China New Borun's Customers Performance

We currently sell a large portion of our corn-based edible alcohol in the Shandong and Heilongjiang Provinces, and of which sales are mainly made to local distilleries of medium to high quality baijiu. We intend to continue to expand our sales of edible alcohol in western and southern provinces such as Sichuan, Anhui and Jiangsu Provinces where we believe the domestic edible alcohol production fails to meet local demand and prices for edible alcohol are significantly higher than the northern China region due to shortage of production. We also plan to expand our sales to other provinces to diversify our customer base.


We believe Sichuan Province is the largest baijiu production base in China. From December 2009, we started selling edible alcohol to customers in Sichuan Province and we have achieved significant progress with our sales in Sichuan Province, particularly since 2012, as we significantly increased the volume of edible alcohol sales to this region. We started selling edible alcohol in Anhui and Jiangsu Provinces in 2010 and we aim to further expand our business in those regions.

In addition to the expansion of our customer base to distilleries of baijiu in different provinces, we also plan to expand to customers in different industries by selling more Grades A and B edible alcohol to large chemical and pharmaceutical companies.

To step up our marketing effort and enhance our reputation in the industry, we intend to increase our local marketing initiatives and set up regional sales offices in strategically important provinces.