Beijing, China
September 11, 2016

• 3Q16 Total Net Revenue Increases 12.1% YoY
• 3Q16 Non-GAAP Operating Loss Narrows YoY
• Achieves Positive Operating Cash Flow in 3Q16

Origin Agritech Limited (NASDAQ: SEED, "Origin" or the "Company"), a technology-focused supplier of crop seeds in China today announced its unaudited financial results for the third quarter of fiscal 2016 ended June 30, 2016 ("GAAP").

Mr. Shashank Aurora, Chief Financial Officer of Origin, commented, "The sum of recognized revenue and deferred revenue as of June 30, 2016 was RMB473.9 million, or US$71.5 million, an increase of 6.0% compared to RMB447.1 million for the same period one year ago, driven by ongoing development and strong interest in our corn seed products and biotechnologies.  The majority of deferred revenue will be recognized in the fourth fiscal quarter of 2016. Excluding one-time items, we narrowed both our loss from operations and net loss compared to last quarter as well as to the prior year.  In our Seed Production & Distribution segment, we managed our inventory downward in the quarter as we improved our forecasting capabilities and better aligned seed production with demand. This helped generate healthy cash flow from operations, freed up working capital and reduced our debt. We continue to optimize our cost structure based on the exciting market opportunities that lie ahead."

Dr. William S. Niebur, Chief Executive Officer of Origin, commented, "We are making steady progress with our efforts to become a more globally focused seed and biotechnology company that bases its development in China and provides solutions to farmers around the world.  We have recently added several important executive team members, including a new Chief Financial Officer and a new Chief Technology Officer who will drive the evolution of our current business model to enable expansion globally.  Additionally, as a part of our strategic partnership approach, we announced a collaboration and commercial licensing agreement with a major multinational seed company in the third fiscal quarter to develop new GM crops for farmers in China. This agreement has great potential to modernize China's agricultural system and enhance food security, both major priorities for the government. We have a healthy pipeline of new seed products and traits for future release and are committed to pursuing new domestic and international partnership opportunities to maximize revenue and profit growth in the years ahead."

Third Quarter Fiscal 2016 Financial Results

Total net revenue for the third fiscal quarter of 2016 increased by 12.1% to RMB82.6 million (US$12.5 million) from RMB73.7 million in the prior year period. The increase in seed revenue was primarily driven by increased sales of corn seed hybrid Liyu-16 and was also partially impacted by lower discard sales from the rice business.  While the total planted corn acres in China are expected to decline by 10% in the calendar year of 2016, which may affect the Company's full year volume and revenue, the Company has been able to maintain a consistent market share in the corn seed business in China.

The following table shows the Company's year-over-year change in net revenue for each segment:

Net revenue from the Seed Production and Distribution segment increased 11.7% to RMB82.3 million (US$12.4 million), compared to RMB73.7 million in the prior year period.

Net revenue from the Biotech and Product Development segment was RMB0.3 million in the third fiscal quarter of 2016, while there was no such segment recognized in the prior year period. The revenue from this segment represents fees for services from the Company's collaborators.

Deferred revenues increased 4.8% to RMB391.3 million (US$59.0 million) as of June 30, 2016, compared with RMB373.4 million as of June 30, 2015. Deferred revenues mainly reflect the value of Origin's crop seeds after: a) 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 are offered to the Company's customers. It is expected that the majority of these deferred revenues will be recorded on the income statement during the fourth fiscal quarter of 2016.  Final sales will be known when seed returns are completed in fourth fiscal quarter.

The sum of recognized revenue and deferred revenue as of June 30, 2016 was RMB473.9 million (US$71.5 million), an increase of 6.0% compared to RMB447.1 million for the same period in fiscal year 2015.  The sum of recognized revenue for the first nine months ended June 30, 2016 and the deferred revenue as of June 30, 2016 was RMB485.3 million (US$73.2 million), an increase of 4.0% compared to RMB466.5 million for the same period in fiscal year 2015.

Total operating expenses in the third quarter of fiscal year 2016 were RMB28.9 million (US$4.4 million), up 54.5% from RMB18.7 million in the same quarter of fiscal year 2015. The increase was primarily due to the timing difference associated with the recognition of marketing expenses and a one-time stock compensation expense. Excluding certain one-time expenses, total operating expenses for the nine months in fiscal year 2016 were RMB74.8million, which is similar to the RMB73.8 million amount for the first nine months in fiscal year 2015.

Loss from operations for the third quarter of fiscal year 2016 was RMB15.1 million (US$2.3 million) compare to RMB8.4 million in the same quarter of fiscal year 2015. Excluding the impact of one-time items, including stock-based compensation expense and Other Income, the operating loss decreased to RMB10.2 million from RMB13.4 million in the same quarter of fiscal year 2015.

