DGAP-Adhoc: Asian Bamboo announces preliminary FY 2014

Asian Bamboo AG / Key word(s): Preliminary Results 06.03.2015 14:00 Dissemination of an Ad hoc announcement according to § 15 WpHG, transmitted by DGAP - a service of EQS Group AG. The issuer is solely responsible for the content of this announcement. --------------------------------------------------------------------------- Asian Bamboo announces preliminary FY 2014 results Hamburg, 6 March 2015 - Asian Bamboo AG ("Asian Bamboo", "the Company", ISIN: DE000A0M6M79, ticker symbol: "5AB", ADR ticker symbol "ASIBY") regrets to report that the conditions for running an agriculture business in Fujian Province remained very difficult in FY 2014. In addition, the Company gave up 4,173 hectares (ha) of bamboo plantations in April 2014, which led to the cancellation of EUR 9.5 million of accounts payables. The negative operating performance led to a loss in the fair value less estimated costs to sell of biological assets ("FVBA loss") of EUR 10.8 million, which was partially offset by a profit of EUR 7 million from giving up 4,173 ha of bamboo plantations. These items are non-cash items and therefore do not have any impact on the Company's cash flow. Despite the difficult operating conditions, the Company achieved positive net cash generated from operating activities of EUR 1.3 million. The preliminary results for FY 2014, which are below the previously stated guidance in terms of net profit and net cash generated from operating activities, but above the previously stated guidance in terms of revenue, are as follows (percentage numbers are year-on-year comparisons): - Revenue decreased 22% to EUR 24.4 million (2013: EUR 31.4 million) - Loss in FVBA* decreased by 56% to EUR 10.8 million (2013: loss of EUR 24.7 million) - Negative gross profit, including FVBA changes, fell by 49% to EUR 13.1 million (2013: negative EUR 25.7 million) - Net loss decreased by 98% to EUR 3.2 million (2013: net loss excluding discontinued operations EUR 196.4 million) - Operating cash flow before movements in working capital was negative kEUR 363 (2013: positive EUR 5.1 million) - Net cash generated from operating activities was positive EUR 1.3 million (2013: negative EUR 1.1 million) - Cash and cash equivalents decreased by 9% to EUR 24.2 million (2013: EUR 28.5 million) mainly as a result of repayments of bank loans during the year - Total bank borrowings decreased by 16% to EUR 29 million (2013: EUR 34.7 million) after repayments of bank loans during the year - Total equity rose by 6% to EUR 92 million (2013: EUR 86.7 million) largely due to a positive currency effect caused by the appreciation of the RMB against the EUR * FVBA is an abbreviation for gain/(loss) arising from changes in the fair value less estimated costs to sell of biological assets Update on the sale of 12,955 ha of bamboo plantations The Management Board is pleased to report that the sale of the designated bamboo plantations is progressing well and the consideration for the first batch of sold bamboo plantations will be collected in March 2015. The Management Board expects that most bamboo plantations designated for sale will be sold and the consideration will be collected before the end of Q2 2015. FY 2015 trend information The conditions in the bamboo industry are likely to remain challenging and, with a smaller plantation size, the Management Board expects to generate revenue of around EUR 17 million in 2015 and that the Company will continue generating positive net operating cash flows. Due to increasing costs and an unfavourable development of the RMB/YEN exchange rate, the Management Board has decided not to process any bamboo shoots in 2015 and will therefore sell all harvested bamboo shoots as fresh. Furthermore, the Management Board will continue to look for opportunities to further reduce its plantation size and to sell other assets as previously disclosed. Moreover, the Management Board plans to raise capital from the Company's shareholders and that the first investment in a property project will be completed in 2015. For enquiries, please contact: Asian Bamboo AG: Peter Sjovall +852-9385 3868 Chief Financial Officer peter.sjovall@asian-bamboo.com Anja Holst +49-(0)40 37644 798 Investor Relations Director anja.holst@asian-bamboo.com About Asian Bamboo AG: Asian Bamboo currently owns long-term leasing rights for 40 bamboo plantations with a total size of 50,338 hectares (ha). It is planning to diversify its business into property development. As a National Key Flagship Enterprise, Asian Bamboo is at the forefront of developing the agriculture industry in China. Asian Bamboo has obtained organic food accreditations in China, Japan, Europe and the United States in addition to its HACCP and ISO9001 certifications. Its plantation management has received GLOBALGAP (Global Good Agriculture Practices) certification from the Swiss-based company SGS. Since 16 November 2007, Asian Bamboo has been listed on the Prime Standard of the Frankfurt Stock Exchange under the ticker symbol "5AB". In addition, the stock is traded as an ADR under the ticker symbol "ASIBY". The Company's financial statements are audited by Deloitte and its registered office is located in Hamburg, Germany. Disclaimer: This release is for information only and does not constitute an offer to sell, purchase, exchange or transfer any securities or a solicitation of any such offer in the United States or any other jurisdiction. The securities referred to herein have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the 'Securities Act') and may not be offered or sold in the United States absent registration or an exemption from registration under the Securities Act. Neither Asian Bamboo AG ("Asian Bamboo") nor any other participant in the transactions described herein intends to register any securities under the Securities Act or with any securities regulatory authority of any state or other jurisdiction in the United States in connection with the proposals described in this announcement. The shares may not be offered to the public in any jurisdiction in circumstances which would require the preparation or registration of any prospectus or offering document relating to the shares in such jurisdiction. No action has been taken by Asian Bamboo or any of their affiliates that would permit an offering of the shares or possession or distribution of this announcement or any other offering or publicity material relating to such securities in any jurisdiction where action for that purpose is required. As far as this release contains forward-looking statements with respect to the business, financial condition and results of operations of Asian Bamboo, these statements are based on current expectations or beliefs of Asian Bamboo's management. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results or performance of the Company to differ materially from those reflected in such forward-looking statements. Apart from other factors not mentioned here, differences could occur as a result of changes in the overall economic situation and the competitive environment - especially in the core business segments and markets of Asian Bamboo. Also, the development of the financial markets and changes in national as well as international provisions particularly in the field of tax legislation and financial reporting standards could have an effect. Terrorist attacks and their consequences could increase the likelihood and the extent of differences. Asian Bamboo undertakes no obligation to publicly release any revisions or updates to these forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. 06.03.2015 The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and www.dgap.de --------------------------------------------------------------------------- Language: English Company: Asian Bamboo AG Stadthausbrücke 1-3 20355 Hamburg Germany Phone: +49 40 37644 798 Fax: +49 40 37644 500 E-mail: info@asian-bamboo.de Internet: www.asian-bamboo.de ISIN: DE000A0M6M79, DE000A0M6M79 WKN: A0M6M7, A0M6M7 Listed: Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Munich, Stuttgart End of Announcement DGAP News-Service ---------------------------------------------------------------------------