Kerui Colombia Created a New NPT Record in Daywork Drilling

DONGYING, China, Aug. 22, 2014 /PRNewswire/ — In the first half of 2014, the Z103H well, a Colombian drilling project undertaken by Kerui Petroleum Equipment Co., Ltd. (hereinafter referred to as “Kerui”), was completed smoothly. This well’s drilling period, completion period and construction period are 12.35 days, 22 days and 28.75 days respectively. Having been reduced to 2.5 hours, the Non-Productive Time (NPT) was favorably commented by Party A.

Since 2010 when Kerui started to provide the drilling and construction service for Party A in southern Colombia, this project has encountered many problems, such as difficult production organization, long distance and period of logistics, complexity of local community relations and employment environment, etc. Since the beginning of 2014, Kerui has taken a series of improvement measures, like further enhancing project plan management, strengthening process control, formulating the production and operation plan, the operators shift and incentive plan and the procurement plan in details, controlling the progress and key points, etc., in order to effectively improve production organization and project operation and to resolve relevant problems.

In the daywork drilling service launched at the end of 2013, the NPT indicator has met the requirement proposed by Party A, i.e., no more than 12 hours, and is increasingly optimized. Based on the previous well’s NPT, i.e., 5.5 hours, the Z103H well’s NPT has been reduced to 2.5 hours, thus getting the recognition of Party A.

Honeywell’s UOP Technology Selected to Clean Offshore Natural Gas in the United Kingdom

Gas treating technology includes first membrane-based system on a Floating Production, Storage and Offloading (FPSO) vessel in the North Sea

JAKARTA, Aug. 22, 2014 /PRNewswire/ — UOP LLC, a Honeywell (NYSE: HON) company, announced today that it has been selected by BW Offshore to remove contaminants from natural gas aboard a new Floating Production, Storage and Offloading (FPSO) vessel off the coast of Scotland.

The vessel, which will be leased to Premier Oil, will include a UOP SeparexTM Membrane System to remove carbon dioxide. While the technology has been successfully used elsewhere, this will be the first FPSO in the North Sea to use a membrane-based treatment system. UOP guard bed adsorbents will also be used to remove mercury and hydrogen sulfide. These contaminants must be removed to meet export and end-user specifications, and to protect downstream equipment.

Vast quantities of recoverable natural gas lie under the Earth’s oceans. Accessing, treating and recovering these natural resources can be challenging due to ocean movement, environmental regulations, and space and resource constraints on offshore production facilities. 

“UOP is continually innovating to create lightweight, compact, chemical-free equipment that is ideal for complex offshore gas environment,” said Rebecca Liebert, senior vice president and general manager of Honeywell’s UOP Gas Processing and Hydrogen business unit. “By integrating UOP Separex membrane technology and guard bed adsorbents into a single system, we are able to create a solution that improves gas processing efficiency while reducing operating costs for FPSO operators.”

Scheduled for start-up in 2017, BW Offshore’s FPSO will be located approximately 125 miles east of Aberdeen, Scotland, in the Catcher oil field, in which Premier Oil has a 50 percent operating interest. It will have a processing capacity of 60,000 barrels per day of oil and a storage capacity of 650,000 barrels.

UOP Separex technology upgrades natural gas streams by removing carbon dioxide and water vapor. These contaminants must be removed to meet the quality standards specified by pipeline transmission and distribution companies as well as natural gas end users. Decades of operation in natural gas service have demonstrated that Separex membranes are the most robust for natural gas service and can achieve the longest membrane life in the industry. They eliminate the need for solvents, which could spill and damage the marine ecosystem. To date, more than 130 of UOP’s membrane systems have been installed worldwide.

UOP guard bed adsorbents allow the removal of trace amounts of sulfur or mercury. These high-loading metal oxide adsorbents provide reliable protection for downstream equipment and consistently meet pipeline gas specifications, with no moving parts and no operator intervention.

Honeywell offers a broad range of technologies for natural gas production, processing and transportation. Its UOP Gas Processing and Hydrogen business has supplied technology to more than 3,600 individual process units for gas processing in a broad range of applications throughout the world. The business offers technology, equipment and materials to treat and process natural gas, and to purify hydrogen used in refineries. Its gas technologies extract contaminants such as water, mercury, sulfur and carbon dioxide from raw natural gas. UOP also offers technologies to recover natural gas liquids (NGLs). UOP gas processing solutions are offered as efficient pre-engineered equipment packages or licensed technology.

