Deferred Revenues increases 24.8% from RMB 176.6 million to RMB 220.4 million

Advances from Customers increases 213.2% from RMB 138.5 million to RMB 295.3 million

Gross Profit increases 33.6% from RMB 15.40 million to RMB 20.58 million

BEIJING--(BUSINESS WIRE)--Origin Agritech Limited (NASDAQ: SEED - News) (“Origin” or the “Company”), a technology-focused supplier of hybrid and genetically modified crop seeds in China, today announced unaudited financial results for the first quarter ended December 31, 2009. Origin prepares its financial statements in accordance with generally accepted accounting principles (GAAP) of the United States.

FINANCIAL RESULTS OVERVIEW

During the first quarter of fiscal 2010, the Company generated revenues of RMB 38.60 million (US$5.65 million), a decrease of 31.5% from RMB 56.33 million (US$8.24 million) generated in the three months ended December 31, 2008. The revenues were mainly from the sales of higher margin canola seed products for the three months ended December 31, 2009. In Q110, a lower amount of scrap seed sales were recorded.

Gross profit for the three-months ended December 31, 2009 was RMB 20.58 million (US$3.01million) compared to RMB 15.40 (US$2.25million) in the same period of the prior year. Gross margins for this quarter were 53.3% versus 47.9% for the canola seed sales for Q109 (exclusive of scrap sales). This is a result of the higher pricing structure of our canola seed products this year.

Total operating expenses for the three-months ended December 31, 2009 were RMB 38.96 million (US$5.71 million) compared with RMB 39.96 million (US$5.85 million) reported for the same period in 2008. Selling and marketing expenses were RMB 10.48 million (US$1.53 million) for the first quarter of 2009, representing a decrease of 20.8% from RMB 13.24 million (US$1.94 million) for the same period of the last year. General and administrative expenses of RMB 20.41 million (US$2.99 million) for the first quarter ended December 31, 2009, increased 14.0% from RMB 17.91 million (US$2.62 million) for the three months ended December 31, 2008. The research and development expenses decreased to RMB 8.08 million (US$1.18 million) for the three-months ended December 31, 2009 from RMB 8.82 million (US$1.29million) for the same quarter last year, with a decrease of 8.4%. These differences in expense categories are a result of slight changes across a broad variety of smaller sub-categories and represents small variations year over year. On an annual comparison, we still expect operating expenses to be relatively flat annually, across all operating expenses and within each separate category.

Operating loss for the first quarter of 2009 amounted to RMB 18.38million (US$2.69 million) compared with an operating loss of RMB 24.56 million (US$3.59 million) for the same period in 2008.

Net loss for the first quarter of 2010 was RMB 13.49 million (US$1.98 million), or RMB 0.59 (US$0.09) per diluted share, as compared to a net loss of RMB 19.72 million (US$2.87 million), or RMB 0.86 (US$0.13) per diluted share in the same period one year ago.

BALANCE SHEET

Origin's balance sheet at December 31, 2009 included cash and cash equivalents of RMB 213.69 million (US$31.30 million) and shareholders' equity of RMB 197.47 million (US$28.92 million).

Deferred revenue was RMB220.38 million (US$ 32.28 million) for the three-months ended December 31, 2009 as compared to RMB176.63 million (US$ 25.84 million) for the same period last year. This represents our orders received and shipped already for products this upcoming selling season.

The Company received Advances from Customers of RMB 295.30 million (US$43.25 million) as of December 31, 2009 period as compared to RMB 138.53 million (US$20.27 million) as of December 31, 2008. This represents our cash receipts for products to be ordered this upcoming selling season.

FISCAL 2010 GUIDANCE

Based on its current outlook, and existing and anticipated business conditions, Origin reiterates the revenue guidance for FY 2010 in the range of RMB 630 million to RMB 660 million.

About Origin

Founded in 1997 and headquartered in Beijing, Origin Agritech Limited (NASDAQ GS: SEED) is China’s leading, vertically-integrated agricultural biotechnology company specializing in research, development and production to supply the growing populations of China. Origin develops, grows, processes, and markets high quality, hybrid crop seeds to farmers throughout China and parts of Southeast Asia via a network of approximately 3,800 first-level distributors and 65,000 second-level distributors and retailers, and possesses a pipeline of genetically modified seed products including glyphosate resistant corn and Bt Corn. The first genetically modified corn seed product for China, Phytase corn, was approved in November 2009 of which Origin possesses exclusive rights. For further information, please log on www.originagritech.com.

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.

Question and Answer

1. What is your financial guidance on the bottom line for this year? Presently, we are not at giving bottom line guidance for fiscal year 2010. We do expect the bottom line to be significantly better in the sense we will have significant improvement through elimination of one-time and excessive costs this year, higher product pricing expectation of roughly 3-5%, and stable cost of goods and operating expenses.

As seen, by our last FY2009, there is significant operating leverage in the business model as gross profit increased over 80% while revenues increased 15%. With cost of revenues stable and operating expenses stable, we believe much more of the revenues will then flow through to the earnings as the prices increase both with better service and high technology seed products.

2. What new GMO products are in production currently? With the approval of Phytase, we still have herbicide resistance, pesticide resistance, nitrogen assimilation, and drought tolerance in the pipeline.

3. Who are the domestic and foreign competitors of Origin Agritech? Domestically, we compete against a handful of players including China Seed, Shandong Denhai, Dunhuang, and Nonya. Most of these players are regionally located or have yet to replenish their pipeline as a result of difficulties in the industry. As such, we believe we are positioned as the premier player in the market. Internationally, Monsanto, Syngenta, and Pioneer (DuPont) are the largest players though all have had limited market penetration in China to date, but plan to penetrate to a greater extent.

However, the government severely restricts GMO activities for multinationals, international companies, and joint ventures alike. These entities are only allowed to participate in Phase One testing. We do not expect this policy to change.

4. Where do you expect the company to be in 5 years? We expect to continue to be growing and expanding our presence in China. We expect to continue to grow a leading position in GMO products in China with complementary product lines and international licensing agreements. In short, we expect to be on our way to being the much larger company.

5. Can you provide us with an update to your acquisition strategy? We continue to believe that the hybrid seed industry is a ideal platform to reach all farmers in China, creating an opportunity for companies like Origin that are well-managed and well-capitalized. Studies have show that seed adds the most value to farmer yields, and as such farmers are loyal to higher yielding seed varieties. Currently, we are focused on accenting our own seed product portfolio with complementary products and driving our successful suite of products into the marketplace.

China’s Blossoming Seed Industry

With the rapid growth in China prompting greater demands on domestic food production, and China rapidly becoming a net corn importer, as a result of the rising consumer desire for higher quality food products, the Chinese central government has taken several measures to deal with these core issues. Crop seed is the fundamental input in the corn industry, and this input which possesses the greatest upside in gains from technological improvements. According to research, corn seed plays the most active factor in the increase of yield gains, accounting for over 35.5% of the total contribution.

