BEIJING, Aug. 17, 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 second quarter ended
June 30, 2016.
Mr. Jinmiao Wang, Chairman and
Chief Executive Officer of Borun, commented on the results,
"Despite a lower average selling price ("ASP") of edible alcohol,
we exceeded our previous revenue guidance for the second quarter of
2016, driven by our better-than-expected utilization of 94%. The
sharp decline in ASP, while partially negated by lower corn costs,
compressed our second quarter gross margin to 8.3%."
"Demand for edible alcohol from the
baijiu industry continues to gain strength for the fourth
consecutive quarter, driving greater industry-wide sales volume.
Also, during the second quarter, we already completed ahead of
schedule our annual maintenance that historically took place in the
summer, and as such, we anticipate strong utilization and solid
sales volume for the third quarter of 2016," Mr. Wang
concluded.
Second Quarter 2016 Quick View
- Total revenue decreased 26.4% to RMB530.4 million ($80.0
million[1]) from RMB720.6
million in the second quarter of 2015.
- Gross profit decreased 49.8% to RMB44.0
million ($6.6 million) from
RMB87.7 million in the second quarter
of 2015.
- Net income decreased 61.0% to RMB14.9
million ($2.2 million) from
RMB38.1 million in the second quarter
of 2015.
- Basic and diluted earnings per American Depositary Share
("ADS") were RMB0.58 ($0.09) for the quarter ended June 30, 2016. 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 quarter ended June 30, 2016 were made at a rate of
RMB6.6312 to USD1.00, the rate published by the People's Bank of
China on June 30, 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.
|
Second Quarter 2016 Financial Performance
For the second quarter of 2016, revenue decreased by 26.4%
year-over-year to RMB530.4 million
($80.0 million) from RMB720.6 million in the same period of 2015. The
decrease in revenue was mainly due to a sharp decrease in ASP for
edible alcohol and its by-products, and decline in sales from crude
corn oil due to a temporary shut-down for the crude corn oil
facility in Daqing.
Revenue breakdown by product lines is as
follows:
- Revenue from edible alcohol decreased by 23.8% to RMB360.9 million ($54.4
million) in the second quarter of 2016, compared to
RMB473.8 million in the second
quarter of 2015. The sales volume of edible alcohol in the second
quarter of 2016 decreased by 9.5% year-over-year to 84,086 tons,
and the average selling price of edible alcohol decreased by 15.9%
year-over-year to RMB4,292 per
ton.
- Revenue from DDGS Feed decreased by 24.7% to RMB120.4 million ($18.2
million) in the second quarter of 2016, compared to
RMB159.9 million in the second
quarter of 2015. The sales volume of DDGS Feed in the second
quarter of 2016 decreased by 2.2% year-over-year to 80,631 tons,
and the average selling price decreased by 23.0% year-over-year to
RMB1,493 per ton.
- Revenue from liquid carbon dioxide increased by 3.8% to
RMB5.5 million ($0.8 million) in the second quarter of 2016,
compared to RMB5.3 million in the
second quarter of 2015. The sales volume of liquid carbon dioxide
in the second quarter of 2016 decreased by 7.5% year-over-year to
32,226 tons, and the average selling price increased by 13.4%
year-over-year to RMB171 per
ton.
- Revenue from crude corn oil decreased by 61.4% to RMB18.1 million ($2.7
million) in the second quarter of 2016, compared to
RMB46.9 million in the second quarter
of 2015. It was mainly due to the temporary shut down for the crude
corn oil facility in Daqing during the second quarter. The sales
volume of crude corn oil in the second quarter of 2016 decreased by
61.1% year-over-year to 2,810 tons, and the average selling price
decreased by 0.6% year-over-year to RMB6,443 per ton.
- Revenue from chlorinated polyethylene ("CPE") decreased by
27.0% to RMB25.4 million
($3.8 million) in the second quarter
of 2016, compared to RMB34.8 million
in the second quarter of 2015. The sales volume of CPE in the
second quarter of 2016 decreased by 23.9% year-over-year to 3,100
tons, while the average selling price decreased by 4.0%
year-over-year to RMB8,205 per
ton.
During the second quarter of 2016, gross profit decreased by
49.8% to RMB44.0 million
($6.6 million) from RMB87.7 million in the same period of 2015. Gross
margin for the second quarter of 2016 decreased to 8.3%, from 12.2%
in the same period of 2015, which was primarily due to steeper
decrease in ASP of edible alcohol and its by-products than the cost
of corn.
Operating income decreased by 55.9% to RMB31.9 million ($4.8
million) in the second quarter of 2016, from RMB72.3 million in the same period of 2015,
primarily due to lower gross profit earned.
Selling expenses decreased by RMB0.7
million, or 35.4% to RMB1.2
million ($0.2 million) in the
second quarter of 2016, from RMB1.9
million in the same period of 2015.
