{"success":true,"data":{"pressRelease":{"id":"157802","rtpr_id":"nGNEc1XXcm-20261001","ticker":"SEED","exchange":"NASDAQ","all_tickers":["SEED"],"title":"Origin Agritech Strengthens Liquidity by Selling Its Xinjiang Seed Subsidiary and Leasing Back the Production Base","author":"Globe Newswire","published_at":"2026-10-01T11:00:00.437Z","article_body":"The sale brings approximately US$15.0 million to support working capital,\nR&D, new corn varieties, and market expansion, while the five-year lease-back\nmaintains supply stability\n\nBEIJING, Oct. 01, 2026 (GLOBE NEWSWIRE) -- Origin Agritech Limited (NASDAQ:\nSEED) (\"Origin\" or the \"Company\"), a leading Chinese agricultural technology\ncompany, today announced that its indirect subsidiary, Beijing Origin\nAgriculture Limited (\"Beijing Origin\"), has entered into an equity transfer\nagreement (the \"Agreement\") to sell its 70.5184% equity interest in Xinjiang\nOriginbo Seed Limited (\"Xinjiang Originbo\"), the Company's principal corn seed\nproduction and processing base (the \"Base\"), to Hunan Xindaxin Limited (\"Hunan\nXindaxin\") for RMB 108 million (approximately US$15.0 million). Beijing Origin\nhas also signed a five-year lease for all the buildings, machinery, equipment,\nand other assets comprising the Base, running from October 1, 2026, to\nSeptember 30, 2031. The lease-back preserves the Company's core business\noperations: seed production and sales at the Base continue to be recorded by\nBeijing Origin; overall management of the Base remains stable; and operating\npersonnel are unchanged, except for core finance and risk control roles.\n\nOrigin decided to sell the Base to optimize its asset structure: the Company\nreplaces ownership of a capital-intensive facility with a lease, and the\ncapital tied up in the facility becomes RMB 108 million of scheduled proceeds.\nThe Base sits in one of China's most important corn seed production regions\nand re-emerged as one of China's top-tier seed processing plants after its\n2025 upgrade, with fully automated lines covering dehusking, drying,\nthreshing, cleaning, precision sorting, coating, and packaging. It has\nprocessed Origin's own hybrids and provided seed production services to third\nparties. Under the lease, Origin retains use of the lines and the team that\nruns them for RMB 4.0 million per year. The Company intends to apply the\nproceeds to working capital, research and development (R&D), the development\nand purchase of new corn varieties, and market expansion, following its August\n2026 opening of the Southwest R&D Center in Guizhou and its acquisition of\nexclusive nationwide commercialization rights to the machine-harvest corn\nhybrid Zhongdan 6202.\n\n\"The sale substantially improves the Company's liquidity and lets the team\nfocus on the recovery of sales of our new variety portfolio, the expansion of\nour sales and service infrastructure, and our R&D programs, while the\nlease-back keeps our seed supply secure and efficient,\" said Weibin Yan, Chief\nExecutive Officer of Origin Agritech. \"As I begin my third year as CEO, we are\nleading the Company into the 'Standing Up' stage of our multi-year strategic\nplan, and this transaction paves the way through this critical period.\"\n\nTransaction Terms\n\nUnder the Agreement, dated September 8, 2026, the transfer price of RMB 108\nmillion was determined with reference to a valuation report issued by Xinjiang\nWoshi Asset Appraisal Firm (General Partnership) with a valuation benchmark\ndate of June 30, 2026. Hunan Xindaxin will pay the full purchase price in four\ninstallments: RMB 18 million by December 31, 2026, and RMB 30 million by each\nof February 28, April 30, and June 30, 2027. RMB 11.39 million that Beijing\nOrigin owed to Hunan Xindaxin at signing has been applied against the first\ninstallment, leaving RMB 6.61 million of that installment payable in cash. In\ntotal, RMB 96.61 million (approximately US$13.4 million) is payable in cash\nthrough June 30, 2027. Beijing Origin retains legal title to the equity\ninterest until the full price has been paid.