Exhibit 99.1

 

Origin Agritech Limited (“Origin” or the “Company”), an agriculture technology company in China, is filing its unaudited financial results for the first half of FY2026 ended March 31, 2026, prepared in accordance with United States Generally Accepted Accounting Principles (US GAAP).

 

FINANCIAL RESULTS OVERVIEW

 

The Company reported net revenue of RMB49.2 million (US$7.1 million) during the first half year of FY2026, compared to RMB72.3 million for the first half year of FY2025. The decrease was primarily due to the strategic transition in the Company's product portfolio as we’re focusing more on the sales of new corn seed products and reducing the external seed tolling service.

 

Total operating expenses for the first half year of FY2026 were RMB18.4 million (US$2.7 million), down 44% from RMB32.8 million for the same period a year ago. The decrease was mainly from the drop in general and administrative expenses. Selling and marketing expenses for the first half year of FY2026 were RMB5.1 million (US$0.7 million), compared to RMB2.6 million a year ago, an increase of 93%. The increase in selling and marking expense is attributed to the expansion of sales personnel and the intensified marketing and promotion efforts for new products. General and administrative expenses decreased 70% to RMB7.6 million (US$1.1 million), down from RMB25.0 million a year ago. Research and development expenses for the first half year of FY2026 were RMB5.7 million (US$0.8 million), up 11% from RMB5.2 million a year ago. Research and development expenses increased due to the development of new proprietary products.

 

Total operating loss for the first half year of FY2026 was RMB12.9 million (US$1.9 million), compared to total operating income of RMB24.7 million reported a year ago, an improvement of 47.8%. The decline in total operating loss was mainly due to the drop in total operating expenses.

 

The interest expense during the first half year of FY2026 was RMB1.6 million (US$0.2 million), compared to interest expense of RMB0.5 million reported a year ago. The increase is mainly attributable to a higher amount of borrowed funds.

 

Net loss attributable to the Company for the first half year of FY2026 was recorded at RMB14.4 million (US$2.1 million), compared to the net loss of RMB25.6 million a year ago. The decline in the net loss was due to the drop in general and administrative expenses.

 

Net loss per ordinary share for the first half of FY2026 was RMB1.21 (or US$0.17), compared to the net loss per share of RMB3.55 during the same period a year ago.

 

Balance Sheet

 

As of March 31, 2026, cash and cash equivalents were RMB13.4 million (US$1.9 million), a decrease of RMB2.5 million from the cash and cash equivalents of RMB15.9 million as of September 30, 2025.

 

As of March 31, 2026, total liabilities were RMB168.1 million, in which total current liabilities were RMB155.6 million (US$22.5 million) and long term liabilities were RMB12.5 million.

 

As of March 31, 2026, total assets were RMB92.6 million (US$13.4 million), in which total current assets were RMB60.8 million (US$8.8 million), and non-current assets were RMB31.7 million (US$4.6 million).

 

 

 

 

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (UNAUDITED)

 

       Six Months Ended March 31, 
       2025   2026   2026 
       RMB'000   RMB'000   USD'000 
   Notes   (Unaudited)   (Unaudited)   (Unaudited) 
Revenues       72,341    49,235    7,116 
Cost of revenues       (64,240)   (43,728)   (6,320)
Gross profit       8,101    5,507    796 
                    
Operating expenses:                   
Selling and marketing       (2,640)   (5,103)   (737)
General and administrative       (24,978)   (7,553)   (1,092)
Research and development       (5,153)   (5,726)   (828)
Total operating expenses, net       (32,771)   (18,382)   (2,657)
                    
Loss from operations       (24,670)   (12,875)   (1,861)
Interest expense, net       (461)   (1,614)   (233)
Other non-operating income, net       328    81    12 
Income before income taxes from operations       (24,803)   (14,408)   (2,082)
                    
Income tax expense  1    (34)   (30)   (4)
Net loss       (24,837)   (14,438)   (2,086)
Less: Net income (loss) attributable to non-controlling interests       747    (59)   (9)
Net loss attributable to Origin Agritech Ltd.       (25,584)   (14,379)   (2,077)
                    
Other comprehensive loss:                   
Net loss       (24,837)   (14,438)   (2,086)
Foreign currency translation difference       (295)   60    9 
Comprehensive loss       (25,132)   (14,378)   (2,077)
Less: Comprehensive income (loss) attributable to non-controlling interests       747    (59)   (9)
Comprehensive loss attributable to Origin       (25,879)   (14,319)   (2,068)
                    
