Origin Agritech Limited Reports Unaudited Financial Results for the Year Ended September 30, 2012

Origin Agritech Limited Reports Unaudited Financial Results for the Year Ended
                              September 30, 2012

- Restructuring Program Completed with 26% Headcount Reduction

- Core Business Revenue Increased 23% Year-over-Year

- Operating Cash Flow increased 121% Year-over-Year to RMB82.71 million
(US$13.04 million)

- Net Loss per Share Improved Significantly to US$(0.01) in FY2012 from
US$(0.16) in FY2011

PR Newswire

BEIJING, Jan. 8, 2013

BEIJING, Jan. 8, 2013 /PRNewswire/ -- Origin Agritech Limited (NASDAQ: SEED)
("Origin" or the "Company"), a technology-focused supplier of crop seeds in
China, today announced unaudited financial results for the year ended
September 30, 2012. These unaudited year end results reflect the Company's
financial statements during the period from October 1, 2011 to September 30,
2012. Origin prepares its financial statements in accordance with generally
accepted accounting principles (GAAP) of the United States.

FY 2012 Major Corporate

Changes in Management Team and Board of Directors

The Company has made several major changes in its management and the Board of
Directors during the fiscal year 2012. Dr. Gengchen Han, the founder and
Chairman of Origin returned to the Company as CEO and President at the end of
FY2011. Dr. Han has more than 20 years of experience in research and
development of hybrid seed products, particularly corn seed. After receiving
his PhD in Plant Breeding and Cytogenics from Iowa State University, Dr Han
worked for the International Maize and Wheat Improvement Center, in Mexico and
Pioneer Hi-bred International, now a wholly-owned subsidiary of Dupont, before
founding Origin in 1997. For the first time in several years, the Company
filled the Chief Financial Officer position by hiring Dr. James Chen, who
joined Origin in January, 2012. Dr. Chen brings extensive experiences in both
the financial industry and global chemical industry after working in Abu Dhabi
Investment Authority, BB & T Capital Market, Celanese and Univation
Technologies, a joint venture of ExxonMobil and Dow Chemical.

In January, 2012, the Company also recruited and appointed Mr. Larry Kenneth
Cordell as a new independent board member and the chairman of the Audit
Committee. Mr. Cordell is well qualified as the Audit Committee chairman with
his financial and corporate governance expertise from his activities as a
chief executive officer and senior executive positions of various companies
and his consulting activities in the areas of accounting, corporate finance,
capital formation and corporate financial analysis. Mr. Cordell served as
Chairman, President and CEO at UAP Holdings ("UAPH") when the company was
acquired by Agrium Inc. through a tender offer in May, 2008. Prior to its
acquisition, UAPH was the largest independent distributor of agricultural
inputs and professional non-crop products in the United States and Canada. Mr.
Cordell currently serves as Chief Executive Officer of Pinnacle Agriculture
Distribution, a privately held crop input distributor in the United States. He
also holds Board of Director positions with Momentive Performance Material
Holdings and Taminco, both of which are privately held specialty chemical

Corporate Restructuring

During fiscal year 2012, we initiated a corporate-wide restructuring program,
which involved restructuring of our businesses strategy and product lines,
revamping of the organization structure and redefining of roles and positions
for each employee across our organization. We streamlined our organization
structure to improve operational efficiency and performance accountability.
With the restructuring program, we refocused our efforts on our core
competences in the corn, rice and canola businesses and exited unprofitable
cotton and agricultural chemical businesses.

In an effort to improve productivity, we are strengthening our human resource
management. At the end of the fiscal year 2012, all employee positions were
redefined with new compensation structures. While recruiting high-quality
employees to newly defined positions, we were able to reduce the overall
headcounts across the organization. The total headcount was reduced by 26%
from 888 employees as of September 30, 2011 to 656 employees (excluding 57
employees of Xinjiang Origin) at the end of September, 2012. Our headquarters
employee number was reduced from 90 as of September 30, 2011 to 52 at of the
end of September 2012.

To improve our technology development, we created a business division to,
centralize the activities for the technologies of corn seed development as
well as the production of parental lines. While the Breeding Division is
involved in the research and development of conventional crop seeds, our
Biotech Research Center continues to focus on next-generation crop
technologies. Despite the reduction of our overall headcount, the total number
of R&D-related employees has increased slightly during fiscal year 2012.

