Shares in Origin Agritech Jump 2% on Revenue Growth, Profit
The Chinese seed company reported significant improvement in the six months through March after cutting its expenses.
The stock in Origin Agritech Ltd. (Nasdaq: SEED) climbed 2 percent Tuesday after it announced its revenue in the fiscal half-year through March soared 23 times from a year ago.
The agricultural biotechnology company said in a statement today that its revenue skyrocketed to $12.2 million the six months through March from $524,000 in the same period last year. The company also turned profitable from a net loss of $4.1 million in the first half-year of fiscal 2018 to a profit of $100,000, or 4 cents per American depositary share.
Operating expenses were $2.7 million, down 57 percent from the same period a year ago.
The Beijing-based company operates agricultural production, processing and breeding centers in China focusing on corn, rice and canola planting.
The company announced its partnership with Longhan Investment Management Co. Ltd. to commercialize its product through Origin's platform with $7.7 million investment from Longhan in 2018.
Origin, founded in 1997, has been trading its shares publicly on the Nasdaq since 2004. Stock in Origin ended 2 percent higher Tuesday, at $6.12 per ADS.