Document And Entity Information
Document And Entity Information - shares | 12 Months Ended | |
Sep. 30, 2023 | Feb. 15, 2024 | |
Document Information | ||
Document Type | 20-F | |
Document Registration Statement | false | |
Document Annual Report | true | |
Document Period End Date | Sep. 30, 2023 | |
Document Transition Report | false | |
Document Shell Company Report | false | |
Entity File Number | 000-51576 | |
Entity Registrant Name | Origin Agritech Limited | |
Entity Incorporation, State or Country Code | D8 | |
Entity Address, Address Line One | No. 21 Sheng Ming Yuan Road | |
Entity Address, Address Line Two | Changping District | |
Entity Address, City or Town | Beijing | |
Entity Address, Postal Zip Code | 102206 | |
Entity Address, Country | CN | |
Title of 12(b) Security | Ordinary Shares | |
Trading Symbol | SEED | |
Security Exchange Name | NASDAQ | |
Entity Common Stock, Shares Outstanding | 6,334,998 | |
Entity Well-known Seasoned Issuer | No | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Emerging Growth Company | false | |
ICFR Auditor Attestation Flag | false | |
Document Financial Statement Error Correction [Flag] | false | |
Document Accounting Standard | U.S. GAAP | |
Entity Shell Company | false | |
Entity Central Index Key | 0001321851 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | FY | |
Current Fiscal Year End Date | --09-30 | |
Auditor Name | B F Borgers CPA PC | |
Auditor Firm ID | 5041 | |
Auditor Location | Lakewood, Colorado | |
Business Contact | ||
Document Information | ||
Contact Personnel Name | Dr. Han Gengchen | |
Entity Address, Address Line One | No. 21 Sheng Ming Yuan Road | |
Entity Address, Address Line Two | Changping District | |
Entity Address, City or Town | Beijing | |
Entity Address, Postal Zip Code | 102206 | |
Entity Address, Country | CN | |
City Area Code | 86-10 | |
Local Phone Number | 5890-7588 | |
Contact Personnel Fax Number | 5890-7577 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS ¥ in Thousands, $ in Thousands | Sep. 30, 2023 CNY (¥) | Sep. 30, 2023 USD ($) | Sep. 30, 2022 CNY (¥) |
Current assets: | |||
Cash and cash equivalents | ¥ 23,708 | $ 3,302 | ¥ 17,669 |
Accounts receivable, net | 839 | 117 | 619 |
Due from related parties, net of bad debt allowance (note 3) | ¥ 20,382 | $ 2,839 | ¥ 28,127 |
Other Receivable, after Allowance for Credit Loss, Current, Related Party, Type [Extensible Enumeration] | Related Party [Member] | Related Party [Member] | Related Party [Member] |
Advances to suppliers (note 5) | ¥ 71,617 | $ 9,975 | ¥ 20,022 |
Inventories (note 6) | 13,039 | 1,816 | 2,106 |
Other current assets (note 7) | 12,197 | 1,699 | 12,997 |
Total current assets | 141,782 | 19,748 | 81,540 |
Land use rights, net (note 9) | 3,258 | 454 | 1,792 |
Plant and equipment, net (note 10) | 21,102 | 2,939 | 46,389 |
Long-term investment (note 11) | 66,648 | 9,283 | 1,690 |
Acquired intangible assets, net (note 12) | 2,989 | ||
Operating lease right-of-use assets, net | 821 | 114 | 1,555 |
Other assets (note 13) | 4,895 | 682 | 0 |
Total assets (including amounts of the consolidated VIEs without recourse to the Company of RMB52,894 and RMB220,777 as of September 30, 2022 and 2023 respectively) | 238,506 | 33,220 | 135,955 |
Current liabilities: | |||
Borrowings (note 14) | 137,660 | ||
Accounts payable | 4,936 | 687 | 10,161 |
Due to growers | 404 | 56 | 404 |
Due to related parties (note 3) | ¥ 174,484 | $ 24,302 | ¥ 18,629 |
Other Liability, Current, Related Party, Type [Extensible Enumeration] | Related Party [Member] | Related Party [Member] | Related Party [Member] |
Advances from customers | ¥ 114,806 | $ 15,990 | ¥ 60,551 |
Income tax payable | 773 | 108 | 773 |
Lease Liability - current | 113 | 16 | 119 |
Other payables and accrued expenses (note 15) | 17,945 | 2,501 | 64,568 |
Total current liabilities | 313,461 | 43,660 | 292,865 |
Lease Liability - noncurrent | 128 | 18 | 1,501 |
Other long-term liability | 6,177 | 860 | 14,231 |
Total liabilities (including amounts of the consolidated VIEs without recourse to the Company of RMB276,371 and RMB91,261 as of September 30, 2021 and 2022, respectively) | 319,766 | 44,538 | 308,597 |
Commitments and contingencies (note 23) | |||
Shareholders' equity (deficit): | |||
Preferred stock(no par value; 1,000,000 shares authorized, none issued) | |||
Common stock (no par value; 60,000,000 shares authorized, 6,011,127 and 6,341,630 shares issued as of September 30, 2023 and 2022; 5,990,604 and 6,321,107 shares outstanding as of September 30, 2023 and 2022 respectively)* | 0 | 0 | 0 |
Additional paid-in capital | 573,289 | 79,847 | 551,933 |
Accumulated deficit | (601,566) | (83,786) | (656,898) |
Treasury stock at cost 20,523 and 20,523 shares as of September 30, 2023 and 2022, respectively)* (note 18) | (6,133) | (854) | (6,133) |
Accumulated other comprehensive loss | (22,988) | (3,202) | (22,774) |
Total Origin Agritech Limited shareholders' equity (deficit) | (57,398) | (7,995) | (133,872) |
Non-controlling interests | (23,862) | (3,323) | (38,770) |
Total equity (deficit) | (81,260) | (11,318) | (172,642) |
Total liabilities and deficit | ¥ 238,506 | $ 33,220 | ¥ 135,955 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) ¥ in Thousands, $ in Thousands | Sep. 30, 2023 CNY (¥) ¥ / shares shares | Sep. 30, 2023 USD ($) shares | Sep. 30, 2022 CNY (¥) ¥ / shares shares |
Total assets | ¥ 238,506 | $ 33,220 | ¥ 135,955 |
Total liabilities | ¥ 319,766 | $ 44,538 | ¥ 308,597 |
Preferred stock, par value (in dollars per share) | ¥ / shares | ¥ 0 | ¥ 0 | |
Preferred stock, shares authorized (in shares) | 1,000,000 | 1,000,000 | 1,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 | 0 |
Common stock, par value (in dollars per share) | ¥ / shares | ¥ 0 | ¥ 0 | |
Common stock, shares authorized (in shares) | 60,000,000 | 60,000,000 | 60,000,000 |
Common stock, shares issued (in shares) | 6,011,127 | 6,011,127 | 6,341,630 |
Common stock, shares outstanding (in shares) | 5,990,604 | 5,990,604 | 6,321,107 |
Treasury stock, shares (in shares) | 20,523 | 20,523 | 20,523 |
VIEs | |||
Total assets | ¥ | ¥ 220,777 | ¥ 52,894 | |
Total liabilities | ¥ | ¥ 91,261 | ¥ 276,371 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME (LOSS) AND COMPREHENSIVE INCOME (LOSS) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Sep. 30, 2023 CNY (¥) ¥ / shares shares | Sep. 30, 2023 USD ($) $ / shares shares | Sep. 30, 2022 CNY (¥) ¥ / shares shares | Sep. 30, 2021 CNY (¥) ¥ / shares shares | |
CONSOLIDATED STATEMENTS OF INCOME (LOSS) AND COMPREHENSIVE INCOME (LOSS) | ||||
Revenues | ¥ 93,307 | $ 12,996 | ¥ 52,580 | ¥ 46,425 |
Cost of revenues | (76,060) | (10,594) | (36,386) | (33,611) |
Gross profit | 17,247 | 2,402 | 16,194 | 12,814 |
Operating expenses | ||||
Selling and marketing | (8,359) | (1,164) | (7,335) | (5,564) |
General and administrative | (14,228) | (1,982) | (14,321) | (73,315) |
Research and development | (7,447) | (1,037) | (7,434) | (1,979) |
Impairment of assets | (2,204) | (307) | (69,870) | |
Total operating expenses, net | (32,238) | (4,490) | (29,090) | (150,728) |
Loss from operations | (14,991) | (2,088) | (12,896) | (137,914) |
Interest expense, net | (982) | (137) | (8,228) | (8,558) |
Impairment of long-term investment | (1,490) | (208) | (2,906) | (5,958) |
Rental income | 10,600 | 1,477 | 10,603 | 10,603 |
Other non-operating income (expense),net | 69,691 | 9,707 | 15,738 | 14,924 |
Income (loss) before income taxes | 62,831 | 8,751 | 2,311 | (126,903) |
Income tax (expense) benefits (note 20) | (162) | (23) | 14 | (178) |
Net Income (loss) | 62,669 | 8,728 | 2,325 | (127,081) |
Less: Net (loss) income attributable to non-controlling interests | 7,337 | 1,022 | 8,590 | (35,552) |
Net loss attributable to Origin Agritech Limited | 55,332 | 7,706 | (6,265) | (91,529) |
Other comprehensive loss | ||||
Net loss | 62,669 | 8,728 | 2,325 | (127,081) |
Foreign currency translation difference | (214) | (30) | 447 | (816) |
Comprehensive Income (loss) | 62,455 | 8,698 | 2,772 | (127,897) |
Less: Comprehensive income (loss) income attributable to non-controlling interests | 7,337 | 1,022 | 8,590 | (35,552) |
Comprehensive loss attributable to Origin Agritech Limited | ¥ 55,118 | $ 7,676 | ¥ (5,818) | ¥ (92,345) |
Basic net income(loss) per share attributable to Origin Agritech Limited (note 21) (in dollars per share) | (per share) | ¥ 8.45 | $ 1.18 | ¥ (1.09) | ¥ (16.29) |
Diluted net income(loss) per share attributable to Origin Agritech Limited (note 21) (in dollars per share) | (per share) | ¥ 8.43 | $ 1.17 | ¥ (1.09) | ¥ (16.29) |
Shares used in computing earnings per share: | ||||
Basic (in shares) | 6,546,153 | 6,546,153 | 5,773,094 | 5,617,424 |
Diluted (in shares) | 6,562,278 | 6,562,278 | 5,773,094 | 5,617,424 |
CONSOLIDATED STATEMENTS OF EQUI
CONSOLIDATED STATEMENTS OF EQUITY ¥ in Thousands, $ in Thousands | Common stock shares | Additional Paid-in Capital CNY (¥) | Additional Paid-in Capital USD ($) | Accumulated Deficit Unrestricted CNY (¥) | Accumulated Deficit Unrestricted USD ($) | Accumulated Other Comprehensive Loss CNY (¥) | Accumulated Other Comprehensive Loss USD ($) | Treasury Stock CNY (¥) | Treasury Stock USD ($) | Non-controlling Interests CNY (¥) | Non-controlling Interests USD ($) | CNY (¥) | USD ($) | |
Beginning balance at Sep. 30, 2020 | ¥ 514,675 | ¥ (559,104) | ¥ (22,405) | ¥ (10,356) | ¥ (8,272) | ¥ (85,462) | ||||||||
Beginning balance (in shares) at Sep. 30, 2020 | shares | [1] | 5,431,724 | ||||||||||||
Net loss for the year | (91,529) | (35,552) | (127,081) | |||||||||||
Exercise of share option | 745 | 745 | ||||||||||||
Exercise of share option (in shares) | shares | [1] | 21,930 | ||||||||||||
Share-based compensation expense | 6,729 | 4,223 | 10,952 | |||||||||||
Business disposal | (1,102) | (1,102) | ||||||||||||
Issuance of common shares | 17,166 | 17,166 | ||||||||||||
Issuance of common shares (in shares) | shares | [1] | 319,440 | ||||||||||||
Translation adjustments | (816) | (816) | ||||||||||||
Ending balance at Sep. 30, 2021 | 539,315 | (650,633) | (23,221) | (6,133) | (44,926) | (185,598) | ||||||||
Ending balance (in shares) at Sep. 30, 2021 | shares | [1] | 5,773,094 | ||||||||||||
Net loss for the year | (6,265) | 8,590 | 2,325 | |||||||||||
Exercise of share option | 566 | 566 | ||||||||||||
Exercise of share option (in shares) | shares | [1] | 16,510 | ||||||||||||
Share-based compensation expense | 1,038 | 1,038 | ||||||||||||
Business disposal | (2,434) | (2,434) | ||||||||||||
Issuance of common shares | 11,014 | 11,014 | ||||||||||||
Issuance of common shares (in shares) | shares | [1] | 201,000 | ||||||||||||
Translation adjustments | 447 | 447 | ||||||||||||
Ending balance at Sep. 30, 2022 | 551,933 | (656,898) | (22,774) | (6,133) | (38,770) | (172,642) | ||||||||
Ending balance (in shares) at Sep. 30, 2022 | shares | [1] | 5,990,604 | ||||||||||||
Net loss for the year | 55,332 | 7,337 | 62,669 | $ 8,728 | ||||||||||
Capital contribution from NCI | 10,475 | 10,480 | 1,460 | |||||||||||
Exercise of share option | 599 | 599 | ||||||||||||
Exercise of share option (in shares) | shares | [1] | 10,503 | ||||||||||||
Share-based compensation expense | 1,163 | 1,163 | ||||||||||||
Business disposal | (2,704) | (2,704) | ||||||||||||
Dividend | (200) | (200) | ||||||||||||
Issuance of common shares | 19,594 | 19,594 | ||||||||||||
Issuance of common shares (in shares) | shares | [1] | 320,000 | ||||||||||||
Translation adjustments | (214) | (214) | (30) | |||||||||||
Ending balance at Sep. 30, 2023 | ¥ 573,289 | $ 79,847 | ¥ (601,566) | $ (83,786) | ¥ (22,988) | $ (3,202) | ¥ (6,133) | $ (854) | ¥ (23,862) | $ (3,323) | ¥ (81,260) | $ (11,318) | ||
Ending balance (in shares) at Sep. 30, 2023 | shares | [1] | 6,321,107 | ||||||||||||
[1]Retrospectively restated for effect of reverse stock split |
CONSOLIDATED STATEMENTS OF EQ_2
CONSOLIDATED STATEMENTS OF EQUITY (Parenthetical) - Sep. 30, 2023 | Total | $ / ¥ |
CONSOLIDATED STATEMENTS OF EQUITY | ||
Foreign Currency Exchange Rate, Translation | 7.1798 | 7.0998 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Sep. 30, 2023 CNY (¥) | Sep. 30, 2023 USD ($) | Sep. 30, 2022 CNY (¥) | Sep. 30, 2021 CNY (¥) | |
Operating activities: | ||||
Net loss | ¥ 62,669 | $ 8,728 | ¥ 2,325 | ¥ (127,081) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||||
Depreciation and amortization | 4,031 | 561 | 3,901 | 8,279 |
Loss/(gain) on disposal of plant and equipment | 373 | 52 | 212 | (3,642) |
Gain on disposal of land use right | (6,426) | |||
Loss on termination of business disposal | (106) | |||
Gain on disposal of lease assets | (651) | (91) | ||
Loss on disposal of subsidiaries and assets | (69,529) | (9,684) | ||
Allowance for doubtful account | 0 | 0 | 401 | |
Allowance for due from related parties | 500 | 70 | 3,789 | |
Allowance for due from related party-noncurrent | 40,540 | |||
Recovery on receivables | (10) | (1) | (189) | |
Recovery on Due from related parties | (2,131) | |||
Impairment on intangible assets | 2,204 | 307 | 87 | |
Impairment on long-term equity investment | 1,490 | 208 | 2,906 | 5,957 |
Impairment on land use rights | 7,600 | |||
Impairment on plant and equipment | 60,652 | |||
Inventory write off | 7,976 | |||
Interest expense relief | (20,361) | (2,836) | ||
Share-based compensation expense | 1,163 | 162 | 1,038 | 10,952 |
Changes in operating assets and liabilities: | ||||
Accounts receivable | 1,654 | 230 | (359) | 3,040 |
Due from related parties | 4,842 | 674 | 3,183 | (10,663) |
Advances to suppliers | (51,458) | (7,167) | (14,223) | (4,616) |
Inventories | (10,933) | (1,523) | 2,072 | 1,414 |
Other current assets | (17,476) | (2,434) | (8,929) | (2,178) |
Operating lease right-of-use assets, net | (350) | (49) | ||
Other assets | 83 | 14 | ||
Accounts payable | 2,193 | 305 | 991 | (427) |
Due to growers | (6,269) | |||
Due to related parties | 18,856 | 2,626 | (2,388) | 1,588 |
Advances from customers | 50,048 | 6,971 | 14,797 | (18,847) |
Income tax payable | 0 | 0 | (135) | (28) |
Lease liabilities | 241 | 34 | (1,491) | (119) |
Other long-term liabilities | (2,270) | (316) | (1,486) | (7,357) |
Other payables and accrued expenses | 17,318 | 2,414 | 9,194 | 4,313 |
Net cash provided by (used in) operating activities | (5,456) | (759) | 3,291 | (25,077) |
Investing activities: | ||||
Proceeds from disposal of plant and equipment and land use right | (1,000) | |||
Proceeds from other investment | 1,000 | 139 | 1,520 | |
Purchase of plant and equipment | (8,912) | (1,241) | (622) | (715) |
Purchase of land use rights | (3,297) | (459) | ||
Due from related party-noncurrent | 1,706 | |||
Purchase of other investment | (2,000) | (1,200) | ||
Cash from termination of second closing of disposal of commercial seed business (note 4) | (15) | (2) | 0 | 0 |
Net cash (used in) provided by investing activities | (11,224) | (1,563) | (1,102) | (1,209) |
Financing activities: | ||||
Proceeds from exercise of stock options | 226 | 31 | 340 | 472 |
Proceeds from issuance of common stock | 19,594 | 2,729 | 11,014 | 17,166 |
Proceeds from due to related parties | 2,200 | |||
Repayment of due to related parties | (1,587) | (221) | (9,252) | |
Dividends paid to minority shareholders | (200) | (28) | (2,434) | |
Proceeds from capital contribution | 4,900 | 682 | ||
Net cash provided by (used in) financing activities | 22,933 | 3,193 | (332) | 19,838 |
Net (decrease) increase in cash and cash equivalents | 6,253 | 871 | 1,857 | (6,448) |
Cash and cash equivalents, beginning of year | 17,669 | 2,461 | 15,351 | 22,482 |
Effect of exchange rate changes on cash and cash equivalents | (214) | (30) | 447 | (816) |
Restricted cash | 14 | 133 | ||
Cash and cash equivalents, end of the year | 23,708 | 3,302 | 17,669 | 15,351 |
Supplemental disclosures of cash flow information: | ||||
NCI capital contribution | 5,575 | 776 | ||
Income taxes paid | 0 | 0 | 0 | 0 |
Interest paid, net of interest capitalized | ¥ 0 | $ 0 | ¥ 0 | ¥ 0 |
ORGANIZATION AND PRINCIPAL ACTI
ORGANIZATION AND PRINCIPAL ACTIVITIES | 12 Months Ended |
Sep. 30, 2023 | |
ORGANIZATION AND PRINCIPAL ACTIVITIES | |
ORGANIZATION AND PRINCIPAL ACTIVITIES | 1. ORGANIZATION AND PRINCIPAL ACTIVITIES Origin Agritech Limited (“Agritech”), incorporated under the laws of the British Virgin Islands, and its subsidiaries and variable interest entities are referred to in this report as “we”, “us”, “our”, or “the Company”. We are principally engaged in hybrid crop seed development, production and distribution business. As of September 30, 2023, the Company’s subsidiaries and variable interest entities included in continuing operations consisted of the following: Date of Place of Percentage Incorporation Incorporation of Principal Name or Establishment or Establishment Ownership Activity Subsidiaries: State Harvest Holdings Limited(“State Harvest”) October 6, 2004 British Virgin Islands 100 % Investment Holding OAL SMY Limited July 28, 2021 USA 100 % Investment Holding Beijing Origin State Harvest Biotechnology Limited (“BioTech”) December 1, 2004 People’s Republic of China (“PRC”) 100 % Hybrid seed technology development Variable interest entity: Hainan Aoyu Biotechnology Limited(Hainan Aoyu) March 2, 2022 PRC 100 % Hybrid crop seed development, production and distribution Subsidiaries held by Hainan Aoyu: Xinjiang Originbo Seed Company Limited (note ) (“Xinjiang Originbo”) July 13, 2011 PRC 70.52 % Hybrid crop seed development, production and distribution Subsidiaries held by State Harvest: Shandong Aoruixinong Agricultural Technology Limited (Shandong Aoruixinong) September 27, 2019 PRC 51 % Agricultural seed products distribution through e-commune network Hubei Aoyu Zhongye Limited (Hubei Aoyu) October 22, 2018 PRC 51 % Agricultural seed products distribution through e-commerce network Anhui Aoyu Zhongye Limited (Anhui Aoyu) July 25, 2018 PRC 50 % Agricultural seed products distribution through e-commerce network Xuzhou Aoyu Zhongye Limited (Xuzhou Aoyu) September 25, 2018 PRC 51 % Agricultural seed products distribution through e-commerce network Henan Aoyu Zhongye Limited (note (i)) (“Henan Aoyu”) July 16, 2018 PRC 51 % Agricultural seed products distribution through e-commerce network Henan Baodao Origin Agriculture and Animal Husbandry Co., Ltd (“Baodao Origin”) Nov 23, 2022 PRC 51 % Agricultural seed products distribution Subsidiary held by Baodao Origin: Shihezi Baodao Agriculture and Animal Husbandry Technology Co., Ltd March 8, 2023 PRC 100 % Agricultural seed and feed products distribution Reorganization of State Harvest prior to the share exchange transaction with Chardan China Acquisition Corp. (“Chardan”) On December 1, 2004, State Harvest established BioTech, a wholly-owned foreign enterprise (“WOFE”) under the laws of the PRC with an operating period of 20 years. Under PRC law, foreign entities are not currently permitted to own more than 49% of a seed production company. In order to address those restrictions, State Harvest conducts substantially all of its business through contractual agreements with its variable interest entity (“VIE”), Beijing Origin. These agreements are summarized in the following paragraphs. Stock Consignment Agreements Under Chinese law, foreign ownership of businesses engaged in the breeding of new varieties, development, production, marketing, distribution and sale of hybrid food crop seeds is limited to 49% pursuant to the Regulation on the Approval and Registration of Foreign Investment Enterprises in Agricultural Seed Industry and The Foreign Investment Industrial Guidance Catalogue. State Harvest, as a non-Chinese corporation, may not directly own more than 49% of any of the PRC Operating Companies. However, Chinese law does not forbid the owner of stock to consign rights associated with the stock, as long as the owner does not transfer title to the stock. To gain control over the PRC Operating Companies, State Harvest entered into a series of stock consignment agreements with shareholders of those companies. State Harvest has been assigned 98.58% voting rights by the shareholders of Beijing Origin through a consignment agreement which includes the following terms: (1) The shares of Beijing Origin cannot be transferred without the approval of State Harvest; (2) State Harvest has the right to appoint all directors and senior management personnel of Beijing Origin and (3) The shareholder rights including voting rights require the transfer of the shares of Beijing Origin to State Harvest or any party designated by State Harvest within three years upon the removal of the PRC legal restriction. Technical Service Agreements Beijing Origin entered into Technical Service Agreements with BioTech dated December 25, 2004. Under these agreements, BioTech shall provide, with its own technical research resource and team, technical services for the production and distribution of agricultural seeds during the period of the agreements. In return, Beijing Origin is required to pay BioTech a service fee calculated according to the weight of corn, rice and cotton seeds sold by the Beijing Origin. Through the contractual agreements described above, State Harvest is deemed the sole beneficiary of Beijing Origin resulting in Beijing Origin being deemed a subsidiary of State Harvest under the requirements of Financial Accounting Standards Board (“FASB”) Accounting Standard Codification (“ASC”) 810-10-05. The agreements described above provided for effective control of Beijing Origin to be transferred to State Harvest at December 25, 2004. Neither State Harvest nor BioTech had any operating activity prior to entering into the consignment agreements with Beijing Origin. In substance, State Harvest has substantially all the same shareholders of Beijing Origin. This transaction has been accounted for on a basis similar to reorganization between entities under common control. Accordingly, State Harvest’s consolidated financial statements are prepared by including the consolidated financial statements of Beijing Origin through December 24, 2004, and subsequently the Company’s consolidated financial statements include the financial statements of State Harvest, its majority owned subsidiary and Beijing Origin through the date of the Share Exchange Transaction. Risks in relation to the VIE structure Two of our PRC operating subsidiaries are controlled subsidiaries through stock consignment agreements rather than by direct ownership of shares, the terms of which may have to be enforced, which would require us to incur extra costs, create uncertainty as to ownership of the operating businesses involved and risk the possible loss of rights. There is the risk, however, that a consigning shareholder will not fulfill its obligations under the stock consignment agreement. In that event, we may need to resort to the PRC courts to have our rights under the applicable agreement enforced. Such enforcement will cause us to incur legal expenses. In addition, while a case is pending there will be uncertainty regarding our rights as to the three PRC operating subsidiaries involved. In