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6-K 1 tm2517499d1_6k.htm FORM 6-K

 

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

FORM 6-K

 

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16 OF

THE SECURITIES EXCHANGE ACT OF 1934

 

FOR THE MONTH OF JUNE 2025

 

COMMISSION FILE NUMBER 000-51576

 

ORIGIN AGRITECH LIMITED

(Translation of registrant's name into English)

 

Origin R&D Center, Shuangbutou Village

Xushuang Road, Songzhuang Town

Tongzhou District. Beijing China 101119

(Address of principal executive office)

 

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

 

Form 20-F x      Form 40-F ¨

 

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ¨

 

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ¨

 

Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

 

Yes ¨       No x

 

If "Yes" is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82-Furnished herewith on behalf of the Company are the following:

 

 

 

 


 

Unaudited Results of Operations

 

 

(a) Financial Results Overview

 

(b) Unaudited Financial Statements:

 

- Condensed Statements of Operations and Comprehensive Income (Loss) (Unaudited) for the Six Months Ended March 31, 2024 and 2025

 

- Condensed Consolidated Balance Sheets as of September 30, 2024 and March 31, 2025 (Unaudited)

 

- Condensed Consolidated Statements of Shareholders’ Deficit (Unaudited) for the Six Months Ended March 31, 2024 and 2025

 

- Condensed Consolidated Statements of Cash Flows (Unaudited) for the Six Months Ended March 31, 2024 and 2025

 

- Notes to Condensed Consolidated Financial Statements (Unaudited)

 

Origin Agritech Limited has issued its unaudited financial results for the six months ended March 31, 2025. See the attached Exhibit 99.1.

 

 


 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

  ORIGIN AGRITECH LIMITED
     
  By: /s/ Weibin Yan
  Name: Mr. Weibin Yan
  Title: Chief Executive Officer

 

Dated: June 26, 2025

 

 


 

Exhibit Index

 

The following exhibits are filed as part of this Form 6-K

 

Exhibit No. Description of Exhibit
   
99.1 Unaudited Financial Results for the six months ended March 31, 2025

 

 

 

EX-99.1 2 tm2517499d1_ex99-1.htm EXHIBIT 99.1

 

Exhibit 99.1

 

Origin Agritech Limited (“Origin” or the “Company”), an agriculture technology company in China, is filing its unaudited financial results for the first half of FY2025 ended March 31, 2025, prepared in accordance with United States Generally Accepted Accounting Principles (US GAAP).

 

FINANCIAL RESULTS OVERVIEW

 

The Company reported net revenue of RMB72.3 million (US$10.1 million) during the first half year of FY2025, compared to RMB92.0 million for the first half year of FY2024. The decline in revenue was due to the halt of partial production lines at the Xinjiang factory, the implementation of equipment upgrades, and technical renovation on the production lines, resulting in reduced production capacity and consequently decreased revenue during this period. Some of our proprietary products experienced sales declines due to market cycle impacts. Meanwhile, newly launched products this year are still in the market cultivation stage, with channel penetration rates and consumer awareness yet to be fully developed.

 

Total operating expenses for the first half year of FY2025 were RMB32.8 million (US$4.56 million), up 144% from RMB13.4 million for the same period a year ago. The increase was the result of, (i) Selling and marketing expenses for the first half year of FY2025 were RMB2.6 million (US$0.4 million), compared to RMB3.5 million a year ago; (ii) General and administrative expenses increased 273% to RMB25.0 million (US$ 3.5 million), up from RMB6.7 million a year ago; (iii). Research and development expenses for the first half year of FY2025 were RMB5.2 million (US$0.7 million), up 60% from RMB3.2 million a year ago. Research and development expenses increased due to the development of new proprietary products.

 

Total operating loss for the first half year of FY2025 was RMB24.7 million (US$3.4 million), compared to total operating income of RMB4.3 million reported a year ago.

 

The interest expense during the first half year of FY2025 was RMB0.46 million (US$64,000), compared to interest expense of RMB0.43 million reported a year ago. There was no rental income during the first half year of FY2024 and FY2025.