\n\nLease Terms\n\nUnder the Seed Production Base Asset Lease Agreement, signed on September 30,\n2026, Beijing Origin leases from Xinjiang Originbo all 506 asset items\ncomprising the Base: 70 buildings and structures, including the dehusking,\ndrying, threshing, and cleaning workshops, silos, warehouses, drying yards,\nand power facilities; 367 items of machinery and equipment, including the\ndehusking, drying, threshing, and cleaning production lines; 49 electronic\ndevices; 18 vehicles and other transportation equipment; and two other items.\nThe term is five years, from October 1, 2026, to September 30, 2031. Annual\nrent is RMB 4.0 million (approximately US$0.6 million) and covers only the use\nof the assets; Beijing Origin bears utilities, labor, maintenance consumables,\nand routine maintenance, while repairs arising from natural aging of the\nassets are for Xinjiang Originbo's account. Beijing Origin may renew by\nwritten application at least 30 days before expiry and holds a right of first\nrefusal on renewal on equal terms.\n\nOperational Continuity\n\nThe lease-back of the Base does not affect the Company's core business\noperations. The Base's fully automated processing line continues to process\nOrigin's seed, and seed production and sales revenue generated at the Base\ncontinue to be recorded by Beijing Origin. Overall management of the Base\nremains stable. Apart from core finance and risk control personnel appointed\nby Hunan Xindaxin under the Agreement, operational personnel at the Base\nremain unchanged. The five-year term secures Origin's use of the Base through\nSeptember 2031.\n\nRelated-Party Transactions and Approval\n\nMr. Yan, who is also the legal representative of Beijing Origin, holds\napproximately 9.75% of the equity of Hunan Xindaxin, which appoints the\ndirectors and senior management of Xinjiang Originbo under the Agreement. The\nequity transfer and the lease are therefore related-party transactions. The\nAudit Committee of Origin's Board of Directors, composed entirely of\nindependent directors, reviewed and approved both agreements, and Mr. Yan\nrecused himself from the Board's deliberations and vote. The Company furnished\nthese agreements to the U.S. Securities and Exchange Commission (the \"SEC\") as\nexhibits to a Form 6-K report yesterday.\n\nAbout Origin Agritech Limited\n\nOrigin Agritech Limited, founded in 1997 and headquartered at the Origin R&D\nCenter in Songzhuang, Tongzhou, Beijing, is a leading Chinese agricultural\ntechnology company. In crop seed biotechnology, Origin Agritech's phytase corn\nwas the first transgenic corn to receive a Biosafety Certificate from China's\nMinistry of Agriculture. Over the years, Origin has established a robust\nbiotechnology seed pipeline, including products with glyphosate tolerance and\nBt (pest resistance) traits. For further information, please visit the\nCompany's website at www.originagritech.com. The Company also maintains an X\naccount to update investors on Company and industry developments, available at\nhttps://x.com/origin_agritech.\n\nForward-Looking Statements\n\nThis press release contains forward-looking statements within the meaning of\nthe Private Securities Litigation Reform Act of 1995, including statements\nregarding the payment of the transfer price and the completion and\nregistration of the equity transfer, the continuity of operations and\npersonnel at the Base, the performance and renewal of the lease, the Company's\nintended use of proceeds, and the accounting treatment and financial effect of\nthe transactions. Words such as \"expect,\" \"anticipate,\" \"intend,\" \"plan,\"\n\"believe,\" \"seek,\" \"will,\" \"would,\" \"target,\" and similar expressions identify\nforward-looking statements. These statements involve known and unknown risks\nand uncertainties -- including the risk that Hunan Xindaxin does not pay the\ntransfer price when due, the risk that the lease is terminated early or is not\nrenewed