CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY

12 Months Ended

Sep. 30, 2016

Condensed Financial Information Of Parent Company Only Disclosure [Abstract]

Condensed Financial Information of Parent Company Only Disclosure [Text Block]

26.

CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY

The condensed financial statements of Origin Agritech Limited (the “parent company”) have been prepared in accordance with accounting principles generally accepted in the United States of America. Under the PRC laws and regulations, the Company’s PRC subsidiaries are restricted in their ability to transfer certain of their net assets to the parent company in the form of dividend payments, loans or advances. The amounts restricted include paid-in capital, capital surplus and statutory reserves, as determined pursuant to PRC generally accepted accounting principles, totaling RMB109,651 and RMB109,651 as of September 30, 2015 and 2016, respectively.

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

CONDENSED BALANCE SHEET

	September 30
	2015		2016		2016
	RMB		RMB		US$
ASSETS
Current assets
Cash and cash equivalents		341		581		87
Other receivables		3		3		-
Prepaid expenses		481		-		-
Due from inter-companies		125,815		129,811		19,439
Total current assets		126,640		130,395		19,526
Investment in unconsolidated subsidiaries		130,013		71,512		10,709
Total assets		256,653		201,907		30,235

LIABILITIES AND EQUITY
Current liabilities
Due to related parties		1,511		1,586		237
Total current liabilities		1,511		1,586		237
Long-term borrowings		13,948		20,033		3,000
Total liabilities		15,459		21,619		3,237
Total stockholders’ equity		241,194		180,288		26,998
Total liabilities and stockholders’ equity		256,653		201,907		30,235

CONDENSED STATEMENT OF INCOME AND COMPREHENSIVE INCOME

	Year ended September 30,
	2014		2015		2016		2016
	RMB		RMB		RMB		US$

Revenues		286		303		204		31
Cost of revenues		-		-		-		-
Operating expenses
General and administrative		(5,025)		(4,335)		(16,035)		(2,401)
Loss from operations		(4,739)		(4,032)		(15,831)		(2,370)
Equity in earnings loss of unconsolidated subsidiaries		(43,579)		(9,223)		(49,009)		(7,339)
Interest expense		(268)		(553)		(738)		(111)
Loss before income taxes		(48,586)		(13,808)		(65,578)		(9,820)
Income tax (expense) benefits
Income tax expense		-		-		-		-
Reversal of contingent tax liability		39,059		-		-		-
Income tax benefits		39,059		-		-		-

Net loss		(9,527)		(13,808)		(65,578)		(9,820)
Other comprehensive loss
Foreign currency translation difference		(56)		(2,607)		(4,124)		(618)
Total comprehensive loss		(9,583)		(16,415)		(69,702)		(10,438)

CONDENSED STATEMENT OF CASH FLOWS

	Year ended September 30,
	2014		2015		2016		2016
	RMB		RMB		RMB		US$

Net cash used in operating activities		(3,288)		(7,242)		(20,009)		(2,996)
Net cash provided by (used in) financing activities		(452)		3,255		14,881		2,228
Net increase in cash and cash equivalents		(3,740)		(3,987)		(5,128)		(768)
Cash and cash equivalents, beginning of year		4,332		671		341		51
Effect of exchange rate changes on cash and cash equivalents		79		3,657		5,368		804
Cash and cash equivalents, end of year		671		341		581		87

BASIS OF PRESENTATION

The condensed financial information has been prepared using the same accounting policies as set out in the Company’s consolidated financial statements except that the parent company has used equity method to account for its investments in subsidiaries.

- Definition

The entire disclosure for condensed financial information, including the financial position, cash flows, and the results of operations of the registrant (parent company) as of the same dates or for the same periods for which audited consolidated financial statements are being presented. Alternatively, the details of this disclosure can be reported by the specific parent company taxonomy elements, indicating the appropriate date and period contexts in an instance document.

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