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Origin Agritech Limited Reports Unaudited Financial Results For Six Months Ended March 31, 2019
PR NewswireJuly 16, 2019
BEIJING, July 16, 2019 /PRNewswire/ -- Origin Agritech Limited (NASDAQ GS: SEED) ("Origin" or the "Company"), an agriculture technology and rural e-commerce company in China, today announced its unaudited financial results for the first half of FY2019 ended March 31, 2019. Origin prepares its financial statements in accordance with United States generally accepted accounting principles ("GAAP").
FINANCIAL RESULTS OVERVIEW
The Company reported net revenue of RMB82.2 million (US$12.2 million) during the first half year of FY2019, compared to RMB3.6 million for the first half year of FY2018. The cancellation of the second closing of the seed business sales announced in July, 2018 means that the company is now back to the commercial corn seed business. This seed business reported the total gross profit of RMB19.0 million (US$2.8 million) for the first half of FY2019.
Total operating expenses for the first half year of FY2019 was RMB18.1 million (US$2.7 million), down 57% from RMB42.0 million for the same period a year ago. The decrease was mainly due to the turnaround effort over the last year, especially in the general and administrative expenses. Selling and marketing expense for the first half year of FY2019 was RMB2.5 million (US$0.4 million), compared to RMB0.7 million a year ago as the result of the Company's returning to the seed business. General and administrative expenses declined 70% to RMB8.4 million (US$1.3 million), down from RMB28.2 million a year ago. The significant decline in G&A expenses resulted from the efforts to turn around the business through strategic redirection and organization restructuring. Research and development expenses for the first half year of FY2019 was RMB7.1 million (US$1.0 million), down from RMB13.1 million a year ago as we have been refocusing our R&D efforts during our turnaround effort.
Total operating income for the first half year of FY2019 was RMB0.9 million (US$0.1 million), a significant turnaround from the operating loss of RMB42.8 million reported a year ago.
Interest expense was RMB2.3 million (US$0.3 million) during the first half year of FY2019, down from RMB4.1 million a year ago. Other income of RMB2.3 million (US$0.3 million) was mainly the rentals the Company received. The Company rents out portion of its headquarters building. The other income of RMB18.4 million reported for the first half year of FY2018 includes mainly the gain from an asset sales, government subsidies, and the office rental income.
Net income attributable to the Company for the first half year of FY2019 was RMB1.2 million (US$0.2 million), compared to the net loss of RMB25.3 million, representing a significant turnaround, especially in the operating expenses control as well as the gross profit from the seed business.
Diluted earnings per share for the first half of FY2019 was RMB0.30 (or US$0.044), compared to the loss per share of RMB10.18 during the same period a year ago.
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