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Document and Entity Information	12 Months Ended
Document and Entity Information	Dec. 31, 2018 shares
Document and Entity Information
Entity Registrant Name	CHINA NEW BORUN Corp
Entity Central Index Key	0001490366
Document Type	20-F
Document Period End Date	Dec. 31, 2018
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Non-accelerated Filer
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding	25,725,000
Document Fiscal Year Focus	2018
Document Fiscal Period Focus	FY

CONSOLIDATED BALANCE SHEETS	Dec. 31, 2018 USD ($)	Dec. 31, 2018 CNY (¥)	Dec. 31, 2017 CNY (¥)
Current assets
Cash	$ 90,750,611	¥ 624,211,652	¥ 728,249,297
Trade accounts receivable, net of allowance for doubtful accounts of RMB nil and RMB nil ($ nil), as of December 31, 2017 and 2018, respectively (note 4)	18,463,572	126,998,338	509,737,390
Inventories (note 5)	209,541,532	1,441,293,500	434,185,431
Advance to suppliers (note 6)	32,647	224,554	562,196,185
Other receivables (note 7)	27,905,665	191,944,065	66,391,456
Prepaid expenses	796,265	5,476,967	2,781,503
Total current assets	347,490,292	2,390,149,076	2,303,541,262
Property, plant and equipment, net (note 8)	87,511,216	601,930,062	766,055,948
Land use rights, net (note 9)	18,019,187	123,941,714	127,627,629
Total assets	453,020,695	3,116,020,852	3,197,224,839
Current liabilities
Trade accounts payable	1,478,181	10,167,408	36,890,637
Accrued expenses and other payables (note 10)	6,061,539	41,693,201	54,770,180
Income taxes payable	4,416,472	30,377,905	66,717,710
Short-term borrowings (note 11)	106,340,912	731,446,715	698,667,011
Bonds payable - current portion	14,538,436	100,000,000
Total current liabilities	132,835,540	913,685,229	857,045,538
Bonds payable, outstanding principal amount of RMB300,000,000 ($43,615,301), 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 RMB 5,419,012 and RMB 4,005,357 ($582,316) as of December 31, 2017 and 2018, respectively) (note 12)	28,494,555	195,994,643	294,580,988
Total liabilities	161,330,095	1,109,679,872	1,151,626,526
Commitments and contingencies (note 15)
Shareholders' equity
Ordinary share-par value of RMB0.0068259; 25,725,000 shares authorized, issued and outstanding as of December 31, 2017 and 2018, respectively	25,725	175,596	175,596
Additional paid-in capital	68,059,098	468,132,187	468,132,187
Retained earnings-appropriated (note 2)	25,567,986	175,864,784	171,207,400
Retained earnings-unappropriated	198,116,895	1,362,711,200	1,406,583,669
Accumulated other comprehensive loss	(79,104)	(542,787)	(500,539)
Total shareholders' equity	291,690,600	2,006,340,980	2,045,598,313
Total liabilities and shareholders' equity	$ 453,020,695	¥ 3,116,020,852	¥ 3,197,224,839

CONSOLIDATED BALANCE SHEETS (Parenthetical)	Dec. 31, 2018 USD ($) shares	Dec. 31, 2018 CNY (¥) ¥ / shares shares	Dec. 31, 2017 USD ($) shares	Dec. 31, 2017 CNY (¥) ¥ / shares shares	Dec. 31, 2016 CNY (¥)
CONSOLIDATED BALANCE SHEETS
Trade accounts receivable, allowance for doubtful accounts	$ 0	¥ 0		¥ 0
Debt instrument, face amount	$ 43,615,301	¥ 300,000,000	$ 43,615,301	¥ 300,000,000
Interest rate (as a percent)	6.50%	6.50%	6.50%	6.50%
Unamortized debt issuance costs interest rate (as a percentage)	6.75%	6.75%	6.75%	6.75%
Debt issuance costs	$ 582,316	¥ 4,005,357		¥ 5,419,012	¥ 6,830,549
Ordinary share, par value (in CNY per share) \| ¥ / shares		¥ 0.0068259		¥ 0.0068259
Ordinary share, shares authorized	25,725,000	25,725,000	25,725,000	25,725,000
Ordinary share, shares issued	25,725,000	25,725,000	25,725,000	25,725,000
Ordinary share, shares outstanding	25,725,000	25,725,000	25,725,000	25,725,000

CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME	12 Months Ended
	Dec. 31, 2018 USD ($) $ / shares shares	Dec. 31, 2018 CNY (¥) ¥ / shares shares	Dec. 31, 2017 CNY (¥) ¥ / shares shares	Dec. 31, 2016 CNY (¥) ¥ / shares shares
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
Revenues	$ 262,256,112	¥ 1,803,881,198	¥ 2,140,871,979	¥ 2,132,680,185
Cost of goods sold	241,710,246	1,662,560,180	1,907,898,919	1,950,614,338
Gross profit	20,545,866	141,321,018	232,973,060	182,065,847
Operating expenses (income), net:
Selling	512,307	3,523,809	3,657,645	4,164,703
General and administrative	7,696,043	52,935,840	49,015,721	48,413,749
Government subsidy	0		(117,216,600)	0
Others, net	(144,500)	(993,917)	(104,649)	(4,086,154)
Impairment losses of property, plant and equipment	7,268,586	49,995,656	0	0
Total operating expenses(income), net	15,332,436	105,461,388	(64,647,883)	48,492,298
Income from operations	5,213,429	35,859,630	297,620,943	133,573,549
Interest income	556,920	3,830,674	4,154,446	4,043,903
Interest expense	(9,069,499)	(62,382,917)	(66,125,464)	(52,669,508)
Income (loss) before income tax expenses	(3,299,150)	(22,692,613)	235,649,925	84,947,944
Income tax (credit) expenses (note 14)
Current	2,402,109	16,522,472	58,912,481	19,481,789
Deferred \| ¥				1,755,197
Income tax expenses	2,402,109	16,522,472	58,912,481	21,236,986
Net income (loss) attributable to ordinary shareholders	(5,701,259)	(39,215,085)	176,737,444	63,710,958
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustment	(6,142)	(42,248)	61,376	(59,426)
Other comprehensive income (loss)	(6,142)	(42,248)	61,376	(59,426)
Total comprehensive income attributable to ordinary shareholders	$ (5,707,401)	¥ (39,257,333)	¥ 176,798,820	¥ 63,651,532
Earnings (loss) per share (note 2):
Basic and Diluted (in CNY or dollars per share) \| (per share)	$ (0.22)	¥ (1.52)	¥ 6.87	¥ 2.48
Weighted average ordinary shares outstanding (note 2):
Basic and diluted (in shares) \| shares	25,725,000	25,725,000	25,725,000	25,725,000

CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY	Ordinary Share USD ($) shares	Ordinary Share CNY (¥) shares	Additional Paid-in Capital USD ($)	Additional Paid-in Capital CNY (¥)	Retained Earnings-Appropriated USD ($)	Retained Earnings-Appropriated CNY (¥)	Retained Earnings-Unappropriated USD ($)	Retained Earnings-Unappropriated CNY (¥)	Accumulated Other Comprehensive Loss USD ($)	Accumulated Other Comprehensive Loss CNY (¥)	USD ($) shares	CNY (¥) shares
Beginning Balance at Dec. 31, 2015		¥ 175,596		¥ 468,132,187		¥ 147,162,560		¥ 1,190,180,107		¥ (502,489)		¥ 1,805,147,961
Beginning Balance (in shares) at Dec. 31, 2015 \| shares	25,725,000	25,725,000
Increase (Decrease) in Stockholders' Equity
Net income (loss) for the year								63,710,958				63,710,958
Transfer to statutory reserves						6,371,096		(6,371,096)
Foreign currency translation adjustment										(59,426)		(59,426)
Ending Balance at Dec. 31, 2016		¥ 175,596		468,132,187		153,533,656		1,247,519,969		(561,915)		1,868,799,493
Ending Balance (in shares) at Dec. 31, 2016 \| shares	25,725,000	25,725,000
Increase (Decrease) in Stockholders' Equity
Net income (loss) for the year								176,737,444				176,737,444
Transfer to statutory reserves						17,673,744		(17,673,744)
Foreign currency translation adjustment										61,376		61,376
Ending Balance at Dec. 31, 2017		¥ 175,596		468,132,187		171,207,400		1,406,583,669		(500,539)		¥ 2,045,598,313
Ending Balance (in shares) at Dec. 31, 2017 \| shares	25,725,000	25,725,000									25,725,000	25,725,000
Increase (Decrease) in Stockholders' Equity
Net income (loss) for the year								(39,215,085)			$ (5,701,259)	¥ (39,215,085)
Transfer to statutory reserves						4,657,384		(4,657,384)
Foreign currency translation adjustment										(42,248)	(6,142)	(42,248)
Ending Balance at Dec. 31, 2018	$ 25,725	¥ 175,596	$ 68,059,098	¥ 468,132,187	$ 25,567,986	¥ 175,864,784	$ 198,116,895	¥ 1,362,711,200	$ (79,104)	¥ (542,787)	$ 291,690,600	¥ 2,006,340,980
Ending Balance (in shares) at Dec. 31, 2018 \| shares	25,725,000	25,725,000									25,725,000	25,725,000

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References + Details

CONSOLIDATED STATEMENTS OF CASH FLOWS	12 Months Ended
CONSOLIDATED STATEMENTS OF CASH FLOWS	Dec. 31, 2018 USD ($)	Dec. 31, 2018 CNY (¥)	Dec. 31, 2017 CNY (¥)	Dec. 31, 2016 CNY (¥)
CONSOLIDATED STATEMENTS OF CASH FLOWS
Net income/(loss)	$ (5,701,259)	¥ (39,215,085)	¥ 176,737,444	¥ 63,710,958
Adjustments to reconcile net income to net cash provided by operating activities:
Interest income on held-to-maturity debt securities				(1,587,889)
Impairment loss of property, plant and equipment	7,268,586	49,995,656	0	0
Gain on disposal of property, plant and equipment				(3,743,590)
Deferred income taxes				1,755,197
Depreciation	15,485,648	106,515,229	112,816,310	115,744,856
Amortization expense	535,874	3,685,914	2,832,576	4,828,862
Amortized debt issuance costs associated to the bonds	205,523	1,413,655	1,411,537	672,831
Changes in operating assets and liabilities:
Trade accounts receivable	47,024,324	323,448,304	(94,115,818)	99,898,697
Inventories	(146,417,761)	(1,007,108,069)	168,443,408	(163,787,747)
Prepaid expenses and other current assets	81,304,725	559,239,834	(300,755,630)	87,668,833
Trade accounts payable	(3,885,140)	(26,723,230)	13,247,376	1,351,129
Accrued expenses and other payables	(10,782,480)	(74,165,333)	5,219,296	(32,647,208)
Income tax payable	(6,241,769)	(42,932,879)	54,475,346	(13,932,965)
Net cash provided by/ (used in) operating activities	(21,203,729)	(145,846,004)	140,311,845	159,931,964
Cash flows from investing activities:
Purchases of property, plant and equipment and construction in progress			(950,000)	(3,592,397)
Proceeds from disposal of property, plant and equipment	1,107,102	7,615,000		3,743,590
Net cash provided by/ (used in) investing activities	1,107,102	7,615,000	(950,000)	151,193
Cash flows from financing activities:
Proceeds from borrowings	4,971,180	34,193,359	880,867,011	961,870,000
Repayments of borrowings			(1,087,370,000)	(893,900,000)
Settlement of bonds				(221,279,238)
Proceeds from the issuance of bonds, net of debt issuance costs paid				292,924,529
Net cash provided by/(used in) financing activities	4,971,180	34,193,359	(206,502,989)	139,615,291
Effect of foreign currency exchange translation	(5,282)	(36,333)	61,376	10
Net increase/ (decrease) in cash	(15,125,447)	(104,037,645)	(67,079,768)	299,698,458
Cash-beginning of year	105,876,058	728,249,297	795,329,065	495,630,607
Cash-end of year	90,750,611	624,211,652	728,249,297	795,329,065
Supplemental disclosure of cash flow information:
Cash paid for income taxes	2,402,109	16,522,472	4,437,138	33,414,753
Cash paid for interest	$ 9,069,499	¥ 62,382,917	64,796,999	76,584,346
Non-cash investing activities:
Accrued fixed asset purchases			¥ 1,936,729
Offsetting other payables to the debt securities issuer for the principal amounts of held-to-maturity debt securities to be received upon matured				98,720,762
Non-cash financing activities:
Offsetting other receivables from the bonds holder upon the settlement of bonds				¥ 98,720,762

