0001144204-13-002996.txt : 20130118 0001144204-13-002996.hdr.sgml : 20130118 20130118120610 ACCESSION NUMBER: 0001144204-13-002996 CONFORMED SUBMISSION TYPE: 20-F/A PUBLIC DOCUMENT COUNT: 11 CONFORMED PERIOD OF REPORT: 20120930 FILED AS OF DATE: 20130118 DATE AS OF CHANGE: 20130118 FILER: COMPANY DATA: COMPANY CONFORMED NAME: Origin Agritech LTD CENTRAL INDEX KEY: 0001321851 STANDARD INDUSTRIAL CLASSIFICATION: AGRICULTURE PRODUCTION - CROPS [0100] IRS NUMBER: 000000000 STATE OF INCORPORATION: D6 FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 20-F/A SEC ACT: 1934 Act SEC FILE NUMBER: 000-51576 FILM NUMBER: 13536645 BUSINESS ADDRESS: STREET 1: NO. 21 SHENG MING YUAN ROAD CITY: CHANGPING DISTRICT BEIJING STATE: F4 ZIP: 102206 BUSINESS PHONE: 858-847-9000 MAIL ADDRESS: STREET 1: NO. 21 SHENG MING YUAN ROAD CITY: CHANGPING DISTRICT BEIJING STATE: F4 ZIP: 102206 20-F/A 1 v332022_20fa.htm AMENDMENT TO FORM 20-F

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

 

WASHINGTON, D.C. 20549

 

FORM 20-F/A

(Amendment No. 1)

 

(Mark One)

 

¨   REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGE ACT OF 1934

 

OR

 

x   ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the fiscal year ended September 30, 2012

 

OR

 

¨   TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

OR

 

¨   SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

Commission file number: 000-51576

 

Origin Agritech Limited

(Exact name of Registrant as specified in its charter)

 

Not Applicable

(Translation of Registrant’s name into English)

 

British Virgin Islands

(Jurisdiction of incorporation or organization)

 

No. 21 Sheng Ming Yuan Road, Changping District, Beijing 102206, China

(Address of principal executive offices)

 

Dr. Han Gengchen

No. 21 Sheng Ming Yuan Road, Changping District, Beijing 102206, China

Tel: (86-10) 5890-7588

Fax: (86-10) 5890-7577

(Name, Telephone, E-mail and/or Facsimile number and Address of Company Contact Person)

 

Securities registered or to be registered pursuant to Section 12(b) of the Act.

 

Title of each class   Name of each exchange on which registered
Ordinary Shares   The NASDAQ Global Select Market

 

Securities registered or to be registered pursuant to Section 12(g) of the Act.

 

None  

 

 (Title of Class)

 

Securities for which there is a reporting obligation pursuant to Section 15(d) of the Act.

 

None

 

Indicate the number of outstanding shares of each of the issuer’s classes of capital or common stock as of the close of the period covered by the annual report: 23,382,812 ordinary shares.

 

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.

 

¨Yes   xNo

 

If this report is an annual or transition report, indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934.

 

¨Yes   xNo

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

 

xYes   ¨No

 

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate website, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 c) Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).

 

x Yes   ¨ No

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, or a non-accelerated filer.

 

¨Large accelerated filer xAccelerated filer ¨Non-accelerated filer

 

Indicate by a check mark which basis of accounting the registrant has used to prepare the financial statements included in this filing:

 

U.S.  GAAP x International Financial Reporting Standard as Other ¨
  Issued by the International Accounting Standards  
  Board ¨  

 

If “Other” has been checked in response to the previous question, indicate by check mark which financial statement item the registrant has elected to follow. 

¨Item 17               ¨ Item 18

 

If this is an annual report, indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

 

¨Yes     xNo

 

 
 

 

EXPLANATORY NOTE

 

This Amendment No. 1 (“Amendment”) to the Annual Report on Form 20-F for the year ended September 30, 2012, (“Form 20-F”) of Origin Agritech Limited, is being filed for the sole purpose of furnishing Exhibit 101 to the Form 20-F in accordance with Rule 405 of Regulation S-T. Exhibit 101 to this report provides the consolidated financial statements and related notes from the Form 20-F formatted in eXtensible Business Reporting Language (“XBRL”).

 

Pursuant to Rule 406T of Regulation S-T, the interactive data files of Exhibit 101 hereto are deemed not filed as part of the registration statement or any prospectus that incorporates those exhibits for purposes of Sections 11 and 12 of the Securities Act of 1933 and are deemed not filed for purposes of Section 18 of the Securities Exchange Act of 1934 and otherwise are not subject to liability under those sections.

 

This Amendment does not reflect events occurring after the filing of the Form 20-F or modify or update those disclosures that may be or have been affected by subsequent events. Such sub sequent matters will be addressed, as required, in subsequent reports filed by the registration with the SEC. Accordingly, this Amendment should be read in conjunction with the Form 20-F and the registrant’s other filings with the SEC.

 

 
 

 

ITEM 19. EXHIBITS  

 

Index to Exhibits  

 

Exhibit    
Number   Description
     
1.1   Memorandum and Articles of Association of Origin Agritech Limited re-registered under the new Business Companies Act of the British Virgin Islands as of July 10, 2006 (Incorporated by reference to Exhibit 1.1 of our Annual Report 20-F (file no. 000-51576) filed with the Securities and Exchange Commission on July 14, 2006.
     
4.1   2005 Performance Equity Plan (Incorporated by reference to Annex D of the proxy statement/prospectus included in our Registration Statement S-4/A (file no. 333-124709) filed with the Securities and Exchange Commission on September 27, 2005).
     
4.2   2009 Performance Equity Plan (Incorporated by reference to Exhibit 4.1 of our Registration Statement on Form S-8 (file no. 333-166226) filed with the Securities and Exchange Commission on April 22, 2010).
     
4.3   Technical Service Agreement between Origin Biotechnology and Beijing Origin (Incorporated by reference to Exhibit 10.14 of our Registration Statement S-4/A (file no. 333-124709) filed with the Securities and Exchange Commission on August 22, 2005).
     
4.4   Technical Service Agreement between Origin Biotechnology and Henan Origin (Incorporated by reference to Exhibit 10.15 of our Registration Statement S-4/A (file no. 333-124709) filed with the Securities and Exchange Commission on August 22, 2005).
     
4.5   Technical Service Agreement between Origin Biotechnology and Changchun Origin (Incorporated by reference to Exhibit 10.16 of our Registration Statement S-4/A (file no. 333-124709) filed with the Securities and Exchange Commission on August 22, 2005).
     
4.6   Form of Stock Consignment Agreement (Incorporated by reference to Exhibit 10.17 of our Registration Statement S-4/A (file no. 333-124709) filed with the Securities and Exchange Commission on August 22, 2005).
     
4.7   Technology Transfer Agreement between Henan Agriculture University and Beijing Origin (YuYu22) (Incorporated by reference to Exhibit 10.27 of our Registration Statement S-4/A (file no. 333-124709) filed with the Securities and Exchange Commission on August 22, 2005).
     
4.8   Joint Development agreement with Corn Research Institute of Li County (1st Agreement) (Incorporated by reference to Exhibit 10.28 of our Registration Statement S-4/A (file no. 333-124709) filed with the Securities and Exchange Commission on August 22, 2005).
     
4.9   Joint Development Agreement with Corn Research Institute of Li County (2nd Agreement) (Incorporated by reference to Exhibit 10.29 of our Registration Statement S-4/A (file no. 333-124709) filed with the Securities and Exchange Commission on September 16, 2005).
     
4.10   Form Equity Transfer Agreement between Beijing Origin and shareholders of Denong Zhengcheng Seed Co., Ltd. pursuant to which Beijing Origin acquired 52.21% equity interest in Denong Zhengcheng Seed Co., Ltd. dated as of January 16, 2006 (Incorporated by reference to Exhibit 4.16 of our Annual Report 20-F (file no. 000-51576 ) filed with the Securities and Exchange Commission on July 14, 2006),

 

 
 

 

Exhibit    
Number   Description
     
4.11   Equity Transfer Agreement between Beijing Origin and Jilin Academy of Agriculture Science dated as of December 6, 2005 (Incorporated by reference to Exhibit 4.17 of our Annual Report 20-F (file no. 000-51576) filed with the Securities and Exchange Commission on July 14, 2006).
     
4.12   Equity Transfer Agreement between Beijing Origin and China National Center for Biotechnology Development dated as of December 28, 2004 (Incorporated by reference to Exhibit 4.18 of our Annual Report 20-F (file no. 000-51576 ) filed with the Securities and Exchange Commission on July 14, 2006)
     
4.13   New Corn Seed Liyu 35 Joint Development Agreement between Beijing Origin and Shijiazhuang Liyu Technology Development Co., Ltd. dated as of March 30, 2006 (Incorporated by reference to Exhibit 4.20 of our Annual Report 20-F (file no. 000-51576 ) filed with the Securities and Exchange Commission on July 14, 2006).
     
4.14   Joint Development Agreement between Beijing Origin and Corn Research Institute of Li County dated January 31, 2002 (Incorporated by reference to Exhibit 4.21 of our Annual Report 20-F (file no. 000-51576) filed with the Securities and Exchange Commission on July 14, 2006).
     
4.15   Joint Development Agreement between Beijing Origin and Corn Research Institute of Li County dated January 9, 2003 (Incorporated by reference to Exhibit 4.22 of our Annual Report 20-F (file no. 000-51576) filed with the Securities and Exchange Commission on July 14, 2006).
     
8.1*   List of Subsidiaries
     
11.1   Code of Ethics (Incorporated by reference to Exhibit 11.1 of our Annual Report 20-F (file no. 000-51576) filed with the Securities and Exchange Commission on February 15, 2007).   
     
11.2   Code of Conduct (Incorporated by reference to Exhibit 11.2 of our Annual Report 20-F (file no. 000-51576) filed with the Securities and Exchange Commission on February 15, 2007).
     
12.1**   CEO Certification Pursuant to Rule 13a-14(a) (17 CFR 240.13a-14(a)) (17 CFR 240.13a-14(a)) or Rule 15d-1(a) (17 CFR 240.15d-14(a))
     
12.2**   CFO Certification Pursuant to Rule 13a-14(a) (17 CFR 240.13a-14(a)) or Rule 15d-1(a) (17 CFR 240.15d-14(a))
     
13.1**   CEO Certification Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
     
13.2**   CFO Certification Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
     
15.1*   Consent of BDO China Shu Lun Pan Certified Public Accountants LLP Limited to incorporation of its report on the Registrant's consolidated financial statements for fiscal years ended 2011 and 2012 into Registrant's Registration Statements on Forms S-8 (#333-145865 and #333-166226) and Form F-3 (#333-166236)
     
15.2*   Consent of BDO Limited to incorporation of its report on the Registrant's consolidated financial statements for fiscal year ended 2010 into Registrant's Registration Statements on Forms S-8 (#333-145865 and # 333-166226) and Form F-3 (#333-166236)
     
101.INS**   XBRL Instant Document
     
101.SCH**   XBRL Taxonomy Extension Schema Document
     
101.CAL**   XBRL Taxonomy Extension Calculation Linkbase Document

 

 
 

 

Exhibit    
Number   Description
     
101.DEF**   XBRL Taxonomy Extension Definition Linkbase Document
     
101.LAB**   XBRL Taxonomy Extension Label Linkbase Document
     
101.PRE**   XBRL Taxonomy Extension Presentation Linkbase Document

 

*Filed on January 10, 2013
**Filed herewith

 

 
 

 

SIGNATURE

 

The registrant hereby certifies that it meets all of the requirements for filing this amendment on Form 20-F and that it has duly caused and authorized the undersigned to sign this annual report on its behalf.

 

Date: January 18, 2013

 

ORIGIN AGRITECH LIMITED

 

/s/ Gengchen Han

 

Name: Gengchen Han

Title: Chief Executive Officer

 

 

 

EX-12.1 2 v332022_ex12-1.htm EXHIBIT 12.1

 

EXHIBIT 12.1

 

CERTIFICATION

 

I, Gengchen Han, certify that:

 

1.          I have reviewed this annual report on Form 20-F/A of Origin Agritech Limited;

 

2.          Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

 

3.          Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the company as of, and for, the periods presented in this report;

 

4.          The company's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the company and have:

 

(a)          Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the company, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

 

(b)          Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

 

(c)          Evaluated the effectiveness of the company's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

 

(d)          Disclosed in this report any change in the company's internal control over financial reporting that occurred during the period covered by the annual report that has materially affected, or is reasonably likely to materially affect, the company's internal control over financial reporting; and

 

5.          The company's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the company's auditors and the audit committee of the company's board of directors (or persons performing the equivalent functions):

 

(a)          All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the company's ability to record, process, summarize and report financial information; and

 

(b)          Any fraud, whether or not material, that involves management or other employees who have a significant role in the company's internal control over financial reporting.

 

Date: January 18, 2013

 

/s/ Gengchen Han

Name: Gengchen Han

Title: Chief Executive Officer

 

 

 

EX-12.2 3 v332022_ex12-2.htm EXHIBIT 12.2

EXHIBIT 12.2

 

CERTIFICATION

 

I, James Chen, certify that:

 

1.          I have reviewed this annual report on Form 20-F/A of Origin Agritech Limited;

 

2.          Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

 

3.          Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the company as of, and for, the periods presented in this report;

 

4.          The company's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the company and have:

 

(a)          Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the company, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

 

(b)          Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

 

(c)          Evaluated the effectiveness of the company's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

 

(d)          Disclosed in this report any change in the company's internal control over financial reporting that occurred during the period covered by the annual report that has materially affected, or is reasonably likely to materially affect, the company's internal control over financial reporting; and

 

5.          The company's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the company's auditors and the audit committee of the company's board of directors (or persons performing the equivalent functions):

 

(a)          All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the company's ability to record, process, summarize and report financial information; and

 

(b)          Any fraud, whether or not material, that involves management or other employees who have a significant role in the company's internal control over financial reporting.

 

Date: January 18, 2013

 

/s/ James Chen

Name: James Chen

Title: Chief Financial Officer

 

 

EX-13.1 4 v332022_ex13-1.htm EXHIBIT 13.1

EXHIBIT 13.1

 

ORIGIN AGRITECH LIMITED

 

Certification

 

Pursuant to 18 U.S.C. Section 1350, the undersigned, Gengchen Han, Chief Executive Officer of Origin Agritech Limited (the “Company”), hereby certifies, to his knowledge, that the Company's annual report on Form 20-F/A for the year ended September 30, 2011 (the “Report”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, and that the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

 

Date: January 18, 2013

 

/s/ Gengchen Han

Name: Gengchen Han

Title: Chief Executive Officer

 

 A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

 

The foregoing certification is being furnished with the Company’s Report pursuant to 18 U.S.C. Section 1350. It is not being filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and it is not to be incorporated by reference into any filing of the Company, whether made before or after the date hereof, regardless of any general incorporation language in such filing.

 

 

 

EX-13.2 5 v332022_ex13-2.htm EXHIBIT 13.2

 

EXHIBIT 13.2

 

ORIGIN AGRITECH LIMITED

 

Certification

 

Pursuant to 18 U.S.C. Section 1350, the undersigned, James Chen, Chief Financial Officer of Origin Agritech Limited (the “Company”), hereby certifies, to his knowledge, that the Company's annual report on Form 20-F/A for the year ended September 30, 2011 (the “Report”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, and that the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

 

Date: January 18, 2013

 

/s/ James Chen

Name: James Chen

Title: Chief Financial Officer

  

A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

 

The foregoing certification is being furnished with the Company’s Report pursuant to 18 U.S.C. Section 1350. It is not being filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and it is not to be incorporated by reference into any filing of the Company, whether made before or after the date hereof, regardless of any general incorporation language in such filing.

 

 

 

 

 

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(ii) Agritech’s successful completion of a follow-on offering; or (iii) a private investment into Agritech by a strategic investor (“Financing Adjustment”), then Agritech will pay an additional US$15,000 to State Harvest Shareholders and their designee If Origin generates net positive cash flow of US$2,000 or more on a consolidated basis (“Earnings Adjustment”), then State Harvest Shareholders and their designee will be entitled to receive 75% of the net positive cash flow up to a maximum of US$7,500 per fiscal year and US$15,000 in the aggregate. 40000 324584000 2000 0.75 7500 15000000 8050000 350000 4025000 1500000 0.9796 0.9796 0.9663 0.9641 0.93 0.9641 P5Y P40Y P10Y P8Y P10Y P20Y P15Y P5Y Shorter of the useful lives or the lease term P6Y P14Y P20Y P3Y 1362000 0 0 0 0 3846000 3640000 14000000 10900000 0 0 0 0 -4692000 0 Being an equity investment of the Company (note 10) Being an equity investment of the Company (note 10) Being non-controlling interests of Xinjiang Origin Being non-controlling interests of Beijing Origin 116000 6000 599000 935000 240000 5025000 5471000 306000 0 5000000 362000 1200000 6444000 0 68000 150000 0 0 0 602000 468000 90000 10050000 5953000 0 2000000 5000000 90000 2467000 6555000 0 0 0 0 0 25984000 0 0 0 0 9541000 0 8319000 0 28772000 2100000 9541000 2788000 0 0 0 1872000 4038000 7460000 2357000 280000 620000 0 928000 218000 186000 284000 134000 935000 977000 1301000 1050000 323000 0 0 574000 1617000 976000 197118000 266632000 34961000 10200000 43459000 10959000 22026000 21253000 27547000 12978000 27453000 13751000 21159000 8287000 8368000 241000 0 3000000 0 2666000 3999000 2195000 0 0 2805000 1679000 1235000 0.061 36569000 36399000 3475000 9692000 489000 8870000 502000 5846000 892000 140301000 155343000 52972000 73824000 11466000 11536000 18338000 10194000 212000 212000 223289000 251109000 61438000 66000000 28243000 131976000 6882000 35570000 11531000 16235000 12803000 0 18721000 20503000 22433000 0.23 0.30 0.1794 497000 1215000 2954000 -1345000 4030000 0 1200000 2467000 2100000 87912000 1687000 4763000 74723000 6739000 89825000 0 4763000 78323000 6739000 4314000 4314000 4619000 3108000 2645000 1616000 3786000 1510000 2232000 1280000 0 16568000 2977000 282000 37000 5000000 20000000 30000000 453000 2546000 6882000 35570000 0.0656 0.06888 0.0704 0.07315 0.07216 8539000 1469000 4092000 0.0570 0.0656 0.0704 206000 10158000 1050000 1050000 2009000 1443000 3789000 2028000 9949000 18966000 1813000 1813000 150000 36000 1284000 3917000 350000 782000 2407000 3425000 677000 595000 310000 310000 3600000 3600000 2060000 0 8526000 6289000 2171000 2332000 1720000 10900000 2210000 14000000 2008-06-16 2010-01-04 2012-01-03 2011-01-03 2005-11-08 2008-03-28 2007-10-22 2008-06-16 2010-01-04 2012-01-03 2008-03-28 2011-01-03 2005-11-08 2007-10-22 214120 89300 64400 5000 156167 10000 125000 0 0 10000 120000 0 120000 0 130167 5000 10000 120000 365000 115000 0 0 5000 974000 20000 381000 10000 125000 120000 0 0 0 120000 0 0 0 365000 0 0 0 0 0 0 0 0 5000 0 0 0 0 0 0 0 0 5667 5000 0 0 10000 120000 0 0 0 130167 0 10000 120000 365000 115000 0 124500 5000 3.42 7.20 1.45 2.69 6.08 2.69 4.55 8.75 9.27 5.30 6.64 4.00 12.23 10.84 2.55 4.00 6.64 12.23 2.55 5.30 10.84 12.23 8.75 9.27 0.0373 0.0166 0.0040 0.0251 0.0103 0.0447 0.0408 P2Y10M24D P3Y P3Y P2Y8M12D P3Y P3Y6M P3Y9M18D 0.7727 0.9281 0.9030 0.7817 0.8803 0.3079 0.6086 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1500000 1500000 2010-11-08 2012-10-22 P5Y P5Y P1Y P5Y P1Y P5Y 259500 480000 2.66 0 P2Y10M28D P3Y25D 0 0 942000 769000 P3M4D 498851 29377000 20928000 33265000 3634000 5772000 3498000 6929000 28060000 45966000 25032000 44211000 94454000 11042000 11694000 0 25586000 188000 45944000 170328000 10997000 11694000 77399000 15747000 0 54491000 0.33 0.25 0.25 0.25 -0.10 -5.50 2.18 0.04 3.07 -1.56 0.00 4.03 17.57 0.00 0.00 0.00 -0.05 9.98 -20.78 -0.02 2.56 0.32 0.12 14.39 -2.02 0.15 0.15 0.15 0.25 0.15 7648000 5226000 2012000 0.33 -0.23 -0.16 0.33 -0.23 -0.16 147801 0 10494000 12752000 13476000 0.50 0.10 0.10 2598000 0 0 24789000 24789000 21092000 15353000 730000 9000 5000000 36388000 8773000 0 25615000 2000000 2685000 1504000 1546000 1316000 900000 8409000 16360000 3614000 5310000 3773000 0.0656 0.0732 118000 3000 0 0 1595000 -11707000 -11678000 -5880000 60507000 -11402000 4446000 45236000 0 1751000 0 109651000 109651000 0 0 -431000 0 35000000 5520000 The balance as of September 30, 2012 represented the research funding from Origin to SK Wu Research Institute (through Henan Agriculture University), which is jointly sponsored by the provincial government of Henan Province and Origin. 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". During the year, both Beijing Origin and the non-controlling interest made capital injection to Xinjiang Originbo Seed Company Limited, leading to an increase in its paid in capital to RMB100,000 from RMB40,000 in last year. Subsequent to the capital injection, Beijing Origin holds a 51% ownership interest in Xinjiang Origin. In June 2012, Beijing Origin made capital injection to Denong, leading to an increase in its paid in capital to RMB120,000 from 80,000 last year. Subsequent to the capital injection, the share ratio of Beijing Origin increased to 98.58% from 97.87% last year. In July 2012, Beijing Origin made capital injection to Changchun Origin, leading to an increase in its paid in capital to RMB30,000 from 5,000 in last year. Subsequent to the capital injection, the share ratio of Beijing Origin increased to 99.83% from 99% last year. As of April 6, 2012, Kunfeng has completed its restructuring procedures and is now a wholly owned subsidiary of BioTech. The balance represented the loan to one of the customers in Denong with the interest rate of 6.1% per annum. Full repayment was received in February 2012 together with the interest. Salaries and bonus payable increased in fiscal year 2012 due to our bonus payment timing change after our corporate-wide restructuring and the introduction of pay-for-performance contracts with employees. RMB310 were borrowed from employees of Denong with interest free, unsecured and have no fixed repayment terms at the years ended September 30, 2011 and 2012, respectively. RMB3,600 was borrowed from third party companies with interest free, unsecured and have no fixed repayment terms at the years ended September 30, 2011 and 2012, respectively. Tranche 3 consists of different vesting structures. The expected option life and fair value presented above are weighted average numbers. Tranche 1 was modified on September 14, 2009. 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INVENTORIES (Tables)
12 Months Ended
Sep. 30, 2012
Inventory Disclosure [Abstract]  
Schedule of Inventory, Current [Table Text Block]