 

Net loss attributable to the Company for the first half year of FY2025 was recorded at RMB25.6 million (US$3.6 million), compared to the net profit of RMB1.4 million a year ago.

 

Loss per ordinary share for the first half of FY2025 was RMB3.55 (or US$0.5), compared to the income per share of RMB0.21 during the same period a year ago.

 

Balance Sheet

 

As of March 31, 2025, cash and cash equivalents were RMB2.4 million (US$0.33 million), a decrease of RMB6.0 million from the cash and cash equivalents of RMB8.4 million as of September 30, 2024.

 

As of March 31, 2025, total liabilities were RMB151.3 million, in which total current liabilities were RMB145.6 million (US$20.3 million) and long term liabilities were RMB5.7 million.

 

As of March 31, 2025, total assets were RMB88 million (US$12.4 million), in which total current assets were RMB62.3 million (US$8.6 million), and non-current assets were RMB26.5 million (US$3.7 million).

 

 


 

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (UNAUDITED)

 

          Six Months Ended March 31,  
          2024     2025     2025  
          RMB'000     RMB'000     USD'000  
    Notes     (Unaudited)     (Unaudited)     (Unaudited)  
Revenues           92,040       72,341       10,078  
Cost of revenues           (74,335 )     (64,240 )     (8,949 )
Gross profit           17,705       8,101       1,129  
                               
Operating expenses:                              
Selling and marketing           (3,519 )     (2,640 )     (368 )
General and administrative           (6,704 )     (24,978 )     (3,480 )
Research and development           (3,220 )     (5,153 )     (718 )
Total operating expenses, net           (13,443 )     (32,771 )     (4,566 )
                               
Income (loss) from operations           4,262       (24,670 )     (3,437 )
Interest expense, net           (428 )     (461 )     (64 )
Other non-operating income, net           1,491       328       46  
Income before income taxes from operations           5,325       (24,803 )     (3,455 )
                               
Income tax expense   1       (39 )     (34 )     (5 )
Net income           5,286       (24,837 )     (3,460 )
Less: Net income attributable to non-controlling interests           3,931       747       104  
Net income (loss) attributable to Origin Agritech Ltd.           1,355       (25,584 )     (3,564 )
                               
Other comprehensive income (loss):                              
Net income           5,286       (24,837 )     (3,460 )
Foreign currency translation difference           104       (295 )     (41 )
Comprehensive income           5,390       (25,132 )     (3,501 )
Less: Comprehensive loss attributable to non-controlling interests           3,931       747       104  
Comprehensive income (loss) attributable to Origin           1,459       (25,879 )     (3,605 )
                               
Basic and diluted net loss per share attributable to Origin Agritech Limited   2       0.21       (3.55 )     (0.50 )
Shares used in calculating basic and diluted net income (loss) per share           6,321,107       7,198,422       7,198,422  

 

 


 

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)

 

          3/31/2024     9/30/2024     3/31/2025  
          RMB'000     RMB'000     RMB'000     US$'000  
    Notes     (Unaudited)     (Audited)     (Unaudited)     (Unaudited)  
Assets                                      
Current assets:                                      
Cash and cash equivalents           10,416       8,375       2,400       334  
Accounts receivable           4,124       4,032       5,790       807  
Due from related parties   3       23,411       8,636       8,018       1,117  
Advances to suppliers   4       49,192       65,076       35,015       4,878  
Inventories   5       25,697       12,874       9,320       1,298  
Other current assets   6       10,998       755       1,717       239  
Total current assets           123,838       99,748       62,260       8,673  
                                       
Land use rights, net           3,225       3,192       -       -  
Plant and equipment, net   7       22,616       28,301       23,023       3,207  
Long-term investment   8       67,484       -       -       -  
Acquired intangible assets, net           -       -       1,662       232  
Lease Asset           627       321       128       18  
Other assets           5,625       -       1,638       228  
Total assets           223,415       131,562       88,711       12,358  
                                       
