Origin Agritech (NASDAQ:SEED) reported lower revenue but a narrower loss for the first half of fiscal 2026, as management said the company is moving from restructuring toward commercialization of new corn seed products and biotechnology platforms.
On the company’s earnings call, Chief Executive Officer Weibin Yan described the six months ended March 31, 2026, as the “midpoint of the recovery phase” of Origin Agritech’s strategic plan. Yan said the period was focused on converting the company’s rebuilt research, production and sales infrastructure into “measurable commercial and scientific outcomes.”
Revenue Falls as Product Mix Shifts
Chen attributed the decline mainly to a “strategic transition” in the company’s product portfolio, saying Origin Agritech is placing more emphasis on new corn seed products while reducing external seed tolling services.
Gross profit was RMB 5.5 million, or $0.8 million, compared with RMB 8.1 million a year earlier. The company reported a loss from operations of RMB 12.9 million, or $1.9 million, narrowing from a loss of RMB 24.7 million in the first half of fiscal 2025.
Net loss attributable to Origin Agritech was RMB 14.4 million, or $2.1 million, compared with a net loss of RMB 25.6 million in the prior-year period. Basic and diluted net loss per share was RMB 1.21, or $0.17, compared with RMB 3.55 a year earlier.
Cost Reductions Offset Higher Sales Spending
Total operating expenses declined 43.9% year over year to RMB 18.4 million, or $2.7 million, from RMB 32.8 million.
Chen said general and administrative expenses dropped 69.8%, from RMB 25 million to RMB 7.6 million. He said the reduction reflected “operating discipline” following a leadership restructuring completed in December 2025 and the consolidation of corporate functions at Beijing Origin.
At the same time, selling and marketing expenses increased 93.3% to RMB 5.1 million from RMB 2.6 million. Chen said the increase was intentional and aligned with the company’s strategy, citing the buildout of a 36-person sales organization and the field deployment of the Aoyu 2026 commercial campaign.
Research and development expenses rose 11.1% to RMB 5.7 million from RMB 5.2 million. Chen said the increase reflected continued investment in the Hi3 platform, the Shunfeng licensed gene editing program and new variety pipelines.
Sales Team Rebuilt and Aoyu 2026 Campaign Launched
Yan said Origin Agritech has restored its sales team to 36 professionals deployed across China and rebuilt its regional presence, including a re-entry into Northeast China. In September 2025, the company hosted a variety showcase and technology seminar in Changchun that drew more than 200 dealers and partners, he said.
In early March, Origin Agritech held its 2026 annual marketing conference in Changsha, Hunan Province. Yan said the company formally launched the Aoyu 2026 new variety promotion program at the event and signed KPI contracts with general managers of six regional sales companies across China’s principal corn production regions.
“Every manager, every region, and every product line now has a very clear annual target and personally owns the outcome,” Yan said.
The company also said it has deepened collaborations with breeders across ecological zones and introduced or jointly assembled more than 10,000 new corn combinations in its test pipeline this year by working with more than 30 breeders. Yan highlighted Zhengtai 889, which he said was jointly developed with Hunan Agricultural University, and Zhongnongda 8538, bred by China Agricultural University, as varieties in the company’s portfolio.
Biotechnology and GMO Readiness Remain Key Themes
Yan said Origin Agritech’s 2025 winter South China breeding work generated more than 30,000 new test cross combinations, including combinations tied to what he described as breakthrough gene platforms. He said the company used its Hi3 platform and a leaf-angle reduction gene licensed from China Agricultural University to make plant-type improvements on major market varieties, supporting higher-density planting trends.
During the call’s investor question segment, the company said China’s policy direction has moved favorably over the past two years through the gradual expansion of approved geography and acreage for commercial GMO corn planting. However, the company said it would not forecast future decisions by the Ministry of Agriculture.
Origin Agritech said it holds the biosafety certificate for BBL2-2, has included GMO crop seed production within Beijing Origin’s business scope as of October 2025, holds two crop seed production and operation licenses in China, and has restored its Xinjiang processing facility to what management called “industry leading standards.”
The company also pointed to the Origin Marker Biological Breeding Service Consortium with China Golden Marker Biotech as a licensing pathway to monetize biotechnology independently of its own seed sales.
“There are not many seed companies in China that hold both the biotechnology credentials and the production and the distribution infrastructure to commercialize GMO corn at scale once the policy window fully opens,” the company said during the Q&A. “Origin is one of them.”
Balance Sheet and Leadership Updates
As of March 31, Origin Agritech had cash and cash equivalents of RMB 13.4 million, or $1.9 million, compared with RMB 15.9 million as of Sept. 30, 2025. Inventories were RMB 24.8 million, or $3.6 million, up from RMB 14.4 million at fiscal year-end. Chen said the increase was seasonal and reflected inventory build ahead of the spring planting season.
Short-term borrowings were RMB 9.5 million, or $1.4 million, compared with RMB 8.0 million at fiscal year-end. Total liabilities were RMB 168.1 million, or $24.3 million, compared with RMB 162.2 million at fiscal year-end.
Yan also noted leadership changes after the reporting period, including the March 2026 appointment of Dr. Jian Zhang as an independent director. Yan said Zhang has more than 20 years of experience in the global crop biotechnology industry, including senior roles at DuPont Pioneer, Syngenta and BASF.
Yan also welcomed back Chen as chief financial officer, citing his prior service at Origin Agritech and his experience with capital markets and the company’s operations. Yan said an investment agreement completed during the period included a direct equity investment by himself, which he described as a reflection of his conviction in the company’s strategy.
Looking ahead, Yan said the company’s biotechnology platform is “becoming a commercial story” and said the Aoyu 2026 campaign is in the field with defined performance targets. He said the first half of fiscal 2027 would show whether work over the prior 18 months is converting into commercial outcomes.
About Origin Agritech (NASDAQ:SEED)
Origin Agritech (NASDAQ:SEED) is an agricultural biotechnology company focused on the research, development, production and sale of hybrid rice seeds. The company’s core business activities center on the application of molecular marker‐assisted selection and genomics to develop high‐yielding, disease‐resistant and stress‐tolerant rice varieties. Its product portfolio includes proprietary cytoplasmic male sterile (CMS) lines, hybrid parent lines and commercial seed varieties tailored to the agronomic needs of rice growers.
Origin Agritech primarily serves the major rice‐producing provinces of China, where it has established breeding stations, seed production bases and a distribution network to supply certified hybrid seeds.
