Origin Agritech Limited (NASDAQ: 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, 2011. Origin prepares its financial statements in accordance with generally accepted accounting principles (GAAP) of the United States.
FINANCIAL RESULTS OVERVIEW
During the third quarter of fiscal 2011, the Company generated revenues of RMB244.7 million (US$37.4 million), compared with RMB462.2 million (US$68.1 million) generated in the three months ended June 30, 2010. The goods already sold and delivered to customers can be seen as Deferred Revenue line on the balance sheet and the Advances from Customers records the advance cash receipts from customers this selling season. The lower amount of revenues this quarter is in part due to a later application of the distributor discount this 2011 selling season resulting in a later recognition of revenue this year.
Gross profit for the three months ended June 30, 2011 was RMB85.8 million (US$13.1 million) compared to RMB190.9 million (US$28.1 million) in the same period of the prior year.
Total net operating expenses for the three months ended June 30, 2011 were RMB51.8 million (US$7.9 million) compared with RMB37.5 million (US$5.5 million) reported for the same period in 2010. Selling and marketing expenses were RMB12.6 million (US$1.9 million) for the third quarter of 2011, compared with RMB9.4 million (US$1.4 million) for the same period of the last year. General and administrative (“G&A”) expenses of RMB23.8 million (US$3.6 million) for the third quarter ended June 30, 2011, compared with RMB17.6 million (US$2.6 million) for the same period one year ago. Research and development (“R&D”) expenses increased by 46.4% to RMB15.5 million (US$2.4 million) for the three months ended June 30, 2011 from RMB10.6 million (US$1.6 million) for the same quarter last year. The increase in operational expenses, spread throughout the three sub-categories, was in part due RMB15.6 million (US$2.35 million) in bonus charges and staff benefits from Changrong awarded in this current quarter which usually occur in the fourth quarter.