During the past years, the Chinese central government initiated a comprehensive USD 6 billion plan for the implementation of genetically modified food products throughout China. In 2009, they furthered this plan through further implementation, including the approval of the first genetically modified main crop seed in rice and corn. Compared with conventional varieties, the obvious advantages of transgenic varieties are high yield, high quality, disease-resistance, and herbicide resistance. Farmers plant transgenic varieties to both save time and cost, while also reducing the amount of fieldwork. Given Origin’s unique position with our late stage product pipeline, we believe we are the beneficiary of such emerging trends affecting our industry for the next decade.

GMO Phytase Maize, World’s First Approval for Commercial Use

We have pursued genetically modified research, and in November 2009, we received the Bio-Safety Certificate from the Ministry of Agriculture as a final approval for commercial use of the world’s first genetically modified phytase corn. This is the first genetically modified corn seed product in China. We are also actively pursuing the approval of other GM seed products including glyphosate resistant corn and Bt Corn. Origin’s focus remains in the production of higher quality seed products, whether proprietary or licensed.

Consequently, we established several plant genetic engineering technology platforms to meet the demands we foresee in the future. These include transforming genetically modified traits such as herbicide tolerance, insect resistance, nitrogen efficiency, and drought stress tolerance genes into corn inbred lines. As a domestic company, we are afforded the ability to proceed through all five phases of GMO approval, while international entities are restricted to phases one currently, and forbidden to proceed to phase 2 through 5. We have already had several products in the phase 2 to phase 4, and we will be the first company ready to sell and produce GM corn seed in China.

As an example, we have been successful in marketing genetically modified BT cotton varieties in China and plan to continue to develop other new seed varieties. Upon introduction, the Bt cotton gene was able to increase yield and production value. As a result, the farmers were willing to pay more for genetically modified seeds and prices increased roughly four-fold for genetically modified cotton seed as compared to standard hybrid seed. Today, almost all the planted acreage in China utilizes genetically modified cotton seed, exclusive of the Xinjiang region. We believe that other crop seeds can follow similar product adoption patterns.

GMO Catalysts

Glyphosate resistance and Bt corn, as highly successful products elsewhere in the world, remain “industry changers” in China. Origin Agritech retains the exclusive license rights to these specific traits, and expects to be the first company to commercialize these crops in China.

Worldwide, the largest segment of the transgenic crop market has been herbicide resistant crops. Specifically, glyphosate resistant crops have been widely accepted in cotton, corn, and canola in North America. Introduced in the US in 1998, the use of glyphosate resistant corn grew at a compounded annual growth rate of 51.9%, according to the US Department of Agriculture. The rapid historical adoption rate indicates farmers find this trait to extremely valuable. Additionally, Bt crops produce a protein toxic to specific insects used in areas with high levels of infestations of targeted pests. Introduced in 1996 in the US, acreage of Bt corn has grown at a compounded annual growth rate of 36.7%, according to the US Department of Agriculture.

We have roughly 100 total hybrid products in the market, and began to develop Origin’s own proprietary hybrid seed varieties in 1998. As of December 2009, we have 23 proprietary corn seed products, 18 proprietary rice seed products, 3 proprietary cotton seed products and 3 proprietary canola seed products that are in commercial production and distribution. Currently, we have 9 breeding stations and employ 136 full time research personnel. Origin’s longstanding, education-based distribution platform enables us to introduce higher quality products into the marketplace, as Origin’s associated infrastructure affords us the ability to successfully launch genetically modified products.

FY 2009 Accomplishments

• Announcement of World’s First Phytase Maize in Phase 5 of GMO Approval.
• Completion of the repurchase of the remaining outstanding convertible notes, US $17.26 million in principal at 104.
• Introduction of board members Dr. Yingqi Xia and Dr. James Kang, respected members of the Chinese economic development community and international biotech research community, respectively.
• Introduction of Mr. Irving H. Kau as Acting Chief Financial Officer.
• Introduction of a New Drying Facility in Northwestern China.
• Increase in the majority interest in Origin’s subsidiary, Jilin Changrong.
• Compilation of the Strategic Advisory Committee of the Most Prominent Agro-Scientists in China.

FY 2010 Expectation

• FY 2010 Revenue Guidance: RMB 630 million to RMB 660 million
• Hybrid rice and corn seed supply levels at normal levels for FY 2010
• Further development in Origin’s GM product pipeline
• Development of complementary product lines

Liang Yuan, President and Chief Executive Officer of Origin Agritech, commented, “We remain excited of the positive growth trends illustrated by results for the fiscal 2009 year period ended September 30, 2009. While most other industries remain uncertain, we show positive signs of significant improvement in both Origin’s top-line and bottom-line numbers. As expected, Origin’s financials for the fiscal 2009 period ended September 30, 2009 showed revenue growth, margin improvement, and bottom line increases from the fiscal year ended September 30, 2008. We expect these trends to continue into FY 2010. As the market trends more towards technology based products, we have managed Origin’s R&D and operations in anticipation of bringing higher quality products to the market.”

FINANCIAL RESULTS OVERVIEW

Revenues & Gross Margin

Our revenues for the year ended September 30, 2009 were RMB592.49 million (US $86.76 million), an increase of 15.39% from RMB513.49 million (US $75.63 million) in the fiscal year ended September 30, 2008. Inclusive of any currency changes, based on US $, the year over year increase in revenues to US $86.76 million from US $75.63 was 14.73%. For the year ended 2009, our scrap sales only amounted to 0.54% of our total revenues with limited impact on our overall gross margin. Excluding these scrap sales and the impairment of inventory; our gross margins for the period were 35.60% (unaudited) as compared to our 31.56% (unaudited) gross margins for the twelve months ended September 30, 2008.

The revenues resulting from non-scrap seed sales for the twelve months ended September 30, 2009 as compared to that of the twelve months ended September 30, 2008 were as follows:

* exclusive of scrap sales

Cost of Revenue

Our cost of revenue for the year ended September 30, 2009 was RMB392.84 million (US$57.53 million), including the RMB7.40 million (US$1.08 million) inventory write-down. This was a decrease of 2.95% from RMB404.80 million (US$59.62 million) from FY2008, including the inventory write-down of RMB18.01 million (US$2.65 million).

Gross Profit

Our gross profit for the year ended September 30, 2009 increased to RMB199.70 million (US$29.24 million) from RMB108.70 million (US$15.94 million) for the year ended September 30, 2008. This represented an increase of 83.72% from the fiscal year ended September 30, 2008.

