China New Borun Corporation, a producer of corn-based edible alcohol in China, today announced its unaudited financial results for the first quarter ended March 31, 2015. Revenue decreased by 8.8% year-over-year.
Article continues below
For the first quarter of 2015, revenue decreased by 8.8% year-over-year to RMB570.9 million ($93 million) from RMB625.7 million in the same period of 2014. The decrease in revenue was mainly due to the decrease in the average selling price in edible alcohol and its by-products and lower sales volume in by-products.
During the first quarter of 2015, gross profit decreased by 34.5% to RMB59.2 million ($9.6 million) from RMB90.5 million in the same period of 2014. Gross margin for the first quarter of 2015 decreased to 10.4%, from 14.5% in the same period of 2014, which was primarily attributable to a decrease in average selling price of edible alcohol and its by-products.
Operating income decreased by 41.3% to RMB46.2 million ($7.5 million) in the first quarter of 2015, from RMB78.8 million in the same period of 2014, primarily due to lower gross profit earned.
Selling expenses were RMB1.2 million ($0.2 million) in the first quarter of 2015, remain stable with that in the same period of 2014.
General and administrative expenses increased by RMB1.3 million, or 12.6% to RMB11.8 million ($1.9 million) in the first quarter of 2015, from RMB10.5 million in the same period of 2014.
Income tax expenses in the first quarter of 2015 were RMB5.3 million ($0.9 million), representing an effective tax rate of 25.0%.
Net income decreased by 59.8% to RMB15.8 million ($2.6 million) in the first quarter of 2015, compared to RMB39.3 million in the same quarter of 2014. In the first quarter of 2015, basic and diluted earnings per share and per ADS were RMB0.61 ($0.10), and the Company had 25.7 million weighted average basic and diluted shares outstanding.
As of March 31, 2015, cash and bank deposits of RMB664.6 million ($108.2 million) decreased by RMB165.8 million, compared with RMB830.4 million as of December 31, 2014. Cash flows generated from operating activities for the first quarter of 2015 were RMB14.1 million ($2.3 million), compared with cash flow used in operating of RMB332.0 million in the first quarter of 2014.
The Company estimates that its revenue for the second quarter of 2015 will be in the range of RMB620 million ($100.9 million) to RMB660 million ($107.5 million), a decrease of approximately 1.3% to a decrease of 7.3% over the same quarter of 2014. ■