Inventories consist of the following:

    September 30,  
    2011     2012  
    RMB     RMB  
             
Work in progress and supplies     197,118       266,632  
Finished goods     34,961       43,459  
Provision     (21,253 )     (27,547 )
                 
      210,826       282,544  
Schedule Of Provision For Inventories [Table Text Block]

Provision for inventories is as below:

 

    Years ended
September 30,
 
    2011     2012  
    RMB     RMB  
             
Balance at beginning of year     22,026       21,253  
Additions     12,978       27,453  
Write-off     (13,751 )     (21,159 )
                 
Balance at end of year     21,253       27,547  
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ORGANIZATION AND PRINCIPAL ACTIVITIES (Details 1) (CNY)
In Thousands, unless otherwise specified
Sep. 30, 2012
Net assets acquired:  
Cash 163,517
Other current assets 6,201
Due to State Harvest Shareholders and their designee (2,022)
Other payables and accrued expenses (965)
Business Acquisition, Cost of Acquired Entity, Purchase Price 166,731
Less: Transaction costs paid in cash (14,430)
Tax effect of the Share Exchange Transaction (39,060)
Business Acquisition, Purchase Price Allocation, Assets Acquired (Liabilities Assumed), Net 113,241
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SHARE OPTION PLANS (Tables)
12 Months Ended
Sep. 30, 2012
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 and 2009 Plans is as follows:

 

    Tranche 1     Tranche 2     Tranche 3     Tranche 4     Tranche 5     Tranche 6     Tranche 7  
Grant date   November 
8, 2005
    October 22,
2007
    March 28,
2008
    June 16, 
2008
    January 4,
2010
    January 3,
2011
    January 3,
2012
 
                                           
Options outstanding as of October 1, 2010     64,400       5,000       156,167       10,000       125,000       -       -  
Number of options granted     -       -       -       -       -       120,000       -  
Options exercised     (64,400 )     -       (26,000 )     -       -       -       -  
Options cancelled/ forfeited/ expired     -       -       -       -       (5,000 )     -       -  
                                                         
Options outstanding as of September 30, 2011     -       5,000       130,167       10,000       120,000       120,000       -  
Number of options granted     -       -       -       -       -       -       365,000  
Options cancelled/ forfeited/ expired     -       -       (5,667 )     -       -       (5,000 )     -  
Outstanding as of September 30, 2012     -       5,000       124,500       10,000       120,000       115,000       365,000  
                                                         
Options vested and exercisable                                                        
At September 30, 2011     -       -       130,167       10,000       120,000       -       -  
                                                         
At September 30, 2012     -       5,000       124,500       10,000       120,000       115,000       365,000  
                                                         
Weighted average fair value at the grant date (USD)     2.69       4.55       2.69       3.42       7.20       6.08       1.45  
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
1#
    Tranche
2
    Tranche
3*
    Tranche
4
    Tranche
5
    Tranche
6
    Tranche
7
 
                                           
Exercise price (USD)     8.75       9.27       5.30       6.64       12.23       10.84       2.55  
Average risk-free interest rate     4.47 %     4.08 %     2.51 %     3.73 %     1.66 %     1.03 %     0.40 %
Expected option life (year)     3.5       3.8       2.7       2.9       3       3       3  
Volatility rate     30.79 %     60.86 %     78.17 %     77.27 %     92.81 %     88.03 %     90.30 %
Dividend yield     -       -       -       -       -       -       -  

  

# Tranche 1 was modified on September 14, 2009. The exercise price modified to USD 4.00 and the fair value was USD 2.66 at the modified date.

 

* Tranche 3 consists of different vesting structures. The expected option life and fair value presented above are weighted average numbers.
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LAND USE RIGHTS, NET (Details)
In Thousands, unless otherwise specified
Sep. 30, 2012
USD ($)
Sep. 30, 2012
CNY
Sep. 30, 2011
CNY
Land use rights   36,399 36,569
Accumulated amortization   (4,081) (3,475)
Total $ 5,097 32,318 33,094
XML 16 R55.htm IDEA: XBRL DOCUMENT v2.4.0.6
ORGANIZATION AND PRINCIPAL ACTIVITIES (Details 2) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Sep. 30, 2012
Year 2006 [Member]
 
Business Acquisition Additional Purchase Price Profit After Tax $ 11,000
Year 2007 [Member]
 
Business Acquisition Additional Purchase Price Profit After Tax 16,000
Year 2008 [Member]
 
Business Acquisition Additional Purchase Price Profit After Tax 21,000
Year 2009 [Member]
 
Business Acquisition Additional Purchase Price Profit After Tax $ 29,000
XML 17 R78.htm IDEA: XBRL DOCUMENT v2.4.0.6
ACQUIRED INTANGIBLE ASSETS, NET (Details Textual) (CNY)
In Thousands, unless otherwise specified
12 Months Ended
Sep. 30, 2012
Sep. 30, 2011
Sep. 30, 2010
Amortization of Intangible Assets 5,846 8,870 9,692
XML 18 R46.htm IDEA: XBRL DOCUMENT v2.4.0.6
BORROWINGS (Tables)
12 Months Ended
Sep. 30, 2012
Borrowings Disclosure [Abstract]  
Schedule of Debt [Table Text Block]
  September 30,  
    2011     2012  
    RMB     RMB  
             
Short-term borrowings     20,000       35,000  
                 
Current portion of long-term borrowings     -       4,000  
                 
Long-term borrowings     -       35,000  
XML 19 R33.htm IDEA: XBRL DOCUMENT v2.4.0.6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)
12 Months Ended
Sep. 30, 2012
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, 2012 of RMB6.3410 to US$1.00. Such translation amounts should not be construed as representations that the Renminbi amounts could be readily converted into United States dollar amounts at that rate or any other rate.

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, useful lives of plant and equipment and acquired intangible assets, the valuation allowance for deferred income tax assets and the valuation of embedded derivatives of the convertible notes. 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.

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. 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

 

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. A capital lease is accounted for as if there was an acquisition of an asset and an incurrence of an obligation at the inception of the lease. All other leases are accounted for as operating leases. The Company has no capital leases for any of the periods presented.

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, 2011 and 2012 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. The movement for goodwill is as follow:

 

    September 30,  
    2010     2011     2012  
    RMB     RMB     RMB  
                   
Balance at beginning of year     16,665       16,665       11,973  
Additions     -       -       -  
Written off     -       (4,692 )     -  
                         
      16,665       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. 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

 

Trademarks, which have indefinite live, 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.

Revenue Recognition, Policy [Policy Text Block]

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.

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. In fiscal years 2011 and 2012, the Company received government subsidies of RMB nil and RMB14,000 respectively for plant and equipment projects; RMB nil and RMB10,900 respectively for land use right; and RMB nil and RMB3,640 for R&D and others. Government subsidies recognized as other income in the statement of income for the year ended September 30, 2010, 2011 and 2012, were RMB1,362, RMB nil and RMB3,846, respectively.

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, 2011 and 2012, 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, 2010, 2011 and 2012, advertising costs were RMB1,560, RMB1,126 and RMB3,215, respectively.

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, 2010, 2011 and 2012, shipping and handling cost included in selling and marketing expenses were RMB12,164, RMB10,503, and RMB11,446 respectively.

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 uncollectible 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.

New Accounting Pronouncements, Policy [Policy Text Block]

Recently issued accounting pronouncements

 

In May 2011, the FASB issued ASU No. 2011-04, Fair Value Measurement (Topic 820): Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs. This pronouncement is an authoritative guidance to amend certain measurement and disclosure requirements related to fair value measurements to improve consistency with international reporting standards. This guidance is effective prospectively for public entities for interim and annual reporting periods beginning after December 15, 2011, with early adoption prohibited. The Company is currently evaluating the effect of ASU No. 2011-04, but does not expect its adoption will have a material effect on its consolidated financial statements.

 

In June 2011, the FASB issued ASU 2011-05, Comprehensive Income (Topic 220): Presentation of Comprehensive Income, which is a new guidance on the presentation of comprehensive income that will require a company to present components of net income and other comprehensive income in one continuous statement or in two separate, but consecutive statements. There are no changes to the components that are recognized in net income or other comprehensive income under current GAAP. This guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2011, with early adoption permitted. It is applicable to the Company’s fiscal year beginning January 1, 2012. Currently, the Company evaluated the effect of ASU 2011-05 on its financial statements and does not expect its adoption will have a material effect on its consolidated financial statements.

 

In September 2011, the FASB issued ASU No. 2011-08, Intangibles—Goodwill and Other (Topic 350): Testing Goodwill for Impairment, which specifies that an entity has the option to first assess qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If, after assessing the totality of events or circumstances, an entity determines it is not more likely than not that the fair value of a reporting unit is less than its carrying amount, then performing the two-step impairment test is unnecessary. However, if an entity concludes otherwise, then it is required to perform the first step of the two-step impairment test by calculating the fair value of the reporting unit and comparing the fair value with the carrying amount of the reporting unit, as described in FASB ASC 350-20-35-4. If the carrying amount of a reporting unit exceeds its fair value, then the entity is required to perform the second step of the goodwill impairment test to measure the amount of the impairment loss, if any, as described in FASB ASC 350-20-35-9. Under the amendments in ASU No. 2011-08, an entity has the option to bypass the qualitative assessment for any reporting unit in any period and proceed directly to performing the first step of the two-step goodwill impairment test. An entity may resume performing the qualitative assessment in any subsequent period. ASU No. 2011-08 is effective for annual and interim goodwill impairment tests performed for fiscal years beginning after December 15, 2011. Early adoption is permitted. The adoption of ASU No. 2010-28 is not expected to have any impact on the Company’s financial position, results of operations and cash flows.

 

In December 2011, the FASB issued ASU 2011-11, Balance Sheet (Topic 210): disclosures about Offsetting Assets and Liabilities, which requires entities to disclose both gross and net information about both instruments and transactions eligible for offset in the statement of financial position and instruments and transactions subject to an agreement similar to a master netting agreement. The objective of the disclosure is to facilitate comparison between those entities that prepare their financial statements on the basis of U.S. GAAP and those entities that prepare their financial statements on the basis of International Financial Reporting Standards (“IFRS”). This ASU is effective for fiscal years, and interim periods within those years, beginning on or after January 1, 2013. Retrospective presentation for all comparative periods presented is required. Its adoption of ASU 2011-11 is not expected to have material impact on its consolidated financial statements.

 

ASU 2011-05 was modified by the issuance of ASU 2011-12, Comprehensive Income (Topic 220): Deferral of the Effective Date for Amendments to the Presentation of Reclassifications of Items Out of Accumulated Other Comprehensive Income in Accounting Standards Update No. 2011-05 in December 2011, which indefinitely deferred certain provisions of ASU 2011-05, including the requirement to present reclassification adjustments out of accumulated other comprehensive income by component in both the statement in which net income is presented and the statement in which other comprehensive income is presented. This amendment is effective for both annual and interim financial statements beginning after December 15, 2011. The Company believes that its adoption of ASU 2011-12 will not have any material impact on its consolidated financial statements.

  

In July 2012, the FASB issued ASU 2012-02, Testing Indefinite-Lived Intangible Assets for Impairment, which allows companies to perform a qualitative assessment to determine whether further impairment testing of indefinite-lived intangible assets is necessary, similar in approach to the goodwill impairment test. The new guidance allows an entity the option to first assess qualitatively whether it is more likely than not (that is, a likelihood of more than 50 percent) that an indefinite-lived intangible asset is impaired, thus necessitating that it perform the quantitative impairment test. An entity is not required to calculate the fair value of an indefinite-lived intangible asset and perform the quantitative impairment test unless the entity determines that it is more likely than not that the asset is impaired. The new guidance is effective for annual and interim impairment tests performed for fiscal years beginning after September 15, 2012. Early adoption is permitted for annual and interim impairment tests performed as of a date before July 27, 2012, if the financial statements for the most recent annual or interim period have not yet been issued. The Company will adopt the provisions of this new guidance on October 1, 2012. The Company believes that its adoption of ASU 2012-02 will not have any material impact on its consolidated financial statements.

 

In October 2012, the FASB issued ASU 2012-04, Technical Corrections and Improvements, which makes certain technical corrections and “conforming fair value amendments” to the FASB Accounting Standards Codification. The amendments affect various codification topics and apply to all reporting entities within the scope of those topics. These provisions of the amendment are effective upon issuance, except for amendments that are subject to transition guidance, which will be effective for fiscal periods beginning after December 15, 2012. The Company believes that its adoption of ASU 2012-04 will not have any material impact on its consolidated financial statements.

XML 20 R79.htm IDEA: XBRL DOCUMENT v2.4.0.6
OTHER ASSETS (Details)
In Thousands, unless otherwise specified
Sep. 30, 2012
USD ($)
Sep. 30, 2012
CNY
Sep. 30, 2011
CNY
Prepaid lease   2,232 1,510
Deposits for purchase of acquired intangible assets   0 1,280
Deposits for purchase of plant and equipment   2,977 16,568
Others   37 282
Other Assets, Noncurrent, Total $ 827 5,246 19,640
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PLANT AND EQUIPMENT, NET (Details Textual) (CNY)
In Thousands, unless otherwise specified
12 Months Ended
Sep. 30, 2012
Sep. 30, 2011
Sep. 30, 2010
Buildings and Improvements Gross Collateral To Bank Loan 35,570 6,882  
Depreciation 12,803 16,235 11,531
XML 23 R89.htm IDEA: XBRL DOCUMENT v2.4.0.6
INCOME TAXES (Details 1)
In Thousands, unless otherwise specified
Sep. 30, 2012
USD ($)
Sep. 30, 2012
CNY
Sep. 30, 2011
CNY
Non-current deferred tax assets:      
Net operating loss carry forward   33,265 20,928
Impairment on inventory   5,772 3,634
Others   6,929 3,498
Non-current deferred income tax assets   45,966 28,060
Valuation allowances   (44,211) (25,032)
Net non-current deferred income tax assets $ 277 1,755 3,028
XML 24 R57.htm IDEA: XBRL DOCUMENT v2.4.0.6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - GOODWILL (Details)
In Thousands, unless otherwise specified
12 Months Ended
Sep. 30, 2012
CNY
Sep. 30, 2011
CNY
Sep. 30, 2010
CNY
Sep. 30, 2012
USD ($)
Balance 11,973 16,665 16,665 $ 1,888
Additions 0 0 0  
Written off 0 (4,692) 0  
Balance 11,973 11,973 16,665 $ 1,888
XML 25 R76.htm IDEA: XBRL DOCUMENT v2.4.0.6
ACQUIRED INTANGIBLE ASSETS, NET (Details)
In Thousands, unless otherwise specified
Sep. 30, 2012
USD ($)
Sep. 30, 2012
CNY
Sep. 30, 2011
CNY
Sep. 30, 2012
Technology Rights [Member]
CNY
Sep. 30, 2011
Technology Rights [Member]
CNY
Sep. 30, 2012
Distribution Rights [Member]
CNY
Sep. 30, 2011
Distribution Rights [Member]
CNY
Sep. 30, 2012
Trademarks [Member]
CNY
Sep. 30, 2011
Trademarks [Member]
CNY
Sep. 30, 2012
Other Intangible Assets [Member]
CNY
Sep. 30, 2011
Other Intangible Assets [Member]
CNY
Acquired Finite Lived Intangible Asset Gross   89,825 87,912 78,323 74,723 6,739 6,739 0 1,687 4,763 4,763
Accumulated amortization   (59,926) (54,366)                
Impairment provision   (4,314) (4,314)                
Acquired intangible assets, net $ 4,035 25,585 29,232                
XML 26 R86.htm IDEA: XBRL DOCUMENT v2.4.0.6
SHARE OPTION PLANS (Details Textual)
12 Months Ended 12 Months Ended 12 Months Ended 12 Months Ended 12 Months Ended 12 Months Ended 12 Months Ended 12 Months Ended 1 Months Ended 12 Months Ended 12 Months Ended 1 Months Ended 12 Months Ended
Sep. 30, 2012
USD ($)
Sep. 30, 2012
CNY
Sep. 30, 2011
CNY
Sep. 30, 2010
CNY
Sep. 30, 2011
USD ($)
Sep. 30, 2012
Tranche 1 [Member]
USD ($)
Sep. 30, 2011
Tranche 1 [Member]
Sep. 30, 2010
Tranche 1 [Member]
Sep. 30, 2012
Tranche 2 [Member]
USD ($)
Sep. 30, 2011
Tranche 2 [Member]
Sep. 30, 2010
Tranche 2 [Member]
Sep. 30, 2012
Tranche 3 [Member]
USD ($)
Sep. 30, 2011
Tranche 3 [Member]
Sep. 30, 2010
Tranche 3 [Member]
Sep. 30, 2012
Tranche 4 [Member]
USD ($)
Sep. 30, 2011
Tranche 4 [Member]
Sep. 30, 2010
Tranche 4 [Member]
Sep. 30, 2012
Tranche 5 [Member]
USD ($)
Sep. 30, 2011
Tranche 5 [Member]
Sep. 30, 2010
Tranche 5 [Member]
Sep. 30, 2012
Tranche 6 [Member]
USD ($)
Sep. 30, 2011
Tranche 6 [Member]
Sep. 30, 2010
Tranche 6 [Member]
Sep. 30, 2012
Tranche 7 [Member]
USD ($)
Sep. 30, 2011
Tranche 7 [Member]
Sep. 30, 2010
Tranche 7 [Member]
Sep. 14, 2009
2005 Performance Equity Plan [Member]
USD ($)
Nov. 08, 2005
2005 Performance Equity Plan [Member]
Nov. 30, 2005
2005 Performance Equity Plan [Member]
Tranche 1 [Member]
USD ($)
Oct. 31, 2007
2005 Performance Equity Plan [Member]
Tranche 2 [Member]
USD ($)
Mar. 31, 2008
2005 Performance Equity Plan [Member]
Tranche 3 [Member]
USD ($)
Jun. 30, 2008
2005 Performance Equity Plan [Member]
Tranche 4 [Member]
USD ($)
Jan. 31, 2010
2005 Performance Equity Plan [Member]
Tranche 5 [Member]
USD ($)
Jan. 31, 2011
2005 Performance Equity Plan [Member]
Tranche 6 [Member]
USD ($)
Jan. 31, 2012
2005 Performance Equity Plan [Member]
Tranche 7 [Member]
USD ($)
Apr. 22, 2010
2009 Performance Equity Plan [Member]
Sep. 30, 2012
Before Adjustment [Member]
Sep. 30, 2012
Before Adjustment [Member]
2005 Performance Equity Plan [Member]
Sep. 30, 2012
Before Adjustment [Member]
2009 Performance Equity Plan [Member]
Sep. 30, 2012
After Adjustment [Member]
Sep. 30, 2011
After Adjustment [Member]
Sep. 14, 2009
After Adjustment [Member]
Sep. 30, 2009
After Adjustment [Member]
2005 Performance Equity Plan [Member]
Tranche 1 [Member]
USD ($)
Sep. 14, 2009
After Adjustment [Member]
2005 Performance Equity Plan [Member]
Tranche 1 [Member]
USD ($)
Sep. 14, 2009
After Adjustment [Member]
Restricted Stock [Member]
Sep. 30, 2012
Minimum [Member]
Before Adjustment [Member]
Sep. 30, 2012
Minimum [Member]
After Adjustment [Member]
USD ($)
Sep. 30, 2012
Maximum [Member]
Before Adjustment [Member]
Sep. 30, 2012
Maximum [Member]
After Adjustment [Member]
USD ($)
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized                                                       1,500,000               1,500,000                          
Number of options granted           0 0   0 0   0 0   0 0   0 0   0 120,000   0 0       974,000 20,000 381,000 10,000 125,000 120,000 365,000                            
Exercise price (USD)           $ 8.75 [1]     $ 9.27     $ 5.30 [2]     $ 6.64     $ 12.23     $ 10.84     $ 2.55         $ 8.75 $ 9.27 $ 5.30 $ 6.64 $ 12.23 $ 10.84 $ 2.55               $ 4.00       $ 4.00   $ 12.23
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Date                                                         Nov. 08, 2010 Oct. 22, 2012                                      
Share Based Compensation Arrangement By Share Based Payment Award Award Expiration Period                                                                         5 years     5 years                  
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period                                                                                           1 year 1 year 5 years 5 years
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant                                                                           259,500 480,000                    
Share Based Compensation Arrangement By Share Based Payment Award Weighted Average Fair Value                                                     $ 2.66                                 $ 0          
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number           0 0 64,400 5,000 5,000 5,000 0 130,167 156,167 10,000 10,000 10,000 120,000 120,000 125,000 115,000 120,000 0 365,000 0 0                               214,120     89,300        
Issuance of common stock upon exercise of share options (in shares)           0 64,400   0 0   0 (26,000)   0 0   0 0   0 0   0 0                             0 90,400                
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term 3 years 25 days 3 years 25 days 2 years 10 months 28 days                                                                                            
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value $ 0       $ 0                                                                                        
Share-based compensation expense 525,000 3,327,000 4,638,000 4,868,000                                                                                          
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized, Stock Options   769,000 942,000                                                                                            
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized, Period for Recognition 3 months 4 days 3 months 4 days                                                                                              
[1] Tranche 1 was modified on September 14, 2009. The exercise price modified to USD 4.00 and the fair value was USD 2.66 at the modified date.
[2] Tranche 3 consists of different vesting structures. The expected option life and fair value presented above are weighted average numbers.
XML 27 R81.htm IDEA: XBRL DOCUMENT v2.4.0.6
BORROWINGS (Details Textual)
In Thousands, unless otherwise specified
12 Months Ended 12 Months Ended
Sep. 30, 2012
CNY
Sep. 30, 2011
CNY
Sep. 30, 2010
CNY
Sep. 30, 2012
USD ($)
Sep. 30, 2012
Beijing Origin Seed Limited [Member]
CNY
Sep. 30, 2012
Linze Origin Seed Limited [Member]
Sep. 30, 2011
Linze Origin Seed Limited [Member]
CNY
Sep. 30, 2012
Xinjiang Originbo Seed Company Limited [Member]
Maximum [Member]
Sep. 30, 2012
Xinjiang Originbo Seed Company Limited [Member]
Minimum [Member]
Short Term Debt Secured 5,000       5,000   20,000    
Short Term Debt Unsecured 30,000                
Finite Lived Intangible Assets Collateral To Bank Loan         2,546   453    
Plant and Equipment Gross Collateral To Bank Loan         35,570   6,882    
Short Term Debt Instrument Annual Interest Rate         6.888%   6.56%    
Long Term Debt Instrument Annual Interest Rate           7.216%   7.315% 7.04%
Long-term Debt, Excluding Current Maturities 35,000 0   5,520          
Current portion of long-term borrowings (note 13) 4,000 0   630          
Interest Expense, Debt 4,092 1,469 8,539            
Debt, Weighted Average Interest Rate   6.56% 5.70% 7.04%          
XML 28 R87.htm IDEA: XBRL DOCUMENT v2.4.0.6
TREASURY STOCK (Details Textual) (CNY)
In Thousands, except Share data, unless otherwise specified
12 Months Ended
Sep. 30, 2007
Stock Repurchased During Period, Shares (in shares) 498,851
Stock Repurchased During Period, Value 29,377
XML 29 R77.htm IDEA: XBRL DOCUMENT v2.4.0.6
ACQUIRED INTANGIBLE ASSETS, NET (Details 1)
In Thousands, unless otherwise specified
Sep. 30, 2012
USD ($)
Sep. 30, 2012
CNY
Sep. 30, 2011
CNY
2013   4,619  
2014   3,786  
2015   3,108  
2016   2,645  
2017   1,616  
Total $ 5,097 32,318 33,094
XML 30 R71.htm IDEA: XBRL DOCUMENT v2.4.0.6
LAND USE RIGHTS, NET (Details Textual)
In Thousands, unless otherwise specified
12 Months Ended 12 Months Ended
Sep. 30, 2012
CNY
Sep. 30, 2011
CNY
Sep. 30, 2010
CNY
Sep. 30, 2012
USD ($)
Sep. 30, 2012
Use Rights [Member]
CNY
Sep. 30, 2011
Use Rights [Member]
CNY
Sep. 30, 2010
Use Rights [Member]
CNY
Sep. 30, 2012
Asset Pledged As Collateral [Member]
CNY
Sep. 30, 2011
Asset Pledged As Collateral [Member]
CNY
Land use rights, net 32,318 33,094   $ 5,097       2,546 453
Amortization of Intangible Assets 5,846 8,870 9,692   892 502 489    
XML 31 R25.htm IDEA: XBRL DOCUMENT v2.4.0.6
INCOME TAXES
12 Months Ended
Sep. 30, 2012
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 subject to taxation 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% to 25% on January 1, 2008, according to the Corporate Income Tax Law. The preferential tax rate previously enjoyed by the PRC entities is gradually transitioned to the new standard rate of 25% over a five-year transitional period. In addition, article 28 of the new tax law stated that the income tax rate of a “high technology” company (high-tech status) is to remain at 15%.