Breed-Produce-Distribute Vertically-Integrated Crop Seed License (BPDVI

Beijing Origin received its renewed crop seed license in September 2012 based
on the new government regulation for BPDVI license from Ministry of
Agriculture (MOA). While vertically-integrated operation has always been
Origin's strategy and such vertical integration is a common practice outside
of China, BPDVI is now one of the key measures in the comprehensive license
review process the MOA used for the award of the seed business licenses. Since
the new seed business license policy was introduced in 2011, Beijing Origin
was one of the first 32 companies awarded for the BPDVI seed license. In an
effort by Chinese government to regulate the seed industry and promote
consolidation, the companies with BPDVI license are expected to receive
potential ongoing government support and certain incentives including further
tax break and financial subsidies to crop seed research and development.

Government supports

The Company received several financial supports from various levels of the
government during fiscal year 2012. For a new production line in Linze, Gansu
province, we received government subsidies of RMB14 million (US$2.21 million)
in the first quarter of fiscal year 2012. For our new Xinjiang Origin plant,
we have received a subsidy of RMB10.90 million (US$1.72 million) for the land
use right. We also received various subsidies for our research and development
activities, totaled RMB2.10 million (US$0.33million).

Xinjiang Origin

Established in July, 2011, Xinjiang Origin started the construction of its
state-of-art corn seed processing facility in fiscal year 2012. The
construction was completed in August, 2012, and a production trial run started
in September. During the 2012 harvest season, this newly constructed facility
successfully processed a total of approximately 12,000 metric tons of corn
seed from about 5,000 acres of cornfield. Xinjiang Origin was established by
Beijing Origin and Xinjiang Jinbo Seed ("Jinbo"). Jinbo is a prominent local
seed company affiliated with the Fifth Agricultural Construction Division of
the Xinjiang Production and Construction Corp. Origin holds a 51% ownership
stake of the RMB100 million registered capital investment as of September 30,
2012 and retains the exclusive business relationship with Jinbo in Xinjiang.

With an expected investment of RMB170 million, the state-of-the-art facility
will mainly produce, process, package, and sell high-quality hybrid corn seeds
to the domestic Chinese market. Xinjiang Origin will increase the Company's
total seed processing capacity and expand marketing channels to distribute
Origin's hybrid products to the northwest region in China. The facilities of
Xinjiang Origin, along with the seed production land of the Fifth Agricultural
Construction Division, deploy modern technologies and full mechanization
throughout the entire production process from land preparation and seeding to
product packaging. The processing facility employs advanced corn husker
system, which is one of the largest corn husker systems in the world. The
production base uses modern drip irrigation systems and advanced farming
equipment for corn seed production.


Core Business Year-over-Year comparison:

Fiscal year 2012 marks the transition year with a major restructuring program
for Origin, and the financial performance has experienced a significant
turnaround. Excluding the discontinued businesses and contributions of Jilin
Changrong and Changchun subsidiary, revenues of Origin's core business
increased by 23% from RMB 377.86 million to RMB 463.50 million mainly due to
higher sales volume for the Company's corn seed business, as shown in the
table below:

Year-over-Year Comparison of Core Business Performance (unaudited)

                  2011 (RMB million) 2012 (RMB million) Year-over-Year Growth
Revenues          377.86             463.50             23%
Gross Profit      146.56             166.20             13%
Operating Expense 144.86             153.79             6%
Operating Profit  1.70               12.41              630%

Data in the above table exclude the discontinued operations of the cotton and
agricultural chemical businesses. For comparison purpose, the contributions
from Jilin Changrong and Changchun Origin are not included here but will be
discussed hereinafter.

The revenues growth in Origin's core business was mainly attributable to 14%
sales volume gain and 16% price increase in the corn business. Gross profit of
the core business increased by 13% year-over-year to RMB166.20 million. The
disparity between the revenue growth and gross profit increase was mainly due
to inventory provisions. Excluding the impact of inventory provisions, gross
profit of the core business increased 23% year-over-year."

Operating expenses in the core business for fiscal year 2012 were RMB153.79
million, representing an increase of 6% compared with RMB144.86 million in
fiscal year 2011. This increase was mainly due to the rise in staff
compensation, receivable allowance, advertising and shipping expenses, and
restructuring costs.

Income from operations for the core business increased from RMB1.70 million in
fiscal year 2011 to RMB12.41 million in fiscal year 2012.

