3. RELATED PARTY BALANCES AND TRANSACTIONS

(1)

Related party relationships


Name of related parties		Relationship
Beijing Shihui(i)		Being owned by close family members of the Company's Chairman
Xinjiang Ginbo Seeds Center		Being the non-controlling interest of Xinjiang Origin
Henan Agricultural University		Being the non-controlling interest of Beijing Origin
Linze Origin Seeds Ltd.(i)		Being owned by close family members of the Company's Chairman
De Nong Zheng Cheng Seed Limited		Being owned by close family members of the Company's Chairman
Henan Yingde Agricultural Ltd.		Being owned by close family members of the Company's Chairman
Beijing Origin Zhengzhou Branch("Zhengzhou Branch")		Being controlled by close family members of the Company's Chairman from August 16, 2017 to September 21, 2018
Non-controlling shareholders (“NCI”)		Non- controlling shareholders of Hubei Aoyu, Anhui Aoyu, Xuzhou Aoyu, Shandong Aoyu, Henan Aoyu, Shandong Aoruixinong

(i)

Other than typical transactions between related parties, the Company has entered into a Restructuring Agreement with three parties: Linze Fumin Industrial Investment and Development Co., Ltd. (Linze Fumin), Beijing Shihui, Linze Origin Seeds Ltd (Linze Origin) in April 2020. According to the Restructuring Agreement, Linze Origin, which is currently a wholly owned subsidiary of Beijing Shihui, would be restructured. At the result of the planned restructuring, Linze Fumin, an investment company owned by the Linze county government, and the Company would have 51% and 49%, respectively, of the ownership of Linze Origin. The restructuring would require the Company to repay the borrowing amounted to RMB27.0 million from Beijing Agriculture Finance Leasing, LLC.(“BAFL”) for Linze Origin and to offer a loan of RMB20.0 million to Linze Origin. As of February 10, 2021, the restructuring for Linze Origin is in process.

(1)

Due from related parties, net of bad debt allowance


	September 30,
	2019	2020
	RMB	RMB

Denong	—	1
Linze Origin Seeds Ltd	—	45
Beijing Shihui	24,819	28,340
NCI	6,719	12,423
Henan Yingde Agricultural Ltd.	2,252	8,904
The Close family of the Company’s Chairman	100	932
Total	33,890	50,645
Allowance for doubtful account	—	28,340
Due from related parties, net	33,890	22,305

(2)

Due from related party-noncurrent

As of September 30, 2020, the balance of due from related party-noncurrent of RMB42,246 represents the receivable from Linze Origin Seeds Ltd. This balance is presented as noncurrent according to the Restructuring Agreement disclosed in Note 3(1)(i).

(3)

Due to related parties


	September 30,
	2019	2020
	RMB	RMB

Linze Origin Seeds Limited	2,214	300
Henan Agriculture University	—	1,000
Xinjiang Ginbo Seeds Center (i) (ii)	10,000	54
Xinjiang Production And Construction Corps 5th Division State-owned Assets Management Co.,Ltd. (ii)	—	10,000
Companies controlled by the Company’s directors (ii)	1,706	1,633
NCI	14,948	10,176
The Company’s Chairman (ii)	13,213	1,704
Close family of the Company’s Chairman (ii)	552	680
YingDe	—	934
	42,633	26,481

Note (i): Xinjiang Origin has received a cash advance of RMB10,000 from Xinjiang Ginbo Seeds Center during the year ended September 30, 2016, which is unsecured, interest-free and repayable on demand, and has been transferred to Xinjiang Production And Construction Corps 5th Division State-owned Assets Management Co.,Ltd. for the years ended September 30, 2020.

Note (ii):In the ordinary course of business, the Company purchases raw materials from and sells product to related parties, and related parties also provide cash to fund the Company’s operations.

(4)

Transactions with related parties

(a)Sales to


	Year ended
	September 30,
	2018	2019	2020
	RMB	RMB	RMB
Linze Origin Seeds Limited	45	83	—
Beijing Shihui	—	20,823	—
YingDe	—	—	5,315
NCI	—	17,081	10,612
Zhengzhou Branch	7,803	—	—
	7,848	37,987	15,927

(b)License usage fees charged to

(c)Purchase from


	Year ended
	September 30,
	2018	2019	2020
	RMB	RMB	RMB
Denong	—	—	166
YingDe	—	—	10,975
Linze Origin Seeds Limited	—	—	3,416
Close family of the Company’s Chairman	—	—	32
NCI	—	—	2,861
	—	—	17,450

(d)Termination of assets sold to and a subsidiary acquired from a related party

As further described in note 4, on September 26, 2016, the Company entered into a Master Agreement to sell its proprietary China-based commercial corn seed production and distribution business for RMB400,000 to Beijing Shihui. On August 16, 2017, the Company entered into a supplemental agreement to the Master Agreement to increase the total consideration to RMB421,000 and modify the payment terms.

On September 21, 2018, the Company and certain subsidiaries of the Company entered into a Termination Agreement with Beijing Shihui to terminate that certain Master Agreement, dated as of September 26, 2016, by and among the Company, Beijing Shihui, and certain subsidiaries of the Company. Pursuant to the Termination Agreement, the Company and Beijing Shihui agreed to terminate the Master Agreement and not to pursue the second closing contemplated under the Master Agreement. As a result of the Termination Agreement, the Company did not transfer certain assets, including the headquarters building of the Company located in Beijing, PRC and certain other assets, to Beijing Shihui, meanwhile, the transfer of control of Zhengzhou Branch was unwound as a result of termination of the Management Agreement on September 21, 2018.

Year ended

September 30,

Beijing Shihui