BEIJING, Nov. 21, 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 third quarter ended September 30, 2017.
Mr. Jinmiao Wang, Chairman and Chief Executive Officer of Borun, commented on the results,
"Despite a longer annual maintenance, our third quarter revenue of RMB457 million beat our previous
guidance. We again generated outstanding cash flows from operations totaling RMB342 million,
boosting our corn sourcing capabilities in the new corn harvest season.
Demand remains strong from a very healthy baijiu industry, and we are encouraged by an increase in the average selling
price of edible alcohol, which expanded 7% sequentially from that of the second quarter, and continued to further increase in
October. With our facilities back up to full speed and corn prices stabilizing this harvest season, we anticipate higher revenue
and sequential margin expansion in the fourth quarter of 2017," Mr. Wang concluded.
Third Quarter 201 7 Quick View
- Total revenue decreased 24.1% to RMB457.0 million ($68.9
million [1]) from RMB602.2 million in the third quarter of 2016.
- Gross profit decreased 7.7% to RMB30.1 million ($4.5 million)
from RMB32.6 million in the third quarter of 2016.
- Net income decreased 84.2% to RMB1.3 million ($0.2 million)
from RMB8.0 million in the third quarter of 2016.
- Basic and diluted earnings per American Depositary Share ("ADS") were RMB0.05 ($0.01) for the quarter ended September 30, 2017. Each ADS represents one of
the Company's ordinary shares.
|
[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 September 30, 2017 were made at a rate of RMB6.6369 to
USD1.00, the rate published by the People's Bank of China on September 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.
|
Third Quarter 2017 Financial Performance
For the third quarter of 2017, revenue decreased by 24.1% year-over-year to RMB457.0 million
($68.9 million) from RMB602.2 million in the same period of 2016. The
decrease in revenue was mainly due to lower sales volume of edible alcohol and its by-products.
Revenue breakdown by product lines is as follows:
- Revenue from edible alcohol decreased by 20.9% to RMB319.5 million ($48.1 million) in the third quarter of 2017, compared to RMB403.9 million in
the third quarter of 2016. The sales volume of edible alcohol in the third quarter of 2017 decreased by 17.9% year-over-year to
77,476 tons, while the average selling price of edible alcohol decreased by 3.7% year-over-year to RMB4,123 per ton.
- Revenue from DDGS Feed decreased by 15.5% to RMB114.7 million ($17.3
million) in the third quarter of 2017, compared to RMB135.7 million in the third quarter
of 2016. The sales volume of DDGS Feed in the third quarter of 2017 decreased by 13.0% year-over-year to 70,280 tons, and the
average selling price decreased by 2.9% year-over-year to RMB1,632 per ton.
- Revenue from liquid carbon dioxide increased by 12.7% to RMB6.8 million ($1.0 million) in the third quarter of 2017, compared to RMB6.0 million in the
third quarter of 2016. The sales volume of liquid carbon dioxide in the third quarter of 2017 decreased by 14.7% year-over-year
to 30,042 tons, and the average selling price increased by 32.2% year-over-year to RMB226 per
ton.
- Revenue from crude corn oil decreased by 17.6% to RMB16.0 million ($2.4 million) in the third quarter of 2017, compared to RMB19.5 million in the
third quarter of 2016. The sales volume of crude corn oil in the third quarter of 2017 decreased by 18.0% year-over-year to
2,529 tons, and the average selling price increased slightly by 0.4% year-over-year to RMB6,342
per ton.
During the third quarter of 2017, gross profit decreased by 7.7% to RMB30.1 million
($4.5 million) from RMB32.6 million in the same period of 2016. Gross
margin for the third quarter of 2017 increased to 6.6%, from 5.4% 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 decreased by 17.7% to RMB17.4 million ($2.6
million) in the third quarter of 2017, from RMB21.1 million in the same period of 2016,
primarily due to lower gross profit earned.
Selling expenses decreased by RMB0.1 million, or 11.8% to RMB0.9
million ($0.1 million) in the third quarter of 2017, from RMB1.0
million in the same period of 2016.
General and administrative expenses increased by RMB1.3 million, or 12.9% to RMB11.8 million ($1.8 million) in the third quarter of 2017, from RMB10.5 million in the same period of 2016.
Income tax expenses in the third quarter of 2017 were RMB0.4 million ($0.1 million), representing an effective tax rate of 25.0%.
Net income decreased by 84.2% to RMB1.3 million ($0.2 million) in
the third quarter of 2017, compared to RMB8.0 million in the same quarter of 2016. In the third
quarter of 2017, basic and diluted earnings per share and per ADS were RMB0.05 ($0.01), and the Company had 25.7 million weighted average basic and diluted shares outstanding.
