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    Peter Butler

    Research Analyst at Glen Hill Investments

    Peter Butler's questions to Origin Agritech (SEED) leadership

    Peter Butler's questions to Origin Agritech (SEED) leadership • Q3 2016

    Question

    Peter Butler of Glen Hill Investments inquired about the CEO's long-term vision for Origin Agritech, how the company intends to finance its aggressive expansion plans, and the potential impact of the ChemChina-Syngenta and Dow-DuPont mergers.

    Answer

    CEO Bill Niebur outlined a vision to build a multinational company from China focused on world-class science, strategic partnerships, and enhancing U.S.-China trade relations. CFO Shashank Aurora added that financing would come from strategic partners, monetizing assets like Germplasm, and traditional debt/equity routes. Niebur also noted that industry mergers are viewed as positive developments that could create new partnership opportunities for Origin.

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    Peter Butler's questions to Origin Agritech (SEED) leadership • Q4 2015

    Question

    Peter Butler of Glen Hill Investments inquired about Origin's outlook for the next year, focusing on potential U.S. technology deals, the possibility of a share repurchase, the impact of industry consolidation like the ChemChina-Syngenta deal, and the company's current valuation relative to a past takeover offer.

    Answer

    Chairman and CEO Gengchen Han stated that he expects significant improvement in China seed sales and a concrete North American biotech licensing agreement within 6-12 months. He clarified that the company seeks ongoing licensing fees, not a one-time sale for buybacks. CFO James Chen highlighted the major turnaround in operating cash flow, from a negative RMB 85.6 million in FY2014 to a positive RMB 52.2 million in FY2015, which he believes significantly increases the company's value. Both executives see the potential ChemChina-Syngenta deal as a positive for opening the Chinese market.

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    Peter Butler's questions to Origin Agritech (SEED) leadership • Q3 2015

    Question

    Peter Butler of Glen Hill Investments asked about the 2016 outlook for the corn seed market, industry inventory levels, and Origin's expected sales and pricing. He also inquired about the consolidation trend in China's agriculture industry, the company's leadership position in GMOs, plans for global partnerships, and strategies for cash flow generation and debt reduction.

    Answer

    CFO James Chen responded that 2014 and 2015 were cyclical bottom years for seed production, which should lead to declining industry inventories and a much better 2016. He confirmed government-driven consolidation is ongoing but slow. Chen reaffirmed Origin's leadership in GMO technology and highlighted a new strategy to pursue global commercialization while awaiting Chinese approval. He projected that inventory adjustments would free up RMB100 million to RMB300 million in working capital to reduce debt, with no major CapEx needed. He also noted the appointment of Geoffery Merszei to the board as a key step for global expansion.

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