addition, a PRC court may decide not to enforce the agreements in whole or in part. To the extent these agreements are neither observed nor enforced as intended, the PRC operating subsidiaries will not be controlled by us as intended, which will affect our enterprise value and restrict our ability to obtain the income and other rights of ownership associated with the consigned stock. It may also prevent the consolidation of our financial statements with the PRC operating subsidiaries, which would reduce the reported earnings of the consolidated companies. The uncertainty of ownership may also adversely affect the market value of our ordinary shares. Whether or not a stock consignment agreement is terminated depends on the consensus of our Board and the consignees. Any such termination could result in a possible loss of certain rights or assets held by us without receiving fair value in return. The stock consignment agreements relating to our control of the stock of our PRC operating subsidiaries may be terminated after three years upon mutual agreement between us and the consignees. Holding this amount of stock will allow these officers to control or greatly influence the selection of directors and matters submitted to a vote of our shareholders, including voting to terminate the stock consignment agreements. There are corporate protections in place designed to protect our interests, such as an independent Board of Directors, an audit committee comprised of independent directors that must approve insider transactions, a code of conduct requiring fair dealing with the Company, and the British Virgin Islands statutory provision that a disposition of more than 50% of the assets of a company must be approved by a majority of the shareholders. Moreover, if consigned stock is transferred to us as provided in the stock consignment agreements when the restrictions under PRC law are lifted, that stock will no longer be subject to the stock consignment agreements, and the termination of the stock consignment agreements would then have no effect on the ownership of that stock. However, if the stock consignment agreements are terminated, then we would lose our rights with respect to the consigned stock and the profits from the issuing corporation. Such a loss would impair the value of the Company and would reduce our ability to generate revenues. The Company has aggregated the financial information of Beijing Origin and its subsidiaries in the table below. The aggregated carrying amount of assets and liabilities of Beijing Origin and its subsidiaries after elimination of intercompany transactions and balances consolidated in the Company’s consolidated balance sheets as of September 30, 2022 and 2023 are as follows: Risks in relation to the VIE structure (Beijing Origin Consolidated Balance Sheet) September 30, 2022 2023 2023 RMB RMB US$ ASSETS Current Assets Cash and cash equivalents 950 2,142 298 Due from related party — — — Accounts receivable 304 189 26 Advances to suppliers 8,456 64,502 8,984 Inventories — 2,511 350 Other current assets 7,698 929 129 Total current assets 17,408 70,273 9,787 Land use rights, net 1,792 — — Plant and equipment, net 32,952 18,771 2,614 Equity investments — 130,541 18,182 Other assets 1,554 1,192 166 Total assets 53,706 220,777 30,749 LIABILITIES Current liabilities Current portion of long-term borrowings 137,660 — — Accounts payable 10,064 318 44 Due to growers 404 404 56 Due to related parties 24,136 6,205 864 Advances from customers 29,420 76,936 10,716 Other payables and accrued expenses 58,954 1,266 176 Total current liabilities 260,638 85,129 11,856 Other long-term liability 15,732 6,177 860 Total liabilities 276,370 91,306 12,716 As of September 30, 2022 and 2023, consolidated assets of RMB 53.7 million and RMB 220.8 million, respectively, are collateral for the VIE’s obligations and may not be used to settle the liabilities of the Parent Company. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Sep. 30, 2023 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Principles of consolidation The consolidated financial statements of the Company are prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”); include the assets, liabilities, revenues, expenses and cash flows of all subsidiaries and variable interest entities. Intercompany balances, transactions and cash flows are eliminated on consolidation. Liquidity and Going Concern 2022 2023 The Company incurred net income(losses) of 2,325 62,669 Working capital deficit 211,325 171,678 Accumulated deficit 656,898 601,566 The Company incurred net income of RMB62.7million in the year ended September 30, 2023. Working capital deficit was RMB 171.6 There are new hybrids completed variety trails and will be in the market this season. Furthermore nutrition enhanced corn will be produced for animal feed which will greatly increase the revenue. Besides the aforementioned cash inflows, the Company is also seeking funds from other resources including but not limited to licensing its core seed traits to its customers, applying for more government grants for research and development activities, pursuing other capital investment from investors and selling certain company assets. The Company consistently reviews its working capital requirements. Despite the Company’s effort to obtain additional funding and reduce operating costs, there is no assurance that the Company’s plans and actions will be successful. In addition, there can be no assurance that in the event additional sources of funds are needed they will be available on acceptable terms, if at all. The accompanying financial statements do not include any adjustments that might be necessary should we be unable to continue as a going concern. Convenience translation into United States dollars The consolidated financial statements are reported in Renminbi. The translation of Renminbi amounts into United States dollar amounts has been made for the convenience of the reader and has been made at the exchange rate quoted by the middle rate by the State Administration of Foreign Exchange in China on September 30, 2023 of RMB 7.0998 to US $1.00. Such translation amounts should not be construed as representations that the Renminbi amounts could be readily converted into United States dollar amounts at that rate or any other rate. Use of estimates The preparation of the consolidated financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Estimates are adjusted to reflect actual experience when necessary. Significant accounting estimates reflected in the Company’s consolidated financial statements include inventory valuation, collectability evaluation of accounts receivables and due from related parties, useful lives of plant and equipment and acquired intangible assets, the valuation allowance for deferred income tax assets, valuation of long-lived assets and share-based compensation expense. Actual results could differ from those estimates. Cash and cash equivalents Cash and cash equivalents consist of cash on hand, cash accounts, interest bearing savings accounts, time certificates of deposit and debt securities with a maturities of three months or less when purchased. Inventories Inventories are stated at the lower of cost, determined by weighted-average method, or net realizable value. Work-in-progress and finished goods inventories consist of raw materials, direct labor and overhead associated with the manufacturing process. Parent seed represents the seeds that are used for research and development activities. The Company periodically performs an analysis of inventory to determine obsolete or slow-moving inventory and determine if its cost exceeds the estimated market value. Write down of potentially obsolete or slow-moving inventory are recorded based on management’s analysis of inventory levels. Land use rights, net Land use rights are recorded at cost less accumulated amortization. Amortization is provided over the term of the land use right agreements on a straight-line basis for the beneficial period, which is 50 years. Plant and equipment, net Plant and equipment are recorded at cost less accumulated depreciation and amortization. Maintenance and repairs are charged to expense as incurred. Depreciation is calculated on a straight-line basis over the following estimated useful lives: Plant and building 20-40 years Machinery and equipment 10-15 years Furniture and office equipment 5-8 years Motor vehicles 5-10 years Leasehold improvements Shorter of the useful lives or the lease term The Company constructs certain of its facilities. In addition to costs under construction contracts, external costs directly related to the construction of such facilities, including duty and tariff, and equipment installation and shipping costs, are capitalized. Depreciation is recorded at the time assets are placed in service. Acquired intangible assets, net Acquired intangible assets primarily consist of purchased technology rights and distribution network and are stated at cost less accumulated amortization. Amortization is calculated on a straight-line basis over the estimated useful lives of these assets and recorded in operating expenses. Amortization is calculated on a straight-line basis over the following estimated useful lives for the main acquired intangible assets: Technology rights for licensed seeds 3-20 years Distribution network 6-14 years Trademark Indefinite Trademarks, which have indefinite lives are not amortized but are reviewed for impairment at least annually, at year end date, or earlier upon the occurrence of certain triggering events. The Company has performed an impairment analysis on the acquired intangible assets in Beijing Origin and recorded no impairment provision during the year ended September 30, 2023. Leases The Company leases certain office space and equipment from third-parties. Leases with an initial term of 12 months or less are not recorded on the balance sheet and lease expense is recognized on a straight-line basis over the lease term. For leases beginning in 2019 and later, at the inception of a contract management assesses whether the contract is, or contains, a lease. The assessment is based on: (1) whether the contract involves the use of a distinct identified asset, (2) whether the right to substantially all the economic benefit from the use of the asset throughout the period is obtained, and (3) whether the Company has the right to direct the use of the asset. At the inception of a lease, management allocates the consideration in the contract to each lease component based on its relative stand-alone price to determine the lease payments. The Company accounts for lease components (e.g., fixed payments including rent, real estate taxes and insurance costs) separately from the nonlease components (e.g., common-area maintenance costs). Most leases include one or more options to renew, with renewal terms that can extend the lease term from one year or more. The exercise of lease renewal options is at the Company’s sole discretion. Renewal periods are included in the lease term only when renewal is reasonably certain, which is a high threshold and requires management to apply judgment to determine the appropriate lease term. The Company’s leases do not include options to purchase the leased property. The depreciable life of assets and leasehold improvements are limited by the expected lease term. Certain lease agreements include rental payments adjusted periodically for inflation. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants. All of the Company’s leases are classified as operating leases. The Company has elected not to recognize right-of-use assets and lease liabilities for short-term leases that have a term of 12 months or less. The effect of short-term leases and initial direct costs on our right-of-use asset and lease liability was not material. ASC 842 requires the Company to make certain assumptions and judgments in applying the guidance, including determining whether an arrangement includes a lease, determining the term of a lease when the contract has renewal or cancellation provisions, and determining the discount rate. As the rate implicit in the lease is not usually available, the Company used an incremental borrowing rate based on the information available at the adoption date of ASC 842 in determining the present value of lease payments for existing leases. The Company will use information available at the lease commencement date to determine the discount rate for any new leases. The Company leases certain office space to third-parties. An operating lease is neither a sale nor financing of an asset. The Company keeps the asset underlying the lease on its balance sheet and continue to depreciate the asset based on its estimated useful life. Rental revenue should be recognized on a straight-line basis (or another systematic basis if that basis is more representative of the pattern in which income is earned from the underlying asset over the term of the respective lease). A lessor should record an unbilled rent receivable, which is the amount by which straight-line rental revenue exceeds rents currently billed in accordance with the lease. Long-term investments We utilize the measurement alternative for equity investments that do not have readily determinable fair values and measure these investments at cost less impairment plus or minus observable price changes in orderly transactions for an identical or similar investment of the same issuer. We classify our investments as non-current assets on the consolidated balance sheets as those investments do not have stated contractual maturity dates. We periodically review our equity investments for impairment. We consider impairment indicators such as negative changes in industry and market conditions, financial performance, business prospects, and other relevant events and factors. If indicators exist and the fair value of the security is below the carrying amount, we write down the security to fair value. Valuation of long-lived asset The Company reviews the carrying value of long-lived assets to be held and used, including other intangible assets subject to amortization, when events and circumstances warrants such a review. The carrying value of a long-lived asset is considered impaired when the anticipated undiscounted cash flow from such asset is separately identifiable and is less than its carrying value. In that event, a loss is recognized based on the amount by which the carrying value exceeds the fair market value of the long-lived asset and intangible assets. Fair market value is determined primarily using the anticipated cash flows discounted at a rate commensurate with the risk involved. Losses on long-lived assets and intangible assets to be disposed are determined in a similar manner, except that fair market values are reduced for the cost to dispose. Revenue recognition The Company derives most of its revenue from hybrid corn seed. The Company adopted ASU 2014-09, “Revenue from Contracts with Customers (Topic 606),” and the associated ASUs (collectively, “Topic 606”). The Company recognizes revenue when its customer obtains control of promised goods or services in an amount that reflects the consideration which the Company expects to receive in exchange for those goods or services. To determine revenue recognition for the arrangements that the Company determines are within the scope of Topic 606, the Company performs the following five steps: (1) identify the contract(s) with a customer, (2) identify the performance obligations in the contract, (3) determine the transaction price, (4) allocate the transaction price to the performance obligations in the contract and (5) recognize revenue when (or as) the entity satisfies a performance obligation. The majority of the Company’s customer contracts, which may be in the form of purchase orders, contracts or purchase agreements, contain performance obligations for delivery of agreed upon goods. Delivery of all performance obligations contained within a contract with a customer typically occurs at the same time. The Company also makes accounting policy elections to 1) treat shipping and handling activities that occur after the customer obtains control of the goods as fulfillment costs and 2) exclude sales (and similar) taxes from the measurement of the transaction price. Government subsidies 2022 2023 Government subsidies received — 1,145 Government subsidies recognized as other income 1,158.00 2,271 A government subsidy is not recognized until there is reasonable assurance that: (a) the enterprise will comply with the conditions attached to the grant; and (b) the grant will be received. When the Company received the government subsidies but the conditions attached to the grants have not been fulfilled, such government subsidies are deferred and recorded under other payables and accrued expenses, and other long-term liability. The reclassification of short-term or long-term liabilities is depended on the management’s expectation of when the conditions attached to the grant can be fulfilled. Cost of revenues Cost of revenues consists of expenses directly related to sales, including the purchase prices and development costs for seeds and, agricultural chemical products, depreciation and amortization, impairment of inventory, shipping and handling costs, salary and compensation, supplies, and license fees. Research and development costs Research and development costs relating to the development of new products and processes, including significant improvements and refinements to existing products, are expensed as incurred. Advertising costs Advertising costs are expensed when incurred and included in selling and marketing expenses. For the years ended September 30, 2021, 2022 and 2023, advertising costs were RMB-nil-, RMB-nil- and RMB-nil-, respectively. Borrowing cost Borrowing costs attributable directly to the acquisition, construction or production of qualifying assets which require a substantial period of time to be ready for their intended use or sale, are capitalized as part of the cost of those assets. Income earned on temporary investments of specific borrowings pending their expenditure on those assets is deducted from borrowing costs capitalized. All other borrowing costs are recognized in interest expenses in the statement of income and comprehensive income in the period in which they are incurred. Allowance for doubtful account The Company regularly monitors and assesses the risk of not collecting amounts owed to the Company by customers. This evaluation is based upon a variety of factors including: an analysis of amounts current and past due along with relevant history and facts particular to the customer. Based on the result of this analysis, the Company records an allowance for doubtful accounts RMB 401, RMB- nil- and RMB- nil-,for the years ended September 30, 2021, 2022, and 2023, respectively. Income taxes Deferred income taxes are recognized for the future tax consequences of temporary differences between the tax bases of assets and liabilities and their reported amounts in the consolidated financial statements, net of operating loss carry forwards and credits. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Current income taxes are provided for in accordance with the laws of the relevant tax authorities. The Company adopted FASB ASC 740-10. The Company’s policy on classification of all interest and penalties related to unrecognized tax benefits, if any, as a component of income tax provisions. Foreign currency translation The functional currency of the Company excluding Agritech (Parent) and State Harvest is Renminbi. Monetary assets and liabilities denominated in currencies other than Renminbi are translated into Renminbi at the rates of exchange ruling at the balance sheet date. Transactions in currencies other than Renminbi are converted into Renminbi at the applicable rates of exchange prevailing the transactions occurred. Transaction gains and losses are recognized in the consolidated statements of income (loss) and comprehensive income (loss). The functional currency of Agritech (Parent) and State Harvest are maintained in United State dollars. Assets and liabilities are translated at the exchange rates at the balance sheet date, equity accounts are translated at historical exchange rates and revenues, expenses, gains and losses are translated using the average rate for the period. Translation adjustments are reported as cumulative translation adjustments and are shown as a separate component of other comprehensive (loss)/income. The Company has chosen Renminbi as its reporting currency. Comprehensive income (loss) Comprehensive income (loss) is defined to include all changes in equity except those resulting from investments by owners and distributions to owners. Comprehensive income (loss) for the years has been disclosed within the consolidated statements of income and comprehensive income for presentational purpose of the disclosure of comprehensive income (loss) attributable to Agritech and the non-controlling interests respectively. Earnings (loss) per share Basic earnings (loss) per share is computed by dividing net income (loss) by the weighted average number of common shares outstanding during the years. Diluted earnings (loss) per share gives effect to all dilutive potential common shares outstanding during the years. The weighted average number of common shares outstanding is adjusted to include the number of additional common shares that would have been outstanding if the dilutive potential common shares had been issued. In computing the dilutive effect of potential common shares, the average stock price for the period is used in determining the number of treasury shares assumed to be purchased with the proceeds from the exercise of options. Share-based compensation ASC 718-10 requires that share-based payment transactions with employees and nonemployees, such as share options, be measured based on the grant-date fair value of the equity instrument issued and recognized as compensation expense over the requisite service period, with a corresponding addition to equity. Under this method, compensation cost related to employee share options or similar equity instruments is measured at the grant date based on the fair value of the award and is recognized over the period during which an employee is required to provide service in exchange for the award, which generally is the vesting period. Fair value measurement The Company adopted FASB ASC 820-10, and which defines fair value, establishes a framework for measuring fair value in GAAP, and expands disclosures about fair value measurements. ASC 820-10 does not require any new fair value measurements, but provides guidance on how to measure fair value by providing a fair value hierarchy used to classify the source of the information. ASC 820-10 establishes a three-level valuation hierarchy of valuation techniques based on observable and unobservable inputs, which may be used to measure fair value and include the