UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16
under the Securities Exchange Act of 1934
For the month of August 2015
Commission File Number: 001-34754
China New Borun Corporation
(Translation of Registrant’s name into English)
Bohai Industrial Park
Yangkou Town
Shouguang, Shandong 262715
People’s Republic of China
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F:
| x Form 20-F | ¨ Form 40-F |
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): o
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): o
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| China New Borun Corporation | ||
|
| ||
| By: | /s/ Terence Chen | |
| Name: | Terence Chen | |
| Title: | Chief Financial Officer | |
Date: August 13, 2015
EXHIBIT INDEX
Exhibit 99.1 |
Press release dated August 11, 2015 |
Exhibit 99.1
| Confidential | August 11, 2015 |
China New Borun Announces Second Quarter 2015 Unaudited Financial Results
Beijing, China, August 11, 2015 – 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, 2015.
Mr. Jinmiao Wang, Chairman and Chief Executive Officer of Borun, commented on the results, “We are ecstatic in being able to deliver a strong second quarter of 2015 that significantly exceeded our top line expectations. During the quarter, the baijiu industry showed improved demand, driven by the mass market; while at the same time, the number of edible alcohol producers had contracted, as many smaller and inefficient edible alcohol producers exited the industry. This enabled Borun to maintain a solid average selling price for edible alcohol at better-than-expected shipment volume, which drove strong revenue and profitability.”
“We believe the improved competitive landscape and pricing for edible alcohol will likely sustain, and as we had already proactively upgraded our production facilities and conducted partial maintenance during the first quarter of 2015, we plan a shorter annual maintenance period this third quarter. With our solid market position and the improved fundamentals in the baijiu industry, we anticipate greater profits in 2015,” Mr. Wang concluded.
Second Quarter 2015 Quick View
| · | Total revenue increased 7.7% to RMB720.6 million ($117.9 million1) from RMB668.9 million in the second quarter of 2014. |
| · | Gross profit increased 29.8% to RMB87.7 million ($14.3 million) from RMB67.5 million in the second quarter of 2014. |
| · | Net income increased 81.7% to RMB38.1 million ($6.2 million) from RMB21.0 million in the second quarter of 2014. |
| · | Basic and diluted earnings per American Depositary Share ("ADS") were RMB1.48 ($0.24) for the quarter ended June 30, 2015. 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, 2015 were made at a rate of RMB6.1136 to USD1.00, the rate published by the People’s Bank of China on June 30, 2015. 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.
| Confidential | August 11, 2015 |
Second Quarter 2015 Financial Performance
For the second quarter of 2015, revenue increased by 7.7% year-over-year to RMB720.6 million ($117.9 million) from RMB668.9 million in the same period of 2014. The increase in revenue was mainly attributable to higher sales volume in edible alcohol and its by-products.
Revenue breakdown by product lines is as follows:
| · | Revenue from edible alcohol increased by 11.2% to RMB473.8 million ($77.5 million) in the second quarter of 2015, compared to RMB425.9 million in the second quarter of 2014. The sales volume of edible alcohol in the second quarter of 2015 increased by 11.2% year-over-year to 92,864 tons, and the average selling price of edible alcohol was unchanged at RMB5,102 per ton. |
| Ÿ | Revenue from DDGS Feed increased slightly by 0.1% to RMB159.9 million ($26.2 million) in the second quarter of 2015, compared to RMB159.8 million in the second quarter of 2014. The sales volume of DDGS Feed in the second quarter of 2015 increased by 11.1% year-over-year to 82,418 tons, while the average selling price decreased by 10.0% year-over-year to RMB1,940 per ton. |
| · | Revenue from liquid carbon dioxide decreased by 53.8% to RMB5.2 million ($0.8 million) in the second quarter of 2015, compared to RMB11.4 million in the second quarter of 2014. The sales volume of liquid carbon dioxide in the second quarter of 2015 increased by 6.4% year-over-year to 34,837 tons, while the average selling price decreased by 56.5% year-over-year to RMB151 per ton. |
| · | Revenue from crude corn oil decreased by 3.3% to RMB46.9 million ($7.7 million) in the second quarter of 2015, compared to RMB48.5 million in the second quarter of 2014. The sales volume of crude corn oil in the second quarter of 2015 increased by 7.2% year-over-year to 7,233 tons, while the average selling price decreased by 9.8% year-over-year to RMB6,483 per ton. |
| · | Revenue from chlorinated polyethylene (CPE) increased by 63.2% to RMB34.8 million ($5.7 million) in the second quarter of 2015, compared to RMB21.3 million in the second quarter of 2014. The sales volume of CPE in the second quarter of 2015 increased by 66.5% year over year to 4,075 tons, while the average selling price decreased by 2.0% to RMB8,547 per ton. |
During the second quarter of 2015, gross profit increased by 29.8% to RMB87.7 million ($14.3 million) from RMB67.5 million in the same period of 2014. Gross margin for the second quarter of 2015 increased to 12.2%, from 10.1% in the same period of 2014, which was primarily attributable to the decrease in average corn cost, partly offset by the decrease in average selling price of by-products.
