China New Borun Corporation
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China New Borun Corporation ("Borun") is a leading producer and distributor of corn-based edible alcohol in the People's Republic of China based on tons of edible alcohol produced. Borun currently owns and operates two facilities, one in Shouguang, Shandong province and the other in Daqing, Heilongjiang province. These locations have a stable supply and lower cost of corn, our primary raw material. Our Shouguang facility occupies a site area of 183,565.81 square meters, has 481 full-time employees and an annual production capacity of 160,000 tons of corn-based edible alcohol. Our Daqing facility occupies a site area of 219,156 square meters, has 563 full-time employees and is licensed to produce 330,000 tons of corn-based edible alcohol.

Borun was founded in December 2000 and commenced its production of corn-based edible alcohol in 2004. During the production of edible alcohol, we also produce DDGS feed, crude corn oil and liquid carbon dioxide as by-products.

Baijiu is the most popular drink in the Chinese liquor market. We sell our corn-based edible alcohol largely to local distilleries of medium to high quality baijiu in Shandong and Heilongjiang Province of the PRC, where there are a significant number of large and mid-sized local baijiu distilleries. Currently, we are also maketing our edible alcohol to customers in Sichuan Province which is the largest baijiu production base in China and we will continue to develop business opportunies there. We also plan to expand our sales to other big baijiu producing provinces in China's western and southern regions to diversify our customer base in the near future.

Over the years, Borun production management professionals have been devoting themselves to the research and development of our production technology. We believe our in-house developed Borun Wet Process has a higher production yield and is a more highly efficient and environmentally friendlier manufacturing process, which results in a cost effective, consistent and superior product widely sought by baijiu producers. Producers of baijiu often have distinctive taste and flavor profiles that are achieved through proprietary recipes and blending techniques. The consistency and quality of the edible alcohol we supply to them is critical to achieving these taste and flavor profiles.

In the near future, we will continue to expand our production capacity to capture the growing demand of China baijiu market, diversify our customer base, look for acquisiton opportunies, develop new products and improve our Borun Wet Process to strive for a long-term and even more successful development.

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