China New Borun Corporation operates as a producer and distributor of corn-based edible alcohol in the People’s Republic of China (PRC or China). The company is a subsidiary of King River Holding Limited. The company’s edible alcohol products are primarily sold as an ingredient to producers of baijiu who further blend its products into finished products sold under various brand names throughout China. ‘Baijiu’ is a grain-based alcoholic beverage, generally made from corn, wheat or barley, clear in color, with alcohol content ranging from 18% to 68%. Baijiu is sold throughout China in retail stores, bars, banquet halls, restaurants and other locations where alcoholic beverages are typically consumed. Baijiu is consumed in almost all the occasions in China where alcoholic beverages are desirable, from daily residential consumption, gatherings of family and friends, business and social occasions, to the Chinese Spring Festival celebrations. During the production of edible alcohol, the company also produces distillers dried grains with solubles high-protein feed (DDGS feed), corn germ, crude corn oil and liquid carbon dioxide as by-products, which are sold separately from its edible alcohol. In China, edible alcohol could be classified into Grades A, B and C. The company sells all three Grades of edible alcohol. Products and Primary Markets The company’s principal product is corn-based edible alcohol. In its production of corn-based edible alcohol, the company also produces DDGS feed, corn germ and liquid carbon dioxide as by-products. Edible Alcohol The company produces its edible alcohol through the distillation of fermented corn. Edible alcohol is an organic product used in various industries to produce a range of other products, including alcoholic drinks, cleaning solvents, perfumes, cosmetics, dyes, medicines and fuel. The overwhelming majority of the company’s customers are in the beverage and food industry, followed by the chemical industry and pharmaceutical industry. The company produces Grade A edible alcohol, which has alcohol concentration of 99.5%, at Phase II of its Daqing facility with the capacity of 50,000 tons. The company produces Grade B edible alcohol, which has alcohol concentration of 95.5%, at Phase II of its Shouguang facility, Phase II of its Daqing facility and Phase III of its Daqing facility, with the capacities of 90,000 tons, 20,000 tons, and 120,000 tons, respectively. In addition, the company produces Grade C edible alcohol, which has alcohol concentration of 95%, at Phase I of its Shouguang facility with the capacity of 70,000 tons and at Phase I of its Daqing facility with the capacity of 30,000 tons. The principal market for the company’s edible alcohol includes sales to producers of intermediate and high grade baijiu. A portion of its customers are in the chemical industry and use edible alcohol for chemical products, such as acetic acid and glycol. A small number of the company’s customers are in the pharmaceutical industry, where edible alcohol is used as disinfectant, preservative or a feedstock to produce different organic agents. DDGS Feed DDGS feed is a high-protein by-product of edible alcohol, which contains rich proteins, fats, amino acid, vitamins and various kinds of minerals, which are vital to animal growth and suitable for feeding poultry, livestock and fish. DDGS feed is a digestible protein and energy source for beef cattle, could be used in turkey and swine applications, and acts as a feed for both feedlot and dairy cattle. DDGS feed is also fed to poultry and its use is increasing in the pork industry. DDGS feed is formed through a distillation, evaporation and drying process, which occurs after microbial fermentation of corn in the process of edible alcohol production. In the production of edible alcohol, only starch from the corn is used and the remaining nutrients (such as protein, fiber and oil) are used to produce DDGS feed. The main market for the company’s DDGS feed includes sales to feed processing factories, which provide DDGS feed to poultry, livestock and fish. Crude Corn Oil Crude corn oil is used to produce edible corn
china new borun corp-adr (BORN:New York)
Bohai Industrial Park
Phone: 86 53 6545 1199
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