Operating income increased by 30.8% to RMB72.3 million ($11.8 million) in the second quarter of 2015, from RMB55.3 million in the same period of 2014, primarily attributable to higher gross profit earned.
Selling expenses increased by RMB0.4 million, or 21.6% to RMB1.9 million ($0.3 million) in the second quarter of 2015, from RMB1.5 million in the same period of 2014, which increased in line with the sales volume.
| Confidential | August 11, 2015 |
General and administrative expenses increased by RMB2.8 million, or 26.2% to RMB13.5 million ($2.2 million) in the second quarter of 2015, from RMB10.7 million in the same period of 2014.
Income tax expenses in the second quarter of 2015 were RMB12.7 million ($2.1 million), representing an effective tax rate of 25.0%.
Net income increased by 81.7% to RMB38.1 million ($6.2 million) in the second quarter of 2015, compared to RMB21.0 million in the same quarter of 2014. In the second quarter of 2015, basic and diluted earnings per share and per ADS were RMB1.48 ($0.24), and the Company had 25.7 million weighted average basic and diluted shares outstanding.
As of June 30, 2015, cash and bank deposits of RMB496.1 million ($81.1 million) decreased by RMB334.3 million, compared with RMB830.4 million as of December 31, 2014. Cash flows used in operating activities for the second quarter of 2015 were RMB59.0 million ($9.7 million), which was mainly due to the increase in inventories.
Financial Outlook
The Company estimates that its revenue for the third quarter of 2015 will be in the range of RMB630 million ($103.0 million) to RMB670 million ($109.6 million), an increase of approximately 19.1% to 26.6% over the same quarter of 2014.
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, August 12, 2015 (8:00 p.m. Beijing time on Wednesday, August 12, 2015) to discuss the results and highlights from the second quarter of 2015 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: | 93908929 |
A replay of the webcast will be accessible through August 20, 2015 on http://ir.chinanewborun.com or by dialing:
| United States toll free: | 1-855-452-5696 |
| International: | 61-2-8199-0299 |
| Passcode | 93908929 |
| Confidential | August 11, 2015 |
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 and foam insulation that are 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
| Confidential | August 11, 2015 |
CHINA NEW BORUN CORPORATION
UNAUDITED CONSOLIDATED BALANCE SHEETS
| December 31, 2014 | June 30, 2015 | |||||||||||
| RMB | RMB | US$ | ||||||||||
| Assets | ||||||||||||
| Cash | 830,430,168 | 496,058,045 | 81,140,088 | |||||||||
| Restricted cash | 62,370,000 | 20,000,000 | 3,271,395 | |||||||||
| Trade accounts receivable, net of allowance for doubtful accounts of nil and nil, respectively | 531,480,981 | 476,548,904 | 77,948,983 | |||||||||
| Held-to-maturity debt securities | — | 98,720,762 | 16,147,730 | |||||||||
| Inventories | 496,754,625 | 756,230,968 | 123,696,507 | |||||||||
| Advance to suppliers | 52,577,513 | 398,501 | 65,183 | |||||||||
| Other receivables | 73,593,217 | 130,973,945 | 21,423,375 | |||||||||
| Prepaid expenses | 4,562,333 | 1,881,997 | 307,838 | |||||||||
| Total current assets | 2,051,768,837 | 1,980,813,122 | 324,001,099 | |||||||||
| Property, plant and equipment, net | 1,096,055,659 | 1,058,919,284 | 173,207,158 | |||||||||
| Land use right, net | 136,125,360 | 134,709,071 | 22,034,329 | |||||||||
| Intangible assets, net | 5,822,528 | 3,909,406 | 639,461 | |||||||||
| Other non-current assets | 5,562,810 | 3,649,726 | 596,985 | |||||||||
| Total assets | 3,295,335,194 | 3,182,000,609 | 520,479,032 | |||||||||
| Liabilities and shareholders’ equity | ||||||||||||
| Trade accounts payable | 17,055,679 | 13,316,381 | 2,178,157 | |||||||||
| Accrued expenses and other payables | 86,729,443 | 62,302,341 | 10,190,777 | |||||||||
| Income taxes payable | 6,205,515 | 16,935,689 | 2,770,166 | |||||||||
| Short-term borrowings | 901,000,000 | 943,200,000 | 154,278,985 | |||||||||
| Current portion of long-term borrowings | 24,000,000 | 24,000,000 | 3,925,674 | |||||||||
| Bonds Payable | 500,000,000 | 320,000,000 | 52,342,319 | |||||||||
