Document And Entity Information
Document And Entity Information | 12 Months Ended |
Sep. 30, 2016USD ($)shares | |
Document Information [Line Items] | |
Document Type | 20-F |
Amendment Flag | false |
Document Period End Date | Sep. 30, 2016 |
Document Fiscal Year Focus | 2,016 |
Document Fiscal Period Focus | FY |
Entity Registrant Name | Origin Agritech LTD |
Entity Central Index Key | 1,321,851 |
Current Fiscal Year End Date | --09-30 |
Entity Well-known Seasoned Issuer | No |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Filer Category | Non-accelerated Filer |
Entity Public Float | $ | $ 0 |
Trading Symbol | SEED |
Entity Common Stock, Shares Outstanding | shares | 22,873,541 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS ¥ in Thousands, $ in Thousands | Sep. 30, 2016CNY (¥) | Sep. 30, 2016USD ($) | Sep. 30, 2015CNY (¥) |
Current Assets | |||
Cash and cash equivalents | ¥ 54,509 | $ 8,163 | ¥ 66,025 |
Restricted cash (note 13) | 21,181 | 3,172 | 0 |
Accounts receivable, less allowance for doubtful amounts of RMB4,845 and RMB5,087 as of September 30, 2015 and 2016, respectively (note 4) | 491 | 74 | 2,051 |
Advances to suppliers (note 5) | 7,363 | 1,103 | 10,484 |
Advances to growers | 21,672 | 3,245 | 20,796 |
Inventories (note 6) | 368,086 | 55,121 | 439,562 |
Income tax recoverable | 48 | 7 | 48 |
Other current assets (note 7) | 4,753 | 711 | 4,793 |
Total current assets | 478,103 | 71,596 | 543,759 |
Restricted cash (note 13) | 0 | 0 | 20,280 |
Land use rights, net (note 8) | 30,740 | 4,603 | 31,722 |
Plant and equipment, net (note 9) | 313,749 | 46,984 | 324,905 |
Long-term investments (note 10) | 18,721 | 2,803 | 18,721 |
Goodwill (note 2) | 11,973 | 1,793 | 11,973 |
Acquired intangible assets, net (note 11) | 24,930 | 3,733 | 31,390 |
Other assets (note 12) | 2,410 | 362 | 3,079 |
Total assets(including amounts of the consolidated VIEs without recourse to the Company of RMB975,507 and RMB871,397 as of September 30, 2015 and 2016, respectively) | 880,626 | 131,874 | 985,829 |
LIABILITIES AND EQUITY | |||
Short-term borrowings (note 13) | 190,000 | 28,453 | 220,000 |
Current portion of long-term borrowings (note 13) | 27,057 | 4,052 | 24,000 |
Accounts payable | 4,374 | 655 | 4,389 |
Due to growers | 19,926 | 2,984 | 17,337 |
Due to related parties (note 3) | 103,905 | 15,560 | 42,284 |
Advances from customers | 208,844 | 31,274 | 264,547 |
Deferred revenues | 7,008 | 1,049 | 11,248 |
Income tax payable (note 18) | 0 | 0 | 37 |
Other payables and accrued expenses (note 14) | 53,388 | 7,995 | 50,298 |
Total current liabilities | 614,502 | 92,022 | 634,140 |
Long-term borrowings (note 13) | 20,000 | 2,995 | 40,972 |
Other long-term liability (note 15) | 27,507 | 4,119 | 19,939 |
Total liabilities(including amounts of the consolidated VIEs without recourse to the Company of RMB678,740 and RMB641,420 as of September 30, 2015 and 2016, respectively) | 662,009 | 99,136 | 695,051 |
Commitments and contingencies (note 21) | |||
Shareholders’ equity: | |||
Preferred stock (no par value; 1,000,000 shares authorized, none issued) | 0 | 0 | 0 |
Common stock (no par value; 60,000,000 shares authorized, 24,091,163 and 24,151,163 shares issued as of September 30, 2015 and 2016; 22,813,541 and 22,873,541 shares outstanding as of September 30, 2015 and 2016, respectively) | 0 | 0 | 0 |
Additional paid-in capital | 411,296 | 61,591 | 402,500 |
Accumulated deficit | (182,386) | (27,312) | (116,808) |
Treasury stock at cost (1,277,622 and 1,277,622 shares as of September 30, 2015 and 2016, respectively) (note 17) | (37,445) | (5,607) | (37,445) |
Accumulated other comprehensive loss | (11,177) | (1,674) | (7,053) |
Total Origin Agritech Limited shareholders’ equity | 180,288 | 26,998 | 241,194 |
Non-controlling interests | 38,329 | 5,740 | 49,584 |
Total equity | 218,617 | 32,738 | 290,778 |
Total liabilities and equity | ¥ 880,626 | $ 131,874 | ¥ 985,829 |
CONSOLIDATED BALANCE SHEETS _Pa
CONSOLIDATED BALANCE SHEETS [Parenthetical] ¥ in Thousands, $ in Thousands | Sep. 30, 2016CNY (¥)shares | Sep. 30, 2016USD ($)$ / sharesshares | Sep. 30, 2015CNY (¥)shares | Sep. 30, 2015$ / shares |
Allowance for doubtful accounts receivable (in RMB) | ¥ | ¥ 5,087 | ¥ 4,845 | ||
Preferred Stock, No Par Value | $ / shares | $ 0 | $ 0 | ||
Preferred stock, shares authorized | 1,000,000 | 1,000,000 | 1,000,000 | |
Preferred stock, shares issued | 0 | 0 | 0 | |
Common Stock, No Par Value | $ / shares | $ 0 | $ 0 | ||
Common stock, shares authorized | 60,000,000 | 60,000,000 | 60,000,000 | |
Common stock, shares issued | 24,151,163 | 24,151,163 | 24,091,163 | |
Common stock, shares outstanding | 22,873,541 | 22,873,541 | 22,813,541 | |
Treasury stock, shares | 1,277,622 | 1,277,622 | 1,277,622 | |
Total assets | ¥ 880,626 | $ 131,874 | ¥ 985,829 | |
Liabilities | 662,009 | $ 99,136 | 695,051 | |
Variable Interest Entity, Not Primary Beneficiary [Member] | ||||
Total assets | ¥ | 871,397 | 975,507 | ||
Liabilities | ¥ | ¥ 641,420 | ¥ 678,740 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Sep. 30, 2016CNY (¥)¥ / sharesshares | Sep. 30, 2016USD ($)$ / sharesshares | Sep. 30, 2015CNY (¥)¥ / sharesshares | Sep. 30, 2014CNY (¥)¥ / sharesshares | |
Revenues, including sales to a related party of RMB nil, RMB40,586 and RMB102,234 for the years ended September 30, 2014, 2015 and 2016, respectively (note 3) | ¥ 335,251 | $ 50,204 | ¥ 376,553 | ¥ 415,177 |
Cost of revenues | (259,253) | (38,823) | (264,039) | (301,148) |
Gross profit | 75,998 | 11,381 | 112,514 | 114,029 |
Operating expenses | ||||
Selling and marketing | (38,079) | (5,702) | (39,987) | (58,972) |
General and administrative | (62,159) | (9,308) | (40,684) | (46,428) |
Research and development | (44,032) | (6,594) | (48,741) | (40,377) |
Other income, net | 6,964 | 1,042 | 18,238 | 7,269 |
Total operating expenses, net | (137,306) | (20,562) | (111,174) | (138,508) |
Income(loss) from operations | (61,308) | (9,181) | 1,340 | (24,479) |
Interest expense | (14,251) | (2,134) | (18,634) | (19,743) |
Share of net loss of equity investments | 0 | 0 | 0 | (776) |
Loss on disposal of an equity method investment | 0 | 0 | 0 | (1,498) |
Loss on disposal of a subsidiary | 0 | 0 | 0 | (2,623) |
Interest income | 162 | 24 | 775 | 596 |
Loss before income taxes | (75,397) | (11,291) | (16,519) | (48,523) |
Income tax (expense) benefits(note 18) | ||||
Current | (1,436) | (215) | (1,295) | (677) |
Deferred | 0 | 0 | 0 | 0 |
Reversal of contingent tax liability | 0 | 0 | 0 | 39,060 |
Income tax (expense) benefits | (1,436) | (215) | (1,295) | 38,383 |
Net loss | (76,833) | (11,506) | (17,814) | (10,140) |
Less: Net loss attributable to non-controlling interests | (11,255) | (1,686) | (4,006) | (613) |
Net loss attributable to Origin Agritech Limited | (65,578) | (9,820) | (13,808) | (9,527) |
Other comprehensive loss | ||||
Net loss | (76,833) | (11,506) | (17,814) | (10,140) |
Foreign currency translation difference | (4,124) | (617) | (2,607) | (56) |
Comprehensive loss | (80,957) | (12,123) | (20,421) | (10,196) |
Less: Comprehensive loss attributable to non-controlling interests | (11,255) | (1,685) | (4,006) | (613) |
Comprehensive loss attributable to Origin Agritech Limited | ¥ (69,702) | $ (10,438) | ¥ (16,415) | ¥ (9,583) |
Net loss attributable to Origin Agritech Limited per share - basic (note 19) (in dollars per share) | (per share) | ¥ (2.87) | $ (0.43) | ¥ (0.61) | ¥ (0.42) |
Net loss attributable to Origin Agritech Limited per share - diluted (note 19) (in dollars per share) | (per share) | ¥ (2.87) | $ (0.43) | ¥ (0.61) | ¥ (0.42) |
Shares used in calculating basic net loss per share (in shares) | 22,858,541 | 22,858,541 | 22,794,791 | 22,743,853 |
Shares used in calculating diluted net loss per share (in shares) | 22,858,541 | 22,858,541 | 22,794,791 | 22,743,853 |
CONSOLIDATED STATEMENTS OF INC5
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (Parenthetical) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Related Party Transaction, Amounts Of Transaction | ¥ 102,234 | ¥ 40,586 | ¥ 0 |
CONSOLIDATED STATEMENTS OF EQUI
CONSOLIDATED STATEMENTS OF EQUITY ¥ in Thousands, $ in Thousands | CNY (¥) | USD ($) | Common Stock [Member]CNY (¥)shares | Common Stock [Member]USD ($)shares | Additional Paid-in Capital [Member]CNY (¥) | Additional Paid-in Capital [Member]USD ($) | Retained Earnings (Deficit) [Member]CNY (¥) | Retained Earnings (Deficit) [Member]USD ($) | Accumulated Other Comprehensive Income (Loss) [Member]CNY (¥) | Accumulated Other Comprehensive Income (Loss) [Member]USD ($) | Treasury Stock [Member]CNY (¥) | Treasury Stock [Member]USD ($) | Noncontrolling Interest [Member]CNY (¥) | Noncontrolling Interest [Member]USD ($) |
Balance at Sep. 30, 2013 | ¥ 320,245 | ¥ 0 | ¥ 399,564 | ¥ (93,473) | ¥ (4,390) | ¥ (35,659) | ¥ 54,203 | |||||||
Balance (in shares) at Sep. 30, 2013 | shares | 22,905,926 | 22,905,926 | ||||||||||||
Net loss for the year | (10,140) | ¥ 0 | 0 | (9,527) | 0 | 0 | (613) | |||||||
Share repurchased | (1,786) | ¥ 0 | 0 | 0 | 0 | (1,786) | 0 | |||||||
Share repurchased (in shares) | shares | (167,385) | (167,385) | ||||||||||||
Share-based compensation expense | 1,324 | ¥ 0 | 1,324 | 0 | 0 | 0 | 0 | |||||||
Translation adjustments | (56) | 0 | 0 | 0 | (56) | 0 | 0 | |||||||
Balance at Sep. 30, 2014 | 309,587 | ¥ 0 | 400,888 | (103,000) | (4,446) | (37,445) | 53,590 | |||||||
Balance (in shares) at Sep. 30, 2014 | shares | 22,738,541 | 22,738,541 | ||||||||||||
Net loss for the year | (17,814) | ¥ 0 | 0 | (13,808) | 0 | 0 | (4,006) | |||||||
Issuance of restricted share (in shares) | shares | 75,000 | 75,000 | ||||||||||||
Share-based compensation expense | 1,612 | ¥ 0 | 1,612 | 0 | 0 | 0 | 0 | |||||||
Translation adjustments | (2,607) | 0 | 0 | 0 | (2,607) | 0 | 0 | |||||||
Balance at Sep. 30, 2015 | 290,778 | ¥ 0 | 402,500 | (116,808) | (7,053) | (37,445) | 49,584 | |||||||
Balance (in shares) at Sep. 30, 2015 | shares | 22,813,541 | 22,813,541 | ||||||||||||
Net loss for the year | (76,833) | $ (11,506) | ¥ 0 | 0 | (65,578) | 0 | 0 | (11,255) | ||||||
Issuance of restricted share (in shares) | shares | 60,000 | 60,000 | ||||||||||||
Share-based compensation expense | 8,796 | ¥ 0 | 8,796 | 0 | 0 | 0 | 0 | |||||||
Translation adjustments | (4,124) | (617) | 0 | 0 | 0 | (4,124) | 0 | 0 | ||||||
Balance at Sep. 30, 2016 | ¥ 218,617 | $ 32,738 | ¥ 0 | $ 0 | ¥ 411,296 | $ 61,591 | ¥ (182,386) | $ (27,312) | ¥ (11,177) | $ (1,674) | ¥ (37,445) | $ (5,607) | ¥ 38,329 | $ 5,740 |
Balance (in shares) at Sep. 30, 2016 | shares | 22,873,541 | 22,873,541 |
CONSOLIDATED STATEMENTS OF EQU7
CONSOLIDATED STATEMENTS OF EQUITY [Parenthetical] | Sep. 30, 2016 |
Foreign Currency Exchange Rate, Translation in US$ | 6.6778 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Sep. 30, 2016CNY (¥) | Sep. 30, 2016USD ($) | Sep. 30, 2015CNY (¥) | Sep. 30, 2014CNY (¥) | |
Operating activities: | ||||
Net loss attributable to Origin Agritech Limited | ¥ (65,578) | $ (9,820) | ¥ (13,808) | ¥ (9,527) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||||
Depreciation and amortization | 31,222 | 4,675 | 30,547 | 28,524 |
Loss on disposal of plant and equipment | 257 | 38 | 152 | 943 |
Loss on disposal of a subsidiary | 0 | 0 | 0 | 2,623 |
Loss on disposal of an equity method investment | 0 | 0 | 0 | 1,498 |
Allowance for doubtful account | 242 | 36 | 0 | 15 |
Provision for inventories | 20,502 | 3,070 | 10,965 | 21,984 |
Non-controlling interests | (11,255) | (1,685) | (4,006) | (613) |
Share-based compensation expense | 8,796 | 1,317 | 1,612 | 1,324 |
Share of net loss of equity method investments | 0 | 0 | 0 | 776 |
Changes in operating assets and liabilities: | ||||
Accounts receivable | 1,318 | 197 | (1,030) | 914 |
Due from related parties | 0 | 0 | 2,698 | 702 |
Advances to growers | (876) | (131) | (37) | 37,714 |
Advances to suppliers | 3,121 | 467 | 7,267 | (7,983) |
Inventories | 50,974 | 7,633 | 65,841 | (67,541) |
Income tax recoverable | 0 | 0 | 0 | 1,114 |
Other current assets | 40 | 6 | (425) | 1,824 |
Other assets | 436 | 65 | 930 | 7,247 |
Accounts payable | (15) | (2) | (136) | (65) |
Due to growers | 2,589 | 388 | (606) | (19,933) |
Due to related parties | 58,291 | 8,730 | 30,573 | 10,181 |
Advances from customers | (55,703) | (8,342) | (60,098) | (46,926) |
Income tax payable | (37) | (6) | 37 | (39,060) |
Deferred revenues | (4,240) | (635) | (7,781) | (3,040) |
Other long-term liabilities | 7,568 | 1,134 | 290 | (1,380) |
Other payables and accrued expenses | 253 | 39 | (10,796) | (6,954) |
Net cash provided by (used in) operating activities | 47,905 | 7,174 | 52,189 | (85,639) |
Investing activities: | ||||
Proceeds from disposal of equity investment | 0 | 0 | 0 | 900 |
Dividends received | 0 | 0 | 0 | 3,000 |
Proceeds from disposal of a subsidiary, net of cash disposed | 0 | 0 | 0 | 11,980 |
Deposits from proposed disposal of commercial seed business (note 25) | 10,000 | 1,497 | 0 | 0 |
Purchase of plant and equipment | (15,714) | (2,353) | (14,747) | (10,502) |
Proceeds from disposal of plant and equipment | 483 | 72 | 172 | 6,174 |
Purchase of land use rights | 0 | 0 | (900) | (673) |
Purchase of intangible assets | (1,250) | (187) | (4,884) | (11,440) |
Net cash used in investing activities | (6,481) | (971) | (20,359) | (561) |
Financing activities: | ||||
Restricted cash | (901) | (135) | (4,610) | (1,320) |
Proceeds from short-term borrowings | 195,000 | 29,201 | 235,000 | 305,000 |
Repayment of short-term borrowings | (225,000) | (33,694) | (240,000) | (285,000) |
Proceeds from long-term borrowings | 6,085 | 911 | 33,949 | 0 |
Repayment of long-term borrowings | (24,000) | (3,593) | (33,805) | (16,500) |
Repurchase of common stock | 0 | 0 | 0 | (1,786) |
Net cash provided by (used in) financing activities | (48,816) | (7,310) | (9,466) | 394 |
Net increase (decrease) in cash and cash equivalents | (7,392) | (1,107) | 22,364 | (85,806) |
Cash and cash equivalents, beginning of year | 66,025 | 9,888 | 46,268 | 131,978 |
Effect of exchange rate changes on cash and cash equivalents | (4,124) | (618) | (2,607) | 96 |
Cash and cash equivalents, end of year | 54,509 | 8,163 | 66,025 | 46,268 |
Supplemental disclosures of cash flow information: | ||||
Refund of income taxes | 0 | 0 | 0 | 586 |
Income taxes paid | 1,436 | 215 | 1,258 | 148 |
Interest paid, net of interest capitalized | 14,251 | 2,134 | 18,649 | 19,743 |
Supplemental disclosure of non-cash investing activities: | ||||
Proceeds from disposal of equity investment | ¥ 0 | $ 0 | ¥ 0 | ¥ 900 |
ORGANIZATION AND PRINCIPAL ACTI
ORGANIZATION AND PRINCIPAL ACTIVITIES | 12 Months Ended |
Sep. 30, 2016 | |
Organization, Consolidation and Presentation Of Financial Statements [Abstract] | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | 1. ORGANIZATION AND PRINCIPAL ACTIVITIES Origin Agritech Limited (“Agritech”), incorporated under the laws of the British Virgin Islands, and its subsidiaries and variable interest entities (together, the “Company”) are principally engaged in hybrid crop seed development, production and distribution. Date of Place of Percentage Incorporation Incorporation of Principal Name or Establishment or Establishment Ownership Activity Subsidiaries: State Harvest Holdings October 6, 2004 British Virgin 100% Investment Beijing Origin State Harvest December 1, 2004 People’s Republic 100% Hybrid seed Origin Agritech USA LLC August 12, 2016 United States 100% Hybrid seed Variable interest entity: Beijing Origin Seed Limited (note (i)) (“Beijing Origin”) December 26, 1997 PRC - Hybrid crop seed Subsidiaries held by Beijing Origin: Henan Origin Cotton Technology Development Limited (note (i)) March 2, 2001 PRC 92.04% Hybrid crop seed Changchun Origin Seed Technology Development Limited (note (i)) April 29, 2003 PRC 99.83% Hybrid crop seed Linze Origin Seed Limited November 18, 2008 PRC 100% Hybrid crop seed Xinjiang Originbo Seed Company Limited (note (i)) (“Xinjiang Origin”) July 13, 2011 PRC 51% Hybrid crop seed Denong Zhengcheng Seed Limited (“Denong”) June 21, 2000 PRC 98.58% Hybrid seed Note (i): Beijing Origin Seed Limited, Henan Origin Cotton Technology Development Limited, Changchun Origin Seed Technology Development Limited, Linze Origin Seed Limited and Xinjiang Originbo Seed Company Limited are collectively referred to as “Beijing Origin”. Reorganization of State Harvest prior to the share exchange transaction with Chardan China Acquisition Corp. (“Chardan”) On December 1, 2004, State Harvest established BioTech, a wholly-owned foreign enterprise (“WOFE”) under the laws of the PRC with an operating period of 20 Under PRC law, foreign entities are not currently permitted to own more than 49% of a seed production company. In order to address those restrictions, State Harvest conducts substantially all of its business through contractual agreements with its variable interest entity (“VIE”), Beijing Origin. These agreements are summarized in the following paragraphs. Stock Consignment Agreements As discussed above in “Foreign Ownership Restrictions,” under Chinese law, foreign ownership of businesses engaged in the breeding of new varieties, development, production, marketing, distribution and sale of hybrid food crop seeds is limited to 49 49 State Harvest has been assigned 97.96 Technical Service Agreements Beijing Origin entered into Technical Service Agreements with BioTech dated December 25, 2004. Under these agreements, BioTech shall provide, with its own technical research resource and team, technical services for the production and distribution of agricultural seeds during the period of the agreements. In return, Beijing Origin is required to pay BioTech service fee calculated according to the weight of corn, rice and cotton seeds sold by the Beijing Origin. Through the contractual agreements described above, State Harvest is deemed the sole beneficiary of Beijing Origin resulting in Beijing Origin being deemed a subsidiary of State Harvest under the requirements of Financial Accounting Standards Board (“FASB”) Accounting Standard Codification (“ASC”) 810-10-05. The agreements described above provided for effective control of Beijing Origin to be transferred to State Harvest at December 25, 2004. Neither State Harvest nor BioTech had any operating activity prior to entering into the consignment agreements with Beijing Origin. In substance, State Harvest has substantially all the same shareholders of Beijing Origin. This transaction has been accounted for on a basis similar to reorganization between entities under common control. Accordingly, State Harvest’s consolidated financial statements are prepared by including the consolidated financial statements of Beijing Origin through December 24, 2004, and subsequently the Company’s consolidated financial statements include the financial statements of State Harvest, its majority owned subsidiary and Beijing Origin through the date of the Share Exchange Transaction. Risks in relation to the VIE structure Three of our PRC operating subsidiaries are controlled subsidiaries through stock consignment agreements rather than by direct ownership of shares, the terms of which may have to be enforced, which would require us to incur extra costs, create uncertainty as to ownership of the operating businesses involved and risk the possible loss of rights. There is the risk, however, that a consigning shareholder will not fulfill its obligations under the stock consignment agreement. In that event, we may need to resort to the PRC courts to have our rights under the applicable agreement enforced. Such enforcement will cause us to incur legal expenses. In addition, while a case is pending there will be uncertainty regarding our rights as to the three PRC operating subsidiaries involved. In addition, a PRC court may decide not to enforce the agreements in whole or in part. To the extent these agreements are neither observed nor enforced as intended, the PRC operating subsidiaries will not be controlled by us as intended, which will affect our enterprise value and restrict our ability to obtain the income and other rights of ownership associated with the consigned stock. It may also prevent the consolidation of our financial statements with the PRC operating subsidiaries, which would reduce the reported earnings of the consolidated companies. The uncertainty of ownership may also adversely affect the market value of our ordinary shares. Whether or not a stock consignment agreement is terminated depends on the consensus of our Board and the consignees. Any such termination could result in a possible loss of certain rights or assets held by us without receiving fair value in return. The stock consignment agreements relating to our control of the stock of our PRC operating subsidiaries may be terminated after three years upon mutual agreement between us and the consignees. Holding this amount of stock will allow these officers to control or greatly influence the selection of directors and matters submitted to a vote of our shareholders, including voting to terminate the stock consignment agreements. There are corporate protections in place designed to protect our interests, such as an independent Board of Directors, an audit committee comprised of independent directors that must approve insider transactions, a code of conduct requiring fair dealing with the Company, and the British Virgin Islands statutory provision that a disposition of more than 50 Risks in relation to the VIE structure September 30, 2015 2016 2016 RMB RMB US$ ASSETS Current Assets Cash and cash equivalents 65,138 53,855 8,065 Restricted cash - 21,181 3,172 Accounts receivable 2,051 491 74 Advances to suppliers 20,796 21,672 3,245 Advances to growers 10,483 6,885 1,031 Inventories 439,518 368,042 55,114 Income tax recoverable 49 48 7 Other current assets 4,292 4,730 708 Total current assets 542,327 476,904 71,416 Restricted cash 20,280 - - Land use rights, net 31,722 30,740 4,603 Plant and equipment, net 324,812 313,688 46,975 Equity investments 18,721 18,721 2,803 Goodwill 11,973 11,973 1,793 Acquired intangible assets, net 22,593 16,961 2,540 Other assets 3,079 2,410 362 Total assets 975,507 871,397 130,492 LIABILITIES Current liabilities Short-term borrowings 220,000 190,000 28,452 Current portion of long-term borrowings 24,000 7,023 1,052 Accounts payable 4,386 4,371 655 Due to growers 17,337 19,926 2,984 Due to related parties 40,757 103,905 15,560 Advance from customers 264,168 208,464 31,217 Deferred revenues 11,248 7,008 1,049 Income tax payable 37 - - Other payables and accrued expenses 49,845 53,216 7,969 Total current liabilities 631,778 593,913 88,938 Long-term borrowings 27,023 20,000 2,995 Other long-term liability 19,939 27,507 4,120 Total liabilities 678,740 641,420 96,053 As of September 30, 2015 and 2016, consolidated assets of RMB243,469 and RMB247,231, respectively, are collateral for the VIE’s obligations. These consolidated assets consisted of land use right of RMB 18,519 17,867 197,627 192,928 27,323 36,436 The consolidated revenues of the Company has been generated from the VIE and its subsidiaries for the year ended September 30, 2014, 2015 and 2016 are 99.93 99.92 99.86 98.95 98.98 Significant Transactions On September 26, 2016, we entered into an Master Transaction Agreement, the with Beijing Shihui Agricultural Development Co., Ltd. ( “Beijing Shihui” or the “Buyer”, a related party being controlled by close family members of the Company’s Chairman |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Sep. 30, 2016 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies [Text Block] | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The consolidated financial statements of the Company are prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”); include the assets, liabilities, revenues, expenses and cash flows of all subsidiaries and variable interest entities. Intercompany balances, transactions and cash flows are