Origin Agritech to Expand NEC Corn Production into Sichuan Province
Origin Agritech Ltd. (NASDAQ: SEED) has launched a joint venture with Sichuan Cloudland Agricultural Science and Technology to increase NEC corn production in Sichuan Province, China. This region is key for animal feed, being China's largest pork producer but facing a corn deficit of 10 million tons annually. The regional government supports this venture due to the efficient feedstock properties of NEC corn. Chairman Dr. Gengchen Han anticipates positive revenue and earnings growth with minimal capital investment needed.
- Joint venture with Cloudland could enhance production capacity.
- Government support for NEC corn expansion in Sichuan.
- Potential to address the corn deficit of 10 million tons annually.
- None.
BEIJING, Nov. 15, 2022 /PRNewswire/ -- Origin Agritech Ltd. (NASDAQ: SEED) (the "Company" or "Origin"), an agriculture technology company, announced today that the company has commenced a joint venture with Sichuan Cloudland Agricultural Science and Technology ("Cloudland"), a subsidiary of Eos Asia Investments Limited ("Eos") to expand production of NEC corn into Sichuan Province, China.
An opportune region for animal feed production, Sichuan Province has the largest production of pork and is home to 4 of the 10 largest hog farming companies in China. Nevertheless, Sichuan is only ranked 8th in corn production which has resulted in a 10-million-ton per annum deficit in corn for feedstock that must be sourced from other provinces. Sichuan has frequently had the highest corn prices in the country. The regional government has expressed great interest in supporting the growth of Origin Agritech's NEC corn due to its energy density and resource efficiency allowing more hogs to be fed per unit of corn.
"I am very excited to joint venture with Cloudland and Eos, a legendary investor in China", said Dr. Gengchen Han, Origin Agritech's Chairman. "This will allow us to quickly expand our production of corn into Sichuan Province next year and will have a positive impact on revenues and earnings, with little capital requirement due to the favorable government policies and local support of our Cloudland JV partner."
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.
Joe Ramelli
Director of Investor Relation
Phone: 310-845-6238
Email: joe@originagritech.com
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SOURCE Origin Agritech Limited
FAQ
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