General and administrative expenses decreased by RMB2.6 million, or 19.2% to RMB10.9 million ($1.6
million) in the second quarter of 2016, from RMB13.5 million in the same period of 2015.
Income tax expenses in the second quarter of 2016 were
RMB5.0 million ($0.7 million), representing an effective tax rate
of 25.0%.
Net income decreased by 61.0% to RMB14.9
million ($2.2 million) in the
second quarter of 2016, compared to RMB38.1
million in the same quarter of 2015. The decrease in net
income was primarily due to the decrease in revenue and lower gross
margin during the second quarter.
In the second quarter of 2016, basic and diluted earnings per
share and per ADS were RMB0.58
($0.09), and the Company had 25.7
million weighted average basic and diluted shares
outstanding.
As of June 30, 2016, cash and bank
deposits totaled RMB613.9 million
($92.6 million), an increase of
RMB118.3 million, compared with
RMB495.6 million as of December 31, 2015. Cash flows generated from
operating activities for the second quarter of 2016 were
RMB204.6 million ($30.9 million), compared with cash outflow of
RMB59.0 million in the second quarter
of 2015.
Financial Outlook
Reflecting a lower ASP for edible alcohol and its by-products,
the Company estimates that its revenue for the third quarter of
2016 will be in the range of RMB550
million ($82.9 million) to RMB600
million ($90.5 million), a
decrease of approximately 9.3% to a decrease of 16.8% 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 Thursday, August 18,
2016 (8:00 p.m. Beijing time on Thursday, August 18, 2016) to discuss the results
and highlights from the second 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: 61565842
A replay of the webcast will be accessible through June 26, 2016 on http://ir.chinanewborun.com or
by dialing:
United States toll free:
1-855-452-5696
International: 61-2-8199-0299
Passcode: 61565842
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
CHINA NEW BORUN
CORPORATION
UNAUDITED
CONSOLIDATED BALANCE SHEETS
|
|
|
December 31,
2015
|
|
June 30,
2016
|
|
RMB
|
|
RMB
|
|
US$
|
Assets
|
|
|
|
|
|
Cash
|
495,630,607
|
|
613,947,197
|
|
92,584,630
|
Trade accounts
receivable, net of allowance for doubtful
accounts of nil and nil, respectively
|
515,520,269
|
|
332,064,828
|
|
50,076,129
|
Held-to-maturity debt
securities
|
107,912,111
|
|
—
|
|
—
|
Inventories
|
438,841,092
|
|
692,559,243
|
|
104,439,505
|
Advance to
suppliers
|
344,998,183
|
|
538,319
|
|
81,180
|
Other
receivables
|
59,032,438
|
|
86,758,385
|
|
13,083,360
|
Prepaid
expenses
|
3,645,396
|
|
1,419,442
|
|
214,055
|
Total current
assets
|
1,965,580,096
|
|
1,727,287,414
|
|
260,478,859
|
Property, plant and
equipment, net
|
988,392,988
|
|
927,931,996
|
|
139,934,250
|
Land use right,
net
|
133,292,782
|
|
131,876,494
|
|
19,887,274
|
Intangible assets,
net
|
1,996,285
|
|
83,163
|
|
12,541
|
Deferred income tax
assets
|
1,755,197
|
|
1,755,197
|
|
264,688
|
Total
assets
|
3,091,017,348
|
|
2,788,934,264
|
|
420,577,612
|
|
|
|
|
|
|
Liabilities and
shareholders' equity
|
|
|
|
|
|
Trade accounts
payable
|
22,292,132
|
|
48,144,929
|
|
7,260,364
|
Accrued expenses and
other payables
|
80,201,926
|
|
49,770,101
|
|
7,505,444
|
Income taxes
payable
|
26,175,329
|
|
11,537,071
|
|
1,739,816
|
Short-term
borrowings
|
753,200,000
|
|
762,200,000
|
|
114,941,489
|
Current portion of
long-term borrowings
|
84,000,000
|
|
72,000,000
|
|
10,857,763
|
Bonds
Payable
|
320,000,000
|
|
—
|
|
—
|
Total current
liabilities
|
1,285,869,387
|
|
943,652,101
|
|
142,304,876
|
Total
liabilities
|
1,285,869,387
|
|
943,652,101
|
|
142,304,876
|
|
|
|
|
|
|
Shareholders'
equity
|
|
|
|
|
|
Ordinary share –