Operating expenses

Operating expenses for the year ended September 30, 2009 were RMB153.95 million (US$22.55 million), representing an increase of 1.91% from RMB151.07 million (US$22.25 million) for the fiscal year ended September 30, 2008. For all intents and purposes, our operating expenses were relatively flat as compared to the year ended September 30, 2008. Selling and marketing expenses for the year ended September 30, 2009 were RMB55.65 million (US$8.15 million), representing an increase of 4.61% from RMB53.20 million (US$7.84 million) for the year ended September 30, 2008. General and administrative expenses for the year ended September 30, 2009 were RMB64.83 million (US$9.50 million), representing a decrease of 11.63 % from RMB73.36 million (US$10.80 million) for the twelve months ended September 30, 2008. This decrease in the operating expense during the year in part due to a generally decreased in other operating expenses due to enhancement of control over expenditures during daily operations. Research and development expenses for the year ended September 30, 2009 were RMB33.47 million (US$4.90 million), representing an increase of 36.56 % from RMB24.51million (US$3.61 million) for the twelve months ended September 30, 2008. These R& D expenses represent 5.65% of our total revenues inline with our 5.0% of total revenue targets.

Income from Operations

As a result of the impact of the components described above, we had gain from operations for the year ended September 30, 2009 of RMB45.70 million (US$6.69 million), compared with the loss from operations of RMB42.38 million (US$6.24 million) for the twelve months ended September 30, 2008.

Net Income

Our net loss was RMB40.82 million (US$5.98 million) in the year ended September 30, 2009, as compared to the net loss of RMB43.29 million (US$6.37 million) for the fiscal year ended September 30, 2008. In Q209, the company repurchased their outstanding convertible notes from Citadel Investment Group (CIG). While this event had no material impact on our Q409 financial results, the repurchase event does affect our fiscal year financial figures. As a result, a similar GAAP vs. Non GAAP calculation has been calculated for reference. Excluding non-recurring charges related to the convertible notes charged mainly in the second quarter of 2009, net income for the fiscal year ended 2009 was RMB 1.91 million (unaudited), or US$0.08 per diluted share, as compared to a loss of US$0.27 per share a year ago.

(1) Reflects operating results in accordance with U.S. generally accepted accounting principles (or GAAP).

(2) Non-GAAP amounts exclude repurchase-related special items, the amortization of the discount of the convertible notes and the gains from the write-downs of the fair value of embedded derivatives.

Balance Sheet

As of September 30, 2008 and 2009, we had approximately RMB102.26 million (US $15.00 million) and RMB121.26 million (US $17.76 million), respectively, in cash and cash equivalents. Our cash and cash equivalents primarily consisted of cash on hand.

Our Advances from Customers at September 30, 2009 were RMB219.963 million (US $32.21 million), an increase of 58.47% from RMB138.80 million (US $20.44 million) at September 30, 2008. Inclusive of any currency changes, based on US $, the year over year increase in revenues to US $32.21 million from US $20.44 was 57.58%.

Conference Call Information

The Company will host a teleconference on January 14, 2010, at 8:00 a.m. EDT / 9:00 p.m. Beijing time to discuss the fiscal year end results. To participate in the call, please dial +1-877-407-9210 in North America, or +1-201-689-8049 internationally, approximately 15 minutes prior to the scheduled start time.

About Origin

Founded in 1997 and headquartered in Beijing, Origin Agritech Limited (NASDAQ GS: SEED) is China’s leading, vertically-integrated agricultural biotechnology company specializing in research, development and production to supply the growing populations of China. Origin develops, grows, processes, and markets high quality, hybrid crop seeds to farmers throughout China and parts of Southeast Asia via a network of approximately 3,800 first-level distributors and 65,000 second-level distributors and retailers, and possesses a pipeline of genetically modified seed products including glyphosate resistant corn and Bt Corn. The first genetically modified corn seed product for China, Phytase corn, was approved in November 2009 of which Origin possesses exclusive rights. For further information, please log on www.originagritech.com.

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.

Origin Agritech Limited
Irving Kau
Acting Chief Financial Officer
Tel: 011.86.136.8108.0243 or 949.726.8101
Email: Irving.kau@originseed.com.cn

China’s Blossoming Seed Industry

With the rapid growth in China prompting greater demands on domestic food production, and China rapidly becoming a net corn importer, as a result of the rising consumer desire for higher quality food products, the Chinese central government has taken several measures to deal with these core issues. Crop seed is the fundamental input in the corn industry, and this input which possesses the greatest upside in gains from technological improvements. According to research, corn seed plays the most active factor in the increase of yield gains, accounting for over 35.5% of the total contribution.

During the past years, the Chinese central government initiated a comprehensive USD 6 billion plan for the implementation of genetically modified food products throughout China. In 2009, they furthered this plan through further implementation, including the approval of the first genetically modified main crop seed in rice and corn. Compared with conventional varieties, the obvious advantages of transgenic varieties are high yield, high quality, disease-resistance, and herbicide resistance. Farmers plant transgenic varieties to both save time and cost, while also reducing the amount of fieldwork. Given Origin’s unique position with our late stage product pipeline, we believe we are the beneficiary of such emerging trends affecting our industry for the next decade.

GMO Phytase Maize, World’s First Approval for Commercial Use

We have pursued genetically modified research, and in November 2009, we received the Bio-Safety Certificate from the Ministry of Agriculture as a final approval for commercial use of the world’s first genetically modified phytase corn. This is the first genetically modified corn seed product in China. We are also actively pursuing the approval of other GM seed products including glyphosate resistant corn and Bt Corn. Origin’s focus remains in the production of higher quality seed products, whether proprietary or licensed.

Consequently, we established several plant genetic engineering technology platforms to meet the demands we foresee in the future. These include transforming genetically modified traits such as herbicide tolerance, insect resistance, nitrogen efficiency, and drought stress tolerance genes into corn inbred lines. As a domestic company, we are afforded the ability to proceed through all five phases of GMO approval, while international entities are restricted to phases one currently, and forbidden to proceed to phase 2 through 5. We have already had several products in the phase 2 to phase 4, and we will be the first company ready to sell and produce GM corn seed in China.

As an example, we have been successful in marketing genetically modified BT cotton varieties in China and plan to continue to develop other new seed varieties. Upon introduction, the Bt cotton gene was able to increase yield and production value. As a result, the farmers were willing to pay more for genetically modified seeds and prices increased roughly four-fold for genetically modified cotton seed as compared to standard hybrid seed. Today, almost all the planted acreage in China utilizes genetically modified cotton seed, exclusive of the Xinjiang region. We believe that other crop seeds can follow similar product adoption patterns.

GMO Catalysts

Glyphosate resistance and Bt corn, as highly successful products elsewhere in the world, remain “industry changers” in China. Origin Agritech retains the exclusive license rights to these specific traits, and expects to be the first company to commercialize these crops in China.

