China New Borun Corporation reported unaudited consolidated earnings results for the third quarter and nine months ended September 30, 2016. For the quarter, the company reported revenues of $602,246,617 compared to $661,425,029 a year ago. The decrease in revenue was mainly due to a sharp decrease in ASP for edible alcohol and its by-products, and a decline in sales from crude corn oil at the Company's Daqing facility. Operating income was $21,119,281 compared to $50,733,187 a year ago primarily due to lower gross profit earned. Income before income taxes was $10,703,810 compared to $29,057,117 a year ago. Net income was $8,027,857 or $0.31 per basic and diluted share compared to $21,792,837 or $0.85 per basic and diluted share a year ago. The decrease in net income was primarily due to the decrease in revenue and lower gross margin during the third quarter.

For the nine months, the company reported revenues of $1,619,208,219 compared to $1,952,988,691 a year ago. Operating income was $99,421,178 compared to $169,263,834 a year ago. Income before income taxes was $64,209,794 compared to $100,925,549 a year ago. Net income was $48,157,345 or $1.87 per basic and diluted share compared to $75,694,161 or $2.94 per basic and diluted share a year ago.

Reflecting a sharp year-over-year decrease in ASP for edible alcohol and its by-products, the company estimates that its revenue for the fourth quarter of 2016 will be in the range of RMB 480 million ($71.9 million) to RMB 530 million ($79.4 million), a decrease of approximately 24.2% to a decrease of 31.3% over the same quarter of 2015.