China New Borun Corporation reported unaudited consolidated earnings results for the second quarter and six months ended June 30, 2016. For the quarter, the company reported revenues of RMB 530,379,367 against RMB 720,638,443 a year ago. Operating income was RMB 31,908,499 against RMB 72,310,964 a year ago. Income before income taxes was RMB 19,837,509 against RMB 50,820,466 a year ago. Net income was RMB 14,878,131 against RMB 38,115,350 a year ago. Basic and diluted earnings per share were RMB 0.58 against RMB 1.48 a year ago. Cash flows generated from operating were RMB 204.6 million compared with cash outflow of RMB 59.0 million in the second quarter of 2015. The decrease in net income was primarily due to the decrease in revenue and lower gross margin during the second quarter. Operating income decreased primarily due to lower gross profit earned. The decrease in revenue was mainly due to a sharp decrease in ASP for edible alcohol and its by-products, and decline in sales from crude corn oil due to a temporary shut-down for the crude corn oil facility in Daqing.

For the six months, the company reported revenues of RMB 1,016,961,602 against RMB 1,291,563,662 a year ago. Operating income was RMB 78,301,897 against RMB 118,530,647 a year ago. Income before income taxes was RMB 53,505,984 against RMB 71,868,432 a year ago. Net income was RMB 40,129,488 against RMB 53,901,324 a year ago. Basic and diluted earnings per share were RMB 1.56 against RMB 2.10 a year ago.

Reflecting a lower ASP for edible alcohol and its by-products, the company estimates that its revenue for the third quarter of 2016 will be in the range of RMB 550 million to RMB 600 million, a decrease of approximately 9.3% to a decrease of 16.8% over the same quarter of 2016.