Origin Agritech Limited Reports Unaudited Second Quarter Financial Results
Origin Agritech Limited (NASDAQ: SEED) today announced unaudited financial results for the second quarter ended March 31, 2012. Origin prepares its financial statements in accordance with generally accepted accounting principles (GAAP) of the United States.
FINANCIAL RESULTS OVERVIEW
During the second quarter of fiscal 2012, the Company generated revenues of RMB14.74 million (US$2.34 million), compared with RMB1.09 million for the three months ended March 31, 2011. Revenues generated in the second quarter were mainly a result of scrap sales. As a reminder, the majority of Origin's revenues are recorded in the fiscal third quarter as a result of our revenue recognition policy.
Deferred revenues were RMB480.70 million (US$76.37 million) as of March 31, 2012 compared with RMB443.56 million on March 31, 2011. Deferred revenues reflect the value of Origin's crop seeds a) after sales arrangement is confirmed; b) delivery to the customer is made; and c) pre-payment from the customer is received, but before the final sales price is fixed and determined. The final sales price is primarily determined by sales incentives that Origin gives to its customers. It is expected that the majority of these deferred revenues will be recorded on the income statement in the fiscal 2012 third quarter ending June 30, 2012.
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