Honeywell Process Solutions provides advanced automation, monitoring, safety and security systems for the entire gas supply chain to help operators increase plant reliability and efficiency, while reducing costs and risk.

BW Offshore is a leading global provider of floating production services to the oil and gas industry. BW Offshore is the world’s second largest contractor of its kind with a fleet of 14 FPSOs and one Floating Storage and Offloading unit represented in all major oil regions worldwide.

Premier Oil plc is a leading independent exploration and production company with oil and gas interests in the North Sea, South East Asia, Pakistan and the Falkland Islands, as well as exploration interests in Brazil, Iraq and Kenya.

ACE Life Partners with AEON to Offer Life Insurance Through Telesales Channel

BANGKOK, Aug. 22, 2014 /PRNewswire/ — ACE Life, the global life insurance division of ACE Group, today announced a partnership with AEON Insurance Service (Thailand) Company Limited to jointly offer a range of life, personal accident and health insurance products to AEON Thana Sinsap (Thailand) PLC’s customers countrywide via telemarketing.  With the opening of ACE Life Telemarketing Call Center at Ted’s House Building, customers can conveniently purchase life insurance on the phone. 

To provide innovative products via this newly launched distribution channel, ACE Life has launched the ‘Two in One Protector’ plan specifically for this new segment of customers.  It provides death coverage from sickness and accident, dismemberment and total permanent disability from accident.  Premiums start from  as low as seven baht per day with medical expense benefit of 15,000 baht per accident.

Kevin Goulding, Regional President of ACE Life in Asia Pacific said, “Thailand is one of the core markets for ACE Life in Asia Pacific and our partnership with AEON signifies a milestone in our company’s strategy to  expand our  distribution channels.  Committed to strive for better service to our customers, we aim to deliver value added financial protection solutions to our Thai customers.”

Sally O’Hara, Country President of ACE Life Assurance Public Company Limited commented, “We are delighted to be partnering with AEON Insurance Service (Thailand) to provide innovative life insurance products to AEON Thana Sinsap (Thailand) PLC’s customer base.  Our partnership leverages ACE Life’s multi-channel business and service model in Thailand and we look forward to building a long and rewarding relationship with AEON.” 

Kevin Goulding, Regional President of ACE Life in Asia Pacific (center) and Sally O'Hara, Country President of ACE Life in Thailand (left) together with Sakarabhop Dhivarakara, Managing Director of AEON Insurance Service (Thailand) Company Limited (right) presided over the grand opening ceremony of the "ACE Life Telemarketing Call Center" at Ted's House Building on August 6, 2014

Kevin Goulding, Regional President of ACE Life in Asia Pacific (center) and Sally O’Hara, Country President of ACE Life in Thailand (left) together with Sakarabhop Dhivarakara, Managing Director of AEON Insurance Service (Thailand) Company Limited (right) presided over the grand opening ceremony of the “ACE Life Telemarketing Call Center” at Ted’s House Building on August 6, 2014

ABOUT ACE LIFE IN THAILAND

ACE Life Assurance Public Company Limited (ACE Life) is part of the ACE Group, one of the world’s largest multiline property and casualty insurers. With operations in 54 countries, the ACE Group provides commercial and personal property and casualty insurance, personal accident and supplemental health insurance, reinsurance and life insurance to a diverse group of clients. ACE Limited, the parent company of the ACE Group, is listed on the New York Stock Exchange (NYSE: ACE) and is a component of the S&P 500 index. The ACE Group’s core operating insurance companies are rated AA for financial strength by Standard & Poor’s and A++ by A.M. Best.

Specifically to meet the needs of financial protection and security of its broad range of customers, ACE Life in Thailand (ACE Life Assurance Public Company Limited) offers a comprehensive range of quality life insurance products and services.  The company partners with financial institutions and other companies to tailor individual policies for their clients and employees while ACE Life’s team of over 2,500 agents service and support customers throughout the nation.  

More information can be found at www.acelife.co.th.

ACE Life, ACE Group of Companies and ACE Limited are registered trademarks of ACE Limited.

