BEIJING, May 29, 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 first quarter ended
March 31, 2017.
Mr. Jinmiao Wang, Chairman and
Chief Executive Officer of Borun, commented on the results, "We are
pleased with our first quarter's significant accomplishments, as
revenue of RMB515.9 million
($74.8 million) comfortably exceeded
the high end of our previous revenue guidance while gross margin
and net income expanded to a five-year high of 17.6% and
RMB44.9 million ($6.5 million), respectively.
Benefiting from factory maintenance and upgrade that were
proactively conducted in the fourth quarter of 2016, we achieved
excellent utilization during the first quarter. Importantly, driven
by solid demand from a healthy baijiu industry, the average
selling price of edible alcohol decreased modestly by 1.1%
sequentially, while our cost of corn improved at a better rate
during the quarter, fueling our strong gross margin expansion.
By the end of first quarter of 2017, we completed our annual
corn pre-purchase plan of 600,000 tons, as we anticipate corn
prices will gradually increase during the non-harvest season. This
May, corn price has risen by over 10% compared to the corn price
level during the first quarter. We believe as corn prices increase
in this non-harvest season, we are well-positioned to benefit from
our corn sourcing advantage," Mr.
Wang concluded.
First Quarter 2017 Quick
View
- Total revenue increased 6.0% to RMB515.9
million ($74.8 million[1])
from RMB486.6 million in the first
quarter of 2016.
- Gross profit increased 52.4% to RMB90.7
million ($13.1 million) from
RMB59.5 million in the first quarter
of 2016.
- Net income increased 77.9% to RMB44.9
million ($6.5 million) from
RMB25.3 million in the first quarter
of 2016.
- Basic and diluted earnings per American Depositary Share
("ADS") were RMB1.75 ($0.25) for the quarter ended March 31, 2017. Each ADS represents one of the
Company's ordinary shares.
First Quarter 2017 Financial Performance
For the first quarter of 2017, revenue increased by 6.0%
year-over-year to RMB515.9 million
($74.8 million) from RMB486.6 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 3.2% to RMB355.9 million ($51.6
million) in the first quarter of 2017, compared to
RMB344.8 million in the first quarter
of 2016. The sales volume of edible alcohol in the first quarter of
2017 increased by 20.9% year-over-year to 89,128 tons, while the
average selling price of edible alcohol decreased by 14.6%
year-over-year to RMB3,994 per
ton.
- Revenue from DDGS Feed increased by 40.1% to RMB123.8 million ($17.9
million) in the first quarter of 2017, compared to
RMB88.4 million in the first quarter
of 2016. The sales volume of DDGS Feed in the first quarter of 2017
increased by 36.9% year-over-year to 77,146 tons, and the average
selling price increased by 2.3% year-over-year to RMB1,605 per ton.
- Revenue from liquid carbon dioxide increased by 61.7% to
RMB5.5 million ($0.8 million) in the first quarter of 2017,
compared to RMB3.4 million in the
first quarter of 2016. The sales volume of liquid carbon dioxide in
the first quarter of 2017 increased by 32.8% year-over-year to
30,604 tons, and the average selling price increased by 21.8%
year-over-year to RMB181 per
ton.
- Revenue from crude corn oil decreased by 44.3% to RMB16.0 million ($2.3
million) in the first quarter of 2017, compared to
RMB28.7 million in the first quarter
of 2016. The sharp decrease in revenue was mainly due to the
suspension of production of the crude corn oil at the Daqing
facility during the first quarter, as the Company is currently in
the process of renewing the facility's production authorization.
Revenue from crude corn oil in the first quarter of 2017 only
represented the sales made by the Shandong facility. The sales volume of crude
corn oil in the first quarter of 2017 decreased by 42.7%
year-over-year to 2,536 tons, and the average selling price
decreased by 2.8% year-over-year to RMB6,300 per ton.
- Revenue from CPE decreased by 31.3% to RMB14.6 million ($2.1
million) in the first quarter of 2017, compared to
RMB21.3 million in the first quarter
of 2016. The sales volume of CPE in the first quarter of 2017
decreased by 22.2% year over year to 1,944 tons, and the average
selling price decreased by 11.6% to RMB7,515 per ton. The sharp decrease in sales
volume of CPE was mainly due to the temporary shutdown for
maintenance and upgrades in February, and the production line was
back into production in March
2017.