(December 31, 2015 and June 30, 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
|
|
70,595,396
|
Retained earnings –
appropriated
|
147,162,560
|
|
147,162,560
|
|
22,192,448
|
Retained earnings –
unappropriated
|
1,190,180,107
|
|
1,230,309,595
|
|
185,533,477
|
Accumulated other
comprehensive loss
|
(502,489)
|
|
(497,775)
|
|
(74,310)
|
Total shareholders'
equity
|
1,805,147,961
|
|
1,845,282,163
|
|
278,272,736
|
Total liabilities and
shareholders' equity
|
3,091,017,348
|
|
2,788,934,264
|
|
420,577,612
|
CHINA NEW BORUN
CORPORATION
UNAUDITED CONSOLIDATED STATEMENTS OF INCOME
|
|
|
For the
three-month period ended,
|
|
June
30, 2015
|
|
March 31,
2016
|
|
June 30,
2016
|
|
(RMB)
|
|
(RMB)
|
|
(RMB)
|
|
(US$)
|
|
|
|
|
|
|
|
|
Revenues
|
720,638,443
|
|
486,582,235
|
|
530,379,367
|
|
79,982,412
|
Cost of goods
sold
|
632,954,711
|
|
427,070,211
|
|
486,353,803
|
|
73,343,257
|
Gross
profit
|
87,683,732
|
|
59,512,024
|
|
44,025,564
|
|
6,639,155
|
Operating
expenses:
|
|
|
|
|
|
|
|
Selling
|
1,866,280
|
|
1,084,968
|
|
1,206,445
|
|
181,935
|
General and
administrative
|
13,506,488
|
|
12,033,658
|
|
10,910,620
|
|
1,645,346
|
Total operating
expenses
|
15,372,768
|
|
13,118,626
|
|
12,117,065
|
|
1,827,281
|
Operating
income
|
72,310,964
|
|
46,393,398
|
|
31,908,499
|
|
4,811,874
|
|
|
|
|
|
|
|
|
Other (income)
expenses:
|
|
|
|
|
|
|
|
Interest
income
|
(4,017,821)
|
|
(1,994,062)
|
|
(467,853)
|
|
(70,553)
|
Interest
expense
|
24,018,082
|
|
14,310,350
|
|
12,563,890
|
|
1,894,663
|
Others, net
|
1,490,237
|
|
408,635
|
|
(25,047)
|
|
(3,777)
|
Total other expense
(income), net
|
21,490,498
|
|
12,724,923
|
|
12,070,990
|
|
1,820,333
|
Income before income
taxes
|
50,820,466
|
|
33,668,475
|
|
19,837,509
|
|
2,991,541
|
Income tax
expense
|
12,705,116
|
|
8,417,118
|
|
4,959,378
|
|
747,885
|
Net income
|
38,115,350
|
|
25,251,357
|
|
14,878,131
|
|
2,243,656
|
|
|
|
|
|
|
|
|
Earnings per
share:
|
|
|
|
|
|
|
|
Earnings per
share:
|
|
|
|
|
|
|
|
Basic and
diluted
|
1.48
|
|
0.98
|
|
0.58
|
|
0.09
|
Weighted average
ordinary shares
outstanding:
|
|
|
|
|
|
|
|
Basic and diluted
|
25,725,000
|
|
25,725,000
|
|
25,725,000
|
|
25,725,000
|
|
|
|
|
|
|
|
|
CHINA NEW BORUN
CORPORATION
UNAUDITED
CONSOLIDATED STATEMENTS OF INCOME
|
|
|
For the
six-month period ended,
|
|
June 30,
2015
|
|
June 30,
2016
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
|
|
|
|
Revenues
|
1,291,563,662
|
|
1,016,961,602
|
|
153,360,116
|
Cost of goods
sold
|
1,144,643,866
|
|
913,424,014
|
|
137,746,413
|
Gross
profit
|
146,919,796
|
|
103,537,588
|
|
15,613,703
|
Operating
expenses:
|
|
|
|
|
|
Selling
|
3,068,952
|
|
2,291,413
|
|
345,550
|
General and
administrative
|
25,320,197
|
|
22,944,278
|
|
3,460,049
|
Total operating
expenses
|
28,389,149
|
|
25,235,691
|
|
3,805,599
|
Operating
income
|
118,530,647
|
|
78,301,897
|
|
11,808,104
|
|
|
|
|
|
|
Other (income)
expenses:
|
|
|
|
|
|
Interest
income
|
(6,281,210)
|
|
(2,461,915)
|
|
(371,262)
|
Interest
expense
|
50,427,436
|
|
26,874,240
|
|
4,052,696
|
Others, net
|
2,515,989
|
|
383,588
|
|
57,846
|
Total other expense,
net
|
46,662,215
|
|
24,795,913
|
|
3,739,280
|
Income before income
taxes
|
71,868,432
|
|
53,505,984
|
|
8,068,824
|
Income tax
expense
|
17,967,108
|
|
13,376,496
|
|
2,017,206
|
Net income
|
53,901,324
|
|
40,129,488
|
|
6,051,618
|
|
|
|
|
|
|
Earnings per
share:
|
|
|
|
|
|
Basic and
diluted
|
2.10
|
|
1.56
|
|
0.24
|
Weighted average
ordinary shares
outstanding:
|
|
|
|
|
|
Basic and
diluted
|
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-second-quarter-2016-unaudited-financial-results-300314897.html
SOURCE China New Borun Corporation