on acceptable terms or at all upon its expiry on September 30, 2031,\ndelays in the registration of the equity transfer, disruption of the Company's\noperations at the Base, competitive variety introductions, pricing pressure in\nthe Chinese seed market, regulatory and agricultural policy developments in\nChina, currency fluctuation, and the Company's ability to fund and execute the\nplans described above -- which may cause actual results to differ materially\nfrom those expressed or implied. Forward-looking statements are not guarantees\nof future performance. Origin Agritech undertakes no obligation to update or\nrevise any forward-looking statement, whether as a result of new information,\nfuture events, or otherwise, except as required by securities and other\napplicable laws.\n\nFor more information, please contact:\n\nOrigin Agritech Limited Contact:\n\nKate Lang (Mandarin/English)\nDirector of Investor Relations\nPhone: +86 186-1839-3368\nEmail: bing.lang@originseed.com.cn\n\nInvestor Relations Contact:\n\nMatthew Abenante, IRC\nPresident\nStrategic Investor Relations LLC\nTel: 347-947-2093\nEmail: matthew@strategic-ir.com","article_body_html":"","raw_payload":{"data":{"id":"nGNEc1XXcm-20261001","title":"Origin Agritech Strengthens Liquidity by Selling Its Xinjiang Seed Subsidiary and Leasing Back the Production Base","author":"Globe Newswire","ticker":"SEED","created":"2026-10-01T11:00:00.437Z","tickers":["SEED"],"exchange":"NASDAQ","article_body":"The sale brings approximately US$15.0 million to support working capital,\nR&D, new corn varieties, and market expansion, while the five-year lease-back\nmaintains supply stability\n\nBEIJING, Oct. 01, 2026 (GLOBE NEWSWIRE) -- Origin Agritech Limited (NASDAQ:\nSEED) (\"Origin\" or the \"Company\"), a leading Chinese agricultural technology\ncompany, today announced that its indirect subsidiary, Beijing Origin\nAgriculture Limited (\"Beijing Origin\"), has entered into an equity transfer\nagreement (the \"Agreement\") to sell its 70.5184% equity interest in Xinjiang\nOriginbo Seed Limited (\"Xinjiang Originbo\"), the Company's principal corn seed\nproduction and processing base (the \"Base\"), to Hunan Xindaxin Limited (\"Hunan\nXindaxin\") for RMB 108 million (approximately US$15.0 million). Beijing Origin\nhas also signed a five-year lease for all the buildings, machinery, equipment,\nand other assets comprising the Base, running from October 1, 2026, to\nSeptember 30, 2031. The lease-back preserves the Company's core business\noperations: seed production and sales at the Base continue to be recorded by\nBeijing Origin; overall management of the Base remains stable; and operating\npersonnel are unchanged, except for core finance and risk control roles.\n\nOrigin decided to sell the Base to optimize its asset structure: the Company\nreplaces ownership of a capital-intensive facility with a lease, and the\ncapital tied up in the facility becomes RMB 108 million of scheduled proceeds.\nThe Base sits in one of China's most important corn seed production regions\nand re-emerged as one of China's top-tier seed processing plants after its\n2025 upgrade, with fully automated lines covering dehusking, drying,\nthreshing, cleaning, precision sorting, coating, and packaging. It has\nprocessed Origin's own hybrids and provided seed production services to third\nparties. Under the lease, Origin retains use of the lines and the team that\nruns them for RMB 4.0 million per year. The Company intends to apply the\nproceeds to working capital, research and development (R&D), the development\nand purchase of new corn varieties, and market expansion, following its August\n2026 opening of the Southwest R&D Center in Guizhou and its acquisition of\nexclusive nationwide commercialization rights to the machine-harvest corn\nhybrid Zhongdan 6202.