Photo – http://photos.prnasia.com/prnh/20140821/8521404707

Sydney Festival 2015 Headline Act Announced in Southern Hemisphere Exclusive

James Thierree brings Tabac Rouge to Sydney

Travel packages announced

SYDNEY, Aug. 22, 2014 /PRNewswire/ Destination New South Wales (DNSW), the NSW Government’s tourism and major events agency, and Sydney Festival have announced the headline act for 2015 — the renowned James Thierree will return to Sydney Festival with Tabac Rouge, his largest and most extravagant work to date, in a Sydney and Southern Hemisphere exclusive.

James Thierree's spectacular theatrics are coming to Sydney Festival 2015 with Tabac Rouge

James Thierree’s spectacular theatrics are coming to Sydney Festival 2015 with Tabac Rouge

Acrobat, musician, dancer, actor, mime, choreographer — Thierree is returning to Sydney Festival for the fourth time after sell-out seasons of Junebug Symphony (2003), Bright Abyss (2006) and Au Revoir Parapluie (2008). In Tabac Rouge, Thierree pushes the boundaries of dance, circus and theatre in the roles of director, choreographer and set designer to deliver a performance that Thierree describes as being about “desire, power, systems and mechanisms of society, and of how people organise themselves”.

Tabac Rouge, which will run from 7-23 January at Sydney Theatre, features a highly skilled cast of acrobats and dancers who weave a physically daring production filled with spectacular theatrics under Thierree’s unique direction. The choreography is complemented by Victoria Thierree’s costume design and a dynamic score that ranges from Matthieu Chedid to Vivaldi.  Tabac Rouge contains no spoken word, making the performance ideal for international visitors to enjoy without language barriers.

Sydney Festival 2015 will feature hundreds of world class events and attract visitors from all over the globe. The full 2015 program will be announced on 23 October 2014, however visitors are encouraged to book now to take advantage of great value travel packages and avoid disappointment.

Three packages are on offer:  

The Star*

  • One night’s accommodation at luxury hotel, The Darling
  • $50 Food and Beverage credit to enjoy at The Star’s bars, signature restaurants (Balla, Black by Ezard & Sokyo) and Fat Noodle
  • Premium or A Reserve ticket to Tabac Rouge 
  • Quote promo code SYDFEST15 (case sensitive) when booking online only. Or call Guest Services 1800 800 830

Visit star.com.au/sydneyfestival.

Accor Packages

Harbour Rocks Hotel – from $224 per person*

  • Overnight accommodation in a Heritage Queen room in Sydney’s historic Rocks area
  • Full Breakfast for served in Scarlett Restaurant  
  • A Reserve ticket to Tabac Rouge

Visit www.accorhotels.com/sydneyfestival.

Quay West Suites Sydney — from $270 per person*

  • Overnight accommodation in a 1 bedroom city view suite overlooking beautiful Sydney harbour
  • Breakfast for 2 in Harrington Restaurant
  • Premium ticket to Tabac Rouge

Visit www.accorhotels.com/sydneyfestival.

Tickets for Tabac Rouge are on sale now at www.sydneyfestival.org.au/tabac.

*Travel Package Conditions: Subject to availability. Credit Card details required to secure booking. Package prices are per person and are based on 2 guests per package, in queen bedding (Twin bedding available on request directly with the hotel). Packages are pre-paid and non-refundable.  Valid for bookings from 23 August – 12 October 2014 for stays between 09 – 22 January 2015, inclusive. Tabac Rouge tickets valid for performance on the day for which the accommodation is booked only.   

About Destination NSW:

Destination NSW is the lead Government agency for the New South Wales (NSW) tourism and major events sectors. Our role is to market Sydney and NSW as one of the world’s premier tourism and major events destinations; to secure major sporting and cultural events; to work in partnership with Business Events Sydney to win major international conventions and incentive travel reward programs; to develop and deliver initiatives that will drive visitor growth throughout the State; to achieve the NSW Government’s goal of doubling overnight visitor expenditure within the State by the year 2020.

From food and wine festivals to surf competitions, world class sporting events to celebrations of arts and culture, New South Wales has an Annual Calendar of Events that celebrates the diverse facets of Australian contemporary life. Sydney is unrivalled in Australia in its capacity to stage exclusive events that have the whole world tuning in. Destination NSW has been at the forefront in creating and winning world-class events that put Sydney on the global front page.

