China New Borun, a producer and distributor of corn-based edible alcohol in China, has registered 11% rise in total revenue to RMB803.7m ($127.1m) for the second quarter (Q2) ended 30 June 2012, against a revenue of RMB724.4m ($114.5m) in the comparable period last year.

Gross profit was decreased by 23.6% to RMB115.5m ($18.3m) from RMB151.1m ($23.8m) in the second quarter of 2011.

The Chinese producer reported an operating income of RMB101.0m ($16.0m) in the second quarter of 2012, a decrease of 25.6%, compared to RMB135.8m ($21.4m) in the same period of 2011, primarily due to higher cost of goods sold.

Net income for the second quarter of 2012 was RMB68.1m ($10.8m), down by 28.9%, compared to RMB95.8m ($15.1m) in the second quarter last year.

China New Borun chairman and CEO Jinmiao Wang said the firm is happy over achieved revenue which was due to continuous demand for its edible alcohol, by-products and successful pre-sales in China.

"Our key raw material, corn, continued its price increase trend during this non-harvest season in the second quarter, and the entire edible alcohol industry faced margins pressure," Wang added.

"However, even though corn prices may continue to rise in future quarters, we are cautiously optimistic that prices for our main product, edible alcohol, will also pick up for the remainder of 2012, which should mitigate further margin contraction."