BEIJING, May 26, 2016 /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 first quarter ended
March 31, 2016.
Mr. Jinmiao Wang, Chairman and
Chief Executive Officer of Borun, commented on the results,
"Although our first quarter top line was softer due to a
shorter-than-planned production run, our gross margin expanded by
180 basis points to 12.2%, benefiting from a steeper decline in
corn price than that of the average selling price ("ASP") for
edible alcohol. Additionally, we repaid RMB310 million in our Corporate Bond at the end
of January and were able to cut interest expenses by nearly 50%,
fueling 60% year-over-year growth in net profits, with net margin
expanding to 5.2%, versus 2.8% in the same period of last
year."
"This February, the Shouguang government conducted a mandatory
safety check at all chemical manufacturing facilities in the area,
including the Company's Shouguang
facility. The safety check required the Company's Shouguang
facility to halt operations during inspection. Although our
facility successfully passed the safety check, the actual shut down
took longer than we had estimated, erasing more than 20% of the
first quarter total production schedule. For the second quarter of
2016, we continue to see lower corn prices in the spot market;
however, the ASP of edible alcohol and its by-products are also
dropping, as some edible alcohol producers aggressively expand
production in an attempt to capture greater short-term market
share. We anticipate this may cause some short-term pressure to the
overall ASP of edible alcohol, which may require us to temporarily
reduce production volume, as we remain committed to preserving
profitability," Mr. Wang concluded.
First Quarter 2016 Quick View
- Total revenue decreased 14.8% to RMB486.6 million ($75.3
million[1]) from RMB570.9
million in the first quarter of 2015.
- Gross profit increased 0.5% to RMB59.5
million ($9.2 million) from
RMB59.2 million in the first quarter
of 2015.
- Net income increased 60.0% to RMB25.3
million ($3.9 million) from
RMB15.8 million in the first quarter
of 2015.
- Basic and diluted earnings per American Depositary Share
("ADS") were RMB0.98 ($0.15) for the quarter ended March 31, 2016. Each ADS represents one of the
Company's ordinary shares.
First Quarter 2016 Financial Performance
For the first quarter of 2016, revenue decreased by 14.8%
year-over-year to RMB486.6 million
($75.3 million) from RMB570.9 million in the same period of 2015. The
decrease in revenue was mainly due to the temporary shutdown in the
Company's Shouguang facility as the local government conducted a
safety check for all the chemical manufacturing facilities in
Shouguang city, as well as a sharp decrease in ASP for edible
alcohol and its by-products.
Revenue breakdown by product lines is as follows:
- Revenue from edible alcohol decreased by 12.5% to RMB344.8 million ($53.4
million) in the first quarter of 2016, compared to
RMB394.2 million in the first quarter
of 2015. The sales volume of edible alcohol in the first quarter of
2016 decreased by 4.0% year-over-year to 73,746 tons, and the
average selling price of edible alcohol decreased by 8.9%
year-over-year to RMB4,675 per
ton.
- Revenue from DDGS Feed decreased by 28.7% to RMB88.4 million ($13.7
million) in the first quarter of 2016, compared to
RMB124.0 million in the first quarter
of 2015. The sales volume of DDGS Feed in the first quarter of 2016
decreased by 16.5% year-over-year to 56,356 tons, and the average
selling price decreased by 14.6% year-over-year to RMB1,569 per ton.
- Revenue from liquid carbon dioxide decreased by 20.7% to
RMB3.4 million ($0.5 million) in the first quarter of 2016,
compared to RMB4.3 million in the
first quarter of 2015. The sales volume of liquid carbon dioxide in
the first quarter of 2016 decreased by 11.4% year-over-year to
23,048 tons, and the average selling price decreased by 10.5%
year-over-year to RMB149 per
ton.
- Revenue from crude corn oil decreased by 25.1% to RMB28.7 million ($4.4
million) in the first quarter of 2016, compared to
RMB38.3 million in the first quarter
of 2015. The sales volume of crude corn oil in the first quarter of
2016 decreased by 23.5% year-over-year to 4,428 tons, and the
average selling price decreased by 2.0% year-over-year to
RMB6,479 per ton.
- Revenue from chlorinated polyethylene ("CPE") increased by
112.6% to RMB21.3 million
($3.3 million) in the first quarter
of 2016, compared to RMB10.0 million
in the first quarter of 2015. The sales volume of CPE in the first
quarter of 2016 increased by 113.6% year-over-year to 2,500 tons,
while the average selling price decreased by 0.5% year-over-year to
RMB8,506 per ton.
During the first quarter of 2016, gross profit increased by 0.5%
to RMB59.5 million ($9.2 million) from RMB59.2
million in the same period of 2015. Gross margin for the
first quarter of 2016 increased to 12.2%, from 10.4% in the same
period of 2015, which was primarily attributable to steeper
decrease in cost of corn than ASP of edible alcohol and its
by-products.
