Origin Agritech Limited Restructures Northeast Seed Distribution

Origin Agritech Limited (NASDAQ: SEED) today announced it has restructured the Jilin Changrong subsidiary unit to reorganize Company operations in the Northeast seed corn market. As a result, the Jilin Changrong subsidiary will withdraw its seed registration and fold current operations into Origin's existing Northeast distribution and Jinong Hi-tech Company. Origin will continue to hold 23% of Jinong Hi-tech. Originally, Jilin Changrong was formed as a collaborative effort between Origin and Jinong Hi-tech. Prior to the withdrawal, Origin Agritech directly held 53.95% of Jilin Changrong.

Commenting on the restructuring, Dr. Gengchen Han, Chairman and Chief Executive Officer of Origin, said, “We are pleased to have realized operational efficiencies from our restructuring in the Northeast. This current restructure, coupled with our new production unit in Xinjiang, will allow Origin to allocate resources to areas where we can achieve stronger returns for the long term. Leveraging on our enhanced technological and distribution platform, we will continue to innovate to better address Chinese farmers' demand for premium agricultural product solutions.”