Description of Business	12 Months Ended
Description of Business	Dec. 31, 2018
Description of Business
Description of Business	1. Description of Business The accompanying consolidated financial statements include the financial statements of China New Borun Corporation (“New Borun”), Golden Direction Limited (“Golden Direction”), China High Enterprises Limited (“China High”), Shandong Borun Industrial Co., Ltd. (“Shandong Borun”) and Daqing Borun Biotechnology Co., Ltd (“Daqing Borun”). New Borun, Golden Direction, China High, Shandong Borun and Daqing Borun are collectively referred to as the “Company”. New Borun, the holding company, was incorporated in Cayman Islands on December 21, 2009. Golden Direction was incorporated in the British Virgin Islands on March 28, 2008. Effective as of March 31, 2010, New Borun consummated a share exchange agreement with Golden Direction whereby New Borun acquired 100% of the voting capital stock of Golden Direction. As of the date of that agreement, (1) Golden Direction became a wholly owned subsidiary of New Borun and (2) Golden Direction held approximately 74.24% of the voting capital stock of China High Enterprises Limited, or China High, our Hong Kong holding company. Effective as of March 31, 2010, New Borun and Golden Direction consummated a share exchange agreement whereby New Borun through Golden Direction acquired the remaining 25.76% equity interest of China High. China High was incorporated in Hong Kong’s Special Administrative Region on July 15, 2008. Weifang Great Chemical, Inc. (“WGC”) was established as a limited liability company on March 21, 2001 in China’s Shandong Province under the laws of the People’s Republic of China (“PRC”). For restructuring and reorganization purposes, pursuant to an equity interest acquisition agreement, China High acquired all of the equity interests of WGC on September 30, 2008. In December 2008, China High through WGC acquired a 100% equity interest in Shandong Borun, the operating company. Shandong Borun was the predecessor of the Company and operated all of the business of the Company prior to a restructuring in 2008 (the “Restructuring”). Shandong Borun was set up in the city of Shouguang in China’s Shandong Province by Mr. Jinmiao Wang (“Mr. Wang”) and his family members (collectively the “Wang Family”) on December 1, 2000. The establishment of China High and the acquisition of Shandong Borun through WGC has been accounted for as a recapitalization or reorganization of Shandong Borun since the stockholders consisted of the same majority shareholders (no change in control) and there was no change in management immediately following the completion of the transaction in accordance with the provisions of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 805-50-15-6, “Business Combinations”. On July 9, 2008, Shandong Borun acquired all of the equity interests in Daqing Borun, a company formerly called Daqing Anxin Tongwei Alcohol Manufacturing Co., Ltd. (Anxin Tongwei), a limited liability company established under the laws of the PRC on September 20, 2004 in Daqing city, Heilongjiang Province, China. The total purchase price of RMB139,000,000 was allocated based on the estimated fair values of the assets acquired and liabilities assumed at the date of purchase in accordance with FASB ASC Topic 805, “Business Combinations”. Anxin Tongwei began production of edible alcohol in 2005; however, due to operation and financing problems, Anxin Togwei ceased production and applied for bankruptcy on July 26, 2007. On July 1, 2008, the Court made the verdict to approve that certain Acquisition Agreement between Shandong Borun and Anxin Tongwei on June 26, 2008, and on July 9, 2008 the parties completed the acquisition pursuant to which Anxin Tongwei became a wholly owned subsidiary of Shandong Borun. As of the acquisition date, Anxin Tongwei had been idle for more than one year, with no management personnel or production, employees or revenue. Accordingly, under FASB ABC Topic 805, since the acquired set of assets exclude several key items (employees, processes and customers), the Company concluded that the acquired set of assets does not constitute a business and, as a result, accounted for the transaction as an asset acquisition. Subsequent to the acquisition, we spent more than a year and approximately RMB110 million in facility improvements, including improvements to machinery and equipment, in order to replace the previous owner’s “dry” method manufacturing process with our in-house developed Borun Wet Process and we also changed the name of Anxin Tongwei to Daqing Borun Biotechnology Co., Ltd. (since we regard “corn deep-processing” as a part of the biotechnology field, we named it accordingly). The establishment of New Borun on December 21, 2009 and acquisition through share exchange between New Borun, Golden Direction and China High effective as of March 31, 2010 has been accounted for as a recapitalization or reorganization since the stockholders consisted of the same majority shareholders (no change in control) and there was no change in management immediately following the completion of the transaction in accordance with the provision of FASB ASC Topic 805-50-15-6. Accordingly, the transaction is treated as a recapitalization or reorganization of China High and the assets and liabilities and the historical operations that are reflected in the financial statements are those of China High and its subsidiaries and are recorded at the historical cost basis. New Borun, Golden Direction and China High are holding companies. Financial statements and financial information presented for prior years have been retrospectively adjusted to furnish comparative information for periods during which Golden Direction, China High, WGC and Shandong Borun were under common control. On November 15, 2012, WGC merged into Shandong Borun, as a result of the merger WGC is deregistered and China High obtained 100% direct control over Shandong Borun. During the year ended December 31, 2016, the Company has disposed all long-lived assets of foam insulation business segment and exited the business accordingly. The income (loss) before income tax expenses of foam insulation business segment for the years ended December 31, 2015 and 2016 were RMB(6,891,333) and RMB810,840, respectively, which represented (4%) and 1% to the Company’s consolidated income before income tax expenses for the years ended December 31, 2015 and 2016, respectively. The disposal of foam insulation business does not represent a strategic shift that had a major effect on our operations and financial results. As such, the disposal of long-lived assets of foam insulation business segment have not been reported in discontinued operations as required by FASB ASC Topic 205-20, “Presentation of Financial Statements—Discontinued Operations” in the consolidated financial statements for the periods presented. The Company develops and operates its business through Shandong Borun and Daqing Borun. The Company is principally engaged in manufacture and distribution of edible alcohol and chemical products. The Company also produces Distillers Dried Grains with Solubles high-protein feed (“DDGS Feed”), liquid carbon dioxide and crude corn oil as by-products of edible alcohol production. The Company’s chemical products are chlorinated polyethylene (“CPE”) and 2-Acrylamido-2-methylpropane sulfonic acid (“AMPS”) that are widely used in a broad range of industries. The Company operates and manages its business as two reportable segments: “Corn-base edible alcohol and its by-products” and “Chemical products”. The “Chemical products” segment comprises of AMPS, CPE and foam insulation (disposed during the year ended December 31, 2016).

Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2018

Summary of Significant Accounting Policies

Summary of Significant Accounting Policies

2. Summary of Significant Accounting Policies

Principles of Consolidation and Presentation

The consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”). The consolidated financial statements include the financial statements of the New Borun, Golden Direction, China High, Shandong Borun and Daqing Borun. All significant inter-company transactions and balances have been eliminated upon consolidation.

Foreign Currency Translation

The Company’s financial statements are presented in Chinese Renminbi (“RMB”), which is the Company’s reporting currency. The functional currency of the Company’s subsidiary in Hong Kong is the U.S. dollar while the functional currency of the Company’s subsidiaries in the PRC is RMB.

In accordance with FASB ASC Topic 830, “Foreign Currency Matters”, the Company translates the assets and liabilities into RMB using the rate of exchange prevailing at the applicable balance sheet date and the statements of income and cash flows are translated at an average rate during the reporting period. Adjustments resulting from the translation from U.S. dollar into RMB are recorded in shareholders’ equity as part of accumulated other comprehensive income.

Convenience Translation into United States Dollar Amounts

The Company reports its financial statements using the RMB. The Dollar amounts disclosed in the accompanying financial statements are presented solely for the convenience of the reader, and have been converted at the rate of RMB 6.87832 to one Dollar ($), which is published by OANDA. Such translations should not be construed as representations that the RMB amounts represent, have been, or could be, converted into, $ at that or any other rate.

Use of Estimates

The preparation and presentation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could materially differ from those estimates.

Cash

Cash includes cash on hand, and cash accounts and interest-bearing savings accounts in the financial institutions.

Accounts Receivable

Accounts receivable are carried at the amounts invoiced to customers less allowance for doubtful accounts, if any. When applicable, the Company estimates an allowance based on a review of the payment history of individual customers and future expectations of economic conditions of those customers. Accounts receivable are written off when deemed uncollectible. Recoveries of accounts receivable previously written off are recorded when received.

Inventories

Inventories are stated at the lower of cost or net realizable value. The cost of a general inventory item is determined using the weighted average method. Net realizable value is the estimated selling price, in the ordinary course of business, less estimated costs to complete and dispose. Cost of work in progress and finished goods comprise direct material, direct production costs and an allocated portion of production overhead costs based on normal operating capacity. From November 2013, the Company initiated a “bill and hold” arrangement with the granaries whereby the Company took the possession of the corn upon purchase and storage of the corn by the granaries. Purchased corn are recognized as inventories when the significant risks and rewards of ownership are considered to be transferred to the Company upon full payment of the corn price made to the granaries and the quantity and quality of the purchased corn had been inspected and acknowledged by the Company.

Property, Plant, and Equipment

Property, plant and equipment are recorded at cost. Significant additions or improvements extending useful lives of assets are capitalized. Depreciation is calculated using the straight-line method (after taking into account their respective estimated residual value) over the estimated useful lives as follows.


Buildings and improvements		20 to 30 Years
Machinery		10 Years
Office equipment and furnishing		3 to 5 Years
Motor vehicles		4 to 5 Years

Maintenance and repairs are charged directly to expense as incurred, whereas improvements and renewals are generally capitalized in their respective property accounts. When an item is retired or otherwise disposed of, the cost and applicable accumulated depreciation are removed and the resulting gain or loss is recognized in the consolidated statements of income and comprehensive income.

Land Use Rights

According to the laws of the PRC, land is owned by the state or rural collective economic organizations in the PRC. Companies or individuals are authorized to possess and use the land only through the land use rights granted by the government. The land use rights represent cost of the rights to use the land in respect of properties located in the PRC. Land use rights are carried at cost and amortized on a straight-line basis over the period of rights of 50 years.

Intangible Assets

Intangible assets include production license for use in the production and distribution of edible alcohol and is accounted for under FASB ASC Topic 350-30, “General Intangibles Other Than Goodwill”. The current production license for use in the production and distribution of edible alcohol is renewed in October 2016 with an additional five years. The production license renewal is normally subject to inspection and renewed every five years with a small renewal application fee cost. Based on the Company’s historical experience in producing and distributing edible alcohol, the Company does not expect to incur significant cost to renew its production license nor does it expect any material modifications to the existing terms of the production license, or any difficulties in renewing the license. Amortization expense is calculated on a straight-line basis over the useful life of the production license which include additional five-year expected renewal period. The intangible assets have been fully amortized during the year ended December 31, 2016.

Valuation of Long-Lived Assets

The Company, in accordance with FASB ASC Topic 360, “Property, Plant and Equipment”, reviews for impairment of long-lived assets and certain identifiable intangibles whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. Recoverability is determined by comparing projected undiscounted cash flows associated with such assets to the related carrying value.

An impairment loss would be recognized when estimated discounted future cash flows expected to result from the use of the asset and its eventual disposition is less than its carrying amount. The Company records impairment losses of RMB nil, RMB nil and RMB 49,995,656 for the years ended December 31, 2016, 2017 and 2018, respectively.

Value added tax

All the subsidiaries of the Company in the PRC are subject to value added tax (“VAT”) imposed by the Government of the PRC on its purchase and sales of goods, its purchase of property, plant and equipment and the freight expenses being incurred. The output VAT is charged to customers who purchase goods from the Company and debited to trade accounts receivable and credited to VAT payable – output VAT. The input VAT is incurred when the Company purchases goods and property, plant and equipment from its vendors and the freight expenses being incurred. The input VAT incurred is debited to VAT recoverable or VAT payable – input VAT and credited to payables accounts or cash and cash equivalent. VAT payable is computed on a monthly basis and payable in the following month based on the difference between the amount of output VAT and input VAT as of month-end, The applicable VAT rate is ranged from 0% to 17% in general, depending on the types of products purchased and sold. If the amount of validated input VAT being aroused by purchasing goods and property, plant, equipment and the freight expenses incurred exceeds that of output VAT for sales of goods during the month, the debit VAT payable balance as of month-end will be carried forward to be creditable against future collection of output VAT in the following months, and will be reclassified as VAT recoverable under other receivables. In addition, input VAT is off-the-price and not included in the cost of inventory.

According to Cai Shui [2012] No. 38 issued by the PRC State Administration of Taxation, since July 2012, the input VAT paid for purchase of corns can only be offset against the output VAT when the required conditions are being fulfilled and validated by the PRC Taxing Authority, otherwise, the input VAT paid will be temporarily recorded as VAT recoverable under other receivables. As of December 31, 2017 and 2018, VAT recoverable consisted of input VAT paid for purchase of corn but not yet validated by the PRC Taxing Authority of RMB45,179,459 and RMB 176,873,571 ($25,714,651), respectively.

According to Cai Kuai [2013] No. 36, sales taxes and surcharges has been replaced with value-added taxes effective from May 1, 2016.

Revenue Recognition

We recognizes revenue in accordance with FASB ASC Topic 606, “Revenue from Contracts with Customers”. We recognize revenues when persuasive evidence of an arrangement exists, the price is fixed or determinable, no other significant obligations of the Company exist, collection is reasonably assured and delivery of products has occurred or services have been rendered. Delivery occurs upon receipt of products by the customers at the customers’ warehouse or designated destination, or at the time products are picked up by the customers at our warehouse.

Revenues presented on the consolidated statements of income and comprehensive income are net of sales taxes and surcharges.

Cost of Goods Sold

The Company’s cost of goods sold includes product costs, shipping and handling costs, and costs related to inventory adjustments, including write downs for excess and obsolete inventory. Product costs include raw materials, production overhead costs, amortization of production license, and depreciation of property, plant and equipment used directly or indirectly for production.

Research and Development Costs

Research and development costs are expensed as incurred. The Company did not incur any material research and development costs for the years ended December 31, 2016, 2017 and 2018.

Advertising Expenses

Costs associated with advertising are expensed as incurred. The Company did not incur any advertising expenses for the years ended December 31, 2016, 2017 and 2018.

Shipping and Handling Costs

The Company records all charges to customers for outbound shipping and handling as revenue. All corresponding shipping and handling costs are classified as cost of goods sold for the years ended December 31, 2016, 2017 and 2018.

Allowance for Doubtful Accounts

The Company regularly monitors and assesses the risk of not collecting amounts owed to the Company by customers. This evaluation is based upon a variety of factors including: an analysis of amounts current and past due along with relevant history and facts particular to the customer. Based upon the results of this analysis, the Company did not have an allowance for doubtful accounts for this risk.

Retirement and Other Postretirement Benefits

Full-time employees of the Company in the PRC participate in a government mandated defined contribution plan, pursuant to which certain pension benefits, medical care, employee housing fund and other welfare benefits are provided to employees. Chinese labor regulations require the Company to make contributions to the government for these benefits based on certain percentages of the employees’ salaries. The Company accounts for the mandated defined contribution plan under the vested benefit obligations approach based on the guidance of FASB ASC Topic 715, “Compensation—Retirement Benefits”.

The total amounts for such employee benefits, which were expensed, were RMB10,016,774, RMB 11,558,233, and RMB13,394,085 ($1,947,290) for the years ended December 31, 2016, 2017 and 2018, respectively.

Borrowing cost

Borrowing costs attributable directly to the acquisition, construction or production of qualifying assets which require a substantial period of time to be ready for their intended use or sale, are capitalized as part of the cost of those assets. Income earned on temporary investments of specific borrowings pending their expenditure on those assets is deducted from borrowing costs capitalized. All other borrowing costs are recognized in interest expenses in the statement of income and comprehensive income in the period in which they are incurred. For the years ended December 31, 2016, 2017 and 2018, no interests were capitalized as borrowing cost in property, plant and equipment.