 

Preferential tax treatment of Beijing Origin as “high technology” company (High-tech Status) has been agreed with the relevant tax authorities. Beijing Origin is entitled to a preferential tax rate of 15% which is subject to annual review. As a result of these preferential tax treatments, the reduced tax rates applicable to Beijing Origin Seed Limited for 2010, 2011 and 2012 are 15%.

 

Had all the above tax holidays and concessions not been available, the tax charges would have been higher by RMB7,648, RMB5,226 and RMB2,012, and the basic net income (loss) per share would have been lower (higher) by RMB0.33, RMB(0.23) and RMB(0.16) for the years ended September 30, 2010, 2011 and 2012, respectively. The diluted net income (loss) per share for the years ended September 30, 2010, 2011 and 2012 would have been lower (higher) by RMB0.33, RMB(0.23) and RMB(0.16), respectively.

 

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, 2012, the management considered that the Company had no uncertain tax positions affected its consolidated financial position and results of operations or cash flow other than for the contingent US tax liabilities mentioned under note 21. The Company will continue to evaluate for the uncertain position in future. The estimated interest costs have been provided in the Company’s financial statements up to the year ended September 30, 2012. 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.

 

 

 

The provision for income taxes expenses consists of the following:

 

    Year ended
September 30,
 
    2010     2011     2012  
    RMB     RMB     RMB  
                   
Current     4,046       6,991       589  
Deferred     5,273       6,739       1,273  
                         
      9,319       13,730       1,862  

 

The principal components of the deferred income tax assets are as follows:

 

    September 30,  
    2011     2012  
    RMB     RMB  
Non-current deferred tax assets:                
Net operating loss carry forward     20,928       33,265  
Impairment on inventory     3,634       5,772  
Others     3,498       6,929  
                 
Non-current deferred income tax assets     28,060       45,966  
Valuation allowances     (25,032 )     (44,211 )
                 
Net non-current deferred income tax assets     3,028       1,755  

 

The Company did not have any significant temporary differences relating to deferred tax liabilities as of September 30, 2011 and 2012.

 

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. The expiration period of unused tax losses is as follows:

 

    Year ended
September 30,
 
    2011     2012  
    RMB     RMB  
Calendar year ending,            
2012     11,694       11,694  
2013     25,586       15,747  
2014     188       -  
2015     11,042       10,997  
2016     45,944       54,491  
2017     -       77,399  
                 
      94,454       170,328  

 

 

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,
 
    2010     2011     2012  
    %     %     %  
                   
Statutory rate     25       25       25  
Effect of preferential tax treatment     (10 )     (550 )     218  
Effect of different tax jurisdiction     4       307       (156 )
Permanent book-tax difference     -       403       1,757  
Effect of changes of applicable tax rate     -       -       -  
Change in valuation allowance     (5 )     998       (2,078 )
Under (over) provision in prior year     (2 )     256       32  
                         
Effective income tax rate     12       1,439       (202 )
XML 32 R50.htm IDEA: XBRL DOCUMENT v2.4.0.6
INCOME (LOSS) PER SHARE (Tables)
12 Months Ended
Sep. 30, 2012
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 income (loss) per share for the

years indicated:

 

    Year ended
September 30,
 
    2010     2011     2012  
    RMB     RMB     RMB  
                   
Net income (loss) (numerator), basic and diluted     49,053       (23,079 )     (1,434 )
                         
Shares (denominator):                        
Common stock outstanding     23,292,412       23,382,812       23,382,812  
Weighted average common stock outstanding used in computing basic income per share     23,189,464       23,351,615       23,382,812  
                         
Add:  Share options     147,801       -       -  
Weighted average common stock outstanding used in computing diluted income per share     23,337,265       23,351,615       23,382,812  
                         
Net income (loss) per share-basic     2.12       (1.00 )     (0.06 )
                         
Net income (loss) per share-diluted     2.10       (1.00 )     (0.06 )
XML 33 R42.htm IDEA: XBRL DOCUMENT v2.4.0.6
PLANT AND EQUIPMENT, NET (Tables)
12 Months Ended
Sep. 30, 2012
Property, Plant and Equipment [Abstract]  
Property, Plant and Equipment [Table Text Block]

Plant and equipment, net consist of the following:

    September 30,  
    2011     2012  
    RMB     RMB  
             
Plant and building     140,301       155,343  
Machinery and equipment     52,972       73,824  
Furniture and office equipment     11,466       11,536  
Motor vehicles     18,338       10,194  
Leasehold improvements     212       212  
                 
Total     223,289       251,109  
Accumulated depreciation     (61,438 )     (66,000 )
Construction in progress     28,243       131,976  
                 
Plant and equipment, net     190,094       317,085  
XML 34 R75.htm IDEA: XBRL DOCUMENT v2.4.0.6
EQUITY INVESTMENTS (Details Textual) (CNY)
In Thousands, unless otherwise specified
12 Months Ended
Sep. 30, 2012
Sep. 30, 2011
Sep. 30, 2010
Liyu [Member]
     
Equity Method Investment, Ownership Percentage 30.00%    
Equity Method Investment, Summarized Financial Information, Net Income (Loss) 4,030 2,954 497
Proceeds from Equity Method Investment, Dividends or Distributions 2,100 2,467 1,200
Jinong [Member]
     
Equity Method Investment, Ownership Percentage 17.94% 23.00%  
Equity Method Investment, Summarized Financial Information, Net Income (Loss) 0 (1,345) 1,215
XML 35 R97.htm IDEA: XBRL DOCUMENT v2.4.0.6
COMMITMENTS AND CONTINGENCIES (Details Textual)
In Thousands, unless otherwise specified
12 Months Ended
Sep. 30, 2012
CNY
Sep. 30, 2011
CNY
Sep. 30, 2010
CNY
Sep. 30, 2012
USD ($)
Sep. 30, 2012
Maximum [Member]
CNY
Sep. 30, 2012
Minimum [Member]
CNY
Sep. 30, 2012
Contingent Tax Liabilities [Member]
CNY
Sep. 30, 2011
Contingent Tax Liabilities [Member]
CNY
Operating Leases, Rent Expense 3,773 5,310 3,614          
Income tax payable (note 18; note 21) 39,060 39,060   6,160     39,059 39,059
Contingent Tax Liabilities Range Of Tax Liabilities         64,218 39,059    
XML 36 R37.htm IDEA: XBRL DOCUMENT v2.4.0.6
ACCOUNTS RECEIVABLE (Tables)
12 Months Ended
Sep. 30, 2012
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,
 
    2010     2011     2012  
    RMB     RMB     RMB  
                   
Balance at beginning of year     842       842       2,714  
Additions     -       1,872       4,038  
                         
Balance at end of year     842       2,714       6,752  
XML 37 R52.htm IDEA: XBRL DOCUMENT v2.4.0.6
CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY (Tables)
12 Months Ended
Sep. 30, 2012
Condensed Financial Information Of Parent Company Only Disclosure [Abstract]  
Schedule of Condensed Balance Sheet [Table Text Block]

CONDENSED BALANCE SHEET

 

    September 30  
    2011     2012  
    RMB     RMB  
ASSETS                
Current assets                
Cash and cash equivalents     1,099       1,991  
Other receivables     118       3  
Acquired intangible assets, net     1       -  
Due from inter-companies     136,796       129,807  
Total current assets     138,014       131,801  
Investment in unconsolidated subsidiaries     165,522       170,383  
Total assets     303,536       302,184  

 

LIABILITIES AND EQUITY                
Current liabilities                
Due to related parties     1,509       1,506  
Other payables and accrued expenses     3,931       572  
Income tax payable     39,059       39,059  
Total current liabilities     44,499       41,137  
Total stockholders’ equity     259,037       261,047  
Total liabilities and stockholders’ equity     303,536       302,184  
Schedule of Comprehensive Income (Loss) [Table Text Block]

CONDENSED STATEMENT OF INCOME AND COMPREHENSIVE INCOME

 

    Year ended September 30,  
    2010     2011     2012  
    RMB     RMB     RMB  
                   
Cost of revenues     (208 )     (21 )     -  
Operating expenses                        
Selling and marketing     (295 )     (29 )     -  
General and administrative     (11,058 )     (11,596 )     (7,475 )
Research and development     (146 )     (32 )     -  
Other income, net     -       -       1,595  
(Loss) from operations     (11,707 )     (11,678 )     (5,880 )
Equity in earnings of unconsolidated subsidiaries     60,507       (11,402 )     4,446  
Interest income     253       1       -  
Interest expense     -       -       -  
Profit (loss) before income taxes     49,053       (23,079 )     (1,434 )
Income tax expense     -       -       -  
Net profit (loss)     49,053       (23,079 )     (1,434 )
Schedule of Condensed Cash Flow Statement [Table Text Block]

CONDENSED STATEMENT OF CASH FLOWS

 

    Year ended September 30,  
    2010     2011     2012  
    RMB     RMB     RMB  
                   
Net cash provided by/(used in) operating activities     108,012       (3,745 )     (2,137 )
Net cash provided by/(used in) financing activities     (106,493 )     7,292       3,327  
Net increase/(decrease) in cash and cash equivalents     1,519       3,547       1,190  
Cash and cash equivalents, beginning of year     6,245       4,995       1,099  
Effect of exchange rate changes on cash and cash equivalents     (2,769 )     (7,443 )     (298 )
Cash and cash equivalents, end of year     4,995       1,099       1,991
XML 38 R67.htm IDEA: XBRL DOCUMENT v2.4.0.6
INVENTORIES (Details Textual) (CNY)
In Thousands, unless otherwise specified
Sep. 30, 2012
Sep. 30, 2011
Finished goods 43,459 34,961
Debtor [Member]
   
Finished goods 10,959 10,200
XML 39 R61.htm IDEA: XBRL DOCUMENT v2.4.0.6
RELATED PARTY BALANCES AND TRANSACTIONS (Details 2)
In Thousands, unless otherwise specified
Sep. 30, 2012
USD ($)
Sep. 30, 2012
CNY
Sep. 30, 2011
CNY
Sep. 30, 2012
Non-Controlling Interests Of Denong [Member]
CNY
Sep. 30, 2011
Non-Controlling Interests Of Denong [Member]
CNY
Sep. 30, 2012
Xinjiang Jinbo Seed Limited [Member]
CNY
Sep. 30, 2011
Xinjiang Jinbo Seed Limited [Member]
CNY
Sep. 30, 2012
Directors Controlled Companies [Member]
CNY
Sep. 30, 2011
Directors Controlled Companies [Member]
CNY
Sep. 30, 2012
Ex-Shareholders Of State Harvest [Member]
CNY
Sep. 30, 2011
Ex-Shareholders Of State Harvest [Member]
CNY
Sep. 30, 2012
Liyu [Member]
CNY
Sep. 30, 2011
Liyu [Member]
CNY
Due to related parties (note 3) $ 437 2,769 1,728 0 113 950 0 1,366 1,385 156 140 297 90
XML 40 R47.htm IDEA: XBRL DOCUMENT v2.4.0.6
OTHER PAYABLES AND ACCRUED EXPENSES (Tables)
12 Months Ended
Sep. 30, 2012
Payables and Accruals [Abstract]  
Schedule of Accounts Payable and Accrued Liabilities [Table Text Block]

Other payables and accrued expenses consist of:

 

    September 30,  
    2011     2012  
    RMB     RMB  
             
Payable for purchase of plant and equipment     206       10,158  
Payable for purchase of land use rights     1,050       1,050  
Payable for purchase of construction-in-progress     2,009       1,443  
Professional fee payable     3,789       2,028  
Salaries and bonus payable (note i)     9,949       18,966  
Accrued interest     1,813       1,813  
Accrued compensation expenses     150       36  
Accrued other expenses     1,284       3,917  
Other taxes payable     350       782  
Deposits from growers     2,407       3,425  
Payable for labor union and education expenses     677       595  
Loans from employees of Denong  (note ii)     310       310  
Loans from third parties  (note iii)     3,600       3,600  
Payable to former owners of Kunfeng     2,060       -  
Deferred government subsidies     8,526       6,289  
Others     2,171       2,332  
      40,351       56,744  

 

Note (i): Salaries and bonus payable increased in fiscal year 2012 due to our bonus payment timing change after our corporate-wide restructuring and the introduction of pay-for-performance contracts with employees.

 

Note (ii): RMB310 were borrowed from employees of Denong with interest free, unsecured and have no fixed repayment terms at the years ended September 30, 2011 and 2012, respectively.

 

Note (iii): RMB3,600 was borrowed from third party companies with interest free, unsecured and have no fixed repayment terms at the years ended September 30, 2011 and 2012, respectively.

XML 41 R9.htm IDEA: XBRL DOCUMENT v2.4.0.6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
12 Months Ended
Sep. 30, 2012
Accounting Policies [Abstract]  
Significant Accounting Policies [Text Block]
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

 

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 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, 2012 of RMB6.3410 to US$1.00. Such translation amounts should not be construed as representations that the Renminbi amounts could be readily converted into United States dollar amounts at that rate or any other rate.

 

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, useful lives of plant and equipment and acquired intangible assets, the valuation allowance for deferred income tax assets and the valuation of embedded derivatives of the convertible notes. Actual results could differ from those estimates.

 

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.

 

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.

 

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.

 

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. 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

 

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

 

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. A capital lease is accounted for as if there was an acquisition of an asset and an incurrence of an obligation at the inception of the lease. All other leases are accounted for as operating leases. The Company has no capital leases for any of the periods presented.

 

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, 2011 and 2012 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. The movement for goodwill is as follow:

 

    September 30,  
    2010     2011     2012  
    RMB     RMB     RMB  
                   
Balance at beginning of year     16,665       16,665       11,973  
Additions     -       -       -  
Written off     -       (4,692 )     -  
                         
      16,665       11,973       11,973  

 

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. 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

 

Trademarks, which have indefinite live, 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 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.

 

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.

 

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. In fiscal years 2011 and 2012, the Company received government subsidies of RMB nil and RMB14,000 respectively for plant and equipment projects; RMB nil and RMB10,900 respectively for land use right; and RMB nil and RMB3,640 for R&D and others. Government subsidies recognized as other income in the statement of income for the year ended September 30, 2010, 2011 and 2012, were RMB1,362, RMB nil and RMB3,846, respectively.

 

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, 2011 and 2012, 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

 

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

 

Advertising costs are expensed when incurred and included in selling and marketing expenses. For the years ended September 30, 2010, 2011 and 2012, advertising costs were RMB1,560, RMB1,126 and RMB3,215, respectively.

 

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, 2010, 2011 and 2012, shipping and handling cost included in selling and marketing expenses were RMB12,164, RMB10,503, and RMB11,446 respectively.

 

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 uncollectible accounts for this risk.

 

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 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

 

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.

  

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

 

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

 

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.

 

Recently issued accounting pronouncements

 

In May 2011, the FASB issued ASU No. 2011-04, Fair Value Measurement (Topic 820): Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs. This pronouncement is an authoritative guidance to amend certain measurement and disclosure requirements related to fair value measurements to improve consistency with international reporting standards. This guidance is effective prospectively for public entities for interim and annual reporting periods beginning after December 15, 2011, with early adoption prohibited. The Company is currently evaluating the effect of ASU No. 2011-04, but does not expect its adoption will have a material effect on its consolidated financial statements.

 

In June 2011, the FASB issued ASU 2011-05, Comprehensive Income (Topic 220): Presentation of Comprehensive Income, which is a new guidance on the presentation of comprehensive income that will require a company to present components of net income and other comprehensive income in one continuous statement or in two separate, but consecutive statements. There are no changes to the components that are recognized in net income or other comprehensive income under current GAAP. This guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2011, with early adoption permitted. It is applicable to the Company’s fiscal year beginning January 1, 2012. Currently, the Company evaluated the effect of ASU 2011-05 on its financial statements and does not expect its adoption will have a material effect on its consolidated financial statements.

 

In September 2011, the FASB issued ASU No. 2011-08, Intangibles—Goodwill and Other (Topic 350): Testing Goodwill for Impairment, which specifies that an entity has the option to first assess qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If, after assessing the totality of events or circumstances, an entity determines it is not more likely than not that the fair value of a reporting unit is less than its carrying amount, then performing the two-step impairment test is unnecessary. However, if an entity concludes otherwise, then it is required to perform the first step of the two-step impairment test by calculating the fair value of the reporting unit and comparing the fair value with the carrying amount of the reporting unit, as described in FASB ASC 350-20-35-4. If the carrying amount of a reporting unit exceeds its fair value, then the entity is required to perform the second step of the goodwill impairment test to measure the amount of the impairment loss, if any, as described in FASB ASC 350-20-35-9. Under the amendments in ASU No. 2011-08, an entity has the option to bypass the qualitative assessment for any reporting unit in any period and proceed directly to performing the first step of the two-step goodwill impairment test. An entity may resume performing the qualitative assessment in any subsequent period. ASU No. 2011-08 is effective for annual and interim goodwill impairment tests performed for fiscal years beginning after December 15, 2011. Early adoption is permitted. The adoption of ASU No. 2010-28 is not expected to have any impact on the Company’s financial position, results of operations and cash flows.

 

In December 2011, the FASB issued ASU 2011-11, Balance Sheet (Topic 210): disclosures about Offsetting Assets and Liabilities, which requires entities to disclose both gross and net information about both instruments and transactions eligible for offset in the statement of financial position and instruments and transactions subject to an agreement similar to a master netting agreement. The objective of the disclosure is to facilitate comparison between those entities that prepare their financial statements on the basis of U.S. GAAP and those entities that prepare their financial statements on the basis of International Financial Reporting Standards (“IFRS”). This ASU is effective for fiscal years, and interim periods within those years, beginning on or after January 1, 2013. Retrospective presentation for all comparative periods presented is required. Its adoption of ASU 2011-11 is not expected to have material impact on its consolidated financial statements.

 

ASU 2011-05 was modified by the issuance of ASU 2011-12, Comprehensive Income (Topic 220): Deferral of the Effective Date for Amendments to the Presentation of Reclassifications of Items Out of Accumulated Other Comprehensive Income in Accounting Standards Update No. 2011-05 in December 2011, which indefinitely deferred certain provisions of ASU 2011-05, including the requirement to present reclassification adjustments out of accumulated other comprehensive income by component in both the statement in which net income is presented and the statement in which other comprehensive income is presented. This amendment is effective for both annual and interim financial statements beginning after December 15, 2011. The Company believes that its adoption of ASU 2011-12 will not have any material impact on its consolidated financial statements.

 

In July 2012, the FASB issued ASU 2012-02, Testing Indefinite-Lived Intangible Assets for Impairment, which allows companies to perform a qualitative assessment to determine whether further impairment testing of indefinite-lived intangible assets is necessary, similar in approach to the goodwill impairment test. The new guidance allows an entity the option to first assess qualitatively whether it is more likely than not (that is, a likelihood of more than 50 percent) that an indefinite-lived intangible asset is impaired, thus necessitating that it perform the quantitative impairment test. An entity is not required to calculate the fair value of an indefinite-lived intangible asset and perform the quantitative impairment test unless the entity determines that it is more likely than not that the asset is impaired. The new guidance is effective for annual and interim impairment tests performed for fiscal years beginning after September 15, 2012. Early adoption is permitted for annual and interim impairment tests performed as of a date before July 27, 2012, if the financial statements for the most recent annual or interim period have not yet been issued. The Company will adopt the provisions of this new guidance on October 1, 2012. The Company believes that its adoption of ASU 2012-02 will not have any material impact on its consolidated financial statements.

 

In October 2012, the FASB issued ASU 2012-04, Technical Corrections and Improvements, which makes certain technical corrections and “conforming fair value amendments” to the FASB Accounting Standards Codification. The amendments affect various codification topics and apply to all reporting entities within the scope of those topics. These provisions of the amendment are effective upon issuance, except for amendments that are subject to transition guidance, which will be effective for fiscal periods beginning after December 15, 2012. The Company believes that its adoption of ASU 2012-04 will not have any material impact on its consolidated financial statements.

