Asian Bamboo Group (FWB:5AB), a leading producer of bamboo trees and organic bamboo shoots in China, has signed another land lease contract comprising a total acreage of approx. 2,000 ha of mature bamboo forest in the Fujian province in China. The contract with a duration of 20 years as of 1 January 2008, envisages a lump-sum lease payment of some €4,600 per ha which amounts to approx. €9.4 million for the whole acreage. This contract finalises the second of five non-binding letters of intent with improved key terms to contract more than 10,000 ha of already mature land for additional plantations. With these two new contracts Asian Bamboo has increased the already mature acreage of Asian Bamboo by more than 80% versus the beginning of 2007. Since the newly contracted land is already mature it will contribute to Asian Bamboo´s revenues and earnings immediately.
With its IPO on the Prime Standard of the Frankfurt Stock Exchange on the 16 November, 2007, Asian Bamboo AG raised net proceeds of approx. €74 million which are intended primarily to finance the long-term contracting of additional mature bamboo forests in China. Due to long-term contracts including the most recent one, the company currently has access to 15 bamboo plantations comprising a total acreage of more than 18,700 ha in Fujian province, one of the most suitable and largest bamboo growing areas in China. The company intends to increase its acreage to more than 30,000 ha by the end of 2010.
Mr. Zuojun, CEO of Asian Bamboo AG, comments on the new contract: “This second land lease contract in a short time marks the next step on our growth path as announced at the time of the IPO. We have not lost time using the IPO proceeds to contract further plantations in order to, particularly, expand our high-margin bamboo tree business. The negotiations on the three further plantation portfolios are going according to plan, and we are confident to be able to successfully close the respective contracts soon.”
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About Asian Bamboo AG
Asian Bamboo Group is a leading bamboo producing company in China focusing on two product categories: bamboo trees and organically grown bamboo shoots. Due to long-term contracts the company at this stage has access to 15 bamboo plantations comprising a total acreage of more than 18,700 ha in the Fujian province, one of the most important and suitable areas for the growing of bamboo in China.
Over the last three years, the company has achieved a compound annual growth rate (CAGR) of 79% in revenues to €10.89 million in 2006 and – adjusted for changes in the fair value of biological assets – a CAGR of 127% in net profit to €3.94 million in 2006. In the first nine months of 2007 Asian Bamboo Group generated revenues of €11.7 million and an adjusted net profit of €6.1 million.
Asian Bamboo Group’s registered office is located in Hamburg, Germany. Its production facilities are located in 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 Group had approximately 300 employees.
Further information on Asian Bamboo AG can be obtained at: www.asian-bamboo.com