FY2015 (Jul 14 – Jun 15) Results Presentation

DUKANG DISTILLERS HOLDINGS LIMITED

CORPORATE PROFILE

FINANCIAL HIGHLIGHTS

GROWTH STRATEGIES

INVESTMENT MERITS

Corporate profile

B

Brand origin of Dukang

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Famous baijiu with a history dating back > 2,000 years

Named after Du Kang (杜康) who lived in the Xia Dynasty (21st – 16th century B.C.)

• Forefather of baijiu in China

Frequently cited by numerous famous poets & personalities

• Cao Cao (曹操) (a central figure in the Three Kingdom Period) said in his poem《短歌行》

“对酒当歌，人生几何， 譬如朝露，去日苦多。

慨当以慷，忧思难忘，何以解忧，唯有杜康。”

Premier Zhou Enlai called for the revival of Dukang baijiu

“复兴杜康，为国争光”

• Yichuan Dukang Group was set up in 1968

• Ruyang Dukang Group Co was established on the original site of Du Kang’s brewery in 1972

Established brand awareness

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China Well-Known Trademark (2005)

China Intangible Cultural Heritage (2008)

Dukang’s brand synonymous with market leadership in product quality and brand identity

National awards won include:

China Time-honored Brand (2005)

Top 10 Chinese Wine Brands (2001)

Star Enterprise Of The National Wine Industry (1994)

Henan Well-Known Trademark (2008)

Financial highlights

C

535.6 413.7

146.9 0.3

169.1

105.4

28.7

635.8 994.1

957.0

663.0

486.1

893.0

318.3

200.1

0

500

1,000

1,500

2,000

2,500

FY2012 FY2013 FY2014 FY2015

RM

B(m

il)

Siwu Regular Siwu Premium Luoyang Dukang Regular Luoyang Dukang Premium

863.4

7

Sales

Note: Financial Year End - 30 June FY15: Jul 2014 – Jun 2015

1,826.6

2,406.2

1,450.9

Note: Financial Year End - 30 June FY15: Jul 2014 – Jun 2015

Sales volume & Average selling price

8

(Tonnes) (RMB/Kg)

(Tonnes) (RMB/Kg)

FY2014: Jul 13 – Jun 14

290 2,037 2,652 4,580 1,807 1,396

187.2 154.2

180.5 194.3 176.1

143.3

0.0

50.0

100.0

150.0

200.0

250.0

300.0

0

1,000

2,000

3,000

4,000

5,000

FY2010 FY2011 FY2012 FY2013 FY2014 FY2015

Luoyang Dukang Premium

Total Sales Volume (tonnes) ASP (RMB/kg)

2,272 13,053 18,609 29,330 30,827 23,058

27.8

34.5 34.2 33.8 31.0

28.8

0.0

10.0

20.0

30.0

40.0

-

5,000

10,000

15,000

20,000

25,000

30,000

35,000

FY2010 FY2011 FY2012 FY2013 FY2014 FY2015

Luoyang Dukang Regular

Total Sales Volume (tonnes) ASP (RMB/kg)

Note: Financial Year End - 30 June FY15: Jul 2014 – Jun 2015

9

Gross profit

Note: Financial Year End - 30 June FY15: Jul 2014 – June 2015

92.0 106.5 130.8 96.6 38.4 0.1

114.0 103.9 89.6 57.6

13.9

18.0

145.8 202.0 345.8

308.3

131.9

27.4

156.4

261.9

484.3

162.7

81.4

0

100

200

300

400

500

600

700

800

900

1000

FY2010 FY2011 FY2012 FY2013 FY2014 FY2015

RM

B (

mil)

Yearly Gross Profit

Siwu Regular Siwu Premium Luoyang Dukang Regular Luoyang Dukang Premium

Note: Financial Year End - 30 June FY15: Jul 2014 – Jun 2015

Gross profit margins for Dukang brand

FY2014: Jul 13 – Jun 14 10

20.6% 23.4% 24.4% 23.3%

26.2%

19.9%

52.4% 52.2%

53.0%

29.7% 29.8%

0

28.5%

32.0% 31.8% 34.8%

32.2%

25.3%

50.4% 49.5%

53.9%

44.0%

51.1%

40.7%

0%

10%

20%

30%

40%

50%

60%

FY2010 FY2011 FY2012 FY2013 FY2014 FY2015

Gross Profit Margins

Siwu Regular Siwu Premium Luoyang Dukang Regular Luoyang Dukang Premium

Note: Financial Year End - 30 June FY15: Jul 2014 – Jun 2015

*No sales for Siwu Premium

11

(RMB ‘Mil)

