Origin Agritech Strengthens Liquidity by Selling Its Xinjiang Seed Subsidiary and Leasing Back the Production Base
Key Highlights
- ➤Origin Agritech (SEED) sells 70.5184% Xinjiang Originbo stake for RMB 108 million.
- ➤Five-year lease-back secures production base access through September 30, 2031.
- ➤Annual lease expense is RMB 4.0 million for 506 base assets.
- ➤RMB 96.61 million, approximately US$13.4 million, is payable in cash through June 30, 2027.
- ➤Proceeds target working capital, R&D, new corn varieties, and market expansion.
Expert Statements
Weibin Yan, Chief Executive Officer of Origin Agritech
“The sale substantially improves the Company’s liquidity and lets the team focus on the recovery of sales of our new variety portfolio, the expansion of our sales and service infrastructure, and our R&D programs, while the lease-back keeps our seed supply secure and efficient”
Weibin Yan, Chief Executive Officer of Origin Agritech
“As I begin my third year as CEO, we are leading the Company into the 'Standing Up' stage of our multi-year strategic plan, and this transaction paves the way through this critical period.”
The sale brings approximately US$15.0 million to support working capital, R&D, new corn varieties, and market expansion, while the five-year lease-back maintains supply stability
BEIJING, Oct. 01, 2026 (GLOBE NEWSWIRE) -- Origin Agritech Limited (NASDAQ: SEED) ("Origin" or the "Company"), a leading Chinese agricultural technology company, today announced that its indirect subsidiary, Beijing Origin Agriculture Limited ("Beijing Origin"), has entered into an equity transfer agreement (the "Agreement") to sell its 70.5184% equity interest in Xinjiang Originbo Seed Limited ("Xinjiang Originbo"), the Company's principal corn seed production and processing base (the "Base"), to Hunan Xindaxin Limited ("Hunan Xindaxin") for RMB 108 million (approximately US$15.0 million). Beijing Origin has also signed a five-year lease for all the buildings, machinery, equipment, and other assets comprising the Base, running from October 1, 2026, to September 30, 2031. The lease-back preserves the Company's core business operations: seed production and sales at the Base continue to be recorded by Beijing Origin; overall management of the Base remains stable; and operating personnel are unchanged, except for core finance and risk control roles.
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