Worldwide, the largest segment of the transgenic crop market has been herbicide resistant crops. Specifically, glyphosate resistant crops have been widely accepted in cotton, corn, and canola in North America. Introduced in the US in 1998, the use of glyphosate resistant corn grew at a compounded annual growth rate of 51.9%, according to the US Department of Agriculture. The rapid historical adoption rate indicates farmers find this trait to extremely valuable. Additionally, Bt crops produce a protein toxic to specific insects used in areas with high levels of infestations of targeted pests. Introduced in 1996 in the US, acreage of Bt corn has grown at a compounded annual growth rate of 36.7%, according to the US Department of Agriculture.

We have roughly 100 total hybrid products in the market, and began to develop Origin’s own proprietary hybrid seed varieties in 1998. As of December 2009, we have 23 proprietary corn seed products, 18 proprietary rice seed products, 3 proprietary cotton seed products and 3 proprietary canola seed products that are in commercial production and distribution. Currently, we have 9 breeding stations and employ 136 full time research personnel. Origin’s longstanding, education-based distribution platform enables us to introduce higher quality products into the marketplace, as Origin’s associated infrastructure affords us the ability to successfully launch genetically modified products.

FY 2009 Accomplishments

• Announcement of World’s First Phytase Maize in Phase 5 of GMO Approval.
• Completion of the repurchase of the remaining outstanding convertible notes, US $17.26 million in principal at 104.
• Introduction of board members Dr. Yingqi Xia and Dr. James Kang, respected members of the Chinese economic development community and international biotech research community, respectively.
• Introduction of Mr. Irving H. Kau as Acting Chief Financial Officer.
• Introduction of a New Drying Facility in Northwestern China.
• Increase in the majority interest in Origin’s subsidiary, Jilin Changrong.
• Compilation of the Strategic Advisory Committee of the Most Prominent Agro-Scientists in China.

FY 2010 Expectation

• FY 2010 Revenue Guidance: RMB 630 million to RMB 660 million
• Hybrid rice and corn seed supply levels at normal levels for FY 2010
• Further development in Origin’s GM product pipeline
• Development of complementary product lines

Liang Yuan, President and Chief Executive Officer of Origin Agritech, commented, “We remain excited of the positive growth trends illustrated by results for the fiscal 2009 year period ended September 30, 2009. While most other industries remain uncertain, we show positive signs of significant improvement in both Origin’s top-line and bottom-line numbers. As expected, Origin’s financials for the fiscal 2009 period ended September 30, 2009 showed revenue growth, margin improvement, and bottom line increases from the fiscal year ended September 30, 2008. We expect these trends to continue into FY 2010. As the market trends more towards technology based products, we have managed Origin’s R&D and operations in anticipation of bringing higher quality products to the market.”

FINANCIAL RESULTS OVERVIEW

Revenues & Gross Margin

Our revenues for the year ended September 30, 2009 were RMB592.49 million (US $86.76 million), an increase of 15.39% from RMB513.49 million (US $75.63 million) in the fiscal year ended September 30, 2008. Inclusive of any currency changes, based on US $, the year over year increase in revenues to US $86.76 million from US $75.63 was 14.73%. For the year ended 2009, our scrap sales only amounted to 0.54% of our total revenues with limited impact on our overall gross margin. Excluding these scrap sales and the impairment of inventory; our gross margins for the period were 35.60% (unaudited) as compared to our 31.56% (unaudited) gross margins for the twelve months ended September 30, 2008.

The revenues resulting from non-scrap seed sales for the twelve months ended September 30, 2009 as compared to that of the twelve months ended September 30, 2008 were as follows:

* exclusive of scrap sales

Cost of Revenue

Our cost of revenue for the year ended September 30, 2009 was RMB392.84 million (US$57.53 million), including the RMB7.40 million (US$1.08 million) inventory write-down. This was a decrease of 2.95% from RMB404.80 million (US$59.62 million) from FY2008, including the inventory write-down of RMB18.01 million (US$2.65 million).

Gross Profit

Our gross profit for the year ended September 30, 2009 increased to RMB199.70 million (US$29.24 million) from RMB108.70 million (US$15.94 million) for the year ended September 30, 2008. This represented an increase of 83.72% from the fiscal year ended September 30, 2008.

Operating expenses

Operating expenses for the year ended September 30, 2009 were RMB153.95 million (US$22.55 million), representing an increase of 1.91% from RMB151.07 million (US$22.25 million) for the fiscal year ended September 30, 2008. For all intents and purposes, our operating expenses were relatively flat as compared to the year ended September 30, 2008. Selling and marketing expenses for the year ended September 30, 2009 were RMB55.65 million (US$8.15 million), representing an increase of 4.61% from RMB53.20 million (US$7.84 million) for the year ended September 30, 2008. General and administrative expenses for the year ended September 30, 2009 were RMB64.83 million (US$9.50 million), representing a decrease of 11.63 % from RMB73.36 million (US$10.80 million) for the twelve months ended September 30, 2008. This decrease in the operating expense during the year in part due to a generally decreased in other operating expenses due to enhancement of control over expenditures during daily operations. Research and development expenses for the year ended September 30, 2009 were RMB33.47 million (US$4.90 million), representing an increase of 36.56 % from RMB24.51million (US$3.61 million) for the twelve months ended September 30, 2008. These R& D expenses represent 5.65% of our total revenues inline with our 5.0% of total revenue targets.

Income from Operations

As a result of the impact of the components described above, we had gain from operations for the year ended September 30, 2009 of RMB45.70 million (US$6.69 million), compared with the loss from operations of RMB42.38 million (US$6.24 million) for the twelve months ended September 30, 2008.

Net Income

Our net loss was RMB40.82 million (US$5.98 million) in the year ended September 30, 2009, as compared to the net loss of RMB43.29 million (US$6.37 million) for the fiscal year ended September 30, 2008. In Q209, the company repurchased their outstanding convertible notes from Citadel Investment Group (CIG). While this event had no material impact on our Q409 financial results, the repurchase event does affect our fiscal year financial figures. As a result, a similar GAAP vs. Non GAAP calculation has been calculated for reference. Excluding non-recurring charges related to the convertible notes charged mainly in the second quarter of 2009, net income for the fiscal year ended 2009 was RMB 1.91 million (unaudited), or US$0.08 per diluted share, as compared to a loss of US$0.27 per share a year ago.

(1) Reflects operating results in accordance with U.S. generally accepted accounting principles (or GAAP).

(2) Non-GAAP amounts exclude repurchase-related special items, the amortization of the discount of the convertible notes and the gains from the write-downs of the fair value of embedded derivatives.

Balance Sheet

As of September 30, 2008 and 2009, we had approximately RMB102.26 million (US $15.00 million) and RMB121.26 million (US $17.76 million), respectively, in cash and cash equivalents. Our cash and cash equivalents primarily consisted of cash on hand.

