Venture Transforms Origin's Market Opportunity, Elevating Its
Position from Corn Seed to Corn Feedstock Sector with a Twentyfold
Market Expansion
BEIJING, July 12,
2023 /PRNewswire/ -- Origin Agritech
Ltd. (NASDAQ: SEED) (the "Company" or "Origin"), an agriculture
technology company, announced today the groundbreaking ceremony
marking the start of construction for an innovative 100,000-ton
corn drying base in Shihezi, Xinjiang, where one of Origin's
Nutritionally Enhanced Corn (NEC) plantation bases is located.
This project is spearheaded by the Company's joint venture, Baodao
Origin Agritech and Livestock Co. Ltd.
The venture, bolstered by an investment of RMB 80 million, or $11.1
million, provided by Origin's joint venture partner and
supported by regional financial institutions, is set to fortify
Origin's Nutritionally Enhanced Corn (NEC) supply chain.
Mr. Guangju Wang, head of NEC Corn Business and General Manager
of Baodao Origin, expressed, "With our revolutionary Nutritionally
Enhanced Corn (NEC), we're reshaping the agricultural industry.
This unique corn variety allows hogs to thrive without expensive
soybean meal supplementation, thereby doubling profit margins for
feedstock companies. Consequently, the resulting high demand for
NEC has allowed us to expand from a $4.4
billion corn seed market to a $83.2
billion corn feedstock market. This leap enlarges our market
opportunity by nearly 20-fold, emphasizing the immense potential
for Origin within the corn supply chain."
Mr. Chunying Kang, County Mayor
of 149th Regiment County, Shihezi, Xinjiang, expressed
his appreciation, "We are incredibly grateful and delighted with
the significant investment Baodao Origin Agritech and Livestock Co.
Ltd. are making in modernizing Xinjiang's agricultural sector.
Their pioneering efforts to establish a modern corn drying and silo
facility are truly transformative. This facility is set to
drastically reduce the risk of catastrophic losses, which have
unfortunately become more frequent with traditional sun drying
methods, particularly in the face of climate change and
increasingly unpredictable weather patterns."
The state-of-the-art facility will include a drying base, a
storage base, and supporting facilities. The drying base will have
the capacity to process 1,200 metric tons daily, while the storage
base will be able to hold up to 50,000 tons of produce. The
construction is expected to complete and ready for use by mid
September to meet the production needs for the upcoming 2023
harvesting season.
Dr. Gengchen Han of Origin Agritech expressed his gratitude, "We
are deeply appreciative of the commitment and aligned vision for
agricultural innovation shown by the government representatives.
Their participation in the groundbreaking ceremony emphasizes a
shared determination to pioneer agricultural modernization in
Shihezi, Xinjiang. As we lay the foundation for this
state-of-the-art facility, Origin remains committed to bolstering
our Nutritionally Enhanced Corn (NEC) supply chain. Together with
the first corn drying plant completed, we are planning to build
more such facilities next year to set up a corn supply chain
throughout China."
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
VP of Business Development
Phone: 310-845-6238
Email: joe@originagritech.com
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SOURCE Origin Agritech Limited