eliminated on consolidation. The consolidated financial statements are presented in Renminbi. The translation of Renminbi amounts into United States dollar amounts has been made for the convenience of the reader and has been made at the exchange rate quoted by the middle rate by the State Administration of Foreign Exchange in China on September 30, 2016 of RMB 6.6778 The preparation of the consolidated financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Estimates are adjusted to reflect actual experience when necessary. Significant accounting estimates reflected in the Company’s consolidated financial statements include inventory valuation, account receivable valuation, useful lives of plant and equipment and acquired intangible assets, the valuation allowance for deferred income tax assets, valuation of goodwill, valuation of long-lived assets and share-based compensation expense. Actual results could differ from those estimates. Cash and cash equivalents consist of cash on hand, cash accounts, interest bearing savings accounts, time certificates of deposit and debt securities with a maturities of three months or less when purchased. Inventories are stated at the lower of cost, determined by weighted-average method, or market. Work-in-progress and finished goods inventories consist of raw materials, direct labor and overhead associated with the manufacturing process. The Company periodically performs an analysis of inventory to determine obsolete or slow-moving inventory and determine if its cost exceeds the estimated market value. Write down of potentially obsolete or slow-moving inventory are recorded based on management’s analysis of inventory levels. Land use rights are recorded at cost less accumulated amortization. Amortization is provided over the term of the land use right agreements on a straight-line basis for the beneficial period. Plant and equipment are recorded at cost less accumulated depreciation and amortization. Maintenance and repairs are charged to expense as incurred. Plant and building 20-40 years Machinery and equipment 10-15 years Furniture and office equipment 5-8 years Motor vehicles 5-10 years Leasehold improvements Shorter of the useful lives or the lease term The Company constructs certain of its facilities. In addition to costs under construction contracts, external costs directly related to the construction of such facilities, including duty and tariff, and equipment installation and shipping costs, are capitalized. Depreciation is recorded at the time assets are placed in service. Leases are classified at the inception date as either a capital lease or an operating lease. For the lessee, a lease is a capital lease if any of the following conditions exist: a) ownership is transferred to the lessee by the end of the lease term, b) there is a bargain purchase option, c) the lease term is at least 75% of the property’s estimated remaining economic life or d) the present value of the minimum lease payments at the beginning of the lease term is 90% or more of the fair value of the leased property to the lessor at the inception date. Goodwill represents the excess of aggregate purchase price over the fair value of net assets acquired in a business combination. Goodwill is not amortized, but instead tested for impairment at least annually or more frequently if certain circumstances indicate a possible impairment may exist. The Company adopted FASB ASC 350-10 and performs its annual impairment review of goodwill on September 30 of each year. Management evaluates the recoverability of goodwill using a two-step impairment test approach at the reporting unit level, which is determined to be the enterprise level. In the first step, the fair value of the reporting unit is compared to its carrying value including goodwill. Second, if the carrying amount of the reporting unit exceeds its fair value, an impairment loss is recognized for any excess of the carrying amount of the goodwill over the implied fair value of the goodwill. The implied fair value of goodwill is determined by allocating the fair value of the reporting unit in a manner similar to a business combination. September 30, 2014 2015 2016 RMB RMB RMB Balance at beginning of year 11,973 11,973 11,973 Additions - - - Written off - - - 11,973 11,973 11,973 Acquired intangible assets primarily consist of purchased technology rights and distribution network and are stated at cost less accumulated amortization. Amortization is calculated on a straight-line basis over the estimated useful lives of these assets and recorded in operating expenses. Technology rights for licensed seeds 3-20 years Distribution network 6-14 years Trademark Indefinite Trademarks, which have indefinite lives are not amortized but are reviewed for impairment at least annually, at year end date, or earlier upon the occurrence of certain triggering events. Equity investments Equity method investment is accounted for using the equity method whereby they are initially recognized at cost and thereafter, their carrying amount are adjusted for the Company’s share of the post-acquisition change in the net assets of equity method investments less impairment losses, if any. The dividend received was accounted for as a reduction in equity investments. Cost method investment is stated at cost less impairment loss, if any. The Company reviews the carrying value of long-lived assets to be held and used, including other intangible assets subject to amortization, when events and circumstances warrants such a review. The carrying value of a long-lived asset is considered impaired when the anticipated undiscounted cash flow from such asset is separately identifiable and is less than its carrying value. In that event, a loss is recognized based on the amount by which the carrying value exceeds the fair market value of the long-lived asset and intangible assets. Fair market value is determined primarily using the anticipated cash flows discounted at a rate commensurate with the risk involved. Losses on long-lived assets and intangible assets to be disposed are determined in a similar manner, except that fair market values are reduced for the cost to dispose. Revenue recognition The Company derives its revenues primarily from the sale of various branded conventional seeds and branded seeds with biotechnology traits. Revenue is recognized when pervasive evidence of an arrangement exists, products have been delivered, the price is fixed or determinable, collectability is reasonably assured and the right of return has expired. The Company generally determines the final selling price after a period the goods are delivered to the customers. Accordingly, the Company defers revenues recognition until the selling price has been finalized with the customers. The estimated amounts of revenues billed in excess of revenues recognized are recorded as deferred revenues. A government subsidy is not recognized until there is reasonable assurance that: (a) the enterprise will comply with the conditions attached to the grant; and (b) the grant will be received. When the Company received the government subsidies but the conditions attached to the grants have not been fulfilled, such government subsidies are deferred and recorded under other payables and accrued expenses, and other long-term liability. The reclassification of short-term or long-term liabilities is depended on the management’s expectation of when the conditions attached to the grant can be fulfilled. The Company received several financial supports from various levels of the government. At fiscal years ended 2015 and 2016, the Company received government subsidies of RMB 7,076 10,368 2,764 5,525 4,582 Cost of revenues consists of expenses directly related to sales, including the purchase prices and development costs for seeds and, during the fiscal years ended September 30, 2014, 2015 and 2016, agricultural chemical products, depreciation and amortization, impairment of inventory, shipping and handling costs, salary and compensation, supplies, license fees, and rent. Research and development costs relating to the development of new products and processes, including significant improvements and refinements to existing products, are expensed as incurred. Advertising costs are expensed when incurred and included in selling and marketing expenses. For the years ended September 30, 2014, 2015 and 2016, advertising costs were RMB 15,918 5,655 6,919 Shipping and handling cost The Company includes shipping and handling costs as either cost of goods sold or selling and administrative expenses depending on the nature of the expenses. Shipping and handling costs which relate to transportation of products to customers’ locations is charged to selling and marketing expenses and shipping and handling which relate to the transportation of goods to factories from suppliers and from one factory to another is charged to cost of revenues. For the years ended September 30, 2014, 2015 and 2016, shipping and handling cost included in selling and marketing expenses were RMB 9,561 7,238 8,168 Borrowing costs attributable directly to the acquisition, construction or production of qualifying assets which require a substantial period of time to be ready for their intended use or sale, are capitalized as part of the cost of those assets. Income earned on temporary investments of specific borrowings pending their expenditure on those assets is deducted from borrowing costs capitalized. All other borrowing costs are recognized in interest expenses in the statement of income and comprehensive income in the period in which they are incurred. The Company regularly monitors and assesses the risk of not collecting amounts owed to the Company by customers. This evaluation is based upon a variety of factors including: an analysis of amounts current and past due along with relevant history and facts particular to the customer. Based upon the results of this analysis, the Company records an allowance for doubtful accounts for this risk. Deferred income taxes are recognized for the future tax consequences of temporary differences between the tax bases of assets and liabilities and their reported amounts in the consolidated financial statements, net of operating loss carry forwards and credits. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Current income taxes are provided for in accordance with the laws of the relevant tax authorities. The Company adopted FASB ASC 740-10. The Company’s policy on classification of all interest and penalties related to unrecognized tax benefits, if any, as a component of income tax provisions. The functional currency of the Company excluding Agritech and State Harvest is Renminbi. Monetary assets and liabilities denominated in currencies other than Renminbi are translated into Renminbi at the rates of exchange ruling at the balance sheet date. Transactions in currencies other than Renminbi are converted into Renminbi at the applicable rates of exchange prevailing the transactions occurred. Transaction gains and losses are recognized in the consolidated statements of income and comprehensive income. The functional currency of Agritech and State Harvest are maintained in United State dollars. Assets and liabilities are translated at the exchange rates at the balance sheet date, equity accounts are translated at historical exchange rates and revenues, expenses, gains and losses are translated using the average rate for the period. Translation adjustments are reported as cumulative translation adjustments and are shown as a separate component of other comprehensive (loss)/income. The Company has chosen Renminbi as its reporting currency. Comprehensive income is defined to include all changes in equity except those resulting from investments by owners and distributions to owners. Comprehensive income for the years has been disclosed within the consolidated statements of income and comprehensive income for presentational purpose of the disclosure of comprehensive income attributable to Agritech and the non-controlling interests respectively. Basic income per share is computed by dividing net income by the weighted average number of common shares outstanding during the years. Diluted income per share gives effect to all dilutive potential common shares outstanding during the years. The weighted average number of common shares outstanding is adjusted to include the number of additional common shares that would have been outstanding if the dilutive potential common shares had been issued. In computing the dilutive effect of potential common shares, the average stock price for the period is used in determining the number of treasury shares assumed to be purchased with the proceeds from the exercise of options. The Company adopts FASB ASC 718-10. ASC 718-10 requires that share-based payment transactions with employees, such as share options, be measured based on the grant-date fair value of the equity instrument issued and recognized as compensation expense over the requisite service period, with a corresponding addition to equity. Under this method, compensation cost related to employee share options or similar equity instruments is measured at the grant date based on the fair value of the award and is recognized over the period during which an employee is required to provide service in exchange for the award, which generally is the vesting period. The Company adopted FASB ASC 820-10, and which defines fair value, establishes a framework for measuring fair value in GAAP, and expands disclosures about fair value measurements. ASC 820-10 does not require any new fair value measurements, but provides guidance on how to measure fair value by providing a fair value hierarchy used to classify the source of the information. ASC 820-10 establishes a three-level valuation hierarchy of valuation techniques based on observable and unobservable inputs, which may be used to measure fair value and include the following: Level 1 - Quoted prices in active markets for identical assets or liabilities. Level 2 - Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 - Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Classification within the hierarchy is determined based on the lowest level of input that is significant to the fair value measurement. For the year ended September 30, 2016, the Company recognized licensing, and conversion and testing services as revenue to align with the Company’s strategy to develop these businesses. Conversion and testing services income of RMB286 and RMB303 for the years ended September 30, 2014 and 2015, respectively, have been reclassified from other income to revenue to conform to current year presentations. There was no change to previously reported shareholders’ deficit or net loss. The Company’s consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and liquidation of liabilities during the normal course of operations. The Company incurred net losses of RMB 10,140 17,814 76,833 90,381 136,399 116,808 182,386 On September 26, 2016, the Company entered into an agreement to sell its proprietary China-based commercial corn seed production and distribution business and related assets and the office building in Beijing as further described in note 25. Based on the agreement, the management expects to receive RMB 400,000 As management believes it can secure financial resources to satisfy the Company’s current liabilities and the capital expenditure needs in the next 12 months,our consolidated financial statements do not include any adjustments that might be necessary if we are unable to continue as a going concern. · In May 2014, the FASB issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (Topic 606) The FASB issued ASU No. 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date Further to ASU No. 2014-09 and ASU No. 2015-14, the FASB issued ASU No. 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net), in March 2016, ASU No. 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing, in April 2016, and ASU No. 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients, in May 2016, respectively. The amendments in ASU No. 2016-08 clarify the implementation guidance on principal versus agent considerations, including indicators to assist an entity in determining whether it controls a specified good or service before it is transferred to the customers. ASU No. 2016-10 clarifies guideline related to identifying performance obligations and licensing implementation guidance contained in the new revenue recognition standard. The updates in ASU No. 2016-10 include targeted improvements based on input the FASB received from the Transition Resource Group for Revenue Recognition and other stakeholders. It seeks to proactively address areas in which diversity in practice potentially could arise, as well as to reduce the cost and complexity of applying certain aspects of the guidance both at implementation and on an ongoing basis. ASU No. 2016-12 addresses narrow-scope improvements to the guidance on collectability, non-cash consideration, and completed contracts at transition. Additionally, the amendments in this ASU provide a practical expedient for contract modifications at transition and an accounting policy election related to the presentation of sales taxes and other similar taxes collected from customers. The effective date and transition requirements for ASU No. 2016-08, ASU No. 2016-10 and ASU No. 2016-12 are the same as ASU No. 2014-09. The Company is currently in the process of evaluating the impact of the adoption of ASU No. 2014-09, ASU No. 2016-08, ASU No. 2016-10 and ASU No. 2016-12 on its consolidated financial statements and related disclosures. Recently issued accounting pronouncements · In June 2014, the FASB issued ASU No. 2014-12, CompensationStock Compensation (Topic 718): Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period (a consensus of the FASB Emerging Issues Task Force) · In August 2014, the FASB issued ASU No. 2014-15, Presentation of Financial Statements Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern. This ASU provides U.S. GAAP guidance on management’s responsibility in evaluating whether there is substantial doubt about a company’s ability to continue as a going concern and about related footnote disclosures. Currently, there is no guidance in the U.S. GAAP about management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern or to provide related footnote disclosures. The amendments in this ASU provide such guidance and should reduce diversity in the timing and content of footnote disclosures. The amendments in this ASU require management to assess an entity’s ability to continue as a going concern by incorporating and expanding upon certain principles that are currently in U.S. auditing standards. Specifically, the amendments (1) provide a definition of the term substantial doubt, (2) require an evaluation every reporting period including interim periods, (3) provide principles for considering the mitigating effect of management’s plans, (4) require certain disclosures when substantial doubt is alleviated as a result of consideration of management’s plans, (5) require an express statement and other disclosures when substantial doubt is not alleviated, and (6) require an assessment for a period of one year after the date that the financial statements are issued (or available to be issued). The amendments in this ASU are effective for the annual period ending after December 15, 2016, and for annual periods and interim periods thereafter. Early application is permitted. The Company is evaluating the effects, if any, that the adoption of the amendments in this ASU will have on the disclosure of the consolidated financial statements. · In February 2015, the FASB issued ASU No. 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis Recently issued accounting pronouncements · In June 2015, the FASB issued ASU No. 2015-10, Technical Corrections and Improvements · In July 2015, the FASB issued ASU No. 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory · In November 2015, the FASB issued ASU No. 2015-17, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes. Topic 740, Income Taxes, requires an entity to separate deferred income tax liabilities and assets into current and noncurrent amounts in a classified statement of financial position. Deferred tax liabilities and assets are classified as current or noncurrent based on the classification of the related asset or liability for financial reporting. Deferred tax liabilities and assets that are not related to an asset or liability for financial reporting are classified according to the expected reversal date of the temporary difference. To simplify the presentation of deferred income taxes, the amendments in ASU No. 2015-17 require that deferred income tax liabilities and assets be classified as noncurrent in a classified statement of financial position. For public business entities, the amendments in this update are effective for financial statements issued for annual periods beginning after December 15, 2016, and interim periods within those annual periods. The Company does not expect the adoption of ASU No. 2015-17 to have a material impact on its consolidated financial statements. Recently issued accounting pronouncements · In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. The amendments in this update require all equity investments to be measured at fair value with changes in the fair value recognized through net income (other than those accounted for under equity method of accounting or those that result in consolidation of the investee). The amendments in this update also require an entity to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments. In addition the amendments in this update eliminate the requirement for to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet for public entities. For public business entities, the amendments in ASU No. 2016-01 are effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. Except for the early application guidance discussed in ASU No. 2016-01, early adoption of the amendments in this update is not permitted. The Company does not expect the adoption of ASU No. 2016-01 to have a material impact on its consolidated financial statements. · In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842). The amendments in this update create Topic 842, Leases, and supersede the leases requirements in Topic 840, Leases. Topic 842 specifies the accounting for leases. The objective of Topic 842 is to establish the principles that lessees and lessors shall apply to report useful information to users of financial statements about the amount, timing, and uncertainty of cash flows arising from a lease. The main difference between Topic 842 and Topic 840 is the recognition of lease assets and lease liabilities for those leases classified as operating leases under Topic 840. Topic 842 retains a distinction between finance leases and operating leases. The classification criteria for distinguishing between finance leases and operating leases are substantially similar to the classification criteria for distinguishing between capital leases and operating leases in the previous leases guidance. The result of retaining a distinction between finance leases and operating leases is that under the lessee accounting model in Topic 842, the effect of leases in the statement of comprehensive income and the statement of cash flows is largely unchanged from previous GAAP. The amendments in ASU No. 2016-02 are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years for public business entities. Early application of the amendments in ASU No. 2016-02 is permitted. The Company is currently in the process of evaluating the impact of the adoption of ASU No. 2016-02 on its consolidated financial statements. · In April 2016, the FASB issued ASU No. 2016-09, CompensationStock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting, which simplifies several aspects of the accounting for employee share-based payment transactions. The areas for simplification in ASU No. 2016-09 include the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. The amendments in this ASU will be effective for annual periods beginning after December 15, 2016 and interim periods within those annual periods. Early adoption is permitted. The Company is currently evaluating the impact of the adoption of ASU No. 2016-09 on its consolidated financial statements. Recently issued accounting pronouncements · In June 2016, the FASB issued ASU No. 2016-13, Financial InstrumentsCredit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. Financial InstrumentsCredit Losses (Topic 326) amends guideline on reporting credit losses for assets held at amortized cost basis and available-for-sale debt securities. For assets held at amortized cost basis, Topic 326 eliminates the probable initial recognition threshold in current GAAP and, instead, requires an entity to reflect its current estimate of all expected credit losses. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of the financial assets to present the net amount expected to be collected. For available-for-sale debt securities, credit losses should be measured in a manner similar to current GAAP, however Topic 326 will require that credit losses be presented as an allowance rather than as a write-down. ASU No. 2016-13 affects entities holding financial assets and net investment in leases that are not accounted for at fair value through net income. The amendments affect loans, debt securities, trade receivables, net investments in leases, off balance sheet credit exposures, reinsurance receivables, and any other financial assets not excluded from the scope that have the contractual right to receive cash. The amendments in this ASU will be effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. The Company is currently evaluating the impact of the adoption of ASU No. 2016-13 on its consolidated financial statements. · In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments, which addresses the following eight specific cash flow issues: Debt prepayment or debt extinguishment costs; settlement of zero-coupon debt instruments or other debt instruments with coupon interest rates that are insignificant in relation to the effective interest rate of the borrowing; contingent consideration payments made after a business combination; proceeds from the settlement of insurance claims; proceeds from the settlement of corporate-owned life insurance policies (including bank-owned life insurance policies; distributions received from equity method investees; beneficial interests in securitization transactions; and separately identifiable cash flows and application of the predominance principle. The amendments in this ASU are effective for public business entities for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted, including adoption in an interim period. The Company is currently evaluating the impact of the adoption of ASU No. 2016-15 on its consolidated financial statements. |