following: Level 1 - Quoted prices in active markets for identical assets or liabilities. Level 2 - Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 - Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Classification within the hierarchy is determined based on the lowest level of input that is significant to the fair value measurement. Deconsolidation of subsidiary In accordance with ASC 810-40, deconsolidation of a subsidiary occurs when: (a) some or all of the ownership interests of the subsidiary are sold resulting in the loss of a controlling financial interest; (b) a contractual agreement granting control of the subsidiary expires; (c) the subsidiary issues its shares to outsiders reducing the parent’s ownership interest resulting in the loss of a controlling financial interest; or (d) the subsidiary becomes subject to the control of a government, court, administrator or regulator. The parent should recognize a gain or loss measured as the difference between: (a) the aggregate of: (i) the fair value of any consideration received, (ii) the fair value of any retained non-controlling interest, and (iii) the carrying amount of any non-controlling interest at the date the subsidiary is deconsolidated; and (b) the carrying amount of the subsidiary’s assets and liabilities. A subsidiary should be deconsolidated from the date a controlling financial interest is lost and should also consider the equity components included in the non-controlling interest and the amounts previously recognized in accumulated other comprehensive income (loss), i.e., the foreign currency translation adjustment. Investments in equity method investee Equity investments are comprised of investments in privately held companies. The Company uses the equity method to account for an equity investment over which it has the ability to exert significant influence but does not otherwise have control. The Company records equity method investments at the cost of acquisition, plus the Company’s share in undistributed earnings and losses since acquisition. For equity investments over which the Company does not have significant influence or control, the cost method of accounting is used. If the Company’s share of the undistributed losses exceeds the carrying amount of an investment accounted for by the equity method, the Company continues to report losses up to the investment carrying amount, including any loans balance due from the equity investees. The Company assesses its equity investments for impairment on a periodic basis by considering factors including, but not limited to, current economic and market conditions, the operating performance of the investees including current earnings trends, the technological feasibility of the investee’s products and technologies, the general market conditions in the investee’s industry or geographic area, factors related to the investee’s ability to remain in business, such as the investee’s liquidity, debt ratios, cash burn rate, and other company-specific information including recent financing rounds. If it has been determined that the equity investment is less than its related fair value and that this decline is other-than-temporary, the carrying value of the investment is adjusted downward to reflect these declines in value. Recently issued accounting pronouncements ● In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. Financial Instruments—Credit Losses (Topic 326) amends guideline on reporting credit losses for assets held at amortized cost basis and available-for-sale debt securities. For assets held at amortized cost basis, Topic 326 eliminates the probable initial recognition threshold in current GAAP and, instead, requires an entity to reflect its current estimate of all expected credit losses. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of the financial assets to present the net amount expected to be collected. For available-for-sale debt securities, credit losses should be measured in a manner similar to current GAAP, however Topic 326 will require that credit losses be presented as an allowance rather than as a write-down. ASU No. 2016-13 affects entities holding financial assets and net investment in leases that are not accounted for at fair value through net income. The amendments affect loans, debt securities, trade receivables, net investments in leases, off balance sheet credit exposures, reinsurance receivables, and any other financial assets not excluded from the scope that have the contractual right to receive cash. The amendments in this ASU is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. The Company does not expect the adoption of ASU No. 2016-13 will have a material impact on its consolidated financial statements. The Company believes that other recent accounting pronouncement updates will not have a material effect on the Company’s consolidated financial statements. |
RELATED PARTY BALANCES AND TRAN
RELATED PARTY BALANCES AND TRANSACTIONS | 12 Months Ended |
Sep. 30, 2023 | |
RELATED PARTY BALANCES AND TRANSACTIONS | |
RELATED PARTY BALANCES AND TRANSACTIONS | 3. RELATED PARTY BALANCES AND TRANSACTIONS (In RMB’000) (1) Related party relationships Name of related parties Relationship Beijing Shihui(i) Being owned by close family members of the Company’s Chairman Linze Origin Seeds Ltd.(i) Being owned by close family members of the Company’s Chairman Henan Yingde Agricultural Ltd. Being owned by close family members of the Company’s Chairman Beijing Liantaide Biotechnology Co., Ltd. Being owned by close family members of the Company’s Chairman Beijing Agrite Co., Ltd. Being owned by close family members of the Company’s Chairman Fifth Division State-owned Assets Management and Operation Co., Ltd Being the non-controlling interest of Xinjiang Origin Shareholders Non-controlling shareholders of Hubei Aoyu, Anhui Aoyu, Xuzhou Aoyu, Shandong Aoruixinong, Henan Aoyu, Shandong Aoruixinong (i) (1) Due from related parties, net of bad debt allowance September 30, 2022 2023 RMB RMB Linze Origin Seeds Ltd 45 45 Beijing Shihui (iii) 29,998 17,060 Shareholders (i) 9,165 5,336 Henan Yingde Agricultural Ltd. 11,529 — Beijing Liantaide (ii) 7,466 9,046 Beijing Origin — 450 The Company’s Chairman (iv) — 5,999 The Close family of the Company’s Chairman 6 6 Total 58,125 37,942 Allowance for doubtful account 29,998 17,560 Due from related parties, net 28,127 20,382 Note (i): As of September 30, 2023, the balance of due from shareholders include seed sales amounted RMB 15, advances for business use amounted RMB 4,421 and advances for purchases raw materials amounted RMB 900. Note (ii): As of September 30, 2023, the balance of due from shareholders is advances for purchases raw materials amounted RMB 9,046. Note (iii): As of September 30, 2023, the Company provide cash to fund the related party, Beijing Shihui’s operations amounted RMB 17,060. The Company made fully allowance of due from related party as of September 30, 2023. Note (iv): As of September 30, 2023, the balance of due from the Company’s Chairman is advances to staff for business use amounted RMB 5,999. (2) Due to related parties September 30, 2022 2023 RMB RMB Linze Origin Seeds Ltd 300 — Henan Agriculture University 1,000 — Xinjiang Ginbo Seeds Center 54 54 Companies controlled by the Company’s directors (i) 1,702 1,721 Shareholders (i) (ii) 10,123 15,434 Beijing Origin (iii) — 148,219 The Company’s Chairman (i) 970 3,657 YingDe(i) 187 5,399 The close family of the Company’s Chairman 4,293 — 18,629 174,484 Note (i): In the ordinary course of business, the Company purchases raw materials from and sells product to related parties, and related parties also provide cash to fund the Company’s operations. Note (ii): As of September 30, 2023, the balance of due to shareholders include borrowing amounted RMB 5,381 , which is unsecured, interest-bearing (the borrowing interest rate is from 5.8% to 12% ) and repayable on demand, accrued interest amounted use amounted RMB 354 and advances from shareholders of selling seed amounted RMB 9,699 . Note (iii): As of September 30, 2023, Beijing Origin, an associate, provide cash to fund the Company’s operations amounted RMB 148,219, which is unsecured, interest-free and repayable on demand. (3) Transactions with related parties (a) Sales to Year ended September 30, 2021 2022 2023 RMB RMB RMB YingDe 3,134 1,818 6,384 Shareholders (i) 4,701 3,574 4,677 Henan Agriculture University — 5 — The close family of the Company’s Chairman — 2,618 — 7,835 8,015 11,061 Note(i): RMB4,677 and RMB of the Company for the year ended September 30, 2023, respectively, are derived from shareholders and the sales price is market price. (b) Purchase from Year ended September 30, 2021 2022 2023 RMB RMB RMB YingDe 11,700 14,012 162 Linze Origin Seeds Limited 4,706 — — Beijing Shihui 360 — — Liantaide — 9,708 6,334 Close family of the Company’s Chairman 333 29 — Shareholders 2,227 — — 19,326 23,749 6,496 |
ADVANCES TO SUPPLIERS
ADVANCES TO SUPPLIERS | 12 Months Ended |
Sep. 30, 2023 | |
ADVANCES TO SUPPLIERS | |
ADVANCES TO SUPPLIERS | 5. ADVANCES TO SUPPLIERS September 30, 2022 2023 RMB RMB Prepayments for purchasing seed 18,378 67,048 Prepayments for purchasing package 630 163 Deposits for research and development fee 207 107 Others 807 4,299 20,022 71,617 |
INVENTORIES
INVENTORIES | 12 Months Ended |
Sep. 30, 2023 | |
INVENTORIES | |
INVENTORIES | 6. INVENTORIES As of September 30, 2022 and 2023, inventories are comprised of work in progress of RMB 2.1 million and RMB 13 September 30, 2022 2023 RMB RMB Work in progress 2,106 13,039 |
OTHER CURRENT ASSETS
OTHER CURRENT ASSETS | 12 Months Ended |
Sep. 30, 2023 | |
OTHER CURRENT ASSETS | |
OTHER CURRENT ASSETS | 7. OTHER CURRENT ASSETS September 30, 2022 2023 RMB RMB Advances to staff for business use 680 1,756 Rental receivable 7,663 — Receivable from third party (i) 1,300 9,823 Others 3,354 618 12,997 12,197 Note (i) : As of September 30, 2023, receivable from third party mainly represents the borrowing of the third party from the Company. |
LAND USE RIGHTS, NET
LAND USE RIGHTS, NET | 12 Months Ended |
Sep. 30, 2023 | |
LAND USE RIGHTS, NET | |
LAND USE RIGHTS, NET | 8. LAND USE RIGHTS, NET Land use rights, net consist of the following: September 30, 2022 2023 RMB RMB Land use rights 16,564 16,781 Accumulated amortization (4,468) (3,219) Impairment provision (10,304) (10,304) Land use rights, net 1,792 3,258 The depreciation expenses for the years ended September 30, 2022 and 2023 were RMB331 and RMB95 respectively. The disposal of Beijing Origin led to decrease in Accumulated amortization. |
PLANT AND EQUIPMENT, NET
PLANT AND EQUIPMENT, NET | 12 Months Ended |
Sep. 30, 2023 | |
PLANT AND EQUIPMENT, NET | |
PLANT AND EQUIPMENT, NET | 9. PLANT AND EQUIPMENT, NET Plant and equipment, net consist of the following: September 30, 2022 2023 RMB RMB Plant and building 143,808 100,478 Machinery and equipment 73,357 70,398 Furniture and office equipment 12,367 12,035 Motor vehicles 3,590 3,735 Accumulated depreciation (76,196) (57,257) Accumulated impairment (110,537) (110,537) Construction in progress — 2,250 Plant and equipment, net 46,389 21,102 The depreciation expenses for the years ended September 30, 2022 and 2023 were RMB2.7 million and RMB 3.13 million respectively. The disposal of Beijing Origin led to decrease in Accumulated depreciation. |
LONG TERM INVESTMENTS
LONG TERM INVESTMENTS | 12 Months Ended |
Sep. 30, 2023 | |
LONG TERM INVESTMENTS | |
LONG TERM INVESTMENTS | 10. LONG TERM INVESTMENTS The Company owns 17.94% equity interest in Jilin Jinong Hi-tech Development Shares Co. Ltd. (“Jinong”) and accounted for the equity investment without readily determinable fair value (previously known as cost method investment) as of September 30, 2022 and 2023. The Company owns 20% equity interest in Nianfeng Minfu (Beijing) Agricultural Science and Technology Development Co., Ltd. (“Nianfeng Minfu”) The Company owns 48.27% equity interest in Beijing Origin which deconsolidated during fiscal year 2023 and changed to equity method investment. The Company recorded an impairment on cost method investment of RMB17.2 million and RMB 18.7 million on its equity investment without readily determinable fair value for the years ended September 30, 2022 and 2023, respectively. September 30, 2022 2023 RMB RMB Cost method investment 18,921 18,921 Equity investment(i) — 66,448 Impairment on cost method investment (17,231) (18,721) 1,690 66,648 Note (i) : It is represents that the cost method investment amounted RMB 37.66 million and fair value adjustment amounted RMB 28.79 million disclosed in Note 20. |
ACQUIRED INTANGIBLE ASSETS, NET
ACQUIRED INTANGIBLE ASSETS, NET | 12 Months Ended |
Sep. 30, 2023 | |
ACQUIRED INTANGIBLE ASSETS, NET | |
ACQUIRED INTANGIBLE ASSETS, NET | 11. ACQUIRED INTANGIBLE ASSETS, NET Acquired intangible assets, net consist of the following: September 30, 2022 2023 RMB RMB Technology rights for licensed seeds 75,899 72,748 Others 4,739 4,739 80,638 77,487 Accumulated amortization (73,092) (73,877) Impairment provision (4,557) (3,610) Acquired intangible assets, net 2,989 — Amortization expenses for the years ended September 30, 2022 and 2023 were RMB0.79 million, and RMB 0.79 million respectively. The Company incurred impairment of acquired intangible assets of RMB 2.2 million for the year ended September 30, 2023. Then the acquired intangible assets, net is zero as of September 30, 2023. The Company enters into technology transfer and usage agreements with strategic partners and pays up-front fees for the exclusive rights to certain seed technologies. Technology rights are amortized over an average usage period of 3 to 20 years and are charged to general and administrative expenses. |
LEASES
LEASES | 12 Months Ended |
Sep. 30, 2023 | |
LEASES | |
LEASES | 12. LEASES As of September 30, 2023, the Company’s operating lease right of use assets and operating lease liability are RMB 580 The following table summarizes the components of lease expense: Year ending September 30, RMB Operating lease cost 241 Short-term lease cost — Total 6 The following table summarizes supplemental information related to leases: Year ended September 30, Cash paid for amounts included in the measurement of lease liabilities: RMB Operating cash flows from operating leases — As of September 30, 2023, the Company was obligated under the maturity of operating lease liabilities as follows: Year ending September 30, RMB 2024 178 2025 63 2026 — 2027 — 2028 — Thereafter — 241 |
OTHER PAYABLES AND ACCRUED EXPE
OTHER PAYABLES AND ACCRUED EXPENSES | 12 Months Ended |
Sep. 30, 2023 | |
OTHER PAYABLES AND ACCRUED EXPENSES | |
OTHER PAYABLES AND ACCRUED EXPENSES | 13. OTHER PAYABLES AND ACCRUED EXPENSES Other payables and accrued expenses consist of: September 30, 2022 2023 RMB RMB Payable for purchase of plant and equipment 5,789 1,000 1,420.0 1,580 Salaries and bonus payable 4,908 7,626 Accrued interest 20,388 — Other taxes payable 4,159 — Deposits from others 4,689 — Deferred government subsidies 887 363 Payable for penalty 12,734 — Others (i) 9,958 7,376 64,932 17,945 Note (i) : As of September 30, 2023, others mainly represents that the third party provide cash to fund the Company’s operations amounted RMB 7,376. |
OTHER LONG-TERM LIABILITY
OTHER LONG-TERM LIABILITY | 12 Months Ended |
Sep. 30, 2023 | |
OTHER LONG-TERM LIABILITY | |
OTHER LONG-TERM LIABILITY | 14. OTHER LONG-TERM LIABILITY In fiscal year 2023, the Company didn’t receive government subsidies from the local PRC government for equipment projects. The non-current portion of such government subsidies are recorded as long-term liability, which will be amortized over the estimated useful lives related to the plant and equipment and land use right. The increase in deferred government subsidies was due to reclassification from other payable account. |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 12 Months Ended |
Sep. 30, 2023 | |
STOCK-BASED COMPENSATION | |
STOCK-BASED COMPENSATION | 15. STOCK-BASED COMPENSATION on April 14, 2021 the Company granted its employees options to purchase 160,000 ordinary shares at the price of US$13.99 (“Tranche 21”). On Jan 3, 2022 the Company granted its employees options to purchase 40,000 ordinary shares at the price of US$7.23. On May 22 2023, the Company granted its employees options to purchase 38,000 ordinary shares at the price of US$6.79. All the options have an expiration date that is 5 to 10 years from the date of grant and vest immediately or over a period of 1 to 5 years. 33,000 and -nil- options under the 2009 Plan, and 284,370 and 303,060 options under the 2014 Plan were outstanding as of September 30, 2022 and 2023 respectively. All the option awards have an exercise price of US$5.19 to US$20.7 and expire 5 to 10 years from the date of grant and vest immediately or over a period of 1 to 10 years. For the options outstanding at September 30, 2022 and 2023, the weighted average remaining contractual lives are 0.26 and– nil The Company recorded share-based compensation expense for share options of RMB0.66 million and RMB 10.95 million and RMB1.04 million for the years ended September 30, 2021, 2022 and 2023 respectively. As of September 30, 2022 and 2023, there were RMB-nil- and RMB 0.17 million of total unrecognized compensation expense related to non-vested share-based compensation arrangement under the 2014 Plan. Under the term of the 2014 Plan, on March 1, 2018, June 1, 2018 and September 1, 2018 the Company granted total of 22,500 restricted shares to its management at an aggregate value of US$167,925, based on the stock closing price of US$8.6, US$7.2 and US$6.6 at March 1, 2018, June 1, 2018 and September 1, 2018, respectively. The vesting period of these shares was 1 year from the grant date, which is March 1, 2019, June 1, 2019 and September 1, 2019, respectively. The Company issued a total of 320,000 restricted shares to its management and employees during the year ended September 30, 2020. The Company recorded share-based compensation expense for restricted shares of RMB11.6 million, RMB -nil- and RMB -nil- for the years ended September 30, 2021, 2022 and 2023, respectively. During the fiscal year ended September 30, 2020, we awarded an aggregate of 30,000 treasury stock shares to its employees and recorded share-based compensation expense of RMB1,595, and resulted in decrease RMB7,212 cost of treasury stocks. During the fiscal year ended September 30, 2022, we awarded an aggregate of 14,386 treasury stock shares to its employees, and resulted in decrease RMB4,223 cost of treasury stocks. We didn’t award any treasury stock shares in the fiscal year ended September 30, 2023. A summary of the stock option activity under the 2009 and 2014 Plans is as follows: Tranche Tranche Tranche Tranche Tranche Tranche Tranche Tranche Tranche Tranche Tranche Tranche Tranche Tranche 11 12 13 14 15 16 17 18 19 20 21 22 23 24 January 4, April 19, May 16, August 3, January 3, October 2, December 22, January 2, March 1, January 2, January 2, April 14, January 3, May 22, Grant date 2016 2016 2016 2016 2017 2017 2017 2018 2018 2019 2020 2021 2022 2023 Outstanding as of September 30, 2020 13,500 60,000 20,000 20,000 18,000 2,500 8,800 29,000 20,000 36,000 38,000 — — — Number of options granted — — — — — — — — — — — 160,000 — — Options exercised — — — — — — (1,000) — — — — (20,930) — — Options cancelled/expired (1,000) (60,000) (20,000) (20,000) — (2,500) (6,000) (10,000) — — — — — — Outstanding as of September 30, 2021 12,500 — — — 18,000 — 1,800 19,000 20,000 36,000 38,000 139,070 — — Number of options granted — — — — — — — — — — — — 40,000 — Options exercised — — — — — — (1,000) — — — — (15,510) — — Options cancelled/expired — — — — (4,000) — (800) — — — — — — — Outstanding as of September 30, 2022 12,500 — — — 14,000 — — 19,000 20,000 36,000 38,000 123,560 40,000 — Number of options granted — — — — — — — — — — — — — 36,000 Options exercised — — — — — — — — (5,497) — — — — — Options cancelled/expired (12,500) — — — (14,000) — — (19,000) (10,503) — — (14,860) (2,000) — Outstanding as of September 30, 2023 — — — — — — — — 4,000 36,000 38,000 108,700 38,000 36,000 Options vested and exercisable — — — — — — — — — — — At September 30, 2021 12,500 — — — 18,000 — 1,800 19,000 20,000 36,000 38,000 139,070 — — At September 30, 2022 12,500 — — — 14,000 — — 19,000 20,000 36,000 38,000 123,560 40,000 — At September 30, 2023 — — — — — — — — 4,000 36,000 38,000 108,700 38,000 36,000 Weighted average fair value at the grant date (US$) 9.0 15.4 12.4 14.4 4.0 7.7 4.4 5.1 5.1 4.0 2.5 12.5 5.4 4.6 The fair value of each option granted is estimated on the date of grant using the Black-Scholes Option Pricing Model: Tranche Tranche Tranche Tranche Tranche Tranche Tranche Tranche Tranche Tranche Tranche Tranche Tranche Tranche 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Exercise price (US$) 13.8 20.5 16.5 20.0 20.7 16.50 8.0 9.1 8.2 5.19 5.30 15.85 7.23 6.79 Average risk-free interest rate 1.73 % 1.79 % 1.75 % 1.55 % 1.94 % 1.94 % 2.26 % 2.25 % 2.58 % 2.49 % 1.67 % 0.87 % 1.37 % 0.04 % Expected option life (year) 5 10 10 10 5 5 5 5 5 5 5 5 5 10 Volatility rate 80.72 % 69.27 % 69.92 % 65.37 % 63.87 % 52.40 % 63.16 % 64.58 % 68.19 % 103.32 % 52.62 % 109.92 % 100.95 % 0.74 % Dividend yield — — — — — — — — — — — — — — The aggregate intrinsic value as of September 30, 2023 and 2022 is US-nil- and US$319, respectively. |
SHARE CAPITAL
SHARE CAPITAL | 12 Months Ended |
Sep. 30, 2023 | |
SHARE CAPITAL | |
SHARE CAPITAL | 16. SHARE CAPITAL During the fiscal year ended September 30, 2021, we sold an aggregate of 219,440 shares of the Company’s common stock under an “at the market” arrangement, for gross proceeds of $2.62 million (RMB17.2 million). During the fiscal year ended September 30, 2021, the employees exercised an aggregate of 21,930 shares of stock options. Cash received from options exercised for the years ended September 30, 2021 was–nil-. During the fiscal year ended September 30, 2022, we sold an aggregate of 201,000 shares of the Company’s common stock under an “at the market” arrangement, for gross proceeds of $1.65 million (RMB11 million). During the fiscal year ended September 30, 2022, the employees exercised an aggregate of 16,510 shares of stock options. Cash received from options exercised for the years ended September 30, 2022 was US$53,580 (RMB340,454). During the fiscal year ended September 30, 2023, we sold an aggregate of 320,000 shares of the Company’s common stock under an “at the market” arrangement, for gross proceeds of $2.78 million (RMB 19.96 million). During the fiscal year ended September 30, 2023, the employees exercised an aggregate of 11,000 shares of stock options. Cash received from options exercised for the years ended September 30, 2023 was US$ –nil-. During the fiscal year ended September 30, 2023, there was capital contribution from NCI of US$1.46 million (RMB 10.48 million). During the fiscal year ended September 30, 2023, there was cash dividend to NCI of US$27,856 (RMB 200,000). |
RENTAL INCOME
RENTAL INCOME | 12 Months Ended |
