China New Borun Secures Corn Supply at Locked-in Prices
SHOUGUANG, China, March 26, 2012 /PRNewswire-Asia/ -- China New Borun Corporation (NYSE: BORN; "Borun" or the "Company"), a leading producer and distributor of corn-based edible alcohol in China, today announced that it has completed the pre-purchase of sufficient corn at locked-in prices to cover its production requirements during the coming non-harvest season.
During the recent harvest season, the Company reserved sufficient corn to be used for later production in the non-harvest season through corn sourcing arrangements with local granaries. As a result, the Company has secured 505,000 tons of corn stored at third-party granaries, and it is estimated that all of Borun's 2012 production plans can be sufficiently fulfilled with the corn already on hand.
Mr. Jinmiao Wang, Chairman and Chief Executive Officer of Borun, remarked, "Having further enhanced our corn purchase and storage capability, we are confident that Borun is well-positioned to use our sourcing advantage to capture more business opportunities in the future. Our ability to lock in attractive prices during the peak harvest season not only provides us with higher cost visibility but also buffers us from potential higher inflation. Our strong relationships with local granaries and our strategic locations in the corn producing regions have helped us achieve this. Together with our successful pre-sales for 2012, we are excited and confident that our assured supply and solid cost visibility will help us continue to operate efficiently and prosper in a cost-rising environment."
About China New Borun Corporation
China New Borun Corporation (NYSE: BORN) is a leading producer and distributor of corn-based edible alcohol in China. Borun's edible alcohol products are primarily sold as an ingredient to producers of baijiu, a popular grain-based alcoholic beverage that is sold throughout China in retail stores, restaurants and bars. The Company also produces DDGS Feed, liquid carbon dioxide and crude corn oil as by-products of edible alcohol production. China New Borun is based in Shouguang, Shandong Province. Additional information about the company can be found at http://www.chinanewborun.com and in documents filed with the U.S. Securities and Exchange Commission, which are available on the SEC's website at www.sec.gov.
All statements included in this press release, other than statements or characterizations of historical fact, are forward-looking statements. These forward-looking statements are based on our current expectations, estimates and projections about our industry, management's beliefs, and certain assumptions made by us, all of which are subject to change. Forward-looking statements can often be identified by words such as "anticipates," "expects," "intends," "plans," "predicts," "believes," "seeks," "estimates," "may," "will," "should," "would," "could," "potential," "continue," "ongoing," similar expressions, and variations or negatives of these words. These forward-looking statements are not guarantees of future results and are subject to risks, uncertainties and assumptions that could cause our actual results to differ materially and adversely from those expressed in any forward-looking statement.
Three Part Advisors, LLC
SOURCE China New Borun Corporation