BEIJING, July 11, 2024 /PRNewswire/ -- Origin Agritech
Ltd. (NASDAQ: SEED) (the "Company" or "Origin"), a leading Chinese
agricultural technology company, provided a business update from
Dr. Gengchen Han, Chairman and CEO of Origin Agritech.
Dear Shareholders,
We are pleased to provide you with an update on our recent
developments, including our progress in GMO commercialization, the
performance of our commercial hybrids, and advancements in our gene
editing business.
GMO Commercialization Developments
Recently, Origin
Agritech achieved a significant milestone by obtaining China's GMO safety certificate for our
transgenic maize, BBL2-2. This maize GMO event, developed in
collaboration with the Biotechnology Institute of the Chinese
Academy of Agricultural Sciences, exemplifies our commitment to
innovation and sustainable agricultural practices. The BBL2-2 maize
event is engineered with two insect-resistant genes, Cry1Ab and
Cry3b, and one herbicide-tolerance gene, Cp4-epsps. These genetic
traits provide robust protection against various pests, including
corn borer, cotton bollworm, armyworm, and Firefly bimaculata,
making it the only maize variant in China resistant to coleopteran pests.
We are also progressing with several hybrids incorporating these
traits, which are entering GMO variety registration trials. We
expect these hybrids to be approved within 1-2 years, with one
hybrid poised to pass the trial and be ready for commercial
production in the next growing season. We will accelerate the seed
production and sales process over the next 6-12 months to meet
market demand.
Commercial Hybrid Performance
At Origin Agritech, we
have always focused on developing hybrid crops that deliver
superior yield, resilience, and sustainability. Our latest
commercial hybrids have performed exceptionally well in field
trials and commercial plantings, demonstrating significant
advantages over traditional varieties. These hybrids are engineered
to thrive under high-density planting conditions, which are crucial
for maximizing yield per acre. By optimizing plant architecture,
including improved leaf angles and root structures, our hybrids
allow for higher planting density without sacrificing plant health
or productivity.
One of our standout performers is the new corn hybrid, OY728,
which has shown excellent results in various planting environments.
Its robust growth and high yield potential have made it a preferred
choice for farmers looking to increase their productivity and
profitability. The improved version of OY728 will be in production
and sales in 2025. Additionally, our NEC hybrids have also
performed well in large-scale demo plots, offering superior yield
and nutritional value. Extensive field demonstrations and seed
production trials across various regions have showcased the
performance of our hybrids, receiving overwhelmingly positive
feedback from farmers who report higher yields and better crop
health compared to previous plantings.
Gene Editing Business Progress
Our gene editing
business is a testament to our commitment to developing
next-generation solutions that enhance crop productivity,
resilience, and sustainability. Through precise gene editing
techniques, we have achieved remarkable breakthroughs that are
transforming the agricultural landscape. One of our most notable
achievements is developing a high-yield corn inbred line. Over two
years of rigorous multilocational field trials, this gene-edited
line has demonstrated a yield increase of more than 50% compared to
the non-edited check inbred. This leap in productivity addresses
global food security challenges and sets a new standard for crop
efficiency.
In addition to increased yields, our gene-edited crops offer
significant cost reductions in hybrid seed production. By enhancing
specific genetic traits, we can create more productive and
cost-effective crops for farmers to grow. Another groundbreaking
development is establishing the world's first induction line
genetic transformation system. This innovative system allows us to
quickly and accurately edit major maize inbred lines with diverse
genetic backgrounds. It breaks the technical barrier of improving
maize inbred lines through gene editing, enabling us to enhance
crop traits within just one year.
We have developed various gene editing platforms to precisely
improve commercial hybrids, including optimizing plant architecture
to increase planting density, drought tolerance, disease
resistance, and other characteristics. The gene-edited high-yield
inbreds and related hybrids are currently in production trials and
demo plots this season, with the gene-edited plant architecture
hybrids soon to enter commercial production.