Government Subsidies

The Company's subsidiaries in China receive government subsidies from local Chinese government agencies in accordance with relevant Chinese government policies. The government subsidies received are recorded as part of other income or accounted for by reductions of expenses, if the subsidies received are earmarked to compensate a specific expense, such as research and development expense or interest expenses. Unearned government subsidies received are deferred for recognition until the criteria for such recognition could be met. For the years ended December 31, 2016, 2017 and 2018, the government subsidies received and recorded as other income were RMB nil, RMB 117,216,600, and RMB nil, respectively. All of the subsidies received was for the purpose of compensating the Company’s corn procurement. No government subsidy was accounted for by reduction of expense during the years December 31, 2016, 2017 and 2018.

Income Taxes

The Company follows FASB ASC Topic 740, “Income Taxes”, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements or tax returns. Under this method, deferred income taxes are recognized for the tax consequences in future years of differences between the tax bases of assets and liabilities and their financial reporting amounts at each period end based on enacted tax laws and statutory tax rates, applicable to the periods in which the differences are expected to affect taxable income. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized.

The Company has adopted FASB ASC Topic 740-10-25 since January 1, 2007, which provides criteria for the recognition, measurement, presentation and disclosure of uncertain tax position. The Company must recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position are measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate resolution. The Company performed self-assessment and the Company’s liability for income taxes includes the liability for unrecognized tax benefits, interest and penalties which relate to tax years still subject to review by taxing authorities. Audit periods remain open for review until the statute of limitations has passed, which in the PRC is usually 5 years. The completion of review or the expiration of the statute of limitations for a given audit period could result in an adjustment to the Company’s liability for income taxes. Any such adjustment could be material to the Company’s results of operations for any given quarterly or annual period based, in part, upon the results of operations for the given period. As of December 31, 2017 and 2018, the management of the Company considered that the Company had no additional liabilities for uncertain tax positions affecting its consolidated financial position and results of operations or cash flows, and will continue to evaluate for any uncertain position in the future. There are no estimated interest costs and penalties provided in the Company’s consolidated financial statements for the years ended December 31, 2016, 2017 and 2018, respectively. The Company’s tax positions related to open tax years are subject to examination by the relevant tax authorities and the major one is the China Tax Authority.

Comprehensive Income (Loss)

The Company presents comprehensive income (loss) in accordance with FASB ASC Topic 220, “Comprehensive Income”. FASB ASC Topic 220 states that all items that are required to be recognized under accounting standards as components of comprehensive income (loss) be reported net of taxes in the consolidated statements of income and comprehensive income. The components of comprehensive income were the net income for the years, the foreign currency translation adjustments and the unrealized holding gain (loss) or any reclassification adjustment of available-for-sale securities.

Appropriated Retained Earnings

The income of the Company’s PRC subsidiaries is distributable to their shareholder after transfer to reserves as required by relevant PRC laws and regulations and the subsidiaries’ Articles of Association. As stipulated by the relevant laws and regulations in the PRC, these PRC subsidiaries are required to maintain reserves which are non-distributable to shareholders. Appropriations to the reserves are approved by the respective boards of directors.

Reserves include statutory surplus reserves and discretionary reserves. Statutory surplus reserves can be used to offset the accumulated losses, if any, and may be converted into capital in proportion to the existing equity interests of shareholders, provided that the balance after such conversion is not less than 25% of the registered capital. The appropriation to the statutory surplus reserves must not be less than 10% of net profit after taxation. Such appropriation may cease to apply if the balance of the fund is equal to 50% of the entity’s registered capital. The annual appropriation of reserves of both Shandong Borun and Daqing Borun is 10% of the net income after income tax expenses. For the years ended December 31, 2016, 2017 and 2018, the Company made the transfers to this reserve fund in the amounts of RMB6,371,096, RMB17,673,744 and RMB4,657,384 ($677,111), respectively, separately presented as “Retained earnings—appropriated” in the balance sheets.

Dividends

The Company provides discretionary dividend payments based on the approval of the Company’s Board of Directors. The Board of Directors of the Company had not proposed any dividend payment for the years ended December 31, 2016, 2017 and 2018.

Earnings Per Share

Earnings per share is calculated in accordance with FASB ASC Topic 260, “Earnings Per Share” Basic earnings per share is computed by dividing income attributable to holders of ordinary shares by the weighted average number of ordinary shares outstanding during the period. Diluted earnings per share is computed using the more dilutive of (a) the two-class method or (b) the if-converted method. Diluted earnings per share also reflects the potential dilution that could occur if securities or other contracts to issue ordinary shares were exercised or converted into ordinary shares.

The following table sets forth the computation of basic and diluted earnings per share for the years indicated:


	Year Ended December 31,
	2016	2017	2018	2018
	(RMB)	(RMB)	(RMB)	($)
Numerator:
Net income/(loss), representing undistributed earnings available to ordinary shareholder—basic and diluted	63,710,958	176,737,444	(39,215,085)	(5,701,259)

Denominator:
Weighted average number ordinary shares outstanding—basic and diluted	25,725,000	25,725,000	25,725,000	25,725,000
Earnings per share:
Basic and diluted	2.48	6.87	(1.52)	(0.22)

Operating Risk

Concentrations of Credit Risk

Trade Accounts Receivable—Concentrations of credit risk with respect to accounts receivable are limited due to the large number of customers dispersed across diverse markets and generally short payment terms. Credit is extended based on an evaluation of the customer’s financial condition and collateral generally is not required. The Company evaluates the collectability of accounts receivable based on a combination of factors. In cases where the Company is aware of circumstances that may impair a specific customer’s ability to meet its financial obligations subsequent to the original sale, the Company will record a specific allowance against amounts due, and thereby reduce the net recognized receivable to the amount the Company reasonably believes will be collected. As of December 31, 2017 and 2018, there was no individual trade accounts receivable amounted over 10% of the total balance.

Revenues—Substantially, all of the Company’s revenues are derived from sales of edible alcohol and its by-products, including DDGS Feed, liquid carbon dioxide and crude corn oil and the Company’s chemical products CPE and AMPS in PRC. Any significant decline in market acceptance of the Company’s products or in the financial condition of our existing customers could impair our ability to operate effectively. None of the individual customers contributed over 10% of the total revenue for the years ended December 31, 2016, 2017 and 2018. Additionally, the Company derives substantially all of its revenue from sales in Northeast China.

Purchases — The Company had a concentration of risk for its supply of its primary raw material, corn, which used in the production of edible alcohol. The granary located in Daqing, Heilongjiang as described in the accounting policy for “Inventories” above, supplied 25.0% of the Company’s purchases of corn in 2018.

Interest Rate Risk

Borrowings and Bonds—The Company’s significant interest-bearing financial liabilities are borrowings and bonds.

As of December 31, 2018, all balance of borrowing are short-term borrowings which will be matured at various dates within the year ending December 31, 2019 and do not expose the Company to interest rate risk. The Company’s interest rate risk arises primarily from bonds. The Company’s bonds were issued at fixed rates on November 2, 2016 and expose the Company to fair value and interest rate risk which will be matured at fiscal year 2021.

The interest rates profile and terms of repayment of the Company’s bonds payable at the end of the reporting periods are disclosed in note 12, to the consolidated financial statements.

Other than the above, other financial assets and liabilities do not have material interest rate risk.

Liquidity Risk

The Company’s working capital is sufficient to meet our present requirements. The Company may, however, require additional cash due to changing business conditions or other future developments, including any investments or acquisitions we may decide to pursue. In the long-term, the Company intends to rely primarily on cash flows from operations and additional borrowings from the financial institutions in order to meet the Company’s anticipated cash needs. If the anticipated cash flow is insufficient to meet the requirements, the Company’s may also seek to issue additional equity, debt or equity-linked securities.

Country Risk

The Company has significant investments in the PRC. The operating results of the Company may be adversely affected by changes in the political and social conditions in the PRC and by changes in Chinese government policies with respect to laws and regulations, anti-inflationary measures, currency conversion and remittance abroad, and rates and methods taxation, pricing and supply of corns and coals, among other things. There can be no assurance; however, those changes in political and other conditions will not result in any adverse impact.

Recently Issued Accounting Pronouncements

In February 2016, the FASB issued Accounting Standards Update No. 2016-02 (ASU 2016-02), Leases (Topic 842). ASU 2016- 02 requires a lessee to record a right-of-use asset and a corresponding lease liability, initially measured at the present value of the lease payments, on the balance sheet for all leases with terms longer than 12 months, as well as the disclosure of key information about leasing arrangements. ASU 2016-02 requires recognition in the statement of operations of a single lease cost, calculated so that the cost of the lease is allocated over the lease term. ASU 2016-02 requires classification of all cash payments within operating activities in the statement of cash flows. Disclosures are required to provide the amount, timing and uncertainty of cash flows arising from leases. A modified retrospective transition approach is required for lessees for capital and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early application is permitted. This ASU will be effective for the Company on January 1, 2019. We will adopt ASU 2016-02 on January 1, 2019.

In February 2018, the FASB issued ASU 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. The amendments in this Update affect any entity that is required to apply the provisions of Topic 220, Income Statement – Reporting Comprehensive Income, and has items of other comprehensive income for which the related tax effects are presented in other comprehensive income as required by GAAP. The amendments in this Update are effective for all entities for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Early adoption of the amendments in this Update is permitted, including adoption in any interim period, (1) for public business entities for reporting periods for which financial statements have not yet been issued and (2) for all other entities for reporting periods for which financial statements have not yet been made available for issuance. The amendments in this Update should be applied either in the period of adoption or retrospectively to each period (or periods) in which the effect of the change in the U.S. federal corporate income tax rate in the Tax Cuts and Jobs Act is recognized. The Company does not believe the adoption of this ASU would have a material effect on the Company’s consolidated financial statements.

Fair Value Measurements

12 Months Ended

Dec. 31, 2018

Fair Value Measurements

Fair Value Measurements

3. Fair Value Measurements

FASB ASC Topic 820, “Fair Value Measurements”, defines fair value as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Company considers the principal or most advantageous market in which it would transact and it considers assumptions that market participants would use when pricing the asset or liability.

FASB ASC Topic 820 establishes a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. FASB ASC Topic 820 establishes three levels of inputs that may be used to measure fair value:

Level 1—Valuations based on unadjusted quoted prices in active markets for identical assets or liabilities that the Company holds. An active market for the asset or liability is a market in which transactions for the asset or liability occur with sufficient frequency and volume to provide pricing information on an ongoing basis.

Level 2—Valuation based on quoted prices in markets that are not active for which all significant inputs are observable, either directly or indirectly.

Level 3—Valuations based on inputs that are unobservable and significant to the overall fair value measurement.

The Company has adopted FASB ASC Topic 820 since January 1, 2008 for all financial assets and liabilities and nonfinancial assets and liabilities that are recognized or disclosed at fair value in the consolidated financial statements on a recurring basis (at least annually). FASB ASC Topic 820 defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. The Company has not adopted FASB ASC Topic 820 for nonfinancial assets and nonfinancial liabilities, as these items are not recognized at fair value on a recurring basis.

Disclosures of fair value information about financial instruments (whether or not recognized in the balance sheets), for which it is practicable to estimate that value, are required each reporting periods in addition to any financial instruments carried at fair value on a recurring basis as prescribed by FASB ASC Topic 825, “Financial Instruments”. In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques. Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows.

Fair value measured or disclosed on a recurring basis

The fair value of financial items of the Company for disclosure purpose including cash, other receivables, advance to suppliers, accrued expenses and other payables and short-term borrowings, approximate their carrying value due to their short-term nature. The Company’s investment (held-to-maturity debt securities) is disclosed using significant other observable inputs (Level 2), because it does not have regular market pricing. Liabilities of the Company for fair value disclosure purpose within Level 2 include long-term borrowings from financial institutions and bonds payable. Their carrying amounts are reasonable approximates of their fair value at the end of the reporting period due to all the long-term debts carry interest rates which approximate rates currently offered by the financial institutions for similar debt instruments of comparable maturities. The Company did not have any financial instruments measured or disclosed at fair value using Level 3 as of December 31, 2017 and 2018.

Fair value measured on a non-recurring basis

The Company reviews long-lived assets for impairment annually or more frequently if events or changes in circumstances indicate the possibility of impairment. For the continuing operations, long-lived assets are measured at fair value on a nonrecurring basis when there is an indicator of impairment, and they are recorded at fair value only when impairment is recognized. For discontinued operations, long-lived assets are measured at the lower of carrying amount or fair value less cost to sell. The fair value of these assets were determined using models with significant unobservable inputs which were classified as Level 3 inputs, primarily the discounted future cash flow. In determining the fair value, The Company used projections of cash flows directly associated with, and which are expected to arise as a direct result of, the use and eventual disposition of the assets. This approach required significant judgments including the Company's projected net cash flows, which were derived using the most recent available estimate for the reporting unit containing the assets tested. Several key assumptions included periods of operation, projections of product pricing, production levels, product costs, market supply and demand, and inflation.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Trade Accounts Receivable, Net

12 Months Ended

Dec. 31, 2018

Trade Accounts Receivable, Net

Trade Accounts Receivable, Net

4. Trade Accounts Receivable, Net

Trade receivable consists of receivables resulting from sales of products during the normal course of business. Trade accounts receivable at end of years presented consisted of the following:


	As of December 31,
	2017	2018	2018
	(RMB)	(RMB)	($)
Trade accounts receivable	509,737,390	126,998,338	18,463,572
Less: Allowance for doubtful accounts	—	—	—
Total trade accounts receivable, net	509,737,390	126,998,338	18,463,572

As of December 31, 2017 and 2018, no trade accounts receivables were pledged as collateral for borrowings from financial institutions.

- Definition

The entire disclosure for claims held for amounts due a entity, excluding financing receivables. Examples include, but are not limited to, trade accounts receivables, notes receivables, loans receivables. Includes disclosure for allowance for credit losses.

+ References + Details

Inventories

12 Months Ended

Dec. 31, 2018

Inventories

Inventories

5. Inventories

Inventories consisted of the following:


	As of December 31,
	2017	2018	2018
	(RMB)	(RMB)	($)
Raw materials	414,172,830	1,387,287,531	201,689,909
Work-in-process	2,681,530	1,764,835	256,579
Finished goods	17,331,071	52,241,134	7,595,044
Total inventories	434,185,431	1,441,293,500	209,541,532

The Company did not set up any inventory reserve as of December 31, 2017 and 2018. As of December 31, 2017 and 2018, no raw materials were pledged as collateral for borrowings from financial institutions.

