Mr.
Fourth Quarter 2013 Quick View
- Total revenue increased 30.7% to
RMB657.8 million ($107.9 million [1]) fromRMB503.4 million in the fourth quarter of 2012. - Gross profit increased 44.3% to
RMB78.6 million ($12.9 million ) fromRMB54.4 million in the fourth quarter of 2012. - Net income increased 41.1% to
RMB30.5 million ($5.0 million ) fromRMB21.6 million in the fourth quarter of 2012. - Basic and diluted earnings per American Depositary Share ("ADS") were
RMB1.18 ($0.19) for the quarter endedDecember 31, 2013 . 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 December 31, 2013 were made at a rate of RMB6.0969 to USD1.00, the rate published by the People's Bank of China on December 31, 2013. 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. |
Mr. Wang continued, "Heading into 2014, we remain cautiously optimistic on our edible alcohol business, as the baijiu market further rationalizes supply and demand. We will continue to optimize our strong sourcing capability and strive to achieve greater operating leverage in our core business. At the same time, we are excited about ramping up sales and production of our newly-introduced CPE and foam insulation product lines. We're happy the construction of our new plants were completed on budget and practically without any glitches. We anticipate material contributions from the new business beginning in the second half of 2014."
Fourth Quarter 2013 Financial Performance
For the fourth quarter of 2013, revenue increased by 30.7% year-over-year to
Revenue breakdown by product line is as follows:
- Revenue from edible alcohol increased by 26.0% to
RMB435.4 million ($71.4 million ) in the fourth quarter of 2013, compared toRMB345.7 million in the fourth quarter of 2012. The sales volume of edible alcohol in the fourth quarter of 2013 increased by 29.6% year-over-year to 82,769 tons, primarily due to higher production volume as the market demand for edible alcohol temporarily recovered during this quarter. The production volume increased by 30.5% year-over-year to 81,810 tons in the fourth quarter of 2013. The average selling price decreased by 2.8% year-over-year toRMB5,260 per ton. - Revenue from DDGS feed increased by 44.0% to
RMB152.1 million ($25.0 million ) in the fourth quarter of 2013, compared toRMB105.7 million in the fourth quarter of 2012. The sales volume of DDGS feed in the fourth quarter of 2013 increased by 25.9% year-over-year to 67,905 tons, while the average selling price increased by 14.4% year-over-year toRMB2,240 per ton. - Revenue from liquid carbon dioxide increased by 9.0% to
RMB11.9 million ($1.9 million ) in the fourth quarter of 2013, compared toRMB10.9 million in the fourth quarter of 2012. The sales volume of liquid carbon dioxide in the fourth quarter of 2013 increased by 21.5% year-over-year to 28,486 tons, and the average selling price decreased by 10.3% year-over-year toRMB416 per ton. - Revenue from crude corn oil increased by 27.3% to
RMB52.4 million ($8.6 million ) in the fourth quarter of 2013, compared toRMB41.2 million in the fourth quarter of 2012. The sales volume of crude corn oil in the fourth quarter of 2013 increased by 29.8% year-over-year to 6,930 tons, and the average selling price decreased by 1.9% year-over-year toRMB7,563 per ton. - We began generating revenue from our newly-completed CPE and foam insulation plants during this quarter. Revenue from CPE was
RMB5.0 million ($0.8 million ) in the fourth quarter of 2013, and the sales volume was 553 tons at price per ton ofRMB9,058 . Revenue from foam insulation wasRMB0.4 million ($0.1 million ) in the fourth quarter of 2013, and the sales volume was 375 cubic meters at price per cubic meter ofRMB1,101 .