Liabilities, minority interests and shareholders’equity                                      
Current liabilities:                                      
Borrowings   9       -       4,950       4,950       690  
Accounts payable           11,338       8,469       9,795       1,365  
Due to growers           216       -       -       -  
Due to related parties   3       172,139       27,029       24,612       3,429  
Contract liabilities           84,653       78,694       43,212       6,020  
Income tax payable           871       807       764       106  
Lease Liability - current           113       63       63       9  
Other payables and accrued expenses   10       24,322       64,271       62,266       8,672  
Total current liabilities           293,652       184,283       145,662       20,291  
Lease Liability - noncurrent           128       65       65       9  
Other long-term liability   11       5,995       5,813       5,632       785  
Total liabilities           299,775       190,161       151,359       21,085  
                                       
Shareholders’ equity (deficit):                                      
Additional paid-in capital           573,289       578,512       604,524       84,217  
Retained deficit           (600,211 )     (580,854 )     (606,438 )     (84,483 )
Treasury stock at cost (20,523 and 20,523 shares as of                                      
March 31, 2024 and 2025, respectively)           (6,133 )     (6,133 )     (6,133 )     (854 )
Accumulated other comprehensive loss           (22,884 )     (22,816 )     (23,111 )     (3,220 )
Total shareholders’ deficit           (55,939 )     (31,291 )     (31,158 )     (4,340 )
Non-controlling interest           (20,421 )     (27,308 )     (31,490 )     (4,387 )
Total equity deficit           (76,360 )     (58,599 )     (62,648 )     (8,727 )
                                       
Total liabilities and deficit           223,415       131,562       88,711       12,358  

 

 


 

CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ DEFICIT (UNAUDITED)

 

    Equity attributable to Origin Agritech Limited  
                            Accumulated                    
                Additional           Other           Non-        
                Paid-in     Accumulated     Comprehensive     Treasury     controlling     Total  
    Common stock     Capital     Deficit     Loss     Stock     Interests     Equity  
    Shares*     Amount           Unrestricted                          
        RMB     RMB’000     RMB’000     RMB’000     RMB’000     RMB’000     RMB’000  
Balance as of September 30, 2023     5,990,604       -       551,933       (656,898 )     (22,774 )     (6,133 )     (38,770 )     (172,642
Net loss for the year                             (1,067 )                     6,288       5,221  
Capital contribution                                                     5,575       5,575  
Exercise of share option     10,503               599                                       599  
Issuance of common shares     320,000               19,594                                       19,594  
Translation adjustments                                     (325 )                     (325 )
Balance as of March 31, 2024     6,321,107       -       572,126       (657,965 )     (23,099 )     (6,133 )     (26,907 )     (141,978 )
                                                                 
Balance as of September 30, 2024     6,561,107       -       578,512       (580,854 )     (22,816 )     (6,133 )     (27,308 )     (58,599
Net loss for the year                             (25,584 )                     747       (24,837 )
Share-based compensation expense                     7,415                                       7,415  
Business disposal                                                     (4,629 )     (4,629 )
Dividend                                                     (300 )     (300 )
Issuance of common shares     1,055,000               18,597                                       18,597  
Translation adjustments                                     (295 )                     (295 )
Balance as of March 31, 2025     7,616,107               604,524       (606,438 )     (23,111 )     (6,133 )     (31,490 )     (62,648 )
In US$ @     7.1782               84,217       (84,483 )     (3,220 )     (854 )     (4,387 )     (8,727 )

 

 


 

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

 

    Six Months Ended March 31,  
    2024     2025  
    RMB'000     RMB'000  
    (Unaudited)     (Unaudited)  
Operating activities     (12,094 )     (11,773 )
                 
Investing activities:                
Proceeds from other investment                
Purchase of plant and equipment     (984 )     (4,142 )
Net cash (used in) provided by investing activities     (984 )     (4,142 )
                 
Financing activities:                
Proceeds from exercise of stock options                
Proceeds from issuance of common stock             10,550  
Proceeds from due to related parties     726       -  
Repayment of due to related parties     (554 )     (15 )
Dividends paid to minority shareholders     (490 )     (300 )
Net cash provided by (used in) financing activities     (318 )     10,235  
Net (decrease) increase in cash and cash equivalents                
Cash and cash equivalents, beginning of year     23,708       8,375  
Effect of exchange rate changes on cash and cash equivalents     104       (295 )
Restricted cash                
Cash and cash equivalents, end of the year     10,416       2,400  

 

 


 

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

 

1. INCOME TAXES

 

Origin Agritech and its subsidiary, State Harvest are incorporated in the British Virgin Islands and are exempted from the income tax under the laws of the British Virgin Islands. State Harvest’s subsidiaries and State Harvest’s variable interest entity, Beijing Origin, and its majority-owned subsidiaries (together, the “PRC entities”) were incorporated in the PRC and governed by the PRC laws.