Jilin Changrong/ Changchun Origin Year-over-Year comparison:

Jilin Changrong was a joint venture with its business focus on the Northeast
region in China. This joint venture was liquidated in fiscal year 2011, when
the joint venture partners agreed that the separation of the joint venture
operations fit better with their respective business strategies. After the
liquidation of Jilin Changrong, in August 2011, Origin established its
operations in the same region through its majority owned Changchun Origin
based on the assets obtained from Jilin Changrong. The table below compares
the performance of Jilin Changrong in 2011 to the performance of Changchun
Origin in 2012.


                                Jilin Changrong (2011) Changchun Origin (2012)
                                RMB (million)          RMB (million)
Revenue                         140.98                 50.03
Gross Profit                    59.84                  15.23
Operating Expense               35.26                  5.96
Operating Profit                27.24                  9.27
Net Profit before NCI           20.74                  8.83
Origin shareholding ratio       52.85%                 97.96%
Net Profit attributable to      10.96                  8.65

While the contribution from Northeastern region subsidiary to Origin's
consolidated revenues declined from RMB 140.98 million in 2011 to RMB 50.03
million in 2012, the impact of the structure change on the Net Profit
attributable to Origin was much less significant. In its first year of
operation after the Jilin Changrong liquidation, Changchun Origin contributed
a net profit of RMB 8.65 million to Origin, compared to RMB 10.96 million
contributed from Jilin Changrong in fiscal year 2011, despite the Changchun
Origin's limited seed supplies during the first year of its operation.
Changchun Origin significantly increased its seed production during fiscal
year 2012 in preparation for the fiscal year 2013 sales season, and the
Company expects a solid growth for Changchun Origin in fiscal year 2013.

Overall Analysis

Total revenues for the fiscal year ended September 30, 2012 were RMB552.11
million (US$87.07 million), a slight decrease of 2.70% from RMB567.43 million
during the fiscal year ended September 30, 2011. Overall, the slight
year-over-year decrease in revenues was mainly due to Jilin Changrong
liquidation, the divestment of the cotton and pesticide businesses, and the
drop in production of rice in fiscal year 2012; while revenues in the core
businesses increased year-over-year.

Corn seed products remained our strongest product line, accounting for 75% of
our overall sales, as compared to 74% in the fiscal year ended September 30,
2011. Total revenues from corn seeds were RMB416.73 million in fiscal year
2012, compared with RMB417.09 million in the fiscal year ended September 2011.
Revenues from Origin's rice product line for the year ended September 30, 2012
decreased by approximately 4% to RMB88.14 million from RMB91.78 million in the
fiscal year ended September 30, 2011. Sales of canola seeds increased by
18.47% to RMB19.94 million in fiscal year 2012, as compared to RMB16.83
million in fiscal year 2011. Since canola seeds are sold during the off
season, a substantial amount of canola seed sales are recognized as deferred
revenues on the company's balance sheet. Total revenues from cotton seed
decreased by 61.69% from RMB18.90 million in fiscal year 2011to RMB7.26
million in fiscal year 2012. With the divestment of Biocentury Transgene in
2010, the Company has scaled back its focus from less profitable cotton
business and later withdrew from the cotton seed business operation by the end
of fiscal year 2012. In addition, Origin divested its lower margin pesticide
business in December, 2011 and scrap sales of the chemicals amounted to
RMB19.83 million in fiscal year 2012.

Operating expenses for the fiscal year ended September 30, 2012 were RMB167.80
million (US$ 26.46 million), representing a decrease of 8.42% from RMB183.23
million in the fiscal year 2011, which was mainly due to the liquidation of
the Jilin Changrong. Excluding Jilin Changrong and Changchun Origin, operating
expenses increased 6% due mainly to the rise in staff compensations, doubtful
receivable allowance, and advertising and shipping expenses. Organization
restructuring also increased our operating expense, among which employee
severance pay was RMB 3.05 million (US$ 0.48 million).

Operating loss for the fiscal year ended September 30, 2012 was RMB3.47
million (US$0.55 million), compared to the operating profit of RMB12.61
million for the fiscal year ended September 30, 2011. The decrease in
operating results was mainly due to lower contribution from the Changchun
Origin subsidiary in fiscal year 2012, compared to the contribution from Jilin
Changrong in fiscal year 2011. The impact of Jilin Changrong liquidation and
contribution of Changchun Origin to the operation profits and net profits
attributable to Origin have already been discussed above.