Our Advances from Customers at September 30, 2009 were RMB219.963 million (US $32.21 million), an increase of 58.47% from RMB138.80 million (US $20.44 million) at September 30, 2008. Inclusive of any currency changes, based on US $, the year over year increase in revenues to US $32.21 million from US $20.44 was 57.58%.

Conference Call Information

The Company will host a teleconference on January 14, 2010, at 8:00 a.m. EDT / 9:00 p.m. Beijing time to discuss the fiscal year end results. To participate in the call, please dial +1-877-407-9210 in North America, or +1-201-689-8049 internationally, approximately 15 minutes prior to the scheduled start time.

About Origin

Founded in 1997 and headquartered in Beijing, Origin Agritech Limited (NASDAQ GS: SEED) is China’s leading, vertically-integrated agricultural biotechnology company specializing in research, development and production to supply the growing populations of China. Origin develops, grows, processes, and markets high quality, hybrid crop seeds to farmers throughout China and parts of Southeast Asia via a network of approximately 3,800 first-level distributors and 65,000 second-level distributors and retailers, and possesses a pipeline of genetically modified seed products including glyphosate resistant corn and Bt Corn. The first genetically modified corn seed product for China, Phytase corn, was approved in November 2009 of which Origin possesses exclusive rights. For further information, please log on www.originagritech.com.

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.

Origin Agritech Limited
Irving Kau
Acting Chief Financial Officer
Tel: 011.86.136.8108.0243 or 949.726.8101
Email: Irving.kau@originseed.com.cn

Dr. Yingqi Xia will bring his considerable and relevant experience in the Company and within the Chinese economic development community. Dr. Xia sits as the Executive Deputy Director of Zhongguancun Science Park, the largest high-tech zone in China. Previous to his position as the Executive Deputy Director, Dr. Xia worked as the Division Chief for the World Bank Department in the Ministry of Finance in the People’s Republic of China and in the Chinese Embassy to the United States. Prior to this, Dr. Xia received his PhD. degree from University of Ottawa, Canada. The Company is honored and excited to welcome a director with Dr. Xia’s stature and strong government relationships to the board.

Dr. James Kang will bring his considerable and relevant experience in the Company and within the international biotech research community. Dr. Kang sits as the Professor and Distinguished University Scholar for the Departments of Medicine, and Pharmacology and Toxicology, for University of Louisville School of Medicine as well as the National Specialist Professor and Director for Regenerative Medicine Research Center in West China Hospital, Sichuan University in China. Dr. Kang has also served as President and CEO of InnoRem, Inc. and President of International Organization of Life Science and Biotechnology. Prior to this, Dr. Kang received his PhD. Degree from Iowa State University and was a post graduate at Cornell University Medical College in New York. The Company is honored and excited to welcome a director with Dr. Kang’s expertise in the biotechnology arena to the board.

Additionally, Mr. Irving H. Kau has been appointed as Acting Chief Financial Officer from his Vice President of Finance position. Mr. Yasheng Yang, formerly Acting Chief Financial Officer and Vice Chairman of the Board will still remain as Vice Chairman of the Board of Directors and remain involved in the company. The company congratulates Mr. Kau on his exceptional service and noteworthy experience, and is honored to have him continue on as Acting Chief Financial Officer following over 3 years of consistent service within the company. Mr. Kau has extensive work experience working in both global public equity and global private equity in conjunction with Asia-Pacific based companies. During his work experience, he has worked on the buy-side, sell-side, and company side. Prior to his work as Vice President of Finance for Origin Agritech, Mr. Kau worked with Chardan Capital, Merriman Curhan Ford, and Strategic Growth Incorporated, where he firm took senior management positions in invested portfolio companies. He also completed course work at University of Southern California towards a PhD. in Business Strategy. With a background in both finance and genetics while publishing several peer reviewed academic papers, Mr. Kau received undergraduate degrees from Johns Hopkins University and a graduate degree from Rice University, where he received the Jones Partners Scholarship (merit-based) to attend. Mr. Kau is a member of MENSA and The Global Finance Leadership Team of The Global Leader Groups.

About Origin

Founded in 1997 and headquartered in Beijing, Origin Agritech Limited (NASDAQ GS: SEED) is China’s leading, vertically-integrated agricultural biotechnology company specializing in research, development and production to supply the growing populations of China. Origin develops, grows, processes, and markets high quality, hybrid crop seeds to farmers throughout China and parts of Southeast Asia via a network of approximately 3,800 first-level distributors and 65,000 second-level distributors and retailers, and possesses a pipeline of genetically modified seed products including glyphosate resistant corn and Bt Corn. The first genetically modified corn seed product for China, Phytase corn, was approved in November 2009 of which Origin possesses exclusive rights. For further information, please log on www.originagritech.com.

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 filed with the SEC on March 23, 2009. We undertake no obligation to revise or update publicly any forward-looking statements for any reason.

Origin Agritech Limited
Irving H. Kau, +011-86-136-8108-0243 or +1-949-726-8101
Acting Chief Financial Officer
Irving.kau@originseed.com.cn

“The growth patterns we saw in FY2008 have carried on throughout FY2009. Our first three quarters all demonstrated these growth trends throughout our reporting year. The fiscal year end will continue to show similar trends. We plan to report our results for fiscal year 2009 and comment on the outlook for fiscal year 2010,” as stated by Liang Yuan, Chief Executive Officer and President of Origin Agritech Limited.

Liang Yuan continued, “Origin has never been in a stronger position strategically, with the firm barriers to entry for our domestic industry; technologically, with our continually developing pipeline and license opportunities; and, financially, with our cash receipts for the upcoming 2010 selling season. The strength of our product portfolio and our long-term, technology-based solutions are continuing to meet the demands of the growing market opportunity. We had a good year, and we plan to continue the pattern, and press on toward more advanced agricultural technologies."

As stated earlier, based on the preliminary financial data at the end of FY2008, the company expected annual revenue for the FY09 to range from RMB 550 million to RMB 580 million, and annual operating cash flow is expected to be around RMB 80 million, both improvements over fiscal year 2008.

Conference Call Information

The Company will host a teleconference on January 14, 2010, at 8:00 a.m. EDT / 9:00 p.m. Beijing time to discuss the fiscal year end results. To participate in the call, please dial +1-877-407-9210 in North America, or +1-201-689-8049 internationally, approximately 15 minutes prior to the scheduled start time.

About Origin

Founded in 1997 and headquartered in Beijing, Origin Agritech Limited (NASDAQ GS: SEED) is China’s leading, vertically-integrated agricultural biotechnology company specializing in research, development and production to supply the growing populations of China. Origin develops, grows, processes, and markets high quality, hybrid crop seeds to farmers throughout China and parts of Southeast Asia via a network of approximately 3,800 first-level distributors and 65,000 second-level distributors and retailers, and possesses a pipeline of genetically modified seed products including glyphosate resistant corn and Bt Corn. The first genetically modified corn seed product for China, Phytase corn, was approved in November 2009 of which Origin possesses exclusive rights. For further information, please log on www.originagritech.com.

