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Origin Agritech Announces Long-Term Revenue Projections Across Key Product Lines Through 2029

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Origin Agritech (NASDAQ: SEED), a leading Chinese agricultural technology company, has announced its revenue projections for key product lines through 2029. The company expects significant growth, with total revenue projected to increase from ¥52,580,000 ($7,240,000) in 2022 to ¥958,747,000 ($132,019,000) by 2029. This growth is driven by three main product lines: hybrid seeds, NEC, and GMO.

The projections assume that China's GMO corn will account for 70% of the total corn planting area in 5 years, with Origin aiming for a 5% market share. GMO seeds are expected to contribute revenue starting in 2025, while GMO IP granting business is projected to begin in 2027. The company's CEO, Dr. Gengchen Han, expressed optimism about Origin's growth prospects and its role in addressing global food security challenges.

Origin Agritech (NASDAQ: SEED), una delle principali aziende cinesi nel settore della tecnologia agricola, ha annunciato le sue previsioni di fatturato per le linee di prodotto chiave fino al 2029. L'azienda prevede una crescita significativa, con un fatturato totale previsto che aumenterà da ¥52.580.000 ($7.240.000) nel 2022 a ¥958.747.000 ($132.019.000) entro il 2029. Questa crescita è sostenuta da tre linee di prodotto principali: seme ibridi, NEC e OGM.

Le previsioni assumono che il mais OGM in Cina rappresenterà il 70% della superficie totale destinata alla coltivazione di mais nei prossimi 5 anni, con Origin che mira a una quota di mercato del 5%. Si prevede che i semi OGM contribuiranno al fatturato a partire dal 2025, mentre l'attività di concessione delle proprietà intellettuali OGM dovrebbe iniziare nel 2027. Il CEO dell'azienda, Dr. Gengchen Han, ha espresso ottimismo riguardo alle prospettive di crescita di Origin e al suo ruolo nell'affrontare le sfide della sicurezza alimentare globale.

Origin Agritech (NASDAQ: SEED), una de las principales empresas chinas en tecnología agrícola, ha anunciado sus proyecciones de ingresos para líneas de productos clave hasta 2029. La empresa espera un crecimiento significativo, con ingresos totales proyectados para aumentar de ¥52.580.000 ($7.240.000) en 2022 a ¥958.747.000 ($132.019.000) para 2029. Este crecimiento se impulsa a través de tres líneas de producto principales: semillas híbridas, NEC y OGM.

Las proyecciones suponen que el maíz OGM en China representará el 70% del área total de siembra de maíz en 5 años, con Origin apuntando a una participación de mercado del 5%. Se espera que las semillas OGM contribuyan a los ingresos a partir de 2025, mientras que el negocio de concesión de OGM se proyecta que comience en 2027. El CEO de la empresa, Dr. Gengchen Han, expresó optimismo sobre las perspectivas de crecimiento de Origin y su papel en abordar los desafíos de la seguridad alimentaria global.

Origin Agritech (NASDAQ: SEED)는 중국의 주요 농업 기술 회사로, 2029년까지 주요 제품 라인에 대한 수익 전망을 발표했습니다. 회사는 2022년에 ¥52,580,000(약 7,240,000달러)에서 2029년까지 ¥958,747,000(약 132,019,000달러)으로 총 수익이 증가할 것으로 예상하며 큰 성장을 기대하고 있습니다. 이 성장은 하이브리드 씨앗, NEC, GMO의 세 가지 주요 제품 라인에 의해 주도됩니다.

이 전망은 중국의 GMO 옥수가 5년 안에 전체 옥수수 재배 면적의 70%를 차지할 것으로 가정하고 있으며, Origin은 5%의 시장 점유율을 목표로 하고 있습니다. GMO 씨앗은 2025년부터 수익에 기여할 것으로 예상되며, GMO 지적 재산권 부여 사업은 2027년에 시작될 것으로 전망됩니다. 회사의 CEO인 Dr. Gengchen Han은 Origin의 성장 가능성과 글로벌 식량 안보 문제를 해결하는 데 기여하는 역할에 대해 낙관적인 입장을 밝혔습니다.

Origin Agritech (NASDAQ: SEED), une entreprise chinoise de technologie agricole de premier plan, a annoncé ses prévisions de revenus pour ses lignes de produits clés jusqu'en 2029. L'entreprise s'attend à une croissance significative, avec un chiffre d'affaires total prévu pour passer de ¥52.580.000 (7.240.000 $) en 2022 à ¥958.747.000 (132.019.000 $) d'ici 2029. Cette croissance est soutenue par trois lignes de produits principales : semences hybrides, NEC et OGM.

Les prévisions supposent que le maïs OGM en Chine représentera 70 % de la surface totale de maïs semée dans 5 ans, avec Origin visant une part de marché de 5 %. Les semences OGM devraient contribuer aux revenus à partir de 2025, tandis que l'activité de concession de droits de propriété intellectuelle OGM devrait commencer en 2027. Le PDG de l'entreprise, Dr. Gengchen Han, a fait preuve d'optimisme quant aux perspectives de croissance d'Origin et à son rôle dans la résolution des défis de sécurité alimentaire mondiaux.

Origin Agritech (NASDAQ: SEED), ein führendes chinesisches Unternehmen für Agrartechnologie, hat seine Umsatzprognosen für wichtige Produktlinien bis 2029 bekannt gegeben. Das Unternehmen erwartet ein signifikantes Wachstum, wobei der Gesamtumsatz von ¥52.580.000 (7.240.000 USD) im Jahr 2022 auf ¥958.747.000 (132.019.000 USD) bis 2029 steigen soll. Dieses Wachstum wird von drei Hauptproduktlinien getragen: Hybrid-Samen, NEC und GMO.