Advance to Suppliers

12 Months Ended

Dec. 31, 2018

Advance to Suppliers

Advance to Suppliers

6. Advance to Suppliers

Advances to suppliers consisted of the following:


	As of December 31,
	2017	2018	2018
	(RMB)	(RMB)	($)
Advance to granaries (note (i))	559,300,277	—	—
Others	2,895,908	224,554	32,647
Total advance to suppliers	562,196,185	224,554	32,647

Note (i): Advance to granaries represents corn cost paid but related materials and services have not been provided to the Company.

Other Receivables

12 Months Ended

Dec. 31, 2018

Other Receivables

Other Receivables

7. Other Receivables

Other receivables consisted of the following:


	As of December 31,
	2017	2018	2018
	(RMB)	(RMB)	($)
VAT recoverable (note (i))	45,434,459	176,873,571	25,714,651
Deposit for loan guarantee	17,900,000	15,000,000	2,180,765
Others	3,056,997	70,494	10,249
Total other receivables	66,391,456	191,944,065	27,905,665

Note (i): As of December 31, 2017 and 2018, VAT recoverable mainly consisted of input VAT paid for purchase of corns but not yet validated by the PRC Taxing Authority of RMB45,179,459 and 176,873,571 ($25,714,651), respectively.

Note (ii): The deposit for loan guarantee is a financial instrument. Based on its maturity is within one operating period, the Company believes its carrying value approximates fair value.

Property, Plant and Equipment, Net

12 Months Ended

Dec. 31, 2018

Property, Plant and Equipment, Net

Property, Plant and Equipment, Net

8. Property, Plant and Equipment, Net

Property, plant and equipment, net, consisted of the following:


	As of December 31,
	2017	2018	2018
	(RMB)	(RMB)	($)
Buildings and improvements	655,923,713	653,961,713	95,075,805
Machinery	943,742,391	888,973,826	129,242,890
Office equipment and furnishing	1,468,593	1,468,593	213,510
Motor vehicles	1,715,958	1,496,611	217,584
Total cost	1,602,850,655	1,545,900,743	224,749,789
Total accumulated depreciation	(838,181,436)	(955,605,318)	(138,930,067)
Construction in progress	1,386,729	11,634,637	1,691,494
Total property, plant, and equipment, net	766,055,948	601,930,062	87,511,216

The buildings, machinery, equipment, and motor vehicles in Shandong and Daqing were pledged as collateral for borrowings from the financial institutions as of December 31, 2017 and 2018. For the years ended December 31, 2016, 2017 and 2018, no interests were capitalized as borrowing cost in property, plant and equipment. For the years ended December 31, 2016, 2017, and 2018, impairment loss of RMB nil. RMB nil, and RMB49,995,656 ($7,268,586) was charged to accumulated depreciation, respectively.

The depreciation expenses for the years ended December 31, 2016, 2017 and 2018 were RMB115,744,856, RMB112,816,310 and RMB 106,515,229 ($15,485,648), respectively.

Construction in progress refers to mainly the new production facilities under construction.

Land Use Rights, Net

12 Months Ended

Dec. 31, 2018

Land Use Rights, Net.

Land Use Rights, Net

9. Land Use Rights, Net

Land use rights consisted of the following:


	As of December 31,
	2017	2018	2018
	(RMB)	(RMB)		($)
Land use rights at cost	144,726,756	144,045,981		20,942,033
Accumulated amortization	(17,099,127)	(20,104,267)		(2,922,846)
Total land use rights, net	127,627,629	123,941,714	$	18,019,187

As of December 31, 2017 and 2018, certain land use rights with an aggregate carrying value of RMB10,076,146 and RMB 9,827,352 ($1,428,743), respectively, were pledged as collateral for borrowings from the financial institutions.

The amortization expenses for the years ended December 31, 2016, 2017 and 2018 were RMB2,832,578, RMB2,832,577 and RMB2,832,576 ($433,500), respectively. No provision for impairment loss has been charged for the years ended December 31, 2016, 2017 and 2018.

Future amortization of land use rights is as follows:


		(RMB)
Years Ending December 31,		Amount
2019		2,832,576
2020		2,832,576
2021		2,832,576
2022		2,832,576
2023		2,832,576
Thereafter		109,778,834
Total		123,941,714

Accrued Expenses and Other Payables

12 Months Ended

Dec. 31, 2018

Accrued Expenses and Other Payables

Accrued Expenses and Other Payables

10. Accrued Expenses and Other Payables

Accrued expenses and other payables consisted of the following:


	As of December 31,
	2017	2018	2018
	(RMB)	(RMB)	($)
Payroll and welfare payables	22,288,807	15,695,733	2,281,914
VAT and other tax payables	28,569,804	23,081,723	3,355,722
Other payables and accruals	3,911,569	2,915,745	423,903
Total accrued expenses and other payables	54,770,180	41,693,201	6,061,539

Borrowings

12 Months Ended

Dec. 31, 2018

Borrowings

Borrowings

11. Borrowings

Borrowings consisted of the following:


	December 31,
	2017	2018	2018
	RMB	RMB	$
• Agricultural Bank of China

All borrowings under the loan agreements were guaranteed by third party companies. These loans have been repaid as of December 31, 2018. The interest rate is 4.35%.	320,000,000	—	—

• Agricultural Bank of China

The amount of RMB43,200,000 will be due on January 4, 2019. The amount of RMB40,000,000 will be due on January 28, 2019. The amount of RMB10,000,000 will be due on June 7, 2019. The amount of RMB20,000,000 will be due on June 13, 2019. The amount of RMB20,000,000 will be due on July 15, 2019. The amount of RMB40,000,000 will be due on August 15, 2019. The amount of RMB20,000,000 will be due on September 12, 2019. The amount of RMB30,000,000 will be due on October 10, 2019. The amount of RMB20,000,000 will be due on October 11, 2019. The amount of RMB30,000,000 will be due on October 26, 2019. The amount of RMB10,000,000 will be due on November 5, 2019. The amount of RMB40,000,000 will be due on November 9, 2019. All borrowings under the loan agreements are guaranteed by third party companies. The interest rate is 4.35%.	—	323,200,000	46,988,225

• Agricultural Bank of China

The amount of RMB33,319,295 will be due on September 28, 2019. The borrowings under this loan agreement is guaranteed by Mr. Wang, Jingmiao, the CEO of the Company, and Shandong Borun. The interest rate is 5.0025%.	—	33,319,295	4,844,104

• Construction Bank of China

The amount of RMB114,972,579 was repaid during the year of 2018. The amount of RMB84,427,421 was renewed and will be payable in 2019. All borrowings under the loan agreements were guaranteed by Shandong Borun, Mr. Jinmiao Wang, the CEO of the Company, and his family members. The Company also pledged its fixed assets as collateral. The interest rate is 5.22%.	199,800,000	—	—

• Construction Bank of China

The amount of RMB30,000,000 will be due on February 11, 2019. The amount of RMB25,000,000 will be due on March 6, 2019. The amount of RMB20,000,000 will be due on March 15, 2019. The amount of RMB19,827,421 will be due on March 16, 2019. The amount of RMB20,000,000 will be due on April 12, 2019. The amount of RMB25,000,000 will be due on April 21, 2019. The amount of RMB20,000,000 will be due on May 9, 2019. The amount of RMB37,100,000 will be due on December 29, 2019.

All borrowings under the loan agreements were guaranteed by Shandong Borun, Wang Jinmiao, the CEO of the Company, and his family members. The Company also pledged its fixed assets as collateral. The annual interest rate ranges from 4.785% to 5.655%.	—	196,927,421	28,630,167

• CITIC Bank

This loan was repaid in 2018. The borrowing under the loan agreement was guaranteed by Shandong Borun, Wang Jinmiao, the CEO of the Company, and two third-party companies. The interest rate is 5.655%.	129,867,011	—	—

• CITIC Bank

The amount of RMB129,000,000 will be due on October 15, 2019. The borrowing under the loan agreement was guaranteed by Shandong Borun, Wang Jinmiao, the CEO of the Company, and two third-party companies. The interest rate is 5.8725%.	—	129,000,000	18,754,582

• Daqing Rural Commercial Bank

The amount of RMB49,000,000 was originally due on September 7, 2018 with annual interest rate of 3.50%. In 2018, the Company renewed the loan and the new due date is August 17, 2019. The new interest rate is 2.917% per month. The loan is guaranteed by a third party guarantee company. Daiqing Borun provided the counter guarantee for this company which is pledged by property, plant and equipment and land use rights and by Shandong Borun, the Company’s CEO, two natural persons and three third-party companies simultaneously.	49,000,000	49,000,000	7,123,834
Total	698,667,011	731,446,715	106,340,912

Interest expense related to borrowings amounted to RMB44,696,999 ($6,840,470) and RMB40,427,287 ($5,877,495) for the years ended December 31, 2017 and 2018, respectively.

Bonds Payable	12 Months Ended
Bonds Payable	Dec. 31, 2018
Bonds Payable
Bonds Payable	12. Bonds Payable On November 2, 2016, the Company’s subsidiary, Shandong Borun has issued a private placement bonds (the “Bonds”) with a principal amount of RMB300,000,000 ($43,615,301) that registered with the Shanghai Stock Exchange. The proceeds from the issuance of the Bonds were used in the purpose for the Company’s working capital and capital expenditures. The Bonds were issued at face value of RMB100 ($14) each, bear a fixed annual interest rate of 6.5%, with maturity on November 2, 2021, and RMB 100,000,000 ($14,538,434) would be repaid at the end of each of the third, fourth and fifth year life of the Bonds. The imputed interest rate in connection with the Bonds was 6.75%. Interests of the Bonds charged to the consolidated statement of income for the year ended December 31, 2016, 2017, and 2018 was RMB 2,865,835, RMB 20,263,965, and RMB 21,955,630 ($3,192,005), respectively. The Company has prepaid interests of RMB3,000,000 ($432,464) at the time of the issuance of the Bonds on November 2, 2016. As of December 31, 2016, 2017 and 2018, the prepaid interest of RMB 134,165 and RMB 781,737 and RMB 181,737 ($26,422), respectively, was outstanding and recorded as prepaid expense under current assets. Debt issuance costs associated to the Bonds of RMB7,075,472 ($1,028,663) represented cost incurred for professional services from the sponsors and other various parties, which was net of “Bonds payable in connection with Bonds” in the balance sheets. The amortized debt issuance costs of the Bonds based on imputed interest rate of 6.75% for the years ended December 31, 2016, 2017 and 2018 were RMB 244,923, RMB 1,411,537, and RMB 1,413,655 ($205,523), respectively, which was recorded as “Interest expense” in the statements of income and comprehensive income. As of December 31, 2016, 2017 and 2018, unamortized debt issuance costs associated to the Bonds was RMB 6,830,549, RMB 5,419,012, and RMB 4,005,357 ($582,316), respectively. As of December 31, 2016, 2017, and 2018 non-current bonds payable less unamortized debt issuance costs was RMB 293,169,451, RMB 294,580,988, and RMB 195,994,643 ($28,494,555), respectively. RMB 100,000,000 ($14,538,436) has been classified as bonds payable current portion for the amount due within one operating period.

Restricted Net Assets	12 Months Ended
Restricted Net Assets	Dec. 31, 2018
Restricted Net Assets
Restricted Net Assets	13. Restricted Net Assets The Company’s ability to pay dividends is primarily dependent on the Company receiving distributions of funds from its subsidiaries. Relevant PRC statutory laws and regulations permit payments of dividends by the Company’s PRC subsidiaries only out of their retained earnings, if any, as determined in accordance with PRC accounting standards and regulations. The results of operations reflected in the statements of income and comprehensive income prepared in accordance with U.S. GAAP differ from those reflected in the statutory financial statements of the Company’s subsidiaries. In accordance with the Regulations on Enterprises with Foreign Investment of China and their articles of association, a foreign invested enterprise established in the PRC is required to provide certain statutory reserves, namely general reserve fund, the enterprise expansion fund and staff welfare and bonus fund which are appropriated from net profit as reported in the enterprise’s PRC statutory accounts. A wholly owned foreign invested enterprise is required to allocate at least 10% of its annual after-tax profit to the general reserve until such reserve has reached 50% of its respective registered capital based on the enterprise’s PRC statutory accounts. Appropriations to the enterprise expansion fund and staff welfare and bonus fund are at the discretion of the board of directors for all foreign invested enterprises. The aforementioned reserves can only be used for specific purposes and are not distributable as cash dividends. Shandong Borun is a wholly-owned foreign invested enterprise and therefore are subject to the above mandated restrictions on distributable profits. Additionally, in accordance with the Company Law of the PRC, a domestic enterprise is required to provide a statutory common reserve of at least 10% of its annual after-tax profit until such reserve has reached 50% of its respective registered capital based on the enterprise’s PRC statutory accounts. A domestic enterprise is also required to provide for discretionary surplus reserve, at the discretion of the board of directors, from the profits determined in accordance with the enterprise’s PRC statutory accounts. The aforementioned reserves can only be used for specific purposes and are not distributable as cash dividends. Daqing Borun was established as domestic invested enterprises and therefore are subject to the above mandated restrictions on distributable profits. As a result of these PRC laws and regulations that require annual appropriations of 10% of after-tax income to be set aside prior to payment of dividends as general reserve fund, the Company’s PRC subsidiaries are restricted in their ability to transfer a portion of their net assets to the Company. Amounts restricted include paid-in capital, capital surplus and statutory reserves of the Company’s PRC subsidiaries as determined pursuant to the PRC accounting standards and regulations, totaling approximately RMB1,371,710,109 and RMB 1,377,388,085 ($200,250,684) as of December 31, 2017 and 2018, respectively.

Income Tax Expenses

12 Months Ended

Dec. 31, 2018

Income Tax Expenses

Income Tax Expenses

14. Income Tax Expenses

New Borun incorporated in Cayman Islands and Golden Direction incorporated in the British Virgin Islands are at statutory tax rate of nil, China High was incorporated in Hong Kong Special Administrative Region is at statutory tax rate of 16.5%. Shandong Borun and Daqing Borun are PRC operating companies and are subject to PRC Enterprise Income Tax (“EIT”). Pursuant to the PRC Enterprise Income Tax Law, Enterprise Income Tax is generally imposed at a statutory rate of 25%.

Pursuant to PRC EIT, the PRC subsidiaries of China New Borun are obligated to withhold income tax on dividends paid-out to non-resident, for earnings retained after January 1, 2008. The applicable tax rate is 5% or 10% on the dividends paid-out. As the PRC subsidiaries are wholly or majority owned by the U.S. holding entity, the Company anticipates no cash dividends in the foreseeable futures, and all earnings will be used to re-invest in the PRC subsidiaries. Accordingly, no withholding income tax was accrued.