Basic and diluted net loss per share attributable to Origin Agritech Limited  2    (3.55)   (1.21)   (0.17)
Shares used in calculating basic and diluted net loss per share       7,198,422    11,924,349    11,924,349 

 

 

 

 

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)

 

       3/31/2025   9/30/2025   3/31/2026 
       RMB'000   RMB'000   RMB'000   US$'000 
   Notes   (Unaudited)   (Audited)   (Unaudited)   (Unaudited) 
Assets                        
Current assets:                        
Cash and cash equivalents       2,400    15,875    13,370    1,932 
Restricted cash       -    27    2    - 
Accounts receivable       5,790    3,451    4,739    685 
Due from related parties  3    8,018    10,106    3,937    569 
Advances to suppliers  4    35,015    21,511    11,367    1,643 
Inventories  5    9,320    14,433    24,801    3,584 
Other current assets  6    1,717    673    2,615    378 
Total current assets       62,260    66,076    60,831    8,791 
Plant and equipment, net  7    23,023    28,819    28,865    4,172 
Acquired intangible assets, net       1,662    2,077    2,419    350 
Lease Asset       128    3,675    457    66 
Other assets       1,638    -    -    - 
Total assets       88,711    100,647    92,572    13,379 
                         
Liabilities, minority interests and shareholders’equity                        
Current liabilities:                        
Borrowings  8    4,950    7,950    9,450    1,366 
Accounts payable       9,795    12,056    14,072    2,034 
Due to related parties  3    24,612    25,766    26,098    3,772 
Contract liabilities       43,212    46,837    38,569    5,574 
Income tax payable       764    435    435    63 
Lease Liability - current       63    303    17    2 
Other payables and accrued expenses  9    62,266    55,985    66,977    9,679 
Total current liabilities       145,662    149,332    155,618    22,490 
Lease Liability - noncurrent       65    2,341    -    - 
Other long-term liability  10    5,632    10,490    12,468    1,802 
Total liabilities       151,359    162,163    168,086    24,292 
                         
Shareholders’ deficit:                        
Additional paid-in capital       604,524    638,326    638,326    92,252 
Retained deficit       (606,438)   (634,182)   (648,561)   (93,731)
Treasury stock at cost (20,523 and 14,986 shares as of March 31, 2025 and 2026, respectively)       (6,133)   (4,461)   (4,461)   (645)
Accumulated other comprehensive loss       (23,111)   (23,019)   (22,959)   (3,318)
Total shareholders’ deficit       (31,158)   (23,336)   (37,655)   (5,442)
Non-controlling interest       (31,490)   (38,180)   (37,859)   (5,471)
Total equity deficit       (62,648)   (61,516)   (75,514)   (10,913)
                         
Total liabilities and deficit       88,711    100,647    92,572    13,379 

 

 

 

 

CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ DEFICIT (UNAUDITED)

 

   Equity attributable to Origin Agritech Limited 
                   Accumulated             
           Additional       Other       Non-     
           Paid-in   Accumulated   Comprehensive   Treasury   controlling   Total 
   Common stock   Capital   Deficit   Loss   Stock   Interests   Equity 
   Shares*   Amount       Unrestricted                 
       RMB   RMB’000   RMB’000   RMB’000   RMB’000   RMB’000   RMB’000 
Balance as of September 30, 2024   6,561,107    -    578,512    (580,854)   (22,816)   (6,133)   (27,308)   (58,599)
Net loss for the year   -    -         (25,584)   -    -    747    (24,837)
Share-based compensation expense   -    -    7,415    -    -    -         7,415 
Business disposal   -    -         -    -    -    (4,629)   (4,629)
Dividend   -    -         -    -    -    (300)   (300)
Issuance of common shares   1,055,000    -    18,597    -    -    -    -    18,597 
Translation adjustments   -    -         -    (295)   -    -    (295)
Balance as of March 31, 2025   7,616,107         604,524    (606,438)   (23,111)   (6,133)   (31,490)   (62,648)
                                         