 

The applicable tax rates of the PRC Enterprise Income Tax (“EIT”) was changed from 33% to 25% on January 1, 2008, according to the Corporate Income Tax Law. The preferential tax rate previously enjoyed by the PRC entities is gradually transitioned to the new standard rate of 25% over a five-year transitional period. In addition, article 28 of the new tax law states that the income tax rate of a “high technology” company (high-tech status) will remain at 15%. Currently, the applicable tax rate applying on Origin Group Companies in PRC are mainly at 25%, whilst our Xingjiang operational company enjoys 15% preferential tax rate.

 

The Company’s liability for income taxes includes the liability for unrecognized tax benefits, interest, and penalties related to tax years, which are still subject to review by taxing authorities. Audit periods remain open for review until the statute of limitations has passed. The completion of review or the expiration of the statute of limitations for a given audit period could result in an adjustment to the Company’s liability for income taxes. Any such adjustment could be material to the Company’s results of operations for any given quarterly or annual period based, in part, upon the results of operations for the given period. Until March 31, 2025, the management considered that the Company had no uncertain tax positions affected its consolidated financial position. The Company’s uncertain tax positions are related to tax years that remain subject to examination by the relevant tax authorities and the major one is the China tax authority. The open tax years for examinations in China are 5 years.

 

The current and deferred components of income tax expense are as follows:

 

    March 31,  
    2024     2025  
    RMB'000     RMB'000  
    (Unaudited)     (Unaudited)  
Current income tax expense     39       34  
Deferred income tax benefit     -       -  
                 
Total     39       34  

 

 


 

2. INCOME/(LOSS) PER SHARE

 

The following table sets forth the computation of basic and diluted loss per share for the years indicated:

 

    Six months ended  
    March 31,  
    2024     2025  
    RMB'000     RMB'000  
    (Unaudited)     (Unaudited)  
Numerator:                
Net income (loss) attributable to Origin Agritech Limited     1,355       (25,584 )
                 
Denominator:                
Average common stock outstanding - basic and Diluted     6,321,107       7,198,422  
                 
Basic and Diluted Per Share Data:                
Basic and diluted income (loss) per share attributable to Origin Agritech Limited:     0.21       (3.55 )

 

For the six months ended March 31, 2024, the Company did not have any potential diluted shares. For the six months ended March 31, 2025, the effect of the outstanding options was anti-dilutive.

 

3. RELATED PARTY BALANCES AND TRANSACTIONS (In RMB’000)

 

(1) Related party relationships

 

Name of related parties   Relationship
Beijing Shihui(i)   Being owned by close family members of the Company’s Chairman
Linze Origin Seeds Ltd.(i)   Being owned by close family members of the Company’s Chairman
Henan Yingde Agricultural Ltd.   Being owned by close family members of the Company’s Chairman
Beijing Liantaide Biotechnology Co., Ltd.   Being owned by close family members of the Company’s Chairman
Beijing Agrite Co., Ltd.   Being owned by close family members of the Company’s Chairman
Fifth Division State-owned Assets Management and Operation Co., Ltd   Being the non-controlling interest of Xinjiang Origin
Shareholders   Non-controlling shareholders of Hubei Aoyu, Anhui Aoyu, Xuzhou Aoyu, Shandong Aoruixinong, Henan Aoyu, Shandong Aoruixinong

 

 


 

(1) Due from related parties, net of bad debt allowance

 

