The sale brings approximately US$15.0 million to support working capital, R&D, new corn varieties, and market expansion, while the five-year lease-back maintains supply stability

BEIJING, Oct. 01, 2026 (GLOBE NEWSWIRE) -- Origin Agritech Limited (NASDAQ:SEED) ("Origin" or the "Company"), a leading Chinese agricultural technology company, today announced that its indirect subsidiary, Beijing Origin Agriculture Limited ("Beijing Origin"), has entered into an equity transfer agreement (the "Agreement") to sell its 70.5184% equity interest in Xinjiang Originbo Seed Limited ("Xinjiang Originbo"), the Company's principal corn seed production and processing base (the "Base"), to Hunan Xindaxin Limited ("Hunan Xindaxin") for RMB 108 million (approximately US$15.0 million). Beijing Origin has also signed a five-year lease for all the buildings, machinery, equipment, and other assets comprising the Base, running from October 1, 2026, to September 30, 2031. The lease-back preserves the Company's core business operations: seed production and sales at the Base continue to be recorded by Beijing Origin; overall management of the Base remains stable; and operating personnel are unchanged, except for core finance and risk control roles.

Origin decided to sell the Base to optimize its asset structure: the Company replaces ownership of a capital-intensive facility with a lease, and the capital tied up in the facility becomes RMB 108 million of scheduled proceeds. The Base sits in one of China's most important corn seed production regions and re-emerged as one of China's top-tier seed processing plants after its 2025 upgrade, with fully automated lines covering dehusking, drying, threshing, cleaning, precision sorting, coating, and packaging. It has processed Origin's own hybrids and provided seed production services to third parties. Under the lease, Origin retains use of the lines and the team that runs them for RMB 4.0 million per year. The Company intends to apply the proceeds to working capital, research and development (R&D), the development and purchase of new corn varieties, and market expansion, following its August 2026 opening of the Southwest R&D Center in Guizhou and its acquisition of exclusive nationwide commercialization rights to the machine-harvest corn hybrid Zhongdan 6202.

"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," said Weibin Yan, Chief Executive Officer of Origin Agritech. "As I begin my third year as CEO, we are leading the Company into the 'Standing Up' stage of our multi-year strategic plan, and this transaction paves the way through this critical period."

Transaction Terms

Under the Agreement, dated September 8, 2026, the transfer price of RMB 108 million was determined with reference to a valuation report issued by Xinjiang Woshi Asset Appraisal Firm (General Partnership) with a valuation benchmark date of June 30, 2026. Hunan Xindaxin will pay the full purchase price in four installments: RMB 18 million by December 31, 2026, and RMB 30 million by each of February 28, April 30, and June 30, 2027. RMB 11.39 million that Beijing Origin owed to Hunan Xindaxin at signing has been applied against the first installment, leaving RMB 6.61 million of that installment payable in cash. In total, RMB 96.61 million (approximately US$13.4 million) is payable in cash through June 30, 2027. Beijing Origin retains legal title to the equity interest until the full price has been paid.

Lease Terms

Under the Seed Production Base Asset Lease Agreement, signed on September 30, 2026, Beijing Origin leases from Xinjiang Originbo all 506 asset items comprising the Base: 70 buildings and structures, including the dehusking, drying, threshing, and cleaning workshops, silos, warehouses, drying yards, and power facilities; 367 items of machinery and equipment, including the dehusking, drying, threshing, and cleaning production lines; 49 electronic devices; 18 vehicles and other transportation equipment; and two other items. The term is five years, from October 1, 2026, to September 30, 2031. Annual rent is RMB 4.0 million (approximately US$0.6 million) and covers only the use of the assets; Beijing Origin bears utilities, labor, maintenance consumables, and routine maintenance, while repairs arising from natural aging of the assets are for Xinjiang Originbo's account. Beijing Origin may renew by written application at least 30 days before expiry and holds a right of first refusal on renewal on equal terms.

Operational Continuity

The lease-back of the Base does not affect the Company's core business operations. The Base's fully automated processing line continues to process Origin's seed, and seed production and sales revenue generated at the Base continue to be recorded by Beijing Origin. Overall management of the Base remains stable. Apart from core finance and risk control personnel appointed by Hunan Xindaxin under the Agreement, operational personnel at the Base remain unchanged. The five-year term secures Origin's use of the Base through September 2031.

Related-Party Transactions and Approval

Mr. Yan, who is also the legal representative of Beijing Origin, holds approximately 9.75% of the equity of Hunan Xindaxin, which appoints the directors and senior management of Xinjiang Originbo under the Agreement. The equity transfer and the lease are therefore related-party transactions. The Audit Committee of Origin's Board of Directors, composed entirely of independent directors, reviewed and approved both agreements, and Mr. Yan recused himself from the Board's deliberations and vote. The Company furnished these agreements to the U.S. Securities and Exchange Commission (the "SEC") as exhibits to a Form 6-K report yesterday.

About Origin Agritech Limited

Origin Agritech Limited, founded in 1997 and headquartered at the Origin R&D Center in Songzhuang, Tongzhou, Beijing, is a leading Chinese agricultural technology company. In crop seed biotechnology, Origin Agritech's phytase corn was the first transgenic corn to receive a Biosafety Certificate from China's Ministry of Agriculture. Over the years, Origin has established a robust biotechnology seed pipeline, including products with glyphosate tolerance and Bt (pest resistance) traits. For further information, please visit the Company's website at www.originagritech.com. The Company also maintains an X account to update investors on Company and industry developments, available at https://x.com/origin_agritech.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding the payment of the transfer price and the completion and registration of the equity transfer, the continuity of operations and personnel at the Base, the performance and renewal of the lease, the Company's intended use of proceeds, and the accounting treatment and financial effect of the transactions. Words such as "expect," "anticipate," "intend," "plan," "believe," "seek," "will," "would," "target," and similar expressions identify forward-looking statements. These statements involve known and unknown risks and uncertainties -- including the risk that Hunan Xindaxin does not pay the transfer price when due, the risk that the lease is terminated early or is not renewed on acceptable terms or at all upon its expiry on September 30, 2031, delays in the registration of the equity transfer, disruption of the Company's operations at the Base, competitive variety introductions, pricing pressure in the Chinese seed market, regulatory and agricultural policy developments in China, currency fluctuation, and the Company's ability to fund and execute the plans described above -- which may cause actual results to differ materially from those expressed or implied. Forward-looking statements are not guarantees of future performance. Origin Agritech undertakes no obligation to update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise, except as required by securities and other applicable laws.

For more information, please contact:

Origin Agritech Limited Contact:

Kate Lang (Mandarin/English)

Director of Investor Relations

Phone: +86 186-1839-3368

Email: bing.lang@originseed.com.cn

Investor Relations Contact:

Matthew Abenante, IRC

President

Strategic Investor Relations LLC

Tel: 347-947-2093

Email: matthew@strategic-ir.com