Origin Agritech Establishes New Subsidiary to Expand Its Nutrition Enhanced Corn Production
Origin Agritech Ltd. (NASDAQ: SEED) has announced the establishment of a new subsidiary in Hainan to enhance its nutrition-enhanced corn production capabilities. This subsidiary will focus on research, seed production and feed corn production, leveraging three corn growing seasons annually. Over 50,000 Mu of feed corn has been contracted for the 2022 growing season, with expectations for significant growth. The company's corn reduces the need for costly additives, presenting cost-saving opportunities for feedstock companies amidst rising global grain prices.
- Establishment of a new subsidiary in Hainan to enhance nutrition-enhanced corn production.
- 50,000 Mu of feed corn under contract for the 2022 season, indicating strong demand.
- Potential cost savings for feedstock companies due to reduced need for expensive additives.
- None.
BEIJING, March 7, 2022 /PRNewswire/ -- Origin Agritech Ltd. (NASDAQ: SEED) (the "Company" or "Origin"), an agriculture technology company, announced today that the company established a new subsidiary in Hainan island to expand the capacity of nutrition enhanced corn production.
The new wholly owned subsidiary in Hainan province will focus on nutrition enhanced corn research, seed production and feed corn production by taking advantage of the three corn growing seasons per year on Hainan island. Over 50,000 Mu contract growing of feed corn has been initiated for the 2022 growing season, and significant growth is expected for next growing season.
Origin Agritech nutritionally enhanced corn reduces the need for expensive additives such as soybean meal for feedstock companies. As global grain prices surge, it offers great cost savings to feedstock companies. Origin Agritech is currently in discussion with numerous feedstock companies for large orders as well as for partnerships, such as the previously announced collaboration with BaoDao Feed Ltd. We will update the market shortly after we finalize these deals.
"I am very proud of our scientists for having bred a corn variety that is having such a positive impact for feedstock companies and for the entire food supply chain," said Dr. Gengchen Han, Origin Agritech's Chairman. "With our leading position in GMO and gene editing technology, we expect to market more nutrition enhanced corn hybrids in the near future and thus help to increase China's domestic food production."
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 @origin_agritech.
Forward-Looking Statements
This communication contains "forward-looking statements" as defined in the federal securities laws, including Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements address expected future business and financial performance and financial condition, and contain words like "expect," "anticipate," "intend," "plan," "believe," "seek," "will," "would," "target," and similar expressions and variations. Forward-looking statements address matters that are uncertain. Forward-looking statements are not guarantees of future performance and are based on assumptions and expectations which may not be realized. They are based on management's current expectations, assumptions, estimates and projections about the Company and the industry in which the Company operates but involve a number of risks and uncertainties, many of which are beyond the company's control. Some of the important factors that could cause the company's actual results to differ materially from those discussed in forward-looking statements are: failure to develop and market new products and optimally manage product life cycles; ability to respond to market acceptance, rules, regulations and policies affecting our products; failure to appropriately manage process safety and product stewardship issues; changes in laws and regulations or political conditions; global economic and capital markets conditions, such as inflation, interest and currency exchange rates; business or supply disruptions; natural disasters and weather events and patterns; ability to protect and enforce the company's intellectual property rights; and separation of underperforming or non-strategic assets or businesses. The company undertakes no duty or obligation to publicly revise or update any forward-looking statements as a result of future developments, or new information or otherwise, should circumstances change, except as otherwise required by securities and other applicable laws. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and actual results may differ materially from the anticipated results. You are urged to consider these factors carefully in evaluating the forward-looking statements contained herein and are cautioned not to place undue reliance on such forward-looking statements, which are qualified in their entirety by these cautionary statements.
For further information:
Kirin Smith
President, PCG Advisory
646-823-8656
Joe Ramelli
Director of Investor Relation
Phone: 310-845-6238
Email: joe@originagritech.com
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SOURCE Origin Agritech Limited
FAQ
What is the significance of the new subsidiary established by Origin Agritech in Hainan?
How much feed corn has Origin Agritech contracted for the 2022 season?
What advantages does Origin Agritech's corn provide to feedstock companies?
What partnerships is Origin Agritech pursuing related to its nutrition-enhanced corn?