As of September 30, 2017, cash and bank deposits of RMB1.4 billion
($216.4 million) increased by RMB640.8 million, compared with
RMB795.3 million as of December 31, 2016. Cash flows generated from
operating activities for the third quarter of 2017 amounted to RMB341.6 million ($51.5 million) which was mainly generated form the decrease in inventory during the third quarter of 2017.
Financial Outlook
The Company estimates that its revenue for the fourth quarter of 2017 will be in the range of RMB520
million ($78.3 million) to RMB560 million ($84.4 million), an
increase of approximately 1.3% to an increase of 9.1% 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, November 22, 2017 (9:00 p.m. Beijing time on Wednesday, November 22, 2017) to discuss the results and
highlights from the third 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:
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United States Toll Free:
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1-866-519-4004
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US Toll/International:
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1-845-675-0437
|
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Hong Kong Toll Free:
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800-906-601
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Hong Kong Toll:
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852-3018-6771
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|
China Toll:
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800-819-0121
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China Toll (Mobile):
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400-620-8038
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Conference ID:
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8986459
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A replay of the webcast will be accessible through November 30, 2017 on http://ir.chinanewborun.com or by dialing:
|
United States toll free:
|
1-855-452-5696
|
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International:
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61-2-8199-0299
|
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Passcode:
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8986459
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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.
Contact Information
Asia Bridge Capital Limited
Michael Tieu
Phone: +86-10-8556-9033 (China)
+1-888-870-0798 (U.S.)
Email: Michael.tieu@asiabridgegroup.com
|
CHINA NEW BORUN CORPORATION
|
|
UNAUDITED CONSOLIDATED BALANCE SHEET S
|
|
|
December 31, 2016
|
|
September 30, 2017
|
|
RMB
|
|
RMB
|
|
US$
|
|
Assets
|
|
|
|
|
|
|
Cash
|
795,329,065
|
|
1,436,113,139
|
|
216,383,121
|
|
Trade accounts receivable, net of allowance for doubtful
accounts
|
415,621,572
|
|
370,800,566
|
|
55,869,542
|
|
Inventories
|
602,628,839
|
|
392,803,569
|
|
59,184,795
|
|
Advance to suppliers
|
245,977,475
|
|
1,039,827
|
|
156,674
|
|
Other receivables
|
81,055,814
|
|
60,823,803
|
|
9,164,490
|
|
Prepaid expenses
|
3,325,225
|
|
3,158,583
|
|
475,912
|
|
Total current assets
|
2,143,937,990
|
|
2,264,739,487
|
|
341,234,534
|
|
Property, plant and equipment, net
|
876,240,529
|
|
792,244,381
|
|
119,369,643
|
|
Land use right, net
|
130,460,205
|
|
128,335,773
|
|
19,336,704
|
|
Total assets
|
3,150,638,724
|
|
3,185,319,641
|
|
479,940,881
|
|
|
|
|
|
|
|
Liabilities and shareholders' equity
|
|
|
|
|
|
|
Trade accounts payable
|
23,643,261
|
|
18,290,213
|
|
2,755,837
|
|
Accrued expenses and other payables
|
47,614,155
|
|
58,785,978
|
|
8,857,445
|
|
Income taxes payable
|
12,242,364
|
|
28,879,533
|
|
4,351,359
|
|
Short-term borrowings
|
905,170,000
|
|
853,067,011
|
|
128,533,956
|
|
Total current liabilities
|
988,669,780
|
|
959,022,735
|
|
144,498,597
|
|
Bonds payable:
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 RMB5,772,426 ($869,747) as of December 31, 2016
and September 30, 2017, respectively)
|
293,169,451
|
|
294,227,574
|
|
43,332,079
|
|
Total liabilities
|
1,281,839,231
|
|
1,253,250,309
|
|
188,830,676
|
|
|
|
|
|
|
|
Shareholders' equity
|
|
|
|
|
|
|
|
|
|
|
|
|
Ordinary share - par value of RMB0.0068259, 25,725,000
shares authorized, issued and outstanding as of December
31, 2016 and September 30, 2017, respectively
|
175,596
|
|
175,596
|
|
25,725
|
|
Additional paid-in capital
|
468,132,187
|
|
468,132,187
|
|
70,534,766
|
|
Retained earnings - appropriated
|
153,533,656
|
|
153,533,656
|
|
23,133,339
|
|
Retained earnings - unappropriated
|
1,247,519,969
|
|
1,310,742,892
|
|
197,493,241
|
|
Accumulated other comprehensive loss
|
(561,915)
|
|
(514,999)
|
|
(76,866)
|
|
|
Total shareholders' equity
|
1,868,799,493
|
|
1,932,069,332
|
|
291,110,205
|
|
Total liabilities and shareholders' equity
|
3,150,638,724
|
|
3,185,319,641
|
|
479,940,881
|
|
CHINA NEW BORUN CORPORATION
|
|
UNAUDITED CONSOLIDATED STATEMENTS OF INCOME
|
|
|
For the three - month period ended,
|
|
September 30 ,
201 6
|
|
June 30 ,
201 7
|
|
September 30, 2017
|
|
RMB
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
|
|
|
|
|
|
|
Revenues
|
602,246,617
|
|
555,093,952
|
|
457,012,922
|
|
68,859,396
|
|
Cost of goods sold
|
569,687,921
|
|
502,561,489
|
|
426,956,487
|
|
64,330,710
|
|
Gross profit
|
32,558,696
|
|
52,532,463
|
|
30,056,435
|
|
4,528,686
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
Selling
|
966,076
|
|
938,979
|
|
852,375
|
|
128,430
|
|
General and administrative
|
10,473,339
|
|
12,294,818
|
|
11,823,704
|
|
1,781,510
|
|
Total operating expenses
|
11,439,415
|
|
13,233,797
|
|
12,676,079
|
|
1,909,940
|
|
Operating income
|
21,119,281
|
|
39,298,666
|
|
17,380,356
|
|
2,618,746
|
|
|
|
|
|
|
|
|
|
Other (income) expenses:
|
|
|
|
|
|
|
|
|
Interest income
|
(662,929)
|
|
(942,288)
|
|
(1,239,283)
|
|
(186,726)
|
|
Interest expense
|
11,110,400
|
|
17,558,275
|
|
16,953,914
|
|
2,554,493
|
|
Others, net
|
(32,000)
|
|
(25,263)
|
|
(24,023)
|
|
(3,620)
|
|
Total other expense, net
|
10,415,471
|
|
16,590,724
|
|
15,690,608
|
|
2,364,147
|
|
Income before income taxes
|
10,703,810
|
|
22,707,942
|
|
1,689,748
|
|
254,599
|
|
Income tax expense
|
2,675,953
|
|
5,676,985
|
|
422,437
|
|
63,650
|
|
Net income
|
8,027,857
|
|
17,030,957
|
|
1,267,311
|
|
190,949
|
|
|
|
|
|
|
|
|
|
Earnings per share:
|
|
|
|
|
|
|
|
|
Basic and diluted
|
0.31
|
|
0.66
|
|
0.05
|
|
0.01
|
|
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 nine- month period ended,
|
|
September 30, 2016
|
|
September 30, 2017
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
|
|
|
|
|
Revenues
|
1,619,208,219
|
|
1,528,016,205
|
|
230,230,410
|
|
Cost of goods sold
|
1,483,111,935
|
|
1,354,722,178
|
|
204,119,721
|
|
Gross profit
|
136,096,284
|
|
173,294,027
|
|
26,110,689
|
|
Operating expenses:
|
|
|
|
|
|
|
Selling
|
3,257,489
|
|
2,709,695
|
|
408,277
|
|
General and administrative
|
33,417,617
|
|
37,750,141
|
|
5,687,918
|
|
Total operating expenses
|
36,675,106
|
|
40,459,836
|
|
6,096,195
|
|
Operating income
|
99,421,178
|
|
132,834,191
|
|
20,014,494
|
|
|
|
|
|
|
|
Other (income) expenses:
|
|
|
|
|
|
|
Interest income
|
(3,124,844)
|
|
(2,936,698)
|
|
(442,480)
|
|
Interest expense
|
37,984,640
|
|
51,556,934
|
|
7,768,225
|
|
Others, net
|
351,588
|
|
(83,275)
|
|
(12,547)
|
|
Total other expense, net
|
35,211,384
|
|
48,536,961
|
|
7,313,198
|
|
Income before income taxes
|
64,209,794
|
|
84,297,230
|
|
12,701,296
|
|
Income tax expense
|
16,052,449
|
|
21,074,307
|
|
3,175,324
|
|
Net income
|
48,157,345
|
|
63,222,923
|
|
9,525,972
|
|
|
|
|
|
|
|
Earnings per share:
|
|
|
|
|
|
|
Basic and diluted
|
1.87
|
|
2.46
|
|
0.37
|
|
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-third-quarter-2017-unaudited-financial-results-300560251.html
SOURCE China New Borun Corporation