The income tax expenses consisted of taxes on income from operations plus changes in deferred taxes for the reporting periods presented:


	Year Ended December 31,
	2016	2017	2018	2018
	(RMB)	(RMB)	(RMB)	($)
Current	19,481,789	58,912,481	16,522,472	2,402,109
Deferred	1,755,197	—	—	—
Income tax expenses	21,236,986	58,912,481	16,522,472	2,402,109

Reconciliation between total income tax expenses and the amount computed by applying the statutory income tax rate to income before income tax expenses is for the reporting periods presented as follows:


	Year Ended December 31,
	2016		2017		2018
Statutory rate	25.00	%	25.00	%	25.00	%
Expenses not deductible	—	%	—	%	—	%
Effective tax rate	25.00	%	25.00	%	25.00	%

Commitments and Contingencies	12 Months Ended
Commitments and Contingencies	Dec. 31, 2018
Commitments and Contingencies
Commitments and Contingencies	15. Commitments and Contingencies Commitments As of December 31, 2017 and 2018, capital commitment for purchase of property, plant and equipment were RMB 11,200,000 and RMB nil, respectively. The Company did not have any significant lease commitment as of December 31, 2017 and 2018. Guarantees and Indemnities The Company was a party to enter into contracts to indemnify third parties for certain liabilities, and as of December 31, 2017 and 2018, the Company guaranteed the third parties’ borrowings from the financial institutions amounting to RMB 844,200,000 and RMB562,550,000 ($81,785,959), respectively, as a guarantor. In most cases, the Company cannot estimate the potential amount of future payments under these indemnities until events arise that would result in a liability under the indemnities. The Company believes that the liabilities for potential future payments of these guarantees and indemnities are not probable.

Segment Information

12 Months Ended

Dec. 31, 2018

Segment Information

Segment Information

16. Segment Information

The Company currently operates and manages its business as two reportable segments: “Corn-base edible alcohol and its by-products” and “Chemical products”. The Company’s reportable segments are strategic business units that require different technology and marketing strategies and offer different products and services. The Company’s chief operating decision maker, the Chief Executive Officer, receives and reviews the results of the operations of each separate segment, assesses and manages their performance and makes decisions. Most of the businesses were established as a unit, and the management at the time of the establishment was retained. Following the disposal of “Foam insulation” production line during the year ended December 31, 2016 and introduction of AMPS product line during the year ended December 31, 2017, certain prior year's amounts have been reclassified to conform to current year presentations of "Chemical products" segment. There was no change to previously reported segment totals and consolidated totals information.

The accounting policies of the segments are the same as those described in the summary of significant accounting policies. The Company accounts for intersegment sales and transfers as if the sales or transfers were to third parties, that is, at current market prices.

Contributions of the major activities, profitability information and asset information of the Company’s reportable segments for the years ended December 31, 2016, 2017 and 2018 are as follows:


	Year ended December 31,
	2016			2017			2018
		Inter-	Profit		Inter-	Profit		Inter-	Profit
	Net	segment	(loss)	Net	segment	(loss)	Net	segment	(loss)
	sales	sales	before tax	sales	sales	befor tax	sales	sales	before tax
	(RMB)	(RMB)	(RMB)	(RMB)	(RMB)	(RMB)	(RMB)	(RMB)	(RMB)
Segment:
Corn-base edible alcohol and its by-products	2,034,302,643	—	79,446,037	2,031,865,359	—	79,446,037	1,280,313,234	—	(16,108,554)
Chemical products	98,377,542	—	5,501,907	109,006,620	—	5,501,907	523,567,964	—	(6,584,059)
Segment total	2,132,680,185		84,947,944	2,140,871,979		84,947,944	1,803,881,198		(22,692,613)

Reconciliation to consolidated totals:
Sales eliminations	—	—	—	—	—	—	—	—	—
Consolidated totals:
Revenues	2,132,680,185	—		2,140,871,979	—		1,803,881,198	—
Revenues ($)							262,256,112	—

Income before income taxes			84,947,944			235,649,925			(22,692,613)
Income before income taxes ($)									(3,299,150)


	Year ended December 31,
	2016			2017			2018
	Interest	Interest	Income tax	Interest	Interest	Income tax	Interest	Interest	Income tax
	income	expense	expense	Income	expense	expense	Income	expense	expense
	(RMB)	(RMB)	(RMB)	(RMB)	(RMB)	(RMB)	(RMB)	(RMB)	(RMB)
Segment:
Corn-base edible alcohol and its by-products	4,043,903	52,669,508	17,524,049	4,154,446	66,125,464	56,120,900	3,830,674	62,382,917	7,303,298
Chemical products	—	—	3,712,937	—	—	2,791,581	—	—	9,219,174
Consolidated total	4,043,903	52,669,508	21,236,986	4,154,446	66,125,464	58,912,481	3,830,674	62,382,917	16,522,472

Consolidated total ($)							556,920	9,069,499	2,402,109


	As of and Year ended December 31,
	2016			2017			2018
			Depreciation			Depreciation			Depreciation
	Identifiable	Capital	and	Identifiable	Capital	and	Identifiable	Capital	and
	assets	expenditure	amortization	assets	expenditure	amortization	assets	expenditure	amortization
	(RMB)	(RMB)	(RMB)	(RMB)	(RMB)	(RMB)	(RMB)	(RMB)	(RMB)
Segment:
Corn-base edible alcohol and its by-products	2,871,332,164	—	105,774,948	2,919,052,502	2,631,729	98,816,218	2,902,982,823	—	95,966,036
Chemical products	279,306,560	3,592,397	14,798,770	278,172,337	—	16,832,668	213,038,029	—	14,235,107
Segment totals	3,150,638,724	3,592,397	120,573,718	3,197,224,839	2,631,729	115,648,886	3,116,020,852	—	110,201,143
Reconciliation to consolidated totals:
Elimination of receivables from intersegments	—	—	—	—	—	—	—	—	—
Consolidated totals	3,150,638,724	3,592,397	120,573,718	3,197,224,839	2,631,729	115,648,886	3,116,020,852	—	110,201,143

Consolidated totals ($)							453,020,695		16,021,522

As we primarily generate our revenues from customers in the PRC, and all of our sales and all of our identifiable assets are located in the PRC, no geographical segments are presented.

Condensed Financial Information of New Borun

12 Months Ended

Dec. 31, 2018

Condensed Financial Information of New Borun

Condensed Financial Information of New Borun

17. Condensed Financial Information of New Borun

The condensed financial statements of New Borun (the “Registrant”) have been prepared in accordance with U.S. GAAP. Under the PRC laws and regulations, the Registrant’s subsidiaries registered in the PRC are restricted in their ability to transfer certain of their net assets to the Registrant in the form of dividend payments, loans or advances. The amounts restricted include paid-in capital, capital surplus and statutory reserves, as determined pursuant to PRC generally accepted accounting principles.

The condensed financial information of the Registrant represents as follows:

CONDENSED BALANCE SHEETS


	As of December 31,
	2017	2018	2018
	(RMB)	(RMB)	($)
ASSETS
Current assets
Cash	137	—	—
Amounts due from subsidiaries	244,532,160	244,532,160	35,551,151
Total current assets	244,532,297	244,532,160	35,551,151
Investments in subsidiaries	1,801,071,015	1,801,071,015	261,847,555
Total assets	2,045,603,312	2,045,603,175	297,398,707

LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities
Accrued expenses and other payables	4,999	5,250	763
Total current liabilities and total liabilities	4,999	5,250	763

Total shareholders’ equity	2,045,598,313	2,045,597,925	297,397,943
Total liabilities and shareholders’ equity	2,045,603,312	2,045,603,175	297,398,707

CONDENSED STATEMENTS OF INCOME


	Year Ended December 31,
	2016	2017	2018	2018
	(RMB)	(RMB)	(RMB)	($)
Operating expenses:
General and administrative	—	—	144	21
Loss from operations	—	—	—	—
Other income:
Interest income	—	—	—	—
Equity in earnings of subsidiaries	63,710,958	176,737,444	(39,215,085)	(5,701,259)
Income before income tax expense	63,710,958	176,737,444	(39,215,085)	(5,701,259)
Income tax expense	—	—	—	—
Net income	63,710,958	176,737,444	(39,215,085)	(5,701,259)

CONDENSED STATEMENTS OF CASH FLOWS


	Year Ended December 31,
	2016	2017	2018	2018
	(RMB)	(RMB)	(RMB)	($)
Net cash provided by operating activities	—	(9)	107	15
Net cash provided by investing activities	—	—	—	—
Net cash provided by financing activities	—	—	—	—
Effect of exchange rate changes on cash and cash equivalents	10	—	(244)	(36)
Net increase/(decrease) in cash	10	(9)	(137)	(21)
Cash—beginning of year	136	146	137	21
Cash—end of year	146	137	—	—

NOTES TO CONDENSED FINANCIAL STATEMENTS

Basis of Presentation

The condensed financial information has been prepared using the same accounting policies as set out in the Company’s consolidated financial statements except that the Registrant has used equity method to account for its investments in subsidiaries.

Investments in subsidiaries

The Registrant records its investments in its subsidiaries under the equity method of accounting as prescribed in FASB ASC Topic 323, “Investment—Equity Method and Joint Ventures”. The Registrant’s investments in subsidiaries are stated at cost plus its equity interest in undistributed earnings of subsidiaries less impairment loss, if any, since inception, and are presented on the Registrant’s balance sheets as “Investments in subsidiaries” and share of the subsidiaries’ income or loss as “Equity in earnings (loss) of subsidiaries”, on the Registrant’s statements of income and comprehensive income.

The Company’s subsidiaries did not distribute any dividend to the Registrant for the years ended December 31, 2016, 2017, and 2018.

Summary of Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2018

Summary of Significant Accounting Policies

Principles of Consolidation and Presentation

Foreign Currency Translation

Convenience Translation into United States Dollar Amounts

Use of Estimates

Cash

Cash includes cash on hand, and cash accounts and interest-bearing savings accounts in the financial institutions.

Accounts Receivable

Inventories

Property, Plant, and Equipment


Buildings and improvements		20 to 30 Years
Machinery		10 Years
Office equipment and furnishing		3 to 5 Years
Motor vehicles		4 to 5 Years

Land Use Rights

Intangible Assets

Valuation of Long-Lived Assets

Value added tax

According to Cai Kuai [2013] No. 36, sales taxes and surcharges has been replaced with value-added taxes effective from May 1, 2016.

Revenue Recognition

Revenues presented on the consolidated statements of income and comprehensive income are net of sales taxes and surcharges.

Cost of Goods Sold

Research and Development Costs

Research and development costs are expensed as incurred. The Company did not incur any material research and development costs for the years ended December 31, 2016, 2017 and 2018.

Advertising Expenses

Costs associated with advertising are expensed as incurred. The Company did not incur any advertising expenses for the years ended December 31, 2016, 2017 and 2018.

Shipping and Handling Costs

Allowance for Doubtful Accounts

Retirement and Other Postretirement Benefits

Borrowing cost

Government Subsidies

Income Taxes

Comprehensive Income (Loss)

Appropriated Retained Earnings

Dividends

Earnings Per Share

The following table sets forth the computation of basic and diluted earnings per share for the years indicated:


	Year Ended December 31,
	2016	2017	2018	2018
	(RMB)	(RMB)	(RMB)	($)
Numerator:
Net income/(loss), representing undistributed earnings available to ordinary shareholder—basic and diluted	63,710,958	176,737,444	(39,215,085)	(5,701,259)

Denominator:
Weighted average number ordinary shares outstanding—basic and diluted	25,725,000	25,725,000	25,725,000	25,725,000
Earnings per share:
Basic and diluted	2.48	6.87	(1.52)	(0.22)

Operating Risk

Concentrations of Credit Risk

Interest Rate Risk

Borrowings and Bonds—The Company’s significant interest-bearing financial liabilities are borrowings and bonds.

The interest rates profile and terms of repayment of the Company’s bonds payable at the end of the reporting periods are disclosed in note 12, to the consolidated financial statements.

Other than the above, other financial assets and liabilities do not have material interest rate risk.

Liquidity Risk

Country Risk

Recently Issued Accounting Pronouncements Adopted and Not Yet Adopted

Recently Issued Accounting Pronouncements

Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2018

Summary of Significant Accounting Policies

Schedule of estimated useful lives for property, plant and equipment


Buildings and improvements		20 to 30 Years
Machinery		10 Years
Office equipment and furnishing		3 to 5 Years
Motor vehicles		4 to 5 Years

Schedule of computation of basic and diluted earnings per share


	Year Ended December 31,
	2016	2017	2018	2018
	(RMB)	(RMB)	(RMB)	($)
Numerator:
Net income/(loss), representing undistributed earnings available to ordinary shareholder—basic and diluted	63,710,958	176,737,444	(39,215,085)	(5,701,259)

Denominator:
Weighted average number ordinary shares outstanding—basic and diluted	25,725,000	25,725,000	25,725,000	25,725,000
Earnings per share:
Basic and diluted	2.48	6.87	(1.52)	(0.22)

Trade Accounts Receivable, Net (Tables)

12 Months Ended

Dec. 31, 2018

Trade Accounts Receivable, Net

Schedule of trade accounts receivable, net


	As of December 31,
	2017	2018	2018
	(RMB)	(RMB)	($)
Trade accounts receivable	509,737,390	126,998,338	18,463,572
Less: Allowance for doubtful accounts	—	—	—
Total trade accounts receivable, net	509,737,390	126,998,338	18,463,572

Inventories (Tables)

12 Months Ended

Dec. 31, 2018

Inventories

Schedule of inventory


	As of December 31,
	2017	2018	2018
	(RMB)	(RMB)	($)
Raw materials	414,172,830	1,387,287,531	201,689,909
Work-in-process	2,681,530	1,764,835	256,579
Finished goods	17,331,071	52,241,134	7,595,044
Total inventories	434,185,431	1,441,293,500	209,541,532

Advance to Suppliers (Tables)

12 Months Ended

Dec. 31, 2018

Advance to Suppliers

Schedule of advances to suppliers


	As of December 31,
	2017	2018	2018
	(RMB)	(RMB)	($)
Advance to granaries (note (i))	559,300,277	—	—
Others	2,895,908	224,554	32,647
Total advance to suppliers	562,196,185	224,554	32,647

Note (i): Advance to granaries represents corn cost paid but related materials and services have not been provided to the Company.

