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 2017 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:
|
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:
|
8986459
|
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
|
|
International:
|
61-2-8199-0299
|
|
Passcode:
|
8986459
|
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 SHEETS
|
|
|
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 ($869,747) as of December
31, 2016
and September 30, 2017,
respectively)
|
293,169,451
|
|
294,227,574
|
|
43,332,079
|
|
Total
liabilities
|
1,281,839,231
|
|
1,253,250,309
|
|
188,830,676
|
|
|
|
|
|
|
|
Shareholders'
equity
|
|
|
|
|
|
|
|
|
|
|
|
|
Ordinary share -
par value of RMB0.0068259, 25,725,000
shares authorized, issued and outstanding
as of December
31, 2016 and September 30, 2017,
respectively
|
175,596
|
|
175,596
|
|
25,725
|
|
Additional paid-in
capital
|
468,132,187
|
|
468,132,187
|
|
70,534,766
|
|
Retained
earnings - appropriated
|
153,533,656
|
|
153,533,656
|
|
23,133,339
|
|
Retained
earnings - unappropriated
|
1,247,519,969
|
|
1,310,742,892
|
|
197,493,241
|
|
Accumulated other
comprehensive loss
|
(561,915)
|
|
(514,999)
|
|
(76,866)
|
|
|
Total shareholders'
equity
|
1,868,799,493
|
|
1,932,069,332
|
|
291,110,205
|
|
Total liabilities and
shareholders' equity
|
3,150,638,724
|
|
3,185,319,641
|
|
479,940,881
|
|
CHINA NEW BORUN
CORPORATION
|
|
UNAUDITED
CONSOLIDATED STATEMENTS OF INCOME
|
|
|
For the
three-month period ended,
|
|
September
30,
2016
|
|
June
30,
2017
|
|
September 30,
2017
|
|
RMB
|
|
RMB
|
|
RMB
|
|
US$
|
|
|
|
|
|
|
|
|
|
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