XML 42 R62.htm IDEA: XBRL DOCUMENT v2.4.0.6
RELATED PARTY BALANCES AND TRANSACTIONS (Details 3)
In Thousands, unless otherwise specified
12 Months Ended
Sep. 30, 2012
Purchases [Member]
CNY
Sep. 30, 2011
Purchases [Member]
CNY
Sep. 30, 2010
Purchases [Member]
CNY
Sep. 30, 2012
Technology Usage Fees [Member]
CNY
Sep. 30, 2011
Technology Usage Fees [Member]
CNY
Sep. 30, 2010
Technology Usage Fees [Member]
CNY
Sep. 30, 2012
Sale Of Plant and Equipment [Member]
CNY
Sep. 30, 2011
Sale Of Plant and Equipment [Member]
CNY
Sep. 30, 2012
Jinong [Member]
Dividend Paid [Member]
CNY
Sep. 30, 2011
Jinong [Member]
Dividend Paid [Member]
CNY
Sep. 30, 2010
Jinong [Member]
Dividend Paid [Member]
CNY
Sep. 30, 2012
Jinong [Member]
Rental Expense Paid For Plant and Equipment [Member]
CNY
Sep. 30, 2011
Jinong [Member]
Rental Expense Paid For Plant and Equipment [Member]
CNY
Sep. 30, 2010
Jinong [Member]
Rental Expense Paid For Plant and Equipment [Member]
CNY
Sep. 30, 2012
Jinong [Member]
Sales [Member]
CNY
Sep. 30, 2011
Jinong [Member]
Sales [Member]
CNY
Sep. 30, 2010
Jinong [Member]
Sales [Member]
CNY
Sep. 30, 2012
Jinong [Member]
Purchases [Member]
CNY
Sep. 30, 2011
Jinong [Member]
Purchases [Member]
CNY
Sep. 30, 2010
Jinong [Member]
Purchases [Member]
CNY
Sep. 30, 2012
Jinong [Member]
Purchase Of Plant and Equipment [Member]
USD ($)
Sep. 30, 2011
Jinong [Member]
Purchase Of Plant and Equipment [Member]
CNY
Sep. 30, 2010
Jinong [Member]
Purchase Of Plant and Equipment [Member]
CNY
Sep. 30, 2012
Biocentury [Member]
Purchases [Member]
CNY
Sep. 30, 2011
Biocentury [Member]
Purchases [Member]
CNY
Sep. 30, 2010
Biocentury [Member]
Purchases [Member]
CNY
Sep. 30, 2012
Biocentury [Member]
Technology Usage Fees [Member]
CNY
Sep. 30, 2011
Biocentury [Member]
Technology Usage Fees [Member]
CNY
Sep. 30, 2010
Biocentury [Member]
Technology Usage Fees [Member]
CNY
Sep. 30, 2012
Liyu [Member]
Dividend Income [Member]
CNY
Sep. 30, 2011
Liyu [Member]
Dividend Income [Member]
CNY
Sep. 30, 2010
Liyu [Member]
Dividend Income [Member]
CNY
Sep. 30, 2012
Liyu [Member]
Purchases [Member]
CNY
Sep. 30, 2011
Liyu [Member]
Purchases [Member]
CNY
Sep. 30, 2010
Liyu [Member]
Purchases [Member]
CNY
Sep. 30, 2012
Liyu [Member]
Technology Usage Fees [Member]
CNY
Sep. 30, 2011
Liyu [Member]
Technology Usage Fees [Member]
CNY
Sep. 30, 2010
Liyu [Member]
Technology Usage Fees [Member]
CNY
Sep. 30, 2012
Xinjiang Jinbo Seed Limited [Member]
Purchases [Member]
CNY
Sep. 30, 2011
Xinjiang Jinbo Seed Limited [Member]
Purchases [Member]
CNY
Sep. 30, 2010
Xinjiang Jinbo Seed Limited [Member]
Purchases [Member]
CNY
Sep. 30, 2012
Henan Agriculture University [Member]
Technology Usage Fees [Member]
CNY
Sep. 30, 2011
Henan Agriculture University [Member]
Technology Usage Fees [Member]
CNY
Sep. 30, 2010
Henan Agriculture University [Member]
Technology Usage Fees [Member]
CNY
Sep. 30, 2012
Non-Controlling Interests Of Denong [Member]
Technology Usage Fees [Member]
CNY
Sep. 30, 2011
Non-Controlling Interests Of Denong [Member]
Technology Usage Fees [Member]
CNY
Sep. 30, 2010
Non-Controlling Interests Of Denong [Member]
Technology Usage Fees [Member]
CNY
Sep. 30, 2012
Holding Company Of Jinong [Member]
Research and Development Expense [Member]
CNY
Sep. 30, 2011
Holding Company Of Jinong [Member]
Research and Development Expense [Member]
CNY
Sep. 30, 2010
Holding Company Of Jinong [Member]
Research and Development Expense [Member]
CNY
Related Party Transaction, Amounts of Transaction 28,772 90 362 9,541 6,555 6,444 0 0 0 10,050 5,025 0 468 935 8,319 2,000 0 25,984 0 6 $ 0 0 150 0 0 116 0 0 306 2,100 2,467 1,200 0 90 240 9,541 5,953 5,471 2,788 0 0 0 0 68 0 602 599 0 5,000 5,000
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M97AT4&%R=%]C938Q-&1B,%\V86$V7S0R8SA?.6,T,E\R,38W,S$U,S5C9C$M #+0T* ` end XML 44 R43.htm IDEA: XBRL DOCUMENT v2.4.0.6
EQUITY INVESTMENTS (Tables)
12 Months Ended
Sep. 30, 2012
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,  
    2011     2012  
    RMB     RMB  
             
Equity method investment     20,503       3,712  
Cost method investment     -       18,721  
      20,503       22,433  
XML 45 R29.htm IDEA: XBRL DOCUMENT v2.4.0.6
FAIR VALUE OF FINANCIAL INSTRUMENTS
12 Months Ended
Sep. 30, 2012
Fair Value Disclosures [Abstract]  
Fair Value Disclosures [Text Block]

22.         FAIR VALUE OF FINANCIAL INSTRUMENTS

 

The carrying amounts of cash and cash equivalents, 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.

XML 46 R28.htm IDEA: XBRL DOCUMENT v2.4.0.6
COMMITMENTS AND CONTINGENCIES
12 Months Ended
Sep. 30, 2012
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies Disclosure [Text Block]

21.         COMMITMENTS AND CONTINGENCIES

 

(a)       Capital commitments

 

As of September 30, 2011 and 2012, capital commitments for the purchase of long-term assets are as follows:

 

    September 30,  
    2011     2012  
    RMB     RMB  
             
Equipment     9       25,615  
Plant and building construction     15,353       8,773  
Technology use right     730       -  
Project of gene modification     5,000       2,000  
                 
      21,092       36,388  

 

(b)      Operating lease

 

The Company acquired 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, 2010, 2011 and 2012 were RMB3,614, RMB5,310 and RMB3,773 respectively.

 

As of September 30, 2012, the Company was obligated under operating leases requiring minimum rental as follows:

 

    RMB  
Year ending September 30,      
       
2013     2,685  
2014     1,504  
2015     1,546  
2016     1,316  
2017     900  
Thereafter     8,409  
         
      16,360  

  

(c)        Contingent tax liabilities

 

The Company assesses the contingent tax liabilities that may arise from the Share Exchange Transaction (note 1) and considers such contingent tax liabilities are more-likely-than-not. As of September 30, 2011 and 2012, contingent tax liabilities of RMB39,059 including late payment penalty and interest was included in the income tax payable in the accompanying consolidated balance sheet. The contingent tax was charged to the equity because the assumption of such liabilities by the Company was part of the recapitalization in connection with the Share Exchange Transaction. The Company does not expect to incur tax liabilities at the higher end of the range which were estimated to be in the range RMB39,059 to RMB64,218, based on the information currently available.

 

In 2009, we reviewed the contingent tax position. On September 23, 2010, the Company filed a revised 2005 tax return to the United States Internal Revenue Service, or IRS, to modify and supplement the previously filed tax return regarding this tax liability. The IRS has not responded to the tax filing as of the date of the filing of this report. While the timeline for the IRS to question on the tax return is generally three years, this matter may take a prolonged period of time to resolve depending on the return time for IRS and the necessity, if any, of future appeals or re-evaluation. No material changes have occurred as of September 30, 2012.

XML 47 R100.htm IDEA: XBRL DOCUMENT v2.4.0.6
CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY (Details 1)
In Thousands, unless otherwise specified
12 Months Ended
Sep. 30, 2012
USD ($)
Sep. 30, 2012
CNY
Sep. 30, 2011
CNY
Sep. 30, 2010
CNY
Sep. 30, 2012
Parent Company [Member]
CNY
Sep. 30, 2011
Parent Company [Member]
CNY
Sep. 30, 2010
Parent Company [Member]
CNY
Cost of revenues $ 61,155 387,783 371,591 353,587 0 (21) (208)
Operating expenses              
Selling and marketing (8,900) (56,437) (56,831) (52,227) 0 (29) (295)
General and administrative (12,236) (77,585) (86,748) (78,708) (7,475) (11,596) (11,058)
Research and development (5,934) (37,629) (44,771) (38,356) 0 (32) (146)
Other income, net         1,595 0 0
(Loss) from operations         (5,880) (11,678) (11,707)
Equity in earnings of unconsolidated subsidiaries         4,446 (11,402) 60,507
Interest income 401 2,547 1,771 1,634 0 1 253
Interest expense (635) (4,029) (1,469) (8,539) 0 0 0
Income (loss) before income taxes (145) (923) 949 75,670 (1,434) (23,079) 49,053
Income tax expense 294 1,862 13,730 9,319 0 0 0
Net profit (loss) $ (439) (2,785) (12,781) 66,351 (1,434) (23,079) 49,053
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ORGANIZATION AND PRINCIPAL ACTIVITIES (Details Textual)
1 Months Ended 12 Months Ended 1 Months Ended 12 Months Ended
Sep. 30, 2006
State Harvest Holdings Limited [Member]
USD ($)
Sep. 30, 2006
State Harvest Holdings Limited [Member]
CNY
Dec. 31, 2004
State Harvest Holdings Limited [Member]
USD ($)
Sep. 30, 2012
State Harvest Holdings Limited [Member]
Sep. 30, 2011
State Harvest Holdings Limited [Member]
Dec. 31, 2004
State Harvest Holdings Limited [Member]
Financial Advisor [Member]
Dec. 31, 2004
State Harvest Holdings Limited [Member]
Criteria One [Member]
USD ($)
Dec. 31, 2004
State Harvest Holdings Limited [Member]
Criteria Two [Member]
USD ($)
Sep. 30, 2011
State Harvest Holdings Limited [Member]
Unit Purchase Options [Member]
Sep. 30, 2011
State Harvest Holdings Limited [Member]
Redeemable Common Stock Purchase Warrants [Member]
Sep. 30, 2011
State Harvest Holdings Limited [Member]
Common Stock [Member]
Sep. 30, 2012
Xinjiang Originbo Seed Company Limited [Member]
CNY
Sep. 30, 2011
Xinjiang Originbo Seed Company Limited [Member]
CNY
Sep. 30, 2012
Changchun Origin Seed Technology Development Limited [Member]
CNY
Sep. 30, 2011
Changchun Origin Seed Technology Development Limited [Member]
CNY
Sep. 30, 2012
Denong Zhengcheng Seed Limited [Member]
CNY
Sep. 30, 2011
Denong Zhengcheng Seed Limited [Member]
CNY
Sep. 30, 2012
Beijing Origin Seed Limited [Member]
Sep. 30, 2011
Beijing Origin Seed Limited [Member]
Sep. 30, 2010
Beijing Origin Seed Limited [Member]
Increase Decrease In Additional Paid In Capial Due To Capital Injection                       100,000,000 40,000,000 30,000,000 5,000,000 120,000,000 80,000,000      
Subsidiary or Equity Method Investee, Cumulative Percentage Ownership after All Transactions       100.00%               51.00% [1],[2]   99.83% [1],[3] 99.00% 98.58% [4] 97.87%      
Share Exchange Transaction Cash Paid     10,000,000                                  
Share Exchange Transaction Shares Issued     10,000,000     200,000                            
Share Exchange Transaction Cash Withheld     250,000                                  
Share Exchange Transaction Additional Purchase Price     15,000,000                                  
Share Exchange Transaction Additional Purchase Price Conditions             If Agritech receives at least US$40,000 in gross proceeds in additional financing as a result (i) of the call of the issued and outstanding public warrants assumed by Agritech at the closing; (ii) Agritech’s successful completion of a follow-on offering; or (iii) a private investment into Agritech by a strategic investor (“Financing Adjustment”), then Agritech will pay an additional US$15,000 to State Harvest Shareholders and their designee If Origin generates net positive cash flow of US$2,000 or more on a consolidated basis (“Earnings Adjustment”), then State Harvest Shareholders and their designee will be entitled to receive 75% of the net positive cash flow up to a maximum of US$7,500 per fiscal year and US$15,000 in the aggregate.                        
Share Exchange Transaction Gross Proceeds On Additional Financing 40,218,000 324,584,000         40,000                          
Share Exchange Transaction Minimum Net Positive Cash Flow               2,000                        
Share Exchange Transaction Additional Purchase Price Percentage               75.00%                        
Share Exchange Transaction Maximum Additional Annual Purchase Price               7,500                        
Share Exchange Transaction Additional Purchase Price Paid $ 15,000,000 120,981,000                                    
Share Exchange Transaction Shares Assumed                 350,000 8,050,000 4,025,000                  
Share Exchange Transaction Additional Purchase Price Shares         1,500,000                              
Share Exchange Transaction Variable Interest Entity Voting Rights Assigned     97.96%                                  
Variable Interest Entity Revenue Percentage                                   96.41% 96.63% 97.96%
Variable Interest Entity Total Assets Percentage                                   96.41% 93.00%  
[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".
[2] During the year, both Beijing Origin and the non-controlling interest made capital injection to Xinjiang Originbo Seed Company Limited, leading to an increase in its paid in capital to RMB100,000 from RMB40,000 in last year. Subsequent to the capital injection, Beijing Origin holds a 51% ownership interest in Xinjiang Origin.
[3] In July 2012, Beijing Origin made capital injection to Changchun Origin, leading to an increase in its paid in capital to RMB30,000 from 5,000 in last year. Subsequent to the capital injection, the share ratio of Beijing Origin increased to 99.83% from 99% last year.
[4] In June 2012, Beijing Origin made capital injection to Denong, leading to an increase in its paid in capital to RMB120,000 from 80,000 last year. Subsequent to the capital injection, the share ratio of Beijing Origin increased to 98.58% from 97.87% last year.
XML 50 R44.htm IDEA: XBRL DOCUMENT v2.4.0.6
ACQUIRED INTANGIBLE ASSETS, NET (Tables)
12 Months Ended
Sep. 30, 2012
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,  
    2011     2012  
    RMB     RMB  
             
Technology rights for licensed seeds     74,723       78,323  
Distribution network     6,739       6,739  
Trademark and certificates     1,687       -  
Others     4,763       4,763  
                 
      87,912       89,825  
Accumulated amortization     (54,366 )     (59,926 )
Impairment provision     (4,314 )     (4,314 )
                 
Acquired intangible assets, net     29,232       25,585
Schedule of Expected 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  
       
2013     4,619  
2014     3,786  
2015     3,108  
2016     2,645  
2017     1,616  
         
Total     15,774  
XML 51 R30.htm IDEA: XBRL DOCUMENT v2.4.0.6
SEGMENT AND GEOGRAPHIC INFORMATION
12 Months Ended
Sep. 30, 2012
Segment Reporting [Abstract]  
Segment Reporting Disclosure [Text Block]

23.         SEGMENT AND GEOGRAPHIC INFORMATION

 

The Company’s main products include hybrid corn and rice seeds, which have been organized as one reporting segment since they have similar nature and production procedures, with similar economic characteristics. The Company’s chief operating decision maker, the Chief Executive Officer, receives and reviews the result of the operation for all products as a whole when making decisions about allocating resources and assessing performance of the Company. In accordance with FASB ASC 280-10, the Company is not required to report the segment information for the products.

 

All of the Company’s sales and all of the Company’s long-lived assets are located in the PRC.

 

The Company had no customers which accounted for 10% or more of the Company’s revenues for any of the years presented in the consolidated financial statements.

XML 52 R31.htm IDEA: XBRL DOCUMENT v2.4.0.6
OPERATING RISK
12 Months Ended
Sep. 30, 2012
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 6.56% to 7.32%, which are fixed at the inception of the borrowings. Other financial assets and liabilities do not have material interest rate risk.

 

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.

XML 53 R8.htm IDEA: XBRL DOCUMENT v2.4.0.6
ORGANIZATION AND PRINCIPAL ACTIVITIES
12 Months Ended
Sep. 30, 2012
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. As of September 30, 2012, details of the Company’s subsidiaries and variable interest entities are as follows:

 

    Date of   Place of   Percentage        
    Incorporation   Incorporation   of     Principal  
Name   or Establishment   or Establishment   Ownership     Activity  
                     
Subsidiaries:                    
State Harvest Holdings Limited (“State Harvest”)   October 6, 2004  

British Virgin Islands

  100 %   Investment holding  
                     
Beijing Origin State Harvest   December 1, 2004   People’s Republic   100 %   Hybrid seed  

Biotechnology Limited (“BioTech”)

      of China (“PRC”)         Technology development  
                     
Shandong Kunfeng Biochemical  Limited (note (iii)) (“Kunfeng”)   June 14, 2006   PRC   100 %   Agricultural chemical producer  
                     
Variable interest entity:                    
Beijing Origin Seed Limited (note (i)) (“Beijing Origin”)   December 26, 1997   PRC   -     Hybrid crop seed development,  
                  production and  
                  distribution  
                     
Subsidiaries held by Beijing Origin:                    

Henan Origin Cotton Technology Development Limited (note (i))

(“Henan Cotton”)

  March 2, 2001   PRC   92.04 %   Hybrid crop seed development, production and distribution  
                     
Changchun Origin Seed Technology Development Limited (note (i); note (iv)) (“Changchun Origin”)   April 29, 2003   PRC   99.83 %   Hybrid crop seed development, production and distribution  
                     

Linze Origin Seed Limited (note (i))

  November 18, 2008   PRC   100 %   Hybrid crop seed development, production and distribution  
                     
Xinjiang Originbo Seed Company Limited (“Xinjiang Origin”) (note (i); note (ii))   July 13, 2011   PRC   51 %   Hybrid crop seed development, production and distribution  
                     
Denong Zhengcheng Seed Limited (note v) (“Denong”)   June 21, 2000   PRC   98.58 %   Hybrid seed development, production and distribution  

 

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”.
Note (ii): During the year, both Beijing Origin and the non-controlling interest made capital injection to Xinjiang Originbo Seed Company Limited, leading to an increase in its paid in capital to RMB100,000 from RMB40,000 in last year. Subsequent to the capital injection, Beijing Origin holds a 51% ownership interest in Xinjiang Origin.

 

Note (iii): As of April 6, 2012, Kunfeng has completed its restructuring procedures and is now a wholly owned subsidiary of BioTech.
Note (iv): In July 2012, Beijing Origin made capital injection to Changchun Origin, leading to an increase in its paid in capital to RMB30,000 from 5,000 in last year. Subsequent to the capital injection, the share ratio of Beijing Origin increased to 99.83% from 99% last year.
Note (v): In June 2012, Beijing Origin made capital injection to Denong, leading to an increase in its paid in capital to RMB120,000 from 80,000 last year. Subsequent to the capital injection, the share ratio of Beijing Origin increased to 98.58% from 97.87% last year.

 

The Share Exchange Transaction

 

On December 20, 2004, Chardan China Acquisition Corp. (“Chardan”) entered into a Stock Purchase Agreement with State Harvest, and all the stockholders of State Harvest for Chardan’s acquisition of State Harvest. For the acquisition, Chardan formed its wholly owned subsidiary, Agritech. On November 8, 2005, the closing date of the acquisition (the “Closing Date”), Chardan merged with and into Agritech for the purpose of re-domestication out of the United States. The re-domestication merger was achieved by a one-for-one exchange of all the outstanding common shares of Chardan for common shares of Agritech and the assumption of all the rights and obligations of Chardan by Origin Agritech, including assumption of the outstanding warrants of Chardan. Immediately after the re-domestication merger, Agritech acquired all the common stock of State Harvest by the issuance of shares and payments of cash consideration to the then shareholders of State Harvest (“State Harvest Shareholders”) or their designee, making it a wholly owned subsidiary (the “Share Exchange Transaction”). State Harvest Shareholders and their designee were paid an aggregate of US$10,000 in cash, using the funds held in the trust account of Chardan, and was issued an aggregate of 10,000,000 shares of Agritech common stock for all the outstanding common stock of State Harvest. The Share Exchange Transaction was accounted for as a reverse acquisition in which State Harvest was deemed to be the accounting acquirer and Agritech the legal acquirer. The payments of the cash consideration are accounted for as a deemed distribution.

 

Of the cash portion of the purchase price, US$250 has been held back for one year by Agritech to secure certain indemnification obligations of State Harvest Shareholders and their designee. Other than the issuance of the above-mentioned 10,000,000 shares, Agritech has issued 200,000 shares to a financial advisor in connection with the Share Exchange Transaction.

 

As a result of the Share Exchange Transaction the historical consolidated financial statements of the Company for the periods prior to the Closing Date are those of State Harvest and its majority owned subsidiaries and its variable interest entity, Beijing Origin and all references to the consolidated financial statements of the Company apply to the historical consolidated financial statements of State Harvest, its majority owned subsidiary and Beijing Origin prior to the Closing Date and the consolidated financial statements of Agritech and its majority owned subsidiaries and Beijing Origin subsequent to the Closing Date. The Company’s equity components are stated in terms of State Harvest before the Closing Date, with an adjustment to reflect the effects of the reverse acquisition on the equity components at the Closing Date.

 

As Chardan was a non-operating public shell company before the Share Exchange Transaction, no goodwill has been recorded in connection with the Share Exchange Transaction and the costs incurred in connection with such transaction have been charged directly to equity as there was sufficient equity to absorb the costs. The net book value of acquired assets and liabilities pursuant to the Share Exchange Transaction is as follows:

 

    RMB  
Net assets acquired:        
Cash     163,517  
Other current assets     6,201  
Due to State Harvest Shareholders and their designee     (2,022 )
Other payables and accrued expenses     (965 )
         
      166,731  
Less:  Transaction costs paid in cash     (14,430 )
Tax effect of the Share Exchange Transaction     (39,060 )
         
      113,241  

 

Additional purchase price payments would be made to State Harvest Shareholders and their designee, up to an aggregate of US$15,000 if either of the following occurs during any fiscal year of Agritech after the Closing Date until December 31, 2008 (or June 30, 2009 if the fiscal year is changed to a July 1−June 30 fiscal year) from funds generated in the additional financing or from operational earnings as described below:

 

(1) If Agritech receives at least US$40,000 in gross proceeds in additional financing as a result (i) of the call of the issued and outstanding public warrants assumed by Agritech at the closing; (ii) Agritech’s successful completion of a follow-on offering; or (iii) a private investment into Agritech by a strategic investor (“Financing Adjustment”), then Agritech will pay an additional US$15,000 to State Harvest Shareholders and their designee; or

 

(2) If Origin generates net positive cash flow of US$2,000 or more on a consolidated basis (“Earnings Adjustment”), then State Harvest Shareholders and their designee will be entitled to receive 75% of the net positive cash flow up to a maximum of US$7,500 per fiscal year and US$15,000 in the aggregate.

