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 November 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 | ||
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| By: | /s/ Terence Chen | |
| Name: | Terence Chen | |
| Title: | Chief Financial Officer | |
Date: November 12, 2015
EXHIBIT INDEX
Exhibit 99.1 |
Press release dated November 11, 2015 |
Exhibit 99.1
| Confidential |
China New Borun Announces Third Quarter 2015 Unaudited Financial Results
Beijing, China, November 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 third quarter ended September 30, 2015.
Mr. Jinmiao Wang, Chairman and Chief Executive Officer of Borun, commented on the results, “We are very pleased with Borun’s strong third quarter 2015 financial results. Driven by recovering trends in China’s baijiu industry, our third quarter’s revenue grew 25%, and net income nearly tripled year-over-year. The strong profits combined with a sharp reduction in inventory fueled record operating cash flows of RMB624 million, which nearly doubled our cash balance to almost one billion RMB.”
“Given that the fourth quarter is seasonally peak for baijiu consumption, we are confident to sustain our improved profitability and expect net profits for full year 2015 will significantly grow from that of a year ago. Importantly, we are thrilled that in this fourth quarter’s new harvest season, the spot prices for corn continue to decrease, while the average selling price for edible alcohol remains stable. The combination of better industry fundamentals and our solid market position provides us with excellent optimism for 2016.”
Third Quarter 2015 Quick View
| · | Total revenue increased 25.0% to RMB661.4 million ($104.0 million[1]) from RMB529.2 million in the third quarter of 2014. |
| · | Gross profit increased 45.7% to RMB66.3 million ($10.4 million) from RMB45.5 million in the third quarter of 2014. |
| · | Net income increased 272.9% to RMB21.8 million ($3.4 million) from RMB5.8 million in the third quarter of 2014. |
| · | Basic and diluted earnings per American Depositary Share ("ADS") were RMB0.85 ($0.13) for the quarter ended September 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 September 30, 2015 were made at a rate of RMB6.3613 to USD1.00, the rate published by the People’s Bank of China on September 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 |
Third Quarter 2015 Financial Performance
For the third quarter of 2015, revenue increased by 25.0% year-over-year to RMB661.4 million ($104.0 million) from RMB529.2 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 25.0% to RMB429.3 million ($67.5 million) in the third quarter of 2015, compared to RMB343.4 million in the third quarter of 2014. The sales volume of edible alcohol in the third quarter of 2015 increased by 24.1% year-over-year to 83,115 tons, and the average selling price of edible alcohol slightly increased by 0.7% year-over-year to RMB5,165 per ton. |
| Ÿ | Revenue from DDGS Feed increased by 20.2% to RMB140.4 million ($22.1 million) in the third quarter of 2015, compared to RMB116.8 million in the third quarter of 2014. The sales volume of DDGS Feed in the third quarter of 2015 increased by 35.0% year-over-year to 72,322 tons, while the average selling price decreased by 11.0% year-over-year to RMB1,941 per ton. |
| · | Revenue from liquid carbon dioxide decreased by 8.9% to RMB7.3 million ($1.1 million) in the third quarter of 2015, compared to RMB8.0 million in the third quarter of 2014. The sales volume of liquid carbon dioxide in the third quarter of 2015 increased by 31.4% year-over-year to 31,732 tons, while the average selling price decreased by 30.7% year-over-year to RMB229 per ton. |
| · | Revenue from crude corn oil increased by 17.2% to RMB40.1 million ($6.3 million) in the third quarter of 2015, compared to RMB34.2 million in the third quarter of 2014. The sales volume of crude corn oil in the third quarter of 2015 increased by 25.4% year-over-year to 6,291 tons, while the average selling price decreased by 6.6% year-over-year to RMB6,370 per ton. |
| · | Revenue from chlorinated polyethylene (CPE) increased by 83.3% to RMB44.4 million ($7.0 million) in the third quarter of 2015, compared to RMB24.2 million in the third quarter of 2014. The sales volume of CPE in the third quarter of 2015 increased by 87.0% year over year to 5,200 tons, while the average selling price decreased by 2.0% to RMB8,547 per ton. |
During the third quarter of 2015, gross profit increased by 45.7% to RMB66.3 million ($10.4 million) from RMB45.5 million in the same period of 2014. Gross margin for the third quarter of 2015 increased to 10.0%, from 8.6% in the same period of 2014, which was primarily attributable to the decrease in average corn cost and increase in average selling price of edible alcohol, partly offset by the decrease in average selling price of by-products.
Operating income increased by 50.5% to RMB50.7 million ($8.0 million) in the third quarter of 2015, from RMB33.7 million in the same period of 2014, primarily attributable to higher gross profit earned.