Net loss for the fiscal year ended September 30, 2012 was RMB1.43 million
(US$0.23 million), representing a significant improvement from the net loss of
RMB23.08 million for the fiscal year ended September 30, 2011. The
year-over-year improvement was mainly due to the improvement in operating
performance of the core businesses and rigorous cost management.

Net loss per share was RMB(0.06) or US$(0.01) for the fiscal year 2012,
compared with RMB(1.00) in fiscal year 2011.

Statement of Cash Flow

As of September30, 2011 and 2012, Origin had approximately RMB129.94million
and RMB152.79 million (US$24.10 million), respectively, in cash and cash
equivalents. Total borrowings as of September 30, 2011 and 2012 were RMB20
million and RMB74 million (US$11.67 million), respectively. During fiscal year
2012, Origin's cash flow from operating activities was RMB82.71 million
(US$13.04 million), up from RMB37.46 million for the fiscal year ended
September 30, 2011, as operating performance improved year-over-year. Net cash
used ininvesting activities was RMB143.38 million (US$22.61 million) for the
fiscal year ended September 30, 2012 compared with RMB154.39 million for the
fiscal year ended September 30, 2011. Net cash provided by financing
activities was RMB83.40 million (US$13.15 million) for the fiscal year ended
September 30, 2012 compared with RMB55.74 million for the fiscal year ended
September 30, 2011. The increase in borrowing was mainly related to the
operations of Xinjiang Origin, which had RMB39.00million (US$6.15 million)
bank loan for its new corn seed processing plant construction.

Research and Development Activities

Origin was built on its strong R&D platform and we strongly believe successful
R&D is essential to the growth of the Company. During fiscal year 2012, we
continue to make significant progress both in our conventional hybrid crop
seed development programs and biotechnology R&D activities.

Key developments for Origin's biotechnology corn seeds:

Phytase: Two commercial hybrids with phytase traits have completed the variety
production test and are pending the variety approval from the Chinese
government. Two additional hybrid varieties with phytase traits are currently
under variety production test;

Glyphosate Tolerance: One glyphosate tolerance event (the unique DNA
recombination event that took place in one plant cell) passed Phase 3 -
Environment Release Test in 2011 and has received MOA's approval to begin
Phase 4 - Production Test. Two more glyphosate tolerance events are being
submitted for Phase 3 - Environment Release Test. In addition, more than one
thousand events are undergoing Phase 1 - Laboratory Research;

Bacillus Thuringiensis (Bt): Two insect tolerant events are going through
Phase 2 - Intermediate Test. Over two hundred events are undergoing Phase 1 -
Laboratory Research;

Glyphosate + Bacillus Thuringiensis (Bt): As a result of recent successes in
Phase 1 - Laboratory Research, six events of the Company's glyphosate and
insect tolerant traits have advanced into Phase 2 - Intermediate Test. More
than 4,500 events of the stacked traits (inserting more than one gene in a
seed via biotechnology) are being screened in Phase 1 - Laboratory Research.

Hybrid Corn Seed Development Program:

In addition to biotechnology crop seeds, Origin has a large R&D program
developing conventional hybrid crop seeds. In China, new hybrid seed variety
needs to go through an official approval process prior to sales. This approval
process typically involves three to four years of registration trials and
normally proceeds according to the following sequential steps:

Pre-Registration --> Registration Trial 1 --> Registration Trial 2 --> Field
Demo --> Approval

Each step leading up to Approval takes approximately one year unless it needs
to be repeated. In some localities Registration Trial 2 and Field Demo are
treated as one and the same step.

During fiscal year 2012, we have more than 60 tests going through different
stages of the approval process. As the results of multiyear testings, we
received registration approval for three of our new varieties.

"In this fiscal year, we invested US$5.93 million in R&D, equivalent of about
6.8% of our total revenues. We reduced headcounts across the organization
except our research organization, which has seen net hiring during this fiscal
year. We aim to build upon our current hybrid base where we have accumulated
parental seeds with advantageous traits optimized to local soil conditions. We
believe biotechnologies will become increasingly important in the future seed
industry in China and R&D will be the only way to bring sustainable growth to
the Company. With this in mind, we plan to target 8-10% of our total revenue
in our R&D activities." Concluded Dr. Han. 