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 filed with the SEC on March 23, 2009. We undertake no obligation to revise or update publicly any forward-looking statements for any reason.

Origin Agritech Limited
Irving Kau
Vice President, Finance
949.726.8101 or 011.86.136.8108.0243
Irving.kau@originseed.com.cn

Liang Yuan, Chief Executive Officer of Origin Agritech, stated, “Origin has never been in a stronger position strategically, technologically, and, most appropriately, financially, in this situation. We are repurchasing our notes based on this strength. Our current cash receipts from this FY 2010 selling season are again the highest in our history, and this should continue to be evident in the first quarters on our balance sheet. We repaid our debt to eliminate any possible dilution and demonstrate our upcoming confidence in the near term future.”

The Company issued the Notes to Citadel in an aggregate principle amount of US$40 million in June 2007, and repurchased $23.4 million in principle of those notes in July 2008 and January 2009. This composes the last tranche of the aggregate principle amount of the remaining US$16.6 million, for a repurchase price of US$104,000 for each principal amount of US$100,000 of such Notes. These repurchased notes have been cancelled.

This Note repurchase provides the Company with the opportunity to eliminate expensive debt on our balance sheet, receive favorable financial terms, and limits company liability going forward in light the current global capital market conditions, which should provide the company with significant flexibility for future growth and capital opportunities.

About Origin

Founded in 1997 and headquartered in Beijing, Origin Agritech Limited (NASDAQ GS: SEED) is China’s leading, vertically-integrated agricultural biotechnology company specializing in research, development and production to supply the growing populations of China. Origin develops, grows, processes, and markets high quality, hybrid crop seeds to farmers throughout China and parts of Southeast Asia via a network of approximately 3,800 first-level distributors and 65,000 second-level distributors and retailers, and possesses a pipeline of genetically modified seed products including glyphosate resistant corn and Bt Corn. This first genetically modified corn seed product for China, Phytase corn, was approved in November 2009 which Origin possesses exclusive rights. For further information, please log on www.originagritech.com.

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 filed with the SEC on March 23, 2009. We undertake no obligation to revise or update publicly any forward-looking statements for any reason.

Origin Agritech Limited
Irving Kau, 949.726.8101 or 011.86.136.8108.0243
Vice President, Finance
Irving.kau@originseed.com.cn

Jilin Changrong has the exclusive rights from Jinong, the commercial subsidiary of the Jilin Academy of Agricultural Sciences (“JAAS”), to 40 proprietary hybrid crop seeds. Jilin Changrong will continue to receive, on an exclusive basis, new corn hybrid seeds developed by Jinong. To date, 28 seeds from Jilin Changrong have been approved by the government, with the expectation that an additional 5-8 hybrid crop seeds will be approved by the government next year. An additional 48 hybrid seeds are undergoing regulatory testing. This product portfolio makes Jilin Changrong one of the leading crop seed companies in the northern region of China and strengthens Origin’s presence in Inner Mongolia.

Increase in ownership stake would allow for further management control of the company to fully share Origin’s management direction and more fully optimize our production facilities and marketing network. Origin owns a 23% interest in Jinong which, in 2006, was named as one of the top 50 seed companies in China. JAAS is one of the leading provincial agricultural research institutions in China. JAAS has 11 research units and is considered to be the premier agricultural research and development institution in the northeast region. Among its 11 research units are the National Corn Research and Improvement Center, the Jilin Branch of the National Rice Improvement Center, the Jilin Branch of the National Center on Corn Improvement, and the Jilin Province Key Open Lab on Agro-Biotechnology.

For the fiscal year ended September 30, 2009, Jilin Changrong delivered 20.0 million kilograms of corn seed, generated revenue of RMB 163.29 million (US $23.91 million) and net income of RMB 31.82 million (US $4.66 million) (unaudited).

Liang Yuan, Chief Executive Officer of Origin, commented, “We were very pleased with Jilin Changrong’s performance to date and continue to be optimistic about its future outlook. Beyond the anticipated financial contributions, this additional investment in Jilin Changrong is continues to provide a number of strategic benefits to Origin. These benefits include the access to and cooperation with the JAAS corn germplasm and research program and an opportunity to share management skills and intellectual property. The northeast region of China accounts for approximately 35% of the country’s total corn growing area and 45% of the country’s total corn production, making it an area of tremendous agricultural importance. Jilin Changrong has a very good reputation in northeast China, especially in Jilin province where we estimate that Jilin Changrong has a 10% market share of the corn seed market. ”

About Origin

Founded in 1997 and headquartered in Beijing, Origin Agritech Limited (NASDAQ GS: SEED) is China’s leading, vertically-integrated agricultural technology company specializing in agri-biotech research, development and production to supply the growing populations of China. Origin develops, grows, processes, and markets crop seeds to farmers throughout China and parts of Southeast Asia via a network of approximately 3,800 first-level distributors and 65,000 second-level distributors and retailers. The Company currently operates facilities in 30 of 32 provinces in China. Since Origin launched its first entirely internally developed seed in 2003, the Company has developed 26 proprietary corn seed products, 19 proprietary rice seed products, 5 proprietary cotton seed products and 4 proprietary canola seed products that are in commercial production and distribution as of December 2008. For further information, please log on www.originagritech.com.

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 filed with the SEC on March 23, 2009. We undertake no obligation to revise or update publicly any forward-looking statements for any reason.

Origin Agritech Limited
Irving Kaum, 949-726-8101 or 011-86-136-8108-0243
Vice President, Finance
Irving.kau@originseed.com.cn

Genetically modified seed products in China must undergo five separate stages of approval beginning with a phase one laboratory approval to the final receipt of the Bio-safety Certificate in phase five. Currently, this GM seed approval process is restricted only to domestic seed producers such as Origin Agritech.

Phytase is currently used as an additive in animal feed to breakdown phytic acid in corn, which holds 60% of the phosphorus in corn. Phytase increases phosphorus absorption in animals by 60%. Phosphorus is an essential element for the growth and development of all animals, and plays key roles in skeletal structure and in vital metabolic pathways. Phytase, as an additive for animal feed, is mandatory in Europe, Southeast Asia, South Korea, Japan, and other regions for environmental purposes.

Phytase transgenic corn, developed by and licensed from Chinese Academy of Agricultural Science (CAAS) after 7 years of study, will allow animal feed producers the ability to eliminate purchasing phytase and corn separately. It will eliminate the need for mixing the two ingredients together, saving time, machinery, and labor for the animal feed producers.

Origin’s GMO phytase-producing corn is expected to reduce the need for inorganic phosphate supplements as animals will directly absorb more phosphate from their feed, reducing animal feed’s high cost. Inorganic phosphates may be contaminated with fluorin and heavy metal residues created in the manufacturing process. These fluorin and heavy metal residues in the feedstuff are toxic to animals, and dangerous to humans. Origin plans to release further details of the development of their phytase product line as this develops.