    September 30,     March  31,  
    2024     2025  
    RMB'000     RMB'000  
    (Audited)     (Unaudited)  
Linze Origin Seeds Ltd     45       45  
Beijing Shihui     17,060       17,060  
Shareholders (Note i)     2,842       2,227  
Beijing Liantaide (Note ii)     1,186       1,071  
The Company’s Chairman     4,607       4,720  
The Close family of the Company’s Chairman     6       5  
Total     25,746       25,128  
Allowance for doubtful account     17,110       17,110  
Due from related parties, net     8,636       8,018  

 

Note (i): As of March 31, 2025, due from shareholders was RMB2.2 million, which related to the sales of seeds amounting to RMB 726,000- and advances for business use purpose amounting to RMB 1,501,000-.

 

Note (ii): As of March 31, 2025, the balance of due from shareholders were advances for purchases of raw materials amounting to RMB 1,071,000.

 

(2) Due to related parties

 

    September 30,     March 31,  
    2024     2025  
    RMB'000     RMB’000  
    (Audited)     (Unaudited)  
Companies controlled by the Company’s directors (i)     1,680       1,721  
Shareholders (Notes I and ii)     13,118       13,353  
The Company’s Chairman     3,973       3,973  
YingDe(i)     8,258       5,565  
      27,029       24,612  

 

 

 

Note (i): In the ordinary course of business, the Company purchases raw materials from and sells products to related parties, and related parties also provide cash payment to fund the Company’s operations.

 

Note (ii): As of March 31, 2025, the balances due to shareholders were RMB13.4 million, of which in relation to the borrowings in nature amounted to RMB4.9 million, which were unsecured, interest-bearing, and repayable on demand; accrued interests costs amounted to RMB0.65 million, and advances in relation to the Sales of seeds amounted to RMB7.8 million.

 

 


 

(3) Transactions with related parties

 

(a) Sales to

 

    Six months ended  
    March 310,  
    2024     2025  
    RMB’000     RMB’000  
    (Unaudited)     (Unaudited)  
YingDe     2,796        
Shareholders (Note i)     3,790        
      6,586        

 

Note(i): Sales related to shareholders were RMB3.79 million and RMB-nil- for six months ended March 31, 2024 and 2025, respectively, the selling prices of transaction are reference to the market price.

 

(b) Purchase from

 

    Six months ended  
    March 31,  
    2024     2025  
    RMB’000     RMB’000  
    (Unaudited)     (Unaudited)  
YingDe     196        
Liantaide     5,430       2,656  
      5,626       2,656  

 

(c) Borrowing

 

    Six months ended  
    March 31,  
    2024     2025  
    RMB’000     RMB’000  
    (Unaudited)     (Unaudited)  
Shareholders (Note i)     726        
      726        

 

Note (i) : The borrowing interest rates are between 5.8% and 10% and repayable on demand.

 

(d) Interest accrual

 

    Six months ended  
    March 31,  
    2024     2025  
    RMB’000     RMB’000  
    (Unaudited)     (Unaudited)  
NCI     64       74  
      64       74  

 

 


 

4. ADVANCES TO SUPPLIERS

 

    September 30,     March 31,  
    2024     2025  
    RMB’000     RMB’000  
    (Audited)     (Unaudited)  
Prepayments for purchasing seed     61,086       30,673  
Prepayments for purchasing package     175       891  
Deposits for research and development fee     100       1,037  
Others     3,715       2,414  
                 
      65,076       35,015  

 

5. INVENTORIES

 

Total inventories were RMB 9.3 million as of March 31, 2024, down 28% from RMB12.8 million for the period ended September 30, 2024. As of September 30, 2024, inventories were comprised of raw materials of RMB 0.2 million, finished goods of RMB 7 million and work in progress of RMB 5.7 million. As of March 31, 2025, inventories were comprised of raw materials of RMB-nil-, finished goods of RMB 6.9 million and work in progress of RMB 2.4 million.