 

If both an Earnings Adjustment and a Financing Adjustment occur, the maximum aggregate amount to be paid to State Harvest Shareholders from one or both adjustments is US$15,000.

 

As of September 30, 2006, Agritech received US$40,218 (equivalent to approximately RMB324,584) in gross proceeds as a result of the call of the issued and outstanding warrants assumed by Agritech on the Closing Date. Accordingly, Agritech paid an additional US$15,000 (equivalent to approximately RMB120,981) to State Harvest Shareholders and their designee. The payments of the additional purchase price are accounted for as a deemed distribution.

 

As a part of the Share Exchange Transaction, Agritech assumed 4,025,000 shares of common stock, 8,050,000 Redeemable Common Stock Purchase Warrants (“Warrants”) and 350,000 Unit Purchase Options (“UPO”) issued by Chardan. There was no re-measurement required for these assumed Warrants and UPO because such assumption is part of the recapitalization in connection with the Share Exchange Transaction. All Warrants and UPO have been either exercised or expired as of September 30, 2011.

 

As further additional purchase price, certain State Harvest Shareholders and their designee will be issued an aggregate of 1,500,000 shares of common stock of Agritech for any of the next four years if, on a consolidated basis, Agritech generates after-tax profits (excluding after-tax operating profits from any subsequent acquisitions of securities that have a dilutive effect and before the expenses of this transaction and director and employee option expense) of at least the following amounts:

 

    After-tax profit  
    US$  
Twelve months ended June 30,        
2006     11,000  
2007     16,000  
2008     21,000  
2009     29,000  

 

Although the outcome for the twelve months ended June 30, 2006 has been achieved, the Board decided that the 1,500,000 shares of common stock will not be issued upon a waiver signed by those certain State Harvest Shareholders and their designee but they do not waive or modify in any respect other additional stock purchase price.

 

The management considered the after-tax profits has not been achieved for the twelve months ended June 30, 2007, 2008 and 2009.

 

Reorganization of State Harvest prior to the Share Exchange Transaction

 

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 years.

 

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% pursuant to the Regulation on the Approval and Registration of Foreign Investment Enterprises in Agricultural Seed Industry and The Foreign Investment Industrial Guidance Catalogue. State Harvest, as a non-Chinese corporation, may not directly own more than 49% of any of the PRC Operating Companies. However, Chinese law does not forbid the owner of stock to consign rights associated with the stock, as long as the owner does not transfer title to the stock. To gain control over the PRC Operating Companies, State Harvest entered into a series of stock consignment agreements with shareholders of those companies.

 

State Harvest has been assigned 97.96% voting rights by the shareholders of Beijing Origin through a consignment agreement which includes the following terms: (1) The shares of Beijing Origin cannot be transferred without the approval of State Harvest; (2) State Harvest has the right to appoint all directors and senior management personnel of Beijing Origin and (3) The shareholder rights including voting rights require the transfer of the shares of Beijing Origin to State Harvest or any party designated by State Harvest within three years upon the removal of the PRC legal restriction.

 

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 (former Financial Interpretation 46 (Revised) “Consolidation of Variable Interest Entities” (FIN 46(R))). 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% of the assets of a company must be approved by a majority of the shareholders. Moreover, if consigned stock is transferred to us as provided in the stock consignment agreements when the restrictions under PRC law are lifted, that stock will no longer be subject to the stock consignment agreements, and the termination of the stock consignment agreements would then have no effect on the ownership of that stock. However, if the stock consignment agreements are terminated, then we would lose our rights with respect to the consigned stock and the profits from the issuing corporation. Such a loss would impair the value of the Company and would reduce our ability to generate revenues.

 

The revenues of the Company has been generated from VIE and its subsidiaries for the year ended September 30, 2010, 2011 and 2012 are 97.96%, 96.63% and 96.41%, respectively. VIE and its subsidiaries also account for 93% and 96.41% of the total assets of the Company as at September 30, 2011 and 2012 respectively.

XML 54 R32.htm IDEA: XBRL DOCUMENT v2.4.0.6
CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY
12 Months Ended
Sep. 30, 2012
Condensed Financial Information Of Parent Company Only Disclosure [Abstract]  
Condensed Financial Information of Parent Company Only Disclosure [Text Block]

25.         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 RMB109,651 and RMB109,651 as of September 30, 2011 and 2012, respectively.

 

The following represents condensed unconsolidated financial information of the parent company only:

 

CONDENSED BALANCE SHEET

 

    September 30  
    2011     2012  
    RMB     RMB  
ASSETS                
Current assets                
Cash and cash equivalents     1,099       1,991  
Other receivables     118       3  
Acquired intangible assets, net     1       -  
Due from inter-companies     136,796       129,807  
Total current assets     138,014       131,801  
Investment in unconsolidated subsidiaries     165,522       170,383  
Total assets     303,536       302,184  

 

LIABILITIES AND EQUITY                
Current liabilities                
Due to related parties     1,509       1,506  
Other payables and accrued expenses     3,931       572  
Income tax payable     39,059       39,059  
Total current liabilities     44,499       41,137  
Total stockholders’ equity     259,037       261,047  
Total liabilities and stockholders’ equity     303,536       302,184  

 

CONDENSED STATEMENT OF INCOME AND COMPREHENSIVE INCOME

 

    Year ended September 30,  
    2010     2011     2012  
    RMB     RMB     RMB  
                   
Cost of revenues     (208 )     (21 )     -  
Operating expenses                        
Selling and marketing     (295 )     (29 )     -  
General and administrative     (11,058 )     (11,596 )     (7,475 )
Research and development     (146 )     (32 )     -  
Other income, net     -       -       1,595  
(Loss) from operations     (11,707 )     (11,678 )     (5,880 )
Equity in earnings of unconsolidated subsidiaries     60,507       (11,402 )     4,446  
Interest income     253       1       -  
Interest expense     -       -       -  
Profit (loss) before income taxes     49,053       (23,079 )     (1,434 )
Income tax expense     -       -       -  
Net profit (loss)     49,053       (23,079 )     (1,434 )

 

CONDENSED STATEMENT OF CASH FLOWS

 

    Year ended September 30,  
    2010     2011     2012  
    RMB     RMB     RMB  
                   
Net cash provided by/(used in) operating activities     108,012       (3,745 )     (2,137 )
Net cash provided by/(used in) financing activities     (106,493 )     7,292       3,327  
Net increase/(decrease) in cash and cash equivalents     1,519       3,547       1,190  
Cash and cash equivalents, beginning of year     6,245       4,995       1,099  
Effect of exchange rate changes on cash and cash equivalents     (2,769 )     (7,443 )     (298 )
Cash and cash equivalents, end of year     4,995       1,099       1,991  

 

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.

XML 55 R83.htm IDEA: XBRL DOCUMENT v2.4.0.6
OTHER LONG-TERM LIABILITY (Details Textual)
In Millions, unless otherwise specified
12 Months Ended
Sep. 30, 2012
Plant and Equipment [Member]
USD ($)
Sep. 30, 2012
Plant and Equipment [Member]
CNY
Sep. 30, 2012
Land Use Rights [Member]
USD ($)
Sep. 30, 2012
Land Use Rights [Member]
CNY
Subsidiary Received $ 2.21 14.00 $ 1.72 10.90
XML 56 R40.htm IDEA: XBRL DOCUMENT v2.4.0.6
OTHER CURRENT ASSETS (Tables)
12 Months Ended
Sep. 30, 2012
Other Current Assets [Abstract]  
Schedule of Other Current Assets [Table Text Block]

Other current assets consist of the following:

    September 30,  
    2011     2012  
    RMB     RMB  
             
Advances to staff for business use     8,287       8,368  
Refundable deposit for a cancelled project     241       -  
Receivable from liquidation of Jilin Changrong     45,236       -  
Receivable from liquidation of Changji     1,751       -  
Loan to a customer (note (i))     3,000       -  
Deposits for rental     2,666       3,999  
Deposits for research and development     2,195       -  
Deposits for land use right     -       2,805  
Others     1,679       1,235  
                 
      65,055       16,407  
XML 57 R53.htm IDEA: XBRL DOCUMENT v2.4.0.6
ORGANIZATION AND PRINCIPAL ACTIVITIES (Details)
12 Months Ended
Sep. 30, 2012
Sep. 30, 2011
Beijing Origin Seed Limited [Member]
   
Entity Incorporation, Date Of Incorporation Dec. 26, 1997 [1]  
Entity Incorporation, State Country Name PRC [1]  
Variable Interest Entity, Qualitative or Quantitative Information, Ownership Percentage 0.00% [1]  
Subsidiary or Equity Method Investee, Nature of Operations Hybrid crop seed development, production and distribution [1]  
Henan Origin Cotton Technology Development Limited [Member]
   
Entity Incorporation, Date Of Incorporation Mar. 02, 2001 [1]  
Entity Incorporation, State Country Name PRC [1]  
Subsidiary or Equity Method Investee, Cumulative Percentage Ownership after All Transactions 92.04% [1]  
Subsidiary or Equity Method Investee, Nature of Operations Hybrid crop seed development, production and distribution [1]  
Changchun Origin Seed Technology Development Limited [Member]
   
Entity Incorporation, Date Of Incorporation Apr. 29, 2003 [1],[2]  
Entity Incorporation, State Country Name PRC [1],[2]  
Subsidiary or Equity Method Investee, Cumulative Percentage Ownership after All Transactions 99.83% [1],[2] 99.00%
Subsidiary or Equity Method Investee, Nature of Operations Hybrid crop seed development, production and distribution [1],[2]  
Linze Origin Seed Limited [Member]
   
Entity Incorporation, Date Of Incorporation Nov. 18, 2008 [1]  
Entity Incorporation, State Country Name PRC [1]  
Subsidiary or Equity Method Investee, Cumulative Percentage Ownership after All Transactions 100.00% [1]  
Subsidiary or Equity Method Investee, Nature of Operations Hybrid crop seed development, production and distribution [1]  
Xinjiang Originbo Seed Company Limited [Member]
   
Entity Incorporation, Date Of Incorporation Jul. 13, 2011 [1],[3]  
Entity Incorporation, State Country Name PRC [1],[3]  
Subsidiary or Equity Method Investee, Cumulative Percentage Ownership after All Transactions 51.00% [1],[3]  
Subsidiary or Equity Method Investee, Nature of Operations Hybrid crop seed development, production and distribution [1],[3]  
Denong Zhengcheng Seed Limited [Member]
   
Entity Incorporation, Date Of Incorporation Jun. 21, 2000 [4]  
Entity Incorporation, State Country Name PRC [4]  
Subsidiary or Equity Method Investee, Cumulative Percentage Ownership after All Transactions 98.58% [4] 97.87%
Subsidiary or Equity Method Investee, Nature of Operations Hybrid seed development, production and distribution [4]  
State Harvest Holdings Limited [Member]
   
Entity Incorporation, Date Of Incorporation Oct. 06, 2004  
Entity Incorporation, State Country Name British Virgin Islands  
Subsidiary or Equity Method Investee, Cumulative Percentage Ownership after All Transactions 100.00%  
Subsidiary or Equity Method Investee, Nature of Operations Investment Holding  
Beijing Origin State Harvest Biotechnology Limited [Member]
   
Entity Incorporation, Date Of Incorporation Dec. 01, 2004  
Entity Incorporation, State Country Name People's Republic of China ("PRC")  
Subsidiary or Equity Method Investee, Cumulative Percentage Ownership after All Transactions 100.00%  
Subsidiary or Equity Method Investee, Nature of Operations Hybrid seed Technology development  
Shandong Kunfeng Biochemical Limited [Member]
   
Entity Incorporation, Date Of Incorporation Jun. 14, 2006 [5]  
Entity Incorporation, State Country Name PRC [5]  
Subsidiary or Equity Method Investee, Cumulative Percentage Ownership after All Transactions 100.00% [5]  
Subsidiary or Equity Method Investee, Nature of Operations Agricultural chemical producer [5]  
[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".
[2] In July 2012, Beijing Origin made capital injection to Changchun Origin, leading to an increase in its paid in capital to RMB30,000 from 5,000 in last year. Subsequent to the capital injection, the share ratio of Beijing Origin increased to 99.83% from 99% last year.
[3] During the year, both Beijing Origin and the non-controlling interest made capital injection to Xinjiang Originbo Seed Company Limited, leading to an increase in its paid in capital to RMB100,000 from RMB40,000 in last year. Subsequent to the capital injection, Beijing Origin holds a 51% ownership interest in Xinjiang Origin.
[4] In June 2012, Beijing Origin made capital injection to Denong, leading to an increase in its paid in capital to RMB120,000 from 80,000 last year. Subsequent to the capital injection, the share ratio of Beijing Origin increased to 98.58% from 97.87% last year.
[5] As of April 6, 2012, Kunfeng has completed its restructuring procedures and is now a wholly owned subsidiary of BioTech.
XML 58 R72.htm IDEA: XBRL DOCUMENT v2.4.0.6
PLANT AND EQUIPMENT, NET (Details)
In Thousands, unless otherwise specified
Sep. 30, 2012
USD ($)
Sep. 30, 2012
CNY
Sep. 30, 2011
CNY
Plant and building   155,343 140,301
Machinery and equipment   73,824 52,972
Furniture and office equipment   11,536 11,466
Motor vehicles   10,194 18,338
Leasehold improvements   212 212
Total   251,109 223,289
Accumulated depreciation   (66,000) (61,438)
Construction in progress   131,976 28,243
Plant and equipment, net $ 50,006 317,085 190,094
XML 59 R2.htm IDEA: XBRL DOCUMENT v2.4.0.6
CONSOLIDATED BALANCE SHEETS
In Thousands, unless otherwise specified
Sep. 30, 2012
USD ($)
Sep. 30, 2012
CNY
Sep. 30, 2011
CNY
ASSETS      
Cash and cash equivalents $ 24,095 152,789 129,942
Accounts receivable, less allowance for doubtful amounts of RMB2,714 and RMB6,752 as of September 30, 2011 and 2012, respectively (note 4) 1,114 7,065 6,616
Due from related parties (note 3) 328 2,082 5,183
Advances to suppliers (note 5) 1,230 7,802 12,418
Advances to growers 13,909 88,194 78,623
Inventories (note 6) 44,558 282,544 210,826
Income tax recoverable (note 18) 341 2,159 2,155
Other current assets (note 7) 2,587 16,407 65,055
Total current assets 88,162 559,042 510,818
Land use rights, net (note 8) 5,097 32,318 33,094
Plant and equipment, net (note 9) 50,006 317,085 190,094
Equity investments (note 10) 3,538 22,433 20,503
Goodwill (note 2) 1,888 11,973 11,973
Acquired intangible assets, net (note 11) 4,035 25,585 29,232
Deferred income tax assets (note 18) 277 1,755 3,028
Other assets (note 12) 827 5,246 19,640
Total assets 153,830 975,437 818,382
LIABILITIES AND EQUITY      
Short-term borrowings (note 13) 5,520 35,000 20,000
Current portion of long-term borrowings (note 13) 630 4,000 0
Accounts payable 793 5,031 5,740
Due to growers 679 4,304 7,947
Due to related parties (note 3) 437 2,769 1,728
Advances from customers 68,608 435,044 397,933
Deferred revenues 3,666 23,243 19,812
Income tax payable (note 18; note 21) 6,160 39,060 39,060
Other payables and accrued expenses (note 14) 8,949 56,744 40,351
Total current liabilities 95,442 605,195 532,571
Long-term borrowings (note 13) 5,520 35,000 0
Other long-term liability (note 15) 3,439 21,810 0
Total liabilities 104,401 662,005 532,571
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, 23,382,812 and 23,382,812 shares issued and outstanding as of September 30, 2011 and 2012, respectively) 0 0 0
Additional paid-in capital 62,714 397,671 394,344
Accumulated deficit (15,923) (100,967) (99,533)
Treasury stock at cost (498,851 shares) (note 17) (4,633) (29,377) (29,377)
Accumulated other comprehensive loss (990) (6,280) (6,397)
Total Origin Agritech Limited shareholders' equity 41,168 261,047 259,037
Non-controlling interests 8,261 52,385 26,774
Total equity 49,429 313,432 285,811
Total liabilities and equity $ 153,830 975,437 818,382
XML 60 R45.htm IDEA: XBRL DOCUMENT v2.4.0.6
OTHER ASSETS (Tables)
12 Months Ended
Sep. 30, 2012
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]  
Schedule of Other Assets [Table Text Block]

Other assets consist of the following:

 

    September 30,  
    2011     2012  
    RMB     RMB  
             
Prepaid lease     1,510       2,232  
Deposits for purchase of acquired intangible assets     1,280       -  
Deposits for purchase of plant and equipment     16,568       2,977  
Others     282       37  
                 
      19,640       5,246  
XML 61 R96.htm IDEA: XBRL DOCUMENT v2.4.0.6
COMMITMENTS AND CONTINGENCIES (Details 1) (CNY)
In Thousands, unless otherwise specified
Sep. 30, 2012
2013 2,685
2014 1,504
2015 1,546
2016 1,316
2017 900
Thereafter 8,409
Operating Leases, Future Minimum Payments Due 16,360
XML 62 R6.htm IDEA: XBRL DOCUMENT v2.4.0.6
CONSOLIDATED STATEMENTS OF EQUITY [Parenthetical]
Sep. 30, 2012
Foreign Currency Exchange Rate, Translation 6.3410
XML 63 R94.htm IDEA: XBRL DOCUMENT v2.4.0.6
EMPLOYEE BENEFIT PLAN AND PROFIT APPROPRIATION (Details Textual) (CNY)
In Thousands, unless otherwise specified
12 Months Ended
Sep. 30, 2012
Sep. 30, 2011
Sep. 30, 2010
Defined Contribution Plan, Cost Recognized 13,476 12,752 10,494
Percentage Of Entity Registered Capital 50.00%    
Statutory Surplus Reserve Fund Annual Appropriation Percentage 10.00%    
Statutory Surplus Reserve Fund Annual Appropriation 0 0 2,598
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%    
XML 64 R59.htm IDEA: XBRL DOCUMENT v2.4.0.6
RELATED PARTY BALANCES AND TRANSACTIONS (Details)
12 Months Ended
Sep. 30, 2012
Jinong [Member]
 
Related Party Nature Of Relationship Being an equity investment of the Company (note 10)
Liyu [Member]
 
Related Party Nature Of Relationship Being an equity investment of the Company (note 10)
Henan Agriculture University [Member]
 
Related Party Nature Of Relationship Being non-controlling interests of Beijing Origin
Xinjiang Jinbo Seed Limited [Member]
 
Related Party Nature Of Relationship Being non-controlling interests of Xinjiang Origin
XML 65 R99.htm IDEA: XBRL DOCUMENT v2.4.0.6
CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY (Details)
In Thousands, unless otherwise specified
Sep. 30, 2012
USD ($)
Sep. 30, 2012
CNY
Sep. 30, 2011
USD ($)
Sep. 30, 2011
CNY
Sep. 30, 2010
CNY
Sep. 30, 2009
CNY
Sep. 30, 2012
Parent Company [Member]
CNY
Sep. 30, 2011
Parent Company [Member]
CNY
Sep. 30, 2010
Parent Company [Member]
CNY
Sep. 30, 2009
Parent Company [Member]
CNY
ASSETS                    
Cash and cash equivalents $ 24,095 152,789 $ 20,492 129,942 299,672 121,255 1,991 1,099 4,995 6,245
Other receivables             3 118    
Acquired intangible assets, net 4,035 25,585   29,232     0 1    
Due from inter-companies 328 2,082   5,183     129,807 136,796    
Total current assets 88,162 559,042   510,818     131,801 138,014    
Investment in unconsolidated subsidiaries 3,538 22,433   20,503     170,383 165,522    
Total assets 153,830 975,437   818,382     302,184 303,536    
LIABILITIES AND EQUITY                    
Due to related parties 437 2,769   1,728     1,506 1,509    
Other payables and accrued expenses 8,949 56,744   40,351     572 3,931    
Income tax payable 6,160 39,060   39,060     39,059 39,059    
Total current liabilities 95,442 605,195   532,571     41,137 44,499    
Total stockholders' equity 49,429 313,432   285,811 328,974 277,722 261,047 259,037    
Total liabilities and stockholders' equity $ 153,830 975,437   818,382     302,184 303,536    
XML 66 R35.htm IDEA: XBRL DOCUMENT v2.4.0.6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)
12 Months Ended
Sep. 30, 2012
Accounting Policies [Abstract]  
Schedule of Goodwill [Table Text Block]

The movement for goodwill is as follow:

 

    September 30,  
    2010     2011     2012  
    RMB     RMB     RMB  
                   
Balance at beginning of year     16,665       16,665       11,973  
Additions     -       -       -  
Written off     -       (4,692 )     -  
                         
      16,665       11,973       11,973  
XML 67 R65.htm IDEA: XBRL DOCUMENT v2.4.0.6
INVENTORIES (Details)
In Thousands, unless otherwise specified
Sep. 30, 2012
USD ($)
Sep. 30, 2012
CNY
Sep. 30, 2011
CNY
Sep. 30, 2010
CNY
Work in progress and supplies   266,632 197,118  
Finished goods   43,459 34,961  
Provision   (27,547) (21,253) (22,026)
Inventories $ 44,558 282,544 210,826  
XML 68 R22.htm IDEA: XBRL DOCUMENT v2.4.0.6
OTHER LONG-TERM LIABILITY
12 Months Ended
Sep. 30, 2012
Other Long Term Liabilities Disclosure [Abstract]  
Other Long Term Liabilities Disclosure [Text Block]

15.         OTHER LONG-TERM LIABILITY

 

In the current year, the Company received government subsidies from the local PRC government for plant and equipment projects of RMB14 million (US$2.21 million) and land use right of RMB10.90 million (US$1.72 million). The non-current portion of such government subsidies are recorded as long-term liability for, which will be amortized over the estimated useful lives related to the plant and land use right.