Other Receivables (Tables)

12 Months Ended

Dec. 31, 2018

Other Receivables

Schedule of other receivables


	As of December 31,
	2017	2018	2018
	(RMB)	(RMB)	($)
VAT recoverable (note (i))	45,434,459	176,873,571	25,714,651
Deposit for loan guarantee	17,900,000	15,000,000	2,180,765
Others	3,056,997	70,494	10,249
Total other receivables	66,391,456	191,944,065	27,905,665

Property, Plant and Equipment, Net (Tables)

12 Months Ended

Dec. 31, 2018

Property, Plant and Equipment, Net

Schedule of property, plant and equipment, net


	As of December 31,
	2017	2018	2018
	(RMB)	(RMB)	($)
Buildings and improvements	655,923,713	653,961,713	95,075,805
Machinery	943,742,391	888,973,826	129,242,890
Office equipment and furnishing	1,468,593	1,468,593	213,510
Motor vehicles	1,715,958	1,496,611	217,584
Total cost	1,602,850,655	1,545,900,743	224,749,789
Total accumulated depreciation	(838,181,436)	(955,605,318)	(138,930,067)
Construction in progress	1,386,729	11,634,637	1,691,494
Total property, plant, and equipment, net	766,055,948	601,930,062	87,511,216

Land Use Rights, Net (Tables)

12 Months Ended

Dec. 31, 2018

Land Use Rights, Net.

Summary of land use rights


	As of December 31,
	2017	2018	2018
	(RMB)	(RMB)		($)
Land use rights at cost	144,726,756	144,045,981		20,942,033
Accumulated amortization	(17,099,127)	(20,104,267)		(2,922,846)
Total land use rights, net	127,627,629	123,941,714	$	18,019,187

Schedule of future amortization of land use rights


		(RMB)
Years Ending December 31,		Amount
2019		2,832,576
2020		2,832,576
2021		2,832,576
2022		2,832,576
2023		2,832,576
Thereafter		109,778,834
Total		123,941,714

Accrued Expenses and Other Payables (Tables)

12 Months Ended

Dec. 31, 2018

Accrued Expenses and Other Payables

Summary of accrued expenses and other payables


	As of December 31,
	2017	2018	2018
	(RMB)	(RMB)	($)
Payroll and welfare payables	22,288,807	15,695,733	2,281,914
VAT and other tax payables	28,569,804	23,081,723	3,355,722
Other payables and accruals	3,911,569	2,915,745	423,903
Total accrued expenses and other payables	54,770,180	41,693,201	6,061,539

Borrowings (Tables)

12 Months Ended

Dec. 31, 2018

Borrowings

Schedule of borrowings


	December 31,
	2017	2018	2018
	RMB	RMB	$
• Agricultural Bank of China

All borrowings under the loan agreements were guaranteed by third party companies. These loans have been repaid as of December 31, 2018. The interest rate is 4.35%.	320,000,000	—	—

• Agricultural Bank of China

The amount of RMB43,200,000 will be due on January 4, 2019. The amount of RMB40,000,000 will be due on January 28, 2019. The amount of RMB10,000,000 will be due on June 7, 2019. The amount of RMB20,000,000 will be due on June 13, 2019. The amount of RMB20,000,000 will be due on July 15, 2019. The amount of RMB40,000,000 will be due on August 15, 2019. The amount of RMB20,000,000 will be due on September 12, 2019. The amount of RMB30,000,000 will be due on October 10, 2019. The amount of RMB20,000,000 will be due on October 11, 2019. The amount of RMB30,000,000 will be due on October 26, 2019. The amount of RMB10,000,000 will be due on November 5, 2019. The amount of RMB40,000,000 will be due on November 9, 2019. All borrowings under the loan agreements are guaranteed by third party companies. The interest rate is 4.35%.	—	323,200,000	46,988,225

• Agricultural Bank of China

The amount of RMB33,319,295 will be due on September 28, 2019. The borrowings under this loan agreement is guaranteed by Mr. Wang, Jingmiao, the CEO of the Company, and Shandong Borun. The interest rate is 5.0025%.	—	33,319,295	4,844,104

• Construction Bank of China

The amount of RMB114,972,579 was repaid during the year of 2018. The amount of RMB84,427,421 was renewed and will be payable in 2019. All borrowings under the loan agreements were guaranteed by Shandong Borun, Mr. Jinmiao Wang, the CEO of the Company, and his family members. The Company also pledged its fixed assets as collateral. The interest rate is 5.22%.	199,800,000	—	—

• Construction Bank of China

The amount of RMB30,000,000 will be due on February 11, 2019. The amount of RMB25,000,000 will be due on March 6, 2019. The amount of RMB20,000,000 will be due on March 15, 2019. The amount of RMB19,827,421 will be due on March 16, 2019. The amount of RMB20,000,000 will be due on April 12, 2019. The amount of RMB25,000,000 will be due on April 21, 2019. The amount of RMB20,000,000 will be due on May 9, 2019. The amount of RMB37,100,000 will be due on December 29, 2019.

All borrowings under the loan agreements were guaranteed by Shandong Borun, Wang Jinmiao, the CEO of the Company, and his family members. The Company also pledged its fixed assets as collateral. The annual interest rate ranges from 4.785% to 5.655%.	—	196,927,421	28,630,167

• CITIC Bank

This loan was repaid in 2018. The borrowing under the loan agreement was guaranteed by Shandong Borun, Wang Jinmiao, the CEO of the Company, and two third-party companies. The interest rate is 5.655%.	129,867,011	—	—

• CITIC Bank

The amount of RMB129,000,000 will be due on October 15, 2019. The borrowing under the loan agreement was guaranteed by Shandong Borun, Wang Jinmiao, the CEO of the Company, and two third-party companies. The interest rate is 5.8725%.	—	129,000,000	18,754,582

• Daqing Rural Commercial Bank

The amount of RMB49,000,000 was originally due on September 7, 2018 with annual interest rate of 3.50%. In 2018, the Company renewed the loan and the new due date is August 17, 2019. The new interest rate is 2.917% per month. The loan is guaranteed by a third party guarantee company. Daiqing Borun provided the counter guarantee for this company which is pledged by property, plant and equipment and land use rights and by Shandong Borun, the Company’s CEO, two natural persons and three third-party companies simultaneously.	49,000,000	49,000,000	7,123,834
Total	698,667,011	731,446,715	106,340,912

Income Tax Expenses (Tables)

12 Months Ended

Dec. 31, 2018

Income Tax Expenses

Summary of income tax expenses


	Year Ended December 31,
	2016	2017	2018	2018
	(RMB)	(RMB)	(RMB)	($)
Current	19,481,789	58,912,481	16,522,472	2,402,109
Deferred	1,755,197	—	—	—
Income tax expenses	21,236,986	58,912,481	16,522,472	2,402,109

Schedule of reconciliation between total income tax expenses and the amount computed by applying the statutory income tax rate to income before income tax expenses


	Year Ended December 31,
	2016		2017		2018
Statutory rate	25.00	%	25.00	%	25.00	%
Expenses not deductible	—	%	—	%	—	%
Effective tax rate	25.00	%	25.00	%	25.00	%

Segment Information (Tables)

12 Months Ended

Dec. 31, 2018

Segment Information

Schedule of contributions of the major activities, profitability information and asset information of reportable segments


	Year ended December 31,
	2016			2017			2018
		Inter-	Profit		Inter-	Profit		Inter-	Profit
	Net	segment	(loss)	Net	segment	(loss)	Net	segment	(loss)
	sales	sales	before tax	sales	sales	befor tax	sales	sales	before tax
	(RMB)	(RMB)	(RMB)	(RMB)	(RMB)	(RMB)	(RMB)	(RMB)	(RMB)
Segment:
Corn-base edible alcohol and its by-products	2,034,302,643	—	79,446,037	2,031,865,359	—	79,446,037	1,280,313,234	—	(16,108,554)
Chemical products	98,377,542	—	5,501,907	109,006,620	—	5,501,907	523,567,964	—	(6,584,059)
Segment total	2,132,680,185		84,947,944	2,140,871,979		84,947,944	1,803,881,198		(22,692,613)

Reconciliation to consolidated totals:
Sales eliminations	—	—	—	—	—	—	—	—	—
Consolidated totals:
Revenues	2,132,680,185	—		2,140,871,979	—		1,803,881,198	—
Revenues ($)							262,256,112	—

Income before income taxes			84,947,944			235,649,925			(22,692,613)
Income before income taxes ($)									(3,299,150)


	Year ended December 31,
	2016			2017			2018
	Interest	Interest	Income tax	Interest	Interest	Income tax	Interest	Interest	Income tax
	income	expense	expense	Income	expense	expense	Income	expense	expense
	(RMB)	(RMB)	(RMB)	(RMB)	(RMB)	(RMB)	(RMB)	(RMB)	(RMB)
Segment:
Corn-base edible alcohol and its by-products	4,043,903	52,669,508	17,524,049	4,154,446	66,125,464	56,120,900	3,830,674	62,382,917	7,303,298
Chemical products	—	—	3,712,937	—	—	2,791,581	—	—	9,219,174
Consolidated total	4,043,903	52,669,508	21,236,986	4,154,446	66,125,464	58,912,481	3,830,674	62,382,917	16,522,472

Consolidated total ($)							556,920	9,069,499	2,402,109


	As of and Year ended December 31,
	2016			2017			2018
			Depreciation			Depreciation			Depreciation
	Identifiable	Capital	and	Identifiable	Capital	and	Identifiable	Capital	and
	assets	expenditure	amortization	assets	expenditure	amortization	assets	expenditure	amortization
	(RMB)	(RMB)	(RMB)	(RMB)	(RMB)	(RMB)	(RMB)	(RMB)	(RMB)
Segment:
Corn-base edible alcohol and its by-products	2,871,332,164	—	105,774,948	2,919,052,502	2,631,729	98,816,218	2,902,982,823	—	95,966,036
Chemical products	279,306,560	3,592,397	14,798,770	278,172,337	—	16,832,668	213,038,029	—	14,235,107
Segment totals	3,150,638,724	3,592,397	120,573,718	3,197,224,839	2,631,729	115,648,886	3,116,020,852	—	110,201,143
Reconciliation to consolidated totals:
Elimination of receivables from intersegments	—	—	—	—	—	—	—	—	—
Consolidated totals	3,150,638,724	3,592,397	120,573,718	3,197,224,839	2,631,729	115,648,886	3,116,020,852	—	110,201,143

Consolidated totals ($)							453,020,695		16,021,522

Condensed Financial Information of New Borun (Tables)

12 Months Ended

Dec. 31, 2018

Condensed Financial Information of New Borun

CONDENSED BALANCE SHEETS


	As of December 31,
	2017	2018	2018
	(RMB)	(RMB)	($)
ASSETS
Current assets
Cash	137	—	—
Amounts due from subsidiaries	244,532,160	244,532,160	35,551,151
Total current assets	244,532,297	244,532,160	35,551,151
Investments in subsidiaries	1,801,071,015	1,801,071,015	261,847,555
Total assets	2,045,603,312	2,045,603,175	297,398,707

LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities
Accrued expenses and other payables	4,999	5,250	763
Total current liabilities and total liabilities	4,999	5,250	763

Total shareholders’ equity	2,045,598,313	2,045,597,925	297,397,943
Total liabilities and shareholders’ equity	2,045,603,312	2,045,603,175	297,398,707

CONDENSED STATEMENTS OF INCOME


	Year Ended December 31,
	2016	2017	2018	2018
	(RMB)	(RMB)	(RMB)	($)
Operating expenses:
General and administrative	—	—	144	21
Loss from operations	—	—	—	—
Other income:
Interest income	—	—	—	—
Equity in earnings of subsidiaries	63,710,958	176,737,444	(39,215,085)	(5,701,259)
Income before income tax expense	63,710,958	176,737,444	(39,215,085)	(5,701,259)
Income tax expense	—	—	—	—
Net income	63,710,958	176,737,444	(39,215,085)	(5,701,259)

CONDENSED STATEMENTS OF CASH FLOWS


	Year Ended December 31,
	2016	2017	2018	2018
	(RMB)	(RMB)	(RMB)	($)
Net cash provided by operating activities	—	(9)	107	15
Net cash provided by investing activities	—	—	—	—
Net cash provided by financing activities	—	—	—	—
Effect of exchange rate changes on cash and cash equivalents	10	—	(244)	(36)
Net increase/(decrease) in cash	10	(9)	(137)	(21)
Cash—beginning of year	136	146	137	21
Cash—end of year	146	137	—	—

Description of Business (Details)				12 Months Ended
Description of Business (Details)	Nov. 15, 2012	Jul. 10, 2008 CNY (¥)	Jul. 09, 2008 CNY (¥)	Dec. 31, 2018 USD ($) segment	Dec. 31, 2018 CNY (¥) segment	Dec. 31, 2017 CNY (¥)	Dec. 31, 2016 CNY (¥)	Dec. 31, 2015 CNY (¥)	Mar. 31, 2010	Dec. 31, 2008
Description of business
Payments for facility improvements						¥ 950,000	¥ 3,592,397
Income before income taxes				$ (3,299,150)	¥ (22,692,613)	235,649,925	84,947,944
Number of reportable segments \| segment				2	2
Operating segments
Description of business
Income before income taxes					¥ (22,692,613)	¥ 84,947,944	84,947,944
Foam insulation \| Operating segments
Description of business
Income before income taxes							¥ 810,840	¥ (6,891,333)
Income before income tax expenses (as a percentage)							1.00%	(4.00%)
New Borun \| Golden Direction
Description of business
Percentage of voting interests acquired									100.00%
New Borun \| China High
Description of business
Percentage of voting interests acquired									25.76%
Golden Direction \| China High
Description of business
Percentage of voting capital stock held									74.24%
China High \| Shandong Borun
Description of business
Percentage of direct control	100.00%
China High \| Shandong Borun
Description of business
Percentage of voting interests acquired										100.00%
Shandong Borun \| Daqing Borun
Description of business
Total purchase price			¥ 139,000,000
Payments for facility improvements		¥ 110,000,000
Shandong Borun \| Daqing Borun \| Minimum
Description of business
Idle period prior to acquisition			1 year