During the first quarter of 2017, gross profit increased by
52.4% to RMB90.7 million
($13.1 million) from RMB59.5 million in the same period of 2016. Gross
margin for the first quarter of 2017 increased to 17.6%, from 12.2%
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 64.2% to RMB76.2 million ($11.0
million) in the first quarter of 2017, from RMB46.4 million in the same period of 2016,
primarily attributable to higher gross profit earned.
Selling expenses decreased by RMB0.2
million, or 15.4% to RMB0.9
million ($0.1 million) in the
first quarter of 2017, from RMB1.1
million in the same period of 2016.
General and administrative expenses increased by RMB1.6 million, or 13.3% to RMB13.6 million ($2.0
million) in the first quarter of 2017, from RMB12.0 million in the same period of 2016.
Income tax expenses in the first quarter of 2017 were
RMB15.0 million ($2.2 million), representing an effective tax rate
of 25.0%.
Net income increased by 77.9% to RMB44.9
million ($6.5 million) in the
first quarter of 2017, compared to RMB25.3
million in the same quarter of 2016. In the first quarter of
2017, basic and diluted earnings per share and per ADS were
RMB1.75 ($0.25), and the Company had 25.7 million
weighted average basic and diluted shares outstanding.
As of March 31, 2017, cash and
bank deposits of RMB956.7 million
($138.7 million) increased by
RMB161.4 million, compared with
RMB795.3 million as of December 31, 2016. Cash flows generated from
operating activities for the first quarter of 2017 amounted to
RMB23.9 million ($3.5 million), compared with RMB138.2 million in the first quarter of 2016.
The decrease in cash from generated from operations was mainly
because the Company pre-purchased more corn during the quarter,
which should be sufficient to meet the Company's production needs
during the non-harvest season in 2017.
Financial Outlook
Reflecting the solid demand for edible alcohol and its
by-products, the Company anticipates strong sales volume and high
capacity utilization. However, as the price of edible alcohol and
its by-products will likely decrease on a year-over-year basis due
to lower corn cost. The Company estimates that its revenue for the
second quarter of 2017 will be in the range of RMB535 million ($77.5
million) to RMB560 million ($81.2
million), an increase of approximately 0.9% to an increase
of approximately 5.6% 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 Tuesday,
May 30, 2017 (8:00 p.m.
Beijing time on Tuesday, May 30, 2017) to discuss the
results and highlights from the first 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
Free:
|
800-819-0121
|
China Toll Free
(Mobile):
|
400-620-8038
|
Conference
ID:
|
21993671
|
A replay of the webcast will be accessible through June 7, 2017 on http://ir.chinanewborun.com or by
dialing:
United States toll
free:
|
1-855-452-5696
|
International:
|
61-2-8199-0299
|
Passcode
|
21993671
|
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,
2016
|
|
March 31,
2017
|
|
RMB
|
|
RMB
|
|
US$
|
Assets
|
|
|
|
|
|
Cash
|
795,329,065
|
|
956,698,426
|
|
138,666,013
|
Trade accounts
receivable, net of allowance for doubtful accounts of RMB nil and
RMB nil (US$ nil), as of December 31, 2016 and March 31, 2017,
respectively
|
415,621,572
|
|
370,477,024
|
|
53,697,770
|
Inventories
|
602,628,839
|
|
925,943,059
|
|
134,208,262
|
Advance to
suppliers
|
245,977,475
|
|
274,264
|
|
39,752
|
Other
receivables
|
81,055,814
|
|
129,867,143
|
|
18,823,235
|
Prepaid
expenses
|
3,325,225
|
|
2,121,422
|
|
307,484
|
Total current
assets
|
2,143,937,990
|
|
2,385,381,338
|
|
345,742,516
|
Property, plant and
equipment, net
