Origin Agritech Signs New Contract Planting Agreement with Sichuan Yingdafeng Agricultural Tech
Origin Agritech Ltd. (NASDAQ: SEED) has signed a contract planting agreement with Sichuan Yingdafeng Agriculture Tech Co., Ltd. for the 2023 growing season. The agreement involves the cultivation of 100,000 mu (16,500 acres) of Origin's NEC corn, with Origin guaranteeing to purchase all harvested corn. This expansion in Sichuan Province aims to enhance logistics and reduce shipping costs while supplying corn to local hog farms. The deal reflects Origin's strategy to meet the increasing demand for NEC corn, as stated by Chairman Dr. Gengchen Han.
- Signed a contract planting agreement for 100,000 mu of NEC corn, enhancing supply capabilities.
- Geographic expansion into Sichuan Province improves logistics and reduces shipping costs.
- Guarantee to purchase all harvested corn supports revenue stability.
- None.
BEIJING, Aug. 11, 2022 /PRNewswire/ -- Origin Agritech Ltd. (NASDAQ: SEED) (the "Company" or "Origin"), an agriculture technology company, announced today that the company has signed a contract planting agreement with farming company Sichuan Yingdafeng Agriculture Tech Co., Ltd.
Under the terms of the agreement, Sichuan Yingdafeng will grow 100,000 mu (or 16,500 acres) of Origin's NEC corn for the 2023 growing season. Origin will provide the seed and planting support services and guarantees to purchase all the corn once harvested. The corn will be sold to end users based on long-term supply agreements signed with feedstock companies and hog farmers.
The corn will be grown in the Sichuan Province allowing Origin to expand geographically and supply the corn to hog farms in that region, thus improving logistics and limiting expensive shipping costs.
"I am excited to sign this deal with Sichuan Yingdafeng," said Dr. Gengchen Han, Origin Agritech's Chairman. "Origin anticipates doing more deals like this to dramatically increase the supply of its NEC to catch up with the huge growth in demand."
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.
Media Contact:
Joe Ramelli
Director of Investor Relation
Phone: 310-845-6238
Email: joe@originagritech.com
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SOURCE Origin Agritech Limited
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