Selling expenses increased by RMB0.8 million, or 77.7% to RMB1.9 million ($0.3 million) in the third quarter of 2015, from RMB1.1 million in the same period of 2014, which increased in line with the sales volume.
| Confidential |
General and administrative expenses increased by RMB2.9 million, or 27.2% to RMB13.6 million ($2.1 million) in the third quarter of 2015, from RMB10.7 million in the same period of 2014.
Income tax expenses in the third quarter of 2015 were RMB7.3 million ($1.1 million), representing an effective tax rate of 25.0%.
Net income increased by 272.9% to RMB21.8 million ($3.4 million) in the third quarter of 2015, compared to RMB5.8 million in the same quarter of 2014. In the third quarter of 2015, basic and diluted earnings per share and per ADS were RMB0.85 ($0.13), and the Company had 25.7 million weighted average basic and diluted shares outstanding.
As of September 30, 2015, cash and bank deposits of RMB994.7 million ($156.4 million) increased by RMB101.9 million, compared with RMB892.8 million as of December 31, 2014. Cash flows provided by operating activities for the third quarter of 2015 were RMB624.0 million ($98.0 million), which was mainly attributable to higher net profits and lower inventories.
Financial Outlook
The Company estimates that its revenue for the fourth quarter of 2015 will be in the range of RMB650 million ($102.2 million) to RMB700 million ($110.0 million), an increase of approximately 6.6% to 14.8% 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 Thursday, November 12, 2015 (9:00 p.m. Beijing time on Thursday, November 12, 2015) to discuss the results and highlights from the third 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: | 66099135 |
A replay of the webcast will be accessible through November 20, 2015 on http://ir.chinanewborun.com or by dialing:
| United States toll free: | 1-855-452-5696 |
| International: | 61-2-8199-0299 |
| Passcode | 66099135 |
| Confidential |
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 chlorinated polyethylene (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 |
CHINA NEW BORUN CORPORATION
UNAUDITED CONSOLIDATED BALANCE SHEETS
| December 31, 2014 | September 30, 2015 | |||||||||||
| RMB | RMB | US$ | ||||||||||
| Assets | ||||||||||||
| Cash | 830,430,168 | 994,664,390 | 156,361,811 | |||||||||
| Restricted cash | 62,370,000 | — | — | |||||||||
| Trade accounts receivable, net of allowance for doubtful accounts of nil and nil, respectively | 531,480,981 | 482,893,172 | 75,911,083 | |||||||||
| Held-to-maturity debt securities | — | 98,720,762 | 15,518,960 | |||||||||
| Inventories | 496,754,625 | 314,858,032 | 49,495,863 | |||||||||
| Advance to suppliers | 52,577,513 | 223,416 | 35,121 | |||||||||
| Other receivables | 73,593,217 | 51,330,734 | 8,069,221 | |||||||||
| Prepaid expenses | 4,562,333 | 4,500,000 | 707,403 | |||||||||
| Total current assets | 2,051,768,837 | 1,947,190,506 | 306,099,462 | |||||||||
| Property, plant and equipment, net | 1,096,055,659 | 1,025,666,720 | 161,235,395 | |||||||||
| Land use right, net | 136,125,360 | 134,000,927 | 21,065,022 | |||||||||
| Intangible assets, net | 5,822,528 | 2,952,846 | 464,189 | |||||||||
| Other non-current assets | 5,562,810 | 1,711,635 | 269,070 | |||||||||
| Total assets | 3,295,335,194 | 3,111,522,634 | 489,133,138 | |||||||||
| Liabilities and shareholders’ equity | ||||||||||||
| Trade accounts payable | 17,055,679 | 44,696,744 | 7,026,354 | |||||||||
| Accrued expenses and other payables | 86,729,443 | 87,920,628 | 13,821,172 | |||||||||
| Income taxes payable | 6,205,515 | 13,699,971 | 2,153,643 | |||||||||
| Short-term borrowings | 901,000,000 | 803,200,000 | 126,263,500 | |||||||||
| Current portion of long-term borrowings | 24,000,000 | 24,000,000 | 3,772,814 | |||||||||
| Bonds Payable | 500,000,000 | 320,000,000 | 50,304,183 | |||||||||
| Total current liabilities | 1,534,990,637 | 1,293,517,343 | 203,341,666 | |||||||||
| Long-term borrowings | 84,000,000 | 66,000,000 | 10,375,238 | |||||||||