|
876,240,529
|
|
848,241,813
|
|
122,946,069
|
Land use right,
net
|
130,460,205
|
|
129,752,061
|
|
18,806,554
|
Total
assets
|
3,150,638,724
|
|
3,363,375,212
|
|
487,495,139
|
|
|
|
|
|
|
Liabilities and
shareholders' equity
|
|
|
|
|
|
Trade accounts
payable
|
23,643,261
|
|
29,203,612
|
|
4,232,837
|
Accrued expenses and
other payables
|
47,614,155
|
|
52,625,658
|
|
7,627,681
|
Income taxes
payable
|
12,242,364
|
|
25,115,562
|
|
3,640,306
|
Short-term
borrowings
|
905,170,000
|
|
1,049,170,000
|
|
152,069,050
|
Total current
liabilities
|
988,669,780
|
|
1,156,114,832
|
|
167,569,874
|
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 RMB6,470,779 ($937,889) as of December 31, 2016
and March 31, 2017, respectively)
|
293,169,451
|
|
293,529,221
|
|
42,544,783
|
Total
liabilities
|
1,281,839,231
|
|
1,449,644,053
|
|
210,114,657
|
|
|
|
|
|
|
Shareholders'
equity
|
|
|
|
|
|
Ordinary share
– par value of RMB0.0068259, 25,725,000 shares authorized,
issued and outstanding as of December 31, 2016 and March 31, 2017,
respectively
|
175,596
|
|
175,596
|
|
25,725
|
Additional paid-in
capital
|
468,132,187
|
|
468,132,187
|
|
67,852,128
|
Retained earnings –
appropriated
|
153,533,656
|
|
153,533,656
|
|
22,253,512
|
Retained earnings –
unappropriated
|
1,247,519,969
|
|
1,292,444,624
|
|
187,329,820
|
Accumulated other
comprehensive loss
|
(561,915)
|
|
(554,904)
|
|
(80,703)
|
|
|
|
|
|
|
Total shareholders'
equity
|
1,868,799,493
|
|
1,913,731,159
|
|
277,380,482
|
Total liabilities and
shareholders' equity
|
3,150,638,724
|
|
3,363,375,212
|
|
487,495,139
|
CHINA NEW BORUN
CORPORATION
UNAUDITED
CONSOLIDATED STATEMENTS OF INCOME
|
|
|
|
For the
three-month period ended,
|
|
March
31,
2016
|
|
December
31,
2016
|
|
March 31,
2017
|
|
RMB
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
|
|
|
|
|
|
Revenues
|
486,582,235
|
|
513,471,966
|
|
515,909,331
|
|
74,777,054
|
Cost of goods
sold
|
427,070,211
|
|
467,502,403
|
|
425,204,202
|
|
61,630,050
|
Gross
profit
|
59,512,024
|
|
45,969,563
|
|
90,705,129
|
|
13,147,004
|
Operating
expenses:
|
|
|
|
|
|
|
|
Selling
|
1,084,968
|
|
907,214
|
|
918,341
|
|
133,106
|
General and
administrative
|
12,033,658
|
|
14,996,132
|
|
13,631,619
|
|
1,975,797
|
Total operating
expenses
|
13,118,626
|
|
15,903,346
|
|
14,549,960
|
|
2,108,903
|
Operating
income
|
46,393,398
|
|
30,066,217
|
|
76,155,169
|
|
11,038,101
|
|
|
|
|
|
|
|
|
Other (income)
expenses:
|
|
|
|
|
|
|
|
Interest
income
|
(1,994,062)
|
|
(919,059)
|
|
(755,127)
|
|
(109,450)
|
Interest
expense
|
14,738,258
|
|
14,256,960
|
|
17,044,745
|
|
2,470,504
|
Others, net
|
(19,273)
|
|
(4,009,834)
|
|
(33,989)
|
|
(4,926)
|
Total other expense,
net
|
12,724,923
|
|
9,328,067
|
|
16,255,629
|
|
2,356,128
|
Income before income
taxes
|
33,668,475
|
|
20,738,150
|
|
59,899,540
|
|
8,681,973
|
Income tax
expense
|
8,417,118
|
|
5,184,537
|
|
14,974,885
|
|
2,170,493
|
Net income
|
25,251,357
|
|
15,553,613
|
|
44,924,655
|
|
6,511,480
|
|
|
|
|
|
|
|
|
Earnings per
share:
|
|
|
|
|
|
|
|
Basic and
diluted
|
0.98
|
|
0.60
|
|
1.75
|
|
0.25
|
Weighted average
ordinary shares outstanding:
|
|
|
|
|
|
|
|
Basic and
diluted
|
25,725,000
|
|
25,725,000
|
|
25,725,000
|
|
25,725,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 March 31, 2017 were made at a rate of
RMB6.8993 to USD1.00, the rate published by the People's Bank
of China on March 31, 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.
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/china-new-borun-announces-first-quarter-2017-unaudited-financial-results-300465044.html
SOURCE China New Borun Corporation