XML 69 R36.htm IDEA: XBRL DOCUMENT v2.4.0.6
RELATED PARTY BALANCES AND TRANSACTIONS (Tables)
12 Months Ended
Sep. 30, 2012
Related Party Transactions [Abstract]  
Schedule Of Related Party Relationships [Table Text Block]
Related party relationships

 

Name of related parties   Relationship
Jinong   Being an equity investment of the Company (note 10)
Liyu   Being an equity investment of the Company (note 10)
Henan Agriculture University   Being the non-controlling interest of Beijing Origin
Xinjiang Jinbo Seed Limited   Being the non-controlling interest of Xinjiang Origin
Schedule Of Amounts Due From Related Parties [Table Text Block]
Due from related parties

 

    September 30,  
    2011     2012  
    RMB     RMB  
             
Jinong     3,505       -  
Henan Agriculture University (note (i))     24       2,082  
Non-controlling interests of Denong     7       -  
Xinjiang Jinbo Seed Limited     1,447       -  
Non-controlling interests of Kunfeng     200       -  
                 
      5,183       2,082  

 

Note (i):   The balance as of September 30, 2012 represented the research funding from Origin to SK Wu Research Institute (through Henan Agriculture University), which is jointly sponsored by the provincial government of Henan Province and Origin.

Schedule Of Amounts Due To Related Parties [Table Text Block]
Due to related parties

 

    September 30,  
    2011     2012  
    RMB     RMB  
             
Non-controlling interests of Denong     113       -  
Xinjiang Jinbo Seed Limited     -       950  
Companies controlled by the Company’s directors     1,385       1,366  
Ex-shareholders of State Harvest     140       156  
Liyu     90       297  
                 
      1,728       2,769  
Schedule of Related Party Transactions [Table Text Block]
Transactions with related parties

 

    (a) Sales to

 

    Year ended
September 30,
 
    2010     2011     2012  
      RMB       RMB       RMB  
                         
Jinong     -       2,000       8,319  

 

    (b) Purchases from

 

    Year ended
September 30,
 
    2010     2011     2012  
    RMB     RMB     RMB  
                   
Biocentury     116       -       -  
Liyu     240       90       -  
Xinjiang Jinbo Seed Limited     -       -       2,788  
Jinong     6       -       25,984  
                         
      362       90       28,772  

 

    (c) Technology usage fees charged by

 

    Year ended
September 30,
 
    2010     2011     2012  
    RMB     RMB     RMB  
                   
Liyu     5,471       5,953       9,541  
Henan Agriculture University     68       -       -  
Non-controlling interests of Denong     599       602       -  
Biocentury     306       -       -  
                         
      6,444       6,555       9,541  

 

The above amounts related to technology usage fees paid to certain related party research centers for the exclusive right to use certain seed technologies.

 

    (d) Purchases of plant and equipment from

 

    Year ended
September 30,
 
    2010     2011     2012  
      RMB       RMB       RMB  
                         
Jinong     150       -       -  

 

 

    (e) Rental expense paid for plant and equipment

 

    Year ended
September 30,
 
    2010     2011     2012  
      RMB       RMB       RMB  
                         
Jinong     935       468       -  

 

    (f) Research & Development expenses

 

    Year ended
September 30,
 
    2010     2011     2012  
      RMB       RMB       RMB  
                         
Holding company of Jinong     5,000       5,000       -  

 

 

    (g) Dividend received from

 

    Year ended
September 30,
 
    2010     2011     2012  
      RMB       RMB       RMB  
                         
Liyu     1,200       2,467       2,100  

 

    (h) Dividend paid to

 

    Year ended
September 30,
 
    2010     2011     2012  
      RMB       RMB       RMB  
                         
Jinong     5,025       10,050       -  
XML 70 R98.htm IDEA: XBRL DOCUMENT v2.4.0.6
OPERATING RISK (Details Textual)
Sep. 30, 2012
Maximum [Member]
 
Debt Instrument, Interest Rate, Stated Percentage 7.32%
Minimum [Member]
 
Debt Instrument, Interest Rate, Stated Percentage 6.56%
XML 71 R24.htm IDEA: XBRL DOCUMENT v2.4.0.6
TREASURY STOCK
12 Months Ended
Sep. 30, 2012
Equity [Abstract]  
Treasury Stock [Text Block]

17.         TREASURY STOCK

 

During the year ended September 30, 2007, the Company repurchased 498,851 common stock of the Company with a total cost of RMB29,377 under the approval of the Board of Directors. The Company recorded the entire purchase price of the treasury stock as a reduction of equity. The Company has made no additional purchases of common stock during the years ended September 30, 2011 and 2012.

XML 72 R68.htm IDEA: XBRL DOCUMENT v2.4.0.6
OTHER CURRENT ASSETS (Details)
In Thousands, unless otherwise specified
Sep. 30, 2012
USD ($)
Sep. 30, 2012
CNY
Sep. 30, 2011
CNY
Advances to staff for business use   8,368 8,287
Refundable deposit for a cancelled project   0 241
Receivable From Liquidation Of Jilin Changrong   0 45,236
Receivable From Liquidation Of Changji   0 1,751
Loan to a customer (note (i))   0 [1] 3,000 [1]
Deposits for rental   3,999 2,666
Deposits for research and development   0 2,195
Deposits for land use right   2,805 0
Others   1,235 1,679
Other current assets (note 7) $ 2,587 16,407 65,055
[1] The balance represented the loan to one of the customers in Denong with the interest rate of 6.1% per annum. Full repayment was received in February 2012 together with the interest.
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CONSOLIDATED STATEMENTS OF CASH FLOWS
In Thousands, unless otherwise specified
12 Months Ended
Sep. 30, 2012
USD ($)
Sep. 30, 2012
CNY
Sep. 30, 2011
CNY
Sep. 30, 2010
CNY
Operating activities:        
Net income (loss) attributable to Origin Agritech Limited $ (226) (1,434) (23,079) 49,053
Adjustments to reconcile net income (loss) to net cash provided by operating activities:        
Depreciation and amortization 3,082 19,541 23,307 21,712
Loss (gain) on disposal of plant and equipment 221 1,401 6,252 (26)
Gain on disposal of a land use right (130) (825) 0 0
Gain on disposal of an equity investment 0 0 0 (8,883)
Loss on disposal of Kunfeng's assets 286 1,814 0 0
Loss on liquidation of a subsidiary 0 0 13,582 0
Impairment on receivables 637 4,038 1,872 0
Inventory write down 4,329 27,453 12,978 14,971
Deferred income tax assets (201) (1,273) (6,739) (5,273)
Non-controlling interests (213) (1,351) 10,298 17,298
Share-based compensation expense 525 3,327 4,638 4,868
Share of net income of equity investments (636) (4,030) (1,616) (9,370)
Changes in operating assets and liabilities:        
Accounts receivable, net (708) (4,486) 1,560 (4,356)
Due from related parties 489 3,101 (76) 1,897
Advances to growers (1,509) (9,571) (37,932) (16,010)
Advances to suppliers 728 4,616 (8,432) 2,940
Inventories (16,122) (102,230) 15,175 45,783
Income tax recoverable (1) (4) 590 (1,020)
Other current assets 7,672 48,648 4 98
Other assets 2,270 14,394 (3,010) 3,193
Accounts payable (112) (709) (3,220) (5,137)
Due to growers (574) (3,643) (34,239) 32,567
Due to related parties 164 1,041 984 (7,773)
Advances from customers 5,853 37,111 49,136 128,834
Deferred revenues 541 3,431 (3,299) 4,831
Income tax payable 0 0 4,113 4,414
Other long-term liabilities 3,439 21,810 (7,003) 9,426
Other payables and accrued expenses 2,838 17,997 8,135 4,020
Net cash provided by operating activities 13,044 82,713 37,457 298,604
Investing activities:        
Dividends received 331 2,100 2,467 1,200
Purchase of plant and equipment (16,435) (104,214) (56,332) (15,839)
Liquidation of a subsidiary 0 0 (67,980) 0
Proceeds from disposal of an equity investment 0 0 0 50,000
Additional capital injection to an equity investment 0 0 (600) 0
Proceeds from disposal of land use right 180 1,140 0 0
Proceeds from disposal of plant and equipment 867 5,495 0 247
Deposits for purchase of acquired technology and land use rights 0 0 (1,280) (39)
Deposits for purchase of plant and equipment (6,919) (43,874) (11,468) (3,044)
Business acquisition, net of cash acquired 0 0 0 (10,540)
Purchase of land use rights (68) (431) 0 0
Purchase of intangible assets (568) (3,599) (19,197) (6,880)
Net cash provided by (used in) investing activities (22,612) (143,383) (154,390) 15,105
Financing activities:        
Restricted bank deposits 0 0 0 500
Proceeds from short-term borrowings 16,559 105,000 20,000 191,900
Repayment of short-term borrowings (14,193) (90,000) (85,900) (186,290)
Proceeds from long-term borrowings 6,150 39,000    
Repurchase of convertible notes 0 0 0 (117,896)
Acquisition of additional equity interest from non-controlling shareholders 0 0 0 (24,200)
Capital injection from a non-controlling shareholder 4,636 29,400 19,600 0
Dividends paid to non-controlling shareholders 0 0 (12,090) (6,908)
Proceeds from exercise of share options 0 0 2,654 6,535
Net cash (used in) provided by financing activities 13,152 83,400 (55,736) (136,359)
Net increase (decrease) in cash and cash equivalents 3,584 22,730 (172,669) 177,350
Cash and cash equivalents, beginning of year 20,492 129,942 299,672 121,255
Effect of exchange rate changes on cash and cash equivalents 19 117 2,939 1,067
Cash and cash equivalents, end of year 24,095 152,789 129,942 299,672
Supplemental disclosures of cash flow information:        
Income taxes paid 93 589 6,990 652
Interest paid 635 4,029 1,469 8,539
Supplemental disclosure of non-cash investing activities:        
Disposal of assets in lieu of payment for liabilities 286 1,814 0 0
Other current assets to be received from liquidation of a subsidiary $ 0 0 45,236 0
XML 75 R3.htm IDEA: XBRL DOCUMENT v2.4.0.6
CONSOLIDATED BALANCE SHEETS [Parenthetical] (CNY)
In Thousands, except Share data, unless otherwise specified
Sep. 30, 2012
Sep. 30, 2011
Allowance for doubtful accounts receivable (in RMB) 6,752 2,714
Preferred stock, shares authorized 1,000,000 1,000,000
Preferred stock, shares issued 0 0
Common stock, shares authorized 60,000,000 60,000,000
Common stock, shares issued 23,382,812 23,382,812
Common stock, shares outstanding 23,382,812 23,382,812
Treasury stock, shares 498,851 498,851
XML 76 R17.htm IDEA: XBRL DOCUMENT v2.4.0.6
EQUITY INVESTMENTS
12 Months Ended
Sep. 30, 2012
Equity Method Investments and Joint Ventures [Abstract]  
Equity Method Investments Disclosure [Text Block]

10.         EQUITY INVESTMENTS

 

Equity investments consist of the following:

 

    September 30,  
    2011     2012  
    RMB     RMB  
             
Equity method investment     20,503       3,712  
Cost method investment     -       18,721  
      20,503       22,433  

 

Liyu

 

The Company owns 30% equity interest in Liyu and accounts for the investment in Liyu under the equity method. For the years ended September 30, 2010, 2011 and 2012, the Company recorded its pro-rata share of earnings in Liyu of RMB497, RMB2,954 and RMB4,030 respectively. The Company also received dividends of RMB1,200, RMB2,467 and RMB2,100 respectively from Liyu for each of the years ended September 30, 2010, 2011 and 2012. The dividend received was accounted for as a reduction in equity investments.

 

Jinong

 

The Company owns 23% equity interest in Jinong and accounts for the investment under the equity method before fiscal year 2011. While one shareholder of Jinong increased its investment and the share owned by the Company reduced to 17.94% in this year, the Company has no significant influence in Jinong anymore and the accounting for the investment changed to cost method. For the years ended September 30, 2010, 2011, the Company recorded its pro-rata share of earnings (losses) in Jinong of RMB1,215 and RMB(1,345), respectively. We assessed the impairment of the investment as of September 30, 2012. As the share of net equity the Company owned is greater than the investment cost, no impairment noted.

XML 77 R93.htm IDEA: XBRL DOCUMENT v2.4.0.6
INCOME (LOSS) PER SHARE (Details)
In Thousands, except Share data, unless otherwise specified
12 Months Ended
Sep. 30, 2012
USD ($)
Sep. 30, 2012
CNY
Sep. 30, 2011
CNY
Sep. 30, 2010
CNY
Net income (loss) (numerator), basic and diluted $ (226) (1,434) (23,079) 49,053
Shares (denominator):        
Common stock outstanding 23,382,812 23,382,812 23,382,812 23,292,412
Weighted average common stock outstanding used in computing basic income per share 23,382,812 23,382,812 23,351,615 23,189,464
Add: Share options 0 0 0 147,801
Weighted average common stock outstanding used in computing diluted income per share 23,382,812 23,382,812 23,351,615 23,337,265
Net income (loss) per share-basic $ (0.01) (0.06) (1.00) 2.12
Net income (loss) per share-diluted $ (0.01) (0.06) (1.00) 2.10
XML 78 R91.htm IDEA: XBRL DOCUMENT v2.4.0.6
INCOME TAXES (Details 3)
12 Months Ended
Sep. 30, 2012
Sep. 30, 2011
Sep. 30, 2010
Sep. 30, 2008
Statutory rate 25.00% 25.00% 25.00% 33.00%
Effect of preferential tax treatment 218.00% (550.00%) (10.00%)  
Effect of different tax jurisdiction (156.00%) 307.00% 4.00%  
Permanent book-tax difference 1757.00% 403.00% 0.00%  
Effect of changes of applicable tax rate 0.00% 0.00% 0.00%  
Change in valuation allowance (2078.00%) 998.00% (5.00%)  
Under (over) provision in prior year 32.00% 256.00% (2.00%)  
Effective income tax rate (202.00%) 1439.00% 12.00%  
XML 79 R1.htm IDEA: XBRL DOCUMENT v2.4.0.6
DOCUMENT AND ENTITY INFORMATION (CNY)
In Thousands, except Share data, unless otherwise specified
12 Months Ended
Sep. 30, 2012
Entity Registrant Name Origin Agritech LTD
Entity Central Index Key 0001321851
Current Fiscal Year End Date --09-30
Entity Filer Category Accelerated Filer
Trading Symbol seed
Entity Common Stock, Shares Outstanding 23,382,812
Document Type 20-F
Amendment Flag false
Document Period End Date Sep. 30, 2012
Document Fiscal Period Focus FY
Document Fiscal Year Focus 2012
Entity Well-Known Seasoned Issuer No
Entity Voluntary Filers No
Entity Current Reporting Status Yes
Entity Public Float 0
XML 80 R18.htm IDEA: XBRL DOCUMENT v2.4.0.6
ACQUIRED INTANGIBLE ASSETS, NET
12 Months Ended
Sep. 30, 2012
Goodwill and Intangible Assets Disclosure [Abstract]  
Intangible Assets Disclosure [Text Block]

11.         ACQUIRED INTANGIBLE ASSETS, NET

 

Acquired intangible assets, net consist of the following:

 

    September 30,  
    2011     2012  
    RMB     RMB  
             
Technology rights for licensed seeds     74,723       78,323  
Distribution network     6,739       6,739  
Trademark and certificates     1,687       -  
Others     4,763       4,763  
                 
      87,912       89,825  
Accumulated amortization     (54,366 )     (59,926 )
Impairment provision     (4,314 )     (4,314 )
                 
Acquired intangible assets, net     29,232       25,585  

 

Amortization expenses for the years ended September 30, 2010, 2011 and 2012 were RMB9,692, RMB8,870 and RMB5,846, respectively.

  

No impairment provision has been charged for the years ended September 30, 2010, 2011 and 2012.

 

Amortization expense on these intangible assets for each of the next five years is as follows:

 

 

Year ending September 30,

  RMB  
       
2013     4,619  
2014     3,786  
2015     3,108  
2016     2,645  
2017     1,616  
         
Total     15,774  

 

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 amortized over an average usage period of 5 years and charged to general and administrative expenses.

XML 81 R80.htm IDEA: XBRL DOCUMENT v2.4.0.6
BORROWINGS (Details)
In Thousands, unless otherwise specified
Sep. 30, 2012
USD ($)
Sep. 30, 2012
CNY
Sep. 30, 2011
CNY
Short-term borrowings $ 5,520 35,000 20,000
Current portion of long-term borrowings 630 4,000 0
Long-term borrowings $ 5,520 35,000 0
XML 82 R90.htm IDEA: XBRL DOCUMENT v2.4.0.6
INCOME TAXES (Details 2) (CNY)
In Thousands, unless otherwise specified
Sep. 30, 2012
Sep. 30, 2011
Deferred Tax Assets, Tax Credit Carryforwards 170,328 94,454
2012
   
Deferred Tax Assets, Tax Credit Carryforwards 11,694 11,694
2013
   
Deferred Tax Assets, Tax Credit Carryforwards 15,747 25,586
2014
   
Deferred Tax Assets, Tax Credit Carryforwards 0 188
2015
   
Deferred Tax Assets, Tax Credit Carryforwards 10,997 11,042
2016
   
Deferred Tax Assets, Tax Credit Carryforwards 54,491 45,944
2017
   
Deferred Tax Assets, Tax Credit Carryforwards 77,399 0
XML 83 R4.htm IDEA: XBRL DOCUMENT v2.4.0.6
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
In Thousands, except Share data, unless otherwise specified
12 Months Ended
Sep. 30, 2012
USD ($)
Sep. 30, 2012
CNY
Sep. 30, 2011
CNY
Sep. 30, 2010
CNY
Revenues $ 87,070 552,111 567,434 584,860
Cost of revenues (61,155) (387,783) (371,591) (353,587)
Gross profit 25,915 164,328 195,843 231,273
Operating expenses        
Selling and marketing (8,900) (56,437) (56,831) (52,227)
General and administrative (12,236) (77,585) (86,748) (78,708)
Research and development (5,934) (37,629) (44,771) (38,356)
Other income, net 608 3,852 5,120 2,340
Total operating expenses, net (26,462) (167,799) (183,230) (166,951)
Income(loss) from operations (547) (3,471) 12,613 64,322
Interest expense (635) (4,029) (1,469) (8,539)
Share of net income of equity investments 636 4,030 1,616 9,370
Gain on disposal of an equity investment 0 0 0 8,883
Loss on liquidation of a subsidiary 0 0 (13,582) 0
Interest income 401 2,547 1,771 1,634
Income (loss) before income taxes (145) (923) 949 75,670
Income tax expense (note 18)        
Current (93) (589) (6,991) (4,046)
Deferred (201) (1,273) (6,739) (5,273)
Income tax expense (294) (1,862) (13,730) (9,319)
Net income (loss) (439) (2,785) (12,781) 66,351
Less: Net income (loss) attributable to non-controlling interests (213) (1,351) 10,298 17,298
Net income (loss) attributable to Origin Agritech Limited (226) (1,434) (23,079) 49,053
Other comprehensive income (loss)        
Net income (loss) (439) (2,785) (12,781) 66,351
Foreign currency translation difference 19 117 2,939 1,067
Comprehensive income (loss) (420) (2,668) (9,842) 67,418
Less: Comprehensive income (loss) attributable to non-controlling interests (213) (1,351) 10,298 17,298
Comprehensive income (loss) attributable to Origin Agritech Limited $ (207) (1,317) (20,140) 50,120
Net income (loss) attributable to Origin Agritech Limited per share basic (note 19) (in dollars per share) $ (0.01) (0.06) (1.00) 2.12
Net income (loss) attributable to Origin Agritech Limited per share diluted (note 19) (in dollars per share) $ (0.01) (0.06) (1.00) 2.10
Shares used in calculating basic net income (loss) per share (in shares) 23,382,812 23,382,812 23,351,615 23,189,464
Shares used in calculating diluted net income (loss) per share (in shares) 23,382,812 23,382,812 23,351,615 23,337,265
XML 84 R12.htm IDEA: XBRL DOCUMENT v2.4.0.6
ADVANCES TO SUPPLIERS
12 Months Ended
Sep. 30, 2012
Advances To Suppliers [Abstract]  
Advances To Suppliers Disclosure [Text Block]
5. ADVANCES TO SUPPLIERS

 

Advances to suppliers consist of the following:

    September 30,  
    2011     2012  
    RMB     RMB  
             
Purchases of materials     7,460       2,357  
Prepayments for advertisement     280       620  
Prepayments for transportation fee     -       928  
Prepayments for operating lease     218       186  
Prepayments for testing fee     284       134  
Utility deposit     935       977  
Deposits for research and development fee     1,301       1,050  
Deposits for housing fund center     323       -  
Prepayment for seed usage right     -       574  
Others     1,617       976  
                 
      12,418       7,802  

 

Advances to suppliers mainly represent deposits paid but related materials and services have not been provided to the Company.

XML 85 R11.htm IDEA: XBRL DOCUMENT v2.4.0.6
ACCOUNTS RECEIVABLE
12 Months Ended
Sep. 30, 2012
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.

 

Allowance for doubtful account is as follows:

    Year ended
September 30,
 
    2010     2011     2012  
    RMB     RMB     RMB  
                   
Balance at beginning of year     842       842       2,714  
Additions     -       1,872       4,038  
                         
Balance at end of year     842       2,714       6,752  

 

The additions in allowance for doubtful account were recorded in general and administrative expenses. The increase was mainly caused by that full allowance were provided for the accounts receivable balance in Kunfeng.

XML 86 R23.htm IDEA: XBRL DOCUMENT v2.4.0.6
SHARE OPTION PLANS
12 Months Ended
Sep. 30, 2012
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 ordinary shares under the 2005 Plan. On April 22, 2010, the Company adopted the 2009 Performance Equity Plan and is authorized to issue equity based awards for up to 1,500,000 ordinary shares to the Company’s. The main purpose of the two plans is to provide an existing structure and renewable benefit plan for senior management and directors, employees and consultants.

 

Under the terms of the 2005 Plan, on November 8, 2005, options to purchase 974,000 ordinary shares at the price of US$8.75 per share were granted (“Tranche 1”), which all expired on November 8, 2010; on October 22, 2007 the Company granted its employees options to purchase 20,000 ordinary shares at the price of US$9.27 which all expired on October 22, 2012 (“Tranche 2”); on March 28, 2008 the Company granted its employees options to purchase 381,000 ordinary shares at the price of US$5.30 (“Tranche 3”); on June 16, 2008 the Company granted its employees options to purchase 10,000 ordinary shares at the price of US$6.64 (“Tranche 4”); and on January 4, 2010 the Company granted its employees options to purchase 125,000 ordinary shares at the price of US$12.23 (“Tranche 5”). Under the terms of the 2009 Plan, on January 3, 2011, the company granted its employees options to purchase 120,000 ordinary shares at the price of US$10.84 (“Tranche 6”); and on January 3, 2012, the company granted its employees options to purchase 365,000 ordinary shares at the price of US$2.55 (“Tranche 7”). All the options have an expiration date that is 5 years from the date of grant and vest immediately or over a period of 1 to 5 years. As of September 30, 2012, there were 259,500 shares under the 2005 Plan allocated to awards and there were 480,000 shares under the 2009 Plan allocated to awards.