Summary of Significant Accounting Policies - Foreign Currency Translation (Details)	Dec. 31, 2018 ¥ / $
Summary of Significant Accounting Policies
Rate used to convert RMB to USD	6.87832

Summary of Significant Accounting Policies - Property, Plant, and Equipment (Details)	12 Months Ended
	Dec. 31, 2018
Buildings and improvements \| Minimum
Property, plant and equipment, net
Estimated useful lives	20 years
Buildings and improvements \| Maximum
Property, plant and equipment, net
Estimated useful lives	30 years
Machinery
Property, plant and equipment, net
Estimated useful lives	10 years
Office equipment and furnishing \| Minimum
Property, plant and equipment, net
Estimated useful lives	3 years
Office equipment and furnishing \| Maximum
Property, plant and equipment, net
Estimated useful lives	5 years
Motor vehicles \| Minimum
Property, plant and equipment, net
Estimated useful lives	4 years
Motor vehicles \| Maximum
Property, plant and equipment, net
Estimated useful lives	5 years

Summary of Significant Accounting Policies - Land Use Rights, Intangible Assets, Impairment of Long-Lived Assets (Details)	12 Months Ended
	Dec. 31, 2018 USD ($)	Dec. 31, 2018 CNY (¥)	Dec. 31, 2017 CNY (¥)	Dec. 31, 2016 CNY (¥)
Impairment or Disposal of Tangible Assets Disclosure
Impairment loss	$ 7,268,586	¥ 49,995,656	¥ 0	¥ 0
Land use rights
Intangible Assets, Net
Useful life	50 years	50 years
Production license
Intangible Assets, Net
Useful life	5 years	5 years
Production license renewal term	5 years	5 years

Summary of Significant Accounting Policies - Value Added, Consumption and Income Taxes, Retirement Benefits, Appropriated Retained Earnings (Details)	12 Months Ended
	Dec. 31, 2018 USD ($)	Dec. 31, 2018 CNY (¥)	Dec. 31, 2017 CNY (¥)	Dec. 31, 2016 CNY (¥)	Dec. 31, 2018 CNY (¥)
Significant Accounting Policy
Input VAT paid for purchase of corns but not yet validated by the PRC Taxing Authority	$ 25,714,651		¥ 45,179,459		¥ 176,873,571
Retirement and other postretirement benefits
Expense for employee benefits	1,947,290	¥ 13,394,085	11,558,233	¥ 10,016,774
Interests capitalized as borrowing cost in property, plant and equipment		0	0	0
Government subsidy	$ 0		117,216,600	0
Uncertain tax positions			0		¥ 0
Estimated interest costs and penalties provided for uncertain tax positions		¥ 0	0	0
PRC
Retirement and other postretirement benefits
Statute of limitations period	5 years	5 years
Threshold percentage to determine whether statutory surplus reserves can be converted into capital	25.00%	25.00%
Required minimum percentage of after-tax-profit allocated to statutory surplus reserve	10.00%	10.00%
Threshold percentage of statutory surplus reserves of the registered capital, used as criteria of allocation requirement	50.00%	50.00%
Transfer to statutory reserves	$ 677,111	¥ 4,657,384	¥ 17,673,744	¥ 6,371,096
PRC \| Shandong Borun
Retirement and other postretirement benefits
Annual percentage of after-tax-profit allocated to statutory surplus reserve	10.00%	10.00%
PRC \| Daqing Borun
Retirement and other postretirement benefits
Annual percentage of after-tax-profit allocated to statutory surplus reserve	10.00%	10.00%
Minimum
Significant Accounting Policy
Value added tax rate (as a percent)	0.00%	0.00%
Maximum
Significant Accounting Policy
Value added tax rate (as a percent)	17.00%	17.00%

Summary of Significant Accounting Policies - Earnings Per Share (Details)	12 Months Ended
	Dec. 31, 2018 USD ($) $ / shares shares	Dec. 31, 2018 CNY (¥) ¥ / shares shares	Dec. 31, 2017 CNY (¥) ¥ / shares shares	Dec. 31, 2016 CNY (¥) ¥ / shares shares
Summary of Significant Accounting Policies
Net income/(loss), representing undistributed earnings available to ordinary shareholder-basic and diluted	$ (5,701,259)	¥ (39,215,085)	¥ 176,737,444	¥ 63,710,958
Weighted average number of ordinary shares outstanding - basic and diluted	25,725,000	25,725,000	25,725,000	25,725,000
Basic and diluted (in dollars per share) \| (per share)	$ (0.22)	¥ (1.52)	¥ 6.87	¥ 2.48
Operating Risk
concentration of risk	25.00%	25.00%

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References + Details

Trade Accounts Receivable, Net (Details)	Dec. 31, 2018 USD ($)	Dec. 31, 2018 CNY (¥)	Dec. 31, 2017 CNY (¥)
Trade Accounts Receivable, Net
Trade accounts receivable	$ 18,463,572	¥ 126,998,338	¥ 509,737,390
Less: Allowance for doubtful accounts	0	0	0
Total trade accounts receivable, net	$ 18,463,572	126,998,338	509,737,390
Trade accounts receivables pledged as collateral for borrowings from financial institutions		¥ 0	¥ 0

Inventories (Details)	Dec. 31, 2018 USD ($)	Dec. 31, 2018 CNY (¥)	Dec. 31, 2017 CNY (¥)
Inventories
Raw materials	$ 201,689,909	¥ 1,387,287,531	¥ 414,172,830
Work-in-process	256,579	1,764,835	2,681,530
Finished goods	7,595,044	52,241,134	17,331,071
Total inventories	$ 209,541,532	1,441,293,500	434,185,431
Raw materials
Inventories
Amount pledged as collateral for borrowings from financial institutions		¥ 0	¥ 0

Advance to Suppliers (Details)	Dec. 31, 2018 USD ($)	Dec. 31, 2018 CNY (¥)	Dec. 31, 2017 CNY (¥)
Advance to Suppliers
Advance to granaries			¥ 559,300,277
Others	$ 32,647	¥ 224,554	2,895,908
Total Advance to suppliers	$ 32,647	¥ 224,554	¥ 562,196,185

Other Receivables (Details)	Dec. 31, 2018 USD ($)	Dec. 31, 2018 CNY (¥)	Dec. 31, 2017 CNY (¥)
Other Receivables
VAT recoverable	$ 25,714,651	¥ 176,873,571	¥ 45,434,459
Deposit for loan guarantee	2,180,765	15,000,000	17,900,000
Others	10,249	70,494	3,056,997
Total other receivables	27,905,665	191,944,065	66,391,456
Input VAT paid for purchase of corns but not yet validated by the PRC Taxing Authority	$ 25,714,651	¥ 176,873,571	¥ 45,179,459

Property, Plant and Equipment, Net (Details)	12 Months Ended
Property, Plant and Equipment, Net (Details)	Dec. 31, 2018 USD ($)	Dec. 31, 2018 CNY (¥)	Dec. 31, 2017 CNY (¥)	Dec. 31, 2016 CNY (¥)	Dec. 31, 2018 CNY (¥)
Property, plant and equipment, net
Total cost	$ 224,749,789		¥ 1,602,850,655		¥ 1,545,900,743
Total accumulated depreciation	(138,930,067)		(838,181,436)		(955,605,318)
Construction in progress	1,691,494		1,386,729		11,634,637
Total property, plant, and equipment, net	87,511,216		766,055,948		601,930,062
Interests capitalized as borrowing cost in property, plant and equipment		¥ 0	0	¥ 0
Impairment loss	7,268,586	49,995,656	0	0
Depreciation expenses	15,485,648	¥ 106,515,229	112,816,310	¥ 115,744,856
Buildings and improvements
Property, plant and equipment, net
Total cost	95,075,805		655,923,713		653,961,713
Machinery
Property, plant and equipment, net
Total cost	129,242,890		943,742,391		888,973,826
Office equipment and furnishing
Property, plant and equipment, net
Total cost	213,510		1,468,593		1,468,593
Motor vehicles
Property, plant and equipment, net
Total cost	$ 217,584		¥ 1,715,958		¥ 1,496,611

Land Use Rights, Net (Details) - Land use rights	Dec. 31, 2018 USD ($)	Dec. 31, 2018 CNY (¥)	Dec. 31, 2017 CNY (¥)
Land Use Rights, Net
Land use rights at cost	$ 20,942,033	¥ 144,045,981	¥ 144,726,756
Accumulated amortization	(2,922,846)	(20,104,267)	(17,099,127)
Total	18,019,187	123,941,714	127,627,629
Amount pledged as collateral for borrowings from the financial institutions	$ 1,428,743	¥ 9,827,352	¥ 10,076,146

Land Use Rights, Net - Future Amortization (Details)	12 Months Ended
Land Use Rights, Net - Future Amortization (Details)	Dec. 31, 2018 USD ($)	Dec. 31, 2018 CNY (¥)	Dec. 31, 2017 CNY (¥)	Dec. 31, 2016 CNY (¥)	Dec. 31, 2018 CNY (¥)
Land Use Rights, Net
Amortization expense	$ 535,874	¥ 3,685,914	¥ 2,832,576	¥ 4,828,862
Land use rights
Land Use Rights, Net
Amortization expense	433,500	2,832,576	2,832,577	2,832,578
Provision for impairment loss charged		¥ 0	0	¥ 0
Future amortization of land use rights
2019					¥ 2,832,576
2020					2,832,576
2021					2,832,576
2022					2,832,576
2023					2,832,576
Thereafter					109,778,834
Total	$ 18,019,187		¥ 127,627,629		¥ 123,941,714

Accrued Expenses and Other Payables (Details)	Dec. 31, 2018 USD ($)	Dec. 31, 2018 CNY (¥)	Dec. 31, 2017 CNY (¥)
Accrued Expenses and Other Payables
Payroll and welfare payables	$ 2,281,914	¥ 15,695,733	¥ 22,288,807
VAT and other tax payables	3,355,722	23,081,723	28,569,804
Other payables and accruals	423,903	2,915,745	3,911,569
Total accrued expenses and other payables	$ 6,061,539	¥ 41,693,201	¥ 54,770,180

Borrowings (Details)																							12 Months Ended
Borrowings (Details)	Dec. 29, 2019 CNY (¥)	Nov. 09, 2019 CNY (¥)	Nov. 05, 2019 CNY (¥)	Oct. 26, 2019 CNY (¥)	Oct. 11, 2019 CNY (¥)	Oct. 10, 2019 CNY (¥)	Sep. 28, 2019 CNY (¥)	Sep. 12, 2019 CNY (¥)	Aug. 15, 2019 CNY (¥)	Jul. 15, 2019 CNY (¥)	Jun. 13, 2019 CNY (¥)	Jun. 07, 2019 CNY (¥)	May 09, 2019 CNY (¥)	Apr. 21, 2019 CNY (¥)	Apr. 12, 2019 CNY (¥)	Mar. 16, 2019 CNY (¥)	Mar. 15, 2019 CNY (¥)	Mar. 06, 2019 CNY (¥)	Feb. 11, 2019 CNY (¥)	Jan. 28, 2019 CNY (¥)	Jan. 04, 2019 CNY (¥)	Sep. 07, 2018 CNY (¥)	Dec. 31, 2019 CNY (¥)	Dec. 31, 2018 USD ($) company person	Dec. 31, 2018 CNY (¥)	Dec. 31, 2017 USD ($)	Dec. 31, 2017 CNY (¥) company	Dec. 31, 2016 CNY (¥)	Aug. 17, 2019	Dec. 31, 2018 CNY (¥) company person
Borrowings
Short-term borrowings																								$ 106,340,912			¥ 698,667,011			¥ 731,446,715
Interest rate (as a percent)																								6.50%			6.50%			6.50%
Bank debt repaid																											¥ 1,087,370,000	¥ 893,900,000
Interest expenses related to borrowings																								$ 5,877,495	¥ 40,427,287	$ 6,840,470	44,696,999
Agricultural Bank of China in 2017
Borrowings
Short-term borrowings																											¥ 320,000,000
Interest rate (as a percent)																											4.35%
Agricultural Bank of China
Borrowings
Short-term borrowings																								$ 46,988,225						¥ 323,200,000
Interest rate (as a percent)																								4.35%						4.35%
Agricultural Bank of China \| Notes payable to bank due January 04, 2019
Borrowings
Bank debt repaid																					¥ 43,200,000
Agricultural Bank of China \| Notes payable to bank due January 28, 2019
Borrowings
Bank debt repaid																				¥ 40,000,000
Agricultural Bank of China \| Notes payable to bank due June 07, 2019
Borrowings
Bank debt repaid												¥ 10,000,000
Agricultural Bank of China \| Notes payable to bank due June 13, 2019
Borrowings
Bank debt repaid											¥ 20,000,000
Agricultural Bank of China \| Notes payable to bank due July 15, 2019
Borrowings
Bank debt repaid										¥ 20,000,000
Agricultural Bank of China \| Notes payable to bank due August 15, 2019
Borrowings
Bank debt repaid									¥ 40,000,000
Agricultural Bank of China \| Notes payable to bank due September 12, 2019
Borrowings
Bank debt repaid								¥ 20,000,000
Agricultural Bank of China \| Notes payable to bank due September 28, 2019
Borrowings
Short-term borrowings																								$ 4,844,104						¥ 33,319,295
Interest rate (as a percent)							5.0025%
Bank debt repaid							¥ 33,319,295
Agricultural Bank of China \| Notes payable to bank due October 10, 2019
Borrowings
Bank debt repaid						¥ 30,000,000
Agricultural Bank of China \| Notes payable to bank due October 11, 2019
Borrowings
Bank debt repaid					¥ 20,000,000
Agricultural Bank of China \| Notes payable to bank due October 26, 2019
Borrowings
Bank debt repaid				¥ 30,000,000
Agricultural Bank of China \| Notes payable to bank due November 05, 2019
Borrowings
Bank debt repaid			¥ 10,000,000
Agricultural Bank of China \| Notes payable to bank due November 09, 2019
Borrowings
Bank debt repaid		¥ 40,000,000
Construction Bank of China in 2017
Borrowings
Short-term borrowings																											¥ 199,800,000
Interest rate (as a percent)																											5.22%
Construction Bank of China in 2017 \| Notes payable to bank due December 31, 2018
Borrowings
Bank debt repaid																									114,972,579
Construction Bank of China in 2017 \| Notes payable to bank due December 31, 2019
Borrowings
Bank debt repaid																							¥ 84,427,421
Construction Bank of China
Borrowings
Short-term borrowings																								$ 28,630,167						¥ 196,927,421
Construction Bank of China \| Minimum
Borrowings
Interest rate (as a percent)																								4.785%						4.785%
Construction Bank of China \| Notes payable to bank due February 11, 2019
Borrowings
Bank debt repaid																			¥ 30,000,000
Construction Bank of China \| Notes payable to bank due March 06, 2019
Borrowings
Bank debt repaid																		¥ 25,000,000
Construction Bank of China \| Notes payable to bank due March 15, 2019
Borrowings
Bank debt repaid																	¥ 20,000,000
Construction Bank of China \| Notes payable to bank due March 16, 2019
Borrowings
Bank debt repaid																¥ 19,827,421
Construction Bank of China \| Notes payable to bank due April 12, 2019
Borrowings
Bank debt repaid															¥ 20,000,000
Construction Bank of China \| Notes payable to bank due April 21, 2019
Borrowings
Bank debt repaid														¥ 25,000,000
Construction Bank of China \| Notes payable to bank due May 09, 2019
Borrowings
Bank debt repaid													¥ 20,000,000
Construction Bank of China \| Notes payable to bank due December 29, 2019
Borrowings
Bank debt repaid	¥ 37,100,000
China Construction Bank \| Maximum
Borrowings
Interest rate (as a percent)																								5.655%						5.655%
China CITIC Bank
Borrowings
Short-term borrowings																								$ 18,754,582			¥ 129,867,011			¥ 129,000,000
Interest rate (as a percent)																								5.8725%			5.655%			5.8725%
Number of third-party companies \| company																								2			2			2
China CITIC Bank \| Notes payable to bank due October 15, 2019
Borrowings
Bank debt repaid																									¥ 129,000,000
Daqing Rural Commercial Bank
Borrowings
Short-term borrowings																								$ 7,123,834			¥ 49,000,000			¥ 49,000,000
Number of third-party companies \| company																								3						3
Number of natural persons \| person																								2						2
Daqing Rural Commercial Bank \| Notes payable to bank due September 07, 2018
Borrowings
Interest rate (as a percent)																						3.50%
Bank debt repaid																						¥ 49,000,000
Daqing Rural Commercial Bank \| Notes payable to bank due August 17, 2019
Borrowings
Interest rate (as a percent)																													2.917%

