BEIJING, Aug. 22, 2017 /PRNewswire/ -- China New Borun
Corporation (NYSE: BORN; "Borun" or the "Company"), a leading
producer and distributor of corn-based edible alcohol in
China, today announced its
unaudited financial results for the second quarter ended
June 30, 2017.
Mr. Jinmiao Wang, Chairman and
Chief Executive Officer of Borun, commented on the results, "We are
pleased with our solid results for second quarter of 2017, as
revenue expanded by 4.7% year-over-year, gross profit by 19.3%
year-over-year, and net income by 14.5% year-over-year. We
also generated outstanding cash flows from operations totaling
RMB333.4 million ($49.2 million), driven by the deployment of our
pre-purchased corn inventory.
Driven by the strong sale volumes across major product
categories, our facilities were practically running at maximum
output, with effective utilization rate of 97%. Sales volume
of edible alcohol and DDGS Feed reached a new five-year high to
95,196 tons and 83,586 tons, respectively.
We continue to witness solid demand from a healthy baijiu
industry, with prices rising for the top baijiu
brands. Corn prices are also rising in the current
non-harvest season, which favors our corn sourcing advantage, and
we are confident that despite the rising corn prices at the spot
market, our corn cost during the third quarter will remain
stable. With adequate corn reserves, healthy cash flows, and
a strong cash balance of more than RMB1.2
billion to support our corn sourcing arrangement in the next
harvest season, we are reassured with our competitive position for
the second half of 2017," Mr. Wang concluded.
Second Quarter 2017 Quick
View
- Total revenue increased 4.7% to RMB555.1
million ($81.9 million[1])
from RMB530.4 million in the second
quarter of 2016.
- Gross profit increased 19.3% to RMB52.5
million ($7.8 million) from
RMB44.0 million in the second quarter
of 2016.
- Net income increased 14.5% to RMB17.0
million ($2.5 million) from
RMB14.9 million in the second quarter
of 2016.
- Basic and diluted earnings per American Depositary Share
("ADS") were RMB0.66 ($0.10) for the quarter ended June 30, 2017. Each ADS represents one of the
Company's ordinary shares.
Second Quarter 2017 Financial Performance
For the second quarter of 2017, revenue increased by 4.7%
year-over-year to RMB555.1 million
($81.9 million) from RMB530.4 million in the same period of 2016. The
increase in revenue was mainly attributable to higher sales volume
of edible alcohol and its by-products.
Revenue breakdown by product lines is as follows:
- Revenue from edible alcohol increased by 1.6% to RMB366.9 million ($54.2
million) in the second quarter of 2017, compared to
RMB360.9 million in the second
quarter of 2016. The sales volume of edible alcohol in the second
quarter of 2017 increased by 13.2% year-over-year to 95,196 tons,
while the average selling price of edible alcohol decreased by
10.2% year-over-year to RMB3,854 per
ton.
- Revenue from DDGS Feed increased by 12.2% to RMB135.1 million ($19.9
million) in the second quarter of 2017, compared to
RMB120.4 million in the second
quarter of 2016. The sales volume of DDGS Feed in the second
quarter of 2017 increased by 3.7% year-over-year to 83,586 tons,
and the average selling price increased by 8.2% year-over-year to
RMB1,616 per ton.
- Revenue from liquid carbon dioxide decreased by 10.8% to
RMB4.9 million ($0.7 million) in the second quarter of 2017,
compared to RMB5.5 million in the
second quarter of 2016. The sales volume of liquid carbon dioxide
in the second quarter of 2017 decreased by 4.9% year-over-year to
30,657 tons, and the average selling price decreased by 6.2%
year-over-year to RMB160 per
ton.
- Revenue from crude corn oil decreased by 6.0% to RMB17.0 million ($2.5
million) in the second quarter of 2017, compared to
RMB18.1 million in the second quarter
of 2016. The sales volume of crude corn oil in the second quarter
of 2017 increased by 1.8% year-over-year to 2,860 tons, and the
average selling price decreased by 7.7% year-over-year to
RMB5,950 per ton.
- Revenue from CPE increased by 22.8% to RMB31.2 million ($4.6
million) in the second quarter of 2017, compared to
RMB25.4 million in the second quarter
of 2016. The sales volume of CPE in the second quarter of 2017
increased by 26.9% year over year to 3,935 tons, and the average
selling price decreased by 3.3% to RMB7,938 per ton.
During the second quarter of 2017, gross profit increased by
19.3% to RMB52.5 million
($7.8 million) from RMB44.0 million in the same period of 2016. Gross
margin for the second quarter of 2017 increased to 9.5%, from 8.3%
in the same period of 2016, which was primarily attributable to the
steeper decrease in average corn cost, compare with selling price
of edible alcohol.
