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.
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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
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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: Regulated Market in Frankfurt (Prime Standard); Regulated
Unofficial Market in Berlin, Dusseldorf, Munich, Stuttgart
End of Announcement DGAP News-Service
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DGAP-Adhoc: Asian Bamboo announces preliminary FY 2014 results
| Source: EQS Group AG