BEIJING, March 28, 2011/PRNewswire-Asia-FirstCall/ -- China New Borun Corporation (NYSE: BORN; "Borun" or the "Company"), a leading producer and distributor of corn-based edible alcohol in China, today announces that the Company has purchased and stored adequate corn supplies at locked-in prices to be used for production in the coming non-harvest season.
During the recent harvest season, the Company reserved a greater quantity of corn to be used for later production in non-harvest season through corn sourcing arrangements with local granaries. As a result, the Company has secured 340,000 tons of corn stored in third-party granaries, and together with corn stored in the Company's self-owned warehouse, it is estimated that all of Borun's 2011 production plans can be sufficiently fulfilled with the corn already on hand.
Mr. Jinmiao Wang, Chairman and Chief Executive Officer of Borun, commented, "Having further enhanced our corn purchase and storage capability, we are confident that Borun is well-positioned to take our sourcing advantage and 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. As we expand our production capacity with the recently completed Phase III facility, we are glad that we have been able to secure corn supplies that can meet our higher demand. We'll continue our effort to engage granaries to secure a greater quantity of lower-priced corn during peak harvest season and store for later use in non-harvest season. Our strong sourcing capability complements our production expertise and nearly 50% increase in total capacity. As such, we are excited and confident that our higher total capacity and solid cost visibility will drive strong revenue and profit growth in 2011."
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, Corn Germ and liquid carbon dioxide 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://ir.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 products, industry and business, 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. Factors that could cause actual results to differ materially include risks and uncertainties, including but not limited to, the possibility that the customers may not perform their obligations under the pre-sale letters of intent and other risks identified in the Company's SEC filings. Actual results, events and performance may differ materially from those presented herein. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. The Company undertakes no obligation to update these forward-looking statements as a result of events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.
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SOURCE China New Borun Corporation