During the fourth quarter of 2013, gross profit increased by 44.3% to
Income from operations increased by 52.8% to
Selling expenses slightly increased by
General and administrative expenses increased by
Interest expense increased by
Income tax expenses in the fourth quarter of 2013 were
Net income increased by 41.1% to
As of
Full Year 2013 Financial Performance
For the year ended
Financial Outlook
The Company estimates that its revenue for the first quarter of 2014 will be in the range of
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
United States Toll Free: |
1-866-519-4004 |
US Toll/International: |
1-845-675-0437 |
Hong Kong Toll Free: |
800-930-346 |
Hong Kong Toll: |
852-2475-0994 |
China Toll Free: |
800-819-0121 |
China Toll Free (Mobile): |
400-620-8038 |
Conference ID: |
34973259 |
A replay of the webcast will be accessible through
United States toll free: |
1-855-452-5696 |
International: |
61-2-8199-0299 |
Passcode |
34973259 |
About
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
Phone: +86-10-8556-9033 (
+1-888-870-0798 (U.S.)
Email: wendy.sun@asiabridgegroup.com
CHINA NEW BORUN CORPORATION UNAUDITED CONSOLIDATED BALANCE SHEETS
|
|||||
December 31, 2012 |
December 31, 2013 |
||||
RMB |
RMB |
US$ |
|||
Assets |
|||||
Current Assets |
|||||
Cash |
610,692,645 |
521,270,799 |
85,497,679 |
||
Restricted cash |
75,000,000 |
42,040,667 |
6,895,417 |
||
Trade accounts receivable, net of allowance for doubtful accounts of nil and nil, as of December 31, 2012 and 2013, respectively |
302,779,899 |
358,463,468 |
58,794,382 |
||
Available-for-sale securities |
— |
16,783,869 |
2,752,853 |
||
Inventories |
138,280,880 |
353,206,120 |
57,932,084 |
||
Advance to suppliers |
67,828,505 |
276,245,034 |
45,309,097 |
||
Other receivables |
34,880,868 |
58,510,165 |
9,596,707 |
||
Prepaid expenses |
6,039,816 |
3,773,980 |
619,000 |
||
Deferred income tax assets |
— |
248,712 |
40,793 |
||
Total current assets |
1,235,502,613 |
1,630,542,814 |
267,438,012 |
||
Property, plant and equipment, net |
1,047,934,015 |
1,143,722,628 |
187,590,846 |
||
Land use right, net |
56,432,887 |
138,944,251 |
22,789,328 |
||
Intangible assets, net |
13,475,014 |
9,648,771 |
1,582,570
|
||
Long-term deferred expenses |
— |
10,697,712 |
1,754,615 |
||
Other non-current assets |
89,648,135 |
— |
— |
||
Total assets |
2,442,992,664 |
2,933,556,176 |
481,155,371 |
||
Liabilities and shareholders' equity |
|||||
Current Liabilities |
|||||
Trade accounts payable |
12,605,132 |
29,272,232 |
4,801,166 |
||
Accrued expenses and other payables |
63,942,736 |
106,574,084 |
17,480,045 |
||
Income taxes payable |
6,661,771 |
9,119,258 |
1,495,720 |
||
Short-term borrowings |
842,200,000 |
620,200,000 |
101,723,827 |
||
Current portion of long-term borrowings |
— |
24,000,000 |
3,936,427 |
||
Total current liabilities |
925,409,639 |
789,165,574 |
129,437,185 |
||
Long-term borrowings |
— |
48,000,000 |
7,872,853 |
||
Bonds Payable
|
— |
500,000,000 |
82,008,890 |
||
Total liabilities |
925,409,639 |
1,337,165,574 |
219,318,928 |
||
Shareholders' equity |
|||||
Ordinary share – (December 31, 2012 and 2013: 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 |
76,782,002 |
||
Retained earnings – appropriated |
118,401,996 |
126,356,029 |
20,724,635 |
||
Retained earnings – unappropriated |
931,347,064 |
1,002,921,340 |
