DGAP-Adhoc: The Management Board of Asian Bamboo comments on the trading situation for the Company

Asian Bamboo AG  / Key word(s): Profit Warning

23.07.2012 12:00

Dissemination of an Ad hoc announcement according to § 15 WpHG, transmitted
by DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.

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Hamburg, 23 July 2012 - The Management Board of Asian Bamboo AG ('Asian
Bamboo', 'the Company', ISIN: DE000A0M6M79, ticker symbol: '5AB', ADR
ticker symbol 'ASIBY'), a world-leading integrated company in the bamboo
industry, wishes to state that the Company's trading conditions remain
challenging due to a combination of harvesting issues, as detailed in the
Q1 2012 report, and the overall economic slowdown in China. Consequently
revenue and profits have been below plan for the first half of the year.
The Management Board will update the Company's guidance at the time of the
Q2 results announcement.

In order to improve the Company's operational performance the Management
Board is working on a set of adjustments to its business model in the
following key areas:

* Harvesting management: including recruitment of farmers and compensation
to farmers for harvesting work
* Organisational development: including further incentivising business
development at the subsidiary levels
* International business development: including a strategic cooperation
agreement with Moso International which is a leading distributor of
bamboo-based products to the construction and interior decoration
industries in Europe (see separate announcement)

The Company's revenue per ha and profitability have fallen over the last 18
months as the increase in plantation size has led to higher costs, but not
a corresponding increase in sales. The Management Board believes that a
stabilisation of the Chinese economy together with the effects of various
management initiatives will lead to a rebound in revenue per ha and
profitability in the future.

Due to the economic slowdown in China and falling inflation rates, the
Chinese Central Bank has lowered interest rates twice within a short period
of time. The Management Board expects further easing of monetary policies
and that the government will initiate various projects to stimulate
economic growth. The overall operating situation is expected to remain
challenging for the rest of the year while the Management Board expects
significant improvements in the medium term.

The Company's financial position remains very strong due to a significant
cash position and stable cash flows.

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


23.07.2012 DGAP's Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Media archive at www.dgap-medientreff.de and www.dgap.de

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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:       Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
              in Berlin, Düsseldorf, München, Stuttgart
 
End of Announcement                             DGAP News-Service
 
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