Media contacts:

Corrine Cowlishaw, +61299311462, corinne.cowlishaw@dnsw.com.au
Melissa Wilson, +61-299311156, melissa.wilson@dnsw.com.au  

Tabac Rouge is perfect for international visitors to Sydney to enjoy
Tabac Rouge is perfect for international visitors to Sydney to enjoy

 

Tabac Rouge will show at Sydney Festival in a Southern Hemisphere exclusive

Tabac Rouge will show at Sydney Festival in a Southern Hemisphere exclusive

Photo – http://photos.prnasia.com/prnh/20140821/8521404695-a
Photo – http://photos.prnasia.com/prnh/20140821/8521404695-b
Photo – http://photos.prnasia.com/prnh/20140821/8521404695-c

Aptuit SSCI Adds Ultra High Resolution Q-TOF Mass Spectrometer for Large & Small Molecule Analyses

GREENWICH, Connecticut, Aug. 22, 2014 /PRNewswire/ — Aptuit LLC announces that Aptuit SSCI, located in West Lafayette, Indiana, has enhanced its capabilities in the areas of structure determination and characterization of small and large molecules, including biologic drugs, metabolites, and polymers, through the addition of the Bruker maXisPlus Q-TOF mass spectrometer.

In making the announcement, Dr. Jonathan Goldman, CEO, Aptuit, said, “The expanded large molecule capability enhances our early development support for the fastest growing sector of the pharmaceutical industry and provides our scientists with the ability to identify active and/or high percentage metabolites in drugs as outlined in the United States Food and Drug Administration Guidance on Metabolites in Safety Testing (MIST).”

Dr. Patrick Tishmack, Director of Analytical Development at Aptuit SSCI, explained that ultra high mass resolution is particularly important in conducting impurity assays of drug substances and drug products, with a limit of detection in the pg/mL to fg/mL range. He clarified the significance of the high sensitivity by saying, “Q-TOF mass spectrometry is a fast and accurate analytical method for characterizing low levels of analytes yet its range from 20 Da to 40,000 Da also enables the analyses of small molecules, polymers, carbohydrates, oligonucleotides, and proteins such as antibodies.”

According to Dr. Tishmack, this addition brings significant value to Aptuit’s clients. “When high resolution mass spectrometry capability is coupled with Aptuit SSCI’s industry-leading expertise in solid state chemistry, the resulting data and corresponding expert scientific interpretation will be at a standard that is unmatched in the contract preclinical research industry.”

The Q-TOF MS, which will be installed and operational by October 2014, will allow unambiguous assignment of molecular formulae for small molecules. In addition to faster sample analysis, generally easier method development is achieved through its implementation. The equipment’s higher throughput translates into a more rapid turnaround for a large number of samples.

For more information, please send an email to info@ssci-inc.com or contact Aptuit SSCI at + 1 800 375 2179.

Aptuit LLC provides the most complete set of integrated early discovery to mid-phase drug development services in the pharmaceutical industry including Drug Design & Discovery, Preclinical Biosciences, API Development and Manufacture, Solid State Chemistry, Pharmaceutical Sciences and Aptuit INDiGO® (a fixed-cost program that accelerates drug development). Fully integrated drug discovery & development services are available from a single site at The Aptuit Center for Drug Discovery & Development in Verona, Italy. The company maintains five global facilities with approximately 700 employees in Europe and the United States. Aptuit LLC is partnered with Welsh, Carson, Anderson & Stowe, one of the world’s leading private equity investors.

For more information about Aptuit, visit www.aptuit.com.

China New Borun Announces Second Quarter 2014 Unaudited Financial Results

BEIJING, August 22, 2014 /PRNewswire/ — China New Borun Corporation (NYSE: BORN; “Borun” or the “Company”), a leading producer and distributor of corn-based edible alcohol in China, today announced its unaudited financial results for the second quarter of 2014.

Mr. Jinmiao Wang, Chairman and Chief Executive Officer of Borun, commented on the results, “Although demand and average selling price for edible alcohol were solid in the first half of the second quarter, the market encountered an unexpected sharp drop nation-wide in demand and average selling price this June. As a result, even though we recorded revenue growth at the high end of our second quarter guidance on better-than-expected volume shipment, our gross profits contracted year-over-year.”

“Despite the challenging month of June, we continued to make progress in ramping up our chlorinated polyethylene (“CPE”) and foam insulation businesses. During the quarter, we successfully scaled our CPE plant to full production capacity and grew total revenue from CPE and foam insulation by 47% sequentially to RMB23.4 million. It is worth noting that the new business has surpassed its gross breakeven point during the second quarter, and therefore we anticipate incremental positive contributions to profitability from the new business in the months ahead,” Mr. Wang concluded.