| Total liabilities | 1,618,990,637 | 1,359,517,343 | 213,716,904 | |||||||||
| Shareholders’ equity | ||||||||||||
| Ordinary share – (December 31, 2014 and September 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 | 73,590,648 | |||||||||
| Retained earnings – appropriated | 134,277,095 | 134,277,095 | 21,108,436 | |||||||||
| Retained earnings – unappropriated | 1,074,210,923 | 1,149,905,084 | 180,765,737 | |||||||||
| Accumulated other comprehensive loss | (451,244 | ) | (484,671 | ) | (74,312 | ) | ||||||
| Total shareholders’ equity | 1,676,344,557 | 1,752,005,291 | 275,416,234 | |||||||||
| Total liabilities and shareholders’ equity | 3,295,335,194 | 3,111,522,634 | 489,133,138 | |||||||||
CHINA NEW BORUN CORPORATION
UNAUDITED CONSOLIDATED STATEMENTS OF INCOME
| Confidential |
| For the three-month period ended, | ||||||||||||||||
| September 30, 2014 | June 30, 2015 | September 30, 2015 | ||||||||||||||
| RMB | RMB | RMB | US$ | |||||||||||||
| Revenues | 529,187,562 | 720,638,443 | 661,425,029 | 103,976,393 | ||||||||||||
| Cost of goods sold | 483,683,441 | 632,954,711 | 595,147,823 | 93,557,578 | ||||||||||||
| Gross profit | 45,504,121 | 87,683,732 | 66,277,206 | 10,418,815 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Selling | 1,085,428 | 1,866,280 | 1,928,963 | 303,234 | ||||||||||||
| General and administrative | 10,705,813 | 13,506,488 | 13,615,056 | 2,140,295 | ||||||||||||
| Total operating expenses | 11,791,241 | 15,372,768 | 15,544,019 | 2,443,529 | ||||||||||||
| Operating income | 33,712,880 | 72,310,964 | 50,733,187 | 7,975,286 | ||||||||||||
| Other (income) expenses: | ||||||||||||||||
| Interest income | (469,678 | ) | (4,017,821 | ) | (3,120,573 | ) | (490,556 | ) | ||||||||
| Interest expense | 25,407,558 | 24,018,082 | 23,234,892 | 3,652,538 | ||||||||||||
| Others, net | 983,190 | 1,490,237 | 1,561,751 | 245,509 | ||||||||||||
| Total other expense, net | 25,921,070 | 21,490,498 | 21,676,070 | 3,407,491 | ||||||||||||
| Income before income taxes | 7,791,810 | 50,820,466 | 29,057,117 | 4,567,795 | ||||||||||||
| Income tax expense | 1,947,952 | 12,705,116 | 7,264,280 | 1,141,949 | ||||||||||||
| Net income | 5,843,858 | 38,115,350 | 21,792,837 | 3,425,846 | ||||||||||||
| Earnings per share: | ||||||||||||||||
| Basic and diluted | 0.23 | 1.48 | 0.85 | 0.13 | ||||||||||||
| Weighted average ordinary shares outstanding: | ||||||||||||||||
| Basic and diluted | 25,725,000 | 25,725,000 | 25,725,000 | 25,725,000 | ||||||||||||
| Confidential |
CHINA NEW BORUN CORPORATION
UNAUDITED CONSOLIDATED STATEMENTS OF INCOME
| For the nine-month period ended, | ||||||||||||
| September 30, 2014 | September 30, 2015 | |||||||||||
| RMB | RMB | US$ | ||||||||||
| Revenues | 1,823,806,418 | 1,952,988,691 | 307,010,940 | |||||||||
| Cost of goods sold | 1,620,279,819 | 1,739,791,689 | 273,496,249 | |||||||||
| Gross profit | 203,526,599 | 213,197,002 | 33,514,691 | |||||||||
| Operating expenses: | ||||||||||||
| Selling | 3,834,906 | 4,997,915 | 785,675 | |||||||||
| General and administrative | 31,900,401 | 38,935,253 | 6,120,644 | |||||||||
| Total operating expenses | 35,735,307 | 43,933,168 | 6,906,319 | |||||||||
| Operating income | 167,791,292 | 169,263,834 | 26,608,372 | |||||||||
| Other (income) expenses: | ||||||||||||
| Interest income | (1,632,625 | ) | (9,401,783 | ) | (1,477,966 | ) | ||||||
| Interest expense | 78,127,550 | 73,662,328 | 11,579,760 | |||||||||
| Others, net | 3,112,608 | 4,077,740 | 641,023 | |||||||||
| Total other expense, net | 79,607,533 | 68,338,285 | 10,742,817 | |||||||||
| Income before income taxes | 88,183,759 | 100,925,549 | 15,865,555 | |||||||||
| Income tax expense | 22,045,940 | 25,231,388 | 3,966,389 | |||||||||
| Net income | 66,137,819 | 75,694,161 | 11,899,166 | |||||||||
| Earnings per share: | ||||||||||||
| Basic and diluted | 2.57 | 2.94 | 0.46 | |||||||||
| Weighted average ordinary shares outstanding: | ||||||||||||
| Basic and diluted | 25,725,000 | 25,725,000 | 25,725,000 | |||||||||