Origin Agritech Receives a $35 Million Order from Muyuan Foods
Companies Plan to Expand Partnership Significantly Beyond This Initial Order
BEIJING, July 27, 2022 /PRNewswire/ -- Origin Agritech Ltd. (NASDAQ: SEED) (the "Company" or "Origin"), an agriculture technology company, announced today that the company has received an order for its hybrid corn worth RMB240 million, or roughly $35 million, from Muyuan Foods.
Muyuan Foods is a publicly traded company on the Shenzhen Stock Exchange, with a $50 billion market capitalization, it is China's largest hog farming company. Muyuan purchases over 50 million metric tons of corn feedstock annually. The initial order is part of a 1 million metric ton purchase agreement signed for next 5 years.
The companies have agreed in principle to collaborate to contract grow Origin's Nutritionally Enhanced Corn (NEC) beginning in the 2023 growing season. At present, Muyuan is contract growing about 3 million mu, or roughly 494,000 acres of farmland to plant hybrid corn and other feed crops in China.
"Origin's NEC corn is revolutionary, as it takes less resources to feed livestock, thus reducing the carbon footprint," said Fazhan Liu, General Manager of Muyuan Grain Trade. "Additionally, partnering with Origin to transition a significant portion of our corn feedstock to NEC will help us to keep our costs under control and thus allow us to continue selling top quality pork products at affordable prices."
"I have long admired Muyuan Foods as one of the great Chinese companies, so I am particularly proud to begin this journey with them," said Dr. Gengchen Han, Origin Agritech's Chairman. "I am confident that the companies will have a long and prosperous business relationship together."
About Muyuan Foods Co., Ltd.
Muyuan Foods Co., Ltd. is a China-based company principally engaged in the breeding and distribution of pigs. The Company's main products consist of piglets, boars and commodity pigs. The Company operates its business mainly through feedstuff processing, hog breeding, boar breeding and commodity pig feeding. The Company operates its business in the domestic market. The company trades on the Shenzhen Stock Exchange under the ticker 002714.SZ.
About Origin Agritech Limited
Origin Agritech Limited, founded in 1997 and headquartered in Zhong-Guan-Cun (ZGC) Life Science Park in Beijing, is a leading Chinese agricultural technology company. In crop seed biotechnologies, Origin Agritech's phytase corn was the first transgenic corn to receive the Bio-Safety Certificate from China's Ministry of Agriculture. Over the years, Origin has established a robust biotechnology seed pipeline including products with glyphosate tolerance and pest resistance (Bt) traits. For further information, please visit the Company's website at: www.originagritech.com. The company also maintains a twitter account for updating investors on company and industry developments, which is @origin_agritech.
This communication contains "forward-looking statements" as defined in the federal securities laws, including Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements address expected future business and financial performance and financial condition, and contain words like "expect," "anticipate," "intend," "plan," "believe," "seek," "will," "would," "target," and similar expressions and variations. Forward-looking statements address matters that are uncertain. Forward-looking statements are not guarantees of future performance and are based on assumptions and expectations which may not be realized. They are based on management's current expectations, assumptions, estimates and projections about the Company and the industry in which the Company operates but involve a number of risks and uncertainties, many of which are beyond the company's control. Some of the important factors that could cause the company's actual results to differ materially from those discussed in forward-looking statements are: failure to develop and market new products and optimally manage product life cycles; ability to respond to market acceptance, rules, regulations and policies affecting our products; failure to appropriately manage process safety and product stewardship issues; changes in laws and regulations or political conditions; global economic and capital markets conditions, such as inflation, interest and currency exchange rates; business or supply disruptions; natural disasters and weather events and patterns; ability to protect and enforce the company's intellectual property rights; and separation of underperforming or non-strategic assets or businesses. The company undertakes no duty or obligation to publicly revise or update any forward-looking statements as a result of future developments, or new information or otherwise, should circumstances change, except as otherwise required by securities and other applicable laws. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and actual results may differ materially from the anticipated results. You are urged to consider these factors carefully in evaluating the forward-looking statements contained herein and are cautioned not to place undue reliance on such forward-looking statements, which are qualified in their entirety by these cautionary statements.
Director of Investor Relation
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Source: Origin Agritech Limited Related Stocks: NASDAQ:SEED
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