\n\n\"The sale substantially improves the Company's liquidity and lets the team\nfocus on the recovery of sales of our new variety portfolio, the expansion of\nour sales and service infrastructure, and our R&D programs, while the\nlease-back keeps our seed supply secure and efficient,\" said Weibin Yan, Chief\nExecutive Officer of Origin Agritech. \"As I begin my third year as CEO, we are\nleading the Company into the 'Standing Up' stage of our multi-year strategic\nplan, and this transaction paves the way through this critical period.\"\n\nTransaction Terms\n\nUnder the Agreement, dated September 8, 2026, the transfer price of RMB 108\nmillion was determined with reference to a valuation report issued by Xinjiang\nWoshi Asset Appraisal Firm (General Partnership) with a valuation benchmark\ndate of June 30, 2026. Hunan Xindaxin will pay the full purchase price in four\ninstallments: RMB 18 million by December 31, 2026, and RMB 30 million by each\nof February 28, April 30, and June 30, 2027. RMB 11.39 million that Beijing\nOrigin owed to Hunan Xindaxin at signing has been applied against the first\ninstallment, leaving RMB 6.61 million of that installment payable in cash. In\ntotal, RMB 96.61 million (approximately US$13.4 million) is payable in cash\nthrough June 30, 2027. Beijing Origin retains legal title to the equity\ninterest until the full price has been paid.\n\nLease Terms\n\nUnder the Seed Production Base Asset Lease Agreement, signed on September 30,\n2026, Beijing Origin leases from Xinjiang Originbo all 506 asset items\ncomprising the Base: 70 buildings and structures, including the dehusking,\ndrying, threshing, and cleaning workshops, silos, warehouses, drying yards,\nand power facilities; 367 items of machinery and equipment, including the\ndehusking, drying, threshing, and cleaning production lines; 49 electronic\ndevices; 18 vehicles and other transportation equipment; and two other items.\nThe term is five years, from October 1, 2026, to September 30, 2031. Annual\nrent is RMB 4.0 million (approximately US$0.6 million) and covers only the use\nof the assets; Beijing Origin bears utilities, labor, maintenance consumables,\nand routine maintenance, while repairs arising from natural aging of the\nassets are for Xinjiang Originbo's account. Beijing Origin may renew by\nwritten application at least 30 days before expiry and holds a right of first\nrefusal on renewal on equal terms.\n\nOperational Continuity\n\nThe lease-back of the Base does not affect the Company's core business\noperations. The Base's fully automated processing line continues to process\nOrigin's seed, and seed production and sales revenue generated at the Base\ncontinue to be recorded by Beijing Origin. Overall management of the Base\nremains stable. Apart from core finance and risk control personnel appointed\nby Hunan Xindaxin under the Agreement, operational personnel at the Base\nremain unchanged. The five-year term secures Origin's use of the Base through\nSeptember 2031.\n\nRelated-Party Transactions and Approval\n\nMr. Yan, who is also the legal representative of Beijing Origin, holds\napproximately 9.75% of the equity of Hunan Xindaxin, which appoints the\ndirectors and senior management of Xinjiang Originbo under the Agreement. The\nequity transfer and the lease are therefore related-party transactions. The\nAudit Committee of Origin's Board of Directors, composed entirely of\nindependent directors, reviewed and approved both agreements, and Mr. Yan\nrecused himself from the Board's deliberations and vote. The Company furnished\nthese agreements to the U.S. Securities and Exchange Commission (the \"SEC\") as\nexhibits to a Form 6-K report yesterday.\n\nAbout Origin Agritech Limited\n\nOrigin Agritech Limited, founded in 1997 and headquartered at the Origin R&D\nCenter in Songzhuang, Tongzhou, Beijing, is a leading Chinese agricultural\ntechnology company. In crop seed biotechnology, Origin Agritech's phytase corn\nwas the first transgenic corn to receive a Biosafety Certificate from China's\nMinistry of Agriculture. Over the years, Origin has established a robust\nbiotechnology seed pipeline, including products with glyphosate tolerance and\nBt (pest resistance) traits. For further information, please visit the\nCompany's website at www.originagritech.com. The Company also maintains an X\naccount to update investors on Company and industry developments, available at\nhttps://x.com/origin_agritech.