Sep. 30, 2023 | |
RENTAL INCOME | |
RENTAL INCOME | 17. RENTAL INCOME The Company has been renting its headquarters building and manage the property over the years. In May 2020, the Company entered into lease agreements with BC-TID. and leased the whole building of Beijing Origin located in Changping District, Beijing 102206, China from May 1, 2020 to April 30, 2040. The Company classify the lease as an operating lease and recognize rental income on a straight-line basis. Rental income amounted toRMB10.6 million, RMB10.6 million and RMB10.6 million for the years ended September 30, 2021, 2022 and 2023, respectively. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Sep. 30, 2023 | |
INCOME TAXES | |
INCOME TAXES | 18. INCOME TAXES Agritech and its subsidiary, State Harvest are incorporated in the British Virgin Islands and are exempted from the income tax under the laws of the British Virgin Islands. State Harvest’s subsidiaries and State Harvest’s variable interest entity, Beijing Origin and its majority owned subsidiaries (together, the “PRC entities”) were incorporated in the PRC and governed by the PRC laws. The applicable tax rate of the PRC Enterprise Income Tax (“EIT”) was changed from 33% to 25% on January 1, 2008, according to the Corporate Income Tax Law. The preferential tax rate previously enjoyed by the PRC entities is gradually transitioned to the new standard rate of 25% over a five-year transitional period. In addition, article 28 of the new tax law stated that the income tax rate of a “high technology” company (high-tech status) is to remain at 15%. The Company’s liability for income taxes includes the liability for unrecognized tax benefits, interest and penalties which relate to tax years still subject to review by taxing authorities. Audit periods remain open for review until the statute of limitations has passed. The completion of review or the expiration of the statute of limitations for a given audit period could result in an adjustment to the Company’s liability for income taxes. Any such adjustment could be material to the Company’s results of operations for any given quarterly or annual period based, in part, upon the results of operations for the given period. Until September 30, 2023, the management considered that the Company had no uncertain tax positions affected its consolidated financial position. The Company’s uncertain tax positions are related to tax years that remain subject to examination by the relevant tax authorities and the major one is the China tax authority. The open tax years for examinations in China are 5 years. The principal components of the deferred income tax assets are as follows: September 30, 2022 2023 RMB RMB Non-current deferred tax assets: Net operating loss carry forward 118,410 40,621 Impairment loss 36,567 35,119 Others 22,859 18,933 Non-current deferred income tax assets 177,836 94,673 Valuation allowances (177,836) (94,673) Net non-current deferred income tax assets — — The Company did not have any significant temporary differences relating to deferred tax liabilities as of September 30, 2022 and 2023. A significant portion of the deferred tax assets recognized relates to net operating loss and credit carry forwards. The Company operates through the PRC entities and the valuation allowance is considered on each individual basis. Reconciliation between total income tax expenses and the amount computed by applying the statutory income tax rate to income before taxes is as follows: Year ended September 30, 2021 2022 2023 % % % Statutory rate 25 25 25 Effect of preferential tax treatment — — — Change in valuation allowance (25) (25) (25) Over provision in prior year — (1) — Effective income tax rate — (1) — |
INCOME_(LOSS) PER SHARE
INCOME/(LOSS) PER SHARE | 12 Months Ended |
Sep. 30, 2023 | |
INCOME/(LOSS) PER SHARE | |
INCOME/(LOSS) PER SHARE | 19. INCOME/(LOSS) PER SHARE The following table sets forth the computation of basic and diluted loss per share for the years indicated: Year ended September 30, 2021 2022 2023 RMB RMB RMB Numerator: Net loss attributable to Origin Agritech Limited (91,529) (6,265) 55,332 Denominator: Average common stock outstanding - basic and Diluted 5,617,424 5,773,094 6,546,153 Basic and Diluted Per Share Data: Basic and diluted loss per share attributable to Origin Agritech Limited: (16.29) (1.09) 8.45 For the years ended September 30, 2021, 2022 and 2023, the effect of the outstanding options was anti-dilutive. |
Divestitures
Divestitures | 12 Months Ended |
Sep. 30, 2023 | |
Divestitures | |
Divestitures | 20. Divestitures In 2019, the Company entered into a Cooperation Framework Agreement with Beijing Changping Technology Innodevelop Group (BC-TID), an entity owned by the government of Changping District of Beijing City. Under this agreement, BC-TID and the Company formed a new entity, of which 51% and 49% of equity interests would be owned by BC-TID and the Company, respectively. Beijing Origin contributed the headquarters building in Beijing and certain of its seed technology assets related to genetically modified seeds to the new entity. As of September 30, 2022, BC-TID has invested a total of RMB137.7 million ($20.2 million) as part of the agreement. The deal documents have been completed by both Origin and BC-TID and have been approved by government officials. With the closing of this deal in August 2023, BC - TID and Beijing Origin State Harvest Biotechnology Limited (Origin Biotechnology) own 51% and 48.27% of Beijing Origin, respectively. Beijing Origin also has transferred all of its ownership of Xinjiang Originbo to Hainan Aoyu during fiscal 2023. The cash amount was used to repay the bank loan of the Company on the headquarters building and provide working capital. As part of the agreement, the Company transferred its seed business of Beijing Origin to Beijing Origin State Harvest Biotechnology Limited (Origin Biotechnology), which is the Company’s wholly owned entity in China. For the transaction of Beijing Origin in August, 2023, the Company now owns less than 50% of Beijing Origin. To account for the consolidation and deconsolidation of a VIE subsidiary, the Company follows ASC 810 Consolidation accounting principles. ASC 810 provides a framework for the initial consolidation or deconsolidation of a variable interest entity. For the fiscal year ending September 30, 2023, the Company changed from consolidation of Beijing Origin to using equity method for investment. In accordance with ASC 205-20, the disposal did not present a strategic shift and should not be reported discontinued operation as August 30, 2023. The Company recognized a disposal gain Year ended September 30, 2023 RMB Fair value of consideration received — Historical cost of remained investment 37,660 Carrying amount of Beijing’s net liabilities deconsolidated 378 Carrying amount of noncontrolling interest 2,703 Disposal gain of the deconsolidating Beijing Origin 40,741 Fair value of retained investment 66,448 Historical cost of remained investment 37,660 Gain is attributable to the 48.27% ownership interest retained in Beijing Origin 28,788 Gain on deconsolidated of subsidiary 69,529 |
EMPLOYEE BENEFIT PLAN AND PROFI
EMPLOYEE BENEFIT PLAN AND PROFIT APPROPRIATION | 12 Months Ended |
Sep. 30, 2023 | |
EMPLOYEE BENEFIT PLAN AND PROFIT APPROPRIATION | |
EMPLOYEE BENEFIT PLAN AND PROFIT APPROPRIATION | 21. EMPLOYEE BENEFIT PLAN AND PROFIT APPROPRIATION Full time employees of the PRC entities participate in a government mandated multi-employer defined contribution plan pursuant to which certain pension benefits, medical care, unemployment insurance, employee housing fund and other welfare benefits are provided to employees. Chinese labor regulations require the Company to accrue for these benefits based on certain percentages of the employees’ salaries. The total provisions for such employee benefits were RMB1.69 million, RMB1.28 million and RMB 1.7 million for the years ended September 30, 2021, 2022 and 2023, respectively. Pursuant to the laws applicable to the PRC, domestic PRC entities must make appropriations from after-tax profit to non-distributable reserves funds including: (i) the statutory surplus reserve and; (ii) the statutory public welfare fund. Subject to the limits of 50% of the entity’s registered capital, the statutory surplus reserve fund requires annual appropriations of 10% of after-tax profit (as determined under accounting principles generally accepted in the PRC (“PRC GAAP”) at each year-end). The Company’s wholly foreign owned subsidiary, BioTech, however subject to the law applicable to foreign invested enterprises in the PRC, was required annual appropriation of the general reserve fund, no less than 10% of after-tax profit (as determined under PRC GAAP at each year-end). These reserve funds can only be used for specific purposes of enterprise expansion and staff welfare and are not distributable as cash dividends. No appropriation has been made for the years ended September 30, 2022, 2023. On the other hand, the amount set aside as of September 30, 2022 and 2023 were RMB15,133 and RMB15,133. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Sep. 30, 2023 | |
COMMITMENTS AND CONTINGENCIES | |
COMMITMENTS AND CONTINGENCIES | 22. COMMITMENTS AND CONTINGENCIES Legal proceeding In July, 2022, Origin Biotechnology entered into a supply agreement with Henan Yingdafeng Agricultural Development Limited (“Yingdafeng”) to supply 100,000 tonnes corn bulk commodities. Due to the impact of Covid-19 and quarantine policies in Xinjiang province, the products were not delivered as scheduled. Yingdafeng filed lawsuit and the local court in Neixiang County issued first legal judgement on August 16, 2023 that requires Origin to pay a total of RMB22 million to Yingdafeng. After Origin appealed the decision from the local court in Neixiang County, the Intermediate People's Court of Nanyang City (a higher-level court over Neixiang County People’s Court) decided on December 14, 2023 to revoke the judgement of Neixiang Contry People’s Court. The case is now sent back to the People's Court of Neixiang County, Henan Province for retrial. |
OPERATING RISK
OPERATING RISK | 12 Months Ended |
Sep. 30, 2023 | |
OPERATING RISK | |
OPERATING RISK | 23. OPERATING RISK Concentrations of customers and risk During the fiscal year 2023, our largest and second largest customers represented approximately 8% and 4% of total consolidated revenues. Interest risk The interest rate and term of repayment of other borrowing is 6.0%, which are fixed at the inception of the borrowing. Other financial assets and liabilities do not have material interest rate risk. Liquidity risk We believe our working capital is sufficient to meet our present requirements. We may, however, require additional cash due to changing business conditions or other future developments, including any investments or acquisitions we may decide to pursue. In the long-term, we intend to rely primarily on cash flow from operations and additional borrowings from banks to meet our anticipated cash needs. If our anticipated cash flow is insufficient to meet our requirements, we may also seek to sell additional equity, debt or equity-linked securities. Country risk The Company has significant investments in the PRC. The operating results of the Company may be adversely affected by changes in the political and social conditions in the PRC and by changes in Chinese government policies with respect to laws and regulations, anti-inflationary measures, currency conversion and remittance abroad, and rates and methods taxation, among other things. There can be no assurance; however, those changes in political and other conditions will not result in any adverse impact. Coronavirus risk The effect of the Coronavirus on our company cannot fully be determined at this time; however, as China has been largely successful in controlling the spread of the virus, currently it is not expected to have a major impact on either the overall Chinese economy or on the Company. At this time, because of the Chinese government steps taken during 2021, the impact of the Coronavirus on the Company and on our ability to produce and distribute products has been insignificant. Although there was a strict lock-down in China in the middle of our fiscal year, we have largely overcome the adverse impact of that period. Currently, we do not expect any long term adverse impact of the Coronavirus on our business, due to the fact that we operate in China and our products are distributed in China. At this time, because the Chinese economy has not been so disrupted by the Coronavirus and government response, we do not expect the pandemic situation to have any significant adverse results on our overall financial condition. Notwithstanding the above, if the medical situation should change as the world-wide pandemic continues, we could face adverse consequences to our ability to perform research, generate products and effect distribution of products and otherwise pursue our business. Therefore, investors should monitor aspects of the pandemic and its overall effect on the Chinese economy and trade as well as the world economic situation. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Sep. 30, 2023 | |
SUBSEQUENT EVENTS | |
SUBSEQUENT EVENTS | 24. SUBSEQUENT EVENTS There are no significant subsequent events. |
CONDENSED FINANCIAL INFORMATION
CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY | 12 Months Ended |
Sep. 30, 2023 | |
CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY | |
CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY | 25. CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY The condensed financial statements of Origin Agritech Limited (the “parent company”) have been prepared in accordance with accounting principles generally accepted in the United States of America. Under the PRC laws and regulations, the Company’s PRC subsidiaries are restricted in their ability to transfer certain of their net assets to the parent company in the form of dividend payments, loans or advances. The amounts restricted include paid-in capital, capital surplus and statutory reserves, as determined pursuant to PRC generally accepted accounting principles, totaling RMB45,457 and RMB45,457 as of September 30, 2022 and 2023, respectively. The following represents condensed unconsolidated financial information of the parent company only: CONDENSED BALANCE SHEET September 30 2022 2023 2023 RMB RMB US$ ASSETS (LIABILITIES) Current assets (liabilities) Cash and cash equivalents 6,394 3,952 550 Other receivables 235 619 86 Due from inter-companies 216,571 237,923 33,138 Due to related parties 696 4,294 (237) Total current assets (liabilities) 223,896 246,788 33,537 Investment in unconsolidated subsidiaries (356,347) (302,606) (41,311) Total assets (liabilities) (132,451) (55,818) (7,774) AND EQUITY Total stockholders’ equity (deficit) (133,872) (57,398) (7,994) CONDENSED STATEMENT OF INCOME AND COMPREHENSIVE INCOME Year ended September 30, 2021 2022 2023 2023 RMB RMB RMB US$ Revenues — — — — Operating expenses General and administrative (19,302) (5,246) (5,019) (699) Loss from operations (19,302) (5,246) (5,019) (699) Equity method loss (72,213) (1,004) 60,354 8,406 Interest expense (14) (15) (3) — Loss before income taxes (91,529) (6,265) 55,332 7,707 Income tax expense — — — — Net loss (91,529) (6,265) 55,332 7,707 Other comprehensive loss Foreign currency translation difference (816) 447 (214) (30) Total comprehensive loss (92,345) (5,818) 55,118 7,677 CONDENSED STATEMENT OF CASH FLOWS Year ended September 30, 2021 2022 2023 2023 RMB RMB RMB US$ Net cash provided by operating activities — (4,567) (19,864) (2,767) Net cash provided by financing activities (8,637) 1,614 17,636 2,456 Net increase in cash and cash equivalents (8,637) (2,953) (2,228) (311) Cash and cash equivalents, beginning of year 18,353 8,900 6,394 891 Effect of exchange rate changes on cash and cash equivalents (816) 447 (214) (30) Cash and cash equivalents, end of year 8,900 6,394 3,952 550 BASIS OF PRESENTATION The condensed financial information has been prepared using the same accounting policies as set out in the Company’s consolidated financial statements except that the parent company has used equity method to account for its investments in subsidiaries. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Sep. 30, 2023 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Principles of consolidation | Principles of consolidation The consolidated financial statements of the Company are prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”); include the assets, liabilities, revenues, expenses and cash flows of all subsidiaries and variable interest entities. Intercompany balances, transactions and cash flows are eliminated on consolidation. |
Liquidity and Going Concern | Liquidity and Going Concern 2022 2023 The Company incurred net income(losses) of 2,325 62,669 Working capital deficit 211,325 171,678 Accumulated deficit 656,898 601,566 The Company incurred net income of RMB62.7million in the year ended September 30, 2023. Working capital deficit was RMB 171.6 There are new hybrids completed variety trails and will be in the market this season. Furthermore nutrition enhanced corn will be produced for animal feed which will greatly increase the revenue. Besides the aforementioned cash inflows, the Company is also seeking funds from other resources including but not limited to licensing its core seed traits to its customers, applying for more government grants for research and development activities, pursuing other capital investment from investors and selling certain company assets. The Company consistently reviews its working capital requirements. Despite the Company’s effort to obtain additional funding and reduce operating costs, there is no assurance that the Company’s plans and actions will be successful. In addition, there can be no assurance that in the event additional sources of funds are needed they will be available on acceptable terms, if at all. The accompanying financial statements do not include any adjustments that might be necessary should we be unable to continue as a going concern. |
Convenience translation into United States dollars | Convenience translation into United States dollars The consolidated financial statements are reported in Renminbi. The translation of Renminbi amounts into United States dollar amounts has been made for the convenience of the reader and has been made at the exchange rate quoted by the middle rate by the State Administration of Foreign Exchange in China on September 30, 2023 of RMB 7.0998 to US $1.00. Such translation amounts should not be construed as representations that the Renminbi amounts could be readily converted into United States dollar amounts at that rate or any other rate. |
Use of estimates | Use of estimates The preparation of the consolidated financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Estimates are adjusted to reflect actual experience when necessary. Significant accounting estimates reflected in the Company’s consolidated financial statements include inventory valuation, collectability evaluation of accounts receivables and due from related parties, useful lives of plant and equipment and acquired intangible assets, the valuation allowance for deferred income tax assets, valuation of long-lived assets and share-based compensation expense. Actual results could differ from those estimates. |
Cash and cash equivalents | Cash and cash equivalents Cash and cash equivalents consist of cash on hand, cash accounts, interest bearing savings accounts, time certificates of deposit and debt securities with a maturities of three months or less when purchased. |
Inventories | Inventories Inventories are stated at the lower of cost, determined by weighted-average method, or net realizable value. Work-in-progress and finished goods inventories consist of raw materials, direct labor and overhead associated with the manufacturing process. Parent seed represents the seeds that are used for research and development activities. The Company periodically performs an analysis of inventory to determine obsolete or slow-moving inventory and determine if its cost exceeds the estimated market value. Write down of potentially obsolete or slow-moving inventory are recorded based on management’s analysis of inventory levels. |
Land use rights, net | Land use rights, net Land use rights are recorded at cost less accumulated amortization. Amortization is provided over the term of the land use right agreements on a straight-line basis for the beneficial period, which is 50 years. |
Plant and equipment, net | Plant and equipment, net Plant and equipment are recorded at cost less accumulated depreciation and amortization. Maintenance and repairs are charged to expense as incurred. Depreciation is calculated on a straight-line basis over the following estimated useful lives: Plant and building 20-40 years Machinery and equipment 10-15 years Furniture and office equipment 5-8 years Motor vehicles 5-10 years Leasehold improvements Shorter of the useful lives or the lease term The Company constructs certain of its facilities. In addition to costs under construction contracts, external costs directly related to the construction of such facilities, including duty and tariff, and equipment installation and shipping costs, are capitalized. Depreciation is recorded at the time assets are placed in service. |
Acquired intangible assets, net | Acquired intangible assets, net Acquired intangible assets primarily consist of purchased technology rights and distribution network and are stated at cost less accumulated amortization. Amortization is calculated on a straight-line basis over the estimated useful lives of these assets and recorded in operating expenses. Amortization is calculated on a straight-line basis over the following estimated useful lives for the main acquired intangible assets: Technology rights for licensed seeds 3-20 years Distribution network 6-14 years Trademark Indefinite Trademarks, which have indefinite lives are not amortized but are reviewed for impairment at least annually, at year end date, or earlier upon the occurrence of certain triggering events. The Company has performed an impairment analysis on the acquired intangible assets in Beijing Origin and recorded no impairment provision during the year ended September 30, 2023. |
