Origin Agritech Chairman and CEO Dr. Gengchen Han Provides Business Updates and Answers Questions from Investors
Origin Agritech (NASDAQ: SEED), a leading Chinese agricultural technology company, announced significant progress in GMO commercialization, hybrid crop performance, and gene editing innovations.
The company received China's GMO safety certificate for its transgenic maize, BBL2-2, and is advancing several hybrids incorporating these traits, expecting approvals within 1-2 years.
Commercial hybrids like OY728 have demonstrated superior yield and resilience, with an improved version due in 2025. The gene editing business has also achieved remarkable breakthroughs, including a high-yield corn inbred line with a 50% yield increase.
Investor questions highlighted near-term revenue from corn variety Aoyu 728 and GMO hybrid corn Aoyu 64BF, which will enter the market soon. The company also plans to commercialize its gene editing platform using CRISPR technology.
- Received China's GMO safety certificate for transgenic maize BBL2-2.
- OY728 hybrid corn demonstrated superior yield and resilience.
- High-yield gene-edited corn inbred line achieved a 50% yield increase.
- Projected revenue of $7 million from corn variety Aoyu 728 in 2025.
- GMO hybrid corn Aoyu 64BF expected to enter the market soon.
- None
Insights
Origin Agritech's recent developments indicate significant potential for revenue growth and market expansion. The successful attainment of China's GMO safety certificate for the transgenic maize, BBL2-2 and the progress in both GMO hybrids and gene editing illustrate a strong pipeline of high-value agricultural products.
Short-term Implications: The projected revenue from hybrid corn seed product line (Aoyu 728) at
Long-term Implications: The commercialization timelines for products like GMO hybrid corn seed variety Aoyu 64BF and gene-edited crops forecast substantial revenue streams in the coming years. The development and commercialization of gene-edited crops highlighting a yield increase of over
Investors should monitor the completion of trials and safety certificate approvals closely, as these milestones are important for translating the current developmental progress into sustained revenue growth.
The advancements in GMO commercialization and gene editing at Origin Agritech are noteworthy for their technical achievements and potential impact on agricultural productivity. The BBL2-2 maize with its combination of insect-resistant and herbicide-tolerance genes represents a significant leap in crop protection and sustainable farming practices.
The unique trait of resistance to coleopteran pests in BBL2-2 maize sets it apart in the Chinese market and could reduce pesticide usage, benefiting both farmers and the environment. Furthermore, the gene editing progress, particularly the high-yield corn inbred line showing a more than
From a scientific perspective, Origin Agritech's dual focus on GMO hybrids and gene-edited crops positions them at the forefront of agricultural biotechnology, providing robust solutions to challenges such as pest resistance, planting density and crop resilience.
Origin Agritech's comprehensive update provides a clear picture of the company's strategic direction and market readiness. The move towards commercial production of GMO and gene-edited crops aligns well with global trends favoring sustainable and high-yield agricultural solutions.
The reception from farmers and potential partners, particularly the positive feedback from field demonstrations and inquiries about partnerships, underscores market acceptance and demand for these innovative products. The
Looking ahead, the company's planned commercialization activities, including pilot seed production and aggressive commercial strategies for gene editing platforms, are poised to capitalize on these market opportunities, fostering robust growth and shareholder value.
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
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
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
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
The planting area of NEC corn in
Was construction of the corn drying and processing facility completed in
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
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 recent progress has Origin Agritech made in GMO commercialization?
Which hybrids have shown superior performance in recent field trials?
What revenue is expected from Origin Agritech's corn variety Aoyu 728?
When will Origin Agritech's GMO hybrid corn Aoyu 64BF enter the market?
How has Origin Agritech progressed with its gene editing business?
Will Origin Agritech commercialize its gene editing platform using CRISPR technology?
