DGAP-News: Asian Bamboo announces strong Q1 2011 results
(firmenpresse) - DGAP-News: Asian Bamboo AG / Key word(s): Quarter Results
Asian Bamboo announces strong Q1 2011 results
12.05.2011 / 07:17
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Hamburg, 12 May 2011 - 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, is pleased to
report a strong start to the year with revenue and net profit growing in
line with the increase in the mature plantation size. The Q1 financial
highlights were as follows (percentage numbers are year-on-year comparisons
and Q1 2010 numbers exclude paper sales):
* Revenue increased 56% to EUR 26.5 million (Q1 2010: EUR 16.9 million)
* Net profit increased 59% to EUR 9.5 million (Q1 2010 Restated: EUR 6
million), equivalent to a net profit margin of 36% (Q1 2010 Restated: 35%)
* Cash and cash equivalents were EUR 49 million (31 December 2010: EUR 56.7
million)
Mr. Lin Zuojun, founder and CEO of Asian Bamboo, commented: 'We have had a
strong start to the year and we are pleased that the bamboo fibre
processing project, which we expect will generate significant revenue and
net profit contribution in the future, was successfully launched towards
the end of March. The revenue and net profit margin achieved in Q1 indicate
that we are on track to reaching our year-end guidance.'
Update on the bamboo fibre processing project as of 12 May 2011
Since the launch in late March, the company has achieved the following:
* Daily average production of around 70 tonnes
* Total production and sales of around 2,000 tonnes
* Average price of around RMB 15,000 per tonne (around EUR 1,600 per tonne)
* Signed a five year contract with a key customer in the textile industry
for a yearly supply of 25,000 tonnes at market prices. The price per tonne
will be adjusted on a quarterly basis
Sales are booked when the products are delivered. The company began
producing towards the end of March, therefore no products were delivered
and no sales were booked in Q1. However, beginning in Q2, sales will be
booked and the income statement will contain revenue and net profit
contributions from this business segment.?Explanation of the impact of fair value accounting on the Q1 2011 net
profit
The fair value less estimated costs to sell ('the fair value') of bamboo
trees and bamboo shoots are booked as cost of sales in the income statement
when the harvested bamboo trees and bamboo shoots are sold. Using the fair
value as cost of sales means that:
* Cost of sales are inflated as compared to using the cost method
* The net profit margin for bamboo shoots is lower than the net profit
margin for bamboo trees as the ratio between the fair value and price is
higher for bamboo shoots than for bamboo trees
* Under normal circumstances, the net profit margin in Q1 is lower than the
net profit margin for the full year as we predominantly sell bamboo shoots
in Q1
* The net profit is only a meaningful number if the gains in the fair value
of biological assets are included
Reasons for excluding paper sales in the comparable Q1 2010 headline
numbers
In Q1 2010 the company recorded revenue and cost of sales of paper of
around EUR 2.3 million and EUR 2.2 million, respectively. As this business
was subsequently moved to an associated company (Haoming) and the company
does not have any such revenue and cost of sales in Q1 2011, year-on-year
comparisons are more meaningful if these items are excluded.
The complete Q1 2011 interim report can be accessed on www.asian-bamboo.com
(English version) or www.asian-bamboo.de (German version).?For enquiries, please contact:
Asian Bamboo AG:
Peter Sjovall +852-9385 3868
Chief Financial Officer
Anja Holst +49-(0)40 37644 798
Investor Relations Manager
End of Corporate News
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12.05.2011 Dissemination of a Corporate News, transmitted by DGAP - a
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Language: English
Company: Asian Bamboo AG
Stadthausbrücke 1-3
20355 Hamburg
Deutschland
Phone: +49 40 37644 798
Fax: +49 40 37644 500
E-mail: info(at)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 News DGAP News-Service
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124084 12.05.2011
Datum: 12.05.2011 - 07:17 Uhr
Sprache: Deutsch
News-ID 34048
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Kategorie:
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