Dr. Gengchen Han, Origin’s Chairman said, “With this landmark seed approval, we are not only own the first GM corn seed product in China, but we are actively leading the new genetically modified generation of agricultural products for China, and will continue to do so for the future.”

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 filed with the SEC on March 23, 2009. We undertake no obligation to revise or update publicly any forward-looking statements for any reason.

Origin Agritech Limited
Irving Kau
Vice President, Finance
949.726.8101 or 011.86.136.8108.0243
Irving.kau@originseed.com.cn

The Origin Strategic Advisory Committee (SAC) is comprised of experts in agricultural research and biotechnology. The SAC acts as a bridge between the Origin, the scientific discovery community, and the scientific policy making community. The SAC also provides Origin with internationally renowned expertise in agricultural biotechnology.

The SAC is a key group involved in establishing the strategic direction and vision for Origin Agritech, particularly in the promotion of a broad spectrum of research of genetically-modified products. Members of the SAC have substantial research track records within their area of expertise. Dr. Gengchen Han, the Chairman of Origin Agritech and Professor Fan will Co-Chair the Committee.

The committee will be composed of prominent members including:

Dr. Gengchen Han, Origin’s Chairman, commented, “We believe this group will provide the clear vision to develop Origin Agritech for the long term. We are not only honored to have these distinguished guests participate in strategic direction of our company, but excited about the limitless potential when these prominent individuals put their minds together.”

About Origin

Founded in 1997 and headquartered in Beijing, Origin Agritech Limited (NASDAQ GS: SEED) is China’s leading, vertically-integrated agricultural technology company specializing in agri-biotech research, development and production to supply the growing populations of China. Origin develops, grows, processes, and markets crop seeds to farmers throughout China and parts of Southeast Asia via a network of approximately 3,800 first-level distributors and 65,000 second-level distributors and retailers. The hybrid seed industry is estimated at US $2.5 billion and that is expected to double within the next five years. The Company currently operates facilities in 30 of 32 provinces in China. Since Origin launched its first entirely internally developed seed in 2003, the Company has developed 26 proprietary corn seed products, 19 proprietary rice seed products, 5 proprietary cotton seed products and 4 proprietary canola seed products that are in commercial production and distribution as of December 2008. For further information, please log on www.originagritech.com.

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 filed with the SEC on March 23, 2009. We undertake no obligation to revise or update publicly any forward-looking statements for any reason.

Origin Agritech Limited
Irving Kau, 949-726-8101
011-86-136-8108-0243
Vice President, Finance
Irving.kau@originseed.com.cn

The site of this new facility is also important from a strategic perspective, as it lies in Gansu, which yields the highest seed production levels of seed corn in all of China. The facility will allow the company to control the quality of the corn and maintain the highest standards. It will also prevent the loss of seed stock which did not dry in time using standard conventional measures as surrounding environmental temperatures vary.

Hybrid seed corn must be dried slowly, at low temperatures (approximately 38C); this is a critical step in maintaining seed quality. Quality factors affected are seed vigor and viability, mechanical purity, and seed appearance. Moisture is the most important factor in bringing harmful changes during seed storage. Operation requires higher amounts of management skill and allows for greater control in the product quality. Lower priced seed companies are unable to use these drying methods and are therefore subject to higher variation in the production quality and suffering loss of seed stock.

Liang Yuan, Origin’s Chief Executive Officer, commented, “We believe this state-of-the-art facility should support increasing demand and quality for our premium seed products throughout China. Our measured expansion for facilities that improve our product quality and minimize inventory risks should continue to be a driver of a more consistent growth plan for our company. This addition only adds to Origin’s vertically integrated infrastructure throughout all of mainland China.”

About Origin

Founded in 1997 and headquartered in Beijing, Origin Agritech Limited (NASDAQ GS: SEED) is China’s leading, vertically-integrated agricultural technology company specializing in agri-biotech research, development and production to supply the growing populations of China. Origin develops, grows, processes, and markets crop seeds to farmers throughout China and parts of Southeast Asia via a network of approximately 3,800 first-level distributors and 65,000 second-level distributors and retailers. The hybrid seed industry is estimated at US $2.5 billion and that is expected to double within the next five years. The Company currently operates facilities in 30 of 32 provinces in China. Since Origin launched its first entirely internally developed seed in 2003, the Company has developed 26 proprietary corn seed products, 19 proprietary rice seed products, 5 proprietary cotton seed products and 4 proprietary canola seed products that are in commercial production and distribution as of December 2008. For further information, please log on www.originagritech.com.

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 filed with the SEC on March 23, 2009. We undertake no obligation to revise or update publicly any forward-looking statements for any reason.

Origin Agritech Limited
Irving Kau
Vice President, Finance
Tel: 949.726.8101 or 011.86.136.8108.0243
Irving.kau@originseed.com.cn

For the entire life of the patent, Origin Biotechnology will receive exclusive rights to sell and develop corn, soybean, rice, cotton and canola products that contain these technology traits worldwide, both in the territory within China and outside of China. Origin Biotechnology will also receive exclusive rights to sub-license to any third parties to sell and develop corn, soybean, rice, cotton and canola products that contain these traits and with application of patent technology worldwide in the territory within China and outside of China. Origin Biotech will also receive the rights to improve and further develop this glyphosate-tolerant gene. Additionally, no change of control in the patent will have impact on the validity of this agreement.

As a result of this landmark agreement for Origin, Chairman Gengchen Han reiterated, “Origin continues to demonstrate that it is the leading, technology-focused crop seed company in China. Our goal remains consistent ---- to lead the industry by serving farmers with unique enabling technology and services, producing and protecting higher crop yields. Our focus remains in the production of higher quality seed products, whether proprietary or licensed.”

UPDATE OF ORIGIN GM PROGRAM

Phytase

World’s first transgenic phytase corn is expected to be commercially launched as the first genetically modified corn product in China. Phase 5 passage is expected near term pending a final stage approval from the Ministry of Agriculture (MOA). Currently, phytase corn continues to remain the only biotechnology corn product in Phase 5 of development in China. Phytase is currently used as an additive essential for the growth and development of all animals, and limits the amount of phosphorus waste in the environment. Phytase, as an additive for animal feed, is mandatory in Europe, Southeast Asia, South Korea, Japan, and Taiwan for environmental purposes. The worldwide phytase potential market size is US$500 million dollars, including US$200 million for China alone, according to the China Feed Industry Study. The corn seed market in China is estimated at US$1 billion.

