Origin Agritech Limited was incorporated on February 10, 2005. It was founded in 1997. Chardan, the predecessor of Origin, was a blank check company organized as a corporation under the laws of the State of Delaware on December 5, 2003. Chardan was formed for the purpose of effecting a business combination with companies having operations based in China and growth potential. Through its vertically-integrated business model, Origin develops, grows, processes, and markets hybrid seeds to farmers throughout China and parts of Southeast Asia via a network of 3,200 distributors. It is a technology-focused crop seed company serving mainland China. Origin's goal is to lead the industry by providing farmers with unique enabling technology and services, producing and protecting higher crop yields. The Company's activities include the specialization in the research and development, production and sales and marketing of crop seeds, corn, rice, cotton and canola throughout the PRC. Origin's focus remains in the production of seed products, whether proprietary or licensed. The Company's nationwide distribution network covers most parts of China and consists of over 3,800 first-level distributors and over 65,000 second-level distributors and retailers. The distributors sell its products to retailers who in turn sell to farmers, who are end-users of its products. It currently provides branded products and technical service to farmers in 29 of China's 31 provinces. Origin's intellectual property includes trademarks and patents relating to its seed products. It has two Chinese patents registered with the State Intellectual Property Office of China and twelve Chinese trademarks, including two trademarks registered with the Trademark Office of China's State Administration for Industry and Commerce. It faces competition at three levels, including other private Chinese companies, smaller local seed companies and large multinational hybrid and GM seed producers. It operates its business mainly in China under a legal regime that consists, at the national level, of the State Council, which is the highest authority of the executive branch of the PRC central government, and several ministries and agencies under its leadership, including: the Ministry of Agriculture and its local authorities; the Ministry of Commerce and its local authorities; SAFE and its local authorities; the State Administration of Industry and Commence and its local authorities and the State Administration of Taxation, and the Local Taxation Bureau.