\n\nForward-Looking Statements\n\nThis press release contains forward-looking statements within the meaning of\nthe Private Securities Litigation Reform Act of 1995, including statements\nregarding the payment of the transfer price and the completion and\nregistration of the equity transfer, the continuity of operations and\npersonnel at the Base, the performance and renewal of the lease, the Company's\nintended use of proceeds, and the accounting treatment and financial effect of\nthe transactions. Words such as \"expect,\" \"anticipate,\" \"intend,\" \"plan,\"\n\"believe,\" \"seek,\" \"will,\" \"would,\" \"target,\" and similar expressions identify\nforward-looking statements. These statements involve known and unknown risks\nand uncertainties -- including the risk that Hunan Xindaxin does not pay the\ntransfer price when due, the risk that the lease is terminated early or is not\nrenewed on acceptable terms or at all upon its expiry on September 30, 2031,\ndelays in the registration of the equity transfer, disruption of the Company's\noperations at the Base, competitive variety introductions, pricing pressure in\nthe Chinese seed market, regulatory and agricultural policy developments in\nChina, currency fluctuation, and the Company's ability to fund and execute the\nplans described above -- which may cause actual results to differ materially\nfrom those expressed or implied. Forward-looking statements are not guarantees\nof future performance. Origin Agritech undertakes no obligation to update or\nrevise any forward-looking statement, whether as a result of new information,\nfuture events, or otherwise, except as required by securities and other\napplicable laws.\n\nFor more information, please contact:\n\nOrigin Agritech Limited Contact:\n\nKate Lang (Mandarin/English)\nDirector of Investor Relations\nPhone: +86 186-1839-3368\nEmail: bing.lang@originseed.com.cn\n\nInvestor Relations Contact:\n\nMatthew Abenante, IRC\nPresident\nStrategic Investor Relations LLC\nTel: 347-947-2093\nEmail: matthew@strategic-ir.com"},"type":"article","timestamp":"2026-10-01T11:00:00.638988115Z","server_sent_at_ms":1790852400638},"received_at":"2026-10-01T11:00:00.689Z","source_url":null},"analysis":{"id":"146481","press_release_id":"157802","analysis_json":{"industry":{"label":"Agricultural Products & Services","sector":"Consumer Staples"},"redFlags":["related-party transaction: CEO holds ~9.75% of the buyer Hunan Xindaxin","sale of principal production facility replaces asset ownership with a lease","installment-based payment exposes Origin to buyer default risk through mid-2027","liquidity raise may signal working capital pressure"],"eventType":"m_and_a","narrative":"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.\n\nBeijing 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.\n\nPayment 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.\n\nThe 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.","sentiment":"mixed","agentHooks":{"shouldPost":true,"suggestedAngle":"Micro-cap ag-biotech sells core production base to a CEO-connected buyer for $15M to shore up liquidity — cash flow boost vs related-party governance risk."},"keyFigures":{"dealValueUsd":15000000,"customDimensions":{"installments":"RMB 18M by Dec 31 2026; RMB 30M each by Feb 28, Apr 30, Jun 30 2027","annual_rent_rmb":4000000,"equity_sold_pct":"70.5184%","cash_payable_usd":13400000,"lease_term_years":5,"transfer_price_rmb":108000000,"related_party_offset_rmb":11390000}},"quotedText":"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","namedEntities":{"people":[{"name":"Weibin Yan","role":"CEO and legal representative of Beijing Origin; ~9.75% equity holder in Hunan Xindaxin"},{"name":"Matthew Abenante, IRC","role":"President, Strategic Investor Relations LLC (IR contact)"},{"name":"Kate