Operating income increased by 23.2% to RMB39.3 million ($5.8
million) in the second quarter of 2017, from RMB31.9 million in the same period of 2016,
primarily attributable to higher gross profit earned.
Selling expenses decreased by RMB0.3
million, or 22.2% to RMB0.9
million ($0.1 million) in the
second quarter of 2017, from RMB1.2
million in the same period of 2016.
General and administrative expenses increased by RMB1.4 million, or 12.7% to RMB12.3 million ($1.8
million) in the second quarter of 2017, from RMB10.9 million in the same period of 2016.
Income tax expenses in the second quarter of 2017 were
RMB5.7 million ($0.8 million), representing an effective tax rate
of 25.0%.
Net income increased by 14.5% to RMB17.0
million ($2.5 million) in the
second quarter of 2017, compared to RMB14.9
million in the same quarter of 2016. In the second quarter
of 2017, basic and diluted earnings per share and per ADS were
RMB0.66 ($0.10), and the Company had 25.7 million
weighted average basic and diluted shares outstanding.
As of June 30, 2017, cash and bank
deposits of RMB1,219.8 million
($180.1 million) increased by
RMB424.5 million, compared with
RMB795.3 million as of December 31, 2016. Cash flows generated from
operating activities for the second quarter of 2017 amounted to
RMB333.4 million ($49.2 million) which was mainly generated form
the decrease in inventory during the second quarter of 2017.
Financial Outlook
For the third quarter of 2017, the Company's Shandong facility will halt production for
approximately two weeks, and the Daqing facility will halt
production for up to four weeks for annual maintenance.
Comparatively, in the third quarter of 2016, the Company's
Shandong and Daqing facilities did
not halt production, as the Company had already completed annual
maintenance in the second quarter of 2016. Reflecting the
comparatively shorter year-over-year production period, the Company
estimates that its revenue for the third quarter of 2017 will be in
the range of RMB380 million
($56.1 million) to RMB420 million
($62.0 million), a decrease of
approximately 36.9% to approximately 30.3%, respectively, over the
same quarter of 2016.
This guidance is based on the current market conditions and
reflects the Company's current and preliminary estimates of market
and operating conditions and customer demand, which are all subject
to change.
Conference Call
Borun's management will hold a corresponding earnings conference
call and live webcast at 8:00 a.m.
E.T. on Wednesday, August 23,
2017 (8:00 p.m. Beijing time on Wednesday, August 23, 2017) to discuss the
results and highlights from the second quarter 2017 and answer
questions from investors. A webcast of the call will be available
at http://ir.chinanewborun.com. Listeners may
access the call by dialing:
|
United States Toll
Free:
|
1-866-519-4004
|
|
US
Toll/International:
|
1-845-675-0437
|
|
Hong Kong Toll
Free:
|
800-906-601
|
|
Hong Kong
Toll:
|
852-3018-6771
|
|
China
Toll:
|
800-819-0121
|
|
China Toll
(Mobile):
|
400-620-8038
|
|
Conference
ID:
|
66753231
|
A replay of the webcast will be accessible through August 31, 2017 on http://ir.chinanewborun.com or
by dialing:
|
United States toll
free:
|
1-855-452-5696
|
|
International:
|
61-2-8199-0299
|
|
Passcode:
|
66753231
|
About China New Borun Corporation
China New Borun Corporation (NYSE: BORN) is a leading producer
and distributor of corn-based edible alcohol sold as an ingredient
to producers of baijiu, a popular grain-based alcoholic
beverage in China. The Company
also produces DDGS Feed, liquid carbon dioxide and crude corn oil
as by-products of edible alcohol production, and CPE that is widely
used in chemical industries. China New
Borun is based in Shouguang, Shandong Province. Additional information
about the company can be found at http://www.chinanewborun.com and
in documents filed with the U.S. Securities and Exchange
Commission, which are available on the SEC's website at
http://www.sec.gov.
Forward-looking Statements
All statements included in this press release, other than
statements or characterizations of historical fact, are
forward-looking statements. These forward-looking statements are
based on our current expectations, estimates and projections about
our industry, management's beliefs, and certain assumptions made by
us, all of which are subject to change. Forward-looking statements
can often be identified by words such as "anticipates," "expects,"
"intends," "plans," "predicts," "believes," "seeks," "estimates,"
"may," "will," "should," "would," "could," "potential," "continue,"
"ongoing," similar expressions, and variations or negatives of
these words. These forward-looking statements are not guarantees of
future results and are subject to risks, uncertainties and
assumptions that could cause our actual results to differ
materially and adversely from those expressed in any
forward-looking statement.
