China New Borun Corporation manufactures edible alcohol from corn. The Company sells its alcohol to manufacturers of a grain-based alcohol drink, who incorporate it in their beverages.
In Oct 2010, Citron Research questioned whether the “wet process”, which the company claims to be their competitive strength, is worthy of the $80k research which did not result in a patent. They published a follow-up report the next month revealing the “wet process” was antiquated and unprofitable, and that the company has been upgrading their facilities to an industry-standard competing “semi-dry” process. It was also suggested that the company has an undisclosed debt of 270m RMB.
Citron Research: Reports on China New Borun, 12 Oct 2010
China New Borun: Annual Report 2010