164,496,931 |
||
Accumulated other comprehensive loss |
(473,818) |
(1,194,550) |
(192,850) |
||
Total shareholders' equity |
1,517,583,025 |
1,596,390,602 |
261,836,443 |
||
Total liabilities and shareholders' equity |
2,442,992,664 |
2,933,556,176 |
481,155,371 |
CHINA NEW BORUN CORPORATION UNAUDITED CONSOLIDATED STATEMENTS OF INCOME
|
|||||||
For the three-month period ended, |
|||||||
December 31, 2012 |
September 30, 2013 |
December 31, 2013 |
|||||
(RMB) |
(RMB) |
(RMB) |
(US$) |
||||
Revenues |
503,375,028 |
518,001,425 |
657,782,689 |
107,888,056 |
|||
Cost of goods sold |
448,934,524 |
469,332,820 |
579,206,629 |
95,000,185 |
|||
Gross profit |
54,440,504 |
48,668,605 |
78,576,060 |
12,887,871 |
|||
Operating expenses: |
|||||||
Selling |
1,286,558 |
1,213,777 |
1,387,878 |
227,637 |
|||
General and administrative |
10,238,935 |
10,298,164 |
11,625,578 |
1,906,801 |
|||
Total operating expenses |
11,525,493 |
11,511,941 |
13,013,456 |
2,134,438 |
|||
Income from operations |
42,915,011 |
37,156,664 |
65,562,604 |
10,753,433 |
|||
Other (income) expenses: |
|||||||
Interest income |
(438,967) |
(1,296,587) |
(937,588) |
(153,781) |
|||
Interest expense |
14,371,023 |
24,076,289 |
25,226,848 |
4,137,652 |
|||
Others, net |
194,026 |
(23,410) |
659,948 |
108,243 |
|||
Total other expense, net |
14,126,082 |
22,756,292 |
24,949,208 |
4,092,114 |
|||
Income before income taxes |
28,788,929 |
14,400,372 |
40,613,396 |
6,661,319 |
|||
Income tax expenses: |
|||||||
Current |
7,197,232 |
3,600,094 |
10,156,353 |
1,665,822 |
|||
Deferred |
— |
— |
— |
— |
|||
Income tax expenses |
7,197,232 |
3,600,094 |
10,156,353 |
1,665,822 |
|||
Net income |
21,591,697 |
10,800,278 |
30,457,043 |
4,995,497 |
|||
Earnings per share: |
|||||||
Basic and diluted |
0.84 |
0.42 |
1.18 |
0.19 |
|||
Weighted average ordinary shares outstanding: |
|||||||
Basic and diluted |
25,725,000 |
25,725,000 |
25,725,000 |
25,725,000 |
|||
CHINA NEW BORUN CORPORATION UNAUDITED CONSOLIDATED STATEMENTS OF INCOME |
|||||
For the year ended, |
|||||
December 31, 2012 |
December 31, 2013 |
||||
(RMB) |
(RMB) |
(US$) |
|||
Revenues |
2,587,441,751 |
2,254,970,152 |
369,855,197 |
||
Cost of goods sold |
2,240,600,096 |
2,009,229,511 |
329,549,363 |
||
Gross profit |
346,841,655 |
245,740,641 |
40,305,834 |
||
Operating expenses: |
|||||
Selling |
4,566,943 |
5,160,405 |
846,398 |
||
General and administrative |
49,845,321 |
41,645,512 |
6,830,604 |
||
Total operating expenses |
54,412,264 |
46,805,917 |
7,677,002 |
||
Income from operations |
292,429,391 |
198,934,724 |
32,628,832 |
||
Other (income) expenses: |
|||||
Interest income |
(1,364,810) |
(3,850,272) |
(631,513) |
||
Interest expense |
42,767,789 |
95,601,270 |
15,680,308 |
||
Others, net |
157,807 |
505,384 |
82,892 |
||
Total other expense, net |
41,560,786 |
92,256,382 |
15,131,687 |
||
Income before income taxes |
250,868,605 |
106,678,342 |
17,497,145
|
||
Income tax expenses:
|
|||||
Current |
62,717,151 |
27,150,033 |
4,453,088 |
||
Deferred |
— |
— |
— |
||
Income tax expense |
62,717,151 |
27,150,033 |
4,453,088 |
||
Net Income |
188,151,454 |
79,528,309 |
13,044,057 |
||
Earnings per share: |
|||||
Basic and diluted |
7.31 |
3.09 |
0.51 |
||
Weighted average ordinary shares outstanding: |
|||||
Basic and diluted |
25,725,000 |
25,725,000 |
25,725,000 |
||
SOURCE