Founded in 2000, China New Borun Corporation ("Borun"), through its subsidiaries, is one of the largest corn-based edible alcohol producers in the PRC. Borun’s alcohol is a primary ingredient in baijiu, an alcoholic beverage consumed on almost all appropriate occasions and associated with a high standard of living. Borun is able to produce up to 490,000 tons of edible alcohol per year in two facilities in Shouguang, Shandong Province, and Daqing, Heilongjiang Province. According to Frost & Sullivan, Borun is the largest private corn-based edible alcohol producer in both Shandong and Heilongjiang provinces, and our market dominance will increase further when we finish building out capacity in our Daqing facility.
As a result of Borun's innovative, enthusiastic, forward-looking and pragmatic approach over the last nine years, we have grown from a small edible alcohol plant into a leading private enterprise which dominates the local market and is well positioned for expansion. Our business philosophy emphasizes the importance of reputation, stringent internal controls, strategic thinking and competitiveness. We will continue to make progress and realize our ambition under the leadership of our Chairman, Wang Jinmiao, with the support of local government and many allies, and we will continue to capitalize on our relationships.
Our method of production, the "Borun Wet Process", allows a higher production yield, is environmentally friendlier and has higher energy efficiency than those of our competitors. In fact, Borun has a demonstrated ability to profit from environmentally beneficial practices. For example, we sell several by-products of alcohol production, including DDGS Feed, crude corn oil and liquid carbon dioxide.
In the last nine years, Borun has made outstanding progress in terms of production, R&D and industrial investments. Our profitability and overall competitiveness have reached a higher level, while product integrity and excellent service have helped Borun obtain the trust of our clients. Going forward, we will continue to contribute to the development of the general economy and society as a whole.