RELATED PARTY BALANCES AND TRAN
RELATED PARTY BALANCES AND TRANSACTIONS | 12 Months Ended |
Sep. 30, 2016 | |
Related Party Transactions [Abstract] | |
Related Party Transactions Disclosure [Text Block] | 3. RELATED PARTY BALANCES AND TRANSACTIONS (1) Related party relationships Name of related parties Relationship Jilin Jinong Hi-tech Development Shares Co., Ltd. (“Jinong”) Being long-term investment of the Company (note 10) Shijiazhuang Liyu Technology Development Co., Ltd. (“Liyu”) Being an equity investment of the Company prior to July 10, 2014 Henan Agriculture University Being the non-controlling interest of Beijing Origin Beijing Shihui Being owned by close family members of the Company’s Chairman Neijiang Agriculture Institute Being the non-controlling interest of Denong Xinjiang Ginbo Seeds Center Being the non-controlling interest of Xinjiang Origin (2) Due to related parties September 30, 2015 2016 RMB RMB Henan Agriculture University 1,000 1,000 Beijing Shihui(note (i)) 29,703 91,304 Xinjiang Ginbo Seeds Center(note (ii)) 10,054 10,000 Companies controlled by the Company’s directors 1,511 1,585 Ex-shareholders of State Harvest 16 16 42,284 103,905 Note (i): The balance as of September 30, 2016 represented the advance from Beijing Shihui for its seed sales. Note (ii): Xinjiang Origin, the subsidiary of the Company, has received a cash advance of RMB 10,000 (3) Transactions with related parties (a) Sales to Year ended September 30, 2014 2015 2016 RMB RMB RMB Beijing Shihui - 40,586 102,234 (b) Technology usage fees charged by Year ended September 30, 2014 2015 2016 RMB RMB RMB Henan Agriculture University - - 1,000 Liyu 4,838 - - Neijiang Agriculture Institute 500 - - 5,338 - 1,000 The above amounts related to technology usage fees paid to certain related party research centers for the exclusive right to use certain seed technologies. (c) Dividend received from Year ended September 30, 2014 2015 2016 RMB RMB RMB Liyu 3,000 - - (d) Rental income received from Year ended September 30, 2014 2015 2016 RMB RMB RMB Beijing Shihui - - 250 (e) Assets acquire and sell to a related party The Company acquired intangible assets of RMB 1,968 As further described in Note 25, on September 26, 2016, the Company entered into a Master Transaction Agreement to sell its proprietary China-based commercial corn seed production and distribution business for RMB 400 |
ACCOUNTS RECEIVABLE
ACCOUNTS RECEIVABLE | 12 Months Ended |
Sep. 30, 2016 | |
Accounts Receivable [Abstract] | |
Accounts Receivable [Text Block] | 4. ACCOUNTS RECEIVABLE Accounts receivable consists of trade receivables resulting from sales of products during the normal course of business. Year ended September 30, 2014 2015 2016 RMB RMB RMB Balance at beginning of year 12,110 5,881 4,845 Additions 15 - 242 Reversal of recovered debts (627) (1,036) - Derecognition upon disposal of a subsidiary (5,617) - - Balance at end of year 5,881 4,845 5,087 |
ADVANCES TO SUPPLIERS
ADVANCES TO SUPPLIERS | 12 Months Ended |
Sep. 30, 2016 | |
Advances To Suppliers [Abstract] | |
Advances To Suppliers Disclosure [Text Block] | 5. ADVANCES TO SUPPLIERS Advances to suppliers consist of the following: September 30, 2015 2016 RMB RMB Purchases of materials 4,767 315 Prepayments for advertisement 3,083 3,141 Prepayments for transportation fee 2 2 Prepayments for operating lease 204 - Prepayments for testing fee 289 475 Utility deposit 476 86 Deposits for research and development fee 865 830 Prepayments for professional fee - 328 Others 798 2,186 10,484 7,363 Advances to suppliers mainly represent deposits paid but related materials and services have not been provided to the Company. |
INVENTORIES
INVENTORIES | 12 Months Ended |
Sep. 30, 2016 | |
Inventory Disclosure [Abstract] | |
Inventory Disclosure [Text Block] | 6. INVENTORIES September 30, 2015 2016 RMB RMB Work in progress and supplies 420,655 385,790 Finished goods 65,080 39,426 Provision (46,173) (57,130) 439,562 368,086 Inventory with net values of RMB 27,323 36,436 As of September 30, 2015 and 2016, goods already delivered to customers but still recorded in finished goods, amounted to RMB 6,198 3,681 Years ended September 30, 2014 2015 2016 RMB RMB RMB Balance at beginning of year 52,301 53,587 46,173 Additions 21,984 10,965 20,502 Write-off (20,698) (18,379) (9,545) Balance at end of year 53,587 46,173 57,130 |
OTHER CURRENT ASSETS
OTHER CURRENT ASSETS | 12 Months Ended |
Sep. 30, 2016 | |
Other Current Assets [Abstract] | |
Other Current Assets Disclosure [Text Block] | 7. OTHER CURRENT ASSETS Other current assets consist of the following: September 30, 2015 2016 RMB RMB Advances to staff for business use 2,911 2,998 Deposits for rental 1,130 1,099 Others 752 656 4,793 4,753 |
LAND USE RIGHTS, NET
LAND USE RIGHTS, NET | 12 Months Ended |
Sep. 30, 2016 | |
Land Use Rights [Abstract] | |
Land Use Rights Disclosure [Text Block] | 8. LAND USE RIGHTS, NET September 30, 2015 2016 RMB RMB Land use rights 38,576 38,575 Accumulated amortization (6,854) (7,835) Land use rights, net 31,722 30,740 Land use rights with net values of RMB 18,519 17,867 1,027 978 981 |
PLANT AND EQUIPMENT, NET
PLANT AND EQUIPMENT, NET | 12 Months Ended |
Sep. 30, 2016 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment Disclosure [Text Block] | 9. PLANT AND EQUIPMENT, NET September 30, 2015 2016 RMB RMB Plant and building 252,664 253,739 Machinery and equipment 163,013 170,485 Furniture and office equipment 12,955 12,914 Motor vehicles 9,963 9,285 Total 438,595 446,423 Accumulated depreciation (118,064) (138,640) Construction in progress 4,374 5,966 Plant and equipment, net 324,905 313,749 Included in plant and building with net values of RMB 197,627 192,928 The depreciation expenses for the years ended September 30, 2014, 2015 and 2016 were RMB 21,832 21,901 22,531 Construction in progress mainly refers to the new office buildings, production lines and other production facilities under construction. |
LONG-TERM INVESTMENTS
LONG-TERM INVESTMENTS | 12 Months Ended |
Sep. 30, 2016 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investments Disclosure [Text Block] | 10. LONG TERM INVESTMENTS September 30, 2015 2016 RMB RMB Cost method investment 18,721 18,721 In previous years, the Company owned 23 17.94 |
ACQUIRED INTANGIBLE ASSETS, NET
ACQUIRED INTANGIBLE ASSETS, NET | 12 Months Ended |
Sep. 30, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets Disclosure [Text Block] | 11. ACQUIRED INTANGIBLE ASSETS, NET September 30, 2015 2016 RMB RMB Technology rights for licensed seeds 99,602 100,602 Distribution network 6,739 6,739 Others 7,584 7,834 113,925 115,175 Accumulated amortization (78,221) (85,931) Impairment provision (4,314) (4,314) Acquired intangible assets, net 31,390 24,930 Amortization expenses for the years ended September 30, 2014, 2015 and 2016 were RMB 5,665 7,670 7,710 Year ending September 30, RMB 2017 5,629 2018 5,312 2019 3,608 2020 2,179 2021 1,980 Total 18,708 The Company enters into technology transfer and usage agreements with strategic partners and pays up-front fees for the exclusive rights to certain seed technologies. Technology rights are amortized over an average usage period of 5 |
OTHER ASSETS
OTHER ASSETS | 12 Months Ended |
Sep. 30, 2016 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other Assets [Text Block] | OTHER ASSETS September 30, 2015 2016 RMB RMB Prepaid lease 2,796 2,368 Deposits for purchase of plant and equipment 233 - Others 50 42 3,079 2,410 |
BORROWINGS
BORROWINGS | 12 Months Ended |
Sep. 30, 2016 | |
Debt Disclosure [Abstract] | |
Borrowings Disclosure [Text Block] | 13. BORROWINGS September 30, 2015 2016 RMB RMB Short-term borrowings 220,000 190,000 Current portion of long-term borrowings 24,000 27,057 Long-term borrowings 40,972 20,000 Fiscal year 2016: As of September 30, 2016, short-term borrowings were comprised of secured and unsecured bank loans of RMB 125,000 65,000 60,000 4.57 2,300 31,733 A secured bank loan of RMB 15,000 5.87 3,111 9,501 50,000 5.71 36,436 Unsecured short-term loans of RMB 30,000 5.00 5.22 35,000 4.57 As of September 30, 2016, long-term borrowings were comprised of secured and unsecured bank loans of RMB4,023 and RMB43,034, respectively. A secured bank loan of RMB4,023 is represented by the bank borrowing under Xinjiang Origin, which was secured by a land use right of RMB12,456(note 8) and plant and equipment of RMB144,184 (note 9) and a guarantee contract. The interest rate was 4.99% per annum. Unsecured long-term bank loans of RMB23,000, with an interest rate from 5.23% to 6.18% per annum, are represented by the bank borrowings under Beijing Origin and Xinjiang Origin, which were guaranteed by the Chairman of the Company, Beijing Origin and Xinjiang AiBiHu Agricultural Industrial Commercial Enterprise, which is an affiliate of Xinjiang Production and Construction Corps Fiscal year 2015: As of September 30, 2015, short-term borrowings were comprised of secured and unsecured bank loans of RMB 105,000 115,000 60,000 5.88 2,361 32,692 A secured bank loan of RMB15,000 with an interest rate of 6.885% per annum, is represented by the bank borrowing under Zhengzhou Branch, which was secured by land use right of RMB3,203 (note 8), plant and equipment of RMB10,241 (note 9) and two guarantee contracts. Another secured bank loan of RMB30,000 with an interest rate of 5.936% per annum, is represented by the bank borrowing under Linze Origin, which was secured by inventory of RMB27,323 and two guarantee contracts. Unsecured short-term bank loans of RMB30,000 are represented by the bank borrowings with an interest rate of 5.1% to 6.42% per annum under Beijing Origin. These loans were guaranteed by Chairman of the Company. While, the rest of unsecured short-term bank loans amounting to RMB85,000 under Linze Origin were guaranteed by Chairman of the Company and Beijing Origin. The interest rates of these loans were ranged from 4.85% to 6.068% per annum. As of September 30, 2015, long-term borrowings were comprised of secured and unsecured bank loans of RMB 14,523 50,449 14,523 12,955 154,694 Unsecured long-term bank loans of RMB 36,500 7.04 7.8 Xinjiang Production and Construction Corps The current portion of the loan amounted to RMB 24,000 |
OTHER PAYABLES AND ACCRUED EXPE
OTHER PAYABLES AND ACCRUED EXPENSES | 12 Months Ended |
Sep. 30, 2016 | |
Payables and Accruals [Abstract] | |
Accounts Payable and Accrued Liabilities Disclosure [Text Block] | 14. OTHER PAYABLES AND ACCRUED EXPENSES Other payables and accrued expenses consist of: September 30, 2015 2016 RMB RMB Payable for purchase of plant and equipment 1,262 1,355 Payable for purchase of land use rights 620 620 Payable for purchase of construction-in-progress 12,776 8,850 Professional fee payable 1,500 9,154 Salaries and bonus payable 10,869 10,699 Accrued interest 1,813 1,813 Other taxes payable 731 658 Deposits from growers 969 355 Deposits from others 2,035 7,684 Payable for labor union, housing fund and education expenses 738 785 Deferred government subsidies 9,575 6,172 Others 7,410 5,243 50,298 53,388 |
OTHER LONG-TERM LIABILITY
OTHER LONG-TERM LIABILITY | 12 Months Ended |
Sep. 30, 2016 | |
Other Long Term Liabilities Disclosure [Abstract] | |
Other Long Term Liabilities Disclosure [Text Block] | OTHER LONG-TERM LIABILITY During the fiscal year 2011, the Company received government subsidies from the local PRC government for plant and equipment projects of RMB 14.00 10.90 2.62 8.63 0.82 |
SHARE OPTION PLANS
SHARE OPTION PLANS | 12 Months Ended |
Sep. 30, 2016 | |
Disclosure Of Compensation Related Costs, Share-Based Payments [Abstract] | |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | 16. SHARE OPTION PLANS On November 8, 2005, the Company adopted the 2005 Performance Equity Plan (the “2005 Plan”) which allows the Company to offer a variety of incentive awards to employees to acquire up to 1,500,000 1,500,000 5,000,000 Under the terms of the 2005 Plan on January 4, 2010 the Company granted its employees options to purchase 125,000 12.23 120,000 10.84 365,000 2.55 360,000 1.44 350,000 1.27 Under the terms of the 2014 Plan, on January 2, 2015 the Company granted its employees options to purchase 195,000 1.48 185,000 1.38 600,000 2.05 200,000 1.65 200,000 2.0 All the options have an expiration date that is 5 10 1 5 1,175,000 1,060,000 195,000 1,380,000 After the adjusted awards, all the option awards have an exercise price of USD 1.27 12.23 On December 22, 2014 and January 2, 2016, the compensation committee of the Board of Directors approved the substitution of restricted stock for outstanding grants under Tranche 5& 6 that no longer offer the kind of incentive opportunity originally sought for valued employees given the fall in the market price of the ordinary shares during recent years. The revised terms of the stock options were accounted for as a modification in accordance with ASC 718-20.For the purpose of determining the amount of any incremental share-based compensation cost that may have resulted from the modification of the exercise prices, the Company compared the fair value of modified awards and that of the original awards, determined that RMB 616 542 83 For the options outstanding at September 30, 2015 and 2016, the weighted average remaining contractual lives are 2.4 5.1 The Company recorded share-based compensation expense of RMB 1,324 1,612 8,796 238 2,676 0.52 A summary of the share option activity under the 2005, 2009 and 2014 Plans is as follows: Tranche Tranche Tranche Tranche Tranche Tranche 10 Tranche 11 Tranche 12 Tranche 13 Tranche 14 5 6 7 8 9 January 3 January 3 January 3, January 2, January 2, January 2, January 4, April 19, May 16, August 3, Grant date 2010 , 2011 2012 2013 2014 2015 2016 2016 2016 2016 Options outstanding as of October 1, 2014 120,000 115,000 365,000 360,000 350,000 - - - - - Number of options granted - - - - - 195,000 - - - - Options cancelled/expired (120,000) - (5,000) (5,000) (5,000) - - - - - Options outstanding as of September 30, 2015 - 115,000 360,000 355,000 345,000 195,000 - - - - Number of options granted - - - - 185,000 600,000 200,000 200,000 Options cancelled/expired - (115,000) - - - - - - - - Outstanding as of September 30, 2016 - - 360,000 355,000 345,000 195,000 185,000 600,000 200,000 200,000 Options vested and exercisable At September 30, 2015 - 115,000 360,000 355,000 345,000 195,000 - - - - At September 30, 2016 - - 360,000 355,000 345,000 195,000 185,000 600,000 200,000 200,000 Weighted average fair value at the grant date (USD) 7.20 6.08 1.45 0.76 0.65 0.75 0.90 1.54 1.24 1.44 Tranche 5 Tranche 6 Tranche 7 Tranche 8 Tranche 9 Tranche 10 Tranche 11 Tranche 12 Tranche 13 Tranche 14 Exercise price (US$) 12.23 10.84 2.55 1.44 1.27 1.48 1.38 2.05 1.65 2.00 Average risk-free interest rate 1.66 % 1.03 % 0.40 % 0.37 % 0.76 % 1.07 % 1.73 % 1.79 % 1.75 % 1.55 % Expected option life (year) 3 3 3 3 3 3 5 10 10 10 Volatility rate 92.81 % 88.03 % 90.30 % 81.98 % 79.20 % 79.67 % 80.72 % 69.27 % 69.92 % 65.37 % Dividend yield - - - - - - - - - - The aggregate intrinsic value as of September 30, 2015 and 2016 is USD nil and USD 1,476 |
TREASURYSTOCK
TREASURYSTOCK | 12 Months Ended |
Sep. 30, 2016 | |
Equity [Abstract] | |
Treasury Stock [Text Block] | 17. TREASURYSTOCK During the year ended September 30, 2007, the Company repurchased 498,851 29,377 5 611,386 167,385 6,286 1,782 |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Sep. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | 18. INCOME TAXES Agritech and its subsidiary, State Harvest are incorporated in the British Virgin Islands and are exempted from the income tax under the laws of the British Virgin Islands. State Harvest’s subsidiary and State Harvest’s variable interest entity, Beijing Origin and its majority owned subsidiaries (together, the “PRC entities”) were incorporated in the PRC and governed by the PRC laws. The applicable tax rate of the PRC Enterprise Income Tax (“EIT”) was changed from 33 25 25 15 Preferential tax treatment of Beijing Origin as “high technology” company (High-tech Status) from October 28, 2011 to October 27, 2017 has been granted by the relevant tax authorities. Beijing Origin is entitled to a preferential tax rate of 15 15 a preferential tax of 2 years exemption and 3 years of half EIT from January 1, 2012 to December 31, 2016 15 15 Had all the above tax holidays and concessions not been available, the tax charges would have been lower by RMB (750) (1,149) (3,822) (0.01) (0.13) 0.17 (0.01) (0.13) 0.17 The Company’s liability for income taxes includes the liability for unrecognized tax benefits, interest and penalties which relate to tax years still subject to review by taxing authorities. Audit periods remain open for review until the statute of limitations has passed. The completion of review or the expiration of the statute of limitations for a given audit period could result in an adjustment to the Company’s liability for income taxes. Any such adjustment could be material to the Company’s results of operations for any given quarterly or annual period based, in part, upon the results of operations for the given period. Until September 30, 2016, the management considered that the Company had no uncertain tax positions affected its consolidated financial position. The Company’s uncertain tax positions are related to tax years that remain subject to examination by the relevant tax authorities and the major one is the China tax authority. The open tax years for examinations in China are 5 years. Year ended September 30, 2014 2015 2016 RMB RMB RMB Current 677 1,295 1,436 Deferred - - - Reversal of contingent tax liability (39,060) - - (38,383) 1,295 1,436 September 30, 2015 2016 RMB RMB Non-current deferred tax assets: Net operating loss carry forward 26,547 25,964 Impairment on inventory 9,420 11,213 Others 9,292 9,734 Non-current deferred income tax assets 45,259 46,911 Valuation allowances (45,259) (46,911) Net non-current deferred income tax assets - - The Company did not have any significant temporary differences relating to deferred tax liabilities as of September 30, 2015 and 2016. A significant portion of the deferred tax assets recognized relates to net operating loss and credit carry forwards. The Company operates through the PRC entities and the valuation allowance is considered on each individual basis. The net operating loss attributable to those PRC entities can only be carried forward for a maximum period of five years. Tax losses of non-PRC entities can be carried forward indefinitely. Year ended September 30, 2015 2016 RMB RMB Calendar year ending, 2015 10,278 - 2016 49,532 40,099 2017 21,254 21,254 2018 5,290 5,290 2019 35,477 24,931 2020 - 24,154 121,831 115,728 Year ended September 30, 2014 2015 2016 % % % Statutory rate 25 25 25 Effect of preferential tax treatment (2) (7) (5) Effect of different tax jurisdiction (3) (7) (6) Permanent book-tax difference 9 11 (3) Change in valuation allowance (2) 10 (7) Utilization of tax loss previously not recognized - - - Under/(Over) provision in prior year (29) (40) (6) Reversal of contingent tax liability 90 - - Effective income tax rate 88 (8) (2) Reversal of contingent tax liability for year ended September 30, 2014 In previous years, the Company assessed the contingent tax liability that might arise from the share exchange transaction with Chardan and considered such contingent tax liabilities as more-likely-than-not. As of September 30, 2013, a contingent tax liability of RMB 39,060 39,060 64,218 In 2009, the Company reviewed the contingent tax position. On September 23, 2010, the Company filed a revised 2005 tax return (the “Revised Return”) to the United States Internal Revenue Service (the “IRS”), to modify and supplement the previously filed tax return regarding this tax liability. The timeline for the IRS to question on the tax return and assess additional tax due is generally three years. For the period from the filing date of the Revised Return (i.e., September 23, 2010) to September 30, 2014, the IRS did not enquire of the Company or Chardan to clarify the redomestication transaction reflected in the Revised Return. The Company believes that Chardan paid all necessary and required U.S. federal income tax arising out of the Chardan redomestication. The Company also believes that the time limit for the IRS to assess any additional income tax expired at September 23, 2013,by reason of the expiration of the statute of limitations. The management considered not practical to complete a detail independent reassessment in order to obtain sufficient evidence to support a potential change of tax position in a short period of time, given that no additional evidence is obtained during the year ended September 30, 2013, the Company considered to retain the contingent tax liability in the balance sheet as of September 30, 2013. During the year ended September 30, 2014, the Company has completed an independent review to assess the tax position as of September 30, 2014 and concluded that the three years statute of limitations has expired. As a result, the Company concludes that there is no justification to continue to make a reserve in its accounts for the contingent tax liability of RMB 39,060 39,060 |