 

On September 14, 2009, the compensation committee of the Board of Directors approved re-pricing of outstanding option grants for reduced awards from US$8.75 per share to US$4.00 per share or the substitution of restricted stock for outstanding grants under Tranche 1 that no longer offer the kind of incentive opportunity originally sought for valued employees. The revised terms of the stock options were accounted for as a modification in accordance with ASC 718-10.  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, both estimated at the date of the modification and determined that none of the modifications required the recognition of additional share-based payment expense. The weighted average fair value at the modification date of US$2.66 was estimated using the Black-Scholes Option Pricing Model. As of September 14, 2009, there are modified awards outstanding covering a total of 214,120 ordinary shares which included the restricted stock awards for 89,300 shares. All of these are now expired.

 

After the adjusted awards, all the option awards have an exercise price of $4.00 to $12.23 and expire 5 years from the date of grant and vest immediately or over a period of 1 to 5 years.

 

During the fiscal years ended September 30, 2011 and 2012, 90,400 and nil options were exercised.

 

For the options outstanding at September 30, 2011 and 2012, the weighted average remaining contractual lives are 2.91 and 3.07 years, respectively.

 

A summary of the share option activity under the 2005 and 2009 Plans is as follows:

 

    Tranche 1     Tranche 2     Tranche 3     Tranche 4     Tranche 5     Tranche 6     Tranche 7  
Grant date   November 
8, 2005
    October 22,
2007
    March 28,
2008
    June 16, 
2008
    January 4,
2010
    January 3,
2011
    January 3,
2012
 
                                           
Options outstanding as of October 1, 2010     64,400       5,000       156,167       10,000       125,000       -       -  
Number of options granted     -       -       -       -       -       120,000       -  
Options exercised     (64,400 )     -       (26,000 )     -       -       -       -  
Options cancelled/ forfeited/ expired     -       -       -       -       (5,000 )     -       -  
                                                         
Options outstanding as of September 30, 2011     -       5,000       130,167       10,000       120,000       120,000       -  
Number of options granted     -       -       -       -       -       -       365,000  
Options cancelled/ forfeited/ expired     -       -       (5,667 )     -       -       (5,000 )     -  
Outstanding as of September 30, 2012     -       5,000       124,500       10,000       120,000       115,000       365,000  
                                                         
Options vested and exercisable                                                        
At September 30, 2011     -       -       130,167       10,000       120,000       -       -  
                                                         
At September 30, 2012     -       5,000       124,500       10,000       120,000       115,000       365,000  
                                                         
Weighted average fair value at the grant date (USD)     2.69       4.55       2.69       3.42       7.20       6.08       1.45  

 

The fair value of each option granted is estimated on the date of grant using the Black-Scholes Option Pricing Model:

 

    Tranche
1#
    Tranche
2
    Tranche
3*
    Tranche
4
    Tranche
5
    Tranche
6
    Tranche
7
 
                                           
Exercise price (USD)     8.75       9.27       5.30       6.64       12.23       10.84       2.55  
Average risk-free interest rate     4.47 %     4.08 %     2.51 %     3.73 %     1.66 %     1.03 %     0.40 %
Expected option life (year)     3.5       3.8       2.7       2.9       3       3       3  
Volatility rate     30.79 %     60.86 %     78.17 %     77.27 %     92.81 %     88.03 %     90.30 %
Dividend yield     -       -       -       -       -       -       -  

 

# Tranche 1 was modified on September 14, 2009. The exercise price modified to USD 4.00 and the fair value was USD 2.66 at the modified date.

 

* Tranche 3 consists of different vesting structures. The expected option life and fair value presented above are weighted average numbers.

 

The aggregate intrinsic value as of September 30, 2011 and 2012 is USD nil and USD nil respectively.

 

The Company recorded share-based compensation expense of RMB4,868, RMB4,638 and RMB3,327 for the years ended September 30, 2010, 2011 and 2012 respectively. As of September 30, 2011 and 2012, there were RMB942 and RMB769 of total unrecognized compensation expense related to non-vested share-based compensation arrangement under the Plan. The unrecognized compensation expense is expected to be recognized over a weighted-average period of 0.26 year.

XML 87 R19.htm IDEA: XBRL DOCUMENT v2.4.0.6
OTHER ASSETS
12 Months Ended
Sep. 30, 2012
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]  
Other Assets [Text Block]

12.         OTHER ASSETS

 

Other assets consist of the following:

 

    September 30,  
    2011     2012  
    RMB     RMB  
             
Prepaid lease     1,510       2,232  
Deposits for purchase of acquired intangible assets     1,280       -  
Deposits for purchase of plant and equipment     16,568       2,977  
Others     282       37  
                 
      19,640       5,246
XML 88 R84.htm IDEA: XBRL DOCUMENT v2.4.0.6
SHARE OPTION PLANS (Details) (USD $)
12 Months Ended
Sep. 30, 2012
Sep. 30, 2011
Tranche 1 [Member]
   
Grant date Nov. 08, 2005 Nov. 08, 2005
Options outstanding 0 64,400
Number of options granted 0 0
Options exercised 0 (64,400)
Options cancelled/ forfeited/ expired 0 0
Options outstanding 0 0
Options vested and exercisable 0 0
Weighted average fair value at the grant date (USD) $ 2.69  
Tranche 2 [Member]
   
Grant date Oct. 22, 2007 Oct. 22, 2007
Options outstanding 5,000 5,000
Number of options granted 0 0
Options exercised 0 0
Options cancelled/ forfeited/ expired 0 0
Options outstanding 5,000 5,000
Options vested and exercisable 5,000 0
Weighted average fair value at the grant date (USD) $ 4.55  
Tranche 3 [Member]
   
Grant date Mar. 28, 2008 Mar. 28, 2008
Options outstanding 130,167 156,167
Number of options granted 0 0
Options exercised 0 26,000
Options cancelled/ forfeited/ expired (5,667) 0
Options outstanding 0 130,167
Options vested and exercisable 124,500 130,167
Weighted average fair value at the grant date (USD) $ 2.69  
Tranche 4 [Member]
   
Grant date Jun. 16, 2008 Jun. 16, 2008
Options outstanding 10,000 10,000
Number of options granted 0 0
Options exercised 0 0
Options cancelled/ forfeited/ expired 0 0
Options outstanding 10,000 10,000
Options vested and exercisable 10,000 10,000
Weighted average fair value at the grant date (USD) $ 3.42  
Tranche 5 [Member]
   
Grant date Jan. 04, 2010 Jan. 04, 2010
Options outstanding 120,000 125,000
Number of options granted 0 0
Options exercised 0 0
Options cancelled/ forfeited/ expired 0 (5,000)
Options outstanding 120,000 120,000
Options vested and exercisable 120,000 120,000
Weighted average fair value at the grant date (USD) $ 7.20  
Tranche 6 [Member]
   
Grant date Jan. 03, 2011 Jan. 03, 2011
Options outstanding 120,000 0
Number of options granted 0 120,000
Options exercised 0 0
Options cancelled/ forfeited/ expired (5,000) 0
Options outstanding 115,000 120,000
Options vested and exercisable 115,000 0
Weighted average fair value at the grant date (USD) $ 6.08  
Tranche 7 [Member]
   
Grant date Jan. 03, 2012 Jan. 03, 2012
Options outstanding 0 0
Number of options granted 0 0
Options exercised 0 0
Options cancelled/ forfeited/ expired 0 0
Options outstanding 365,000 0
Options vested and exercisable 365,000 0
Weighted average fair value at the grant date (USD) $ 1.45  
XML 89 R15.htm IDEA: XBRL DOCUMENT v2.4.0.6
LAND USE RIGHTS, NET
12 Months Ended
Sep. 30, 2012
Land Use Rights [Abstract]  
Land Use Rights Disclosure [Text Block]
8. LAND USE RIGHTS, NET

 

Land use rights, net consist of the following:

    September 30,  
    2011     2012  
    RMB     RMB  
             
Land use rights     36,569       36,399  
Accumulated amortization     (3,475 )     (4,081 )
                 
Land use rights, net     33,094       32,318  

 

 

Land use rights with net values of RMB453 and RMB2,546 have been pledged as collateral for bank loans as of September 30, 2011 and 2012.

 

Amortization expenses for the years ended September 30, 2010, 2011 and 2012 were RMB489, RMB502 and RMB892, respectively.

XML 90 R60.htm IDEA: XBRL DOCUMENT v2.4.0.6
RELATED PARTY BALANCES AND TRANSACTIONS (Details 1)
In Thousands, unless otherwise specified
Sep. 30, 2012
USD ($)
Sep. 30, 2012
CNY
Sep. 30, 2011
CNY
Sep. 30, 2012
Jinong [Member]
CNY
Sep. 30, 2011
Jinong [Member]
CNY
Sep. 30, 2012
Henan Agriculture University [Member]
CNY
Sep. 30, 2011
Henan Agriculture University [Member]
CNY
Sep. 30, 2012
Non-Controlling Interests Of Denong [Member]
CNY
Sep. 30, 2011
Non-Controlling Interests Of Denong [Member]
CNY
Sep. 30, 2012
Non-Controlling Interests Of Kunfeng [Member]
CNY
Sep. 30, 2011
Non-Controlling Interests Of Kunfeng [Member]
CNY
Sep. 30, 2012
Xinjiang Jinbo Seed Limited [Member]
CNY
Sep. 30, 2011
Xinjiang Jinbo Seed Limited [Member]
CNY
Due from related parties (note 3) $ 328 2,082 5,183 0 3,505 2,082 [1] 24 [1] 0 7 0 200 0 1,447
[1] The balance as of September 30, 2012 represented the research funding from Origin to SK Wu Research Institute (through Henan Agriculture University), which is jointly sponsored by the provincial government of Henan Province and Origin.
XML 91 R13.htm IDEA: XBRL DOCUMENT v2.4.0.6
INVENTORIES
12 Months Ended
Sep. 30, 2012
Inventory Disclosure [Abstract]  
Inventory Disclosure [Text Block]
6. INVENTORIES

 

Inventories consist of the following:

    September 30,  
    2011     2012  
    RMB     RMB  
             
Work in progress and supplies     197,118       266,632  
Finished goods     34,961       43,459  
Provision     (21,253 )     (27,547 )
                 
      210,826       282,544  

 

As of September 30, 2011 and 2012, goods already delivered to customers but still recorded in finished goods, amounted to RMB10,200 and RMB10,959, respectively. As the Company does not recognize revenues until the selling prices of respective goods have been finalized with the customers, goods delivered to customers as mentioned above will only be transferred to cost of revenues when related revenues is recognized.

 

Provision for inventories is as below:

 

    Years ended
September 30,
 
    2011     2012  
    RMB     RMB  
             
Balance at beginning of year     22,026       21,253  
Additions     12,978       27,453  
Write-off     (13,751 )     (21,159 )
                 
Balance at end of year     21,253       27,547

 

XML 92 R14.htm IDEA: XBRL DOCUMENT v2.4.0.6
OTHER CURRENT ASSETS
12 Months Ended
Sep. 30, 2012
Other Current Assets [Abstract]  
Other Current Assets Disclosure [Text Block]
7. OTHER CURRENT ASSETS

 

Other current assets consist of the following:

    September 30,  
    2011     2012  
    RMB     RMB  
             
Advances to staff for business use     8,287       8,368  
Refundable deposit for a cancelled project     241       -  
Receivable from liquidation of Jilin Changrong     45,236       -  
Receivable from liquidation of Changji     1,751       -  
Loan to a customer (note (i))     3,000       -  
Deposits for rental     2,666       3,999  
Deposits for research and development     2,195       -  
Deposits for land use right     -       2,805  
Others     1,679       1,235  
                 
      65,055       16,407  

 

Note (i): The balance represented the loan to one of the customers in Denong with the interest rate of 6.1% per annum. Full repayment was received in February 2012 together with the interest.

XML 93 R16.htm IDEA: XBRL DOCUMENT v2.4.0.6
PLANT AND EQUIPMENT, NET
12 Months Ended
Sep. 30, 2012
Property, Plant and Equipment [Abstract]  
Property, Plant and Equipment Disclosure [Text Block]
9. PLANT AND EQUIPMENT, NET

 

Plant and equipment, net consist of the following:

    September 30,  
    2011     2012  
    RMB     RMB  
             
Plant and building     140,301       155,343  
Machinery and equipment     52,972       73,824  
Furniture and office equipment     11,466       11,536  
Motor vehicles     18,338       10,194  
Leasehold improvements     212       212  
                 
Total     223,289       251,109  
Accumulated depreciation     (61,438 )     (66,000 )
Construction in progress     28,243       131,976  
                 
Plant and equipment, net     190,094       317,085  

 

Included in plant and building with net values of RMB6,882 and RMB35,570 have been pledged for bank loans as of September 30, 2011 and 2012.

 

The depreciation expenses for the years ended September 30, 2010, 2011 and 2012 were RMB11,531, RMB16,235, and RMB12,803, respectively.

 

Construction in progress refers to mainly the new office buildings, production lines and other production facilities under construction.

XML 94 R64.htm IDEA: XBRL DOCUMENT v2.4.0.6
ADVANCES TO SUPPLIERS (Details)
In Thousands, unless otherwise specified
Sep. 30, 2012
USD ($)
Sep. 30, 2012
CNY
Sep. 30, 2011
CNY
Purchases of materials   2,357 7,460
Prepayments for advertisement   620 280
Prepayments for transportation fee   928 0
Prepayments for operating lease   186 218
Prepayments for testing fee   134 284
Utility deposit   977 935
Deposits for research and development fee   1,050 1,301
Deposits for housing fund center   0 323
Prepayment for seed usage right   574 0
Others   976 1,617
Advances to suppliers $ 1,230 7,802 12,418
XML 95 R85.htm IDEA: XBRL DOCUMENT v2.4.0.6
SHARE OPTION PLANS (Details 1) (USD $)
12 Months Ended
Sep. 30, 2012
Tranche 1 [Member]
 
Exercise price (USD) $ 8.75 [1]
Average risk-free interest rate 4.47% [1]
Expected option life (year) 3 years 6 months [1]
Volatility rate 30.79% [1]
Dividend yield 0.00% [1]
Tranche 2 [Member]
 
Exercise price (USD) $ 9.27
Average risk-free interest rate 4.08%
Expected option life (year) 3 years 9 months 18 days
Volatility rate 60.86%
Dividend yield 0.00%
Tranche 3 [Member]
 
Exercise price (USD) $ 5.30 [2]
Average risk-free interest rate 2.51% [2]
Expected option life (year) 2 years 8 months 12 days [2]
Volatility rate 78.17% [2]
Dividend yield 0.00% [2]
Tranche 4 [Member]
 
Exercise price (USD) $ 6.64
Average risk-free interest rate 3.73%
Expected option life (year) 2 years 10 months 24 days
Volatility rate 77.27%
Dividend yield 0.00%
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%
[1] Tranche 1 was modified on September 14, 2009. The exercise price modified to USD 4.00 and the fair value was USD 2.66 at the modified date.
[2] Tranche 3 consists of different vesting structures. The expected option life and fair value presented above are weighted average numbers.
XML 96 R66.htm IDEA: XBRL DOCUMENT v2.4.0.6
INVENTORIES (Details 1) (CNY)
In Thousands, unless otherwise specified
12 Months Ended
Sep. 30, 2012
Sep. 30, 2011
Balance at beginning of year 21,253 22,026
Additions 27,453 12,978
Write-off (21,159) (13,751)
Balance at end of year 27,547 21,253
XML 97 R102.htm IDEA: XBRL DOCUMENT v2.4.0.6
CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY (Details Textual) (CNY)
In Thousands, unless otherwise specified
Sep. 30, 2012
Sep. 30, 2011
Restriction In Transfer Of Some Net Assets To Parent Company 109,651 109,651
XML 98 R63.htm IDEA: XBRL DOCUMENT v2.4.0.6
ACCOUNTS RECEIVABLE (Details) (CNY)
In Thousands, unless otherwise specified
12 Months Ended
Sep. 30, 2012
Sep. 30, 2011
Sep. 30, 2010
Balance 2,714 842 842
Additions 4,038 1,872 0
Balance 6,752 2,714 842
XML 99 R92.htm IDEA: XBRL DOCUMENT v2.4.0.6
INCOME TAXES (Details Textual) (CNY)
In Thousands, except Per Share data, unless otherwise specified
12 Months Ended
Sep. 30, 2012
Sep. 30, 2011
Sep. 30, 2010
Sep. 30, 2008
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate 25.00% 25.00% 25.00% 33.00%
Preferential Tax Rate 25.00%      
Effective Income Tax Rate, Continuing Operations (202.00%) 1439.00% 12.00%  
Income Tax Holiday Effect On Tax Charges 2,012 5,226 7,648  
Income Tax Holiday, Income Tax Benefits Per Share (0.16) (0.23) 0.33  
Income Tax Holiday Income Tax Diluted Earnings Per Share (0.16) (0.23) 0.33  
Operating Loss Carryforwards, Expiration Dates five years      
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%      
XML 100 R34.htm IDEA: XBRL DOCUMENT v2.4.0.6
ORGANIZATION AND PRINCIPAL ACTIVITIES (Tables)
12 Months Ended
Sep. 30, 2012
Organization, Consolidation and Presentation Of Financial Statements [Abstract]  
Schedule Of Subsidiaries and Variable Interest Entities [Table Text Block]
As of September 30, 2012, details of the Company’s subsidiaries and variable interest entities are as follows:

 

    Date of   Place of   Percentage        
    Incorporation   Incorporation   of     Principal  
Name   or Establishment   or Establishment   Ownership     Activity  
                     
Subsidiaries:                    
State Harvest Holdings Limited (“State Harvest”)   October 6, 2004  

British Virgin Islands

  100 %   Investment holding  
                     
Beijing Origin State Harvest   December 1, 2004   People’s Republic   100 %   Hybrid seed  

Biotechnology Limited (“BioTech”)

      of China (“PRC”)         Technology development  
                     
Shandong Kunfeng Biochemical  Limited (note (iii)) (“Kunfeng”)   June 14, 2006   PRC   100 %   Agricultural chemical producer  
                     
Variable interest entity:                    
Beijing Origin Seed Limited (note (i)) (“Beijing Origin”)   December 26, 1997   PRC   -     Hybrid crop seed development,  
                  production and  
                  distribution  
                     
Subsidiaries held by Beijing Origin:                    

Henan Origin Cotton Technology Development Limited (note (i))

(“Henan Cotton”)

  March 2, 2001   PRC   92.04 %   Hybrid crop seed development, production and distribution  
                     
Changchun Origin Seed Technology Development Limited (note (i); note (iv)) (“Changchun Origin”)   April 29, 2003   PRC   99.83 %   Hybrid crop seed development, production and distribution  
                     

Linze Origin Seed Limited (note (i))

  November 18, 2008   PRC   100 %   Hybrid crop seed development, production and distribution  
                     
Xinjiang Originbo Seed Company Limited (“Xinjiang Origin”) (note (i); note (ii))   July 13, 2011   PRC   51 %   Hybrid crop seed development, production and distribution  
                     
Denong Zhengcheng Seed Limited (note v) (“Denong”)   June 21, 2000   PRC   98.58 %   Hybrid seed development, production and distribution  

 

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”.
Note (ii): During the year, both Beijing Origin and the non-controlling interest made capital injection to Xinjiang Originbo Seed Company Limited, leading to an increase in its paid in capital to RMB100,000 from RMB40,000 in last year. Subsequent to the capital injection, Beijing Origin holds a 51% ownership interest in Xinjiang Origin.
Note (iii): As of April 6, 2012, Kunfeng has completed its restructuring procedures and is now a wholly owned subsidiary of BioTech.
Note (iv): In July 2012, Beijing Origin made capital injection to Changchun Origin, leading to an increase in its paid in capital to RMB30,000 from 5,000 in last year. Subsequent to the capital injection, the share ratio of Beijing Origin increased to 99.83% from 99% last year.
Note (v): In June 2012, Beijing Origin made capital injection to Denong, leading to an increase in its paid in capital to RMB120,000 from 80,000 last year. Subsequent to the capital injection, the share ratio of Beijing Origin increased to 98.58% from 97.87% last year.
Schedule of Business Acquisitions, by Acquisition [Table Text Block]

The net book value of acquired assets and liabilities pursuant to the Share Exchange Transaction is as follows:

 

    RMB  
Net assets acquired:        
Cash     163,517  
Other current assets     6,201  
Due to State Harvest Shareholders and their designee     (2,022 )
Other payables and accrued expenses     (965 )
         
      166,731  
Less:  Transaction costs paid in cash     (14,430 )
Tax effect of the Share Exchange Transaction     (39,060 )
         
      113,241  
Schedule Of Business Acquisition Additional Purchase Price [Table Text Block]

As further additional purchase price, certain State Harvest Shareholders and their designee will be issued an aggregate of 1,500,000 shares of common stock of Agritech for any of the next four years if, on a consolidated basis, Agritech generates after-tax profits (excluding after-tax operating profits from any subsequent acquisitions of securities that have a dilutive effect and before the expenses of this transaction and director and employee option expense) of at least the following amounts:

 

    After-tax profit  
    US$  
Twelve months ended June 30,        
2006     11,000  
2007     16,000  
2008     21,000  
2009     29,000  
XML 101 R51.htm IDEA: XBRL DOCUMENT v2.4.0.6
COMMITMENTS AND CONTINGENCIES (Tables)
12 Months Ended
Sep. 30, 2012
Commitments and Contingencies Disclosure [Abstract]  
Long-term Purchase Commitment [Table Text Block]
As of September 30, 2011 and 2012, capital commitments for the purchase of long-term assets are as follows:

 

    September 30,  
    2011     2012  
    RMB     RMB  
             
Equipment     9       25,615  
Plant and building construction     15,353       8,773  
Technology use right     730       -  
Project of gene modification     5,000       2,000  
                 
      21,092       36,388  
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block]

As of September 30, 2012, the Company was obligated under operating leases requiring minimum rental as follows:

 

    RMB  
Year ending September 30,      
       
2013     2,685  
2014     1,504  
2015     1,546  
2016     1,316  
2017     900  
Thereafter     8,409  
         
      16,360  
XML 102 R21.htm IDEA: XBRL DOCUMENT v2.4.0.6
OTHER PAYABLES AND ACCRUED EXPENSES
12 Months Ended
Sep. 30, 2012
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,  
    2011     2012  
    RMB     RMB  
             
Payable for purchase of plant and equipment     206       10,158  
Payable for purchase of land use rights     1,050       1,050  
Payable for purchase of construction-in-progress     2,009       1,443  
Professional fee payable     3,789       2,028  
Salaries and bonus payable (note i)     9,949       18,966  
Accrued interest     1,813       1,813  
Accrued compensation expenses     150       36  
Accrued other expenses     1,284       3,917  
Other taxes payable     350       782  
Deposits from growers     2,407       3,425  
Payable for labor union and education expenses     677       595  
Loans from employees of Denong  (note ii)     310       310  
Loans from third parties  (note iii)     3,600       3,600  
Payable to former owners of Kunfeng     2,060       -  
Deferred government subsidies     8,526       6,289  
Others     2,171       2,332  
      40,351       56,744  

 

Note (i): Salaries and bonus payable increased in fiscal year 2012 due to our bonus payment timing change after our corporate-wide restructuring and the introduction of pay-for-performance contracts with employees.