Second Quarter 2014 Quick View

  • Total revenue increased 6.4% to RMB668.9 million ($108.7 million[1]) from RMB628.5 million in the second quarter of 2013.
  • Gross profit decreased 5.4% to RMB67.5 million ($11.0 million) from RMB71.4 million in the second quarter of 2013.
  • Net income decreased 17.8% to RMB21.0 million ($3.4 million) from RMB25.5 million in the second quarter of 2013.
  • Basic and diluted earnings per American Depositary Share (“ADS”) were RMB0.82 ($0.13) for the quarter ended June 30, 2014. Each ADS represents one of the Company’s ordinary shares.

Second Quarter 2014 Financial Performance

For the second quarter of 2014, revenue increased by 6.4% year-over-year to RMB668.9 million ($108.7 million) from RMB628.5 million in the same period of 2013. The increase in revenue was mainly attributable to higher sales volume of edible alcohol, partially offset by lower average selling prices, as well as incremental revenue contribution from the Company’s CPE and foam insulation businesses that were introduced in the fourth quarter of 2013.

Revenue breakdown by product lines is as follows:

  • Revenue from edible alcohol increased by 4.1% to RMB425.9 million ($69.2 million) in the second quarter of 2014, compared to RMB409.0 million in the second quarter of 2013. Driven by higher production, the sales volume of edible alcohol in the second quarter of 2014 increased by 6.1% year-over-year to 83,505 tons, while the average selling price of edible alcohol decreased by 1.9% year-over-year to RMB5,100 per ton.
  • Revenue from DDGS Feed increased by 2.1% to RMB159.8 million ($26.0 million) in the second quarter of 2014, compared to RMB156.5 million in the second quarter of 2013. The sales volume of DDGS Feed in the second quarter of 2014 decreased by 1.2% year-over-year to 74,155 tons, while the average selling price increased by 3.3% year-over-year to RMB2,155 per ton.
  • Revenue from liquid carbon dioxide decreased by 17.0% to RMB11.4 million ($1.8 million) in the second quarter of 2014 compared to RMB13.7 million in the second quarter of 2013. The sales volume of liquid carbon dioxide in the second quarter of 2014 decreased by 2.6% year-over-year to 32,751 tons, and the average selling price decreased by 14.8% year-over-year to RMB347 per ton.
  • Revenue from crude corn oil decreased by 1.4% to RMB48.5 million ($7.9 million) in the second quarter of 2014 compared to RMB49.2 million in the second quarter of 2013. The sales volume of crude corn oil in the second quarter of 2014 increased by 4.0% year-over-year to 6,746 tons, while the average selling price decreased by 5.3% year-over-year to RMB7,185 per ton.
  • Revenue from CPE was RMB21.3 million ($3.5 million) in the second quarter of 2014, and the sales volume was 2,448 tons at an average selling price of RMB8,718 per ton. Revenue from foam insulation was RMB2.0 million ($0.3 million) in the second quarter of 2014, and the sales volume was 1,868 cubic meters at an average selling price of RMB1,094 per cubic meter.

During the second quarter of 2014, gross profit decreased by 5.4% to RMB67.5 million ($11.0 million) from RMB71.4 million in the same period of 2013. Gross margin for the second quarter of 2014 decreased to 10.1%, from 11.4% in the same period of 2013, which was primarily attributable to a decrease in average selling price of edible alcohol, as well as lower gross margin from the new CPE and foam insulation businesses during its initial production ramp up.

Operating income decreased by 7.8% to RMB55.3 million ($9.0 million) in the second quarter of 2014, from RMB60.0 million in the same period of 2013, primarily due to lower gross profit earned.

Selling expenses were RMB1.5 million ($0.2 million) in the second quarter of 2014, which remained stable with that in the same period of 2013.

General and administrative expenses increased by RMB0.8 million, or 8.0% to RMB 10.7 million ($1.7 million) in the second quarter of 2014, from RMB9.9 million in the same period of 2013, mainly due to the increasing management cost for our new CPE and foam insulation businesses.

Income tax expenses in the second quarter of 2014 were RMB7.0 million ($1.1 million), representing an effective tax rate of 25.0%.