Advertisement and Promotion

China National Sugar and Alcoholic Commodities Fair

Peony Cultural Festival

TV Ads

Luoyang Dukang National Trade Fair

FY2014: Jul 13 – Jun 14

56.2 129.8 224.3 257.2 327.9 18.1

7.2% 9.1%

12.3% 10.7%

22.6%

7.2%

0%

5%

10%

15%

20%

25%

0

50

100

150

200

250

300

350

FY2010 FY2011 FY2012 FY2013 FY2014 FY2015

A&P expenses and A&P as a percentage of sales

A&P A&P as a % of sales

Note: Financial Year End - 30 June FY15: Jul 2014 – Jun 2015

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Net Profit & Margin

FY2014: Jul 13 – Jun 14

25.0 168.0 218.1 389.7 44.1

-561.4

3.2%

11.8% 11.9% 16.2%

3.0%

-65.0% -70%

-60%

-50%

-40%

-30%

-20%

-10%

0%

10%

20%

-800

-600

-400

-200

0

200

400

600

FY2010* FY2011 FY2012 FY2013 FY2014 FY2015

Pe

rce

nta

ge (

%)

RM

B (

mil)

Net Profit & Margin

Profit attributable to equity holders Net Profit Margin

Note: Financial Year End - 30 June FY15: Jul 2014 – Jun 2015

*Impairment losses of RMB547.4 million

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Financial position

RMB (mil) As at 30 June 2015 As at 30 June 2014

Total Equity 1,437.3 1,998.7

Total Assets 1,838.4 2,534.0

Inventories 663.7 689.6

Cash & Equivalents 403.0 391.8

Total Liabilities 401.2 535.4

Bank Borrowings 134.8 201.0

Gearing Net Cash Net Cash

RMB (mil) FY2015 FY2014

Net cash generated/(used in) operating activities

149.7 (320.0)

Net cash generated/(used in) investing activities (60.9) (152.1)

Net cash generated/(used in) financing activities (77.6) 106.5

Net Increase/(decrease) in cash and cash equivalents

11.3 (365.5)

Note: Financial Year End - 30 June FY15: Jul 2014 – Jun 2015

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Turnover ratios

Notes: Accounts Receivable Turnover = Trade receivables as at end of quarter x 365 days 4 x Revenue for the quarter Accounts Payable Turnover = Trade and bills payables as at end of quarter x 365 days 4 x Cost of sales excl. consumption tax for the quarter Inventory Turnover = Inventories as at end of quarter x 365 days 4 x Cost of sales excl. consumption tax for the quarter

Note: Financial Year End - 30 June

No. of days FY2015 FY2014

Accounts Receivable Turnover

0 1

Accounts Payable Turnover 60 72

Inventory Turnover 492 371

FY15: Jul 2014 – Jun 2015

Growth strategies

D

Growth strategies and market opportunities

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Strengthen distribution

network

Improve capacity and utilisation

Enhance brand

awareness

Townships

Villages

Counties

3 Pronged Growth Strategies

New Market Opportunities in Henan Province during challenging times

Enhance brand awareness

Award winning microfilm International Jindanruo Award for “Father’s Love”

Jinhaitang Award for “Father’s Love”

Silver Award in Pingyao Art Festival for “ Come back home with love”

Customized products for young customers Incorporates cartoon characters and comical comments into

its design of product packaging for wedding

Pioneered various marketing methods WeChat: social as well as sales platform

Weibo: over 7,600 posts, almost 50,000 followers

Joined Chengdu Spring of Rum 2015 Allowed visitors to enjoy a taste of pure baijiu on the spot

from fermentation pools

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No. of distributors *

Luoyang Dukang

2011 2012 2013 2014 2015

Henan Province 114 144 88 87 78

The rest of China 56 83 82 81 98

*None of the top 5 distributors accounts for more than 10% of sales

Super Market Restaurant Specialty Store Flagship Store Dennis Department Stores

18

Optimize traditional distribution network

Exclusive partnership with Sichuan 1919 Wines & Spirit -- Online-to-Offline (“020”)

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Expand online distribution channels

Improve capacity & utilization

700

2,200

2,410 2,300

700

2,200 2,200 2,330

922

2,766 2,766

2,161

802

2,313

2,368 2,301

624

2,311

2,364 2,315

803

2,859 3,023

1,777

115%

105% 98% 100%

89%

105% 107%

98%

87%

103% 109%

82%

0%

20%

40%

60%

80%

100%

120%

-

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15

Grain Alcohol of Luoyang Dukang*

Quarterly Capacity Output Utilisation Rate

(Tonnes) %

20 Note: Financial Year End - 30 June FY15: Jul 2014 – Jun 2015

*Annual capacity of 7,203 tonnes from 2,428 fermentation pools ** Fermentation period of 60 days for Luoyang Dukang

Thank You “何以解憂，唯有杜康。”

Contact details: Ngo Yit Sung Corporate & IR Manager, Dukang Distillers Holdings Ltd Tel: +65 8111 4885 (Singapore) + 886 989 260 687 (Taiwan) Email: ysngo@dukang.com Zhang Yuchao Investor Relations Consultant Financial PR Pte Ltd Tel: +65 6438 2990 (Singapore) Email: staff@financialpr.com.sg

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