LOSS PER SHARE
LOSS PER SHARE | 12 Months Ended |
Sep. 30, 2016 | |
Earnings Per Share [Abstract] | |
Earnings Per Share [Text Block] | 19. LOSS PER SHARE Year ended September 30, 2014 2015 2016 RMB RMB RMB Net loss (numerator), basic and diluted (9,527) (13,808) (65,578) Shares (denominator): Common stock outstanding 22,743,853 22,813,541 22,873,541 Weighted average common stock outstanding used in computing basic and diluted income per share 22,743,853 22,794,791 22,858,541 Net loss per share-basic and diluted (0.42) (0.61) (2.87) For the year ended September 30, 2014, 2015 and 2016, the effect of the outstanding options was anti-dilutive. |
EMPLOYEE BENEFIT PLAN AND PROFI
EMPLOYEE BENEFIT PLAN AND PROFIT APPROPRIATION | 12 Months Ended |
Sep. 30, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Compensation and Employee Benefit Plans [Text Block] | EMPLOYEE BENEFIT PLAN AND PROFIT APPROPRIATION Full time employees of the PRC entities participate in a government mandated multi-employer defined contribution plan pursuant to which certain pension benefits, medical care, unemployment insurance, employee housing fund and other welfare benefits are provided to employees. Chinese labor regulations require the Company to accrue for these benefits based on certain percentages of the employees’ salaries. The total provisions for such employee benefits were RMB 16,212 13,873 12,576 Pursuant to the laws applicable to the PRC, domestic PRC entities must make appropriations from after-tax profit to non-distributable reserves funds including: (i) the statutory surplus reserve and; (ii) the statutory public welfare fund. Subject to the limits of 50 10 10 24,789 24,789 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Sep. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure [Text Block] | COMMITMENTS AND CONTINGENCIES (a) Capital commitments September 30, 2015 2016 RMB RMB Equipment 4,877 4,172 Intangible assets - 1,000 4,877 5,172 (b) Operating lease The Company leased certain land use rights for seed development and office premises under non-cancellable leases. Rental expenses under operating leases for the years ended September 30, 2014, 2015 and 2016 were RMB3,185, RMB2,990 and RMB4,598 respectively. RMB Year ending September 30, 2017 1,642 2018 654 2019 470 2020 457 Thereafter 3,468 6,691 |
FAIR VALUE OF FINANCIAL INSTRUM
FAIR VALUE OF FINANCIAL INSTRUMENTS | 12 Months Ended |
Sep. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value Disclosures [Text Block] | 22. FAIR VALUE OF FINANCIAL INSTRUMENTS The carrying amounts of cash and cash equivalents, restricted cash, accounts receivable, accounts payable and borrowings are reasonable estimates of their fair value. All the financial instruments are for trade purposes. No level 2 or 3 fair value assessment has been made. |
SEGMENT AND GEOGRAPHIC INFORMAT
SEGMENT AND GEOGRAPHIC INFORMATION | 12 Months Ended |
Sep. 30, 2016 | |
Segment Reporting [Abstract] | |
Segment Reporting Disclosure [Text Block] | 23. SEGMENT AND GEOGRAPHIC INFORMATION From June 2015, the Company announced that it has successfully transitioned from a traditional seed company to a biotechnology seed company and is now organized into two business lines: agri-biotech and product development and production and distribution of hybrid seeds. The Company’s reportable segments are strategic business units that require different technology and marketing strategies and offer different products and services. The primary income (loss) measure used for assessing segment performance and making operating decisions is income (loss) from operations (i.e., earnings before non-operating income (expenses), interest and income taxes). The Company’s chief operating decision maker, the Chief Executive Officer, receives and reviews the results of the operations of each separate segment, assesses and manages their performance and makes decisions based on the measures of revenues, cost of revenues, gross profit, operating expenses, net and income (loss) from operations. Other than the information provided below, the Company’s chief operating decision maker does not use any other measures by segments. The accounting policies of the segments are the same as those described in the summary of significant accounting policies. The Company accounts for intersegment sales and transfers as if the sales or transfers were to third parties, that is, at current market prices. Following a change in the identification of the Company’s reportable segments as aforementioned, the Company has also presented the corresponding items of segment information for the years ended September 30, 2015 and 2016 for comparative purposes. Net revenues, income (loss) from operations and total assets of the Company’s reportable segments are as follows: Year ended September 30, 2014 2015 2016 RMB RMB RMB Segment net revenues Production and distribution of hybrid seeds 414,891 376,250 334,769 Agri-biotech and product development 3,536 3,560 3,495 Segment total net revenues 418,427 379,810 338,264 Inter-segment sales eliminations (3,250) (3,257) (3,013) Reconciliation to consolidated revenues 415,177 376,553 335,251 Segment operating income(loss) Production and distribution of hybrid seeds 10,691 38,709 263 Agri-biotech and product development (24,328) (26,501) (31,205) Total segment operating income(loss) (13,637) 12,208 (30,942) Less: Unallocated corporate operating expenses, net 10,842 10,868 30,366 Reconciliation to consolidated income (loss) from operations (24,479) 1,340 (61,308) September 30, 2015 2016 RMB RMB Segment identifiable assets: Production and distribution of hybrid seeds 916,088 803,420 Agri-biotech and product development 187,223 189,446 Segment total identifiable assets 1,103,311 992,866 Receivables elimination (117,482) (112,240) Reconciliation to consolidated total assets 985,829 880,626 Supplemental disclosures of segment information: Year ended September 30, 2014 2015 2016 RMB RMB RMB Segment depreciation and amortization Production and distribution of hybrid seeds 27,567 29,668 30,365 Agri-biotech and product development 957 879 857 Reconciliation to consolidated depreciation and amortization 28,524 30,547 31,222 Segment capital expenditure to long-lived assets Production and distribution of hybrid seeds 22,615 20,531 16,964 Agri-biotech and product development - - - Reconciliation to consolidated expenditure on the purchase of plant and equipment, land use rights and intangible assets 22,615 20,531 16,964 As we primarily generate our revenues from customers in the PRC, and all of our sales and all of our identifiable assets are located in the PRC, no geographical segments are presented. |
OPERATING RISK
OPERATING RISK | 12 Months Ended |
Sep. 30, 2016 | |
Risks and Uncertainties [Abstract] | |
Concentration Risk Disclosure [Text Block] | 24. OPERATING RISK Concentrations of credit risk Financial instruments that subject the Company to concentrations of credit risk consist primarily of cash and cash equivalents. The Company maintains its cash and cash equivalents with high-quality institutions. Generally these deposits may be redeemed upon demand and therefore bear minimal risk. Interest risk The interest rates and terms of repayment of bank and other borrowings ranged from 2.38 6.18 Liquidity risk We believe our working capital is sufficient to meet our present requirements. We may, however, require additional cash due to changing business conditions or other future developments, including any investments or acquisitions we may decide to pursue. In the long-term, we intend to rely primarily on cash flow from operations and additional borrowings from banks to meet our anticipated cash needs. If our anticipated cash flow is insufficient to meet our requirements, we may also seek to sell additional equity, debt or equity-linked securities. Country risk The Company has significant investments in the PRC. The operating results of the Company may be adversely affected by changes in the political and social conditions in the PRC and by changes in Chinese government policies with respect to laws and regulations, anti-inflationary measures, currency conversion and remittance abroad, and rates and methods taxation, among other things. There can be no assurance; however, those changes in political and other conditions will not result in any adverse impact. |
AGREEMENT TO SELL COMMERICAL SE
AGREEMENT TO SELL COMMERICAL SEED BUSINESS | 12 Months Ended |
Sep. 30, 2016 | |
Agreement To Sale Subsidiary or Equity Method Investee [Abstract] | |
Agreement To Sale Subsidiary or Equity Method Investee [Text Block] | 25. AGREEMENT TO SELL COMMERICAL SEED BUSINESS On September 26, 2016, the Company entered into a Master Transaction Agreement to sell its seed production and distribution business to Beijing Shihui, a related party. The overall transaction will be conducted in two steps. The first step will be the sale of the equity held by Beijing Origin of each of the Denong, Changchun Origin and Linze Origin companies, and the second step will be the sale of a company holding the assets of Beijing Origin’s branch in Zhengzhou (“Zhengzhou Branch”) and the office building in Beijing, PRC. Beijing Origin will also orchestrate with the parties that own minor percentages of Changchun Origin, not now owned by Beijing Origin, to purchase their ownership equity amounts so that the Buyer acquires from Beijing Origin all of the equity of Changchun Origin in the first step of the transaction. The second step requires Beijing Origin to effect a restructuring to form a company to own the current office building located in Beijing, PRC and certain other assets (together the “Zhengzhou Branch Assets”), which company will be sold to the Buyer so as to transfer the building and assets to the Buyer. By separate agreement the Buyer will enter into license arrangements to pay Beijing Origin a royalty for the present and future seed portfolio and a technology access fee for the research and development effort that Beijing Origin will provide going forward in the areas of product discovery and development, hybrid registration, trait integration and intellectual property protection. At the first closing, the Buyer will pay to Beijing Origin RMB 200 98.58 100 100 the Company’s Chairman 100 190 10 100 400 The Buyer will assume the outstanding liabilities of the VIE Subsidiaries and the Zhengzhou Branch Assets, except for certain outstanding bank loans. The current bank loans aggregating RMB 100 Beijing Origin has agreed to use its reasonable best efforts (i) to complete the restructuring of the Company so as to be able to complete the second closing, to acquire the portion of Changchun Origin that it does not own, and to transfer certain assets, the assets of Beijing Origin’s branch in Linze, to Linze Origin. Additionally, all intercompany accounts between Beijing Origin and its retained affiliates, on the one hand, and the VIE Subsidiaries, on the other hand, regardless of any due dates, existing prior to the first closing will be paid in full before or at the first closing. The Buyer and Beijing Origin will negotiate separate license agreements regarding the Buyer’s continued use of the trademarks and trade names owned by Beijing Origin and licensing designated seeds developed by Beijing Origin or Beijing Biotechnology. Origin Agritech and Beijing Origin are jointly responsible for all transfer, documentary, sales, use, stamp, recording, value added, registration, conveying taxes and fees in connection with the sale of the various types of assets to Buyer. Beijing Origin has agreed that for ten years after the closing, without the written consent of the Buyer, it and its affiliated entities will not directly conduct any business in the distribution of crop seeds in the PRC, except for the distribution of crop seeds in Xinjiang province by Xinjiang Origin. This limitation will not prohibit Origin, Beijing Origin or BioTech from conducting the businesses of crop seed licensing, transgenic materials licensing, transgenic traits licensing or other activities related to its intellectual property in the PRC. This non-competition provision will terminate if more than 50% of the equity interest or assets of the Company are acquired by an independent third party during the restrictive period. To be able to complete the transaction, the transaction will need to be approved by shareholders. |
CONDENSED FINANCIAL INFORMATION
CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY | 12 Months Ended |
Sep. 30, 2016 | |
Condensed Financial Information Of Parent Company Only Disclosure [Abstract] | |
Condensed Financial Information of Parent Company Only Disclosure [Text Block] | 26. CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY The condensed financial statements of Origin Agritech Limited (the “parent company”) have been prepared in accordance with accounting principles generally accepted in the United States of America. Under the PRC laws and regulations, the Company’s PRC subsidiaries are restricted in their ability to transfer certain of their net assets to the parent company in the form of dividend payments, loans or advances. The amounts restricted include paid-in capital, capital surplus and statutory reserves, as determined pursuant to PRC generally accepted accounting principles, totaling RMB 109,651 109,651 The following represents condensed unconsolidated financial information of the parent company only: September 30 2015 2016 2016 RMB RMB US$ ASSETS Current assets Cash and cash equivalents 341 581 87 Other receivables 3 3 - Prepaid expenses 481 - - Due from inter-companies 125,815 129,811 19,439 Total current assets 126,640 130,395 19,526 Investment in unconsolidated subsidiaries 130,013 71,512 10,709 Total assets 256,653 201,907 30,235 LIABILITIES AND EQUITY Current liabilities Due to related parties 1,511 1,586 237 Total current liabilities 1,511 1,586 237 Long-term borrowings 13,948 20,033 3,000 Total liabilities 15,459 21,619 3,237 Total stockholders’ equity 241,194 180,288 26,998 Total liabilities and stockholders’ equity 256,653 201,907 30,235 Year ended September 30, 2014 2015 2016 2016 RMB RMB RMB US$ Revenues 286 303 204 31 Cost of revenues - - - - Operating expenses General and administrative (5,025) (4,335) (16,035) (2,401) Loss from operations (4,739) (4,032) (15,831) (2,370) Equity in earnings loss of unconsolidated subsidiaries (43,579) (9,223) (49,009) (7,339) Interest expense (268) (553) (738) (111) Loss before income taxes (48,586) (13,808) (65,578) (9,820) Income tax (expense) benefits Income tax expense - - - - Reversal of contingent tax liability 39,059 - - - Income tax benefits 39,059 - - - Net loss (9,527) (13,808) (65,578) (9,820) Other comprehensive loss Foreign currency translation difference (56) (2,607) (4,124) (618) Total comprehensive loss (9,583) (16,415) (69,702) (10,438) Year ended September 30, 2014 2015 2016 2016 RMB RMB RMB US$ Net cash used in operating activities (3,288) (7,242) (20,009) (2,996) Net cash provided by (used in) financing activities (452) 3,255 14,881 2,228 Net increase in cash and cash equivalents (3,740) (3,987) (5,128) (768) Cash and cash equivalents, beginning of year 4,332 671 341 51 Effect of exchange rate changes on cash and cash equivalents 79 3,657 5,368 804 Cash and cash equivalents, end of year 671 341 581 87 BASIS OF PRESENTATION The condensed financial information has been prepared using the same accounting policies as set out in the Company’s consolidated financial statements except that the parent company has used equity method to account for its investments in subsidiaries. |
SUMMARY OF SIGNIFICANT ACCOUN35
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Sep. 30, 2016 | |
Accounting Policies [Abstract] | |
Consolidation, Policy [Policy Text Block] | Principles of consolidation The consolidated financial statements of the Company are prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”); include the assets, liabilities, revenues, expenses and cash flows of all subsidiaries and variable interest entities. Intercompany balances, transactions and cash flows are eliminated on consolidation. |
Convenience Translation [Policy Text Block] | Convenience translation into United States dollars The consolidated financial statements are presented in Renminbi. The translation of Renminbi amounts into United States dollar amounts has been made for the convenience of the reader and has been made at the exchange rate quoted by the middle rate by the State Administration of Foreign Exchange in China on September 30, 2016 of RMB 6.6778 |
Use of Estimates, Policy [Policy Text Block] | Use of estimates The preparation of the consolidated financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Estimates are adjusted to reflect actual experience when necessary. Significant accounting estimates reflected in the Company’s consolidated financial statements include inventory valuation, account receivable valuation, useful lives of plant and equipment and acquired intangible assets, the valuation allowance for deferred income tax assets, valuation of goodwill, valuation of long-lived assets and share-based compensation expense. Actual results could differ from those estimates. |
Cash and Cash Equivalents, Policy [Policy Text Block] | Cash and cash equivalents Cash and cash equivalents consist of cash on hand, cash accounts, interest bearing savings accounts, time certificates of deposit and debt securities with a maturities of three months or less when purchased. |
Inventory, Policy [Policy Text Block] | Inventories Inventories are stated at the lower of cost, determined by weighted-average method, or market. Work-in-progress and finished goods inventories consist of raw materials, direct labor and overhead associated with the manufacturing process. The Company periodically performs an analysis of inventory to determine obsolete or slow-moving inventory and determine if its cost exceeds the estimated market value. Write down of potentially obsolete or slow-moving inventory are recorded based on management’s analysis of inventory levels. |
Land Use Rights [Policy Text Block] | Land use rights, net Land use rights are recorded at cost less accumulated amortization. Amortization is provided over the term of the land use right agreements on a straight-line basis for the beneficial period. |
Property, Plant and Equipment, Policy [Policy Text Block] | Plant and equipment, net Plant and equipment are recorded at cost less accumulated depreciation and amortization. Maintenance and repairs are charged to expense as incurred. Plant and building 20-40 years Machinery and equipment 10-15 years Furniture and office equipment 5-8 years Motor vehicles 5-10 years Leasehold improvements Shorter of the useful lives or the lease term The Company constructs certain of its facilities. In addition to costs under construction contracts, external costs directly related to the construction of such facilities, including duty and tariff, and equipment installation and shipping costs, are capitalized. Depreciation is recorded at the time assets are placed in service. |
Lease, Policy [Policy Text Block] | Leases Leases are classified at the inception date as either a capital lease or an operating lease. For the lessee, a lease is a capital lease if any of the following conditions exist: a) ownership is transferred to the lessee by the end of the lease term, b) there is a bargain purchase option, c) the lease term is at least 75% of the property’s estimated remaining economic life or d) the present value of the minimum lease payments at the beginning of the lease term is 90% or more of the fair value of the leased property to the lessor at the inception date. |
Goodwill and Intangible Assets, Goodwill, Policy [Policy Text Block] | Goodwill Goodwill represents the excess of aggregate purchase price over the fair value of net assets acquired in a business combination. Goodwill is not amortized, but instead tested for impairment at least annually or more frequently if certain circumstances indicate a possible impairment may exist. The Company adopted FASB ASC 350-10 and performs its annual impairment review of goodwill on September 30 of each year. Management evaluates the recoverability of goodwill using a two-step impairment test approach at the reporting unit level, which is determined to be the enterprise level. In the first step, the fair value of the reporting unit is compared to its carrying value including goodwill. Second, if the carrying amount of the reporting unit exceeds its fair value, an impairment loss is recognized for any excess of the carrying amount of the goodwill over the implied fair value of the goodwill. The implied fair value of goodwill is determined by allocating the fair value of the reporting unit in a manner similar to a business combination. The carrying amount of the goodwill at September 30, 2015 and 2016 represents the cost arising from the business combinations in previous years and no impairment on goodwill was recognized for any of the periods presented for the Company. September 30, 2014 2015 2016 RMB RMB RMB Balance at beginning of year 11,973 11,973 11,973 Additions - - - Written off - - - 11,973 11,973 11,973 |
Goodwill and Intangible Assets, Intangible Assets, Policy [Policy Text Block] | Acquired intangible assets, net Acquired intangible assets primarily consist of purchased technology rights and distribution network and are stated at cost less accumulated amortization. Amortization is calculated on a straight-line basis over the estimated useful lives of these assets and recorded in operating expenses. Technology rights for licensed seeds 3-20 years Distribution network 6-14 years Trademark Indefinite Trademarks, which have indefinite lives are not amortized but are reviewed for impairment at least annually, at year end date, or earlier upon the occurrence of certain triggering events. |
Valuation Of Long Lived Assets [Policy Text Block] | Valuation of long-lived asset The Company reviews the carrying value of long-lived assets to be held and used, including other intangible assets subject to amortization, when events and circumstances warrants such a review. The carrying value of a long-lived asset is considered impaired when the anticipated undiscounted cash flow from such asset is separately identifiable and is less than its carrying value. In that event, a loss is recognized based on the amount by which the carrying value exceeds the fair market value of the long-lived asset and intangible assets. Fair market value is determined primarily using the anticipated cash flows discounted at a rate commensurate with the risk involved. Losses on long-lived assets and intangible assets to be disposed are determined in a similar manner, except that fair market values are reduced for the cost to dispose. |
Government Subsidies [Policy Text Block] | Government subsidies A government subsidy is not recognized until there is reasonable assurance that: (a) the enterprise will comply with the conditions attached to the grant; and (b) the grant will be received. When the Company received the government subsidies but the conditions attached to the grants have not been fulfilled, such government subsidies are deferred and recorded under other payables and accrued expenses, and other long-term liability. The reclassification of short-term or long-term liabilities is depended on the management’s expectation of when the conditions attached to the grant can be fulfilled. The Company received several financial supports from various levels of the government. At fiscal years ended 2015 and 2016, the Company received government subsidies of RMB 7,076 10,368 2,764 5,525 4,582 |