Balance as of September 30, 2025   11,924,349    -    638,326    (634,182)   (23,019)   (4,461))   (38,180))   (61,516)
Net loss for the year   -    -         (14,379)   -    -    (59)   (14,438)
Capital contribution   -    -    -    -         -    380    380 
Translation adjustments   -    -         -    60    -    -    60 
Balance as of March 31, 2026   11,924,349         638,326    (648,561)   (22,959)   (4,461)   (37,859)   (75,514)
In US$ @   6.9194         92,252    (93,731)   (3,318)   (645)   (5,471)   (10,913)

 

 

 

 

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

 

   Six Months Ended March 31, 
   2025   2026 
   RMB'000   RMB'000 
   (Unaudited)   (Unaudited) 
Operating activities   (11,773)   (1,816)
           
Investing activities:          
Purchase of plant and equipment   (4,142)   (1,259)
Net cash used in investing activities   (4,142)   (1,259)
           
Financing activities:          
Proceeds from issuance of common stock   10,550    - 
Proceeds from due to related parties   -    262 
Repayment of due to related parties   (15)   (132)
Dividends paid to minority shareholders   (300)   - 
Capital contribution   -    380 
Net cash provided by financing activities   10,235    510 
Net decrease in cash and cash equivalents   (5,680)   (2,565)
Cash and cash equivalents, beginning of year   8,375    15,875 
Effect of exchange rate changes on cash and cash equivalents   (295)   60 
Restricted cash   -    (25)
Cash and cash equivalents, end of the year   2,400    13,370 

 

 

 

 

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

 

1. INCOME TAXES

 

Origin Agritech and its subsidiaries, State Harvest and Origin BioScience are incorporated in the British Virgin Islands and are exempted from income tax under the laws of the British Virgin Islands. State Harvest’s subsidiaries and State Harvest’s variable interest entity, Hainan Aoyu, and its majority-owned subsidiaries (together, the “PRC entities”) were incorporated in the PRC and are governed by the PRC laws.

 

The applicable tax rates of the PRC Enterprise Income Tax (“EIT”) was changed from 33% to 25% on January 1, 2008, according to the Corporate Income Tax Law. The preferential tax rate previously enjoyed by the PRC entities was gradually transitioned to the new standard rate of 25% over a five-year transitional period. In addition, article 28 of the new tax law states that the income tax rate of a “high technology” company (high-tech status) will remain at 15%. Currently, the applicable tax rate applying on Origin Group Companies in PRC is mainly at 25%, whilst our Xingjiang operational company enjoys 15% preferential tax rate.

 

The Company’s liability for income taxes includes the liability for unrecognized tax benefits, interest, and penalties related to tax years, which are still subject to review by taxing authorities. Audit periods remain open for review until the statute of limitations has passed. The completion of review or the expiration of the statute of limitations for a given audit period could result in an adjustment to the Company’s liability for income taxes. Any such adjustment could be material to the Company’s results of operations for any given quarterly or annual period based, in part, upon the results of operations for the given period. Until March 31, 2026, the management considered that the Company had no uncertain tax positions affecting its consolidated financial position. The Company’s uncertain tax positions are related to tax years that remain subject to examination by the relevant tax authorities and the major one is the China tax authority. The open tax years for examinations in China are 5 years.

 

The current and deferred components of income tax expense are as follows:

 

   Six months ended
March 31,
 
   2025   2026 
   RMB'000   RMB'000 
   (Unaudited)   (Unaudited) 
Current income tax expense   34    30 
Deferred income tax benefit   -    - 
Total   34    30 

 

 

 

 

2. INCOME/(LOSS) PER SHARE

 

The following table sets forth the computation of basic and diluted loss per share for the years indicated:

 

   Six months ended 
   March 31, 
   2025   2026 
   RMB'000   RMB'000 
   (Unaudited)   (Unaudited) 
Numerator:          
Net loss attributable to Origin Agritech Limited   (25,584)   (14,379)
           
Denominator:          
Average number of ordinary shares outstanding - basic and Diluted   7,198,422    11,924,349 
           
Basic and Diluted Per Share Data:          
Basic and diluted loss per share attributable to Origin Agritech Limited:   (3.55)   (1.21)

 

For the six months ended March 31, 2025 and 2026, the effect of the outstanding options was anti-dilutive.

