DGAP-News

Asian Bamboo announces Q1-Q3 2014 results

DGAP-News: Asian Bamboo AG / Key word(s): Quarter Results
Asian Bamboo announces Q1-Q3 2014 results

14.11.2014 / 10:58

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Asian Bamboo announces Q1-Q3 2014 results

Hamburg, 14 November 2014 - Asian Bamboo AG ("Asian Bamboo", "the Company",
ISIN: DE000A0M6M79, ticker symbol: "5AB", ADR ticker symbol "ASIBY"),
announces the following final results for the period Q1-Q3 2014 (percentage
numbers are year-on-year comparisons):

- Revenue decreased 25% to EUR 18.5 million* (Q1-Q3 2013: EUR 24.5
million*)

- Gross profit including FVBA-changes† increased 229% to EUR 7.4
million (Q1-Q3 2013: EUR 2.3 million), equivalent to a gross profit
margin including FVBA-changes of 40% (Q1-Q3 2013 restated: 9%)

- Net profit of EUR 9 million (Q1-Q3 2013 restated: net loss of EUR 3.5
million)

- Operating cash flow before movements in working capital was EUR 3.4
million (Q1-Q3 2013: EUR 7.4 million)

- Net cash generated from operating activities was positive EUR 3.3
million (Q1-Q3 2013: negative EUR 4.1 million)

- Cash and cash equivalents of EUR 26.6 million (31 December 2013: EUR
28.5 million)

* Revenue numbers do not include sales of bamboo fibre as it is treated as
a discontinued operation
**FVBA is an abbreviation for gains/(losses) arising from changes in the
fair value less estimated costs to sell of biological assets

In the first three quarters of the year the performance remained
unsatisfactory mainly due to the structural issues facing the plantation
business. In addition, the spring bamboo shoot harvest was negatively
affected by heavy rain during the key harvesting weeks, which also had a
negative impact on the production of dried bamboo shoots. The Management
Board continued to exercise stringent cost control and decreased the total
number of employees. In addition, the provisions made for onerous
plantation lease contracts have lowered the total amortisation costs.
Furthermore, in April the Company announced an agreement to give up the
rights to certain plantations, which resulted in an accounting gain of EUR
6.9 million. Most importantly, the business continued to be net operating
cash flow positive.

The growth of the Chinese economy is slowing and the government is facing
unprecedented challenges as the previous growth engines, such as
manufacturing and exports, are not likely to provide the tailwinds for the
overall economy as they previously did. In this context, the Management
Board expects the overall operating situation for the plantation business
to remain challenging. However, the Management Board maintains its 2014