 
Other long-term liability   20,805    21,030    19,468    3,164 
Total liabilities   984,437    837,827    1,059,292    172,164 
                     
Shareholders’ equity:                    
Preferred stock (no par value; 1,000,000 shares authorized, none issued)   -    -    -    - 
Common stock (no par value; 60,000,000 shares authorized,                    
24,016,163, 24,016,163 and 24,016,163 shares issued as of June 30, 2013, September 30, 2013 and June 30, 2014;                    
23,151,980, 22,905,926 and 22,738,541 shares outstanding as of                    
June 30, 2013, September 30, 2013 and June 30, 2014)   -    -    -    - 
Additional paid-in capital   399,188    399,564    400,606    65,110 
Accumulated deficit   (145,672)   (93,473)   (183,511)   (29,826)
Treasury stock at cost (864,183, 1,110,237 and 1,277,622 shares as of June 30, 2013, September 30, 2013 and June 30, 2014)   (33,314)   (35,659)   (37,445)   (6,086)
Accumulated other comprehensive loss   (4,699)   (4,390)   (4,450)   (722)
Total Origin Agritech Limited shareholders’ equity   215,503    266,042    175,200    28,476 
                     
Non-controlling interests   49,764    54,203    56,209    9,135 
Total equity   265,267    320,245    231,409    37,611 
                     
Total liabilities and equity   1,249,704    1,158,072    1,290,701    209,775 
                     

 

 
 

 

CONTACT:

Origin Agritech Limited

James Chen,

Chief Financial Officer

james.chen@originseed.com.cn

 

Kay Liu

Investor Relations

ke.liu@originseed.com.cn

+86 10 5890-7536