Net loss attributable to the Company was RMB18.2 million (US$2.7 million), or net loss per diluted share of RMB0.8 (US$0.12) in the third quarter of fiscal year 2016, compared to a net loss of RMB11.9 million, or net loss per diluted share of RMB0.52 in the same quarter of fiscal year 2015. Excluding the impact of the aforementioned one-time items, the net loss attributable to the Company decreased to RMB13.3 million, or net loss per diluted share of RMB0.58, from RMB16.9 million, or net loss per diluted share of RMB0.74 in the same quarter of fiscal year 2015, respectively.

Balance Sheet

As of June 30, 2016, the Company had cash and cash equivalents of RMB25.9 million (US$3.9 million). Shareholders' equity attributable to the Company was RMB168.7 million (US$25.4 million).

Total borrowing was RMB256.9 million (US$38.7 million), including short-term borrowings of RMB210.0 million (US$31.7 million) and long-term borrowing of RMB46.9 million (US$7million), representing a decrease of RMB17.5 million compared to the same period last year. Short-term borrowing was mainly for working capital, while long-term borrowing was mainly used in relation to the corn seed production facilities in Xinjiang Origin and the Company's working capital. The decrease in debt was mostly due to the positive cash flow generated for fiscal year 2015, primarily in the fourth fiscal quarter as well as for the full 2015 fiscal year. The Company also generated positive operating cash flow in its third fiscal quarter in 2016.

Advances from customers were RMB47.3 million (US$7.1 million) as of June 30, 2016. These advances represent cash receipts for orders in the upcoming selling season.

Inventory decreased by RMB90.6 million as of June 30, 2016 compared to the same period in the previous fiscal year, mainly due to improved forecast demand efforts by management and from lower production.

About Origin

Origin Agritech Limited, founded in 1997 and headquartered in Zhong-Guan-Cun (ZGC) Life Science Park in Beijing, is China's leading agricultural biotechnology company, specializing in crop seed breeding and genetic improvement, seed production, processing, distribution, and related technical services. Leading the development of crop seed biotechnologies, Origin Agritech's phytase corn was the first transgenic corn to receive the Bio-Safety Certificate from China's Ministry of Agriculture. Over the years, Origin has established a robust biotechnology seed pipeline including products with glyphosate tolerance and pest resistance (Bt) traits. Origin operates production centers, processing centers and breeding stations nationwide with sales centers located in key crop-planting regions. Product lines are vertically integrated for corn, rice and canola seeds. For further information, please visit the Company's website at: http://www.originseed.com.cn or http://www.originseed.com.cn/en/.

Non-GAAP Disclosure

We also present "non-GAAP financial measures" as defined by applicable U.S. securities regulations, which are more thoroughly explained and reconciled below to the most comparable measures reported under GAAP. You are reminded that the presentation of these non-GAAP financial measures should not be viewed in isolation or as a substitute for our financial results prepared in accordance with GAAP. We believe that both management and investors may benefit from referring to these non-GAAP financial measures in assessing our performance and when planning and forecasting future periods. These non-GAAP financial measures also facilitate management's internal comparisons to the Company's historical performance and liquidity. We believe these non-GAAP financial measures are useful to investors in allowing for greater transparency with respect to supplemental information used by management in its financial and operational decision making. These non-GAAP financial measures have limitations, however, because they do not include all items of income and expenses that impact the Company's operations. You are also reminded that these non-GAAP financial measures are not uniformly defined by all companies, including those in the agricultural biotech and seed production industry, and may not be comparable to similarly titled measures presented by other companies.

We have presented the non-GAAP operating expenses, non-GAAP operating loss, non-GAAP net loss attributable to the Company and related EPS calculations to exclude a one-time expense for stock based compensation and the reversal of a tax liability that has expired. We believe that these non-GAAP financial presentations provide meaningful supplementary information about our performance by excluding certain expenses that may not be indicative of our operating performance. Management uses selected non-GAAP measures to gain better understanding of the Company's comparative operating performance from period to period. Management believes that the non-GAAP information, when read in conjunction with the Company's GAAP information provides useful information to investors by offering them the ability to make more meaningful period to period comparison of the Company's operating results and allows them to better identify trends in the Company's underlying business and performance.

Forward Looking Statement

This release contains forward-looking statements. All forward-looking statements included in this release are based on information available to us on the date hereof. These statements involve known and unknown risks, uncertainties and other factors, which may cause our actual results to differ materially from those implied by the forward-looking statements. In some cases, you can identify forward-looking statements by terminology such as "may," "will," "should," "could," "expects," "plans," "anticipates," "believes," "estimates," "predicts," "potential," "targets," "goals," "projects," "continue," or variations of such words, similar expressions, or the negative of these terms or other comparable terminology. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements. Therefore, actual results may differ materially and adversely from those expressed in any forward-looking statements. Neither we nor any other person can assume responsibility for the accuracy and completeness of forward-looking statements. Important factors that may cause actual results to differ from expectations include, but are not limited to, those risk factors discussed in Origin's filings with the SEC including its annual report on Form 20-F to be filed. We undertake no obligation to revise or update publicly any forward-looking statements for any reasons.

Website: http://www.originagritech.com

Published: September 14, 2016