With the transitional year behind us and restructuring mostly completed, we
believe Origin is ready to be back to the growth trend, reversing the trend of
the last several years. We expect our earnings performance to improve as well
in FY2013 with the growth of our focused businesses and rigorous cost

Dr. James Chen commented, "We are here for the long run. While the Chinese
crop seed industry likely continues to experience intensified competition, we
remain confident in our vertically integrated crop seed business strategy,
strong product pipelines and R&D programs, and expanded production bases.
Overtime, both our hybrid and biotechnology products will prove that we are
the best crop seed company in China. And we will continue to improve our
efficiency to produce stronger earnings and cash flows, and increase our
long-term shareholders' value."

About Origin

Founded in 1997 and headquartered in Zhong-Guan-Cun (ZGC) Life Science Park in
Beijing, Origin Agritech Limited (NASDAQ GS: SEED) is China's leading
agricultural biotechnology company, specializing in crop seed breeding and
genetic improvement, seed production, processing, distribution, and related
technical services. Leading the development of 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. Origin operates
production centers, processing centers and breeding stations nationwide with
sales centers located in key crop-planting regions. Product lines are
vertically integrated for corn, rice and canola seeds. For further
information, please log on to the Company's website at: www.originseed.com.cn.

Forward Looking Statement

This release contains forward-looking statements. All forward-looking
statements included in this release are based on information available to us
on the date hereof. These statements involve known and unknown risks,
uncertainties and other factors, which may cause our actual results to differ
materially from those implied by the forward-looking statements. In some
cases, you can identify forward-looking statements by terminology such as
"may," "will," "should," "could," "expects," "plans," "anticipates,"
"believes," "estimates," "predicts," "potential," "targets," "goals,"
"projects," "continue," or variations of such words, similar expressions, or
the negative of these terms or other comparable terminology. Although we
believe that the expectations reflected in the forward-looking statements are
reasonable, we cannot guarantee future results, levels of activity,
performance or achievements. Therefore, actual results may differ materially
and adversely from those expressed in any forward-looking statements. Neither
we nor any other person can assume responsibility for the accuracy and
completeness of forward-looking statements. Important factors that may cause
actual results to differ from expectations include, but are not limited to,
those risk factors discussed in Origin's filings with the SEC including its
annual report on Form 20-F to be filed. We undertake no obligation to revise
or update publicly any forward-looking statements for any reason.


(In thousands, except number of share and per share data)

                                                    September 30,
                                                    2011      2012       2012
                                                    RMB       RMB        USD
Current A ssets
Cash and cash equivalents                           129,942   152,789    24,095
Accounts receivable, less allowance for doubtful
amounts of
 RMB2,714 and RMB6,752 as of September 30,    6,616     7,065      1,114
2011 and
 2012, respectively
Due from related parties                            5,183     2,082      328
Advances to suppliers                               12,418    7,802      1,230
Advances to growers                                 78,623    88,194     13,909
Inventories                                         210,826   282,544    44,558
Income tax recoverable                              2,155     2,159      341
Other current assets                                65,055    16,407     2,587
Total current assets                                510,818   559,042    88,162
Land use rights, net                                33,094    32,318     5,097
Plant and equipment, net                            190,094   317,085    50,006
Equity investments                                  20,503    22,433     3,538
Goodwill                                            11,973    11,973     1,888
Acquired intangible assets, net                     29,232    25,585     4,035
Deferred income tax assets                          3,028     1,755      277
Other assets                                        19,640    5,246      827
Total assets                                        818,382   975,437    153,830
Current liabilities
Short-term borrowings                               20,000    35,000     5,520
Current portion of long-term borrowings             -         4,000      630
Accounts payable                                    5,740     5,031      793
Due to growers                                      7,947     4,304      679
Due to related parties                              1,728     2,769      437
Advances from customers                             397,933   435,044    68,608
Deferred revenues                                   19,812    23,243     3,666
Income tax payable                                  39,060    39,060     6,160
Other payables and accrued expenses                 40,351    56,744     8,949
Total current liabilities                           532,571   605,195    95,442
Long-term borrowings                                -         35,000     5,520
Other long-term liability                           -         21,810     3,439
Total liabilities                                   532,571   662,005    104,401
Commitments and contingencies
Shareholders' equity:
Preferred stock (no par value; 1,000,000 shares
authorized,                                         -         -          -
 none issued)
Common stock (no par value; 60,000,000 shares
23,382,812 and 23,382,812 shares issued and
as of September 30, 2011 and 2012, respectively)    -         -          -
Additional paid-in capital                          394,344   397,671    62,714
Accumulated deficit                                 (99,533)  (100,967)  (15,923)
Treasury stock at cost (498,851 shares)             (29,377)  (29,377)   (4,633)
Accumulated other comprehensive loss                (6,397)   (6,280)    (990)
Total Origin Agritech Limited shareholders' equity  259,037   261,047    41,168
Non-controlling interests                           26,774    52,385     8,261
Totalequity  285,811   313,432    49,429
Total liabilities and equity                        818,382   975,437    153,830


