Origin Agritech Ltd., a company registered in the British Virgin Islands and engaged in distributing hybrid crop seeds in China, has reported its unaudited financial results for the nine month period ended September 30, 2006. These results reflect Company’s financials during the transitional period of January 1, 2006 to September 30, 2006, which resulted from the previously announced change in fiscal year end to September 30.
The results include, on a consolidated basis, the results of Denong Zhengcheng Seed Company, Ltd., in which Origin owned a 52.21% equity interest during that period. BVI company’s interest in Denong increased to approximately 95% effective October 2006.
Revenues for the period increased 151%, from $25.75 million in the same period of the previous year to $66.17 million this year. Other results include: the 51% rise of operating income, the amount of which made US$7.1 million, and the 118.6% rise of net income, to US$9.7 million.
Gross Profit for the nine month period ended September 30, 2006 increased to US$20.8 million, or 31.4% of revenues, compared to 39.3% of revenues in the same period 2005. Gross profit as a percentage of revenues declined because of the inclusion of Denong.
Total operating expenses for the nine month period increased by 141.57%, from US$5.52 million in the same period of 2005 to US$13.7 million, because of the inclusion of operating expenses in the amount of US$4.3million related to Denong. Net income was US$9.7 million, or US$0.38 per diluted share. Net loss from the acquisition of Denong made US$0.26 million during this period.
BVI company’s 2007 fiscal year started on October 1, 2006 and will end on September 30, 2007. Looking forward for the financial results of the full year 2007, the company said it expects revenues to be between $80 to $90 million.