[1] This press release contains translations of certain Renminbi
amounts into US dollars at specified rates solely for the
convenience of readers. Unless otherwise noted, all translations
from Renminbi to US dollars for the period ended June 30, 2017 were made at a rate of RMB6.7744 to USD1.00, the rate published by the People's Bank
of China on June 30, 2017. China New
Borun Corporation makes no representation that the Renminbi or US
dollar amounts referred to in this press release could have been or
could be converted into US dollars or Renminbi, at any particular
rate or at all.
Contact Information
Asia Bridge Capital Limited
Wendy Sun
Phone: +86-10-8556-9033 (China)
+1-888-870-0798 (U.S.)
Email: wendy.sun@asiabridgegroup.com
|
CHINA NEW
BORUN CORPORATION
UNAUDITED
CONSOLIDATED BALANCE SHEETS
|
|
|
December 31,
2016
|
|
June 30,
2017
|
|
RMB
|
|
RMB
|
|
US$
|
|
Assets
|
|
|
|
|
|
|
Cash
|
795,329,065
|
|
1,219,761,937
|
|
180,054,608
|
|
Trade accounts
receivable, net of allowance for doubtful accounts of RMB nil and
RMB nil (US$ nil), as of December 31, 2016 and June 30, 2017,
respectively
|
415,621,572
|
|
390,926,580
|
|
57,706,451
|
|
Inventories
|
602,628,839
|
|
648,631,535
|
|
95,747,451
|
|
Advance to
suppliers
|
245,977,475
|
|
243,582
|
|
35,956
|
|
Other
receivables
|
81,055,814
|
|
93,578,212
|
|
13,813,506
|
|
Prepaid
expenses
|
3,325,225
|
|
1,513,382
|
|
223,397
|
|
Total current
assets
|
2,143,937,990
|
|
2,354,655,228
|
|
347,581,369
|
|
Property, plant and
equipment, net
|
876,240,529
|
|
820,243,097
|
|
121,079,815
|
|
Land use right,
net
|
130,460,205
|
|
129,043,917
|
|
19,048,760
|
|
Total
assets
|
3,150,638,724
|
|
3,303,942,242
|
|
487,709,944
|
|
|
|
|
|
|
|
Liabilities and
shareholders' equity
|
|
|
|
|
|
|
Trade accounts
payable
|
23,643,261
|
|
19,434,182
|
|
2,868,768
|
|
Accrued expenses and
other payables
|
47,614,155
|
|
52,863,857
|
|
7,803,474
|
|
Income taxes
payable
|
12,242,364
|
|
28,457,093
|
|
4,200,681
|
|
Short-term
borrowings
|
905,170,000
|
|
978,380,000
|
|
144,423,122
|
|
Total current
liabilities
|
988,669,780
|
|
1,079,135,132
|
|
159,296,045
|
|
Bonds payable in
connection with 2016 Bonds:
Outstanding principal
amount of RMB300,000,000, bearing fixed annual interest rate of
6.5%, with maturity on November 2, 2021 (less unamortized debt
issuance costs based on imputed interest rate of 6.75% of
RMB6,830,549 and RMB5,975,840 ($882,121) as of December 31, 2016
and June 30, 2017, respectively)
|
293,169,451
|
|
294,024,160
|
|
43,402,244
|
|
Total
liabilities
|
1,281,839,231
|
|
1,373,159,292
|
|
202,698,289
|
|
|
|
|
|
|
|
Shareholders'
equity
|
|
|
|
|
|
|
Ordinary share
– par value of RMB0.0068259, 25,725,000 shares authorized,
issued and outstanding as of December 31, 2016 and June 30, 2017,
respectively
|
175,596
|
|
175,596
|
|
25,725
|
|
Additional paid-in
capital
|
468,132,187
|
|
468,132,187
|
|
69,103,122
|
|
Retained earnings –
appropriated
|
153,533,656
|
|
153,533,656
|
|
22,663,801
|
|
Retained earnings –
unappropriated
|
1,247,519,969
|
|
1,309,475,581
|
|
193,297,647
|
|
Accumulated other
comprehensive loss
|
(561,915)
|
|
(534,070)
|
|
(78,640)
|
|
Total shareholders'
equity
|
1,868,799,493
|
|
1,930,782,950
|
|
285,011,655
|
|
Total liabilities and
shareholders' equity
|
3,150,638,724
|
|
3,303,942,242
|
|
487,709,944
|
|