Leases | Leases The Company leases certain office space and equipment from third-parties. Leases with an initial term of 12 months or less are not recorded on the balance sheet and lease expense is recognized on a straight-line basis over the lease term. For leases beginning in 2019 and later, at the inception of a contract management assesses whether the contract is, or contains, a lease. The assessment is based on: (1) whether the contract involves the use of a distinct identified asset, (2) whether the right to substantially all the economic benefit from the use of the asset throughout the period is obtained, and (3) whether the Company has the right to direct the use of the asset. At the inception of a lease, management allocates the consideration in the contract to each lease component based on its relative stand-alone price to determine the lease payments. The Company accounts for lease components (e.g., fixed payments including rent, real estate taxes and insurance costs) separately from the nonlease components (e.g., common-area maintenance costs). Most leases include one or more options to renew, with renewal terms that can extend the lease term from one year or more. The exercise of lease renewal options is at the Company’s sole discretion. Renewal periods are included in the lease term only when renewal is reasonably certain, which is a high threshold and requires management to apply judgment to determine the appropriate lease term. The Company’s leases do not include options to purchase the leased property. The depreciable life of assets and leasehold improvements are limited by the expected lease term. Certain lease agreements include rental payments adjusted periodically for inflation. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants. All of the Company’s leases are classified as operating leases. The Company has elected not to recognize right-of-use assets and lease liabilities for short-term leases that have a term of 12 months or less. The effect of short-term leases and initial direct costs on our right-of-use asset and lease liability was not material. ASC 842 requires the Company to make certain assumptions and judgments in applying the guidance, including determining whether an arrangement includes a lease, determining the term of a lease when the contract has renewal or cancellation provisions, and determining the discount rate. As the rate implicit in the lease is not usually available, the Company used an incremental borrowing rate based on the information available at the adoption date of ASC 842 in determining the present value of lease payments for existing leases. The Company will use information available at the lease commencement date to determine the discount rate for any new leases. The Company leases certain office space to third-parties. An operating lease is neither a sale nor financing of an asset. The Company keeps the asset underlying the lease on its balance sheet and continue to depreciate the asset based on its estimated useful life. Rental revenue should be recognized on a straight-line basis (or another systematic basis if that basis is more representative of the pattern in which income is earned from the underlying asset over the term of the respective lease). A lessor should record an unbilled rent receivable, which is the amount by which straight-line rental revenue exceeds rents currently billed in accordance with the lease. |
Long-term investments | Long-term investments We utilize the measurement alternative for equity investments that do not have readily determinable fair values and measure these investments at cost less impairment plus or minus observable price changes in orderly transactions for an identical or similar investment of the same issuer. We classify our investments as non-current assets on the consolidated balance sheets as those investments do not have stated contractual maturity dates. We periodically review our equity investments for impairment. We consider impairment indicators such as negative changes in industry and market conditions, financial performance, business prospects, and other relevant events and factors. If indicators exist and the fair value of the security is below the carrying amount, we write down the security to fair value. |
Valuation of long-lived asset | Valuation of long-lived asset The Company reviews the carrying value of long-lived assets to be held and used, including other intangible assets subject to amortization, when events and circumstances warrants such a review. The carrying value of a long-lived asset is considered impaired when the anticipated undiscounted cash flow from such asset is separately identifiable and is less than its carrying value. In that event, a loss is recognized based on the amount by which the carrying value exceeds the fair market value of the long-lived asset and intangible assets. Fair market value is determined primarily using the anticipated cash flows discounted at a rate commensurate with the risk involved. Losses on long-lived assets and intangible assets to be disposed are determined in a similar manner, except that fair market values are reduced for the cost to dispose. |
Revenue recognition | Revenue recognition The Company derives most of its revenue from hybrid corn seed. The Company adopted ASU 2014-09, “Revenue from Contracts with Customers (Topic 606),” and the associated ASUs (collectively, “Topic 606”). The Company recognizes revenue when its customer obtains control of promised goods or services in an amount that reflects the consideration which the Company expects to receive in exchange for those goods or services. To determine revenue recognition for the arrangements that the Company determines are within the scope of Topic 606, the Company performs the following five steps: (1) identify the contract(s) with a customer, (2) identify the performance obligations in the contract, (3) determine the transaction price, (4) allocate the transaction price to the performance obligations in the contract and (5) recognize revenue when (or as) the entity satisfies a performance obligation. The majority of the Company’s customer contracts, which may be in the form of purchase orders, contracts or purchase agreements, contain performance obligations for delivery of agreed upon goods. Delivery of all performance obligations contained within a contract with a customer typically occurs at the same time. The Company also makes accounting policy elections to 1) treat shipping and handling activities that occur after the customer obtains control of the goods as fulfillment costs and 2) exclude sales (and similar) taxes from the measurement of the transaction price. |
Government subsidies | Government subsidies 2022 2023 Government subsidies received — 1,145 Government subsidies recognized as other income 1,158.00 2,271 A government subsidy is not recognized until there is reasonable assurance that: (a) the enterprise will comply with the conditions attached to the grant; and (b) the grant will be received. When the Company received the government subsidies but the conditions attached to the grants have not been fulfilled, such government subsidies are deferred and recorded under other payables and accrued expenses, and other long-term liability. The reclassification of short-term or long-term liabilities is depended on the management’s expectation of when the conditions attached to the grant can be fulfilled. |
Cost of revenues | Cost of revenues Cost of revenues consists of expenses directly related to sales, including the purchase prices and development costs for seeds and, agricultural chemical products, depreciation and amortization, impairment of inventory, shipping and handling costs, salary and compensation, supplies, and license fees. |
Research and development costs | Research and development costs Research and development costs relating to the development of new products and processes, including significant improvements and refinements to existing products, are expensed as incurred. |
Advertising costs | Advertising costs Advertising costs are expensed when incurred and included in selling and marketing expenses. For the years ended September 30, 2021, 2022 and 2023, advertising costs were RMB-nil-, RMB-nil- and RMB-nil-, respectively. |
Borrowing cost | Borrowing cost Borrowing costs attributable directly to the acquisition, construction or production of qualifying assets which require a substantial period of time to be ready for their intended use or sale, are capitalized as part of the cost of those assets. Income earned on temporary investments of specific borrowings pending their expenditure on those assets is deducted from borrowing costs capitalized. All other borrowing costs are recognized in interest expenses in the statement of income and comprehensive income in the period in which they are incurred. |
Allowance for doubtful account | Allowance for doubtful account The Company regularly monitors and assesses the risk of not collecting amounts owed to the Company by customers. This evaluation is based upon a variety of factors including: an analysis of amounts current and past due along with relevant history and facts particular to the customer. Based on the result of this analysis, the Company records an allowance for doubtful accounts RMB 401, RMB- nil- and RMB- nil-,for the years ended September 30, 2021, 2022, and 2023, respectively. |
Income taxes | Income taxes Deferred income taxes are recognized for the future tax consequences of temporary differences between the tax bases of assets and liabilities and their reported amounts in the consolidated financial statements, net of operating loss carry forwards and credits. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Current income taxes are provided for in accordance with the laws of the relevant tax authorities. The Company adopted FASB ASC 740-10. The Company’s policy on classification of all interest and penalties related to unrecognized tax benefits, if any, as a component of income tax provisions. |
Foreign currency translation | Foreign currency translation The functional currency of the Company excluding Agritech (Parent) and State Harvest is Renminbi. Monetary assets and liabilities denominated in currencies other than Renminbi are translated into Renminbi at the rates of exchange ruling at the balance sheet date. Transactions in currencies other than Renminbi are converted into Renminbi at the applicable rates of exchange prevailing the transactions occurred. Transaction gains and losses are recognized in the consolidated statements of income (loss) and comprehensive income (loss). The functional currency of Agritech (Parent) and State Harvest are maintained in United State dollars. Assets and liabilities are translated at the exchange rates at the balance sheet date, equity accounts are translated at historical exchange rates and revenues, expenses, gains and losses are translated using the average rate for the period. Translation adjustments are reported as cumulative translation adjustments and are shown as a separate component of other comprehensive (loss)/income. The Company has chosen Renminbi as its reporting currency. |
Comprehensive income (loss) | Comprehensive income (loss) Comprehensive income (loss) is defined to include all changes in equity except those resulting from investments by owners and distributions to owners. Comprehensive income (loss) for the years has been disclosed within the consolidated statements of income and comprehensive income for presentational purpose of the disclosure of comprehensive income (loss) attributable to Agritech and the non-controlling interests respectively. |
Earnings (loss) per share | Earnings (loss) per share Basic earnings (loss) per share is computed by dividing net income (loss) by the weighted average number of common shares outstanding during the years. Diluted earnings (loss) per share gives effect to all dilutive potential common shares outstanding during the years. The weighted average number of common shares outstanding is adjusted to include the number of additional common shares that would have been outstanding if the dilutive potential common shares had been issued. In computing the dilutive effect of potential common shares, the average stock price for the period is used in determining the number of treasury shares assumed to be purchased with the proceeds from the exercise of options. |
Share-based compensation | Share-based compensation ASC 718-10 requires that share-based payment transactions with employees and nonemployees, such as share options, be measured based on the grant-date fair value of the equity instrument issued and recognized as compensation expense over the requisite service period, with a corresponding addition to equity. Under this method, compensation cost related to employee share options or similar equity instruments is measured at the grant date based on the fair value of the award and is recognized over the period during which an employee is required to provide service in exchange for the award, which generally is the vesting period. |
Fair value measurement | Fair value measurement The Company adopted FASB ASC 820-10, and which defines fair value, establishes a framework for measuring fair value in GAAP, and expands disclosures about fair value measurements. ASC 820-10 does not require any new fair value measurements, but provides guidance on how to measure fair value by providing a fair value hierarchy used to classify the source of the information. ASC 820-10 establishes a three-level valuation hierarchy of valuation techniques based on observable and unobservable inputs, which may be used to measure fair value and include the following: Level 1 - Quoted prices in active markets for identical assets or liabilities. Level 2 - Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 - Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Classification within the hierarchy is determined based on the lowest level of input that is significant to the fair value measurement. Deconsolidation of subsidiary In accordance with ASC 810-40, deconsolidation of a subsidiary occurs when: (a) some or all of the ownership interests of the subsidiary are sold resulting in the loss of a controlling financial interest; (b) a contractual agreement granting control of the subsidiary expires; (c) the subsidiary issues its shares to outsiders reducing the parent’s ownership interest resulting in the loss of a controlling financial interest; or (d) the subsidiary becomes subject to the control of a government, court, administrator or regulator. The parent should recognize a gain or loss measured as the difference between: (a) the aggregate of: (i) the fair value of any consideration received, (ii) the fair value of any retained non-controlling interest, and (iii) the carrying amount of any non-controlling interest at the date the subsidiary is deconsolidated; and (b) the carrying amount of the subsidiary’s assets and liabilities. A subsidiary should be deconsolidated from the date a controlling financial interest is lost and should also consider the equity components included in the non-controlling interest and the amounts previously recognized in accumulated other comprehensive income (loss), i.e., the foreign currency translation adjustment. Investments in equity method investee Equity investments are comprised of investments in privately held companies. The Company uses the equity method to account for an equity investment over which it has the ability to exert significant influence but does not otherwise have control. The Company records equity method investments at the cost of acquisition, plus the Company’s share in undistributed earnings and losses since acquisition. For equity investments over which the Company does not have significant influence or control, the cost method of accounting is used. If the Company’s share of the undistributed losses exceeds the carrying amount of an investment accounted for by the equity method, the Company continues to report losses up to the investment carrying amount, including any loans balance due from the equity investees. The Company assesses its equity investments for impairment on a periodic basis by considering factors including, but not limited to, current economic and market conditions, the operating performance of the investees including current earnings trends, the technological feasibility of the investee’s products and technologies, the general market conditions in the investee’s industry or geographic area, factors related to the investee’s ability to remain in business, such as the investee’s liquidity, debt ratios, cash burn rate, and other company-specific information including recent financing rounds. If it has been determined that the equity investment is less than its related fair value and that this decline is other-than-temporary, the carrying value of the investment is adjusted downward to reflect these declines in value. |
Deconsolidation of subsidiary | Deconsolidation of subsidiary In accordance with ASC 810-40, deconsolidation of a subsidiary occurs when: (a) some or all of the ownership interests of the subsidiary are sold resulting in the loss of a controlling financial interest; (b) a contractual agreement granting control of the subsidiary expires; (c) the subsidiary issues its shares to outsiders reducing the parent’s ownership interest resulting in the loss of a controlling financial interest; or (d) the subsidiary becomes subject to the control of a government, court, administrator or regulator. The parent should recognize a gain or loss measured as the difference between: (a) the aggregate of: (i) the fair value of any consideration received, (ii) the fair value of any retained non-controlling interest, and (iii) the carrying amount of any non-controlling interest at the date the subsidiary is deconsolidated; and (b) the carrying amount of the subsidiary’s assets and liabilities. A subsidiary should be deconsolidated from the date a controlling financial interest is lost and should also consider the equity components included in the non-controlling interest and the amounts previously recognized in accumulated other comprehensive income (loss), i.e., the foreign currency translation adjustment. |
Investments in equity method investee | Investments in equity method investee Equity investments are comprised of investments in privately held companies. The Company uses the equity method to account for an equity investment over which it has the ability to exert significant influence but does not otherwise have control. The Company records equity method investments at the cost of acquisition, plus the Company’s share in undistributed earnings and losses since acquisition. For equity investments over which the Company does not have significant influence or control, the cost method of accounting is used. If the Company’s share of the undistributed losses exceeds the carrying amount of an investment accounted for by the equity method, the Company continues to report losses up to the investment carrying amount, including any loans balance due from the equity investees. The Company assesses its equity investments for impairment on a periodic basis by considering factors including, but not limited to, current economic and market conditions, the operating performance of the investees including current earnings trends, the technological feasibility of the investee’s products and technologies, the general market conditions in the investee’s industry or geographic area, factors related to the investee’s ability to remain in business, such as the investee’s liquidity, debt ratios, cash burn rate, and other company-specific information including recent financing rounds. If it has been determined that the equity investment is less than its related fair value and that this decline is other-than-temporary, the carrying value of the investment is adjusted downward to reflect these declines in value. |
Recently issued accounting pronouncements | Recently issued accounting pronouncements ● In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. Financial Instruments—Credit Losses (Topic 326) amends guideline on reporting credit losses for assets held at amortized cost basis and available-for-sale debt securities. For assets held at amortized cost basis, Topic 326 eliminates the probable initial recognition threshold in current GAAP and, instead, requires an entity to reflect its current estimate of all expected credit losses. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of the financial assets to present the net amount expected to be collected. For available-for-sale debt securities, credit losses should be measured in a manner similar to current GAAP, however Topic 326 will require that credit losses be presented as an allowance rather than as a write-down. ASU No. 2016-13 affects entities holding financial assets and net investment in leases that are not accounted for at fair value through net income. The amendments affect loans, debt securities, trade receivables, net investments in leases, off balance sheet credit exposures, reinsurance receivables, and any other financial assets not excluded from the scope that have the contractual right to receive cash. The amendments in this ASU is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. The Company does not expect the adoption of ASU No. 2016-13 will have a material impact on its consolidated financial statements. The Company believes that other recent accounting pronouncement updates will not have a material effect on the Company’s consolidated financial statements. |
ORGANIZATION AND PRINCIPAL AC_2
ORGANIZATION AND PRINCIPAL ACTIVITIES (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
ORGANIZATION AND PRINCIPAL ACTIVITIES | |
Schedule of company's subsidiaries and variable interest entities included in continuing operations | As of September 30, 2023, the Company’s subsidiaries and variable interest entities included in continuing operations consisted of the following: Date of Place of Percentage Incorporation Incorporation of Principal Name or Establishment or Establishment Ownership Activity Subsidiaries: State Harvest Holdings Limited(“State Harvest”) October 6, 2004 British Virgin Islands 100 % Investment Holding OAL SMY Limited July 28, 2021 USA 100 % Investment Holding Beijing Origin State Harvest Biotechnology Limited (“BioTech”) December 1, 2004 People’s Republic of China (“PRC”) 100 % Hybrid seed technology development Variable interest entity: Hainan Aoyu Biotechnology Limited(Hainan Aoyu) March 2, 2022 PRC 100 % Hybrid crop seed development, production and distribution Subsidiaries held by Hainan Aoyu: Xinjiang Originbo Seed Company Limited (note ) (“Xinjiang Originbo”) July 13, 2011 PRC 70.52 % Hybrid crop seed development, production and distribution Subsidiaries held by State Harvest: Shandong Aoruixinong Agricultural Technology Limited (Shandong Aoruixinong) September 27, 2019 PRC 51 % Agricultural seed products distribution through e-commune network Hubei Aoyu Zhongye Limited (Hubei Aoyu) October 22, 2018 PRC 51 % Agricultural seed products distribution through e-commerce network Anhui Aoyu Zhongye Limited (Anhui Aoyu) July 25, 2018 PRC 50 % Agricultural seed products distribution through e-commerce network Xuzhou Aoyu Zhongye Limited (Xuzhou Aoyu) September 25, 2018 PRC 51 % Agricultural seed products distribution through e-commerce network Henan Aoyu Zhongye Limited (note (i)) (“Henan Aoyu”) July 16, 2018 PRC 51 % Agricultural seed products distribution through e-commerce network Henan Baodao Origin Agriculture and Animal Husbandry Co., Ltd (“Baodao Origin”) Nov 23, 2022 PRC 51 % Agricultural seed products distribution Subsidiary held by Baodao Origin: Shihezi Baodao Agriculture and Animal Husbandry Technology Co., Ltd March 8, 2023 PRC 100 % Agricultural seed and feed products distribution |