 

3. RELATED PARTY BALANCES AND TRANSACTIONS (In RMB’000)

 

(1) Related party relationships

 

Name of related parties  Relationship
Beijing Shihui(i)  Being owned by close family members of the Company’s Chairman
Linze Origin Seeds Ltd.(i)  Being owned by close family members of the Company’s Chairman
Henan Yingde Agricultural Ltd.  Being owned by close family members of the Company’s Chairman
Beijing Liantaide Biotechnology Co., Ltd.  Being owned by close family members of the Company’s Chairman
Shareholders  Non-controlling shareholders of Hubei Aoyu, Anhui Aoyu,Anhui Agriculture, Xuzhou, Agriculture, Shandong Aoruixinong, Henan Aoyu, Hubei Agriculture

 

 

 

 

(1) Due from related parties, net of allowance for credit loss

 

   September 30,   March 31, 
   2025   2026 
   RMB'000   RMB'000 
   (Audited)   (Unaudited) 
Linze Origin Seeds Ltd   45    45 
Beijing Shihui   17,140    17,140 
Shareholders (i)   2,535    3,017 
      Companies controlled by the Company’s directors   7,570    920 
The Close family of the Company’s Chairman   6    5 
Total   27,296    21,127 
Allowance for credit loss   17,190    17,190 
Due from related parties, net   10,106    3,937 

 

Note (i): As of March 31, 2026, due from shareholders was RMB3.0 million, which related to the sales of seeds amounting to RMB1.3 million and advances for business use purpose amounting to RMB1.7 million.

 

(2) Due to related parties

 

   September 30,   March 31, 
   2025   2026 
   RMB'000   RMB’000 
   (Audited)   (Unaudited) 
Shareholders (i) (ii)   12,058    13,917 
The Company’s Chairman   6,914    6,737 
YingDe (i)   5,870    4,520 
Beijing Liantaide   647    647 
Chief Executive Officer   200    200 
The close family of the Company’s Chairman   77    77 
    25,766    26,098 

 

 

 

Note (i): In the ordinary course of business, the Company purchases raw materials from and sells products to related parties, and related parties also provide cash payments to fund the Company’s operations.

 

Note (ii): As of March 31, 2026, the balances due to shareholders were RMB13.9 million, of which in relation to the borrowings in nature amounted to RMB6.2 million, which were unsecured, interest-bearing, and repayable on demand; accrued interests costs amounted to RMB1.1 million, and advances in relation to the Sales of seeds amounted to RMB6.6 million.

 

 

 

 

(3) Transactions with related parties

 

(a) Sales to

 

   Six months ended 
   March 31, 
   2025   2026 
   RMB’000   RMB’000 
   (Unaudited)   (Unaudited) 
Shareholders (Note i)       1,632 
        1,632 

 

Note(i): Sales related to shareholders were RMB-nil- million and RMB1.63 for six months ended March 31, 2025 and 2026, respectively, the selling prices of transaction are referenced to market prices.

 

(b) Purchase from

 

   Six months ended 
   March 31, 
   2025   2026 
   RMB’000   RMB’000 
   (Unaudited)   (Unaudited) 
Liantaide   2,656     
    2,656     

 

(c) Borrowing

 

   Six months ended 
   March 31, 
   2025   2026 
   RMB’000   RMB’000 
   (Unaudited)   (Unaudited) 
Shareholders (Note i)       262 
        262 

 

Note (i) : The borrowing interest rates are between 4.5% and 6% and repayable on demand.

 

(d) Interest accrual

 

   Six months ended 
   March 31, 
   2025   2026 
   RMB’000   RMB’000 
   (Unaudited)   (Unaudited) 
Shareholders   74    132 
    74    132 

 

 

 

 

4. ADVANCES TO SUPPLIERS

 

   September 30,   March 31, 
   2025   2026 
   RMB’000   RMB’000 
   (Audited)   (Unaudited) 
Prepayments for purchasing seed   19,003    6,111 
Prepayments for purchasing packaging   654    148 
Deposits for research and development fee   1,127    3,612 
Prepayments for professional fee   347    - 
Prepayments for advertising fee   -    174 
Others   380    1,322 
    21,511    11,367 

 

5. INVENTORIES

 

Total inventories were RMB 24.8 million as of March 31, 2026, up 72% from RMB14.4 million for the period ended September 30, 2025. As of September 30, 2025, inventories were comprised of raw materials of RMB 0.7 million, finished goods of RMB 0.6 million, work in progress of RMB 17.2 million and a provision of RMB 4.1 million. As of March 31, 2026, inventories were comprised of raw materials of RMB 0.3 million, finished goods of RMB 14.2 million, work in progress of RMB 14.4 million and a provision of RMB 4.1 million.