Net income decreased by 17.8% to RMB21.0 million ($3.4 million) in the second quarter of 2014, compared to RMB25.5 million in the same quarter of 2013. In the second quarter of 2014, basic and diluted earnings per share and per ADS were RMB0.82 ($0.13), and the Company had 25.7 million weighted average basic and diluted shares outstanding.

As of June 30, 2014, cash and bank deposits of RMB361.8 million ($58.8 million) decreased by RMB159.5 million, compared with RMB521.3 million as of December 31, 2013. Cash flows provided by operating activities for the second quarter of 2014 were RMB77.3 million ($12.6 million), compared with operating cash outflow of $148.1 million in the second quarter of 2013.

Financial Outlook

During the third quarters, the Company historically conducts an annual maintenance of its production facilities, which requires a temporary shut down of all production lines for edible alcohol for approximately one month.

Reflecting the annual maintenance period this summer, and lower average selling prices, the Company estimates that its revenue for the third quarter of 2014 will be in the range of RMB520 million ($84.5 million) to RMB540 million ($87.8 million), an increase of approximately 0.4% to 4.2% over the same quarter of 2013.

This guidance is based on the current market conditions and reflects the Company’s current and preliminary estimates of market and operating conditions and customer demand, which are all subject to change.

Conference Call

Borun’s management will hold a corresponding earnings conference call and live webcast at 8:00 a.m. EDT on Friday, August 22, 2014 (8:00 p.m. Beijing time on Friday, August 22, 2014) to discuss the results and highlights from the second quarter and answer questions from investors. A webcast of the call will be available at http://ir.chinanewborun.com. Listeners may access the call by dialing:

United States Toll Free:

1-866-519-4004

US Toll/International:

1-845-675-0437

Hong Kong Toll Free:

800-930-346

Hong Kong Toll:

852-2475-0994

China Toll Free:

800-819-0121

China Toll Free (Mobile):

400-620-8038

Conference ID:

85386554

A replay of the webcast will be accessible through August 30, 2014 on http://ir.chinanewborun.com or by dialing:

United States toll free:

1-855-452-5696

International:

61-2-8199-0299

Passcode

85386554

About China New Borun Corporation

China New Borun Corporation (NYSE: BORN) is a leading producer and distributor of corn-based edible alcohol sold as an ingredient to producers of baijiu, a popular grain-based alcoholic beverage in China. The Company also produces DDGS Feed, liquid carbon dioxide and crude corn oil as by-products of edible alcohol production, and CPE and foam insulation that are widely used in chemical industries. 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 http://www.sec.gov.

Forward-looking Statements

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.

[1]

This press release contains translations of certain Renminbi amounts into US dollars at specified rates solely for the convenience of readers. Unless otherwise noted, all translations from Renminbi to US dollars for the period ended June 30, 2014 were made at a rate of RMB6.1528 to USD1.00, the rate published by the People’s Bank of China on June 30, 2014. China New Borun Corporation makes no representation that the Renminbi or US dollar amounts referred to in this press release could have been or could be converted into US dollars or Renminbi, at any particular rate or at all.

Contact Information

Asia Bridge Capital Limited
Wendy Sun
Phone: +86-10-8556-9033 (China)
+1-888-870-0798 (U.S.)
Email: wendy.sun@asiabridgegroup.com


CHINA NEW BORUN CORPORATION

UNAUDITED CONSOLIDATED BALANCE SHEETS

December 31, 2013

June 30, 2014

RMB

RMB

US$

Assets

Cash

521,270,799

361,770,279

58,797,666

Restricted cash

42,040,667

32,000,000

5,200,884

Trade accounts receivable, net of allowance for doubtful accounts of nil and nil, respectively

