AB leases 5,000 ha of bamboo plantations
Hamburg, 1 February, 2010 – Asian Bamboo AG (“Asian Bamboo”, “the Company”, ISIN: DE000A0M6M79, ticker symbol: “5AB”), a world-leading producer of bamboo trees and organic bamboo shoots, is pleased to announce that it has signed lease agreements for two bamboo plantations with a total size of approximately 5,000 hectares (ha).
The plantations, located in Longyan in Fujian Province, are being leased for 20 years and Asian Bamboo will pay a total fee of around EUR 27.9 million (RMB=270 million), translating into a leasing fee per hectare of EUR 5,585 (RMB=54,000). The terms of the lease are similar to those of previous leases. Around 30% of the lease fee will be paid in Q1 2010 and the balance when the harvesting rights are transferred later in the year. The plantations are expected to start generating output in Q4 2010.
Lin Zuojun, CEO and founder of Asian Bamboo, commented: “Securing new plantation leases is the foundation of our business model. Including these plantation leases, we now have a total plantation size of 36,729 ha, of which 27,943 ha are mature plantations.”
Asian Bamboo sponsors Fuzhou Giant Panda Research Center
Asian Bamboo is pleased to announce that it has agreed to become a sponsor of Fuzhou Giant Panda Research Center, the second largest centre for panda protection and research on panda reproduction in China.
Asian Bamboo will provide financial support and supply fresh bamboo shoots for a period of at least two years. The pandas’ diet consists mainly of bamboo and they can eat up to 30 kg of food in one day.
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
About Asian Bamboo AG:
Asian Bamboo is a world-leading producer of Moso bamboo trees and organic bamboo shoots. Bamboo trees are used for scaffolding or as input material for processed products including flooring, plywood, panels, veneer, pulp and paper, furniture and textiles. Organic bamboo shoots are sold fresh in domestic agriculture markets, processed for export to the Japanese market or distributed domestically to industrial buyers or supermarkets. The Company currently owns long-term leasing rights for 29 bamboo plantations with a total size of 36,729 hectares, with the aim of reaching a total plantation size of at least 40,000 ha by the end of 2010. In the longer term, the Company is aiming for a total plantation size of at least 70,000 ha.
As a National Key Flagship Enterprise, the company is at the forefront of developing the agriculture industry in China, which helps to raise farmers’ incomes and increase output. Asian Bamboo has obtained organic food accreditations in China, Japan, Europe and the United States in addition to its HACCP and ISO9001 certifications. The company was recently ranked the 17th fastest growing company in China by Forbes China Magazine.
Asian Bamboo Group's registered office is located in Hamburg, Germany and the Company is listed on the Prime Standard of the Frankfurt Stock Exchange under the ticker symbol “5AB”.
For more information about Asian Bamboo, please visit our website at
www.asian-bamboo.com or www.asian-bamboo.de
