Origin Agritech (NASDAQ:SEED) executives described fiscal year 2025 as a “transformative” period marked by an operational reset, strategic investment, and a sharp year-over-year revenue decline tied to product mix changes and facility upgrades.
During the company’s fiscal 2025 results conference call, Chief Executive Officer Weibin Yan said the company had achieved what he characterized as a “full recovery” of its team, research capabilities, seed production and processing facilities, and sales network infrastructure during his first year in the CEO role (September 2024 to September 2025). Chief Financial Officer Patrick Cheng reviewed results showing significantly lower revenue and a net loss, while highlighting liquidity improvements and proceeds from a capital raise.
Leadership frames 2025 as “recovery” phase within multi-year plan
Yan said the company is already seeing “strong progress” in stage one, and he emphasized organizational rebuilding and infrastructure improvements as key themes of the year. He noted the senior leadership team is “fully in place” and said the company increased headcount to 97 professionals from 68. He also said the organization is reshaping decentralization efforts to drive efficiency and innovation.
Research and production upgrades highlighted
On the research side, Yan said Origin upgraded its Beijing Station and Sanya Station and opened a new station in Zhengzhou, Henan Province. He also said a research facility in Guiyang, Guizhou Province is under construction and expected to open in the first quarter of 2026.
Yan said the company has “mostly renewed” its product portfolio and that its research pipeline is stocked with competitive germplasm aimed at next-generation industry competition. He added that commercialization of GMO and functional gene editing technology has been accelerated through a strategic alliance with China Golden Marker.
On production, Yan said the company’s upgraded Xinjiang production and processing facility is “now back to industry-leading standards.”
Sales network changes and licensing milestone
Yan said Origin improved its sales team and infrastructure, including establishing a new sales force in Northeast China and East China provinces. He added that sales team and entity restructuring were “mostly concluded” in December 2025.
He also cited a licensing milestone: Beijing Origin achieved its seed production operation license in December 2025.
Fiscal 2025 revenue fell 90% as company shifted focus
CFO Patrick Cheng reported fiscal year 2025 total revenue of CNY 91.3 million (about $12.9 million), a 90% decrease from the prior year. Cheng attributed the decline primarily to two factors:
- A decrease in sales of non-proprietary seed varieties as the company strategically shifted focus and “temporarily reduced some external production services” during the upgrade of the Xinjiang facility.
- Increased market competition for the company’s legacy proprietary seed products.
Cheng said these dynamics contributed to a net loss attributable to Origin of CNY 53.3 million (about $7.5 million). He also noted that fiscal 2024 results included a one-time gain from a subsidiary disposal that did not recur in fiscal 2025.
Liquidity improved, supported by equity raise
Despite the year’s operating results, Cheng said the company ended the year with what he described as a “strong liquidity position.” Cash and cash equivalents increased 89% to CNY 15.9 million.
Cheng said the company raised $5.38 million during the year through the sale of ordinary shares, and that the funds are being deposited for working capital, market expansion, and facility upgrades.
He also detailed cash flow activity for the year:
- Net cash used in operating activities was CNY 22.9 million, reflecting investment in inventory and operations.
- Net cash used in investing activities was CNY 13.7 million, primarily for upgrades to production facilities.
- Net cash provided by financing activities was CNY 44.3 million, largely from the capital raise.
In closing remarks, Cheng characterized fiscal 2025 as a period of transition and strategic investment, saying the company strengthened its balance sheet and directed capital toward technology, infrastructure, and staffing initiatives that management believes will support future growth.
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.
