Our background

The origins of Asian Bamboo AG can be traced back to 1992 when Mr. Lin Zuojun, the CEO and founder, started a bamboo trading business in Fujian province. The business grew rapidly and Mr. Lin built our first bamboo processing plant, located in Mawei, in 1997. In the late 1990s, there was only limited demand for processed bamboo shoots in China, so the Company focused on the Japanese market where we were one of the pioneers in developing the distribution of Chinese processed bamboo shoots. Japan was for many years our most important market until domestic demand took off in the early 2000s. In 2001, we leased our first plantation and since then fresh bamboo shoots and bamboo trees have developed into our largest product categories.

Asian Bamboo AG was incorporated in Hamburg and listed on the main board (Prime Market) of the Frankfurt Stock Exchange, under the ticker symbol “5AB”, on 16 November 2007. Using the proceeds from the IPO, we leased more than 10,000 ha of mature plantations in 2008, which instantly more than doubled the size of total mature plantations from the year before. In August 2008, we were named a National Key Flagship Enterprise, which was not only a great honour but also guaranteed our Company tax exemption for at least four years. The same year, the Xinrixian Research Centre, located on the campus of the Fujian Agriculture and Forestry University, was completed. The project was funded through a donation by Mr. Lin in his personal capacity.

By Q3 2009, we had rearranged all plantation leases entered into prior to the IPO from yearly payments to up-front payments. All our lease contracts now have the same structure and by making up-front payments we get a significant discount on the total lease fees paid.

On 22 October 2009, we successfully placed 1,275,000 new shares in a private placement at an issue price of EUR 20 per share to institutional investors. Following the placement, the Company has a total of 14,025,000 shares outstanding.

Our business has continued to strengthen and we are enjoying the benefits of our integrated business model, whereby we are able to extract economies of scale and maximise the return of our plantations. We sell our fresh and processed bamboo shoots all over China through a variety of channels, including wholesale markets, supermarket and industrial buyers. Bamboo trees are mostly sold through a middleman but Asian Bamboo also deals directly with large customers. This includes Shaowu Zhongzhu Pulp and Paper, a leading producer of bamboo-based pulp and paper, with whom we entered a strategic partnership in February 2009. The domestic market accounts for more than 85% of our total revenue and bamboo trees and fresh bamboo shoots, which carry the highest margins, are our two largest product categories.

Corporate structure

Legals | © 2015 Asian Bamboo AG

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