COMMITMENTS AND CONTINGENCIES

12 Months Ended

Sep. 30, 2018

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies Disclosure [Text Block]

23.

COMMITMENTS AND CONTINGENCIES

(a)

Capital commitments

As of September 30, 2017 and 2018, capital commitments for the purchase of long-term assets are as follows:

	September 30,
	2017		2018
	RMB		RMB

Equipment		2,702		-

		2,702		-

(b)

Operating lease

The Company leased certain land use rights for seed development and office premises under non-cancellable leases. Rental expenses under operating leases for the years ended September 30, 2016, 2017 and 2018 were RMB2,314, RMB2,908 and RMB3,859, respectively.

As of September 30, 2018, the Company was obligated under operating leases requiring minimum rental as follows:

Year ending September 30,	RMB

2019		905
2020		548
2021		516
2022		500
2023		422
Thereafter		3,793
		6,684

(c)

Legal proceeding

There are legal proceedings against Linze Origin Seed Limited and Beijing Origin involving unsettled purchase orders to suppliers of Linze Origin Seed Limited. Pursuant to court order and mediations, the total compensation of these proceedings amounted to RMB23.7 million plus interests which primarily shall be settled by Linze Origin Seed Limited, and Beijing Origin shall be jointly and severally liable for these claims.

With respect to the legal proceedings and claims described above, such claims primarily shall be settled by Linze Origin Seed Limited and the Company's liability, if any, with respect to such claims, is uncertain. At present, the Company is unable to estimate a reasonably possible range of loss, if any, that may result from such litigation. If an unfavorable outcome were to occur in the litigation described above, the impact could be material to the Company's business, financial condition, or results of operations.