 

Note (ii): RMB310 were borrowed from employees of Denong with interest free, unsecured and have no fixed repayment terms at the years ended September 30, 2011 and 2012, respectively.

 

Note (iii): RMB3,600 was borrowed from third party companies with interest free, unsecured and have no fixed repayment terms at the years ended September 30, 2011 and 2012, respectively.

XML 103 R26.htm IDEA: XBRL DOCUMENT v2.4.0.6
INCOME (LOSS) PER SHARE
12 Months Ended
Sep. 30, 2012
Earnings Per Share [Abstract]  
Earnings Per Share [Text Block]

19.         INCOME (LOSS) PER SHARE

 

The following table sets forth the computation of basic and diluted income (loss) per share for the

years indicated:

 

    Year ended
September 30,
 
    2010     2011     2012  
    RMB     RMB     RMB  
                   
Net income (loss) (numerator), basic and diluted     49,053       (23,079 )     (1,434 )
                         
Shares (denominator):                        
Common stock outstanding     23,292,412       23,382,812       23,382,812  
Weighted average common stock outstanding used in computing basic income per share     23,189,464       23,351,615       23,382,812  
                         
Add:  Share options     147,801       -       -  
Weighted average common stock outstanding used in computing diluted income per share     23,337,265       23,351,615       23,382,812  
                         
Net income (loss) per share-basic     2.12       (1.00 )     (0.06 )
                         
Net income (loss) per share-diluted     2.10       (1.00 )     (0.06 )

 

As of September 30, 2010, the effect of conversion and exercise of the Company’s outstanding options are included as their effect is dilutive. As of September 30, 2011 and 2012, the effect of the outstanding options was anti-dilutive.

XML 104 R95.htm IDEA: XBRL DOCUMENT v2.4.0.6
COMMITMENTS AND CONTINGENCIES (Details) (CNY)
In Thousands, unless otherwise specified
Sep. 30, 2012
Sep. 30, 2011
Other Commitment 36,388 21,092
Equipment [Member]
   
Other Commitment 25,615 9
Plant and building construction [Member]
   
Other Commitment 8,773 15,353
Technology use right [Member]
   
Other Commitment 0 730
Project of gene modification [Member]
   
Other Commitment 2,000 5,000
XML 105 R49.htm IDEA: XBRL DOCUMENT v2.4.0.6
INCOME TAXES (Tables)
12 Months Ended
Sep. 30, 2012
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,
 
    2010     2011     2012  
    RMB     RMB     RMB  
                   
Current     4,046       6,991       589  
Deferred     5,273       6,739       1,273  
                         
      9,319       13,730       1,862  
Schedule of Deferred Tax Assets and Liabilities [Table Text Block]

The principal components of the deferred income tax assets are as follows:

 

    September 30,  
    2011     2012  
    RMB     RMB  
Non-current deferred tax assets:                
Net operating loss carry forward     20,928       33,265  
Impairment on inventory     3,634       5,772  
Others     3,498       6,929  
                 
Non-current deferred income tax assets     28,060       45,966  
Valuation allowances     (25,032 )     (44,211 )
                 
Net non-current deferred income tax assets     3,028       1,755  
Summary of Operating Loss Carryforwards [Table Text Block]

The expiration period of unused tax losses is as follows:

 

    Year ended
September 30,
 
    2011     2012  
    RMB     RMB  
Calendar year ending,            
2012     11,694       11,694  
2013     25,586       15,747  
2014     188       -  
2015     11,042       10,997  
2016     45,944       54,491  
2017     -       77,399  
                 
      94,454       170,328
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,
 
    2010     2011     2012  
    %     %     %  
                   
Statutory rate     25       25       25  
Effect of preferential tax treatment     (10 )     (550 )     218  
Effect of different tax jurisdiction     4       307       (156 )
Permanent book-tax difference     -       403       1,757  
Effect of changes of applicable tax rate     -       -       -  
Change in valuation allowance     (5 )     998       (2,078 )
Under (over) provision in prior year     (2 )     256       32  
                         
Effective income tax rate     12       1,439       (202 )
XML 106 R41.htm IDEA: XBRL DOCUMENT v2.4.0.6
LAND USE RIGHTS, NET (Tables)
12 Months Ended
Sep. 30, 2012
Land Use Rights [Abstract]  
Schedule of Finite-Lived Intangible Assets [Table Text Block]

Land use rights, net consist of the following:

    September 30,  
    2011     2012  
    RMB     RMB  
             
Land use rights     36,569       36,399  
Accumulated amortization     (3,475 )     (4,081 )
                 
Land use rights, net     33,094       32,318  
XML 107 R5.htm IDEA: XBRL DOCUMENT v2.4.0.6
CONSOLIDATED STATEMENTS OF EQUITY
In Thousands, except Share data
Common Stock [Member]
CNY
Additional Paid-In Capital [Member]
USD ($)
Additional Paid-In Capital [Member]
CNY
Retained Earnings [Member]
USD ($)
Retained Earnings [Member]
CNY
Accumulated Other Comprehensive Income (Loss) [Member]
USD ($)
Accumulated Other Comprehensive Income (Loss) [Member]
CNY
Treasury Stock [Member]
USD ($)
Treasury Stock [Member]
CNY
Noncontrolling Interest [Member]
USD ($)
Noncontrolling Interest [Member]
CNY
Total
USD ($)
Total
CNY
Balance at Sep. 30, 2009 0   391,620   (125,507)   (10,403)   (29,377)   51,389   277,722
Balance (in shares) at Sep. 30, 2009 23,013,692                        
Net income for the year 0   0   49,053   0   0   17,298   66,351
Issuance of common stock upon exercise of share options 0   6,535   0   0   0   0   6,535
Issuance of common stock upon exercise of share options (in shares) 278,720                        
Acquisition of additional equity interest in a subsidiary from non-controlling interests     (15,971)   0   0   0   (8,229)   (24,200)
Share-based compensation expense     4,868   0   0   0   0   4,868
Acquisition of a subsidiary 0   0   0   0   0   3,538   3,538
Dividend paid to non-controlling interests 0   0   0   0   0   (6,907)   (6,907)
Translation adjustment 0   0   0   1,067   0   0   1,067
Balance at Sep. 30, 2010 0   387,052   (76,454)   (9,336)   (29,377)   57,089   328,974
Balance (in shares) at Sep. 30, 2010 23,292,412                        
Net income for the year 0   0   (23,079)   0   0   10,298   (12,781)
Issuance of common stock upon exercise of share options 0   2,654   0   0   0   0   2,654
Issuance of common stock upon exercise of share options (in shares) 90,400                        
Share-based compensation expense 0   4,638   0   0   0   0   4,638
Acquisition of a subsidiary 0   0   0   0   0   19,600   19,600
Liquidation of a subsidiary 0   0   0   0   0   (48,123)   (48,123)
Dividend paid to non-controlling interests 0   0   0   0   0   (12,090)   (12,090)
Translation adjustment 0   0   0   2,939   0   0   2,939
Balance at Sep. 30, 2011 0   394,344   (99,533)   (6,397)   (29,377)   26,774   285,811
Balance (in shares) at Sep. 30, 2011 23,382,812                        
Net income for the year 0   0   (1,434)   0   0   (1,351) (439) (2,785)
Share-based compensation expense 0   3,327   0   0   0   0   3,327
Capital injection from a non-controlling shareholder 0   0   0   0   0   29,400   29,400
Disposal of non-controlling interest in a subsidiary 0   0   0   0   0   (2,438)   (2,438)
Translation adjustment 0   0   0   117   0   0 19 117
Balance at Sep. 30, 2012 0 $ 62,714 397,671 $ (15,923) (100,967) $ (990) (6,280) $ (4,633) (29,377) $ 8,261 52,385 $ 49,429 313,432
Balance (in shares) at Sep. 30, 2012 23,382,812                        
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INCOME TAXES (Details)
In Thousands, unless otherwise specified
12 Months Ended
Sep. 30, 2012
USD ($)
Sep. 30, 2012
CNY
Sep. 30, 2011
CNY
Sep. 30, 2010
CNY
Current $ (93) (589) (6,991) (4,046)
Deferred (201) (1,273) (6,739) (5,273)
Income tax expense $ (294) (1,862) (13,730) (9,319)
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RELATED PARTY BALANCES AND TRANSACTIONS
12 Months Ended
Sep. 30, 2012
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
Jinong   Being an equity investment of the Company (note 10)
Liyu   Being an equity investment of the Company (note 10)
Henan Agriculture University   Being the non-controlling interest of Beijing Origin
Xinjiang Jinbo Seed Limited   Being the non-controlling interest of Xinjiang Origin

 

(2) Due from related parties

 

    September 30,  
    2011     2012  
    RMB     RMB  
             
Jinong     3,505       -  
Henan Agriculture University (note (i))     24       2,082  
Non-controlling interests of Denong     7       -  
Xinjiang Jinbo Seed Limited     1,447       -  
Non-controlling interests of Kunfeng     200       -  
                 
      5,183       2,082  

 

Note (i):   The balance as of September 30, 2012 represented the research funding from Origin to SK Wu Research Institute (through Henan Agriculture University), which is jointly sponsored by the provincial government of Henan Province and Origin.

 

(3) Due to related parties

 

    September 30,  
    2011     2012  
    RMB     RMB  
             
Non-controlling interests of Denong     113       -  
Xinjiang Jinbo Seed Limited     -       950  
Companies controlled by the Company’s directors     1,385       1,366  
Ex-shareholders of State Harvest     140       156  
Liyu     90       297  
                 
      1,728       2,769  

 

(4) Transactions with related parties

 

    (a) Sales to

 

    Year ended
September 30,
 
    2010     2011     2012  
      RMB       RMB       RMB  
                         
Jinong     -       2,000       8,319  

 

    (b) Purchases from

 

    Year ended
September 30,
 
    2010     2011     2012  
    RMB     RMB     RMB  
                   
Biocentury     116       -       -  
Liyu     240       90       -  
Xinjiang Jinbo Seed Limited     -       -       2,788  
Jinong     6       -       25,984  
                         
      362       90       28,772  

 

    (c) Technology usage fees charged by

 

    Year ended
September 30,
 
    2010     2011     2012  
    RMB     RMB     RMB  
                   
Liyu     5,471       5,953       9,541  
Henan Agriculture University     68       -       -  
Non-controlling interests of Denong     599       602       -  
Biocentury     306       -       -  
                         
      6,444       6,555       9,541  

 

The above amounts related to technology usage fees paid to certain related party research centers for the exclusive right to use certain seed technologies.

 

    (d) Purchases of plant and equipment from

 

    Year ended
September 30,
 
    2010     2011     2012  
      RMB       RMB       RMB  
                         
Jinong     150       -       -  

 

    (e) Rental expense paid for plant and equipment

 

    Year ended
September 30,
 
    2010     2011     2012  
      RMB       RMB       RMB  
                         
Jinong     935       468       -  

 

    (f) Research & Development expenses

 

    Year ended
September 30,
 
    2010     2011     2012  
      RMB       RMB       RMB  
                         
Holding company of Jinong     5,000       5,000       -  

  

    (g) Dividend received from

 

    Year ended
September 30,
 
    2010     2011     2012  
      RMB       RMB       RMB  
                         
Liyu     1,200       2,467       2,100  

 

    (h) Dividend paid to

 

    Year ended
September 30,
 
    2010     2011     2012  
      RMB       RMB       RMB  
                         
Jinong     5,025       10,050       -
XML 110 R58.htm IDEA: XBRL DOCUMENT v2.4.0.6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Textual)
In Thousands, unless otherwise specified
12 Months Ended
Sep. 30, 2012
USD ($)
Sep. 30, 2012
CNY
Sep. 30, 2011
CNY
Sep. 30, 2010
CNY
Sep. 30, 2012
Advertising Expense [Member]
CNY
Sep. 30, 2011
Advertising Expense [Member]
CNY
Sep. 30, 2010
Advertising Expense [Member]
CNY
Sep. 30, 2012
Shipping, Handling and Transportation Costs [Member]
CNY
Sep. 30, 2011
Shipping, Handling and Transportation Costs [Member]
CNY
Sep. 30, 2010
Shipping, Handling and Transportation Costs [Member]
CNY
Sep. 30, 2012
Leasehold Improvements [Member]
Sep. 30, 2012
Plant and Equipment Projects [Member]
CNY
Sep. 30, 2011
Plant and Equipment Projects [Member]
CNY
Sep. 30, 2012
Land Use Right [Member]
CNY
Sep. 30, 2011
Land Use Right [Member]
CNY
Sep. 30, 2012
Research and Development [Member]
CNY
Sep. 30, 2011
Research and Development [Member]
CNY
Sep. 30, 2012
Minimum [Member]
Technology Rights [Member]
Sep. 30, 2012
Minimum [Member]
Distribution Rights [Member]
Sep. 30, 2012
Minimum [Member]
Plant and Building [Member]
Sep. 30, 2012
Minimum [Member]
Machinery and Equipment [Member]
Sep. 30, 2012
Minimum [Member]
Furniture and Office Equipment [Member]
Sep. 30, 2012
Minimum [Member]
Vehicles [Member]
Sep. 30, 2012
Maximum [Member]
Technology Rights [Member]
Sep. 30, 2012
Maximum [Member]
Distribution Rights [Member]
Sep. 30, 2012
Maximum [Member]
Plant and Building [Member]
Sep. 30, 2012
Maximum [Member]
Machinery and Equipment [Member]
Sep. 30, 2012
Maximum [Member]
Furniture and Office Equipment [Member]
Sep. 30, 2012
Maximum [Member]
Vehicles [Member]
Foreign Currency Exchange Rate, Translation 6.3410 6.3410                                                      
Property, Plant and Equipment, Useful Life                                       20 years 10 years 5 years 5 years     40 years 15 years 8 years 10 years
Property, Plant and Equipment, Estimated Useful Lives                     Shorter of the useful lives or the lease term                                    
Finite-Lived Intangible Asset, Useful Life                                   3 years 6 years         20 years 14 years        
Government Subsidies Recognized   3,846 0 1,362               14,000 0 10,900 0 3,640 0                        
Selling and marketing $ (8,900) (56,437) (56,831) (52,227) 3,215 1,126 1,560 11,446 10,503 12,164                                      
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OTHER PAYABLES AND ACCRUED EXPENSES (Details)
In Thousands, unless otherwise specified
Sep. 30, 2012
USD ($)
Sep. 30, 2012
CNY
Sep. 30, 2011
CNY
Payable for purchase of plant and equipment   10,158 206
Payable for purchase of land use rights   1,050 1,050
Payable for purchase of construction-in-progress   1,443 2,009
Professional fee payable   2,028 3,789
Salaries and bonus payable (note i)   18,966 [1] 9,949 [1]
Accrued interest   1,813 1,813
Accrued compensation expenses   36 150
Accrued other expenses   3,917 1,284
Other taxes payable   782 350
Deposits from growers   3,425 2,407
Payable for labor union and education expenses   595 677
Loans from employees of Denong (note ii)   310 [2] 310 [2]
Loans from third parties (note iii)   3,600 [3] 3,600 [3]
Payable to former owners of Kunfeng   0 2,060
Deferred government subsidies   6,289 8,526
Others   2,332 2,171
Other payables and accrued expenses (note 14) $ 8,949 56,744 40,351
[1] Salaries and bonus payable increased in fiscal year 2012 due to our bonus payment timing change after our corporate-wide restructuring and the introduction of pay-for-performance contracts with employees.
[2] RMB310 were borrowed from employees of Denong with interest free, unsecured and have no fixed repayment terms at the years ended September 30, 2011 and 2012, respectively.
[3] RMB3,600 was borrowed from third party companies with interest free, unsecured and have no fixed repayment terms at the years ended September 30, 2011 and 2012, respectively.
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OTHER CURRENT ASSETS (Details Textual)
12 Months Ended
Sep. 30, 2012
Loans Receivable Interest Rate During Period 6.10%
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EMPLOYEE BENEFIT PLAN AND PROFIT APPROPRIATION
12 Months Ended
Sep. 30, 2012
Compensation and Retirement Disclosure [Abstract]  
Compensation and Employee Benefit Plans [Text Block]

20.         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 RMB10,494, and RMB12,752, and RMB13,476 for the years ended September 30, 2010, 2011 and 2012, respectively.

 

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% of the entity’s registered capital, the statutory surplus reserve fund requires annual appropriations of 10% of after-tax profit (as determined under accounting principles generally accepted in the PRC (“PRC GAAP”) at each year-end). The Company’s wholly foreign owned subsidiary, BioTech, however subject to the law applicable to foreign invested enterprises in the PRC, was required annual appropriation of the general reserve fund, no less than 10% of after-tax profit (as determined under PRC GAAP at each year-end). These reserve funds can only be used for specific purposes of enterprise expansion and staff welfare and are not distributable as cash dividends. The appropriation has been made for the years ended September 30, 2010, 2011 and 2012 were RMB2,598, RMB nil and RMB nil. There was no after-tax profit recorded in the PRC statutory accounts for 2012 and 2011. On the other hand, the amount set aside as of September 30, 2011 and 2012 were RMB24,789 and RMB24,789.

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Process Flow-Through: 002 - Statement - CONSOLIDATED BALANCE SHEETS Process Flow-Through: Removing column 'Sep. 30, 2011 USD ($)' Process Flow-Through: Removing column 'Sep. 30, 2010 CNY' Process Flow-Through: Removing column 'Sep. 30, 2009 CNY' Process Flow-Through: 003 - Statement - CONSOLIDATED BALANCE SHEETS [Parenthetical] Process Flow-Through: Removing column 'Sep. 30, 2010' Process Flow-Through: Removing column 'Sep. 30, 2009' Process Flow-Through: 004 - Statement - CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME Process Flow-Through: 006 - Statement - CONSOLIDATED STATEMENTS OF EQUITY [Parenthetical] Process Flow-Through: 007 - Statement - CONSOLIDATED STATEMENTS OF CASH FLOWS seed-20120930.xml seed-20120930.xsd seed-20120930_cal.xml seed-20120930_def.xml seed-20120930_lab.xml seed-20120930_pre.xml true true XML 115 R74.htm IDEA: XBRL DOCUMENT v2.4.0.6
EQUITY INVESTMENTS (Details)
In Thousands, unless otherwise specified
Sep. 30, 2012
USD ($)
Sep. 30, 2012
CNY
Sep. 30, 2011
CNY
Equity method investment $ 3,538 22,433 20,503
Cost method investment   18,721 0
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures   22,433 20,503
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ADVANCES TO SUPPLIERS (Tables)
12 Months Ended
Sep. 30, 2012
Advances To Suppliers [Abstract]  
Schedule Of Prepaid Expenses and Other Assets [Table Text Block]

Advances to suppliers consist of the following:

    September 30,  
    2011     2012  
    RMB     RMB  
             
Purchases of materials     7,460       2,357  
Prepayments for advertisement     280       620  
Prepayments for transportation fee     -       928  
Prepayments for operating lease     218       186  
Prepayments for testing fee     284       134  
Utility deposit     935       977  
Deposits for research and development fee     1,301       1,050  
Deposits for housing fund center     323       -  
Prepayment for seed usage right     -       574  
Others     1,617       976  
                 
      12,418       7,802  
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BORROWINGS
12 Months Ended
Sep. 30, 2012
Borrowings Disclosure [Abstract]  
Borrowings Disclosure [Text Block]

13.         BORROWINGS

 

    September 30,  
    2011     2012  
    RMB     RMB  
             
Short-term borrowings     20,000       35,000  
                 
Current portion of long-term borrowings     -       4,000  
                 
Long-term borrowings     -       35,000  

 

As of September 30, 2012, short-term borrowings were comprised of secured and unsecured bank loans of RMB5,000 and RMB30,000, respectively. Secured bank loan of RMB5,000 represented the bank borrowing under Beijing Origin, which has been supported by a land use right of RMB2,546 (note 8) and plant and equipment of RMB35,570 (note 9). The annual interest rate is 6.888%.

 

On the other hand, unsecured bank loans of RMB30,000 represented the bank borrowings with annual interest rate of 7.216%, which were under Linze Origin. The loans have been guaranteed by Beijing Origin.

 

As of September 30, 2012, long-term borrowings were comprised of unsecured bank loans of RMB39,000 under Xinjiang Origin, which have been guaranteed by Beijing Origin with annual interest rates ranged from 7.040% to 7.315%. The current portion of the loan amounted to RMB4,000, which will be due within one year, is presented as “current portion of long-term borrowing” on the consolidated balance sheet as of September 30, 2012.

 

As of September 30, 2011, short-term borrowings were comprised of secured bank loan of RMB20,000 which is under Linze Origin Seed Limited and has been guaranteed by a land use right of RMB453 (note 8) and plant and equipment of RMB6,882 (note 9). The annual interest rate is 6.56%.

 

Interest expense and weighted average interest rate for the years ended September 30, 2010, 2011 and 2012 were RMB8,539 and 5.70%, RMB1,469 and 6.56%, RMB4,029 and 7.04%, respectively.

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CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY (Details 2)
In Thousands, unless otherwise specified
12 Months Ended
Sep. 30, 2012
USD ($)
Sep. 30, 2012
CNY
Sep. 30, 2011
CNY
Sep. 30, 2010
CNY
Sep. 30, 2012
Parent Company [Member]
CNY
Sep. 30, 2011
Parent Company [Member]
CNY
Sep. 30, 2010
Parent Company [Member]
CNY
Net cash provided by/(used in) operating activities $ 13,044 82,713 37,457 298,604 (2,137) (3,745) 108,012
Net cash provided by/(used in) financing activities 13,152 83,400 (55,736) (136,359) 3,327 7,292 (106,493)
Net increase (decrease) in cash and cash equivalents 3,584 22,730 (172,669) 177,350 1,190 3,547 1,519
Cash and cash equivalents, beginning of year 20,492 129,942 299,672 121,255 1,099 4,995 6,245
Effect of exchange rate changes on cash and cash equivalents 19 117 2,939 1,067 (298) (7,443) (2,769)
Cash and cash equivalents, end of year $ 24,095 152,789 129,942 299,672 1,991 1,099 4,995