Cost of Sales, Policy [Policy Text Block] | Cost of revenues Cost of revenues consists of expenses directly related to sales, including the purchase prices and development costs for seeds and, during the fiscal years ended September 30, 2014, 2015 and 2016, agricultural chemical products, depreciation and amortization, impairment of inventory, shipping and handling costs, salary and compensation, supplies, license fees, and rent. |
Research and Development Expense, Policy [Policy Text Block] | Research and development costs Research and development costs relating to the development of new products and processes, including significant improvements and refinements to existing products, are expensed as incurred. |
Advertising Costs, Policy [Policy Text Block] | Advertising costs Advertising costs are expensed when incurred and included in selling and marketing expenses. For the years ended September 30, 2014, 2015 and 2016, advertising costs were RMB 15,918 5,655 6,919 |
Shipping and Handling Cost, Policy [Policy Text Block] | Shipping and handling cost The Company includes shipping and handling costs as either cost of goods sold or selling and administrative expenses depending on the nature of the expenses. Shipping and handling costs which relate to transportation of products to customers’ locations is charged to selling and marketing expenses and shipping and handling which relate to the transportation of goods to factories from suppliers and from one factory to another is charged to cost of revenues. For the years ended September 30, 2014, 2015 and 2016, shipping and handling cost included in selling and marketing expenses were RMB 9,561 7,238 8,168 |
Borrowing Cost [Policy Text Block] | Borrowing cost Borrowing costs attributable directly to the acquisition, construction or production of qualifying assets which require a substantial period of time to be ready for their intended use or sale, are capitalized as part of the cost of those assets. Income earned on temporary investments of specific borrowings pending their expenditure on those assets is deducted from borrowing costs capitalized. All other borrowing costs are recognized in interest expenses in the statement of income and comprehensive income in the period in which they are incurred. |
Allowance For Doubtful Account [Policy Text Block] | Allowance for doubtful account The Company regularly monitors and assesses the risk of not collecting amounts owed to the Company by customers. This evaluation is based upon a variety of factors including: an analysis of amounts current and past due along with relevant history and facts particular to the customer. Based upon the results of this analysis, the Company records an allowance for doubtful accounts for this risk. |
Income Tax, Policy [Policy Text Block] | Income taxes Deferred income taxes are recognized for the future tax consequences of temporary differences between the tax bases of assets and liabilities and their reported amounts in the consolidated financial statements, net of operating loss carry forwards and credits. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Current income taxes are provided for in accordance with the laws of the relevant tax authorities. The Company adopted FASB ASC 740-10. The Company’s policy on classification of all interest and penalties related to unrecognized tax benefits, if any, as a component of income tax provisions. |
Foreign Currency Transactions and Translations Policy [Policy Text Block] | Foreign currency translation The functional currency of the Company excluding Agritech and State Harvest is Renminbi. Monetary assets and liabilities denominated in currencies other than Renminbi are translated into Renminbi at the rates of exchange ruling at the balance sheet date. Transactions in currencies other than Renminbi are converted into Renminbi at the applicable rates of exchange prevailing the transactions occurred. Transaction gains and losses are recognized in the consolidated statements of income and comprehensive income. The functional currency of Agritech and State Harvest are maintained in United State dollars. Assets and liabilities are translated at the exchange rates at the balance sheet date, equity accounts are translated at historical exchange rates and revenues, expenses, gains and losses are translated using the average rate for the period. Translation adjustments are reported as cumulative translation adjustments and are shown as a separate component of other comprehensive (loss)/income. The Company has chosen Renminbi as its reporting currency. |
Comprehensive Income, Policy [Policy Text Block] | Comprehensive income Comprehensive income is defined to include all changes in equity except those resulting from investments by owners and distributions to owners. Comprehensive income for the years has been disclosed within the consolidated statements of income and comprehensive income for presentational purpose of the disclosure of comprehensive income attributable to Agritech and the non-controlling interests respectively. |
Earnings Per Share, Policy [Policy Text Block] | Income per share Basic income per share is computed by dividing net income by the weighted average number of common shares outstanding during the years. Diluted income per share gives effect to all dilutive potential common shares outstanding during the years. The weighted average number of common shares outstanding is adjusted to include the number of additional common shares that would have been outstanding if the dilutive potential common shares had been issued. In computing the dilutive effect of potential common shares, the average stock price for the period is used in determining the number of treasury shares assumed to be purchased with the proceeds from the exercise of options. |
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block] | Share-based compensation The Company adopts FASB ASC 718-10. ASC 718-10 requires that share-based payment transactions with employees, such as share options, be measured based on the grant-date fair value of the equity instrument issued and recognized as compensation expense over the requisite service period, with a corresponding addition to equity. Under this method, compensation cost related to employee share options or similar equity instruments is measured at the grant date based on the fair value of the award and is recognized over the period during which an employee is required to provide service in exchange for the award, which generally is the vesting period. |
Fair Value Measurement, Policy [Policy Text Block] | Fair value measurement The Company adopted FASB ASC 820-10, and which defines fair value, establishes a framework for measuring fair value in GAAP, and expands disclosures about fair value measurements. ASC 820-10 does not require any new fair value measurements, but provides guidance on how to measure fair value by providing a fair value hierarchy used to classify the source of the information. ASC 820-10 establishes a three-level valuation hierarchy of valuation techniques based on observable and unobservable inputs, which may be used to measure fair value and include the following: Level 1 - Quoted prices in active markets for identical assets or liabilities. Level 2 - Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 - Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Classification within the hierarchy is determined based on the lowest level of input that is significant to the fair value measurement. |
Reclassification, Policy [Policy Text Block] | Reclassification For the year ended September 30, 2016, the Company recognized licensing, and conversion and testing services as revenue to align with the Company’s strategy to develop these businesses. Conversion and testing services income of RMB286 and RMB303 for the years ended September 30, 2014 and 2015, respectively, have been reclassified from other income to revenue to conform to current year presentations. There was no change to previously reported shareholders’ deficit or net loss. |
Working Capital Policy [Policy Text Block] | Working capital deficit and management’s plan The Company’s consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and liquidation of liabilities during the normal course of operations. The Company incurred net losses of RMB 10,140 17,814 76,833 90,381 136,399 116,808 182,386 On September 26, 2016, the Company entered into an agreement to sell its proprietary China-based commercial corn seed production and distribution business and related assets and the office building in Beijing as further described in note 25. Based on the agreement, the management expects to receive RMB 400,000 As management believes it can secure financial resources to satisfy the Company’s current liabilities and the capital expenditure needs in the next 12 months,our consolidated financial statements do not include any adjustments that might be necessary if we are unable to continue as a going concern. |
New Accounting Pronouncements, Policy [Policy Text Block] | · In May 2014, the FASB issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (Topic 606) The FASB issued ASU No. 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date Further to ASU No. 2014-09 and ASU No. 2015-14, the FASB issued ASU No. 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net), in March 2016, ASU No. 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing, in April 2016, and ASU No. 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients, in May 2016, respectively. The amendments in ASU No. 2016-08 clarify the implementation guidance on principal versus agent considerations, including indicators to assist an entity in determining whether it controls a specified good or service before it is transferred to the customers. ASU No. 2016-10 clarifies guideline related to identifying performance obligations and licensing implementation guidance contained in the new revenue recognition standard. The updates in ASU No. 2016-10 include targeted improvements based on input the FASB received from the Transition Resource Group for Revenue Recognition and other stakeholders. It seeks to proactively address areas in which diversity in practice potentially could arise, as well as to reduce the cost and complexity of applying certain aspects of the guidance both at implementation and on an ongoing basis. ASU No. 2016-12 addresses narrow-scope improvements to the guidance on collectability, non-cash consideration, and completed contracts at transition. Additionally, the amendments in this ASU provide a practical expedient for contract modifications at transition and an accounting policy election related to the presentation of sales taxes and other similar taxes collected from customers. The effective date and transition requirements for ASU No. 2016-08, ASU No. 2016-10 and ASU No. 2016-12 are the same as ASU No. 2014-09. The Company is currently in the process of evaluating the impact of the adoption of ASU No. 2014-09, ASU No. 2016-08, ASU No. 2016-10 and ASU No. 2016-12 on its consolidated financial statements and related disclosures. Recently issued accounting pronouncements · In June 2014, the FASB issued ASU No. 2014-12, CompensationStock Compensation (Topic 718): Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period (a consensus of the FASB Emerging Issues Task Force) · In August 2014, the FASB issued ASU No. 2014-15, Presentation of Financial Statements Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern. This ASU provides U.S. GAAP guidance on management’s responsibility in evaluating whether there is substantial doubt about a company’s ability to continue as a going concern and about related footnote disclosures. Currently, there is no guidance in the U.S. GAAP about management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern or to provide related footnote disclosures. The amendments in this ASU provide such guidance and should reduce diversity in the timing and content of footnote disclosures. The amendments in this ASU require management to assess an entity’s ability to continue as a going concern by incorporating and expanding upon certain principles that are currently in U.S. auditing standards. Specifically, the amendments (1) provide a definition of the term substantial doubt, (2) require an evaluation every reporting period including interim periods, (3) provide principles for considering the mitigating effect of management’s plans, (4) require certain disclosures when substantial doubt is alleviated as a result of consideration of management’s plans, (5) require an express statement and other disclosures when substantial doubt is not alleviated, and (6) require an assessment for a period of one year after the date that the financial statements are issued (or available to be issued). The amendments in this ASU are effective for the annual period ending after December 15, 2016, and for annual periods and interim periods thereafter. Early application is permitted. The Company is evaluating the effects, if any, that the adoption of the amendments in this ASU will have on the disclosure of the consolidated financial statements. · In February 2015, the FASB issued ASU No. 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis Recently issued accounting pronouncements · In June 2015, the FASB issued ASU No. 2015-10, Technical Corrections and Improvements · In July 2015, the FASB issued ASU No. 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory · In November 2015, the FASB issued ASU No. 2015-17, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes. Topic 740, Income Taxes, requires an entity to separate deferred income tax liabilities and assets into current and noncurrent amounts in a classified statement of financial position. Deferred tax liabilities and assets are classified as current or noncurrent based on the classification of the related asset or liability for financial reporting. Deferred tax liabilities and assets that are not related to an asset or liability for financial reporting are classified according to the expected reversal date of the temporary difference. To simplify the presentation of deferred income taxes, the amendments in ASU No. 2015-17 require that deferred income tax liabilities and assets be classified as noncurrent in a classified statement of financial position. For public business entities, the amendments in this update are effective for financial statements issued for annual periods beginning after December 15, 2016, and interim periods within those annual periods. The Company does not expect the adoption of ASU No. 2015-17 to have a material impact on its consolidated financial statements. Recently issued accounting pronouncements · In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. The amendments in this update require all equity investments to be measured at fair value with changes in the fair value recognized through net income (other than those accounted for under equity method of accounting or those that result in consolidation of the investee). The amendments in this update also require an entity to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments. In addition the amendments in this update eliminate the requirement for to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet for public entities. For public business entities, the amendments in ASU No. 2016-01 are effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. Except for the early application guidance discussed in ASU No. 2016-01, early adoption of the amendments in this update is not permitted. The Company does not expect the adoption of ASU No. 2016-01 to have a material impact on its consolidated financial statements. · In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842). The amendments in this update create Topic 842, Leases, and supersede the leases requirements in Topic 840, Leases. Topic 842 specifies the accounting for leases. The objective of Topic 842 is to establish the principles that lessees and lessors shall apply to report useful information to users of financial statements about the amount, timing, and uncertainty of cash flows arising from a lease. The main difference between Topic 842 and Topic 840 is the recognition of lease assets and lease liabilities for those leases classified as operating leases under Topic 840. Topic 842 retains a distinction between finance leases and operating leases. The classification criteria for distinguishing between finance leases and operating leases are substantially similar to the classification criteria for distinguishing between capital leases and operating leases in the previous leases guidance. The result of retaining a distinction between finance leases and operating leases is that under the lessee accounting model in Topic 842, the effect of leases in the statement of comprehensive income and the statement of cash flows is largely unchanged from previous GAAP. The amendments in ASU No. 2016-02 are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years for public business entities. Early application of the amendments in ASU No. 2016-02 is permitted. The Company is currently in the process of evaluating the impact of the adoption of ASU No. 2016-02 on its consolidated financial statements. · In April 2016, the FASB issued ASU No. 2016-09, CompensationStock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting, which simplifies several aspects of the accounting for employee share-based payment transactions. The areas for simplification in ASU No. 2016-09 include the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. The amendments in this ASU will be effective for annual periods beginning after December 15, 2016 and interim periods within those annual periods. Early adoption is permitted. The Company is currently evaluating the impact of the adoption of ASU No. 2016-09 on its consolidated financial statements. Recently issued accounting pronouncements · In June 2016, the FASB issued ASU No. 2016-13, Financial InstrumentsCredit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. Financial InstrumentsCredit Losses (Topic 326) amends guideline on reporting credit losses for assets held at amortized cost basis and available-for-sale debt securities. For assets held at amortized cost basis, Topic 326 eliminates the probable initial recognition threshold in current GAAP and, instead, requires an entity to reflect its current estimate of all expected credit losses. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of the financial assets to present the net amount expected to be collected. For available-for-sale debt securities, credit losses should be measured in a manner similar to current GAAP, however Topic 326 will require that credit losses be presented as an allowance rather than as a write-down. ASU No. 2016-13 affects entities holding financial assets and net investment in leases that are not accounted for at fair value through net income. The amendments affect loans, debt securities, trade receivables, net investments in leases, off balance sheet credit exposures, reinsurance receivables, and any other financial assets not excluded from the scope that have the contractual right to receive cash. The amendments in this ASU will be effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. The Company is currently evaluating the impact of the adoption of ASU No. 2016-13 on its consolidated financial statements. · In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments, which addresses the following eight specific cash flow issues: Debt prepayment or debt extinguishment costs; settlement of zero-coupon debt instruments or other debt instruments with coupon interest rates that are insignificant in relation to the effective interest rate of the borrowing; contingent consideration payments made after a business combination; proceeds from the settlement of insurance claims; proceeds from the settlement of corporate-owned life insurance policies (including bank-owned life insurance policies; distributions received from equity method investees; beneficial interests in securitization transactions; and separately identifiable cash flows and application of the predominance principle. The amendments in this ASU are effective for public business entities for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted, including adoption in an interim period. The Company is currently evaluating the impact of the adoption of ASU No. 2016-15 on its consolidated financial statements. |
ORGANIZATION AND PRINCIPAL AC36
ORGANIZATION AND PRINCIPAL ACTIVITIES (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Organization, Consolidation and Presentation Of Financial Statements [Abstract] | |
Schedule Of Subsidiaries and Variable Interest Entities [Table Text Block] | Date of Place of Percentage Incorporation Incorporation of Principal Name or Establishment or Establishment Ownership Activity Subsidiaries: State Harvest Holdings October 6, 2004 British Virgin 100% Investment Beijing Origin State Harvest December 1, 2004 People’s Republic 100% Hybrid seed Origin Agritech USA LLC August 12, 2016 United States 100% Hybrid seed Variable interest entity: Beijing Origin Seed Limited (note (i)) (“Beijing Origin”) December 26, 1997 PRC - Hybrid crop seed Subsidiaries held by Beijing Origin: Henan Origin Cotton Technology Development Limited (note (i)) March 2, 2001 PRC 92.04% Hybrid crop seed Changchun Origin Seed Technology Development Limited (note (i)) April 29, 2003 PRC 99.83% Hybrid crop seed Linze Origin Seed Limited November 18, 2008 PRC 100% Hybrid crop seed Xinjiang Originbo Seed Company Limited (note (i)) (“Xinjiang Origin”) July 13, 2011 PRC 51% Hybrid crop seed Denong Zhengcheng Seed Limited (“Denong”) June 21, 2000 PRC 98.58% Hybrid seed Note (i): Beijing Origin Seed Limited, Henan Origin Cotton Technology Development Limited, Changchun Origin Seed Technology Development Limited, Linze Origin Seed Limited and Xinjiang Originbo Seed Company Limited are collectively referred to as “Beijing Origin”. |
Schedule of Disposal Groups, Including Discontinued Operations, Income Statement, Balance Sheet and Additional Disclosures [Table Text Block] | The Company has aggregated the financial information of Beijing Origin and its subsidiaries in the table below. The aggregated carrying amount of assets and liabilities of Beijing Origin and its subsidiaries after elimination of intercompany transactions and balances consolidated in the Company’s consolidated balance sheets as of September 30, 2015 and 2016 are as follows: Risks in relation to the VIE structure September 30, 2015 2016 2016 RMB RMB US$ ASSETS Current Assets Cash and cash equivalents 65,138 53,855 8,065 Restricted cash - 21,181 3,172 Accounts receivable 2,051 491 74 Advances to suppliers 20,796 21,672 3,245 Advances to growers 10,483 6,885 1,031 Inventories 439,518 368,042 55,114 Income tax recoverable 49 48 7 Other current assets 4,292 4,730 708 Total current assets 542,327 476,904 71,416 Restricted cash 20,280 - - Land use rights, net 31,722 30,740 4,603 Plant and equipment, net 324,812 313,688 46,975 Equity investments 18,721 18,721 2,803 Goodwill 11,973 11,973 1,793 Acquired intangible assets, net 22,593 16,961 2,540 Other assets 3,079 2,410 362 Total assets 975,507 871,397 130,492 LIABILITIES Current liabilities Short-term borrowings 220,000 190,000 28,452 Current portion of long-term borrowings 24,000 7,023 1,052 Accounts payable 4,386 4,371 655 Due to growers 17,337 19,926 2,984 Due to related parties 40,757 103,905 15,560 Advance from customers 264,168 208,464 31,217 Deferred revenues 11,248 7,008 1,049 Income tax payable 37 - - Other payables and accrued expenses 49,845 53,216 7,969 Total current liabilities 631,778 593,913 88,938 Long-term borrowings 27,023 20,000 2,995 Other long-term liability 19,939 27,507 4,120 Total liabilities 678,740 641,420 96,053 |