358,463,468

353,450,451

57,445,464

Available-for-sale securities

16,783,869

————

————

Inventories

353,206,120

915,014,772

148,715,182

Advance to suppliers

276,245,034

191,099

31,059

Other receivables

58,510,165

114,562,500

18,619,572

Prepaid expenses

3,773,980

2,299,637

373,755

Deferred income tax assets

248,712

————

————

Total current assets

1,630,542,814

1,779,288,738

289,183,582

Property, plant and equipment, net

1,143,722,628

1,106,121,274

179,775,269

Land use right, net

138,944,251

137,541,648

22,354,318

Intangible assets, net

9,648,771

7,735,649

1,257,257

Other non-current assets

10,697,712

8,130,261

1,321,392

Total assets

2,933,556,176

3,038,817,570

493,891,818

Liabilities and shareholders’ equity

Trade accounts payable

29,272,232

15,877,284

2,580,497

Accrued expenses and other payables

106,574,084

66,479,333

10,804,728

Income taxes payable

9,119,258

7,038,216

1,143,905

Short-term borrowings

620,200,000

732,000,000

118,970,225

Current portion of long-term borrowings

24,000,000

24,000,000

3,900,663

Total current liabilities

789,165,574

845,394,833

137,400,018

Long-term borrowings

48,000,000

36,000,000

5,850,995

Bonds Payable

500,000,000

500,000,000

81,263,815

Total liabilities

1,337,165,574

1,381,394,833

224,514,828

Shareholders’ equity

Ordinary share – (December 31, 2013 and June 30, 2014: par value of RMB0.0068259, 25,725,000 shares issued and outstanding)

175,596

175,596

25,725

Additional paid-in capital

468,132,187

468,132,187

76,084,415

Retained earnings – appropriated

126,356,029

126,356,029

20,536,346

Retained earnings – unappropriated

1,002,921,340

1,063,215,301

172,801,863

Accumulated other comprehensive loss

(1,194,550)

(456,376)

(71,359)

Total shareholders’ equity

1,596,390,602

1,657,422,737

269,376,990

Total liabilities and shareholders’ equity

2,933,556,176

3,038,817,570

493,891,818

CHINA NEW BORUN CORPORATION

UNAUDITED CONSOLIDATED STATEMENTS OF INCOME

For the three-month period ended,

June 30,

March 31,

June 30, 2014

2013

2014

(RMB)

(RMB)

(RMB)

(US$)

Revenues

628,493,979

625,731,081

668,887,775

108,712,745

Cost of goods sold

557,088,612

535,247,941

601,348,437

97,735,736

Gross profit

71,405,367

90,483,140

67,539,338

10,977,009

Operating expenses:

Selling

1,509,414

1,214,951

1,534,527

249,403

General and administrative

9,912,973

10,490,866

10,703,722

1,739,651

Total operating expenses

11,422,387

11,705,817

12,238,249

1,989,054

Operating income

59,982,980

78,777,323

55,301,089

8,987,955

Other (income) expenses:

Interest income

(990,007)

(525,335)

(637,612)

(103,630)

Interest expense

26,418,467

26,024,958

26,695,034

4,338,681

Others, net

(105,210)

855,570

1,273,848

207,035

Total other expense, net

25,323,250

26,355,193

27,331,270

4,442,086

Income before income taxes

34,659,730

52,422,130

27,969,819

4,545,869

Income tax expense

9,142,375

13,105,533

6,992,455

1,136,467

Net income

25,517,355

39,316,597

20,977,364

3,409,402

Earnings per share:

Basic and diluted

0.99

1.53

0.82

0.13

Weighted average ordinary shares outstanding:

Basic and diluted

25,725,000

25,725,000

25,725,000

25,725,000

CHINA NEW BORUN CORPORATION

UNAUDITED CONSOLIDATED STATEMENTS OF INCOME

For the six-month period ended,

June 30, 2013

June 30, 2014

(RMB)

(RMB)

(US$)

Revenues

1,079,186,038

1,294,618,856

210,411,334

Cost of goods sold

960,690,062

1,136,596,378

184,728,315

Gross profit

118,495,976

158,022,478

25,683,019

Operating expenses:

Selling

2,558,750

2,749,478

446,866

General and administrative

19,721,770

21,194,588

3,444,706

Total operating expenses

22,280,520

23,944,066

3,891,572

Operating income

96,215,456

134,078,412

21,791,447

Other (income) expenses:

Interest income

(1,616,097)

(1,162,947)

(189,011)

Interest expense

46,298,133

52,719,992

8,568,455

Others, net

(131,154)

2,129,418

346,089

Total other expense, net

44,550,882

53,686,463

8,725,533

Income before income taxes

51,664,574

80,391,949

13,065,914

Income tax expense

13,393,586

20,097,988

3,266,478

Net income

38,270,988

60,293,961

9,799,436

Earnings per share:

Basic and diluted

1.49

2.34

0.38

Weighted average ordinary shares outstanding:

Basic and diluted

25,725,000

25,725,000

25,725,000