Glyphosate (Herbicide) Tolerance

Glyphosate tolerance has passed the intermediate testing phase (Phase 2) and entered the environmental release testing phase (Phase 3). Worldwide, the largest segment of the transgenic crop market has been herbicide tolerant crops. Specifically, glyphosate tolerant crops have been widely accepted in cotton, corn, and canola in North America. Introduced in the US in 1998, the use of glyphosate tolerant corn grew from 950,000 acres in 1998 to 2.3 million acres in 1999 to 41 million acres in 2007, or at a compounded annual growth rate of 51.9%, according to the US Department of Agriculture. The rapid historical adoption rate indicates farmers find this trait to be extremely valuable. The high level of adoption of these crops by farmers has also caused the reduction in value of the remaining herbicide market.

Since their introduction in 1996, over 75 million acres of genetically engineered glyphosate-tolerant crops have been planted, making up 46% of the corn, 80% of soybean acres, and 70% of cotton acres in the US. These genetically engineered crops have been adopted by farmers because they are perceived to offer significant economic benefits over conventional crop and herbicide programs. The adoption of glyphosate-tolerant crops has reduced costs for US farmers an estimated $1.2 billion. On the basis of recent adoption rates by growers around the world, it appears that glyphosate-tolerant crops will continue to grow in number and in hectares planted.

Pest Resistance (Bt Corn)

Pest resistance (Bt Corn) has passed the intermediate testing phase (Phase 2)and entered the environmental release phase (Phase 3). In these phase 2 and 3 trials, these traits continue to perform as the best performing traits for pest resistance throughout China.

Bt crops produce a protein toxic to specific insects used in areas with high levels of infestations of targeted pests. Bt cotton, which controls varieties of the budworm and bollworm, was planted on 59 percent of U.S. cotton acreage and 75 percent of the Chinese cotton acreage in 2007. Introduced in 1996 in the US, acreage of Bt corn has grown from 3.6 million acres in 1999 to 44 million acres in 2007, or at a compounded annual growth rate of 36.7%, according to the US Department of Agriculture. This Bt corn variety was planted on 49 percent of U.S. corn acreage in 2007.

About Origin

Founded in 1997 and headquartered in Beijing, Origin Agritech Limited (Nasdaq: SEED - News) is one of China’s leading, vertically-integrated agricultural technology company specializing in hybrid seed research, development and production to supply the growing populations of China and Southeast Asia. Origin develops, grows, processes, and markets hybrid seeds to farmers throughout China and parts of Southeast Asia via a network of approximately 3,200 distributors. The hybrid seed industry is estimated at US$2 billion and that is expected to double by 2010. The animal nutrition market is estimated at US$1.6 billion. The Company currently operates facilities in 30 of China’s 32 provinces as well as Beijing. Since Origin launched its first entirely internally developed seed in 2003, the Company has developed and commercialized a proprietary seed portfolio of ten corn hybrids, six rice hybrids and two canola hybrids. For further information, please log on www.originagritech.com.

Forward Looking Statements

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 transition report on Form 20-F filed with the SEC on February 15, 2007. We undertake no obligation to revise or update publicly any forward-looking statements for any reason.

Origin Agritech Limited
Irving Kau
Tel: 949.726.8101 or 011.86.136.8108.0243
Vice President, Finance
Irving.kau@originseed.com.cn

FINANCIAL RESULTS OVERVIEW

During the third quarter of fiscal 2009, the Company generated revenues of RMB 477.17 million (US$69.84 million), a decrease of 2.76% from RMB 490.71 million (US$71.54 million) generated in the three months ended June 30, 2008. However, this 3Q09 revenue figure is exclusive of the RMB 53.69 million (US$7.86 million) in Deferred Revenue for the three-months ended June 30, 2009, carried as a liability on the balance sheet, which should be recognized in Q409 pending a price confirmation. These fluctuations in the timing of the pricing of our seed shipments are common in the industry and are dependant upon the schedule of the shipment based on customer preferences.

Gross profit for the three-months ended June 30, 2009 was RMB151.56 million (US$22.18 million) compared to RMB144.09 million (US$21.01 million) in the same period of the prior year, mainly due to increased demand and pricing across all product categories this season.

Total operating expenses for the three-months ended June 30, 2009 were RMB 32.61 million (US$4.77 million) compared with RMB 45.71 million (US$6.66 million) reported for the same period in 2008. Selling and marketing expenses were RMB 12.08 million (US$1.77 million) for the third quarter of 2009, representing a decrease of 28.18% from RMB 16.82 million (US$2.45 million) for the same period of the last year. This decrease was mainly due to a lower transportation costs. General and administrative expenses of RMB 14.25 million (US$2.09 million) for the third quarter ended June 30, 2009, decreased 25.24% from RMB 19.06 million (US$2.78 million) for the three months ended June 30, 2008, mainly due to the lower consulting fees. Research and development expenses decreased to RMB 6.28 million (US$0.92 million) for the three-months ended June 30, 2009 from RMB 9.83 million (US$1.43 million) for the same quarter last year, with a decrease of 36.11%. This decrease was mainly due to a lower amount of charges for scientific cooperation projects this year. With the completion of 3Q09 season, this marks the third consecutive quarter of lower year over year expenses for Origin.

Income from operations for the third quarter of 2009 amounted to RMB 118.95 million (US$17.41 million) compared with the income from operations of RMB 98.38 million (US$14.34 million) for the same period in 2008.

Net income for the third quarter of 2009 was RMB 74.97 million (US$10.98 million), or RMB 3.26 (US$0.48) per diluted share, as compared to a net income of RMB 60.12 million (US$8.77 million), or RMB 2.62 (US$0.38) per diluted share in the same period one year ago.

Year-to-Date Results

For the nine months ended June 30, 2009, the Company generated revenues of RMB 534.66 million (US$78.26 million), an increase of 3.09% from RMB 518.63 million (US$75.61 million) generated in the three months ended June 30, 2008.

Gross profit for the nine-months ended June 30, 2009 was RMB163.59 million (US$23.94 million) compared to RMB144.13 million (US$21.01 million) in the same period of the prior year. Both the gains in revenue and gross profit for the year to date were a result of stronger product demand and pricing in the revenue recognized in 3Q09 across all product categories.

Total operating expenses for the nine-months ended June 30, 2009 were RMB 103.85 million (US$ 15.20 million) compared with RMB 126.56 million (US$ 18.45 million) reported for the same period in 2008.

In Q209, the company repurchased their outstanding convertible notes from Citadel Investment Group (CIG). While this event had no material impact on our Q309 financial results, the repurchase event does affect our year-to-date financial figures. As a result, a GAAP vs. Non GAAP calculation has been calculated for reference.

On a non-GAAP basis, excluding non-recurring charges related to the convertible notes charged mainly in the second quarter of 2009, net income for the nine months ended 2009 was US$3.98 million, or US$0.17 per diluted share, as compared to a net income of US$0.7 million, or US$0.03 per diluted share in the same period one year ago.