Origin Agritech revenue drops 31.9% as deep cost cuts trim first-half loss

Origin Agritech (NASDAQ:SEED) reported a 31.9% decline in revenue for the first half of fiscal 2026, reflecting a deliberate structural transition within its commercial seed portfolio, though aggressive corporate cost-saving initiatives allowed the company to significantly narrow its net loss.

The Beijing-based agricultural biotechnology firm reported total revenue of RMB49.2 million for the six months ended March 31, 2026, down from the RMB72.2 million posted during the same comparative period in the prior fiscal year.

Management attributed the revenue reduction to a strategic optimization of its commercial product lines, shifting resources away from low-margin legacy products toward next-generation crop traits.

Despite the top-line contraction, Origin Agritech maintained structural stability across its pricing networks, reporting a stable gross profit margin of 11.2%, practically unchanged from the prior year first half.

The primary driver of improvement on the bottom line was a sweeping reduction in corporate overhead.

Total operating expenses fell 43.9% to RMB18.4 million, down from RMB32.8 million a year earlier, fueled by a comprehensive restructuring of the company's internal sales divisions and localized administrative streams.

Consequently, the first-half net loss narrowed by 44% to RMB 14.4 million, compared to a net loss of RMB 25.7 million in the first half of fiscal 2025.

Operationally, the firm advanced its biotechnology positioning in the domestic crop market.

Origin finalized a precision gene-editing nuclease patent license with Shunfeng BioTech, pairing the technology with its proprietary Hi3 induction platform to accelerate stacked-trait hybrid development.