At Origin Agritech, we aim to address global food security
challenges by leveraging cutting-edge biotechnologies and promoting
sustainable farming practices. Our recent achievements in
commercial GMO hybrids and gene editing are a testament to our
relentless pursuit of excellence and our commitment to transforming
agriculture for the better. We are dedicated to providing farmers
with the best possible tools to succeed, pushing the boundaries of
what is possible in crop development to ensure unmatched
performance and sustainability.
Highlights of Questions Submitted from Investors:
Which product, or products, are the first to generate
near-term revenue?
Regarding our hybrid corn seed product
line, Origin's corn variety Aoyu 728 has rapid sales momentum. It's
predicted that the sales volume of Aoyu 728 alone will cover
over 1 million mu and generate about RMB40
million or close to $7 million
US dollars in revenue in the 2025 season.
For our GMO corn seed product line, Origin's GMO hybrid corn
seed variety Aoyu 64BF will complete the required experiments of
the national GMO trial later this year and is expected to start
small-scale seed production this winter. Demonstrations and sales
will begin next year.
NEC hybrids are another product that we believe will generate
significant revenue in 2025.
Since the GMO approval, have any other companies inquired
about partnering?
Yes, we've had several inquiries, but we
will discuss future partnerships as they progress.
When does the company plan to commercialize its newly
approved BBL2-2 GMO corn?
We received the GMO Bio-safety
certificate for BBL2-2 this May and will have 15 corn varieties
containing BBL2-2 available to participate in the National GMO
variety trials in 2025. The BBL2-2 version of OY728 could have
pilot seed production in 2025 and be ready for sale in 2026.
What is the approval status of the Company's variety
application for BFL4-2 GMO seeds? What is the timetable for
their approvals?
Origin's GMO corn variety Aoyu 64BF will
complete the national trials and is expected to receive the variety
approval certificate by the end of 2024. Ten more of Origin's corn
hybrids containing BFL4-2 will participate in the National GMO
variety trials. They should be approved in approximately 1-2
years.
What is the approval status of the safety certificate
application of drought-resistant GMO seed?
We will submit
the safety certificate application in November 2024.
Is the Company looking to commercialize, via licensing or
sale, the recently announced gene editing platform that utilizes
CRISPR to bring externally owned corn traits to market?
Yes,
we are entering a variety of different commercial pathways. We
intend to aggressively pursue the commercial strategy to deliver
the maximum value to our Company and its shareholders.
What is the number of MU/acres that we planted NEC in
Xinjiang this year? What is the expected revenue and profit for the
production of NEC corn this year?
The planting area of NEC
corn in Xinjiang has doubled, with a projected profit of between
RMB 2 to 5 million, or $350,000 to $950,000 US dollars.
Was construction of the corn drying and processing facility
completed in Xinjiang? Is it ready for use in this harvest season
of NEC corns?
The drying facility is in the final stages of
construction, and we anticipate it will be completed this
September.
Last year, it was said that " Muyuan has tested our NEC
hybrids in more than 15 locations in 2023. Potential collaborations
are currently under discussion." Do we have an update on the
progress?
Yes, Muyuan was satisfied with last year's testing
results, and have expanded testing to more locations and acreage
this year.
About Origin Agritech Limited
Origin Agritech Limited,
founded in 1997 and headquartered in Zhong-Guan-Cun (ZGC) Life
Science Park in Beijing, is a
leading Chinese agricultural technology company. In 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. For further information, please visit the
Company's website at www.originagritech.com. The Company also
maintains a Twitter account for updating investors on Company and
industry developments which
is https://x.com/origin_agritech.
For more information, please contact:
Origin Agritech
Limited Contact:
Kate Lang (Mandarin/English)
Director of Investor Relations
Phone: +86 186-1839-3368
Email: bing.lang@originseed.com.cn
Investor Relations Contact:
Matthew Abenante, IRC
President
Strategic Investor Relations, LLC
Tel: 347-947-2093
Email: matthew@strategic-ir.com
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SOURCE Origin Agritech Limited