The information contained in this document is not for publication
or distribution in the United States of America.
Asian Bamboo AG, a leading producer of bamboo trees and organic
bamboo shoots in China, plans an IPO on the Prime Standard of the
Frankfurt Stock Exchange. Subject to favourable capital market
conditions, the IPO is scheduled to take place in November 2007. The
company expects to raise approximately EUR 75 million through the
transaction and intends to use the net proceeds raised in the offering
primarily to finance the long-term contracting of additional bamboo
forests in China. Moreover, the processing capacity of bamboo shoots
and trees is set to be expanded.
Due to long-term contracts the company currently has access to 13
bamboo plantations comprising a total acreage of more than 14,600 ha
(36,077 acres) in the province Fujian, one of the most suitable and
largest bamboo growing areas in China. The company intends to expand
its acreage to more than 30,000 ha (74,132 acres) by the end of 2010.
Asian Bamboo AG has entered into five non-binding letters of intent to
contract to more than 10,000 ha (24,711 acres) of already mature land
for additional plantations.
Asian Bamboo AG has around 300 employees and operates three pre-
and one fine-processing facilities for bamboo shoots in addition to
the cultivation of bamboo. In 2006, the company sold 1.6 million
bamboo trees and 25,000 t of bamboo shoots while around three fourths
of the company's total sales originated from fresh and processed
bamboo shoots and around one fourth from bamboo trees. Following the
contracting of further plantations and the planned increase in bamboo
tree production over the next few years this ratio is likely to become
more even. Over the last three years, Asian Bamboo AG has achieved a
compound annual growth rate (CAGR) of 79% in revenues to EUR 10.89
million in 2006 and - adjusted for changes in the fair value of
biological assets - a CAGR of 127% in net profit to EUR 3.94 million
in 2006. In the first half of 2007, Asian Bamboo AG generated revenues
of EUR 5.37 million - 20% more than in the respective period in 2006.
Given an adjusted profit of EUR 1.62 million the adjusted net profit
margin was approximately 30%.
Asian Bamboo's favourable market position is driven by two main
developments. Firstly, the demand for wood in China is continuously
increasing due to sustained economic growth and the subsequent
increase in wealth. The Chinese government is currently restricting
the logging of forests in favour of sustainable wood production while
at the same time supporting the use of bamboo as a fast-growing
alternative to traditional wood. Asian Bamboo AG sells its bamboo
trees as an environmentally sustainable alternative for wood mainly to
wholesalers for use in the flooring, construction, furniture and paper
pulp production in the domestic market. In addition to the direct sale
of bamboo trees Asian Bamboo AG intends to extend its value chain by
setting up its own bamboo flooring plant with a planned production
capacity of 1 million square metres per year which is intended to
commence in early 2009.
The second development relates to the growing demand for organic
food products. Being the first Chinese company to receive the Japanese
organic food certification, Asian Bamboo AG sells most of its bamboo
shoots to Japan as in this country the awareness for healthy,
organically grown food is particularly high. Asian Bamboo AG's bamboo
shoots exports to Japan made up approximately 45 percent of the
company's total revenues in 2006. However, in China too the consumers'
preference for healthy, organically grown food is likely to increase
due to continuously improving living standards. Asian Bamboo AG
intends to expand its distribution network in China to reap the
benefits of this development. As a first step, the company has already
signed a contract with Fuzhou Yonghui Supermarket Co., Ltd., one of
China's leading fresh agricultural food retailers with 160 outlets in
Fujian province and Chongqing.
Mr. Zuojun Lin, CEO of Asian Bamboo AG, comments: "The IPO is a
key step for us to achieve our ambitious growth objectives. China is
one of the world's largest wood producers, but also one of the largest
wood importers due to the country's high demand for wood and the
government's imposition of logging restrictions. With the raised
capital we will be able to contract further large bamboo plantations
and therefore benefit from the fast-growing demand for bamboo as a
sustainable raw material. This is not a short-term trend, but rather
an ongoing development which will strengthen our growth and
profitability."
Currently, Green Resources Enterprise Holding Ltd., an entity
wholly owned by Mr. Zuojun Lin is the majority shareholder of Asian
Bamboo AG with 90.65 percent of the share capital. A further 9.35
percent of the share capital is owned by five private investors.
Asian Bamboo AG has mandated Sal Oppenheim jr. & Cie. KGaA as
global coordinator and sole bookrunner. Sal. Oppenheim and Bank of
China International act as joint lead manager in the IPO. Selling
agents are Comdirect Bank AG, Cortal Consors S.A. and DAB Bank AG.
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About Asian Bamboo AG
Asian Bamboo Group is a leading bamboo producing company in China
focusing on two business segments: bamboo trees and organically grown
bamboo shoots. Due to long-term contracts the company at this stage
has access to 13 bamboo plantations comprising a total acreage of more
than 14,600 ha (36,077 acres) in the Fujian province, one of the most
important and suitable areas for the growing of bamboo in China.
Over the last three years, Asian Bamboo AG has achieved a compound
annual growth rate (CAGR) of 79 percent in revenues to EUR 10.89
million in 2006 and - adjusted for changes in the fair value of
biological assets - a CAGR of 127 percent in net profit to EUR 3.94
million in 2006. In the first half of 2007 Asian Bamboo AG generated
revenues of EUR 5.37 million.
Asian Bamboo AG's registered office is located in Hamburg,
Germany. Its primary production facilities are located in the China's
Fujian province, one of the main areas for growing bamboo in the
People's Republic of China. As of 30 September 2007, Asian Bamboo AG
had approximately 300 employees.
Further information on Asian Bamboo AG can be obtained at:
www.asian-bamboo.de
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This publication constitutes neither an offer to sell nor a
solicitation to buy securities. The offer will be made solely by means
of, and on the basis of, a securities prospectus which is to be
published. Once it is published, the prospectus can be obtained free
of charge from Sal. Oppenheim and Asian Bamboo AG's web page.
This document is not an offer of securities for sale in the United
States of America. Securities may not be offered or sold in the United
States of America absent registration or an exemption from
registration under the U.S. Securities Act of 1933, as amended. The
shares in Asian Bamboo AG have not been and will not be registered
under the U.S. Securities Act of 1933, as amended, and are not being
and will not be offered or sold in the United States of America.
This document is directed at and/or for distribution in the U.K.
only to (i) persons who have professional experience in matters
relating to investments falling within article 19(5) of the Financial
Services and Markets Act 2000 (Financial Promotion) Order 2005 (the
"Order") or (ii) high net worth entities falling within article
49(2)(a) to (d) of the Order (all such persons being together referred
to as "relevant persons"). This document is directed only at relevant
persons. Any person who is not a relevant person should not act or
rely on this document or any of its contents. Any investment or
investment activity to which this document relates is available only
to relevant persons and will be engaged in only with relevant persons.
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