Operating income increased by 0.4% to RMB46.4 million ($7.2
million) in the first quarter of 2016, from RMB46.2 million in the same period of 2015,
primarily attributable to higher gross profit earned.
Selling expenses decreased by RMB0.1
million, or 9.8% to RMB1.1
million ($0.2 million) in the
first quarter of 2016, from RMB1.2
million in the same period of 2015.
General and administrative expenses increased by RMB0.2 million, or 1.9% to RMB12.0 million ($1.9
million) in the first quarter of 2016, from RMB11.8 million in the same period of 2015.
Income tax expenses in the first quarter of 2016 were
RMB8.4 million ($1.3 million), representing an effective tax rate
of 25.0%.
Net income increased by 60.0% to RMB25.3
million ($3.9 million) in the
first quarter of 2016, compared to RMB15.8
million in the same quarter of 2015. The increase in net
income was primarily attributable to the decrease in interest
expense of RMB12.1 million
($1.9 million), as the Company repaid
RMB310.0 million Corporate Bond in
the first quarter of 2016.
In the first quarter of 2016, basic and diluted earnings per
share and per ADS were RMB0.98
($0.15), and the Company had 25.7
million weighted average basic and diluted shares
outstanding.
As of March 31, 2016, cash and
bank deposits totaled RMB503.2
million ($77.9 million), an
increase of RMB7.6 million, compared
with RMB495.6 million as of
December 31, 2015. Cash flows
generated from operating activities for the first quarter of 2016
were RMB143.0 million ($22.1 million), compared with RMB14.1 million in the first quarter of 2015.
Financial Outlook
The Shouguang government's safety check for all the chemical
manufacturing facilities in Shouguang took longer than expected,
causing the Company's Shouguang facility to shut down for an
additional two weeks (approximately 16% of quarterly production
schedule) in April 2016.
Reflecting the shorter production run and a lower ASP for edible
alcohol and its by-products, the Company estimates that its revenue
for the second quarter of 2016 will be in the range of RMB460 million ($71.2
million) to RMB500 million ($77.4
million), a decrease of approximately 30.6% to a decrease of
36.2% over the same quarter of 2015.
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 Friday, May 27, 2016
(8:00 p.m. Beijing time on Friday,
May 27, 2016) to discuss the results and highlights from the
first quarter of 2016 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
Free:
|
800-819-0121
|
China Toll Free
(Mobile):
|
400-620-8038
|
Conference
ID:
|
13672678
|
A replay of the webcast will be accessible through June 4, 2016 on http://ir.chinanewborun.com or by
dialing:
United States toll
free:
|
1-855-452-5696
|
International:
|
61-2-8199-0299
|
Passcode
|
13672678
|
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
Wendy Sun
Phone: +86-10-8556-9033 (China)
+1-888-870-0798 (U.S.)
Email: wendy.sun@asiabridgegroup.com
[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 quarter ended March 31, 2016 were made at a rate of RMB6.4612
to USD1.00, the rate published by the People's Bank of China on
March 31, 2016. 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.
|
CHINA NEW BORUN
CORPORATION
UNAUDITED
CONSOLIDATED BALANCE SHEETS
|
|
December 31,
2015
|
|
March 31,
2016
|
|
RMB
|
|
RMB
|
|
US$
|
Assets
|
|
|
|
|
|
Cash
|
495,630,607
|
|
503,222,297
|
|
77,883,721
|
Trade accounts
receivable, net of allowance for doubtful accounts of nil and nil,
respectively
|
515,520,269
|
|
324,066,536
|
|
50,155,782
|
Held-to-maturity debt
securities
|
107,912,111
|
|
—
|
|
—
|
Inventories
|
438,841,092
|
|
733,749,330
|
|
113,562,392
|
Advance to
suppliers
|
344,998,183
|
|
81,124,300
|
|
12,555,610
|
Other
receivables
|
59,032,438
|
|
103,674,593