Schedule of variable interest entities | September 30, 2022 2023 2023 RMB RMB US$ ASSETS Current Assets Cash and cash equivalents 950 2,142 298 Due from related party — — — Accounts receivable 304 189 26 Advances to suppliers 8,456 64,502 8,984 Inventories — 2,511 350 Other current assets 7,698 929 129 Total current assets 17,408 70,273 9,787 Land use rights, net 1,792 — — Plant and equipment, net 32,952 18,771 2,614 Equity investments — 130,541 18,182 Other assets 1,554 1,192 166 Total assets 53,706 220,777 30,749 LIABILITIES Current liabilities Current portion of long-term borrowings 137,660 — — Accounts payable 10,064 318 44 Due to growers 404 404 56 Due to related parties 24,136 6,205 864 Advances from customers 29,420 76,936 10,716 Other payables and accrued expenses 58,954 1,266 176 Total current liabilities 260,638 85,129 11,856 Other long-term liability 15,732 6,177 860 Total liabilities 276,370 91,306 12,716 |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Schedule of liquidity and going concern | 2022 2023 The Company incurred net income(losses) of 2,325 62,669 Working capital deficit 211,325 171,678 Accumulated deficit 656,898 601,566 |
Schedule of estimated useful lives of assets | Plant and building 20-40 years Machinery and equipment 10-15 years Furniture and office equipment 5-8 years Motor vehicles 5-10 years Leasehold improvements Shorter of the useful lives or the lease term |
Schedule of estimated useful lives of intangible assets | Technology rights for licensed seeds 3-20 years Distribution network 6-14 years Trademark Indefinite |
Schedule of government subsidies | 2022 2023 Government subsidies received — 1,145 Government subsidies recognized as other income 1,158.00 2,271 |
RELATED PARTY BALANCES AND TR_2
RELATED PARTY BALANCES AND TRANSACTIONS (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
RELATED PARTY BALANCES AND TRANSACTIONS | |
Schedule of related party relationships | Name of related parties Relationship Beijing Shihui(i) Being owned by close family members of the Company’s Chairman Linze Origin Seeds Ltd.(i) Being owned by close family members of the Company’s Chairman Henan Yingde Agricultural Ltd. Being owned by close family members of the Company’s Chairman Beijing Liantaide Biotechnology Co., Ltd. Being owned by close family members of the Company’s Chairman Beijing Agrite Co., Ltd. Being owned by close family members of the Company’s Chairman Fifth Division State-owned Assets Management and Operation Co., Ltd Being the non-controlling interest of Xinjiang Origin Shareholders Non-controlling shareholders of Hubei Aoyu, Anhui Aoyu, Xuzhou Aoyu, Shandong Aoruixinong, Henan Aoyu, Shandong Aoruixinong (i) |
Schedule of due from related parties, net of bad debt allowance | September 30, 2022 2023 RMB RMB Linze Origin Seeds Ltd 45 45 Beijing Shihui (iii) 29,998 17,060 Shareholders (i) 9,165 5,336 Henan Yingde Agricultural Ltd. 11,529 — Beijing Liantaide (ii) 7,466 9,046 Beijing Origin — 450 The Company’s Chairman (iv) — 5,999 The Close family of the Company’s Chairman 6 6 Total 58,125 37,942 Allowance for doubtful account 29,998 17,560 Due from related parties, net 28,127 20,382 Note (i): As of September 30, 2023, the balance of due from shareholders include seed sales amounted RMB 15, advances for business use amounted RMB 4,421 and advances for purchases raw materials amounted RMB 900. Note (ii): As of September 30, 2023, the balance of due from shareholders is advances for purchases raw materials amounted RMB 9,046. Note (iii): As of September 30, 2023, the Company provide cash to fund the related party, Beijing Shihui’s operations amounted RMB 17,060. The Company made fully allowance of due from related party as of September 30, 2023. Note (iv): As of September 30, 2023, the balance of due from the Company’s Chairman is advances to staff for business use amounted RMB 5,999. |
Schedule of due to related parties | September 30, 2022 2023 RMB RMB Linze Origin Seeds Ltd 300 — Henan Agriculture University 1,000 — Xinjiang Ginbo Seeds Center 54 54 Companies controlled by the Company’s directors (i) 1,702 1,721 Shareholders (i) (ii) 10,123 15,434 Beijing Origin (iii) — 148,219 The Company’s Chairman (i) 970 3,657 YingDe(i) 187 5,399 The close family of the Company’s Chairman 4,293 — 18,629 174,484 Note (i): In the ordinary course of business, the Company purchases raw materials from and sells product to related parties, and related parties also provide cash to fund the Company’s operations. Note (ii): As of September 30, 2023, the balance of due to shareholders include borrowing amounted RMB 5,381 , which is unsecured, interest-bearing (the borrowing interest rate is from 5.8% to 12% ) and repayable on demand, accrued interest amounted use amounted RMB 354 and advances from shareholders of selling seed amounted RMB 9,699 . Note (iii): As of September 30, 2023, Beijing Origin, an associate, provide cash to fund the Company’s operations amounted RMB 148,219, which is unsecured, interest-free and repayable on demand. |
Schedule of related party transactions | (a) Sales to Year ended September 30, 2021 2022 2023 RMB RMB RMB YingDe 3,134 1,818 6,384 Shareholders (i) 4,701 3,574 4,677 Henan Agriculture University — 5 — The close family of the Company’s Chairman — 2,618 — 7,835 8,015 11,061 Note(i): RMB4,677 and RMB of the Company for the year ended September 30, 2023, respectively, are derived from shareholders and the sales price is market price. (b) Purchase from Year ended September 30, 2021 2022 2023 RMB RMB RMB YingDe 11,700 14,012 162 Linze Origin Seeds Limited 4,706 — — Beijing Shihui 360 — — Liantaide — 9,708 6,334 Close family of the Company’s Chairman 333 29 — Shareholders 2,227 — — 19,326 23,749 6,496 |
ADVANCES TO SUPPLIERS (Tables)
ADVANCES TO SUPPLIERS (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
ADVANCES TO SUPPLIERS | |
Schedule of advance to suppliers | September 30, 2022 2023 RMB RMB Prepayments for purchasing seed 18,378 67,048 Prepayments for purchasing package 630 163 Deposits for research and development fee 207 107 Others 807 4,299 20,022 71,617 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
INVENTORIES | |
Schedule of inventories | September 30, 2022 2023 RMB RMB Work in progress 2,106 13,039 |
OTHER CURRENT ASSETS (Tables)
OTHER CURRENT ASSETS (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
OTHER CURRENT ASSETS | |
Schedule of other current assets | September 30, 2022 2023 RMB RMB Advances to staff for business use 680 1,756 Rental receivable 7,663 — Receivable from third party (i) 1,300 9,823 Others 3,354 618 12,997 12,197 Note (i) : As of September 30, 2023, receivable from third party mainly represents the borrowing of the third party from the Company. |
LAND USE RIGHTS, NET (Tables)
LAND USE RIGHTS, NET (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
LAND USE RIGHTS, NET | |
Schedule of land use rights, net | September 30, 2022 2023 RMB RMB Land use rights 16,564 16,781 Accumulated amortization (4,468) (3,219) Impairment provision (10,304) (10,304) Land use rights, net 1,792 3,258 |
PLANT AND EQUIPMENT, NET (Table
PLANT AND EQUIPMENT, NET (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
PLANT AND EQUIPMENT, NET | |
Schedule of plant and equipment, net | September 30, 2022 2023 RMB RMB Plant and building 143,808 100,478 Machinery and equipment 73,357 70,398 Furniture and office equipment 12,367 12,035 Motor vehicles 3,590 3,735 Accumulated depreciation (76,196) (57,257) Accumulated impairment (110,537) (110,537) Construction in progress — 2,250 Plant and equipment, net 46,389 21,102 |
LONG TERM INVESTMENTS (Tables)
LONG TERM INVESTMENTS (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
LONG TERM INVESTMENTS | |
Schedule of investment in equity security without readily determinable fair value | September 30, 2022 2023 RMB RMB Cost method investment 18,921 18,921 Equity investment(i) — 66,448 Impairment on cost method investment (17,231) (18,721) 1,690 66,648 Note (i) : It is represents that the cost method investment amounted RMB 37.66 million and fair value adjustment amounted RMB 28.79 million disclosed in Note 20. |
ACQUIRED INTANGIBLE ASSETS, N_2
ACQUIRED INTANGIBLE ASSETS, NET (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
ACQUIRED INTANGIBLE ASSETS, NET | |
Schedule of acquired intangible assets, net | September 30, 2022 2023 RMB RMB Technology rights for licensed seeds 75,899 72,748 Others 4,739 4,739 80,638 77,487 Accumulated amortization (73,092) (73,877) Impairment provision (4,557) (3,610) Acquired intangible assets, net 2,989 — |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
LEASES | |
Summary of components of leases | Year ending September 30, RMB Operating lease cost 241 Short-term lease cost — Total 6 Year ended September 30, Cash paid for amounts included in the measurement of lease liabilities: RMB Operating cash flows from operating leases — |
Schedule of maturities of operating lease liabilities | Year ending September 30, RMB 2024 178 2025 63 2026 — 2027 — 2028 — Thereafter — 241 |
OTHER PAYABLES AND ACCRUED EX_2
OTHER PAYABLES AND ACCRUED EXPENSES (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
OTHER PAYABLES AND ACCRUED EXPENSES | |
Schedule of other payables and accrued expenses | September 30, 2022 2023 RMB RMB Payable for purchase of plant and equipment 5,789 1,000 1,420.0 1,580 Salaries and bonus payable 4,908 7,626 Accrued interest 20,388 — Other taxes payable 4,159 — Deposits from others 4,689 — Deferred government subsidies 887 363 Payable for penalty 12,734 — Others (i) 9,958 7,376 64,932 17,945 |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
STOCK-BASED COMPENSATION | |
Schedule of share-based compensation stock options activity | Tranche Tranche Tranche Tranche Tranche Tranche Tranche Tranche Tranche Tranche Tranche Tranche Tranche Tranche 11 12 13 14 15 16 17 18 19 20 21 22 23 24 January 4, April 19, May 16, August 3, January 3, October 2, December 22, January 2, March 1, January 2, January 2, April 14, January 3, May 22, Grant date 2016 2016 2016 2016 2017 2017 2017 2018 2018 2019 2020 2021 2022 2023 Outstanding as of September 30, 2020 13,500 60,000 20,000 20,000 18,000 2,500 8,800 29,000 20,000 36,000 38,000 — — — Number of options granted — — — — — — — — — — — 160,000 — — Options exercised — — — — — — (1,000) — — — — (20,930) — — Options cancelled/expired (1,000) (60,000) (20,000) (20,000) — (2,500) (6,000) (10,000) — — — — — — Outstanding as of September 30, 2021 12,500 — — — 18,000 — 1,800 19,000 20,000 36,000 38,000 139,070 — — Number of options granted — — — — — — — — — — — — 40,000 — Options exercised — — — — — — (1,000) — — — — (15,510) — — Options cancelled/expired — — — — (4,000) — (800) — — — — — — — Outstanding as of September 30, 2022 12,500 — — — 14,000 — — 19,000 20,000 36,000 38,000 123,560 40,000 — Number of options granted — — — — — — — — — — — — — 36,000 Options exercised — — — — — — — — (5,497) — — — — — Options cancelled/expired (12,500) — — — (14,000) — — (19,000) (10,503) — — (14,860) (2,000) — Outstanding as of September 30, 2023 — — — — — — — — 4,000 36,000 38,000 108,700 38,000 36,000 Options vested and exercisable — — — — — — — — — — — At September 30, 2021 12,500 — — — 18,000 — 1,800 19,000 20,000 36,000 38,000 139,070 — — At September 30, 2022 12,500 — — — 14,000 — — 19,000 20,000 36,000 38,000 123,560 40,000 — At September 30, 2023 — — — — — — — — 4,000 36,000 38,000 108,700 38,000 36,000 Weighted average fair value at the grant date (US$) 9.0 15.4 12.4 14.4 4.0 7.7 4.4 5.1 5.1 4.0 2.5 12.5 5.4 4.6 |
Schedule of share-based payment award stock options valuation assumptions | Tranche Tranche Tranche Tranche Tranche Tranche Tranche Tranche Tranche Tranche Tranche Tranche Tranche Tranche 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Exercise price (US$) 13.8 20.5 16.5 20.0 20.7 16.50 8.0 9.1 8.2 5.19 5.30 15.85 7.23 6.79 Average risk-free interest rate 1.73 % 1.79 % 1.75 % 1.55 % 1.94 % 1.94 % 2.26 % 2.25 % 2.58 % 2.49 % 1.67 % 0.87 % 1.37 % 0.04 % Expected option life (year) 5 10 10 10 5 5 5 5 5 5 5 5 5 10 Volatility rate 80.72 % 69.27 % 69.92 % 65.37 % 63.87 % 52.40 % 63.16 % 64.58 % 68.19 % 103.32 % 52.62 % 109.92 % 100.95 % 0.74 % Dividend yield — — — — — — — — — — — — — — |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
INCOME TAXES | |
Schedule of deferred income tax assets | September 30, 2022 2023 RMB RMB Non-current deferred tax assets: Net operating loss carry forward 118,410 40,621 Impairment loss 36,567 35,119 Others 22,859 18,933 Non-current deferred income tax assets 177,836 94,673 Valuation allowances (177,836) (94,673) Net non-current deferred income tax assets — — |
Schedule of effective income tax rate reconciliation | Year ended September 30, 2021 2022 2023 % % % Statutory rate 25 25 25 Effect of preferential tax treatment — — — Change in valuation allowance (25) (25) (25) Over provision in prior year — (1) — Effective income tax rate — (1) — |
INCOME_(LOSS) PER SHARE (Tables
INCOME/(LOSS) PER SHARE (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
INCOME/(LOSS) PER SHARE | |
Schedule of computation of basic and diluted loss per share | Year ended September 30, 2021 2022 2023 RMB RMB RMB Numerator: Net loss attributable to Origin Agritech Limited (91,529) (6,265) 55,332 Denominator: Average common stock outstanding - basic and Diluted 5,617,424 5,773,094 6,546,153 Basic and Diluted Per Share Data: Basic and diluted loss per share attributable to Origin Agritech Limited: (16.29) (1.09) 8.45 |
Divestitures (Tables)
Divestitures (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Divestitures | |
Summary of recognized disposal gain in consolidated statements of operations | Year ended September 30, 2023 RMB Fair value of consideration received — Historical cost of remained investment 37,660 Carrying amount of Beijing’s net liabilities deconsolidated 378 Carrying amount of noncontrolling interest 2,703 Disposal gain of the deconsolidating Beijing Origin 40,741 Fair value of retained investment 66,448 Historical cost of remained investment 37,660 Gain is attributable to the 48.27% ownership interest retained in Beijing Origin 28,788 Gain on deconsolidated of subsidiary 69,529 |
CONDENSED FINANCIAL INFORMATI_2
CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY | |
Schedule of Condensed Balance Sheet | CONDENSED BALANCE SHEET September 30 2022 2023 2023 RMB RMB US$ ASSETS (LIABILITIES) Current assets (liabilities) Cash and cash equivalents 6,394 3,952 550 Other receivables 235 619 86 Due from inter-companies 216,571 237,923 33,138 Due to related parties 696 4,294 (237) Total current assets (liabilities) 223,896 246,788 33,537 Investment in unconsolidated subsidiaries (356,347) (302,606) (41,311) Total assets (liabilities) (132,451) (55,818) (7,774) AND EQUITY Total stockholders’ equity (deficit) (133,872) (57,398) (7,994) |
Schedule of Condensed Statement of Income and Comprehensive Income | CONDENSED STATEMENT OF INCOME AND COMPREHENSIVE INCOME Year ended September 30, 2021 2022 2023 2023 RMB RMB RMB US$ Revenues — — — — Operating expenses General and administrative (19,302) (5,246) (5,019) (699) Loss from operations (19,302) (5,246) (5,019) (699) Equity method loss (72,213) (1,004) 60,354 8,406 Interest expense (14) (15) (3) — Loss before income taxes (91,529) (6,265) 55,332 7,707 Income tax expense — — — — Net loss (91,529) (6,265) 55,332 7,707 Other comprehensive loss Foreign currency translation difference (816) 447 (214) (30) Total comprehensive loss (92,345) (5,818) 55,118 7,677 |
Schedule of Condensed Statement of Cash Flows | CONDENSED STATEMENT OF CASH FLOWS Year ended September 30, 2021 2022 2023 2023 RMB RMB RMB US$ Net cash provided by operating activities — (4,567) (19,864) (2,767) Net cash provided by financing activities (8,637) 1,614 17,636 2,456 Net increase in cash and cash equivalents (8,637) (2,953) (2,228) (311) Cash and cash equivalents, beginning of year 18,353 8,900 6,394 891 Effect of exchange rate changes on cash and cash equivalents (816) 447 (214) (30) Cash and cash equivalents, end of year 8,900 6,394 3,952 550 |
ORGANIZATION AND PRINCIPAL AC_3
ORGANIZATION AND PRINCIPAL ACTIVITIES (Details) | 12 Months Ended |
Sep. 30, 2023 | |
State Harvest Holdings Limited("State Harvest") | |
ORGANIZATION AND PRINCIPAL ACTIVITIES | |
Entity Incorporation, Date of Incorporation or Establishment | Oct. 06, 2004 |
Entity Incorporation, Place of Incorporation or Establishment | British Virgin Islands |
Percentage of Ownership | 100% |
Principal Activity | Investment Holding |
OAL SMY Limited | |
ORGANIZATION AND PRINCIPAL ACTIVITIES | |
Entity Incorporation, Date of Incorporation or Establishment | Jul. 28, 2021 |
Entity Incorporation, Place of Incorporation or Establishment | USA |
Percentage of Ownership | 100% |
Principal Activity | Investment Holding |
Beijing Origin State Harvest Biotechnology Limited ("BioTech") | |
ORGANIZATION AND PRINCIPAL ACTIVITIES | |
Entity Incorporation, Date of Incorporation or Establishment | Dec. 01, 2004 |
Entity Incorporation, Place of Incorporation or Establishment | People’s Republic of China (“PRC”) |
Percentage of Ownership | 100% |
Principal Activity | Hybrid seed technology development |
Hainan Aoyu Biotechnology Limited(Hainan Aoyu) | |
ORGANIZATION AND PRINCIPAL ACTIVITIES | |
Entity Incorporation, Date of Incorporation or Establishment | Mar. 02, 2022 |
Entity Incorporation, Place of Incorporation or Establishment | PRC |
Percentage of Ownership | 100% |
Principal Activity | Hybrid crop seed development, production and distribution |
Xinjiang Originbo Seed Company Limited (note (i)) ("Xinjiang Origin") | |
ORGANIZATION AND PRINCIPAL ACTIVITIES | |
Entity Incorporation, Date of Incorporation or Establishment | Jul. 13, 2011 |
Entity Incorporation, Place of Incorporation or Establishment | PRC |
Percentage of Ownership | 70.52% |
Principal Activity | Hybrid crop seed development, production and distribution |
Shandong Aoruixinong Agricultural Technology Limited (Shandong Aoruixinong) | |
ORGANIZATION AND PRINCIPAL ACTIVITIES | |
Entity Incorporation, Date of Incorporation or Establishment | Sep. 27, 2019 |
Entity Incorporation, Place of Incorporation or Establishment | PRC |
Percentage of Ownership | 51% |
Principal Activity | Agricultural seed products distribution through e-commune network |
Hubei Aoyu Zhongye Limited (Hubei Aoyu) | |
ORGANIZATION AND PRINCIPAL ACTIVITIES | |
Entity Incorporation, Date of Incorporation or Establishment | Oct. 22, 2018 |
Entity Incorporation, Place of Incorporation or Establishment | PRC |
Percentage of Ownership | 51% |
Principal Activity | Agricultural seed products distribution through e-commerce network |
Anhui Aoyu Zhongye Limited (Anhui Aoyu) | |
ORGANIZATION AND PRINCIPAL ACTIVITIES | |
Entity Incorporation, Date of Incorporation or Establishment | Jul. 25, 2018 |
Entity Incorporation, Place of Incorporation or Establishment | PRC |
Percentage of Ownership | 50% |
Principal Activity | Agricultural seed products distribution through e-commerce network |
Xuzhou Aoyu Zhongye Limited (Xuzhou Aoyu) | |
ORGANIZATION AND PRINCIPAL ACTIVITIES | |
Entity Incorporation, Date of Incorporation or Establishment | Sep. 25, 2018 |
Entity Incorporation, Place of Incorporation or Establishment | PRC |
Percentage of Ownership | 51% |
Principal Activity | Agricultural seed products distribution through e-commerce network |
Henan Aoyu Zhongye Limited (note (i)) ("Henan Aoyu") | |
ORGANIZATION AND PRINCIPAL ACTIVITIES | |
Entity Incorporation, Date of Incorporation or Establishment | Jul. 16, 2018 |
Entity Incorporation, Place of Incorporation or Establishment | PRC |
Percentage of Ownership | 51% |
Principal Activity | Agricultural seed products distribution through e-commerce network |
Henan Baodao Origin Agriculture and Animal Husbandry Co., Ltd ("Baodao Origin") | |
ORGANIZATION AND PRINCIPAL ACTIVITIES | |
Entity Incorporation, Date of Incorporation or Establishment | Nov. 23, 2022 |
Entity Incorporation, Place of Incorporation or Establishment | PRC |
Percentage of Ownership | 51% |
Principal Activity | Agricultural seed products distribution |
Shihezi Baodao Agriculture and Animal Husbandry Technology Co., Ltd | |
ORGANIZATION AND PRINCIPAL ACTIVITIES | |
Entity Incorporation, Date of Incorporation or Establishment | Mar. 08, 2023 |
Entity Incorporation, Place of Incorporation or Establishment | PRC |
Percentage of Ownership | 100% |
Principal Activity | Agricultural seed and feed products distribution |
ORGANIZATION AND PRINCIPAL AC_4
ORGANIZATION AND PRINCIPAL ACTIVITIES - Risks in relation to the VIE structure (Details) ¥ in Thousands, $ in Thousands | Sep. 30, 2023 CNY (¥) | Sep. 30, 2023 USD ($) | Sep. 30, 2022 CNY (¥) | Sep. 30, 2021 |
Current assets: | ||||
Cash and cash equivalents | ¥ 23,708 | $ 3,302 | ¥ 17,669 | |
Due from related party | ¥ (20,382) | $ (2,839) | ¥ (28,127) | |
Other Receivable, after Allowance for Credit Loss, Current, Related Party, Type [Extensible Enumeration] | Related Party [Member] | Related Party [Member] | Related Party [Member] | Related Party [Member] |
Accounts receivable, net | ¥ 839 | $ 117 | ¥ 619 | |
Advances to suppliers (note 5) | 71,617 | 9,975 | 20,022 | |
Inventories | 13,039 | 1,816 | 2,106 | |
Other current assets (note 7) | 12,197 | 1,699 | 12,997 | |
Total current assets (liabilities) | 141,782 | 19,748 | 81,540 | |
Land use rights, net (note 9) | 3,258 | 454 | 1,792 | |
Plant and equipment, net (note 10) | 21,102 | 2,939 | 46,389 | |
Other assets (note 13) | 4,895 | 682 | 0 | |
Total assets | 238,506 | 33,220 | 135,955 | |
Current liabilities | ||||
Current portion of long-term borrowings | 137,660 | |||
Accounts payable | 4,936 | 687 | 10,161 | |
Due to growers | 404 | 56 | 404 | |
Due to related parties (note 3) | ¥ 174,484 | $ 24,302 | ¥ 18,629 | |
Other Liability, Current, Related Party, Type [Extensible Enumeration] | Related Party [Member] | Related Party [Member] | Related Party [Member] | Related Party [Member] |
Advances from customers | ¥ 114,806 | $ 15,990 | ¥ 60,551 | |
Other payables and accrued expenses (note 15) | 17,945 | 2,501 | 64,568 | |
Total current liabilities | 313,461 | 43,660 | 292,865 | |
Total liabilities | 319,766 | 44,538 | 308,597 | |
VIE | ||||
Current assets: | ||||
Cash and cash equivalents | 2,142 | 298 | 950 | |
Accounts receivable, net | 189 | 26 | 304 | |
Advances to suppliers (note 5) | 64,502 | 8,984 | 8,456 | |
Inventories | 2,511 | 350 | ||
Other current assets (note 7) | 929 | 129 | 7,698 | |
Total current assets (liabilities) | 70,273 | 9,787 | 17,408 | |
Land use rights, net (note 9) | 1,792 | |||
Plant and equipment, net (note 10) | 18,771 | 2,614 | 32,952 | |
Equity investments | 130,541 | 18,182 | ||
Other assets (note 13) | 1,192 | 166 | 1,554 | |
Total assets | 220,777 | 30,749 | 53,706 | |
Current liabilities | ||||
