(RTTNews) - Beijing, China-based specializer in agri-biotech farming Origin Agritech Ltd (SEED: News ), Tuesday, posted a higher third-quarter profit, on lower expenses and absence of a charge due to changes in the fair value of embedded derivatives. Quarterly revenues were down as a result of fluctuations in the timing of the pricing of seed shipments and the schedule of shipments. Further, the company reaffirmed its revenue forecast for the full-year 2009.

Net income for the third quarter was RMB 74.97 million, US$10.98 million compared with RMB 60.12 million, US$8.77 million for the same period a year ago. On a per share basis, earnings increased to RMB 3.26 or US$0.48 from RMB 2.62 or US$0.38 last year.

The previous year results reflects a charge due to changes in the fair value of embedded derivatives of RMB 2.75 million or US$401 thousand.

Total revenues decreased 2.76% to RMB 477.17 million, or US$69.84 million, from RMB 490.71 million, or US$71.54 million, generated for the third quarter last year.

Third-quarter selling and marketing expenses decreased 28.18% to RMB 12.08 million, or US$1.77 million, from RMB 16.82 million, or US$2.45 million, for the same period last year, on lower transportation costs. Total operating expenses reduced to RMB 32.61 million, or US$4.77 million, from RMB 45.71 million, or US$6.66 million, in 2008.

Revenue for the latest quarter excludes RMB 53.69 million, or US$7.86 million, in Deferred Revenue, carried as a liability on the balance sheet, which should be recognized in the fourth quarter pending a price confirmation, the company said.
For the nine months ended June 30, net loss was RMB 25.8 million, US$3.78 million compared with net income of RMB 14.98 million, US$2.18 million for the same period in 2008. Earnings per share for the period increased to RMB 1.12 per share, US$0.16 per share from RMB 0.65 per share, US$0.10 per share a year ago.

Excluding non-recurring charges related to convertible notes, net income was US$3.98 million, or US$0.17 per share, compared with a net income of US$0.7 million, or US$0.03 per share, in the same period a year ago.

Nine-month revenues were RMB 534.66 million, US$78.26 million, an increase of 3.09% from RMB 518.63 million, US$75.61 million, for the year-ago period, on stronger product demand and pricing in the revenue recognized in the third quarter across all product categories.

Based on its current outlook, and existing and anticipated business conditions, Origin reiterates the revenue guidance for fiscal 2009 in the range of RMB 560 million to RMB 580 million.

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