Lang","role":"Director of Investor Relations, Origin Agritech"}],"products":["Zhongdan 6202","phytase corn"],"companies":[{"name":"Origin Agritech Limited","ticker":"SEED","relationship":"filer"},{"name":"Beijing Origin Agriculture Limited","relationship":"subsidiary (seller)"},{"name":"Xinjiang Originbo Seed Limited","relationship":"target / divested subsidiary"},{"name":"Hunan Xindaxin Limited","relationship":"acquirer (related party)"},{"name":"Xinjiang Woshi Asset Appraisal Firm","relationship":"valuation firm"}],"dollarAmounts":[{"amount":"US$15.0 million","context":"approximate proceeds from sale of Xinjiang Originbo equity"},{"amount":"RMB 108 million","context":"transfer price for 70.5184% equity interest"},{"amount":"RMB 4.0 million","context":"annual lease rent for the production base"},{"amount":"RMB 96.61 million","context":"total cash payable through June 30, 2027 (approximately US$13.4 million)"},{"amount":"RMB 11.39 million","context":"Beijing Origin debt to Hunan Xindaxin applied against first installment"}]},"materialImpact":{"score":3,"reasoning":"Sale of the company's principal corn seed production base for ~US$15.0M materially boosts liquidity, but the buyer (Hunan Xindaxin) is a related party (CEO holds ~9.75% of its equity), and a 5-year lease-back leaves Origin dependent on the divested asset."},"tickerRelevance":{"others":[],"primary":"SEED"},"globalImportance":25,"audienceRelevance":20,"eventTypeSecondary":["operations_update"],"importanceComponents":{"tickerTier":"micro-cap","eventGravity":"asset sale with liquidity impact","retailFavoriteBoost":false,"relatedPartyGovernance":true}},"event_type":"m_and_a","event_type_secondary":["operations_update"],"sentiment":"mixed","material_impact_score":3,"narrative":"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.\n\nBeijing 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.\n\nPayment 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.\n\nThe 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.","key_figures":{"dealValueUsd":15000000,"customDimensions":{"installments":"RMB 18M by Dec 31 2026; RMB 30M each by Feb 28, Apr 30, Jun 30 2027","annual_rent_rmb":4000000,"equity_sold_pct":"70.5184%","cash_payable_usd":13400000,"lease_term_years":5,"transfer_price_rmb":108000000,"related_party_offset_rmb":11390000}},"named_entities":{"people":[{"name":"Weibin Yan","role":"CEO and legal representative of Beijing Origin; ~9.75% equity holder in Hunan Xindaxin"},{"name":"Matthew Abenante, IRC","role":"President, Strategic Investor Relations LLC (IR contact)"},{"name":"Kate Lang","role":"Director of Investor Relations, Origin Agritech"}],"products":["Zhongdan 6202","phytase corn"],"companies":[{"name":"Origin Agritech Limited","ticker":"SEED","relationship":"filer"},{"name":"Beijing Origin Agriculture Limited","relationship":"subsidiary (seller)"},{"name":"Xinjiang Originbo Seed Limited","relationship":"target / divested subsidiary"},{"name":"Hunan Xindaxin Limited","relationship":"acquirer (related party)"},{"name":"Xinjiang Woshi Asset Appraisal Firm","relationship":"valuation firm"}],"dollarAmounts":[{"amount":"US$15.0 million","context":"approximate proceeds from sale of Xinjiang Originbo equity"},{"amount":"RMB 108 million","context":"transfer price for 70.5184% equity interest"},{"amount":"RMB 4.0 million","context":"annual lease rent for the production base"},{"amount":"RMB 96.61 million","context":"total cash payable through June 30, 2027 (approximately US$13.4 million)"},{"amount":"RMB 11.39 million","context":"Beijing Origin debt to Hunan Xindaxin applied against first installment"}]},"model_name":"glm-5.3-flashx","prompt_hash":"sha256:727b4b9429a443af","schema_hash":"sha256:05005c02d9cffac9","created_at":"2026-10-01T11:00:20.231Z","global_importance":25,"audience_relevance":20,"importance_components":{"tickerTier":"micro-cap","eventGravity":"asset sale with liquidity impact","retailFavoriteBoost":false,"relatedPartyGovernance":true}},"durationMs":19506,"modelName":"glm-5.3-flashx"}}