Current portion of long-term borrowings | 137,660 | |||
Accounts payable | 318 | 44 | 10,064 | |
Due to growers | 404 | 56 | 404 | |
Due to related parties (note 3) | 6,205 | 864 | 24,136 | |
Advances from customers | 76,936 | 10,716 | 29,420 | |
Other payables and accrued expenses (note 15) | 1,266 | 176 | 58,954 | |
Total current liabilities | 85,129 | 11,856 | 260,638 | |
Other long-term liability | 6,177 | 860 | 15,732 | |
Total liabilities | ¥ 91,306 | $ 12,716 | ¥ 276,370 |
ORGANIZATION AND PRINCIPAL AC_5
ORGANIZATION AND PRINCIPAL ACTIVITIES - Additional information (Details) - CNY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 01, 2004 | Sep. 30, 2023 | Sep. 30, 2022 | |
Foreign investment | |||
ORGANIZATION AND PRINCIPAL ACTIVITIES | |||
Equity method investment ownership percentage | 49% | ||
VIEs | |||
ORGANIZATION AND PRINCIPAL ACTIVITIES | |||
Assets | ¥ 220.8 | ¥ 53.7 | |
Criteria One | State Harvest Holdings Limited("State Harvest") | |||
ORGANIZATION AND PRINCIPAL ACTIVITIES | |||
Equity method investment ownership percentage | 49% | ||
Criteria Two | State Harvest Holdings Limited("State Harvest") | |||
ORGANIZATION AND PRINCIPAL ACTIVITIES | |||
Equity method investment ownership percentage | 49% | ||
State Harvest Holdings Limited("State Harvest") | |||
ORGANIZATION AND PRINCIPAL ACTIVITIES | |||
Share exchange transaction variable interest entity voting rights assigned | 98.58% | ||
Period of operations | 20 years | ||
Disposition of assets | 50% |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Liquidity and Going Concern (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||
Sep. 30, 2023 CNY (¥) | Sep. 30, 2023 USD ($) | Sep. 30, 2022 CNY (¥) | Sep. 30, 2021 CNY (¥) | Sep. 30, 2023 USD ($) | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||||
Net Income (loss) | ¥ 62,669 | $ 8,728 | ¥ 2,325 | ¥ (127,081) | |
Working Capital Deficit | 171,678 | 211,325 | |||
Accumulated deficit | ¥ (601,566) | ¥ (656,898) | $ (83,786) |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) | Sep. 30, 2023 |
Maximum | Plant and building | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Property, plant and equipment useful life | 40 years |
Maximum | Machinery and equipment | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Property, plant and equipment useful life | 15 years |
Maximum | Furniture and office equipment | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Property, plant and equipment useful life | 8 years |
Maximum | Motor vehicles | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Property, plant and equipment useful life | 10 years |
Minimum | Plant and building | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Property, plant and equipment useful life | 20 years |
Minimum | Machinery and equipment | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Property, plant and equipment useful life | 10 years |
Minimum | Furniture and office equipment | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Property, plant and equipment useful life | 5 years |
Minimum | Motor vehicles | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Property, plant and equipment useful life | 5 years |
SUMMARY OF SIGNIFICANT ACCOUN_6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Acquired intangible assets net (Details) | Sep. 30, 2023 |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Finite-lived intangible asset useful life | 50 years |
Maximum | Technology rights for licensed seeds | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Finite-lived intangible asset useful life | 20 years |
Maximum | Distribution network | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Finite-lived intangible asset useful life | 14 years |
Minimum | Technology rights for licensed seeds | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Finite-lived intangible asset useful life | 3 years |
Minimum | Distribution network | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Finite-lived intangible asset useful life | 6 years |
SUMMARY OF SIGNIFICANT ACCOUN_7
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Government subsidies (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||
Government subsidies received | ¥ 1,145 | |
Government subsidies recognized as other income | ¥ 2,271 | ¥ 1,158 |
SUMMARY OF SIGNIFICANT ACCOUN_8
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Additional information (Details) ¥ in Thousands, $ in Thousands | 1 Months Ended | 12 Months Ended | |||||||||
Aug. 31, 2023 | Sep. 30, 2023 CNY (¥) | Sep. 30, 2023 USD ($) | Sep. 30, 2022 CNY (¥) | Sep. 30, 2021 CNY (¥) | Sep. 30, 2019 | Sep. 30, 2023 CNY (¥) | Sep. 30, 2023 USD ($) | Sep. 30, 2023 | Sep. 30, 2023 $ / ¥ | Sep. 30, 2022 USD ($) | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||||||||||
Net loss | ¥ 62,669 | $ 8,728 | ¥ 2,325 | ¥ (127,081) | |||||||
Accumulated deficit | (656,898) | ¥ (601,566) | $ (83,786) | ||||||||
Working capital deficit | 211,325 | ¥ 171,678 | |||||||||
Foreign currency exchange rate translation | 7.1798 | 7.0998 | |||||||||
Allowance for doubtful account | ¥ 0 | 0 | 401 | ||||||||
Land use right agreements term (in years) | 50 years | 50 years | |||||||||
Beijing Origin Seed Limited (note (i)) ("Beijing Origin") | |||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||||||||||
Ownership percentage by equity method investee (as a percent) | 48.27% | ||||||||||
Beijing Origin Seed Limited (note (i)) ("Beijing Origin") | |||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||||||||||
Ownership percentage by VEI subsidiary (as a percent) | 49% | ||||||||||
Advertising costs | |||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||||||||||
Advertising expense | ¥ 0 | 0 | ¥ 0 | ||||||||
Beijing Changping Technology Development Co. Ltd.("BC-TID") | Beijing Changping Technology Development Co. Ltd.("BC-TID") | |||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||||||||||
Ownership percentage by equity method investee (as a percent) | 48.27% | ||||||||||
Beijing Changping Technology Development Co. Ltd.("BC-TID") | Beijing Origin Seed Limited (note (i)) ("Beijing Origin") | |||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||||||||||
Ownership percentage by parent (as a percent) | 51% | 51% | |||||||||
Ownership percentage by VEI subsidiary (as a percent) | 48.27% | ||||||||||
Amount invested | ¥ 137,700 | $ 20,200 |
RELATED PARTY BALANCES AND TR_3
RELATED PARTY BALANCES AND TRANSACTIONS - Related party relationships (Details) - CNY (¥) ¥ in Millions | 1 Months Ended | 12 Months Ended |
Apr. 30, 2020 | Sep. 30, 2023 | |
Related Party Transaction | ||
Related party nature of relationship | Aoyu, Shandong Aoruixinong, Henan Aoyu, Shandong Aoruixinong | |
Linze Origin Seeds Ltd | ||
Related Party Transaction | ||
Equity method investment ownership percentage | 49% | |
Beijing Shihui | ||
Related Party Transaction | ||
Related party nature of relationship | Being owned by close family members of the Company’s Chairman | |
Linze Origin Seeds Ltd | ||
Related Party Transaction | ||
Related party nature of relationship | Being owned by close family members of the Company’s Chairman | |
Borrowing | ¥ 27 | |
Loan offered | ¥ 20 | |
Henan Yingde Agricultural Ltd | ||
Related Party Transaction | ||
Related party nature of relationship | Being owned by close family members of the Company’s Chairman | |
Beijing Liantaide Biotechnology Co., Ltd. | ||
Related Party Transaction | ||
Related party nature of relationship | Being owned by close family members of the Company’s Chairman | |
Beijing Agrite Co., Ltd. | ||
Related Party Transaction | ||
Related party nature of relationship | Being owned by close family members of the Company’s Chairman | |
Fifth Division State-owned Assets Management and Operation Co., Ltd | ||
Related Party Transaction | ||
Related party nature of relationship | Being the non-controlling interest of Xinjiang Origin | |
Shareholders | ||
Related Party Transaction | ||
Related party nature of relationship | Non-controlling shareholders of Hubei Aoyu, Anhui Aoyu, Xuzhou | |
Linze Fumin | Linze Fumin | ||
Related Party Transaction | ||
Equity method investment ownership percentage | 51% |
RELATED PARTY BALANCES AND TR_4
RELATED PARTY BALANCES AND TRANSACTIONS - Due from related parties, net (Details) ¥ in Thousands, $ in Thousands | Sep. 30, 2023 CNY (¥) | Sep. 30, 2023 USD ($) | Sep. 30, 2022 CNY (¥) | Sep. 30, 2021 |
Related Party Transaction | ||||
Total | ¥ 37,942 | ¥ 58,125 | ||
Allowance for doubtful account | 17,560 | 29,998 | ||
Due from related parties, net | ¥ 20,382 | $ 2,839 | ¥ 28,127 | |
Other Receivable, after Allowance for Credit Loss, Current, Related Party, Type [Extensible Enumeration] | Related Party [Member] | Related Party [Member] | Related Party [Member] | Related Party [Member] |
Seed sales | ¥ 839 | $ 117 | ¥ 619 | |
Advances for purchases raw materials | 71,617 | $ 9,975 | 20,022 | |
Linze Origin Seeds Ltd | ||||
Related Party Transaction | ||||
Total | 45 | 45 | ||
Beijing Shihui | ||||
Related Party Transaction | ||||
Total | 17,060 | 29,998 | ||
Shareholders | ||||
Related Party Transaction | ||||
Total | 5,336 | 9,165 | ||
Seed sales | 15 | |||
Advances for business use | 4,421 | |||
Advances for purchases raw materials | 900 | |||
Henan Yingde Agricultural Ltd. | ||||
Related Party Transaction | ||||
Total | 11,529 | |||
Beijing Liantaide | ||||
Related Party Transaction | ||||
Total | 9,046 | 7,466 | ||
Advances for purchases raw materials | 9,046 | |||
Beijing Origin | ||||
Related Party Transaction | ||||
Total | 450 | |||
The Company's Chairman | ||||
Related Party Transaction | ||||
Total | 5,999 | |||
The Close family of the Company's Chairman | ||||
Related Party Transaction | ||||
Total | ¥ 6 | ¥ 6 |
RELATED PARTY BALANCES AND TR_5
RELATED PARTY BALANCES AND TRANSACTIONS - Due to related parties (Details) ¥ in Thousands, $ in Thousands | Sep. 30, 2023 CNY (¥) | Sep. 30, 2023 USD ($) | Sep. 30, 2022 CNY (¥) |
Related Party Transaction | |||
Due to related parties | ¥ 174,484 | $ 24,302 | ¥ 18,629 |
Henan Agriculture University | |||
Related Party Transaction | |||
Due to related parties | 1,000 | ||
Xinjiang Ginbo Seeds Center | |||
Related Party Transaction | |||
Due to related parties | 54 | 54 | |
Companies controlled by the Company's directors | |||
Related Party Transaction | |||
Due to related parties | 1,721 | 1,702 | |
Majority Shareholder [Member] | |||
Related Party Transaction | |||
Due to related parties | 15,434 | 10,123 | |
Unsecured borrowing included in due to shareholders | 5,381 | ||
Accrued interest | 354 | ||
Advances from shareholders of selling seed | 9,699 | ||
Beijing Origin | |||
Related Party Transaction | |||
Due to related parties | 148,219 | ||
The Company's Chairman | |||
Related Party Transaction | |||
Due to related parties | 3,657 | 970 | |
Close family of the Company's Chairman | |||
Related Party Transaction | |||
Due to related parties | 4,293 | ||
Ying De | |||
Related Party Transaction | |||
Due to related parties | ¥ 5,399 | 187 | |
Linze Origin Seeds Ltd | |||
Related Party Transaction | |||
Due to related parties | ¥ 300 |
RELATED PARTY BALANCES AND TR_6
RELATED PARTY BALANCES AND TRANSACTIONS - Transactions with related parties (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Sales | |||
Related Party Transaction | |||
Related party transaction amounts of transaction | ¥ 11,061 | ¥ 8,015 | ¥ 7,835 |
Purchases | |||
Related Party Transaction | |||
Related party transaction amounts of transaction | 6,496 | 23,749 | 19,326 |
Ying De | Sales | |||
Related Party Transaction | |||
Related party transaction amounts of transaction | 6,384 | 1,818 | 3,134 |
Ying De | Purchases | |||
Related Party Transaction | |||
Related party transaction amounts of transaction | 162 | 14,012 | 11,700 |
Linze Origin Seeds Ltd | Purchases | |||
Related Party Transaction | |||
Related party transaction amounts of transaction | 4,706 | ||
Beijing Shihui | Purchases | |||
Related Party Transaction | |||
Related party transaction amounts of transaction | 360 | ||
Liantaide | Purchases | |||
Related Party Transaction | |||
Related party transaction amounts of transaction | 6,334 | 9,708 | |
Shareholders | Sales | |||
Related Party Transaction | |||
Related party transaction amounts of transaction | ¥ 4,677 | ¥ 3,574 | 4,701 |
Percentage of company's sale | 5% | 6.80% | |
Shareholders | Purchases | |||
Related Party Transaction | |||
Related party transaction amounts of transaction | 2,227 | ||
Shareholders | Borrowing | Minimum | |||
Related Party Transaction | |||
Borrowing interest rate | 5.80% | ||
Shareholders | Borrowing | Maximum | |||
Related Party Transaction | |||
Borrowing interest rate | 12% | ||
Henan Agriculture University | Sales | |||
Related Party Transaction | |||
Related party transaction amounts of transaction | ¥ 0 | ¥ 5 | |
The Close family of the Company's Chairman | Sales | |||
Related Party Transaction | |||
Related party transaction amounts of transaction | ¥ 0 | 2,618 | |
The Close family of the Company's Chairman | Purchases | |||
Related Party Transaction | |||
Related party transaction amounts of transaction | ¥ 29 | ¥ 333 |
ADVANCES TO SUPPLIERS (Details)
ADVANCES TO SUPPLIERS (Details) ¥ in Thousands, $ in Thousands | Sep. 30, 2023 CNY (¥) | Sep. 30, 2023 USD ($) | Sep. 30, 2022 CNY (¥) |
ADVANCES TO SUPPLIERS | |||
Prepayments for purchasing seed | ¥ 67,048 | ¥ 18,378 | |
Prepayments for purchasing package | 163 | 630 | |
Deposits for research and development fee | 107 | 207 | |
Others | 4,299 | 807 | |
Advances to suppliers | ¥ 71,617 | $ 9,975 | ¥ 20,022 |
INVENTORIES (Details)
INVENTORIES (Details) ¥ in Thousands, $ in Thousands | Sep. 30, 2023 CNY (¥) | Sep. 30, 2023 USD ($) | Sep. 30, 2022 CNY (¥) |
INVENTORIES | |||
Work in progress | ¥ 13,039 | ¥ 2,106 | |
Inventories | 13,039 | $ 1,816 | 2,106 |
Asset pledged as collateral | |||
INVENTORIES | |||
Inventories | ¥ 0 | ¥ 0 |
INVENTORIES - Current (Details)
INVENTORIES - Current (Details) - CNY (¥) ¥ in Thousands | Sep. 30, 2023 | Sep. 30, 2022 |
Low value supplies | ||
Work in progress | ¥ 13,039 | ¥ 2,106 |
OTHER CURRENT ASSETS (Details)
OTHER CURRENT ASSETS (Details) ¥ in Thousands, $ in Thousands | Sep. 30, 2023 CNY (¥) | Sep. 30, 2023 USD ($) | Sep. 30, 2022 CNY (¥) |
OTHER CURRENT ASSETS | |||
Advances to staff for business use | ¥ 1,756 | ¥ 680 | |
Rental receivable | 7,663 | ||
Receivable from third party | 9,823 | 1,300 | |
Others | 618 | 3,354 | |
Other Assets, Current | ¥ 12,197 | $ 1,699 | ¥ 12,997 |
LAND USE RIGHTS, NET - Land use
LAND USE RIGHTS, NET - Land use rights, net (Details) ¥ in Thousands, $ in Thousands | Sep. 30, 2023 CNY (¥) | Sep. 30, 2023 USD ($) | Sep. 30, 2022 CNY (¥) |
LAND USE RIGHTS, NET | |||
Land use rights | ¥ 16,781 | ¥ 16,564 | |
Accumulated amortization | (3,219) | (4,468) | |
Impairment provision | (10,304) | (10,304) | |
Land use rights, net | ¥ 3,258 | $ 454 | ¥ 1,792 |
LAND USE RIGHTS, NET - Addition
LAND USE RIGHTS, NET - Additional information (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
LAND USE RIGHTS, NET | ||
Depreciation expenses of land use rights | ¥ 95 | ¥ 331 |
PLANT AND EQUIPMENT, NET - Plan
PLANT AND EQUIPMENT, NET - Plant and equipment, net (Details) ¥ in Thousands, $ in Thousands | Sep. 30, 2023 CNY (¥) | Sep. 30, 2023 USD ($) | Sep. 30, 2022 CNY (¥) |
PLANT AND EQUIPMENT, NET | |||
Plant and building | ¥ 100,478 | ¥ 143,808 | |
Machinery and equipment | 70,398 | 73,357 | |
Furniture and office equipment | 12,035 | 12,367 | |
Motor vehicles | 3,735 | 3,590 | |
Accumulated depreciation | (57,257) | (76,196) | |
Accumulated impairment | (110,537) | (110,537) | |
Construction in progress | 2,250 | ||
Plant and equipment, net | ¥ 21,102 | $ 2,939 | ¥ 46,389 |
PLANT AND EQUIPMENT, NET - Addi
PLANT AND EQUIPMENT, NET - Additional information (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
PLANT AND EQUIPMENT, NET | ||
Depreciation expenses | ¥ 3,130 | ¥ 2,700 |
LONG TERM INVESTMENTS (Details)
LONG TERM INVESTMENTS (Details) - CNY (¥) ¥ in Thousands | Sep. 30, 2023 | Sep. 30, 2022 |
LONG TERM INVESTMENTS | ||
Impairment on equity investment without readily determinable fair value | ¥ 18,721 | ¥ 17,231 |
Jilin Jinong Hi-tech Development Shares Co., Ltd. ("Jinong") | ||
LONG TERM INVESTMENTS | ||
Equity method investment ownership percentage | 17.94% | 17.94% |
Nianfeng Minfu | ||
LONG TERM INVESTMENTS | ||
Equity method investment ownership percentage | 20% | |
Beijing Origin | ||
LONG TERM INVESTMENTS | ||
Equity method investment ownership percentage | 48.27% |
LONG TERM INVESTMENTS - Equity
LONG TERM INVESTMENTS - Equity investments (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
LONG TERM INVESTMENTS | ||
Cost method investment | ¥ 18,921 | ¥ 18,921 |
Equity investment | 66,448 | |
Impairment on cost method investment | (18,721) | (17,231) |
Equity investment without readily determinable fair value | 66,648 | ¥ 1,690 |
Cost method investment amount | 37,660 | |
Fair value adjustment | ¥ 28,790 |
ACQUIRED INTANGIBLE ASSETS, N_3
ACQUIRED INTANGIBLE ASSETS, NET (Details) - CNY (¥) ¥ in Thousands | Sep. 30, 2023 | Sep. 30, 2022 |
ACQUIRED INTANGIBLE ASSETS, NET | ||
Gross Carrying Amount | ¥ 77,487 | ¥ 80,638 |
Accumulated Amortization | (73,877) | (73,092) |
Impairment provision | (3,610) | (4,557) |
Acquired intangible assets, net | 2,989 | |
Technology rights for licensed seeds | ||
ACQUIRED INTANGIBLE ASSETS, NET | ||
Gross Carrying Amount | 72,748 | 75,899 |
Others | ||
ACQUIRED INTANGIBLE ASSETS, NET | ||
Gross Carrying Amount | ¥ 4,739 | ¥ 4,739 |
ACQUIRED INTANGIBLE ASSETS, N_4
ACQUIRED INTANGIBLE ASSETS, NET - Additional information (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
ACQUIRED INTANGIBLE ASSETS, NET | ||
Amortization expenses | ¥ 790 | ¥ 790 |
Impairment of acquired intangible assets | 2,200 | |
Acquired intangible assets, net | ¥ 0 | |
Minimum | Technology rights for licensed seeds | ||
ACQUIRED INTANGIBLE ASSETS, NET | ||
Average usage period | 3 years | |
Maximum | Technology rights for licensed seeds | ||
ACQUIRED INTANGIBLE ASSETS, NET | ||
Average usage period | 20 years |
LEASES (Details)
LEASES (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||
Sep. 30, 2023 CNY (¥) | Sep. 30, 2022 CNY (¥) | Sep. 30, 2023 USD ($) | |
LEASES | |||
Operating lease right-of-use assets, net | ¥ 821 | ¥ 1,555 | $ 114 |
Operating lease liability | 821 | ||
Impairment of right of use assets | ¥ 0 | ¥ 0 | |
Weighted-average remaining lease term | 1 year 9 months 18 days | 1 year 9 months 18 days | |
Weighted-average discount rate | 4.90% | 4.90% |
LEASES - Components of lease ex
LEASES - Components of lease expense (Details) ¥ in Thousands | 12 Months Ended |
Sep. 30, 2023 CNY (¥) | |
LEASES | |
Operating lease cost | ¥ 241 |
Total | ¥ 6 |
LEASES - Maturity of operating
LEASES - Maturity of operating lease liabilities (Details) ¥ in Thousands | Sep. 30, 2023 CNY (¥) |
Maturity of operating lease liabilities | |
2024 | ¥ 178 |
2025 | 63 |
Total | ¥ 241 |
OTHER PAYABLES AND ACCRUED EX_3
OTHER PAYABLES AND ACCRUED EXPENSES (Details) - CNY (¥) ¥ in Thousands | Sep. 30, 2023 | Sep. 30, 2022 |
OTHER PAYABLES AND ACCRUED EXPENSES | ||
Payable for purchase of plant and equipment | ¥ 1,000 | ¥ 5,789 |
Salaries and bonus payable | 7,626 | 4,908 |
Accrued interest | 20,388 | |
Other taxes payable | 4,159 | |
Deposits from others | 4,689 | |
Deferred government subsidies | 363 | 887 |
Payable for penalty | 12,734 | |
Others | 7,376 | 9,958 |
Other payables and accrued expenses | ¥ 17,945 | ¥ 64,932 |
STOCK-BASED COMPENSATION - Stoc
STOCK-BASED COMPENSATION - Stock option activity (Details) - ¥ / shares | 12 Months Ended | |||||
May 22, 2023 | Jan. 03, 2022 | Apr. 14, 2021 | Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
STOCK-BASED COMPENSATION | ||||||
Number of options granted | 38,000 | 40,000 | ||||
Tranche 11 | ||||||
STOCK-BASED COMPENSATION | ||||||
Grant date | Jan. 04, 2016 | |||||
Options outstanding | 12,500 | 12,500 | 13,500 | |||
Number of options granted | 0 | 0 | 0 | |||
Options exercised | 0 | 0 | 0 | |||
Options cancelled/expired | (12,500) | 0 | (1,000) | |||
Options outstanding | 0 | 12,500 | 12,500 | |||
Options vested and exercisable | 0 | 12,500 | 12,500 | |||
Weighted average fair value at the grant date (USD) | ¥ 9 | |||||
Tranche 12 | ||||||
STOCK-BASED COMPENSATION | ||||||
Grant date | Apr. 19, 2016 | |||||
Options outstanding | 0 | 0 | 60,000 | |||
Number of options granted | 0 | 0 | 0 | |||
Options exercised | 0 | 0 | 0 | |||
Options cancelled/expired | 0 | 0 | (60,000) | |||
Options outstanding | 0 | 0 | 0 | |||
Options vested and exercisable | 0 | 0 | 0 | |||
Weighted average fair value at the grant date (USD) | ¥ 15.4 | |||||
Tranche 13 | ||||||
STOCK-BASED COMPENSATION | ||||||
Grant date | May 16, 2016 | |||||
Options outstanding | 0 | 0 | 20,000 | |||
Number of options granted | 0 | 0 | 0 | |||
Options exercised | 0 | 0 | 0 | |||
Options cancelled/expired | 0 | 0 | (20,000) | |||
Options outstanding | 0 | 0 | 0 | |||
Options vested and exercisable | 0 | 0 | 0 | |||
Weighted average fair value at the grant date (USD) | ¥ 12.4 | |||||
Tranche 14 | ||||||
STOCK-BASED COMPENSATION | ||||||
Grant date | Aug. 03, 2016 | |||||
Options outstanding | 0 | 0 | 20,000 | |||
Number of options granted | 0 | 0 | 0 | |||
Options exercised | 0 | 0 | 0 | |||
Options cancelled/expired | 0 | 0 | (20,000) | |||
Options outstanding | 0 | 0 | 0 | |||
Options vested and exercisable | 0 | 0 | 0 | |||
Weighted average fair value at the grant date (USD) | ¥ 14.4 | |||||
Tranche Fifteen [Member] | ||||||
STOCK-BASED COMPENSATION | ||||||
Grant date | Jan. 03, 2017 | |||||
Options outstanding | 14,000 | 18,000 | 18,000 | |||
Number of options granted | 0 | 0 | 0 | |||
Options exercised | 0 | 0 | 0 | |||
Options cancelled/expired | (14,000) | (4,000) | 0 | |||
Options outstanding | 0 | 14,000 | 18,000 | |||
Options vested and exercisable | 0 | 14,000 | 18,000 | |||
Weighted average fair value at the grant date (USD) | ¥ 4 | |||||
Tranche 16 | ||||||
STOCK-BASED COMPENSATION | ||||||
Grant date | Oct. 02, 2017 | |||||
Options outstanding | 0 | 0 | 2,500 | |||
Number of options granted | 0 | 0 | 0 | |||
Options exercised | 0 | 0 | 0 | |||
Options cancelled/expired | 0 | 0 | (2,500) | |||
Options outstanding | 0 | 0 | 0 | |||
Options vested and exercisable | 0 | 0 | 0 | |||
Weighted average fair value at the grant date (USD) | ¥ 7.7 | |||||
Tranche 17 | ||||||
STOCK-BASED COMPENSATION | ||||||
Grant date | Dec. 22, 2017 | |||||
Options outstanding | 0 | 1,800 | 8,800 | |||
Number of options granted | 0 | 0 | 0 | |||
Options exercised | 0 | (1,000) | (1,000) | |||
Options cancelled/expired | 0 | (800) | (6,000) | |||
Options outstanding | 0 | 0 | 1,800 | |||
Options vested and exercisable | 0 | 0 | 1,800 | |||
Weighted average fair value at the grant date (USD) | ¥ 4.4 | |||||
Tranche 18 | ||||||
STOCK-BASED COMPENSATION | ||||||
Grant date | Jan. 02, 2018 | |||||
Options outstanding | 19,000 | 19,000 | 29,000 | |||
Number of options granted | 0 | 0 | 0 | |||