| Total current liabilities | 1,534,990,637 | 1,379,754,411 | 225,686,078 | |||||||||
| Long-term borrowings | 84,000,000 | 72,000,000 | 11,777,022 | |||||||||
| Total liabilities | 1,618,990,637 | 1,451,754,411 | 237,463,100 | |||||||||
| Shareholders’ equity | ||||||||||||
| Ordinary share – (December 31, 2014 and June 30, 2015: 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 | 76,572,263 | |||||||||
| Retained earnings – appropriated | 134,277,095 | 134,277,095 | 21,963,670 | |||||||||
| Retained earnings – unappropriated | 1,074,210,923 | 1,128,112,247 | 184,525,034 | |||||||||
| Accumulated other comprehensive loss | (451,244 | ) | (450,927 | ) | (70,760 | ) | ||||||
| Total shareholders’ equity | 1,676,344,557 | 1,730,246,198 | 283,015,932 | |||||||||
| Total liabilities and shareholders’ equity | 3,295,335,194 | 3,182,000,609 | 520,479,032 | |||||||||
| Confidential | August 11, 2015 |
CHINA NEW BORUN CORPORATION
UNAUDITED CONSOLIDATED STATEMENTS OF INCOME
| For the three-month period ended, | ||||||||||||||||
| June 30, 2014 | March 31, 2015 | June 30, 2015 | ||||||||||||||
| (RMB) | (RMB) | (RMB) | (US$) | |||||||||||||
| Revenues | 668,887,775 | 570,925,219 | 720,638,443 | 117,874,647 | ||||||||||||
| Cost of goods sold | 601,348,437 | 511,689,155 | 632,954,711 | 103,532,241 | ||||||||||||
| Gross profit | 67,539,338 | 59,236,064 | 87,683,732 | 14,342,406 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Selling | 1,534,527 | 1,202,672 | 1,866,280 | 305,267 | ||||||||||||
| General and administrative | 10,703,722 | 11,813,709 | 13,506,488 | 2,209,253 | ||||||||||||
| Total operating expenses | 12,238,249 | 13,016,381 | 15,372,768 | 2,514,520 | ||||||||||||
| Operating income | 55,301,089 | 46,219,683 | 72,310,964 | 11,827,886 | ||||||||||||
| Other (income) expenses: | ||||||||||||||||
| Interest income | (637,612 | ) | (2,263,389 | ) | (4,017,821 | ) | (657,194 | ) | ||||||||
| Interest expense | 26,695,034 | 26,409,354 | 24,018,082 | 3,928,632 | ||||||||||||
| Others, net | 1,273,848 | 1,025,752 | 1,490,237 | 243,757 | ||||||||||||
| Total other expense, net | 27,331,270 | 25,171,717 | 21,490,498 | 3,515,195 | ||||||||||||
| Income before income taxes | 27,969,819 | 21,047,966 | 50,820,466 | 8,312,691 | ||||||||||||
| Income tax expense | 6,992,455 | 5,261,992 | 12,705,116 | 2,078,173 | ||||||||||||
| Net income | 20,977,364 | 15,785,974 | 38,115,350 | 6,234,518 | ||||||||||||
| Earnings per share: | ||||||||||||||||
| Basic and diluted | 0.82 | 0.61 | 1.48 | 0.24 | ||||||||||||
| Weighted average ordinary shares outstanding: | ||||||||||||||||
| Basic and diluted | 25,725,000 | 25,725,000 | 25,725,000 | 25,725,000 | ||||||||||||
| Confidential | August 11, 2015 |
CHINA NEW BORUN CORPORATION
UNAUDITED CONSOLIDATED STATEMENTS OF INCOME
| For the six-month period ended, | ||||||||||||
| June 30, 2014 | June 30, 2015 | |||||||||||
| (RMB) | (RMB) | (US$) | ||||||||||
| Revenues | 1,294,618,856 | 1,291,563,662 | 211,260,740 | |||||||||
| Cost of goods sold | 1,136,596,378 | 1,144,643,866 | 187,229,107 | |||||||||
| Gross profit | 158,022,478 | 146,919,796 | 24,031,633 | |||||||||
| Operating expenses: | ||||||||||||
| Selling | 2,749,478 | 3,068,952 | 501,988 | |||||||||
| General and administrative | 21,194,588 | 25,320,197 | 4,141,618 | |||||||||
| Total operating expenses | 23,944,066 | 28,389,149 | 4,643,606 | |||||||||
| Operating income | 134,078,412 | 118,530,647 | 19,388,027 | |||||||||
| Other (income) expenses: | ||||||||||||
| Interest income | (1,162,947 | ) | (6,281,210 | ) | (1,027,416 | ) | ||||||
| Interest expense | 52,719,992 | 50,427,436 | 8,248,403 | |||||||||
| Others, net | 2,129,418 | 2,515,989 | 411,540 | |||||||||
| Total other expense, net | 53,686,463 | 46,662,215 | 7,632,527 | |||||||||
| Income before income taxes | 80,391,949 | 71,868,432 | 11,755,500 | |||||||||
| Income tax expense | 20,097,988 | 17,967,108 | 2,938,875 | |||||||||
| Net income | 60,293,961 | 53,901,324 | 8,816,625 | |||||||||
| Earnings per share: | ||||||||||||
| Basic and diluted | 2.34 | 2.10 | 0.34 | |||||||||
| Weighted average ordinary shares outstanding: | ||||||||||||
| Basic and diluted | 25,725,000 | 25,725,000 | 25,725,000 | |||||||||