CHINA NEW BORUN
CORPORATION
|
|
UNAUDITED
CONSOLIDATED STATEMENTS OF INCOME
|
|
|
For the
three-month period ended,
|
|
June
30,
|
|
December
31,
|
|
June
30,
|
|
2016
|
2016
|
2017
|
|
RMB
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
|
|
|
|
|
|
|
Revenues
|
530,379,367
|
|
513,471,966
|
|
555,093,952
|
|
81,939,943
|
|
Cost of goods
sold
|
486,353,803
|
|
467,502,403
|
|
502,561,489
|
|
74,185,387
|
|
Gross
profit
|
44,025,564
|
|
45,969,563
|
|
52,532,463
|
|
7,754,556
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
Selling
|
1,206,445
|
|
907,214
|
|
938,979
|
|
138,607
|
|
General
and administrative
|
10,910,620
|
|
14,996,132
|
|
12,294,818
|
|
1,814,894
|
|
Total operating
expenses
|
12,117,065
|
|
15,903,346
|
|
13,233,797
|
|
1,953,501
|
|
Operating
income
|
31,908,499
|
|
30,066,217
|
|
39,298,666
|
|
5,801,055
|
|
|
|
|
|
|
|
|
|
Other (income)
expenses:
|
|
|
|
|
|
|
|
|
Interest
income
|
(467,853)
|
|
(919,059)
|
|
(942,288)
|
|
(139,096)
|
|
Interest
expense
|
12,563,890
|
|
14,256,960
|
|
17,558,275
|
|
2,591,857
|
|
Others,
net
|
(25,047)
|
|
(4,009,834)
|
|
(25,263)
|
|
(3,729)
|
|
Total other expense,
net
|
12,070,990
|
|
9,328,067
|
|
16,590,724
|
|
2,449,032
|
|
Income before income
taxes
|
19,837,509
|
|
20,738,150
|
|
22,707,942
|
|
3,352,023
|
|
Income tax
expense
|
4,959,378
|
|
5,184,537
|
|
5,676,985
|
|
838,006
|
|
Net income
|
14,878,131
|
|
15,553,613
|
|
17,030,957
|
|
2,514,017
|
|
|
|
|
|
|
|
|
|
Earnings per
share:
|
|
|
|
|
|
|
|
|
Basic and
diluted
|
0.58
|
|
0.60
|
|
0.66
|
|
0.10
|
|
Weighted average
ordinary shares outstanding:
|
|
|
|
|
|
|
|
|
Basic and
diluted
|
25,725,000
|
|
25,725,000
|
|
25,725,000
|
|
25,725,000
|
|
CHINA NEW BORUN
CORPORATION
UNAUDITED
CONSOLIDATED STATEMENTS OF INCOME
|
|
For the
six-month period ended,
|
|
June 30,
2016
|
|
June 30,
2017
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
|
|
|
|
|
Revenues
|
1,016,961,602
|
|
1,071,003,283
|
|
158,095,666
|
|
Cost of goods
sold
|
913,424,014
|
|
927,765,691
|
|
136,951,714
|
|
Gross
profit
|
103,537,588
|
|
143,237,592
|
|
21,143,952
|
|
Operating
expenses:
|
|
|
|
|
|
|
Selling
|
2,291,413
|
|
1,857,320
|
|
274,167
|
|
General and
administrative
|
22,944,278
|
|
25,926,437
|
|
3,827,119
|
|
Total operating
expenses
|
25,235,691
|
|
27,783,757
|
|
4,101,286
|
|
Operating
income
|
78,301,897
|
|
115,453,835
|
|
17,042,666
|
|
|
|
|
|
|
|
Other (income)
expenses:
|
|
|
|
|
|
|
Interest
income
|
(2,461,915)
|
|
(1,697,415)
|
|
(250,563)
|
|
Interest
expense
|
26,874,240
|
|
34,603,020
|
|
5,107,909
|
|
Others, net
|
383,588
|
|
(59,252)
|
|
(8,746)
|
|
Total other expense,
net
|
24,795,913
|
|
32,846,353
|
|
4,848,600
|
|
Income before income
taxes
|
53,505,984
|
|
82,607,482
|
|
12,194,066
|
|
Income tax
expense
|
13,376,496
|
|
20,651,870
|
|
3,048,516
|
|
Net income
|
40,129,488
|
|
61,955,612
|
|
9,145,550
|
|
|
|
|
|
|
|
Earnings per
share:
|
|
|
|
|
|
|
Basic and
diluted
|
1.56
|
|
2.41
|
|
0.36
|
|
Weighted average
ordinary shares outstanding:
|
|
|
|
|
|
|
Basic and
diluted
|
25,725,000
|
|
25,725,000
|
|
25,725,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
View original
content:http://www.prnewswire.com/news-releases/china-new-borun-announces-second-quarter-2017-unaudited-financial-results-300507963.html
SOURCE China New Borun Corporation