Options exercised | 0 | 0 | 0 | |||
Options cancelled/expired | (19,000) | 0 | (10,000) | |||
Options outstanding | 0 | 19,000 | 19,000 | |||
Options vested and exercisable | 0 | 19,000 | 19,000 | |||
Weighted average fair value at the grant date (USD) | ¥ 5.1 | |||||
Tranche 19 | ||||||
STOCK-BASED COMPENSATION | ||||||
Grant date | Mar. 01, 2018 | |||||
Options outstanding | 20,000 | 20,000 | 20,000 | |||
Number of options granted | 0 | 0 | 0 | |||
Options exercised | (5,497) | 0 | 0 | |||
Options cancelled/expired | (10,503) | 0 | 0 | |||
Options outstanding | 4,000 | 20,000 | 20,000 | |||
Options vested and exercisable | 4,000 | 20,000 | 20,000 | |||
Weighted average fair value at the grant date (USD) | ¥ 5.1 | |||||
Tranche 20 | ||||||
STOCK-BASED COMPENSATION | ||||||
Grant date | Jan. 02, 2019 | |||||
Options outstanding | 36,000 | 36,000 | 36,000 | |||
Number of options granted | 0 | 0 | 0 | |||
Options exercised | 0 | 0 | 0 | |||
Options cancelled/expired | 0 | 0 | 0 | |||
Options outstanding | 36,000 | 36,000 | 36,000 | |||
Options vested and exercisable | 36,000 | 36,000 | 36,000 | |||
Weighted average fair value at the grant date (USD) | ¥ 4 | |||||
Tranche 21 | ||||||
STOCK-BASED COMPENSATION | ||||||
Grant date | Jan. 02, 2020 | |||||
Options outstanding | 38,000 | 38,000 | 38,000 | |||
Number of options granted | 160,000 | 0 | 0 | 0 | ||
Options exercised | 0 | 0 | 0 | |||
Options cancelled/expired | 0 | 0 | 0 | |||
Options outstanding | 38,000 | 38,000 | 38,000 | |||
Options vested and exercisable | 38,000 | 38,000 | 38,000 | |||
Weighted average fair value at the grant date (USD) | ¥ 2.5 | |||||
Tranche 22 | ||||||
STOCK-BASED COMPENSATION | ||||||
Grant date | Apr. 14, 2021 | |||||
Options outstanding | 123,560 | 139,070 | 0 | |||
Number of options granted | 0 | 0 | 160,000 | |||
Options exercised | 0 | (15,510) | (20,930) | |||
Options cancelled/expired | (14,860) | 0 | 0 | |||
Options outstanding | 108,700 | 123,560 | 139,070 | |||
Options vested and exercisable | 108,700 | 123,560 | 139,070 | |||
Weighted average fair value at the grant date (USD) | ¥ 12.5 | |||||
Tranche 23 | ||||||
STOCK-BASED COMPENSATION | ||||||
Grant date | Jan. 03, 2022 | |||||
Options outstanding | 40,000 | 0 | 0 | |||
Number of options granted | 0 | 40,000 | 0 | |||
Options exercised | 0 | 0 | 0 | |||
Options cancelled/expired | (2,000) | 0 | 0 | |||
Options outstanding | 38,000 | 40,000 | 0 | |||
Options vested and exercisable | 38,000 | 40,000 | 0 | |||
Weighted average fair value at the grant date (USD) | ¥ 5.4 | |||||
Tranche 24 | ||||||
STOCK-BASED COMPENSATION | ||||||
Options outstanding | 0 | 0 | 0 | |||
Number of options granted | 36,000 | 0 | 0 | |||
Options exercised | 0 | 0 | 0 | |||
Options cancelled/expired | 0 | 0 | 0 | |||
Options outstanding | 36,000 | 0 | 0 | |||
Options vested and exercisable | 36,000 | 0 | 0 | |||
Weighted average fair value at the grant date (USD) | ¥ 4.6 |
STOCK-BASED COMPENSATION - Blac
STOCK-BASED COMPENSATION - Black-Scholes Option Pricing (Details) - $ / shares | 12 Months Ended | |||
May 22, 2023 | Jan. 03, 2022 | Apr. 14, 2021 | Sep. 30, 2023 | |
Exercise price (US$) | $ 6.79 | $ 7.23 | ||
Tranche 11 | ||||
Exercise price (US$) | $ 13.8 | |||
Average risk-free interest rate | 1.73% | |||
Expected option life (year) | 5 years | |||
Volatility rate | 80.72% | |||
Dividend yield | 0% | |||
Tranche 12 | ||||
Exercise price (US$) | $ 20.5 | |||
Average risk-free interest rate | 1.79% | |||
Expected option life (year) | 10 years | |||
Volatility rate | 69.27% | |||
Dividend yield | 0% | |||
Tranche 13 | ||||
Exercise price (US$) | $ 16.5 | |||
Average risk-free interest rate | 1.75% | |||
Expected option life (year) | 10 years | |||
Volatility rate | 69.92% | |||
Dividend yield | 0% | |||
Tranche 14 | ||||
Exercise price (US$) | $ 20 | |||
Average risk-free interest rate | 1.55% | |||
Expected option life (year) | 10 years | |||
Volatility rate | 65.37% | |||
Dividend yield | 0% | |||
Tranche 15 | ||||
Exercise price (US$) | $ 20.7 | |||
Average risk-free interest rate | 1.94% | |||
Expected option life (year) | 5 years | |||
Volatility rate | 63.87% | |||
Dividend yield | 0% | |||
Tranche 16 | ||||
Exercise price (US$) | $ 16.50 | |||
Average risk-free interest rate | 1.94% | |||
Expected option life (year) | 5 years | |||
Volatility rate | 52.40% | |||
Dividend yield | 0% | |||
Tranche 17 | ||||
Exercise price (US$) | $ 8 | |||
Average risk-free interest rate | 2.26% | |||
Expected option life (year) | 5 years | |||
Volatility rate | 63.16% | |||
Dividend yield | 0% | |||
Tranche 18 | ||||
Exercise price (US$) | $ 9.1 | |||
Average risk-free interest rate | 2.25% | |||
Expected option life (year) | 5 years | |||
Volatility rate | 64.58% | |||
Dividend yield | 0% | |||
Tranche 19 | ||||
Exercise price (US$) | $ 8.2 | |||
Average risk-free interest rate | 2.58% | |||
Expected option life (year) | 5 years | |||
Volatility rate | 68.19% | |||
Dividend yield | 0% | |||
Tranche 20 | ||||
Exercise price (US$) | $ 5.19 | |||
Average risk-free interest rate | 2.49% | |||
Expected option life (year) | 5 years | |||
Volatility rate | 103.32% | |||
Dividend yield | 0% | |||
Tranche 21 | ||||
Exercise price (US$) | $ 13.99 | $ 5.30 | ||
Average risk-free interest rate | 1.67% | |||
Expected option life (year) | 5 years | |||
Volatility rate | 52.62% | |||
Dividend yield | 0% | |||
Tranche 22 | ||||
Exercise price (US$) | $ 15.85 | |||
Average risk-free interest rate | 0.87% | |||
Expected option life (year) | 5 years | |||
Volatility rate | 109.92% | |||
Dividend yield | 0% | |||
Tranche 23 | ||||
Exercise price (US$) | $ 7.23 | |||
Average risk-free interest rate | 1.37% | |||
Expected option life (year) | 5 years | |||
Volatility rate | 100.95% | |||
Dividend yield | 0% | |||
Tranche 24 | ||||
Exercise price (US$) | $ 6.79 | |||
Average risk-free interest rate | 0.04% | |||
Expected option life (year) | 10 years | |||
Volatility rate | 0.74% | |||
Dividend yield | 0% |
STOCK-BASED COMPENSATION - Addi
STOCK-BASED COMPENSATION - Additional information (Details) $ / shares in Units, ¥ in Thousands, $ in Thousands | 7 Months Ended | 12 Months Ended | |||||||||||
May 22, 2023 $ / shares shares | Jan. 03, 2022 $ / shares shares | Apr. 14, 2021 $ / shares shares | Sep. 01, 2018 $ / shares | Jun. 01, 2018 $ / shares | Mar. 01, 2018 $ / shares | Sep. 30, 2018 USD ($) shares | Sep. 30, 2023 CNY (¥) shares | Sep. 30, 2023 USD ($) $ / shares shares | Sep. 30, 2022 CNY (¥) shares | Sep. 30, 2021 CNY (¥) shares | Sep. 30, 2020 shares | Sep. 30, 2022 USD ($) shares | |
Number of options granted | 38,000 | 40,000 | |||||||||||
Exercise price (USD) | $ / shares | $ 6.79 | $ 7.23 | |||||||||||
Share-based compensation arrangement by share-based payment award, options, outstanding, weighted average remaining contractual term | 0 years | 0 years | 3 months 3 days | ||||||||||
Share-based compensation expense | ¥ 1,163 | $ 162 | ¥ 1,038 | ¥ 10,952 | |||||||||
Aggregate intrinsic value | $ | $ 319 | ||||||||||||
Treasury stock | 14,386 | 14,386 | |||||||||||
Employees | |||||||||||||
Sale of treasury stock (in shares) | 30,000 | 30,000 | |||||||||||
Share-based compensation expense | ¥ | ¥ 1,595 | ||||||||||||
Decrease in treasury stock value | ¥ | 7,212 | ||||||||||||
Cost of treasury stocks | ¥ | ¥ 4,223 | ||||||||||||
Tranche 11 | |||||||||||||
Number of options granted | 0 | 0 | 0 | 0 | |||||||||
Exercise price (USD) | $ / shares | $ 13.8 | ||||||||||||
Tranche 12 | |||||||||||||
Number of options granted | 0 | 0 | 0 | 0 | |||||||||
Exercise price (USD) | $ / shares | $ 20.5 | ||||||||||||
Tranche 13 | |||||||||||||
Number of options granted | 0 | 0 | 0 | 0 | |||||||||
Exercise price (USD) | $ / shares | $ 16.5 | ||||||||||||
Tranche 14 | |||||||||||||
Number of options granted | 0 | 0 | 0 | 0 | |||||||||
Exercise price (USD) | $ / shares | $ 20 | ||||||||||||
Tranche 15 | |||||||||||||
Number of options granted | 0 | 0 | 0 | 0 | |||||||||
Exercise price (USD) | $ / shares | $ 20.7 | ||||||||||||
Tranche 16 | |||||||||||||
Number of options granted | 0 | 0 | 0 | 0 | |||||||||
Exercise price (USD) | $ / shares | $ 16.50 | ||||||||||||
Tranche 17 | |||||||||||||
Number of options granted | 0 | 0 | 0 | 0 | |||||||||
Exercise price (USD) | $ / shares | $ 8 | ||||||||||||
Tranche 18 | |||||||||||||
Number of options granted | 0 | 0 | 0 | 0 | |||||||||
Exercise price (USD) | $ / shares | $ 9.1 | ||||||||||||
Tranche 19 | |||||||||||||
Number of options granted | 0 | 0 | 0 | 0 | |||||||||
Exercise price (USD) | $ / shares | $ 8.2 | ||||||||||||
Tranche 20 | |||||||||||||
Number of options granted | 0 | 0 | 0 | 0 | |||||||||
Exercise price (USD) | $ / shares | $ 5.19 | ||||||||||||
Tranche 21 | |||||||||||||
Number of options granted | 160,000 | 0 | 0 | 0 | 0 | ||||||||
Exercise price (USD) | $ / shares | $ 13.99 | $ 5.30 | |||||||||||
Tranche Twenty Four [Member] | |||||||||||||
Number of options granted | 36,000 | 36,000 | 0 | 0 | |||||||||
Exercise price (USD) | $ / shares | $ 6.79 | ||||||||||||
2005 Performance Equity Plan | Tranche 5 | After Adjustment Awards | |||||||||||||
Exercise price (USD) | $ / shares | 20.7 | ||||||||||||
2005 Performance Equity Plan | Tranche 9 | After Adjustment Awards | |||||||||||||
Exercise price (USD) | $ / shares | $ 5.19 | ||||||||||||
2009 Performance Equity Plan | |||||||||||||
Share-based compensation arrangement by share-based payment award, number of shares available for grant | 0 | 33,000 | 33,000 | ||||||||||
Restricted Stock | |||||||||||||
Number of options granted | 320,000 | ||||||||||||
Share-based compensation expense | ¥ | ¥ 0 | ¥ 0 | ¥ 11,600 | ||||||||||
Restricted Stock | Board of Directors Chairman | |||||||||||||
Number of options granted | 22,500 | ||||||||||||
Exercise price (USD) | $ / shares | $ 6.6 | $ 7.2 | |||||||||||
Share-based compensation arrangement by share-based payment award, plan modification, incremental compensation cost | $ | $ 167,925 | ||||||||||||
Restricted Stock | Board of Directors Chairman | After Adjustment Awards | |||||||||||||
Exercise price (USD) | $ / shares | $ 8.6 | ||||||||||||
2014 Performance Equity Plan [Member] | |||||||||||||
Share-based compensation arrangement by share-based payment award, number of shares available for grant | 303,060 | 284,370 | 284,370 | ||||||||||
Employee service share-based compensation, nonvested awards, total compensation cost not yet recognized, stock options | ¥ | ¥ 170 | ¥ 0 | |||||||||||
Share-based Payment Arrangement, Option | Employees | |||||||||||||
Share-based compensation expense | ¥ | ¥ 1,040 | ¥ 10,950 | ¥ 660 | ||||||||||
Minimum | |||||||||||||
Share based compensation arrangement by share based payment award expiration period | 5 years | 5 years | |||||||||||
Share-based compensation arrangement by share-based payment award, award vesting period | 1 year | 1 year | |||||||||||
Minimum | After Adjustment Awards | |||||||||||||
Share based compensation arrangement by share based payment award expiration period | 5 years | 5 years | |||||||||||
Share-based compensation arrangement by share-based payment award, award vesting period | 1 year | 1 year | |||||||||||
Maximum | |||||||||||||
Share based compensation arrangement by share based payment award expiration period | 10 years | 10 years | |||||||||||
Share-based compensation arrangement by share-based payment award, award vesting period | 5 years | 5 years | |||||||||||
Maximum | After Adjustment Awards | |||||||||||||
Share based compensation arrangement by share based payment award expiration period | 10 years | 10 years | |||||||||||
Share-based compensation arrangement by share-based payment award, award vesting period | 10 years | 10 years |
SHARE CAPITAL (Details)
SHARE CAPITAL (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||||
Sep. 30, 2023 CNY (¥) shares | Sep. 30, 2023 USD ($) shares | Sep. 30, 2022 CNY (¥) shares | Sep. 30, 2022 USD ($) shares | Sep. 30, 2021 CNY (¥) shares | Sep. 30, 2021 USD ($) shares | |
SHARE CAPITAL | ||||||
Proceeds from issuance of common stock | ¥ 19,594 | $ 2,729 | ¥ 11,014 | ¥ 17,166 | ||
Exercise of share option | ¥ | 599 | ¥ 566 | ¥ 745 | |||
Capital contribution from NCI | 10,480 | 1,460 | ||||
Cash dividend to NCI | ¥ 200,000 | $ 27,856 | ||||
At the market arrangement | ||||||
SHARE CAPITAL | ||||||
Issuance of common shares (in shares) | 320,000 | 320,000 | 201,000 | 201,000 | 219,440 | 219,440 |
Proceeds from issuance of common stock | ¥ 19,960 | $ 2,780 | ¥ 11,000 | $ 1,650 | ¥ 17,200 | $ 2,620 |
Exercise of share option (in shares) | 11,000 | 11,000 | 16,510 | 16,510 | 21,930 | 21,930 |
Exercise of share option | $ 0 | ¥ 340,454 | $ 53,580 | $ 0 |
RENTAL INCOME (Details)
RENTAL INCOME (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Sep. 30, 2023 CNY (¥) | Sep. 30, 2023 USD ($) | Sep. 30, 2022 CNY (¥) | Sep. 30, 2021 CNY (¥) | |
RENTAL INCOME | ||||
Rental income | ¥ 10,600 | $ 1,477 | ¥ 10,603 | ¥ 10,603 |
INCOME TAXES - Deferred income
INCOME TAXES - Deferred income tax (Details) - CNY (¥) ¥ in Thousands | Sep. 30, 2023 | Sep. 30, 2022 |
Non-current deferred tax assets: | ||
Net operating loss carry forward | ¥ 40,621 | ¥ 118,410 |
Impairment loss | 35,119 | 36,567 |
Others | 18,933 | 22,859 |
Non-current deferred income tax assets | 94,673 | 177,836 |
Valuation allowances | (94,673) | (177,836) |
Net non-current deferred income tax assets | ¥ 0 | ¥ 0 |
INCOME TAXES - Reconciliation (
INCOME TAXES - Reconciliation (Details) | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
INCOME TAXES | |||
Statutory rate | 25% | 25% | 25% |
Change in valuation allowance | (25.00%) | (25.00%) | (25.00%) |
Over provision in prior year | (1.00%) | ||
Effective income tax rate | (1.00%) |
INCOME TAXES- Additional inform
INCOME TAXES- Additional information (Details) | 1 Months Ended | 12 Months Ended | ||
Jan. 30, 2008 | Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
INCOME TAXES | ||||
Tax rate of the PRC Enterprise Income Tax (EIT) | 25% | 25% | 25% | |
China tax authority | The open tax years for examinations in China are 5 years. | |||
Maximum | ||||
INCOME TAXES | ||||
Tax rate of the PRC Enterprise Income Tax (EIT) | 33% | |||
Minimum | ||||
INCOME TAXES | ||||
Tax rate of the PRC Enterprise Income Tax (EIT) | 25% |
INCOME_(LOSS) PER SHARE (Detail
INCOME/(LOSS) PER SHARE (Details) ¥ / shares in Units, ¥ in Thousands | 12 Months Ended | |||
Sep. 30, 2023 $ / shares | Sep. 30, 2023 CNY (¥) ¥ / shares shares | Sep. 30, 2022 CNY (¥) ¥ / shares shares | Sep. 30, 2021 CNY (¥) ¥ / shares shares | |
Denominator: | ||||
Average common stock outstanding - basic | 6,546,153 | 5,773,094 | 5,617,424 | |
Average common stock outstanding - diluted | 6,562,278 | 5,773,094 | 5,617,424 | |
Basic and Diluted Per Share Data: | ||||
Basic loss per share attributable to Origin Agritech Limited | (per share) | $ 1.18 | ¥ 8.45 | ¥ (1.09) | ¥ (16.29) |
Diluted loss per share attributable to Origin Agritech Limited | (per share) | $ 1.17 | ¥ 8.43 | ¥ (1.09) | ¥ (16.29) |
Origin Agritech Limited | ||||
Numerator: | ||||
Net loss attributable to Origin Agritech Limited | ¥ | ¥ 55,332 | ¥ (6,265) | ¥ (91,529) | |
Denominator: | ||||
Average common stock outstanding - basic | 6,546,153 | 5,773,094 | 5,617,424 | |
Average common stock outstanding - diluted | 6,546,153 | 5,773,094 | 5,617,424 | |
Basic and Diluted Per Share Data: | ||||
Basic loss per share attributable to Origin Agritech Limited | ¥ / shares | ¥ 8.45 | ¥ (1.09) | ¥ (16.29) | |
Diluted loss per share attributable to Origin Agritech Limited | ¥ / shares | ¥ 8.45 | ¥ (1.09) | ¥ (16.29) |
Divestitures - Additional Infor
Divestitures - Additional Information (Details) ¥ in Thousands, $ in Thousands | 1 Months Ended | 12 Months Ended | |
Aug. 31, 2023 USD ($) | Aug. 31, 2023 CNY (¥) | Sep. 30, 2023 CNY (¥) | |
Divestitures | |||
Disposal Group, Not Discontinued Operation, Gain (Loss) on Disposal, Statement of Income or Comprehensive Income [Extensible Enumeration] | Other Nonoperating Income (Expense) | ||
Beijing Changping Technology Development Co. Ltd.("BC-TID") | Disposal Group | |||
Divestitures | |||
Recognized disposal gain | $ 5,670 | ¥ 40,740 | ¥ 40,741 |
Gain attributable to disposal group | $ 4,010 | ¥ 28,790 | ¥ 28,788 |
Divestitures - Recognized dispo
Divestitures - Recognized disposal gain in consolidated statements of operations (Details) - Beijing Changping Technology Development Co. Ltd.("BC-TID") - Disposal Group ¥ in Thousands, $ in Thousands | 1 Months Ended | 12 Months Ended | |
Aug. 31, 2023 USD ($) | Aug. 31, 2023 CNY (¥) | Sep. 30, 2023 CNY (¥) | |
Divestitures | |||
Historical cost of remained investment | ¥ 37,660 | ||
Carrying amount of Beijing's net liabilities deconsolidated | 378 | ||
Carrying amount of noncontrolling interest | 2,703 | ||
Disposal gain of the deconsolidating Beijing Origin | $ 5,670 | ¥ 40,740 | 40,741 |
Fair value of retained investment | 66,448 | ||
Gain is attributable to the 48.27% ownership interest retained in Beijing Origin | $ 4,010 | ¥ 28,790 | ¥ 28,788 |
EMPLOYEE BENEFIT PLAN AND PRO_2
EMPLOYEE BENEFIT PLAN AND PROFIT APPROPRIATION (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
EMPLOYEE BENEFIT PLAN AND PROFIT APPROPRIATION | |||
Defined contribution plan, cost recognized | ¥ 1,700 | ¥ 1,280 | ¥ 1,690 |
Percentage of entity registered capital | 50% | ||
Statutory surplus reserve fund annual appropriation percentage | 10% | ||
Statutory surplus reserve fund appropriations | ¥ 15,133 | ¥ 15,133 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) ¥ in Millions | 1 Months Ended | |
Jul. 31, 2022 t | Aug. 16, 2023 CNY (¥) | |
COMMITMENTS AND CONTINGENCIES | ||
Bulk commodities required to be supplied (in tonnes) | t | 100,000 | |
Commitment to pay for supply agreement | ¥ | ¥ 22 |
OPERATING RISK (Details)
OPERATING RISK (Details) | 12 Months Ended |
Sep. 30, 2023 | |
OPERATING RISK | |
Borrowing interest rate | 6% |
Customer concentration risk | Revenue | First largest customer | |
OPERATING RISK | |
Concentration risk percentage | 8% |
Customer concentration risk | Revenue | Second largest customer | |
OPERATING RISK | |
Concentration risk percentage | 4% |
CONDENSED FINANCIAL INFORMATI_3
CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY- CONDENSED BALANCE SHEET (Details) ¥ in Thousands, $ in Thousands | Sep. 30, 2023 CNY (¥) | Sep. 30, 2023 USD ($) | Sep. 30, 2022 CNY (¥) | Sep. 30, 2021 CNY (¥) | Sep. 30, 2020 CNY (¥) |
Current assets (liabilities) | |||||
Cash and cash equivalents | ¥ 23,708 | $ 3,302 | ¥ 17,669 | ||
Due to related parties | ¥ 174,484 | $ 24,302 | ¥ 18,629 | ||
Other Liability, Current, Related Party, Type [Extensible Enumeration] | Related Party [Member] | Related Party [Member] | Related Party [Member] | Related Party [Member] | |
Total current assets | ¥ 141,782 | $ 19,748 | ¥ 81,540 | ||
Total assets (including amounts of the consolidated VIEs without recourse to the Company of RMB52,894 and RMB220,777 as of September 30, 2022 and 2023 respectively) | 238,506 | 33,220 | 135,955 | ||
AND EQUITY | |||||
Total stockholders' equity (deficit) | (81,260) | (11,318) | (172,642) | ¥ (185,598) | ¥ (85,462) |
Parent Company | |||||
Current assets (liabilities) | |||||
Cash and cash equivalents | 3,952 | 550 | 6,394 | ||
Other receivables | 619 | 86 | 235 | ||
Due from inter-companies | 237,923 | 33,138 | 216,571 | ||
Due to related parties | ¥ 4,294 | $ (237) | ¥ 696 | ||
Other Liability, Current, Related Party, Type [Extensible Enumeration] | Related Party [Member] | Related Party [Member] | Related Party [Member] | ||
Total current assets | ¥ 246,788 | $ 33,537 | ¥ 223,896 | ||
Investment in unconsolidated subsidiaries | (302,606) | (41,311) | (356,347) | ||
Total assets (including amounts of the consolidated VIEs without recourse to the Company of RMB52,894 and RMB220,777 as of September 30, 2022 and 2023 respectively) | (55,818) | (7,774) | (132,451) | ||
AND EQUITY | |||||
Total stockholders' equity (deficit) | ¥ (57,398) | $ (7,994) | ¥ (133,872) |
CONDENSED FINANCIAL INFORMATI_4
CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY- CONDENSED STATEMENT OF INCOME AND COMPREHENSIVE INCOME (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Sep. 30, 2023 CNY (¥) | Sep. 30, 2023 USD ($) | Sep. 30, 2022 CNY (¥) | Sep. 30, 2021 CNY (¥) | |
Revenues | ¥ 93,307 | $ 12,996 | ¥ 52,580 | ¥ 46,425 |
Operating expenses | ||||
General and administrative | (14,228) | (1,982) | (14,321) | (73,315) |
Income (loss) before income taxes | 62,831 | 8,751 | 2,311 | (126,903) |
Income tax expense | 162 | 23 | (14) | 178 |
Net Income (loss) | 62,669 | 8,728 | 2,325 | (127,081) |
Other comprehensive loss | ||||
Foreign currency translation difference | (214) | (30) | 447 | (816) |
Comprehensive loss attributable to Origin Agritech Limited | 55,118 | 7,676 | (5,818) | (92,345) |
Parent Company | ||||
Operating expenses | ||||
General and administrative | (5,019) | (699) | (5,246) | (19,302) |
Operating Income (Loss), Total | (5,019) | (699) | (5,246) | (19,302) |
Equity method loss | 60,354 | 8,406 | (1,004) | (72,213) |
Interest expense, net | (3) | (15) | (14) | |
Income (loss) before income taxes | 55,332 | 7,707 | (6,265) | (91,529) |
Net Income (loss) | 55,332 | 7,707 | (6,265) | (91,529) |
Other comprehensive loss | ||||
Foreign currency translation difference | (214) | (30) | 447 | (816) |
Comprehensive loss attributable to Origin Agritech Limited | ¥ 55,118 | $ 7,677 | ¥ (5,818) | ¥ (92,345) |
CONDENSED FINANCIAL INFORMATI_5
CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY - CONDENSED STATEMENT OF CASH FLOWS (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Sep. 30, 2023 CNY (¥) | Sep. 30, 2023 USD ($) | Sep. 30, 2022 CNY (¥) | Sep. 30, 2021 CNY (¥) | |
Net cash provided by operating activities | ¥ (5,456) | $ (759) | ¥ 3,291 | ¥ (25,077) |
Net cash provided by financing activities | 22,933 | 3,193 | (332) | 19,838 |
Net increase in cash and cash equivalents | 6,253 | 871 | 1,857 | (6,448) |
Cash and cash equivalents, beginning of year | 17,669 | 2,461 | 15,351 | 22,482 |
Effect of exchange rate changes on cash and cash equivalents | (214) | (30) | 447 | (816) |
Cash and cash equivalents, end of the year | 23,708 | 3,302 | 17,669 | 15,351 |
Parent Company | ||||
Net cash provided by operating activities | (19,864) | (2,767) | (4,567) | |
Net cash provided by financing activities | 17,636 | 2,456 | 1,614 | (8,637) |
Net increase in cash and cash equivalents | (2,228) | (311) | (2,953) | (8,637) |
Cash and cash equivalents, beginning of year | 6,394 | 891 | 8,900 | 18,353 |
Effect of exchange rate changes on cash and cash equivalents | (214) | (30) | 447 | (816) |
Cash and cash equivalents, end of the year | ¥ 3,952 | $ 550 | ¥ 6,394 | ¥ 8,900 |
CONDENSED FINANCIAL INFORMATI_6
CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY - Additional information (Details) - CNY (¥) ¥ in Thousands | Sep. 30, 2023 | Sep. 30, 2022 |
CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY | ||
Amounts restricted include paid-in capital, capital surplus and statutory reserves | ¥ 45,457 | ¥ 45,457 |