SUMMARY OF SIGNIFICANT ACCOUN37
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Accounting Policies [Abstract] | |
Estimated Useful Lives Of Assets [Table Text Block] | Depreciation is calculated on a straight-line basis over the following estimated useful lives: Plant and building 20-40 years Machinery and equipment 10-15 years Furniture and office equipment 5-8 years Motor vehicles 5-10 years Leasehold improvements Shorter of the useful lives or the lease term |
Schedule of Goodwill [Table Text Block] | The movement for goodwill is as follow: September 30, 2014 2015 2016 RMB RMB RMB Balance at beginning of year 11,973 11,973 11,973 Additions - - - Written off - - - 11,973 11,973 11,973 |
Estimated Useful Lives Of Intangible Assets [Table Text Block] | Amortization is calculated on a straight-line basis over the following estimated useful lives for the main acquired intangible assets: Technology rights for licensed seeds 3-20 years Distribution network 6-14 years Trademark Indefinite |
RELATED PARTY BALANCES AND TR38
RELATED PARTY BALANCES AND TRANSACTIONS (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Related Party Transactions [Abstract] | |
Schedule Of Amounts Due To Related Parties [Table Text Block] | (2) Due to related parties September 30, 2015 2016 RMB RMB Henan Agriculture University 1,000 1,000 Beijing Shihui(note (i)) 29,703 91,304 Xinjiang Ginbo Seeds Center(note (ii)) 10,054 10,000 Companies controlled by the Company’s directors 1,511 1,585 Ex-shareholders of State Harvest 16 16 42,284 103,905 Note (i): The balance as of September 30, 2016 represented the advance from Beijing Shihui for its seed sales. Note (ii): Xinjiang Origin, the subsidiary of the Company, has received a cash advance of RMB 10,000 |
Schedule of Related Party Transactions [Table Text Block] | (3) Transactions with related parties (a) Sales to Year ended September 30, 2014 2015 2016 RMB RMB RMB Beijing Shihui - 40,586 102,234 (b) Technology usage fees charged by Year ended September 30, 2014 2015 2016 RMB RMB RMB Henan Agriculture University - - 1,000 Liyu 4,838 - - Neijiang Agriculture Institute 500 - - 5,338 - 1,000 The above amounts related to technology usage fees paid to certain related party research centers for the exclusive right to use certain seed technologies. (c) Dividend received from Year ended September 30, 2014 2015 2016 RMB RMB RMB Liyu 3,000 - - (d) Rental income received from Year ended September 30, 2014 2015 2016 RMB RMB RMB Beijing Shihui - - 250 |
ACCOUNTS RECEIVABLE (Tables)
ACCOUNTS RECEIVABLE (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Accounts Receivable [Abstract] | |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | Allowance for doubtful account is as follows: Year ended September 30, 2014 2015 2016 RMB RMB RMB Balance at beginning of year 12,110 5,881 4,845 Additions 15 - 242 Reversal of recovered debts (627) (1,036) - Derecognition upon disposal of a subsidiary (5,617) - - Balance at end of year 5,881 4,845 5,087 |
ADVANCES TO SUPPLIERS (Tables)
ADVANCES TO SUPPLIERS (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Advances To Suppliers [Abstract] | |
Schedule Of Prepaid Expenses and Other Assets [Table Text Block] | Advances to suppliers consist of the following: September 30, 2015 2016 RMB RMB Purchases of materials 4,767 315 Prepayments for advertisement 3,083 3,141 Prepayments for transportation fee 2 2 Prepayments for operating lease 204 - Prepayments for testing fee 289 475 Utility deposit 476 86 Deposits for research and development fee 865 830 Prepayments for professional fee - 328 Others 798 2,186 10,484 7,363 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory, Current [Table Text Block] | Inventories consist of the following: September 30, 2015 2016 RMB RMB Work in progress and supplies 420,655 385,790 Finished goods 65,080 39,426 Provision (46,173) (57,130) 439,562 368,086 |
Schedule Of Provision For Inventories [Table Text Block] | Provision for inventories is as below: Years ended September 30, 2014 2015 2016 RMB RMB RMB Balance at beginning of year 52,301 53,587 46,173 Additions 21,984 10,965 20,502 Write-off (20,698) (18,379) (9,545) Balance at end of year 53,587 46,173 57,130 |
OTHER CURRENT ASSETS (Tables)
OTHER CURRENT ASSETS (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Other Current Assets [Abstract] | |
Schedule of Other Current Assets [Table Text Block] | Other current assets consist of the following: September 30, 2015 2016 RMB RMB Advances to staff for business use 2,911 2,998 Deposits for rental 1,130 1,099 Others 752 656 4,793 4,753 |
LAND USE RIGHTS, NET (Tables)
LAND USE RIGHTS, NET (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Land Use Rights [Abstract] | |
Schedule of Finite-Lived Intangible Assets [Table Text Block] | Land use rights, net consist of the following: September 30, 2015 2016 RMB RMB Land use rights 38,576 38,575 Accumulated amortization (6,854) (7,835) Land use rights, net 31,722 30,740 |
PLANT AND EQUIPMENT, NET (Table
PLANT AND EQUIPMENT, NET (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment [Table Text Block] | Plant and equipment, net consist of the following: September 30, 2015 2016 RMB RMB Plant and building 252,664 253,739 Machinery and equipment 163,013 170,485 Furniture and office equipment 12,955 12,914 Motor vehicles 9,963 9,285 Total 438,595 446,423 Accumulated depreciation (118,064) (138,640) Construction in progress 4,374 5,966 Plant and equipment, net 324,905 313,749 |
LONG-TERM INVESTMENTS (Tables)
LONG-TERM INVESTMENTS (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Schedule of Investments in and Advances to Affiliates, Schedule of Investments [Table Text Block] | Equity investments consist of the following: September 30, 2015 2016 RMB RMB Cost method investment 18,721 18,721 |
ACQUIRED INTANGIBLE ASSETS, N46
ACQUIRED INTANGIBLE ASSETS, NET (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Acquired Finite-Lived Intangible Assets by Major Class [Table Text Block] | Acquired intangible assets, net consist of the following: September 30, 2015 2016 RMB RMB Technology rights for licensed seeds 99,602 100,602 Distribution network 6,739 6,739 Others 7,584 7,834 113,925 115,175 Accumulated amortization (78,221) (85,931) Impairment provision (4,314) (4,314) Acquired intangible assets, net 31,390 24,930 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | Amortization expense on these intangible assets for each of the next five years is as follows: Year ending September 30, RMB 2017 5,629 2018 5,312 2019 3,608 2020 2,179 2021 1,980 Total 18,708 |
OTHER ASSETS (Tables)
OTHER ASSETS (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of Other Assets [Table Text Block] | Other assets consist of the following: September 30, 2015 2016 RMB RMB Prepaid lease 2,796 2,368 Deposits for purchase of plant and equipment 233 - Others 50 42 3,079 2,410 |
BORROWINGS (Tables)
BORROWINGS (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Debt Disclosure [Abstract] | |
Schedule of Debt [Table Text Block] | September 30, 2015 2016 RMB RMB Short-term borrowings 220,000 190,000 Current portion of long-term borrowings 24,000 27,057 Long-term borrowings 40,972 20,000 |
OTHER PAYABLES AND ACCRUED EX49
OTHER PAYABLES AND ACCRUED EXPENSES (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Payables and Accruals [Abstract] | |
Schedule of Accounts Payable and Accrued Liabilities [Table Text Block] | Other payables and accrued expenses consist of: September 30, 2015 2016 RMB RMB Payable for purchase of plant and equipment 1,262 1,355 Payable for purchase of land use rights 620 620 Payable for purchase of construction-in-progress 12,776 8,850 Professional fee payable 1,500 9,154 Salaries and bonus payable 10,869 10,699 Accrued interest 1,813 1,813 Other taxes payable 731 658 Deposits from growers 969 355 Deposits from others 2,035 7,684 Payable for labor union, housing fund and education expenses 738 785 Deferred government subsidies 9,575 6,172 Others 7,410 5,243 50,298 53,388 |
SHARE OPTION PLANS (Tables)
SHARE OPTION PLANS (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Disclosure Of Compensation Related Costs, Share-Based Payments [Abstract] | |
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | A summary of the share option activity under the 2005, 2009 and 2014 Plans is as follows: Tranche Tranche Tranche Tranche Tranche Tranche 10 Tranche 11 Tranche 12 Tranche 13 Tranche 14 5 6 7 8 9 January 3 January 3 January 3, January 2, January 2, January 2, January 4, April 19, May 16, August 3, Grant date 2010 , 2011 2012 2013 2014 2015 2016 2016 2016 2016 Options outstanding as of October 1, 2014 120,000 115,000 365,000 360,000 350,000 - - - - - Number of options granted - - - - - 195,000 - - - - Options cancelled/expired (120,000) - (5,000) (5,000) (5,000) - - - - - Options outstanding as of September 30, 2015 - 115,000 360,000 355,000 345,000 195,000 - - - - Number of options granted - - - - 185,000 600,000 200,000 200,000 Options cancelled/expired - (115,000) - - - - - - - - Outstanding as of September 30, 2016 - - 360,000 355,000 345,000 195,000 185,000 600,000 200,000 200,000 Options vested and exercisable At September 30, 2015 - 115,000 360,000 355,000 345,000 195,000 - - - - At September 30, 2016 - - 360,000 355,000 345,000 195,000 185,000 600,000 200,000 200,000 Weighted average fair value at the grant date (USD) 7.20 6.08 1.45 0.76 0.65 0.75 0.90 1.54 1.24 1.44 |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | The fair value of each option granted is estimated on the date of grant using the Black-Scholes Option Pricing Model: Tranche 5 Tranche 6 Tranche 7 Tranche 8 Tranche 9 Tranche 10 Tranche 11 Tranche 12 Tranche 13 Tranche 14 Exercise price (US$) 12.23 10.84 2.55 1.44 1.27 1.48 1.38 2.05 1.65 2.00 Average risk-free interest rate 1.66 % 1.03 % 0.40 % 0.37 % 0.76 % 1.07 % 1.73 % 1.79 % 1.75 % 1.55 % Expected option life (year) 3 3 3 3 3 3 5 10 10 10 Volatility rate 92.81 % 88.03 % 90.30 % 81.98 % 79.20 % 79.67 % 80.72 % 69.27 % 69.92 % 65.37 % Dividend yield - - - - - - - - - - |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | The provision for income taxes expenses consists of the following: Year ended September 30, 2014 2015 2016 RMB RMB RMB Current 677 1,295 1,436 Deferred - - - Reversal of contingent tax liability (39,060) - - (38,383) 1,295 1,436 |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | The principal components of the deferred income tax assets are as follows: September 30, 2015 2016 RMB RMB Non-current deferred tax assets: Net operating loss carry forward 26,547 25,964 Impairment on inventory 9,420 11,213 Others 9,292 9,734 Non-current deferred income tax assets 45,259 46,911 Valuation allowances (45,259) (46,911) Net non-current deferred income tax assets - - |
Summary of Operating Loss Carryforwards [Table Text Block] | The expiration period of unused tax losses is as follows: Year ended September 30, 2015 2016 RMB RMB Calendar year ending, 2015 10,278 - 2016 49,532 40,099 2017 21,254 21,254 2018 5,290 5,290 2019 35,477 24,931 2020 - 24,154 121,831 115,728 |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | Reconciliation between total income tax expenses and the amount computed by applying the statutory income tax rate to income before taxes is as follows: Year ended September 30, 2014 2015 2016 % % % Statutory rate 25 25 25 Effect of preferential tax treatment (2) (7) (5) Effect of different tax jurisdiction (3) (7) (6) Permanent book-tax difference 9 11 (3) Change in valuation allowance (2) 10 (7) Utilization of tax loss previously not recognized - - - Under/(Over) provision in prior year (29) (40) (6) Reversal of contingent tax liability 90 - - Effective income tax rate 88 (8) (2) |
LOSS PER SHARE (Tables)
LOSS PER SHARE (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | The following table sets forth the computation of basic and diluted loss per share for the years indicated: Year ended September 30, 2014 2015 2016 RMB RMB RMB Net loss (numerator), basic and diluted (9,527) (13,808) (65,578) Shares (denominator): Common stock outstanding 22,743,853 22,813,541 22,873,541 Weighted average common stock outstanding used in computing basic and diluted income per share 22,743,853 22,794,791 22,858,541 Net loss per share-basic and diluted (0.42) (0.61) (2.87) |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Long-term Purchase Commitment [Table Text Block] | As of September 30, 2015 and 2016, capital commitments for the purchase of long-term assets are as follows: September 30, 2015 2016 RMB RMB Equipment 4,877 4,172 Intangible assets - 1,000 4,877 5,172 |
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | As of September 30, 2016, the Company was obligated under operating leases requiring minimum rental as follows: RMB Year ending September 30, 2017 1,642 2018 654 2019 470 2020 457 Thereafter 3,468 6,691 |
SEGMENT AND GEOGRAPHIC INFORM54
SEGMENT AND GEOGRAPHIC INFORMATION (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Net revenues, income (loss) from operations and total assets of the Company’s reportable segments are as follows: Year ended September 30, 2014 2015 2016 RMB RMB RMB Segment net revenues Production and distribution of hybrid seeds 414,891 376,250 334,769 Agri-biotech and product development 3,536 3,560 3,495 Segment total net revenues 418,427 379,810 338,264 Inter-segment sales eliminations (3,250) (3,257) (3,013) Reconciliation to consolidated revenues 415,177 376,553 335,251 Segment operating income(loss) Production and distribution of hybrid seeds 10,691 38,709 263 Agri-biotech and product development (24,328) (26,501) (31,205) Total segment operating income(loss) (13,637) 12,208 (30,942) Less: Unallocated corporate operating expenses, net 10,842 10,868 30,366 Reconciliation to consolidated income (loss) from operations (24,479) 1,340 (61,308) September 30, 2015 2016 RMB RMB Segment identifiable assets: Production and distribution of hybrid seeds 916,088 803,420 Agri-biotech and product development 187,223 189,446 Segment total identifiable assets 1,103,311 992,866 Receivables elimination (117,482) (112,240) Reconciliation to consolidated total assets 985,829 880,626 Supplemental disclosures of segment information: Year ended September 30, 2014 2015 2016 RMB RMB RMB Segment depreciation and amortization Production and distribution of hybrid seeds 27,567 29,668 30,365 Agri-biotech and product development 957 879 857 Reconciliation to consolidated depreciation and amortization 28,524 30,547 31,222 Segment capital expenditure to long-lived assets Production and distribution of hybrid seeds 22,615 20,531 16,964 Agri-biotech and product development - - - Reconciliation to consolidated expenditure on the purchase of plant and equipment, land use rights and intangible assets 22,615 20,531 16,964 |
CONDENSED FINANCIAL INFORMATI55
CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Condensed Financial Information Of Parent Company Only Disclosure [Abstract] | |
Schedule of Condensed Balance Sheet [Table Text Block] | September 30 2015 2016 2016 RMB RMB US$ ASSETS Current assets Cash and cash equivalents 341 581 87 Other receivables 3 3 - Prepaid expenses 481 - - Due from inter-companies 125,815 129,811 19,439 Total current assets 126,640 130,395 19,526 Investment in unconsolidated subsidiaries 130,013 71,512 10,709 Total assets 256,653 201,907 30,235 LIABILITIES AND EQUITY Current liabilities Due to related parties 1,511 1,586 237 Total current liabilities 1,511 1,586 237 Long-term borrowings 13,948 20,033 3,000 Total liabilities 15,459 21,619 3,237 Total stockholders’ equity 241,194 180,288 26,998 Total liabilities and stockholders’ equity 256,653 201,907 30,235 |
Schedule of Comprehensive Income (Loss) [Table Text Block] | Year ended September 30, 2014 2015 2016 2016 RMB RMB RMB US$ Revenues 286 303 204 31 Cost of revenues - - - - Operating expenses General and administrative (5,025) (4,335) (16,035) (2,401) Loss from operations (4,739) (4,032) (15,831) (2,370) Equity in earnings loss of unconsolidated subsidiaries (43,579) (9,223) (49,009) (7,339) Interest expense (268) (553) (738) (111) Loss before income taxes (48,586) (13,808) (65,578) (9,820) Income tax (expense) benefits Income tax expense - - - - Reversal of contingent tax liability 39,059 - - - Income tax benefits 39,059 - - - Net loss (9,527) (13,808) (65,578) (9,820) Other comprehensive loss Foreign currency translation difference (56) (2,607) (4,124) (618) Total comprehensive loss (9,583) (16,415) (69,702) (10,438) |
Schedule of Condensed Cash Flow Statement [Table Text Block] | Year ended September 30, 2014 2015 2016 2016 RMB RMB RMB US$ Net cash used in operating activities (3,288) (7,242) (20,009) (2,996) Net cash provided by (used in) financing activities (452) 3,255 14,881 2,228 Net increase in cash and cash equivalents (3,740) (3,987) (5,128) (768) Cash and cash equivalents, beginning of year 4,332 671 341 51 Effect of exchange rate changes on cash and cash equivalents 79 3,657 5,368 804 Cash and cash equivalents, end of year 671 341 581 87 |
ORGANIZATION AND PRINCIPAL AC56
ORGANIZATION AND PRINCIPAL ACTIVITIES (Details) | 12 Months Ended | |
Sep. 30, 2016 | ||
Beijing Origin Seed Limited [Member] | ||
Entity Incorporation, Date of Incorporation or Establishment | Dec. 26, 1997 | [1] |
Entity Incorporation, Place of Incorporation or Establishment | PRC | [1] |
Percentage of Ownership | 0.00% | [1] |
Principal Activity | Hybrid crop seed development, production and Distribution | [1] |
Henan Origin Cotton Technology Development Limited [Member] | ||
Entity Incorporation, Date of Incorporation or Establishment | Mar. 2, 2001 | [1] |
Entity Incorporation, Place of Incorporation or Establishment | PRC | [1] |
Percentage of Ownership | 92.04% | [1] |
Principal Activity | Hybrid crop seed development, production and distribution | [1] |
Changchun Origin Seed Technology Development Limited [Member] | ||
Entity Incorporation, Date of Incorporation or Establishment | Apr. 29, 2003 | [1] |
Entity Incorporation, Place of Incorporation or Establishment | PRC | [1] |
Percentage of Ownership | 99.83% | [1] |
Principal Activity | Hybrid crop seed development, production and distribution | [1] |
Linze Origin Seed Limited [Member] | ||
Entity Incorporation, Date of Incorporation or Establishment | Nov. 18, 2008 | [1] |
Entity Incorporation, Place of Incorporation or Establishment | PRC | [1] |
Percentage of Ownership | 100.00% | [1] |
Principal Activity | Hybrid crop seed development, production and distribution | [1] |
Xinjiang Originbo Seed Company Limited [Member] | ||
Entity Incorporation, Date of Incorporation or Establishment | Jul. 13, 2011 | [1] |
Entity Incorporation, Place of Incorporation or Establishment | PRC | [1] |
Percentage of Ownership | 51.00% | [1] |
Principal Activity | Hybrid crop seed development, production and distribution | [1] |
Denong Zhengcheng Seed Limited [Member] | ||
Entity Incorporation, Date of Incorporation or Establishment | Jun. 21, 2000 | |
Entity Incorporation, Place of Incorporation or Establishment | PRC | |
Percentage of Ownership | 98.58% | |
Principal Activity | Hybrid seed development, production and distribution | |
State Harvest Holdings Limited [Member] | ||
Entity Incorporation, Date of Incorporation or Establishment | Oct. 6, 2004 | |
Entity Incorporation, Place of Incorporation or Establishment | British Virgin Islands | |
Percentage of Ownership | 100.00% | |
Principal Activity | Investment Holding | |
Beijing Origin State Harvest Biotechnology Limited [Member] | ||
Entity Incorporation, Date of Incorporation or Establishment | Dec. 1, 2004 | |
Entity Incorporation, Place of Incorporation or Establishment | People’s Republic of China (“PRC”) | |
Percentage of Ownership | 100.00% | |
Principal Activity | Hybrid seed technology development | |
Origin Agritech USA LLC [Member] | ||
Entity Incorporation, Date of Incorporation or Establishment | Aug. 12, 2016 | |
Entity Incorporation, Place of Incorporation or Establishment | United States of America (“USA”) | |
Percentage of Ownership | 100.00% | |
Principal Activity | Hybrid seed technology development | |
[1] | Beijing Origin Seed Limited, Henan Origin Cotton Technology Development Limited, Changchun Origin Seed Technology Development Limited, Linze Origin Seed Limited and Xinjiang Originbo Seed Company Limited are collectively referred to as “Beijing Origin”. |
ORGANIZATION AND PRINCIPAL AC57
ORGANIZATION AND PRINCIPAL ACTIVITIES (Details 1) ¥ in Thousands, $ in Thousands | Sep. 30, 2016CNY (¥) | Sep. 30, 2016USD ($) | Sep. 30, 2015CNY (¥) | Sep. 30, 2015USD ($) | Sep. 30, 2014CNY (¥) | Sep. 30, 2013CNY (¥) |
Current Assets | ||||||
Cash and cash equivalents | ¥ 54,509 | $ 8,163 | ¥ 66,025 | $ 9,888 | ¥ 46,268 | ¥ 131,978 |
Accounts receivable | 491 | 74 | 2,051 | |||
Advances to suppliers | 7,363 | 1,103 | 10,484 | |||
Advances to growers | 21,672 | 3,245 | 20,796 | |||
Inventories | 368,086 | 55,121 | 439,562 | |||
Income tax recoverable | 48 | 7 | 48 | |||
Other current assets | 4,753 | 711 | 4,793 | |||
Total current assets | 478,103 | 71,596 | 543,759 | |||
Restricted cash | 0 | 0 | 20,280 | |||
Land use rights, net | 30,740 | 4,603 | 31,722 | |||
Plant and equipment, net | 313,749 | 46,984 | 324,905 | |||
Goodwill | 11,973 | 1,793 | 11,973 | ¥ 11,973 | ¥ 11,973 | |
Acquired intangible assets, net | 24,930 | 3,733 | 31,390 | |||
Other assets | 2,410 | 362 | 3,079 | |||
Total assets | 880,626 | 131,874 | 985,829 | |||
Current liabilities | ||||||
Short-term borrowings | 190,000 | 28,453 | 220,000 | |||
Current portion of long-term borrowings | 27,057 | 4,052 | 24,000 | |||
Accounts payable | 4,374 | 655 | 4,389 | |||
Due to growers | 19,926 | 2,984 | 17,337 | |||
Due to related parties | 103,905 | 15,560 | 42,284 | |||
Advance from customers | 208,844 | 31,274 | 264,547 | |||
Deferred revenues | 7,008 | 1,049 | 11,248 | |||
Income tax payable | 0 | 0 | 37 | |||
Other payables and accrued expenses | 53,388 | 7,995 | 50,298 | |||
Total current liabilities | 614,502 | 92,022 | 634,140 | |||
Long-term borrowings | 20,000 | 2,995 | 40,972 | |||
Other long-term liability | 27,507 | 4,119 | 19,939 | |||
Total liabilities | 662,009 | 99,136 | 695,051 | |||
Variable Interest Entity [Member] | ||||||
Current Assets | ||||||
Cash and cash equivalents | 53,855 | 8,065 | 65,138 | |||
Restricted cash | 21,181 | 3,172 | 0 | |||
Accounts receivable | 491 | 74 | 2,051 | |||
Advances to suppliers | 21,672 | 3,245 | 20,796 | |||
Advances to growers | 6,885 | 1,031 | 10,483 | |||
Inventories | 368,042 | 55,114 | 439,518 | |||
Income tax recoverable | 48 | 7 | 49 | |||
Other current assets | 4,730 | 708 | 4,292 | |||
Total current assets | 476,904 | 71,416 | 542,327 | |||
Restricted cash | 0 | 0 | 20,280 | |||
Land use rights, net | 30,740 | 4,603 | 31,722 | |||
Plant and equipment, net | 313,688 | 46,975 | 324,812 | |||
Equity investments | 18,721 | 2,803 | 18,721 | |||
Goodwill | 11,973 | 1,793 | 11,973 | |||
Acquired intangible assets, net | 16,961 | 2,540 | 22,593 | |||
Other assets | 2,410 | 362 | 3,079 | |||
Total assets | 871,397 | 130,492 | 975,507 | |||
Current liabilities | ||||||
Short-term borrowings | 190,000 | 28,452 | 220,000 | |||
Current portion of long-term borrowings | 7,023 | 1,052 | 24,000 | |||
Accounts payable | 4,371 | 655 | 4,386 | |||
Due to growers | 19,926 | 2,984 | 17,337 | |||
Due to related parties | 103,905 | 15,560 | 40,757 | |||
Advance from customers | 208,464 | 31,217 | 264,168 | |||
Deferred revenues | 7,008 | 1,049 | 11,248 | |||
Income tax payable | 0 | 0 | 37 | |||
Other payables and accrued expenses | 53,216 | 7,969 | 49,845 | |||
Total current liabilities | 593,913 | 88,938 | 631,778 | |||
Long-term borrowings | 20,000 | 2,995 | 27,023 | |||
Other long-term liability | 27,507 | 4,120 | 19,939 | |||