Bonds Payable (Details)			12 Months Ended
Bonds Payable (Details)	Nov. 02, 2016 USD ($) $ / shares	Nov. 02, 2016 CNY (¥)	Dec. 31, 2018 USD ($)	Dec. 31, 2018 CNY (¥)	Dec. 31, 2017 CNY (¥)	Dec. 31, 2016 CNY (¥)	Dec. 31, 2018 CNY (¥)	Dec. 31, 2017 USD ($)	Dec. 31, 2017 CNY (¥)	Nov. 02, 2016 CNY (¥) ¥ / shares
Bonds Payable
Debt instrument, face amount			$ 43,615,301				¥ 300,000,000	$ 43,615,301	¥ 300,000,000
Debt instrument, fixed interest rate (as a percent)			6.50%				6.50%	6.50%	6.50%
Unamortized debt issuance costs interest rate (as a percentage)			6.75%				6.75%	6.75%	6.75%
Interests incurred			$ 3,192,005	¥ 21,955,630	¥ 20,263,965	¥ 2,865,835
Prepaid interests	$ 432,464		26,422			134,165	¥ 181,737		¥ 781,737	¥ 3,000,000
Cost associated to the debt issuance of Bonds			1,028,663				7,075,472
Amortized deferred expenses			205,523	1,413,655	1,411,537	672,831
Outstanding deferred expenses			582,316			6,830,549	4,005,357		5,419,012
Non-current liabilities
Bonds payable-Outstanding principal non current			28,494,555			293,169,451	195,994,643		¥ 294,580,988
Current liabilities
Bonds payable-Outstanding principal current			14,538,436				¥ 100,000,000
Interest expense
Bonds Payable
Amortized deferred expenses			$ 205,523	¥ 1,413,655	¥ 1,411,537	¥ 244,923
Shandong Borun
Bonds Payable
Debt instrument, face amount	$ 43,615,301									¥ 300,000,000
Face value of Bonds issued (in CNY or USD per share) \| (per share)	$ (14)									¥ 100
Debt instrument, fixed interest rate (as a percent)	6.50%									6.50%
Debt instrument, maturity date	Nov. 02, 2021	Nov. 02, 2021
Amount to be repaid at the end of each of the third, fourth and fifth year life of the Bonds	$ 14,538,434	¥ 100,000,000

Restricted Net Assets (Details)	12 Months Ended
Restricted Net Assets (Details)	Dec. 31, 2018 USD ($)	Dec. 31, 2018 CNY (¥)	Dec. 31, 2017 CNY (¥)
Restricted Net Assets
Required minimum percentage of after-tax-profit allocated to general reserve	10.00%
Threshold percentage of general reserve of the registered capital, used as criteria of allocation requirement	50.00%
Required minimum percentage of after-tax-profit allocated to statutory common reserve	10.00%
Threshold percentage of statutory common reserve of the registered capital, used as criteria of allocation requirement	50.00%
Amount of restricted paid-in-capital and statutory reserve funds	$ 200,250,684	¥ 1,377,388,085	¥ 1,371,710,109

Income Tax Expenses (Details) - CNY (¥)	12 Months Ended
Income Tax Expenses (Details) - CNY (¥)	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Income taxes
Statutory tax rate (as a percent)	25.00%	25.00%	25.00%
Withholding income tax accrued	¥ 0
Cayman Islands \| New Borun
Income taxes
Statutory tax rate (as a percent)	0.00%
British Virgin Islands \| Golden Direction
Income taxes
Statutory tax rate (as a percent)	0.00%
Hong Kong \| China High
Income taxes
Statutory tax rate (as a percent)	16.50%
PRC
Income taxes
Statutory tax rate (as a percent)	25.00%
PRC \| Minimum
Income taxes
Tax rate on dividends (as a percent)	5.00%
PRC \| Maximum
Income taxes
Tax rate on dividends (as a percent)	10.00%

Income Tax Expenses - Current and Deferred Income Taxes (Details)	12 Months Ended
	Dec. 31, 2018 USD ($)	Dec. 31, 2018 CNY (¥)	Dec. 31, 2017 CNY (¥)	Dec. 31, 2016 CNY (¥)
Income Tax Expenses
Current	$ 2,402,109	¥ 16,522,472	¥ 58,912,481	¥ 19,481,789
Deferred				1,755,197
Income tax expenses	$ 2,402,109	¥ 16,522,472	¥ 58,912,481	¥ 21,236,986

Income Tax Expenses - Reconciliation Between The Statutory Tax Rate and the Effective Tax Rate (Details)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Income Tax Expenses
Statutory rate (as a percent)	25.00%	25.00%	25.00%
Effective tax rate (as a percent)	25.00%	25.00%	25.00%

Commitments and Contingencies - Commitments (Details) - CNY (¥)	Dec. 31, 2018	Dec. 31, 2017
Capital commitment for purchase of property, plant and equipment
Commitments and contingencies
Purchase obligations	¥ 0	¥ 11,200,000

Commitments and Contingencies - Guarantees and Indemnities (Details)	Dec. 31, 2018 USD ($)	Dec. 31, 2018 CNY (¥)	Dec. 31, 2017 CNY (¥)
Guarantee of short-term bank loans \| Third parties guaranteed
Commitments and contingencies
Guaranteed amount	$ 81,785,959	¥ 562,550,000	¥ 844,200,000

Segment Information (Details)	12 Months Ended
Segment Information (Details)	Dec. 31, 2018 USD ($) segment	Dec. 31, 2018 CNY (¥) segment	Dec. 31, 2017 CNY (¥)	Dec. 31, 2016 CNY (¥)	Dec. 31, 2018 CNY (¥)
Segment information
Number of reportable segments \| segment	2	2
Net sales	$ 262,256,112	¥ 1,803,881,198	¥ 2,140,871,979	¥ 2,132,680,185
Profit (loss) before tax	(3,299,150)	(22,692,613)	235,649,925	84,947,944
Interest income	556,920	3,830,674	4,154,446	4,043,903
Interest expense	9,069,499	62,382,917	66,125,464	52,669,508
Income tax expense	2,402,109	16,522,472	58,912,481	21,236,986
Identifiable assets	453,020,695		3,197,224,839	3,150,638,724	¥ 3,116,020,852
Capital expenditure			2,631,729	3,592,397
Depreciation and amortization	$ 16,021,522	110,201,143	115,648,886	120,573,718
Operating segments
Segment information
Net sales		1,803,881,198	2,140,871,979	2,132,680,185
Profit (loss) before tax		(22,692,613)	84,947,944	84,947,944
Identifiable assets			3,197,224,839	3,150,638,724	3,116,020,852
Capital expenditure			2,631,729	3,592,397
Depreciation and amortization		110,201,143	115,648,886	120,573,718
Operating segments \| Corn-base edible alcohol and its by-products
Segment information
Net sales		1,280,313,234	2,031,865,359	2,034,302,643
Profit (loss) before tax		(16,108,554)	79,446,037	79,446,037
Interest income		3,830,674	4,154,446	4,043,903
Interest expense		62,382,917	66,125,464	52,669,508
Income tax expense		7,303,298	56,120,900	17,524,049
Identifiable assets			2,919,052,502	2,871,332,164	2,902,982,823
Capital expenditure			2,631,729
Depreciation and amortization		95,966,036	98,816,218	105,774,948
Operating segments \| Chemical products
Segment information
Net sales		523,567,964	109,006,620	98,377,542
Profit (loss) before tax		(6,584,059)	5,501,907	5,501,907
Income tax expense		9,219,174	2,791,581	3,712,937
Identifiable assets			278,172,337	279,306,560	¥ 213,038,029
Capital expenditure				3,592,397
Depreciation and amortization		¥ 14,235,107	¥ 16,832,668	¥ 14,798,770

Condensed Financial Information of New Borun - Condensed Balance Sheets (Details)	Dec. 31, 2018 USD ($)	Dec. 31, 2018 CNY (¥)	Dec. 31, 2017 USD ($)	Dec. 31, 2017 CNY (¥)	Dec. 31, 2016 CNY (¥)	Dec. 31, 2015 CNY (¥)
Current assets
Cash	$ 90,750,611	¥ 624,211,652	$ 105,876,058	¥ 728,249,297	¥ 795,329,065	¥ 495,630,607
Total current assets	347,490,292	2,390,149,076		2,303,541,262
Total assets	453,020,695	3,116,020,852		3,197,224,839	3,150,638,724
Current liabilities
Accrued expenses and other payables	6,061,539	41,693,201		54,770,180
Total liabilities	161,330,095	1,109,679,872		1,151,626,526
Total shareholders' equity	291,690,600	2,006,340,980		2,045,598,313	1,868,799,493	1,805,147,961
Total liabilities and shareholders' equity	453,020,695	3,116,020,852		3,197,224,839
New Borun
Current assets
Cash			$ 21	137	¥ 146	¥ 136
Amounts due from subsidiaries	35,551,151	244,532,160		244,532,160
Total current assets	35,551,151	244,532,160		244,532,297
Investments in subsidiaries	261,847,555	1,801,071,015		1,801,071,015
Total assets	297,398,707	2,045,603,175		2,045,603,312
Current liabilities
Accrued expenses and other payables	763	5,250		4,999
Total liabilities	763	5,250		4,999
Total shareholders' equity	297,397,943	2,045,597,925		2,045,598,313
Total liabilities and shareholders' equity	$ 297,398,707	¥ 2,045,603,175		¥ 2,045,603,312

Condensed Financial Information of New Borun - Condensed Statements of Income (Details)	12 Months Ended
	Dec. 31, 2018 USD ($)	Dec. 31, 2018 CNY (¥)	Dec. 31, 2017 CNY (¥)	Dec. 31, 2016 CNY (¥)
Operating expenses:
General and administrative	$ (7,696,043)	¥ (52,935,840)	¥ (49,015,721)	¥ (48,413,749)
Loss from operations	5,213,429	35,859,630	297,620,943	133,573,549
Other income:
Interest income	556,920	3,830,674	4,154,446	4,043,903
Income (loss) before income tax expenses	(3,299,150)	(22,692,613)	235,649,925	84,947,944
Income tax expense	2,402,109	16,522,472	58,912,481	21,236,986
Net income (loss) attributable to ordinary shareholders	(5,701,259)	(39,215,085)	176,737,444	63,710,958
New Borun
Operating expenses:
General and administrative	21	144
Other income:
Equity in earnings of subsidiaries	(5,701,259)	(39,215,085)	176,737,444	63,710,958
Income (loss) before income tax expenses	(5,701,259)	(39,215,085)	176,737,444	63,710,958
Net income (loss) attributable to ordinary shareholders	$ (5,701,259)	¥ (39,215,085)	¥ 176,737,444	¥ 63,710,958

Condensed Financial Information of New Borun - Condensed Statements of Cash Flows (Details)	12 Months Ended
	Dec. 31, 2018 USD ($)	Dec. 31, 2018 CNY (¥)	Dec. 31, 2017 CNY (¥)	Dec. 31, 2016 CNY (¥)
CONDENSED STATEMENTS OF CASH FLOWS
Net cash provided by operating activities	$ (21,203,729)	¥ (145,846,004)	¥ 140,311,845	¥ 159,931,964
Net cash provided by investing activities	1,107,102	7,615,000	(950,000)	151,193
Net cash provided by financing activities	4,971,180	34,193,359	(206,502,989)	139,615,291
Effect of exchange rate changes on cash and cash equivalents	(5,282)	(36,333)	61,376	10
Net increase/ (decrease) in cash	(15,125,447)	(104,037,645)	(67,079,768)	299,698,458
Cash-beginning of year	105,876,058	728,249,297	795,329,065	495,630,607
Cash-end of year	90,750,611	624,211,652	728,249,297	795,329,065
New Borun
CONDENSED STATEMENTS OF CASH FLOWS
Net cash provided by operating activities	15	107	(9)
Effect of exchange rate changes on cash and cash equivalents	(36)	(244)		10
Net increase/ (decrease) in cash	(21)	(137)	(9)	10
Cash-beginning of year	$ 21	¥ 137	146	136
Cash-end of year			¥ 137	¥ 146