(In thousands, except number of share and per share data)

                                                                                                           Year ended September 30,
                                                                                                           2010        2011        2012        2012
                                                                                                           RMB         RMB         RMB         USD
Revenues                                                                                                   584,860     567,434     552,111     87,070
Cost of revenues                                                                                           (353,587)   (371,591)   (387,783)   (61,155)
Gross profit                                                                                               231,273     195,843     164,328     25,915
Operating expenses
Selling and marketing                                                                                      (52,227)    (56,831)    (56,437)    (8,900)
General and administrative                                                                                 (78,708)    (86,748)    (77,585)    (12,236)
Research and development                                                                                   (38,356)    (44,771)    (37,629)    (5,934)
Other income, net                                                                                          2,340       5,120       3,852       608
Total operating expenses, net                                                                              (166,951)   (183,230)   (167,799)   (26,462)
Income (loss) from operations                                                                              64,322      12,613      (3,471)     (547)
Interest expense                                                                                           (8,539)     (1,469)     (4,029)     (635)
Share of net income of equity investments                                                                  9,370       1,616       4,030       636
Gain on disposal of an equity investment                                                                   8,883       -           -           -
Loss on liquidation of a subsidiary                                                                        -           (13,582)    -           -
Interest income                                                                                            1,634       1,771       2,547       401
Income (loss) before income taxes                                                                          75,670      949         (923)       (145)
Income tax expense
Current                                                                                                    (4,046)     (6,991)     (589)       (93)
Deferred                                                                                                   (5,273)     (6,739)     (1,273)     (201)
Income tax expense                                                                                         (9,319)     (13,730)    (1,862)     (294)
Net i ncome (loss)                                                                                         66,351      (12,781)    (2,785)     (439)
Less: Net income (loss) attributable to non-controlling interests                                          17,298      10,298      (1,351)     (213)
Net income (loss) attributable to Origin Agritech Limited                                                  49,053      (23,079)    (1,434)     (226)
Other comprehensive income (loss)
Net income (loss)                                                                                          66,351      (12,781)    (2,785)     (439)
Foreigncurrencytranslationdifference   1,067       2,939       117         19
Comprehensive income (loss)                                                                                67,418      (9,842)     (2,668)     (420)
Less: Comprehensive income (loss) attributable to non-controlling interests                                17,298      10,298      (1,351)     (213)
Comprehensive income (loss) attributable to Origin Agritech Limited                                        50,120      (20,140)    (1,317)     (207)
Net income (loss) attributable to Origin Agritech Limited per share -basic                                2.12        (1.00)      (0.06)      (0.01)
Net income (loss) attributable to Origin Agritech Limited per share - diluted                              2.10        (1.00)      (0.06)      (0.01)
Shares used in calculating basic net income (loss) per share                                               23,189,464  23,351,615  23,382,812  23,382,812
Shares used in calculating diluted net income (loss) per share                                             23,337,265  23,351,615  23,382,812  23,382,812