|
|
16,045,718
|
Prepaid
expenses
|
3,645,396
|
|
1,979,660
|
|
306,392
|
Total current
assets
|
1,965,580,096
|
|
1,747,816,716
|
|
270,509,615
|
Property, plant and
equipment, net
|
988,392,988
|
|
958,080,167
|
|
148,282,079
|
Land use right,
net
|
133,292,782
|
|
132,584,639
|
|
20,520,126
|
Intangible assets,
net
|
1,996,285
|
|
1,039,724
|
|
160,918
|
Deferred income tax
assets
|
1,755,197
|
|
1,755,197
|
|
271,652
|
Total
assets
|
3,091,017,348
|
|
2,841,276,443
|
|
439,744,390
|
|
|
|
|
|
|
Liabilities and
shareholders' equity
|
|
|
|
|
|
Trade accounts
payable
|
22,292,132
|
|
18,254,924
|
|
2,825,315
|
Accrued expenses and
other payables
|
80,201,926
|
|
50,139,791
|
|
7,760,136
|
Income taxes
payable
|
26,175,329
|
|
14,577,696
|
|
2,256,190
|
Short-term
borrowings
|
753,200,000
|
|
839,900,000
|
|
129,991,333
|
Current portion of
long-term borrowings
|
84,000,000
|
|
78,000,000
|
|
12,072,061
|
Bonds
Payable
|
320,000,000
|
|
10,000,000
|
|
1,547,700
|
Total current
liabilities
|
1,285,869,387
|
|
1,010,872,411
|
|
156,452,735
|
Total
liabilities
|
1,285,869,387
|
|
1,010,872,411
|
|
156,452,735
|
|
|
|
|
|
|
Shareholders'
equity
|
|
|
|
|
|
Ordinary share –
(December 31, 2015 and March 31, 2016: par value of RMB0.0068259,
25,725,000 shares issued and outstanding)
|
175,596
|
|
175,596
|
|
25,725
|
Additional paid-in
capital
|
468,132,187
|
|
468,132,187
|
|
72,452,824
|
Retained earnings –
appropriated
|
147,162,560
|
|
147,162,560
|
|
22,776,351
|
Retained earnings –
unappropriated
|
1,190,180,107
|
|
1,215,431,464
|
|
188,112,342
|
Accumulated other
comprehensive loss
|
(502,489)
|
|
(497,775)
|
|
(75,587)
|
Total shareholders'
equity
|
1,805,147,961
|
|
1,830,404,032
|
|
283,291,655
|
Total liabilities and
shareholders' equity
|
3,091,017,348
|
|
2,841,276,443
|
|
439,744,390
|
CHINA NEW BORUN
CORPORATION
UNAUDITED
CONSOLIDATED STATEMENTS OF INCOME
|
|
For the
three-month period ended,
|
|
March 31,
2015
|
|
December
31,
2015
|
|
March 31,
2016
|
|
(RMB)
|
|
(RMB)
|
|
(RMB)
|
|
(US$)
|
|
|
|
|
|
|
|
|
Revenues
|
570,925,219
|
|
699,055,308
|
|
486,582,235
|
|
75,308,338
|
Cost of goods
sold
|
511,689,155
|
|
631,477,965
|
|
427,070,211
|
|
66,097,662
|
Gross
profit
|
59,236,064
|
|
67,577,343
|
|
59,512,024
|
|
9,210,676
|
Operating
expenses:
|
|
|
|
|
|
|
|
Selling
|
1,202,672
|
|
1,212,615
|
|
1,084,968
|
|
167,921
|
General and
administrative
|
11,813,709
|
|
11,319,024
|
|
12,033,658
|
|
1,862,449
|
Impairment loss of
fixed assets
|
—
|
|
7,020,788
|
|
—
|
|
—
|
Total operating
expenses
|
13,016,381
|
|
19,552,427
|
|
13,118,626
|
|
2,030,370
|
Operating
income
|
46,219,683
|
|
48,024,916
|
|
46,393,398
|
|
7,180,306
|
|
|
|
|
|
|
|
|
Other (income)
expenses:
|
|
|
|
|
|
|
|
Government subsidy
|
—
|
|
(42,630,000)
|
|
—
|
|
—
|
Interest
income
|
(2,263,389)
|
|
(3,292,495)
|
|
(1,994,062)
|
|
(308,621)
|
Interest
expense
|
26,409,354
|
|
21,798,132
|
|
14,310,350
|
|
2,214,813
|
Others, net
|
1,025,752
|
|
1,268,630
|
|
408,635
|
|
63,244
|
Total other expense,
net
|
25,171,717
|
|
(22,855,733)
|
|
12,724,923
|
|
1,969,436
|
Income before income
taxes
|
21,047,966
|
|
70,880,649
|
|
33,668,475
|
|
5,210,870
|
Income tax
expense
|
5,261,992
|
|
17,720,161
|
|
8,417,118
|
|
1,302,717
|
Net income
|
15,785,974
|
|
53,160,488
|
|
25,251,357
|
|
3,908,153
|
|
|
|
|
|
|
|
|
Earnings per
share:
|
|
|
|
|
|
|
|
Basic and
diluted
|
0.61
|
|
2.07
|
|
0.98
|
|
0.15
|
Weighted average
ordinary shares outstanding:
|
|
|
|
|
|
|
|
Basic and
diluted
|
25,725,000
|
|
25,725,000
|
|
25,725,000
|
|
25,725,000
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/china-new-borun-announces-first-quarter-2016-unaudited-financial-results-300275655.html
SOURCE China New Borun Corporation