China New Borun Announces Fourth Quarter and Full Year 2012 Unaudited Financial Results
Company Beats Fourth Quarter Guidance
Fourth Quarter 2012 Net Operating Cash Flow of RMB63 Million
Announces RMB300 Million Investment in New Foam Insulation and Chlorinated Polyethylene Plant
SHOUGUANG, China, March 6, 2013 - China New Borun Corporation (NYSE: BORN; “Borun” or the “Company”), a leading producer and distributor of corn-based edible alcohol in China, today announced unaudited financial results for the fourth quarter and full year 2012.
The Company also announced that it would invest RMB300 million to construct a new foam insulation and chlorinated polyethylene (“CPE”) plant.
Mr. Jinmiao Wang, Chairman and Chief Executive Officer of Borun, stated, “Despite a persistently challenging environment that continues to weigh heavily on demand of edible alcohol from our customers in the baijiu and chemical industries, I’m pleased that we were able to exceed our revenue guidance and generate positive income and cash flows from operations. I’m excited about our expansion into promising sectors of foam insulation and CPE that currently experience solid demand and offers great potential for Borun to drive revenue growth, expand margins, and diversify market concentration risks.”
Fourth Quarter 2012 Quick View
— Total revenue decreased 33.9% to RMB503.4 million ($80.1 million[1])
from RMB762.0 million in the fourth quarter of 2011.
— Gross profit decreased 54.7% to RMB54.4 million ($8.7 million) from
RMB120.1 million in the fourth quarter of 2011.
— Net income decreased 70.1% to RMB21.6 million ($3.4 million) from
RMB72.1 million in the fourth quarter of 2011.
— Basic and diluted earnings per American Depositary Share (“ADS”) were
RMB0.84 ($0.13) for the quarter ended December 31, 2012. Each ADS
represents one of the Company’s ordinary shares.
— Net operating cash flow was RMB63.2 million ($10.1 million) in the
fourth quarter of 2012.