Total liabilities | ¥ 641,420 | $ 96,053 | ¥ 678,740 |
ORGANIZATION AND PRINCIPAL AC58
ORGANIZATION AND PRINCIPAL ACTIVITIES (Details Textual) ¥ in Thousands, $ in Thousands | 1 Months Ended | 12 Months Ended | |||
Dec. 31, 2004 | Sep. 30, 2016CNY (¥) | Sep. 30, 2015CNY (¥) | Sep. 30, 2014 | Sep. 30, 2016USD ($) | |
Variable Interest Entity, Consolidated, Carrying Amount, Assets | ¥ 243,469 | $ 247,231 | |||
Inventory [Member] | |||||
Variable Interest Entity, Consolidated, Carrying Amount, Assets | ¥ 36,436 | 27,323 | |||
Plant and Equipment [Member] | |||||
Variable Interest Entity, Consolidated, Carrying Amount, Assets | 192,928 | 197,627 | |||
Land Use Rights [Member] | |||||
Variable Interest Entity, Consolidated, Carrying Amount, Assets | ¥ 17,867 | ¥ 18,519 | |||
State Harvest Holdings Limited [Member] | |||||
Share Exchange Transaction Variable Interest Entity Voting Rights Assigned | 97.96% | ||||
Period Of Operations | 20 years | ||||
Assets Disposed Of By Methods Other Than Sale In Period Of Disposition | 50.00% | ||||
State Harvest Holdings Limited [Member] | Criteria One [Member] | |||||
Business Combination Restriction On Control Obtained Description | 49 | ||||
State Harvest Holdings Limited [Member] | Criteria Two [Member] | |||||
Business Combination Restriction On Control Obtained Description | 49 | ||||
Beijing Origin Seed Limited [Member] | |||||
Variable Interest Entity Revenue Percentage | 99.86% | 99.92% | 99.93% | ||
Variable Interest Entity Total Assets Percentage | 98.98% | 98.95% |
SUMMARY OF SIGNIFICANT ACCOUN59
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) | 12 Months Ended |
Sep. 30, 2016 | |
Leasehold Improvements [Member] | |
Property, Plant and Equipment, Estimated Useful Lives | Shorter of the useful lives or the lease term |
Maximum [Member] | Plant and Building [Member] | |
Property, Plant and Equipment, Useful Life | 40 years |
Maximum [Member] | Machinery and Equipment [Member] | |
Property, Plant and Equipment, Useful Life | 15 years |
Maximum [Member] | Furniture and Office Equipment [Member] | |
Property, Plant and Equipment, Useful Life | 8 years |
Maximum [Member] | Vehicles [Member] | |
Property, Plant and Equipment, Useful Life | 10 years |
Minimum [Member] | Plant and Building [Member] | |
Property, Plant and Equipment, Useful Life | 20 years |
Minimum [Member] | Machinery and Equipment [Member] | |
Property, Plant and Equipment, Useful Life | 10 years |
Minimum [Member] | Furniture and Office Equipment [Member] | |
Property, Plant and Equipment, Useful Life | 5 years |
Minimum [Member] | Vehicles [Member] | |
Property, Plant and Equipment, Useful Life | 5 years |
SUMMARY OF SIGNIFICANT ACCOUN60
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 1) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Sep. 30, 2016CNY (¥) | Sep. 30, 2016USD ($) | Sep. 30, 2015CNY (¥) | Sep. 30, 2014CNY (¥) | |
Balance at beginning of year | ¥ 11,973 | ¥ 11,973 | ¥ 11,973 | |
Additions | 0 | 0 | 0 | |
Written off | 0 | 0 | 0 | |
Balance at ending of year | ¥ 11,973 | $ 1,793 | ¥ 11,973 | ¥ 11,973 |
SUMMARY OF SIGNIFICANT ACCOUN61
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 2) | 12 Months Ended |
Sep. 30, 2016 | |
Maximum [Member] | Technology Rights [Member] | |
Finite-Lived Intangible Asset, Useful Life | 20 years |
Maximum [Member] | Distribution Rights [Member] | |
Finite-Lived Intangible Asset, Useful Life | 14 years |
Minimum [Member] | Technology Rights [Member] | |
Finite-Lived Intangible Asset, Useful Life | 3 years |
Minimum [Member] | Distribution Rights [Member] | |
Finite-Lived Intangible Asset, Useful Life | 6 years |
SUMMARY OF SIGNIFICANT ACCOUN62
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Textual) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||||
Sep. 30, 2016CNY (¥) | Sep. 30, 2016USD ($) | Sep. 30, 2015CNY (¥) | Sep. 30, 2014CNY (¥) | Sep. 30, 2016USD ($) | Sep. 26, 2016CNY (¥) | |
Foreign Currency Exchange Rate, Translation | 6.6778 | 6.6778 | ||||
Government Subsidies Recognized | ¥ 4,582 | ¥ 5,525 | ¥ 2,764 | |||
Selling and marketing | ¥ 38,079 | $ 5,702 | 39,987 | 58,972 | ||
Lease Term Description | lease term is at least 75% of the propertys estimated remaining economic life or d) the present value of the minimum lease payments at the beginning of the lease term is 90% or more of the fair value of the leased property to the lessor at the inception date. | lease term is at least 75% of the propertys estimated remaining economic life or d) the present value of the minimum lease payments at the beginning of the lease term is 90% or more of the fair value of the leased property to the lessor at the inception date. | ||||
Net Income (Loss), Including Portion Attributable To Noncontrolling Interest | ¥ (76,833) | $ (11,506) | (17,814) | (10,140) | ||
Retained Earnings (Accumulated Deficit) | (182,386) | (116,808) | $ (27,312) | |||
Working Capital Deficit | 136,399 | 90,381 | ||||
China-Based Commercial Corn Seed Production and Distribution Business [Member] | ||||||
Expected Cash Proceeds From Sale Of Business | ¥ 400,000 | |||||
Advertising Expenses [Member] | ||||||
Advertising Expense | 6,919 | 5,655 | 15,918 | |||
Shipping HandlingAnd Transportation Cost [Member] | ||||||
Selling and marketing | 8,168 | 7,238 | ¥ 9,561 | |||
Research and Development [Member] | ||||||
Government Subsidies Recognized | ¥ 10,368 | ¥ 7,076 |
RELATED PARTY BALANCES AND TR63
RELATED PARTY BALANCES AND TRANSACTIONS (Details) | 12 Months Ended |
Sep. 30, 2016 | |
Shijiazhuang Liyu Technology Development Co., Ltd. ("Liyu") [Member] | |
Related Party Nature Of Relationship | Being long-term investment of the Company (note 10) |
Jilin Jinong Hi-tech Development Shares Co., Ltd. ("Jinong") [Member] | |
Related Party Nature Of Relationship | Being an equity investment of the Company prior to July 10, 2014 |
Henan Agriculture University [Member] | |
Related Party Nature Of Relationship | Being the non-controlling interest of Beijing Origin |
Beijing Shihui Agriculture Ltd [Member] | |
Related Party Nature Of Relationship | Being owned by close family members of the Company’s Chairman |
Neijiang Agriculture Institute [Member] | |
Related Party Nature Of Relationship | Being the non-controlling interest of Denong |
Xinjiang Ginbo Seeds Center [Member] | |
Related Party Nature Of Relationship | Being the non-controlling interest of Xinjiang Origin |
RELATED PARTY BALANCES AND TR64
RELATED PARTY BALANCES AND TRANSACTIONS (Details 1) ¥ in Thousands, $ in Thousands | Sep. 30, 2016CNY (¥) | Sep. 30, 2016USD ($) | Sep. 30, 2015CNY (¥) | |
Due to related parties (note 3) | ¥ 103,905 | $ 15,560 | ¥ 42,284 | |
Companies controlled by the Company's directors [Member] | ||||
Due to related parties (note 3) | 1,585 | 1,511 | ||
Ex-shareholders of State Harvest [Member] | ||||
Due to related parties (note 3) | 16 | 16 | ||
Xinjiang Ginbo Seeds Center [Member] | ||||
Due to related parties (note 3) | [1] | 10,000 | 10,054 | |
Henan Agriculture University [Member] | ||||
Due to related parties (note 3) | 1,000 | 1,000 | ||
Beijing Shihui Agriculture Ltd [Member] | ||||
Due to related parties (note 3) | [2] | ¥ 91,304 | ¥ 29,703 | |
[1] | Xinjiang Origin, the subsidiary of the Company, has received a cash advance of RMB10,000 from Xinjiang Ginbo Seeds Center during the year ended September 30, 2016, which is unsecured, interest-free and repayable on demand. | |||
[2] | The balance as of September 30, 2016 represented the advance from Beijing Shihui for its seed sales. |
RELATED PARTY BALANCES AND TR65
RELATED PARTY BALANCES AND TRANSACTIONS (Details 2) - CNY (¥) ¥ in Thousands | Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 |
Beijing Shihui Agriculture Ltd [Member] | Sales [Member] | |||
Due from related parties (note 3) | ¥ 102,234 | ¥ 40,586 | ¥ 0 |
RELATED PARTY BALANCES AND TR66
RELATED PARTY BALANCES AND TRANSACTIONS (Details 3) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Related Party Transaction, Amounts of Transaction | ¥ 102,234 | ¥ 40,586 | ¥ 0 |
Liyu [Member] | |||
Related Party Transaction, Amounts of Transaction | 0 | 0 | 4,838 |
Liyu [Member] | Dividend Received [Member] | |||
Related Party Transaction, Amounts of Transaction | 0 | 0 | 3,000 |
Henan Agriculture University [Member] | |||
Related Party Transaction, Amounts of Transaction | 1,000 | 0 | 0 |
Neijiang Agriculture Institute [Member] | |||
Related Party Transaction, Amounts of Transaction | 0 | 0 | 500 |
Beijing Shihui Agriculture Ltd. | |||
Related Party Transaction, Amounts of Transaction | ¥ 250 | ¥ 0 | ¥ 0 |
RELATED PARTY BALANCES AND TR67
RELATED PARTY BALANCES AND TRANSACTIONS (Details Textual) - CNY (¥) ¥ in Thousands | 12 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 26, 2016 | |
Related Party Transaction, Amounts Of Transaction | ¥ 102,234 | ¥ 40,586 | ¥ 0 | |
Xinjiang Ginbo Seeds Center [Member] | ||||
Related Party Deposit Liabilities | 10,000 | |||
China-Based Commercial Corn Seed Production and Distribution Business [Member] | ||||
Expected Cash Proceeds From Sale Of Business | ¥ 400,000 | |||
Beijing Shihui Agriculture Ltd [Member] | ||||
Related Party Transaction, Amounts Of Transaction | ¥ 250 | 0 | ¥ 0 | |
Beijing Shihui Agriculture Ltd [Member] | Other Intangible Assets [Member] | ||||
Related Party Transaction, Amounts Of Transaction | ¥ 1,968 |
ACCOUNTS RECEIVABLE (Details)
ACCOUNTS RECEIVABLE (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Sep. 30, 2016CNY (¥) | Sep. 30, 2016USD ($) | Sep. 30, 2015CNY (¥) | Sep. 30, 2014CNY (¥) | |
Balance at beginning of year | ¥ 4,845 | ¥ 5,881 | ¥ 12,110 | |
Additions | 242 | $ 36 | 0 | 15 |
Reversal of recovered debts | 0 | (1,036) | (627) | |
Derecognition upon disposal of a subsidiary | 0 | 0 | (5,617) | |
Balance at end of year | ¥ 5,087 | ¥ 4,845 | ¥ 5,881 |
ADVANCES TO SUPPLIERS (Details)
ADVANCES TO SUPPLIERS (Details) ¥ in Thousands, $ in Thousands | Sep. 30, 2016CNY (¥) | Sep. 30, 2016USD ($) | Sep. 30, 2015CNY (¥) |
Purchases of materials | ¥ 315 | ¥ 4,767 | |
Prepayments for advertisement | 3,141 | 3,083 | |
Prepayments for transportation fee | 2 | 2 | |
Prepayments for operating lease | 0 | 204 | |
Prepayments for testing fee | 475 | 289 | |
Utility deposit | 86 | 476 | |
Deposits for research and development fee | 830 | 865 | |
Prepayments for professional fee | 328 | 0 | |
Others | 2,186 | 798 | |
Advances to suppliers | ¥ 7,363 | $ 1,103 | ¥ 10,484 |
INVENTORIES (Details)
INVENTORIES (Details) ¥ in Thousands, $ in Thousands | Sep. 30, 2016CNY (¥) | Sep. 30, 2016USD ($) | Sep. 30, 2015CNY (¥) | Sep. 30, 2014CNY (¥) | Sep. 30, 2013CNY (¥) |
Work in progress and supplies | ¥ 385,790 | ¥ 420,655 | |||
Finished goods | 39,426 | 65,080 | |||
Provision | (57,130) | (46,173) | ¥ (53,587) | ¥ (52,301) | |
Inventories | ¥ 368,086 | $ 55,121 | ¥ 439,562 |
INVENTORIES (Details 1)
INVENTORIES (Details 1) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Balance at beginning of year | ¥ 46,173 | ¥ 53,587 | ¥ 52,301 |
Additions | 20,502 | 10,965 | 21,984 |
Write-off | (9,545) | (18,379) | (20,698) |
Balance at end of year | ¥ 57,130 | ¥ 46,173 | ¥ 53,587 |
INVENTORIES (Details Textual)
INVENTORIES (Details Textual) - CNY (¥) | Sep. 30, 2016 | Sep. 30, 2015 |
Finished goods | ¥ 39,426,000 | ¥ 65,080,000 |
Federal Home Loan Bank, Advances, General Debt Obligations, Disclosures, Collateral Pledged | 36,436 | 27,323,000 |
Debtor [Member] | ||
Finished goods | ¥ 3,681,000 | ¥ 6,198,000 |
OTHER CURRENT ASSETS (Details)
OTHER CURRENT ASSETS (Details) ¥ in Thousands, $ in Thousands | Sep. 30, 2016CNY (¥) | Sep. 30, 2016USD ($) | Sep. 30, 2015CNY (¥) |
Advances to staff for business use | ¥ 2,998 | ¥ 2,911 | |
Deposits for rental | 1,099 | 1,130 | |
Others | 656 | 752 | |
Other Assets, Current | ¥ 4,753 | $ 711 | ¥ 4,793 |
LAND USE RIGHTS, NET (Details)
LAND USE RIGHTS, NET (Details) ¥ in Thousands, $ in Thousands | Sep. 30, 2016CNY (¥) | Sep. 30, 2016USD ($) | Sep. 30, 2015CNY (¥) |
Land use rights | ¥ 38,575 | ¥ 38,576 | |
Accumulated amortization | (7,835) | (6,854) | |
Land use rights, net | ¥ 30,740 | $ 4,603 | ¥ 31,722 |
LAND USE RIGHTS, NET (Details T
LAND USE RIGHTS, NET (Details Textual) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Sep. 30, 2016CNY (¥) | Sep. 30, 2015CNY (¥) | Sep. 30, 2014CNY (¥) | Sep. 30, 2016USD ($) | |
Land use rights, net | ¥ 30,740 | ¥ 31,722 | $ 4,603 | |
Amortization of Intangible Assets | 7,710 | 7,670 | ¥ 5,665 | |
Use Rights [Member] | ||||
Amortization of Intangible Assets | 981 | 978 | ¥ 1,027 | |
Asset Pledged As Collateral [Member] | ||||
Land use rights, net | ¥ 17,867 | ¥ 18,519 |
PLANT AND EQUIPMENT, NET (Detai
PLANT AND EQUIPMENT, NET (Details) ¥ in Thousands, $ in Thousands | Sep. 30, 2016CNY (¥) | Sep. 30, 2016USD ($) | Sep. 30, 2015CNY (¥) |
Plant and building | ¥ 253,739 | ¥ 252,664 | |
Machinery and equipment | 170,485 | 163,013 | |
Furniture and office equipment | 12,914 | 12,955 | |
Motor vehicles | 9,285 | 9,963 | |
Total | 446,423 | 438,595 | |
Accumulated depreciation | (138,640) | (118,064) | |
Construction in progress | 5,966 | 4,374 | |
Plant and equipment, net | ¥ 313,749 | $ 46,984 | ¥ 324,905 |
PLANT AND EQUIPMENT, NET (Det77
PLANT AND EQUIPMENT, NET (Details Textual) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Buildings and Improvements Gross Collateral To Bank Loan | ¥ 192,928 | ¥ 197,627 | |
Depreciation | ¥ 22,531 | ¥ 21,901 | ¥ 21,832 |
LONG TERM INVESTMENTS (Details)
LONG TERM INVESTMENTS (Details) - CNY (¥) ¥ in Thousands | Sep. 30, 2016 | Sep. 30, 2015 |
Cost method investment | ¥ 18,721 | ¥ 18,721 |
LONG TERM INVESTMENTS (Details
LONG TERM INVESTMENTS (Details Textual) | Sep. 30, 2016 | Sep. 30, 2012 |
Jinong [Member] | ||
Equity Method Investment, Ownership Percentage | 23.00% | 17.94% |
ACQUIRED INTANGIBLE ASSETS, N80
ACQUIRED INTANGIBLE ASSETS, NET (Details) ¥ in Thousands, $ in Thousands | Sep. 30, 2016CNY (¥) | Sep. 30, 2016USD ($) | Sep. 30, 2015CNY (¥) |
Acquired Finite Lived Intangible Asset Gross | ¥ 115,175 | ¥ 113,925 | |
Accumulated amortization | (85,931) | (78,221) | |
Impairment provision | (4,314) | (4,314) | |
Acquired intangible assets, net | 24,930 | $ 3,733 | 31,390 |
Technology rights for licensed seeds [Member] | |||
Acquired Finite Lived Intangible Asset Gross | 100,602 | 99,602 | |
Distribution network [Member] | |||
Acquired Finite Lived Intangible Asset Gross | 6,739 | 6,739 | |
Others [Member] | |||
Acquired Finite Lived Intangible Asset Gross | ¥ 7,834 | ¥ 7,584 |
ACQUIRED INTANGIBLE ASSETS, N81
ACQUIRED INTANGIBLE ASSETS, NET (Details 1) ¥ in Thousands | Sep. 30, 2016CNY (¥) |
2,017 | ¥ 5,629 |
2,018 | 5,312 |
2,019 | 3,608 |
2,020 | 2,179 |
2,021 | 1,980 |
Total | ¥ 18,708 |
ACQUIRED INTANGIBLE ASSETS, N82
ACQUIRED INTANGIBLE ASSETS, NET (Details Textual) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Amortization of Intangible Assets | ¥ 7,710 | ¥ 7,670 | ¥ 5,665 |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 5 years |
OTHER ASSETS (Details)
OTHER ASSETS (Details) ¥ in Thousands, $ in Thousands | Sep. 30, 2016CNY (¥) | Sep. 30, 2016USD ($) | Sep. 30, 2015CNY (¥) |
Prepaid lease | ¥ 2,368 | ¥ 2,796 | |
Deposits for purchase of plant and equipment | 0 | 233 | |
Others | 42 | 50 | |
Other Assets, Noncurrent, Total | ¥ 2,410 | $ 362 | ¥ 3,079 |
BORROWINGS (Details)
BORROWINGS (Details) ¥ in Thousands, $ in Thousands | Sep. 30, 2016CNY (¥) | Sep. 30, 2016USD ($) | Sep. 30, 2015CNY (¥) |
Short-term borrowings | ¥ 190,000 | $ 28,453 | ¥ 220,000 |
Current portion of long-term borrowings | 27,057 | $ 4,052 | 24,000 |
Long-term borrowings | ¥ 20,000 | ¥ 40,972 |
BORROWINGS (Details Textual)
BORROWINGS (Details Textual) ¥ in Thousands, $ in Thousands | Sep. 30, 2016CNY (¥) | Sep. 30, 2016USD ($) | Sep. 30, 2015CNY (¥) |
Long-Term Debt, Current Maturities | ¥ 27,057 | $ 4,052 | ¥ 24,000 |
Loans Payable, Noncurrent | 20,034 | 13,949 | |
Secured Debt [Member] | |||
Short-term Bank Loans and Notes Payable | 125,000 | 105,000 | |
Loans Payable, Noncurrent | 4,023 | 14,523 | |
Unsecured Debt [Member] | |||
Short-term Bank Loans and Notes Payable | 65,000 | 115,000 | |
Loans Payable, Noncurrent | ¥ 43,034 | ¥ 50,449 | |
Long-term Debt, Percentage Bearing Variable Interest, Percentage Rate | 2.38% | 2.38% | 2.3832% |
Unsecured Debt [Member] | Financial Standby Letter of Credit [Member] | |||
Fixed Deposits Collateral To Bank Loan | ¥ 21,181 | ¥ 20,280 | |
Maximum [Member] | Unsecured Debt [Member] | |||
Short-term Debt, Percentage Bearing Variable Interest Rate | 5.22% | 5.22% | 6.42% |
Minimum [Member] | Unsecured Debt [Member] | |||
Short-term Debt, Percentage Bearing Variable Interest Rate | 5.00% | 5.00% | 5.10% |
Beijing Origin Seed Limited [Member] | Land Use Right [Member] | |||
Debt Instrument, Collateral Amount | ¥ 2,300 | ¥ 2,361 | |
Beijing Origin Seed Limited [Member] | Property, Plant and Equipment [Member] | |||
Debt Instrument, Collateral Amount | 31,733 | 32,692 | |
Beijing Origin Seed Limited [Member] | Secured Debt [Member] | |||
Short-term Bank Loans and Notes Payable | ¥ 60,000 | ¥ 60,000 | |
Short-term Debt, Percentage Bearing Fixed Interest Rate | 4.57% | 4.57% | 5.88% |
Beijing Origin Seed Limited [Member] | Unsecured Debt [Member] | |||
Short-term Bank Loans and Notes Payable | ¥ 30,000 | ¥ 30,000 | |
Linze Origin Seed Limited [Member] | Property, Plant and Equipment [Member] | |||
Debt Instrument, Collateral Amount | 7,510 | ||
Linze Origin Seed Limited [Member] | Secured Debt [Member] | |||
Short-term Bank Loans and Notes Payable | ¥ 50,000 | ¥ 30,000 | |
Short-term Debt, Percentage Bearing Fixed Interest Rate | 5.71% | 5.71% | 5.936% |
Inventory Gross Collateral To Bank Loan | ¥ 36,436 | ¥ 27,323 | |
Linze Origin Seed Limited [Member] | Unsecured Debt [Member] | |||
Short-term Bank Loans and Notes Payable | ¥ 35,000 | ¥ 85,000 | |
Short-term Debt, Percentage Bearing Variable Interest Rate | 4.57% | 4.57% | |
Linze Origin Seed Limited [Member] | Maximum [Member] | Unsecured Debt [Member] | |||
Short-term Debt, Percentage Bearing Variable Interest Rate | 6.068% | ||
Linze Origin Seed Limited [Member] | Minimum [Member] | Unsecured Debt [Member] | |||
Short-term Debt, Percentage Bearing Variable Interest Rate | 4.85% | ||
Xinjiang Originbo Seed Company Limited [Member] | |||
Long-term Debt, Percentage Bearing Variable Interest, Percentage Rate | 4.99% | 4.99% | |
Short-term Debt, Percentage Bearing Fixed Interest Rate | 6.72% | ||
Xinjiang Originbo Seed Company Limited [Member] | Land Use Right [Member] | |||
Debt Instrument, Collateral Amount | ¥ 12,456 | ¥ 12,955 | |
Xinjiang Originbo Seed Company Limited [Member] | Property, Plant and Equipment [Member] | |||
Debt Instrument, Collateral Amount | 144,184 | 154,694 | |
Xinjiang Originbo Seed Company Limited [Member] | Secured Debt [Member] | |||
Loans Payable, Noncurrent | 4,023 | 14,523 | |
Xinjiang Originbo Seed Company Limited [Member] | Unsecured Debt [Member] | |||
Loans Payable, Noncurrent | ¥ 36,500 | ||
Xinjiang Originbo Seed Company Limited [Member] | Maximum [Member] | Unsecured Debt [Member] | |||
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate | 7.80% | ||
Xinjiang Originbo Seed Company Limited [Member] | Minimum [Member] | Unsecured Debt [Member] | |||
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate | 7.04% | ||
Origin Agritech Limited [Member] | Unsecured Debt [Member] | |||
Loans Payable, Noncurrent | ¥ 23,000 | ||
Origin Agritech Limited [Member] | Maximum [Member] | Unsecured Debt [Member] | |||
Long-term Debt, Percentage Bearing Variable Interest, Percentage Rate | 6.18% | 6.18% | |
Origin Agritech Limited [Member] | Minimum [Member] | Unsecured Debt [Member] | |||
Long-term Debt, Percentage Bearing Variable Interest, Percentage Rate | 5.23% | 5.23% | |
Zhengzhou Branch [Member] | Land Use Right [Member] | |||
Debt Instrument, Collateral Amount | ¥ 3,111 | ¥ 3,203 | |
Zhengzhou Branch [Member] | Property, Plant and Equipment [Member] | |||
Debt Instrument, Collateral Amount | 9,501 | 10,241 | |
Zhengzhou Branch [Member] | Secured Debt [Member] | |||
Short-term Bank Loans and Notes Payable | ¥ 15,000 | ¥ 15,000 | |
Short-term Debt, Percentage Bearing Fixed Interest Rate | 5.87% | 5.87% | 6.885% |
OTHER PAYABLES AND ACCRUED EX86
OTHER PAYABLES AND ACCRUED EXPENSES (Details) ¥ in Thousands, $ in Thousands | Sep. 30, 2016CNY (¥) | Sep. 30, 2016USD ($) | Sep. 30, 2015CNY (¥) |
Payable for purchase of plant and equipment | ¥ 1,355 | ¥ 1,262 | |
Payable for purchase of land use rights | 620 | 620 | |
Payable for purchase of construction-in-progress | 8,850 | 12,776 | |
Professional fee payable | 9,154 | 1,500 | |
Salaries and bonus payable | 10,699 | 10,869 | |
Accrued interest | 1,813 | 1,813 | |
Other taxes payable | 658 | 731 | |
Deposits from growers | 355 | 969 | |
Deposits from others | 7,684 | 2,035 | |
Payable for labor union, housing fund and education expenses | 785 | 738 | |
Deferred government subsidies | 6,172 | 9,575 | |
Others | 5,243 | 7,410 | |
Other Payables and Accrued Expenses Current | ¥ 53,388 | $ 7,995 | ¥ 50,298 |
OTHER LONG-TERM LIABILITY (Deta
OTHER LONG-TERM LIABILITY (Details Textual) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Sep. 30, 2016CNY (¥) | Sep. 30, 2016USD ($) | Sep. 30, 2015CNY (¥) | Sep. 30, 2011CNY (¥) | |
Plant and Equipment [Member] | ||||
Subsidiary Received | ¥ 8,630 | $ 820 | ¥ 2,620 | ¥ 14,000 |
Land Use Rights [Member] | ||||
Subsidiary Received | ¥ 10,900 |
SHARE OPTION PLANS (Details)
SHARE OPTION PLANS (Details) - $ / shares | 12 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Tranche 5 [Member] | ||
Grant date | Jan. 3, 2010 | |
Options outstanding | 0 | 120,000 |
Number of options granted | 0 | 0 |
Options cancelled/expired | 0 | (120,000) |
Options outstanding | 0 | 0 |
Options vested and exercisable | 0 | 0 |
Weighted average fair value at the grant date (USD) | $ 7.20 | |
Tranche 6 [Member] | ||
Grant date | Jan. 3, 2011 | |
Options outstanding | 115,000 | 115,000 |
Number of options granted | 0 | 0 |
Options cancelled/expired | (115,000) | 0 |
Options outstanding | 0 | 115,000 |
Options vested and exercisable | 0 | 115,000 |
Weighted average fair value at the grant date (USD) | $ 6.08 | |
Tranche 7 [Member] | ||
Grant date | Jan. 3, 2012 | |
Options outstanding | 360,000 | 365,000 |
Number of options granted | 0 | 0 |
Options cancelled/expired | 0 | (5,000) |
Options outstanding | 360,000 | 360,000 |
Options vested and exercisable | 360,000 | 360,000 |
Weighted average fair value at the grant date (USD) | $ 1.45 | |
Tranche 8 [Member] | ||
Grant date | Jan. 2, 2013 | |
Options outstanding | 355,000 | 360,000 |
Number of options granted | 0 | 0 |
Options cancelled/expired | 0 | (5,000) |
Options outstanding | 355,000 | 355,000 |
Options vested and exercisable | 355,000 | 355,000 |
Weighted average fair value at the grant date (USD) | $ 0.76 | |
Tranche 9 [Member] | ||
Grant date | Jan. 2, 2014 | |
Options outstanding | 345,000 | 350,000 |
Number of options granted | 0 | |
Options cancelled/expired | 0 | (5,000) |
Options outstanding | 345,000 | 345,000 |
Options vested and exercisable | 345,000 | 345,000 |
Weighted average fair value at the grant date (USD) | $ 0.65 | |
Tranche 10 [Member] | ||
Grant date | Jan. 2, 2015 | |
Options outstanding | 195,000 | 0 |
Number of options granted | 195,000 | |
Options cancelled/expired | 0 | 0 |
Options outstanding | 195,000 | 195,000 |
Options vested and exercisable | 195,000 | 195,000 |
Weighted average fair value at the grant date (USD) | $ 0.75 | |
Tranche 11 [Member] | ||
Grant date | Jan. 4, 2016 | |
Options outstanding | 0 | 0 |
Number of options granted | 185,000 | 0 |
Options cancelled/expired | 0 | 0 |
Options outstanding | 185,000 | 0 |
Options vested and exercisable | 185,000 | 0 |
Weighted average fair value at the grant date (USD) | $ 0.90 | |
Tranche 12 [Member] | ||
Grant date | Apr. 19, 2016 | |
Options outstanding | 0 | 0 |
Number of options granted | 600,000 | 0 |
Options cancelled/expired | 0 | 0 |