 

   September 30,   March 31, 
   2025   2026 
   RMB’000   RMB’000 
   (Audited)   (Unaudited) 
Raw materials   725    296 
Finished goods   608    14,218 
Work in progress   17,200    14,387 
Provision   (4,100)   (4,100)
    14,433    24,801 

 

6. OTHER CURRENT ASSETS

 

   September 30,   March 31, 
   2025   2026 
   RMB’000   RMB’000 
   (Audited)   (Unaudited) 
Advances to staff for business use   405    426 
Deposits for rental   13    - 
Value-added tax credit refund   -    557 
Receivables from third parties   18    1,500 
Others   237    132 
    673    2,615 

 

7. PLANT AND EQUIPMENT, NET

 

During the six months ended March 31, 2025 and 2026, the Group acquired assets at a cost of RMB 4,757 and RMB 1,259, respectively. No assets were disposed of by the Group during the six months ended March 31, 2025 and 2026.

 

No impairment loss was recognized for the six months ended March 31, 2025 and 2026.

 

 

 

 

9. BORROWINGS

 

Borrowings consisted of the following:

 

   September 30,   March 31, 
   2025   2026 
   RMB’000   RMB’000 
   (Audited)   (Unaudited) 
Borrowing from Agricultural Bank of China under Xinjiang Origin, due on September 22, 2026 with annual interest rate of 3.0%, secured by Xinjiang Origin’s properties and land use right   4,950    4,950 
Borrowing from Industrial and Commercial Bank of China under Xinjiang Origin, due on July 25, 2026 with annual interest rate of 3.3%, secured by Xinjiang Origin’s properties and land use right   3,000    3,000 
Borrowing from Beijing Rural Commercial Bank under Beijing Agritech, due on December 29, 2026 with annual interest rate of 2.8%, belongs to a credit loan        1,500 
Short-term borrowings   7,950    9,450 

 

10. OTHER PAYABLES AND ACCRUED EXPENSES

 

Other payables and accrued expenses consist of:

 

   September 30,   March 31, 
   2025   2026 
   RMB’000   RMB’000 
   (Audited)   (Unaudited) 
Payables for the purchase of plant and equipment   823    1,309 
Professional fees payable   5,102    800 
Salaries and bonuses payable   8,863    8,427 
Accrued interest expenses   852    269 
Deferred government subsidies   363    363 
Payables for penalty   5,282    3,000 
Payables for third party (i)   18,833    17,484 
Borrowings from a third party (i)   15,537    19,651 
Stock issuance and options       14,584 
Others   330    1,090 
    55,985    66,977 

 

Note (i) : Payables and borrowings from third parties were RMB37.1 million and RMB34.4 million as of March 31, 2026 and September 30, 2025, respectively.

 

11. OTHER LONG-TERM LIABILITY

 

For the six months ended March 31, 2026 and September 30, 2025, the Company received subsidies of RMB2.16 million and-nil- million from the local PRC government on equipment projects. The non-current portion of such government subsidies were recorded as a long-term liability, which would be amortized over the estimated useful lives in relation to the plant & equipment and land use right.

 

12. COMMITMENTS AND CONTINGENCIES

 

Legal proceeding

 

Hebei Zhaoyu Breeding Industry Group Co., Ltd. believed that the corn seed Liyu 16 sold by Hubei Aoyu infringed its plant new variety rights of corn seed Liyu 88. In April 2024, the Intermediate People’s Court of Lanzhou City, Gansu Province, judged that Hubei Aoyu had infringed the product, and the Hubei Aoyu was required to pay RMB 3 million of economic losses. Hubei Aoyu has applied for a second trial to the Intellectual Property Court of the Supreme People’s Court in August 2024, and the second trial has not yet been held, and the Company has accrued liabilities of RMB 3 million.

 

Other obligations

 

On February 1, 2026, the Company entered into three Securities Purchase Agreements with two individual investors and one investment company to sell 2,000,000 ordinary shares for a total gross subscription amount of US$2.8 million,to be paid in two installments. The first installment of US$2.1 million was paid in February 2026, and the second installment is due in August 2026. As of May 21, 2026, the 2,000,000 ordinary shares have not yet been issued.