 

    September 30,     March 31,  
    2024     2025  
    RMB’000     RMB’000  
    (Audited)     (Unaudited)  
Raw materials     160       0  
Finished goods     7,004       6,902  
Work in progress     5,710       2,418  
                 
      12,874       9,320  

 

6. OTHER CURRENT ASSETS

 

    September 30,     March 31,  
    2024     2025  
    RMB’000     RMB’000  
    (Audited)     (Unaudited)  
Advances to staff for business use     642       975  
Deposits for rental     13       0  
Receivables from third parties     3       608  
Others     97       134  
                 
      755       1,717  

 

7. PLANT AND EQUIPMENT, NET

 

During the six months ended March 31, 2024 and 2025, the Group acquired assets at a cost of RMB 662 and RMB 4,757, respectively. None of the assets were disposed of by the Group during the six months ended March 31, 2024 and 2025.

 

No impairment loss was recognized for the six months ended March 31, 2024 and 2025.

 

 


 

8. LONG TERM INVESTMENTS

 

No long term investments were recorded for the period as they had been made by cost impairment in previous year. The Company owns 17.94% equity interest in Jilin Jinong Hi-tech Development Shares Co. Ltd. (“Jinong”) and accounted for the equity investment without readily determinable fair value (previously known as cost method investment) as of September 30, 2024 and March 31, 2025.

 

The Company owns 20% equity interest in Nianfeng Minfu (Beijing) Agricultural Science and Technology Development Co., Ltd. (“Nianfeng Minfu”).

 

The Company recorded an impairment on cost method investment of RMB18.9 million and RMB18.9 million on its equity investment without readily determinable fair value As of September 30, 2024, and March 31, 2025, respectively.

 

    September 30,     March 31,  
    2024     2025  
    RMB     RMB  
    (Audited)     (Unaudited)  
Cost method investment     18,921       18,921  
Impairment on cost method investment     (18,921 )     (18,921 )
             

 

9. BORROWINGS

 

Borrowings consisted of the following:

 

    September 30,     March 31,  
    2024     2025  
    RMB’000     RMB’000  
    (Audited)     (Unaudited)  
Borrowings from Agricultural Bank of China by Xinjiang Origin, due on September 24, 2025 with an annual interest rate of 3.35%, secured by Xinjiang Origin’s properties and land use right     4,950       4,950  

 

10. OTHER PAYABLES AND ACCRUED EXPENSES

 

Other payables and accrued expenses consist of:

 

    September 30,     March 31,  
    2024     2025  
    RMB’000     RMB’000  
    (Audited)     (Unaudited)  
Payables for the purchase of plant and equipment     622       622  
Professional fees payable     4,751       3,030  
Salaries and bonuses payable     12,360       16,476  
Accrued interests expenses     398       506  
Deferred government subsidies     363       363  
Payables for penalty     6,483       6,483  
Payables for third party (Note i)     12,424       5,950  
Borrowings froma third party (Note i)     18,624       16,651  
Stock issuance and options     8,202       10,904  
Others     44       1,281  
      64,271       62,266  

 

Note (i) : Payables and borrowings from third parties were RMB22.6 million and RMB31 million as of March 31, 2025 and September 30, 2025, respectively.

 

11. OTHER LONG-TERM LIABILITY

 

For the six months ended March 31, 2025 and September 30, 2024, the Company received no subsidies from the local PRC government on equipment projects. The non-current portion of such government subsidies were recorded as a long-term liability, which would be amortized over the estimated useful lives in relation to the plant & equipment and land use right.

 

 


 

12. COMMITMENTS AND CONTINGENCIES

 

Legal proceeding

 

On September 26, 2024, Beijing Haidian District Labor Arbitration Commission made a labor arbitration in relation to a labour dispute. The case is the subject of an appeal. The Company recorded a contingent liability of RMB 1.68 million.

 

A third party (“Hebei Zhaoyu Breeding Industry Group Co., Limited”) believed that the corn seed Liyu 16 sold by Hubei Aoyu infringed their variety rights in relation to corn seed Liyu 88. In April 2024, the Intermediate People’s Court of Lanzhou City, Gansu Province made a judgement that our Group subsidiary company “Hubei Aoyu” infringed and was required to pay RMB 3 million compensation monies for their economic losses. The case has been appealed to the Intellectual Property Court of the Supreme People’s Court in August 2024. The Company recorded a contingent liability of RMB 3 million.