(In thousands)
                                                                                                     Year ended September 30,
                                                                                                      2010       2011       2012       2012
                                                                                                      RMB        RMB        RMB        USD
Net income (loss) attributable to Origin Agritech Limited                                             49,053     (23,079)   (1,434)    (226)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization                                                                         21,712     23,307     19,541     3,082
Loss (gain) on disposal of plant and equipment                                                        (26)       6,252      1,401      221
Gain on disposal of a land use right                                                                  -          -          (825)      (130)
Gain on disposal of an equity investment                                                              (8,883)    (1)        -          -
Loss on disposal of Kunfeng's assets                                                                  -          -          1,814      286
Loss on liquidation of a subsidiary                                                                   -          13,583     -          -
Impairment on receivables                                                                             -          1,872      4,038      637
Inventory write down                                                                                  14,971     12,978     27,453     4,329
Deferred income tax assets                                                                            5,274      6,739      1,273      201
Non-controlling interests                                                                             17,298     10,298     (1,351)    (213)
Share-based compensation expense                                                                      4,868      4,638      3,327      525
Share of net income of equity investments                                                             (9,370)    (1,616)    (4,030)    (636)
Changes in operating assets and liabilities:
 Accounts receivable, net                                                                          (4,356)    1,560      (4,486)    (708)
 Due from related parties                                                                          1,897      (76)       3,101      489
 Advances to growers                                                                               (16,010)   (37,932)   (9,571)    (1,509)
 Advances to suppliers                                                                             2,940      (8,432)    4,616      728
 Inventories                                                                                       45,783     15,175     (102,230)  (16,122)
 Income tax recoverable                                                                            (1,020)    590        (4)        (1)
 Other current assets                                                                              98         4          48,648     7,672
 Other assets                                                                                      3,193      (3,010)    14,394     2,270
 Accounts payable                                                                                  (5,137)    (3,220)    (709)      (112)
 Due to growers                                                                                    32,567     (34,239)   (3,643)    (574)
 Due to related parties                                                                            (7,773)    984        1,041      164
 Advances from customers                                                                           128,834    49,136     37,111     5,853
 Deferred revenues                                                                                 4,831      (3,299)    3,431      541
 Income tax payable                                                                                4,414      4,113      -          -
 Other long-term liabilities                                                                       9,426      (7,003)    21,810     3,439
 Other payables and accrued expenses                                                               4,020      8,135      17,997     2,838
Net cash provided by operating activities                                                             298,604    37,457     82,713     13,044
Investing activities:
Dividends received                                                                                    1,200      2,467      2,100      331
Purchase of plant and equipment                                                                       (15,839)   (56,332)   (104,214)  (16,435)
Liquidation of a subsidiary                                                                           -          (67,980)   -          -
Proceeds from disposal of an equity investment                                                        50,000     -          -          -
Additional capital injection to an equity investment                                                  -          (600)      -          -
Proceeds from disposal of land use right                                                              -          -          1,140      180
Proceeds from disposal of plant and equipment                                                         247        -          5,495      867
Deposits for purchase of acquired technology and
                                                                                                      (39)       (1,280)    -          -
land use rights
Deposits for purchase of plant and equipment                                                          (3,044)    (11,468)   (43,874)   (6,919)
Business acquisition, net of cash acquired                                                            (10,540)   -          -          -
Purchase of land use rights                                                                           -          -          (431)      (68)
Purchase of intangible assets                                                                         (6,880)    (19,197)   (3,599)    (568)
Net cash provided by(used in) investing activities                                                    15,105     (154,390)  (143,383)  (22,612)
Financing activities:
Restricted bank deposits                                                                              500        -          -          -
Proceeds from short-term borrowings                                                                   191,900    20,000     105,000    16,559
Repayment of short-term borrowings                                                                    (186,290)  (85,900)   (90,000)   (14,193)
Proceeds from long-term borrowings                                                                                          39,000     6,150
Repurchaseofconvertiblenotes      (117,896)  -          -          -
Acquisition of additional equity interest from non-controlling shareholders                           (24,200)   -          -          -
Capital injection from a non-controlling shareholder                                                  -          19,600     29,400     4,636
Dividends paid to non-controlling shareholders                                                        (6,908)    (12,090)   -          -
Proceeds from exercise of share options                                                               6,535      2,654      -          -
Net cash (used in)provided by financing activities                                                    (136,359)  (55,736)   83,400     13,152
Net increase (decrease) in cash and cash equivalents                                                  177,350    (172,669)  22,730     3,584
Cash and cash equivalents, beginning of year                                                          121,255    299,672    129,942    20,492
Effect of exchange rate changes on cash and cash equivalents                                          1,067      2,939      117        19
Cash and cash equivalents, end of year                                                                299,672    129,942    152,789    24,095
Supplemental disclosures of cash flow information:
Income taxes paid                                                                                     652        6,990      589        93
Interest paid                                                                                         8,539      1,469      4,029      635
Supplemental disclosure of non-cash investing activities:
Disposal of assets in lieu of payment for liabilities                                                 -          -          1,814      286
Other current assets to be received from liquidation of a subsidiary                                  -          45,236     -          -


Origin Agritech Limited
Dr. James Chen
Chief Financial Officer

Shiwei Yin, 646-284-9474

SOURCE Origin Agritech Limited

Website: http://www.originseed.com.cn
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