Die Prognosen gehen davon aus, dass GMO-Mais in China in 5 Jahren 70% der gesamten Maisanbaufläche ausmachen wird, wobei Origin eine Marktanteil von 5% anstrebt. Es wird erwartet, dass GMO-Samen ab 2025 Einnahmen beitragen, während das Geschäft mit der Gewährung von GMO-IP voraussichtlich 2027 beginnen wird. Der CEO des Unternehmens, Dr. Gengchen Han, äußerte sich optimistisch über die Wachstumsperspektiven von Origin und dessen Rolle bei der Bewältigung globaler Herausforderungen der Ernährungssicherheit.

Positive
  • Projected revenue growth from ¥52,580,000 in 2022 to ¥958,747,000 by 2029
  • Introduction of new revenue streams: NEC and GMO products
  • Anticipated 5% market share in China's GMO corn market
  • Diversification of product portfolio with hybrid seeds, NEC, and GMO offerings
Negative
  • Heavy reliance on future GMO approvals and market adoption
  • Potential regulatory risks associated with GMO products in China
  • Ambitious growth projections may be challenging to achieve

Financial Projections: Origin Agritech’s revenue projections highlight a significant growth trajectory, with a forecasted increase from ¥52,580 thousand in 2022 to ¥958,747 thousand by 2029. This immense growth will likely attract investor attention. The company expects revenue to jump notably from 2025 onwards, driven by GMO seed sales and IP granting. A 5% market share in China's GMO corn market, assuming it reaches 70% of the total planting area, is a substantial target. These figures suggest aggressive market penetration plans and reflect confidence in their product and regulatory landscape. However, investors should also consider potential market and regulatory risks that could impact these projections.

Market Dynamics: The assumption that GMO corn will account for 70% of the total corn planting area in China within five years is ambitious. This projection, if met, would position Origin Agritech as a significant player in the GMO market. Investors should monitor regulatory changes and market acceptance of GMO products closely. The company's aim to capture a 5% market share translates to about 20 million mu - a substantial volume which, if realized, could redefine its market position. However, achieving and sustaining this market share will require continuous innovation, competitive pricing strategies and robust supply chain management.

Technological Innovations: Origin Agritech’s focus on GMO technology and gene editing is important for its projected growth. The expected contributions from GMO seeds starting in 2025 and IP granting from 2027 underline the company’s strategic R&D advancements. These innovations could provide sustainable solutions to global food security challenges, aligning with global trends in agricultural technology. However, the success of these technological advancements depends heavily on regulatory approvals and market adoption. The ability to consistently deliver high-performance GMO products will be critical in maintaining investor confidence and market growth.

BEIJING, July 23, 2024 /PRNewswire/ -- Origin Agritech Ltd. (NASDAQ: SEED) (the "Company" or "Origin"), a leading Chinese agricultural technology company, is pleased to announce its revenue projections for key product lines through the year 2029.

Revenue Projections


Revenue from hybrid seeds and other

Revenue from NEC

Revenue from GMO

Total Revenue('000)

Total Revenue(US$'000)

2022

 ¥52,580

-

-

 ¥52,580

$7,240

2023

 ¥93,307

-

-

 ¥93,307

$12,848

2024 (Expected)

 ¥95,000

 ¥10,000

-

 ¥105,000

$14,458

2025 (Expected)

 ¥99,750

 ¥50,000

 ¥30,000

 ¥179,750

$24,751

2026 (Expected)

 ¥104,738

 ¥100,000

 ¥90,000

 ¥294,738

$40,585

2027 (Expected)

 ¥109,974

 ¥150,000

 ¥210,000

 ¥469,974

$64,715

2028 (Expected)

 ¥115,473

 ¥225,000

 ¥330,000

 ¥670,473

$92,324

2029 (Expected)

 ¥121,247

 ¥337,500

 ¥500,000

 ¥958,747

$132,019

Assumptions:

  • In 5 years, China's GMO corn will account for 70% of the total corn planting area, about 400 million mu. Origin aims to have a 5% market share of about 20 million mu (GMO seed sale & IP granting).
  • Exchange rate $:¥:7.2622 (July 15)
  • GMO seeds sale begins to contribute revenue in 2025
  • GMO IP granting business begins to contribute revenue in 2027

GMO Corn Application to Approval Timeline

Dr. Gengchen Han, Chairman and CEO of Origin Agritech, commented: "We are excited about the growth prospects for Origin Agritech as we continue to innovate and expand our product offerings. These revenue projections and our clear timeline for GMO corn variety approvals reflect our commitment to delivering high-value solutions to farmers worldwide and significant value to our shareholders. By leveraging our GMO technology and gene editing expertise, we are well-positioned to address global food security challenges and promote sustainable agricultural practices."

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

FAQ

What is Origin Agritech's projected revenue for 2029?

Origin Agritech (NASDAQ: SEED) projects a total revenue of ¥958,747,000 ($132,019,000) for the year 2029.

When does Origin Agritech expect to start generating revenue from GMO seeds?

Origin Agritech (SEED) expects to start generating revenue from GMO seeds in 2025.

What market share does Origin Agritech aim to achieve in China's GMO corn market?

Origin Agritech (SEED) aims to achieve a 5% market share in China's GMO corn market, which is expected to account for 70% of the total corn planting area in 5 years.

How many product lines are included in Origin Agritech's revenue projections through 2029?

Origin Agritech's (SEED) revenue projections through 2029 include three main product lines: hybrid seeds, NEC, and GMO.

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