Established in 1997 and headquartered in Beijing, China, Origin Agritech Limited is a Chinese firm operating in two primary areas: agricultural biotechnology and an e-commerce platform. Its biotechnology segment focuses on the genetic enhancement and breeding of crop seeds, encompassing the development, production, and distribution of hybrid crop varieties and associated seed technologies. The firm also manages an e-commerce platform that caters to farmers across China, offering a diverse array of goods via online and mobile channels. This selection includes agricultural seeds like corn, rice, and vegetables, along with essential farming inputs such as fertilizers and agricultural chemicals. Additionally, the platform provides food, household items, and other consumer products. Origin Agritech maintains collaboration agreements with esteemed institutions such as the Chinese Academy of Agricultural Sciences, the National Maize Improvement Center, China Agricultural University, and Zhejiang University.
Origin Agritech Strengthens Liquidity by Selling Its Xinjiang Seed Subsidiary and Leasing Back the Production Base
Origin Agritech is selling its 70.5184% stake in Xinjiang Originbo Seed, its principal corn seed production base, to Hunan Xindaxin for RMB 108 million (about US$15.0 million), with proceeds earmarked for working capital, R&D, new corn varieties, and market expansion.
Beijing Origin simultaneously signed a five-year lease-back covering all 506 asset items of the base at RMB 4.0 million per year, preserving operations and staffing through September 2031.
Payment comes in four installments through June 30, 2027, with only RMB 96.61 million (~US$13.4 million) in cash after a RMB 11.39 million related-party debt offset, and Beijing Origin retains title until full payment.
The buyer is a related party — CEO Weibin Yan holds ~9.75% of Hunan Xindaxin — though the transactions were approved by the independent Audit Committee with Yan recused.