Options outstanding | 600,000 | 0 |
Options vested and exercisable | 600,000 | 0 |
Weighted average fair value at the grant date (USD) | $ 1.54 | |
Tranche 13 [Member] | ||
Grant date | May 16, 2016 | |
Options outstanding | 0 | 0 |
Number of options granted | 200,000 | 0 |
Options cancelled/expired | 0 | 0 |
Options outstanding | 200,000 | 0 |
Options vested and exercisable | 200,000 | 0 |
Weighted average fair value at the grant date (USD) | $ 1.24 | |
Tranche 14 [Member] | ||
Grant date | Aug. 3, 2016 | |
Options outstanding | 0 | 0 |
Number of options granted | 200,000 | 0 |
Options cancelled/expired | 0 | 0 |
Options outstanding | 200,000 | 0 |
Options vested and exercisable | 200,000 | 0 |
Weighted average fair value at the grant date (USD) | $ 1.44 |
SHARE OPTION PLANS (Details 1)
SHARE OPTION PLANS (Details 1) | 12 Months Ended |
Sep. 30, 2016$ / shares | |
Tranche 5 [Member] | |
Exercise price (USD) | $ 12.23 |
Average risk-free interest rate | 1.66% |
Expected option life (year) | 3 years |
Volatility rate | 92.81% |
Dividend yield | 0.00% |
Tranche 6 [Member] | |
Exercise price (USD) | $ 10.84 |
Average risk-free interest rate | 1.03% |
Expected option life (year) | 3 years |
Volatility rate | 88.03% |
Dividend yield | 0.00% |
Tranche 7 [Member] | |
Exercise price (USD) | $ 2.55 |
Average risk-free interest rate | 0.40% |
Expected option life (year) | 3 years |
Volatility rate | 90.30% |
Dividend yield | 0.00% |
Tranche 8 [Member] | |
Exercise price (USD) | $ 1.44 |
Average risk-free interest rate | 0.37% |
Expected option life (year) | 3 years |
Volatility rate | 81.98% |
Dividend yield | 0.00% |
Tranche 9 [Member] | |
Exercise price (USD) | $ 1.27 |
Average risk-free interest rate | 0.76% |
Expected option life (year) | 3 years |
Volatility rate | 79.20% |
Dividend yield | 0.00% |
Tranche 10 [Member] | |
Exercise price (USD) | $ 1.48 |
Average risk-free interest rate | 1.07% |
Expected option life (year) | 3 years |
Volatility rate | 79.67% |
Dividend yield | 0.00% |
Tranche 11 [Member] | |
Exercise price (USD) | $ 1.38 |
Average risk-free interest rate | 1.73% |
Expected option life (year) | 5 years |
Volatility rate | 80.72% |
Dividend yield | 0.00% |
Tranche 12 [Member] | |
Exercise price (USD) | $ 2.05 |
Average risk-free interest rate | 1.79% |
Expected option life (year) | 10 years |
Volatility rate | 69.27% |
Dividend yield | 0.00% |
Tranche 13 [Member] | |
Exercise price (USD) | $ 1.65 |
Average risk-free interest rate | 1.75% |
Expected option life (year) | 10 years |
Volatility rate | 69.92% |
Dividend yield | 0.00% |
Tranche 14 [Member] | |
Exercise price (USD) | $ 2 |
Average risk-free interest rate | 1.55% |
Expected option life (year) | 10 years |
Volatility rate | 65.37% |
Dividend yield | 0.00% |
SHARE OPTION PLANS (Details Tex
SHARE OPTION PLANS (Details Textual) $ / shares in Units, ¥ in Thousands, $ in Thousands | Jan. 02, 2016CNY (¥) | Jan. 02, 2016USD ($) | Jan. 31, 2015$ / sharesshares | Dec. 22, 2014CNY (¥)shares | Jan. 31, 2014$ / sharesshares | Jan. 31, 2013$ / sharesshares | Jan. 31, 2012$ / sharesshares | Jan. 31, 2011$ / sharesshares | Jan. 31, 2010$ / sharesshares | Sep. 30, 2016CNY (¥)shares | Sep. 30, 2016USD ($)$ / sharesshares | Sep. 30, 2015CNY (¥)shares | Sep. 30, 2014CNY (¥) | Sep. 30, 2016USD ($)shares | Sep. 30, 2015USD ($)shares | Apr. 22, 2010shares | Nov. 08, 2005shares |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term | 5 years 1 month 6 days | 5 years 1 month 6 days | 2 years 4 months 24 days | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value | $ | $ 1,476 | $ 0 | |||||||||||||||
Share-based compensation expense | ¥ 8,796 | $ 1,317 | ¥ 1,612 | ¥ 1,324 | |||||||||||||
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized, Period for Recognition | 6 months 7 days | 6 months 7 days | |||||||||||||||
Board of Directors Chairman [Member] | |||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Plan Modification, Incremental Compensation Cost | ¥ 542 | $ 83 | ¥ 616 | ||||||||||||||
Tranche 9 [Member] | |||||||||||||||||
Number of options granted | 0 | ||||||||||||||||
Exercise price (USD) | $ / shares | $ 1.27 | ||||||||||||||||
Tranche 10 [Member] | |||||||||||||||||
Number of options granted | 195,000 | ||||||||||||||||
Exercise price (USD) | $ / shares | $ 1.48 | ||||||||||||||||
Tranche 12 [Member] | |||||||||||||||||
Number of options granted | 600,000 | 600,000 | 0 | ||||||||||||||
Exercise price (USD) | $ / shares | $ 2.05 | ||||||||||||||||
Tranche 13 [Member] | |||||||||||||||||
Number of options granted | 200,000 | 200,000 | 0 | ||||||||||||||
Exercise price (USD) | $ / shares | $ 1.65 | ||||||||||||||||
Tranche 14 [Member] | |||||||||||||||||
Number of options granted | 200,000 | 200,000 | 0 | ||||||||||||||
Exercise price (USD) | $ / shares | $ 2 | ||||||||||||||||
2005 Performance Equity Plan [Member] | |||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 1,500,000 | ||||||||||||||||
2005 Performance Equity Plan [Member] | Tranche 5 [Member] | |||||||||||||||||
Number of options granted | 125,000 | ||||||||||||||||
Exercise price (USD) | $ / shares | $ 12.23 | ||||||||||||||||
2005 Performance Equity Plan [Member] | Tranche 6 [Member] | |||||||||||||||||
Number of options granted | 120,000 | ||||||||||||||||
Exercise price (USD) | $ / shares | $ 10.84 | ||||||||||||||||
2005 Performance Equity Plan [Member] | Tranche 7 [Member] | |||||||||||||||||
Number of options granted | 365,000 | ||||||||||||||||
Exercise price (USD) | $ / shares | $ 2.55 | ||||||||||||||||
2005 Performance Equity Plan [Member] | Tranche 8 [Member] | |||||||||||||||||
Number of options granted | 360,000 | ||||||||||||||||
Exercise price (USD) | $ / shares | $ 1.44 | ||||||||||||||||
2005 Performance Equity Plan [Member] | Tranche 9 [Member] | |||||||||||||||||
Number of options granted | 350,000 | ||||||||||||||||
Exercise price (USD) | $ / shares | $ 1.27 | ||||||||||||||||
2005 Performance Equity Plan [Member] | Tranche 10 [Member] | |||||||||||||||||
Number of options granted | 195,000 | ||||||||||||||||
Exercise price (USD) | $ / shares | $ 1.48 | ||||||||||||||||
2009 Performance Equity Plan [Member] | |||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 1,500,000 | ||||||||||||||||
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized, Stock Options | ¥ | ¥ 2,676 | ¥ 238 | |||||||||||||||
2014 Performance Equity Plan [Member] | |||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 5,000,000 | ||||||||||||||||
Before Adjustment [Member] | 2009 Performance Equity Plan [Member] | |||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 1,060,000 | 1,175,000 | 1,060,000 | 1,175,000 | |||||||||||||
Before Adjustment [Member] | 2014 Performance Equity Plan [Member] | |||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 1,380,000 | 195,000 | 1,380,000 | 195,000 | |||||||||||||
Minimum [Member] | After Adjustment [Member] | |||||||||||||||||
Exercise price (USD) | $ / shares | $ 1.27 | ||||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award Expiration Period | 5 years | 5 years | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 1 year | 1 year | |||||||||||||||
Maximum [Member] | After Adjustment [Member] | |||||||||||||||||
Exercise price (USD) | $ / shares | $ 12.23 | ||||||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award Expiration Period | 10 years | 10 years | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 5 years | 5 years |
TREASURY STOCK (Details Textual
TREASURY STOCK (Details Textual) ¥ in Thousands, $ in Millions | 12 Months Ended | |||
Sep. 30, 2014CNY (¥)shares | Sep. 30, 2013CNY (¥)shares | Sep. 30, 2007CNY (¥)shares | Sep. 30, 2016USD ($)shares | |
Stock Repurchased During Period, Shares (in shares) | 498,851 | |||
Stock Repurchased During Period, Value | ¥ | ¥ 1,786 | ¥ 6,286 | ¥ 29,377 | |
Stock Repurchase Program, Number of Shares Authorized to be Repurchased | 167,385 | 611,386 | 0 | |
Stock Repurchase Program, Authorized Amount | $ | $ 5 |
INCOME TAXES (Details)
INCOME TAXES (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Sep. 30, 2016CNY (¥) | Sep. 30, 2016USD ($) | Sep. 30, 2015CNY (¥) | Sep. 30, 2014CNY (¥) | |
Current | ¥ 1,436 | $ 215 | ¥ 1,295 | ¥ 677 |
Deferred | 0 | 0 | 0 | 0 |
Reversal of contingent tax liability | 0 | 0 | (39,060) | |
Income tax expense | ¥ (1,436) | $ (215) | ¥ (1,295) | ¥ 38,383 |
INCOME TAXES (Details 1)
INCOME TAXES (Details 1) - CNY (¥) ¥ in Thousands | Sep. 30, 2016 | Sep. 30, 2015 |
Non-current deferred tax assets: | ||
Net operating loss carry forward | ¥ 25,964 | ¥ 26,547 |
Impairment on inventory | 11,213 | 9,420 |
Others | 9,734 | 9,292 |
Non-current deferred income tax assets | 46,911 | 45,259 |
Valuation allowances | (46,911) | (45,259) |
Net non-current deferred income tax assets | ¥ 0 | ¥ 0 |
INCOME TAXES (Details 2)
INCOME TAXES (Details 2) - CNY (¥) ¥ in Thousands | Sep. 30, 2016 | Sep. 30, 2015 |
Deferred Tax Assets, Tax Credit Carryforwards | ¥ 115,728 | ¥ 121,831 |
Year 2015 [Member] | ||
Deferred Tax Assets, Tax Credit Carryforwards | 0 | 10,278 |
Year 2016 [Member] | ||
Deferred Tax Assets, Tax Credit Carryforwards | 40,099 | 49,532 |
Year 2017 [Member] | ||
Deferred Tax Assets, Tax Credit Carryforwards | 21,254 | 21,254 |
Year 2018 [Member] | ||
Deferred Tax Assets, Tax Credit Carryforwards | 5,290 | 5,290 |
Year 2019 [Member] | ||
Deferred Tax Assets, Tax Credit Carryforwards | 24,931 | 35,477 |
Year 2020 [Member] | ||
Deferred Tax Assets, Tax Credit Carryforwards | ¥ 24,154 | ¥ 0 |
INCOME TAXES (Details 3)
INCOME TAXES (Details 3) | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Statutory rate | 25.00% | 25.00% | 25.00% |
Effect of preferential tax treatment | (5.00%) | (7.00%) | (2.00%) |
Effect of different tax jurisdiction | (6.00%) | (7.00%) | (3.00%) |
Permanent book-tax difference | (3.00%) | 11.00% | 9.00% |
Change in valuation allowance | (7.00%) | 10.00% | (2.00%) |
Utilization of tax loss previously not recognized | 0.00% | 0.00% | 0.00% |
Under/(Over) provision in prior year | (6.00%) | (40.00%) | (29.00%) |
Reversal of contingent tax liability | 0.00% | 0.00% | 90.00% |
Effective income tax rate | (2.00%) | (8.00%) | 88.00% |
INCOME TAXES (Details Textual)
INCOME TAXES (Details Textual) ¥ / shares in Units, ¥ in Thousands, $ in Thousands | 1 Months Ended | 12 Months Ended | ||||
Jan. 30, 2008 | Sep. 30, 2016CNY (¥)¥ / shares | Sep. 30, 2015CNY (¥)¥ / shares | Sep. 30, 2014CNY (¥)¥ / shares | Sep. 30, 2016USD ($) | Sep. 30, 2013CNY (¥) | |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate | 25.00% | 25.00% | 25.00% | |||
Preferential Tax Rate | 25.00% | |||||
Effective Income Tax Rate, Continuing Operations | (2.00%) | (8.00%) | 88.00% | |||
Income Tax Holiday Effect On Tax Charges | ¥ (3,822) | ¥ (1,149) | ¥ (750) | |||
Income Tax Holiday, Income Tax Benefits Per Share | ¥ / shares | ¥ 0.17 | ¥ (0.13) | ¥ (0.01) | |||
Income Tax Holiday Income Tax Diluted Earnings Per Share | ¥ / shares | ¥ 0.17 | ¥ (0.13) | ¥ (0.01) | |||
Operating Loss Carryforwards, Limitations on Use | a preferential tax of 2 years exemption and 3 years of half EIT from January 1, 2012 to December 31, 2016 | |||||
Preferential Tax Rate Applicable Period Description | The open tax years for examinations in China are 5 years. | |||||
Business Combination, Contingent Consideration, Liability | ¥ 39,060 | ¥ 39,060 | ||||
Accrued Income Taxes, Current | 0 | ¥ 37 | $ 0 | |||
Other Tax Expense (Benefit) | ¥ 39,060 | |||||
Maximum [Member] | ||||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate | 33.00% | |||||
Accrued Income Taxes, Current | 64,218 | |||||
Minimum [Member] | ||||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate | 25.00% | |||||
Accrued Income Taxes, Current | ¥ 39,060 | |||||
Beijing Origin Seed Limited [Member] | ||||||
Preferential Tax Rate | 15.00% | 15.00% | 15.00% | |||
High Tech Status [Member] | ||||||
Effective Income Tax Rate, Continuing Operations | 15.00% |
LOSS PER SHARE (Details)
LOSS PER SHARE (Details) ¥ / shares in Units, ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Sep. 30, 2016CNY (¥)¥ / sharesshares | Sep. 30, 2016USD ($)shares | Sep. 30, 2015CNY (¥)¥ / sharesshares | Sep. 30, 2014CNY (¥)¥ / sharesshares | |
Net loss (numerator), basic and diluted | ¥ (65,578) | $ (9,820) | ¥ (13,808) | ¥ (9,527) |
Shares (denominator): | ||||
Common stock outstanding | 22,873,541 | 22,873,541 | 22,813,541 | 22,743,853 |
Weighted average common stock outstanding used in computing basic and diluted income per share | 22,858,541 | 22,858,541 | 22,794,791 | 22,743,853 |
Net loss per share-basic and diluted | ¥ / shares | ¥ (2.87) | ¥ (0.61) | ¥ (0.42) |
EMPLOYEE BENEFIT PLAN AND PRO98
EMPLOYEE BENEFIT PLAN AND PROFIT APPROPRIATION (Details Textual) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
Defined Contribution Plan, Cost Recognized | ¥ 12,576 | ¥ 13,873 | ¥ 16,212 |
Percentage Of Entity Registered Capital | 50.00% | ||
Statutory Surplus Reserve Fund Annual Appropriation Percentage | 10.00% | ||
Statutory Surplus Reserve Fund Appropriations | ¥ 24,789 | ¥ 24,789 | |
Beijing Origin State Harvest Biotechnology Limited [Member] | |||
Statutory Surplus Reserve Fund Annual Appropriation Percentage | 10.00% |
COMMITMENTS AND CONTINGENCIES99
COMMITMENTS AND CONTINGENCIES (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Long-term Purchase Commitment, Amount | ¥ 5,172 | ¥ 4,877 |
Equipment [Member] | ||
Long-term Purchase Commitment, Amount | 4,172 | 4,877 |
Plant and building construction [Member] | ||
Long-term Purchase Commitment, Amount | ¥ 1,000 | ¥ 0 |
COMMITMENTS AND CONTINGENCIE100
COMMITMENTS AND CONTINGENCIES (Details 1) ¥ in Thousands | Sep. 30, 2016CNY (¥) |
2,017 | ¥ 1,642 |
2,018 | 654 |
2,019 | 470 |
2,020 | 457 |
Thereafter | 3,468 |
Operating Leases, Future Minimum Payments Due | ¥ 6,691 |
SEGMENT AND GEOGRAPHIC INFOR101
SEGMENT AND GEOGRAPHIC INFORMATION (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||
Sep. 30, 2016CNY (¥) | Sep. 30, 2016USD ($) | Sep. 30, 2015CNY (¥) | Sep. 30, 2014CNY (¥) | Sep. 30, 2016USD ($) | |
Segment net revenues | |||||
Revenues | ¥ 335,251 | $ 50,204 | ¥ 376,553 | ¥ 415,177 | |
Segment operating income(loss) | |||||
Operating Income (Loss) | (61,308) | (9,181) | 1,340 | (24,479) | |
Segment identifiable assets: | |||||
Total assets | 880,626 | 985,829 | $ 131,874 | ||
Segment depreciation and amortization | |||||
Depreciation, Depletion and Amortization | 31,222 | $ 4,675 | 30,547 | 28,524 | |
Segment capital expenditure to long-lived assets | |||||
Capital Expenditure To Long Lived Assets | 16,964 | 20,531 | 22,615 | ||
Operating Segments [Member] | |||||
Segment net revenues | |||||
Revenues | 338,264 | 379,810 | 418,427 | ||
Segment operating income(loss) | |||||
Operating Income (Loss) | (30,942) | 12,208 | (13,637) | ||
Segment identifiable assets: | |||||
Total assets | 992,866 | 1,103,311 | |||
Operating Segments [Member] | Production and distribution of hybrid seeds | |||||
Segment net revenues | |||||
Revenues | 334,769 | 376,250 | 414,891 | ||
Segment operating income(loss) | |||||
Operating Income (Loss) | 263 | 38,709 | 10,691 | ||
Segment identifiable assets: | |||||
Total assets | 803,420 | 916,088 | |||
Segment depreciation and amortization | |||||
Depreciation, Depletion and Amortization | 30,365 | 29,668 | 27,567 | ||
Segment capital expenditure to long-lived assets | |||||
Capital Expenditure To Long Lived Assets | 16,964 | 20,531 | 22,615 | ||
Operating Segments [Member] | Agri-biotech and product development | |||||
Segment net revenues | |||||
Revenues | 3,495 | 3,560 | 3,536 | ||
Segment operating income(loss) | |||||
Operating Income (Loss) | (31,205) | (26,501) | (24,328) | ||
Segment identifiable assets: | |||||
Total assets | 189,446 | 187,223 | |||
Segment depreciation and amortization | |||||
Depreciation, Depletion and Amortization | 857 | 879 | 957 | ||
Segment capital expenditure to long-lived assets | |||||
Capital Expenditure To Long Lived Assets | 0 | 0 | 0 | ||
Inter-segment sales eliminations | |||||
Segment net revenues | |||||
Revenues | (3,013) | (3,257) | (3,250) | ||
Segment identifiable assets: | |||||
Total assets | (112,240) | (117,482) | |||
Less: Unallocated corporate operating expenses, net | |||||
Segment operating income(loss) | |||||
Operating Income (Loss) | ¥ 30,366 | ¥ 10,868 | ¥ 10,842 |
OPERATING RISK (Details Textual
OPERATING RISK (Details Textual) | Sep. 30, 2016 |
Maximum [Member] | |
Debt Instrument, Interest Rate, Stated Percentage | 6.18% |
Minimum [Member] | |
Debt Instrument, Interest Rate, Stated Percentage | 2.38% |
AGREEMENT TO SELL COMMERICAL103
AGREEMENT TO SELL COMMERICAL SEED BUSINESS (Details Textual) - CNY (¥) ¥ in Millions | 12 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Beijing Origin Seed Limited [Member] | ||
Agreement To Sale Subsidiary or Equity Method Investee [Line Items] | ||
Subsidiary or Equity Method Investee, Cumulative Proceeds Receivable on All Transactions | ¥ 400 | |
Loans Payable to Bank, Current | ¥ 100 | |
Subsidiary or Equity Method Investee, Non-Competition Provision, Description | This non-competition provision will terminate if more than 50% of the equity interest or assets of the Company are acquired by an independent third party during the restrictive period. | |
Beijing Origin Seed Limited [Member] | First Closing [Member] | ||
Agreement To Sale Subsidiary or Equity Method Investee [Line Items] | ||
Subsidiary or Equity Method Investee, Proceeds Receivable | ¥ 200 | |
Beijing Origin Seed Limited [Member] | Second Closing [Member] | ||
Agreement To Sale Subsidiary or Equity Method Investee [Line Items] | ||
Equity Method Investment, Ownership Percentage | 100.00% | |
Subsidiary or Equity Method Investee, Cumulative Proceeds Receivable | ¥ 190 | |
Subsidiary or Equity Method Investee, Proceeds Received By Deposit | ¥ 10 | |
Denong Zhengcheng Seed Limited [Member] | First Closing [Member] | ||
Agreement To Sale Subsidiary or Equity Method Investee [Line Items] | ||
Equity Method Investment, Ownership Percentage | 98.58% | |
Changchun Origin Seed Technology Development Limited [Member] | First Closing [Member] | ||
Agreement To Sale Subsidiary or Equity Method Investee [Line Items] | ||
Equity Method Investment, Ownership Percentage | 100.00% | |
Changchun Origin Seed Technology Development Limited [Member] | First Closing [Member] | Board of Directors Chairman [Member] | ||
Agreement To Sale Subsidiary or Equity Method Investee [Line Items] | ||
Equity Method Investment, Ownership Percentage | 100.00% | |
Linze Origin Seed Limited [Member] | First Closing [Member] | ||
Agreement To Sale Subsidiary or Equity Method Investee [Line Items] | ||
Equity Method Investment, Ownership Percentage | 100.00% |
CONDENSED FINANCIAL INFORMAT104
CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY (Details) ¥ in Thousands, $ in Thousands | Sep. 30, 2016CNY (¥) | Sep. 30, 2016USD ($) | Sep. 30, 2015CNY (¥) | Sep. 30, 2015USD ($) | Sep. 30, 2014CNY (¥) | Sep. 30, 2013CNY (¥) |
Current assets | ||||||
Cash and cash equivalents | ¥ 54,509 | $ 8,163 | ¥ 66,025 | $ 9,888 | ¥ 46,268 | ¥ 131,978 |
Total current assets | 478,103 | 71,596 | 543,759 | |||
Total assets | 880,626 | 131,874 | 985,829 | |||
Current liabilities | ||||||
Due to related parties | 103,905 | 15,560 | 42,284 | |||
Total current liabilities | 614,502 | 92,022 | 634,140 | |||
Long-term borrowings | 20,000 | 2,995 | 40,972 | |||
Total liabilities | 662,009 | 99,136 | 695,051 | |||
Total stockholders’ equity | 218,617 | 32,738 | 290,778 | 309,587 | 320,245 | |
Total liabilities and stockholders’ equity | 880,626 | 131,874 | 985,829 | |||
Parent Company [Member] | ||||||
Current assets | ||||||
Cash and cash equivalents | 581 | 87 | 341 | $ 51 | ¥ 671 | ¥ 4,332 |
Other receivables | 3 | 0 | 3 | |||
Prepaid expenses | 0 | 0 | 481 | |||
Due from inter-companies | 129,811 | 19,439 | 125,815 | |||
Total current assets | 130,395 | 19,526 | 126,640 | |||
Investment in unconsolidated subsidiaries | 71,512 | 10,709 | 130,013 | |||
Total assets | 201,907 | 30,235 | 256,653 | |||
Current liabilities | ||||||
Due to related parties | 1,586 | 237 | 1,511 | |||
Total current liabilities | 1,586 | 237 | 1,511 | |||
Long-term borrowings | 20,033 | 3,000 | 13,948 | |||
Total liabilities | 21,619 | 3,237 | 15,459 | |||
Total stockholders’ equity | 180,288 | 26,998 | 241,194 | |||
Total liabilities and stockholders’ equity | ¥ 201,907 | $ 30,235 | ¥ 256,653 |
CONDENSED FINANCIAL INFORMAT105
CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY (Details 1) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Sep. 30, 2016CNY (¥) | Sep. 30, 2016USD ($) | Sep. 30, 2015CNY (¥) | Sep. 30, 2014CNY (¥) | |
Revenues | ¥ 335,251 | $ 50,204 | ¥ 376,553 | ¥ 415,177 |
Cost of revenues | (259,253) | (38,823) | (264,039) | (301,148) |
Operating expenses | ||||
General and administrative | (62,159) | (9,308) | (40,684) | (46,428) |
Loss from operations | (61,308) | (9,181) | 1,340 | (24,479) |
Interest expense | (14,251) | (2,134) | (18,634) | (19,743) |
Loss before income taxes | (75,397) | (11,291) | (16,519) | (48,523) |
Income tax (expense) benefits | ||||
Income tax expense | 39,060 | |||
Reversal of contingent tax liability | 0 | 0 | 0 | 39,060 |
Income tax expense | (1,436) | (215) | (1,295) | 38,383 |
Net loss | (76,833) | (11,506) | (17,814) | (10,140) |
Other comprehensive loss | ||||
Foreign currency translation difference | (4,124) | (617) | (2,607) | (56) |
Total comprehensive loss | (69,702) | (10,438) | (16,415) | (9,583) |
Parent Company [Member] | ||||
Revenues | 204 | 31 | 303 | 286 |
Cost of revenues | 0 | 0 | 0 | 0 |
Operating expenses | ||||
General and administrative | (16,035) | (2,401) | (4,335) | (5,025) |
Loss from operations | (15,831) | (2,370) | (4,032) | (4,739) |
Equity in earnings loss of unconsolidated subsidiaries | (49,009) | (7,339) | (9,223) | (43,579) |
Interest expense | (738) | (111) | (553) | (268) |
Loss before income taxes | (65,578) | (9,820) | (13,808) | (48,586) |
Income tax (expense) benefits | ||||
Income tax expense | 0 | 0 | 0 | 0 |
Reversal of contingent tax liability | 0 | 0 | 0 | 39,059 |
Income tax expense | 0 | 0 | 0 | 39,059 |
Net loss | (65,578) | (9,820) | (13,808) | (9,527) |
Other comprehensive loss | ||||
Foreign currency translation difference | (4,124) | (618) | (2,607) | (56) |
Total comprehensive loss | ¥ (69,702) | $ (10,438) | ¥ (16,415) | ¥ (9,583) |
CONDENSED FINANCIAL INFORMAT106
CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY (Details 2) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Sep. 30, 2016CNY (¥) | Sep. 30, 2016USD ($) | Sep. 30, 2015CNY (¥) | Sep. 30, 2014CNY (¥) | |
Net cash used in operating activities | ¥ 47,905 | $ 7,174 | ¥ 52,189 | ¥ (85,639) |
Net cash provided by (used in) financing activities | (48,816) | (7,310) | (9,466) | 394 |
Net increase in cash and cash equivalents | (7,392) | (1,107) | 22,364 | (85,806) |
Cash and cash equivalents, beginning of year | 66,025 | 9,888 | 46,268 | 131,978 |
Effect of exchange rate changes on cash and cash equivalents | (4,124) | (618) | (2,607) | 96 |
Cash and cash equivalents, end of year | 54,509 | 8,163 | 66,025 | 46,268 |
Parent Company [Member] | ||||
Net cash used in operating activities | (20,009) | (2,996) | (7,242) | (3,288) |
Net cash provided by (used in) financing activities | 14,881 | 2,228 | 3,255 | (452) |
Net increase in cash and cash equivalents | (5,128) | (768) | (3,987) | (3,740) |
Cash and cash equivalents, beginning of year | 341 | 51 | 671 | 4,332 |
Effect of exchange rate changes on cash and cash equivalents | 5,368 | 804 | 3,657 | 79 |
Cash and cash equivalents, end of year | ¥ 581 | $ 87 | ¥ 341 | ¥ 671 |
CONDENSED FINANCIAL INFORMAT107
CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY (Details Textual) - CNY (¥) ¥ in Thousands | Sep. 30, 2016 | Sep. 30, 2015 |
Amount of Restricted Net Assets for Consolidated and Unconsolidated Subsidiaries | ¥ 109,651 | ¥ 109,651 |