LUZHOU BIO-CHEMTECHNOLOGY LIMITED

Corporate

Presentation and

3QFY15 Results

November 13, 2015

A Mouth-Watering China Consumption Story

2

Business Overview

Financial Highlights

Growth Strategies

Contents

3

Business Overview

4

Operating Climate

Luzhou has benefitted from favourable Chinese government

policy, notably the restriction on importation of raw cane sugar

in order to prop up domestic sugar producers

This has resulted in domestic food & beverage producers

switching to corn syrup products as a substitute

Raw corn prices have also been favourable in recent years due

to ample supply from government stockpiles

5

Operating Climate

The USDA estimates that corn stockpiles in China are projected to

reach 90.6 million metric tons by 2016

Source: Bloomberg, http://www.bloomberg.com/news/articles/2015-11-03/drought-turning-china-

hope-for-record-crop-into-shrunken-harvest

High price of cane sugar has resulted in food & beverage

manufacturers turning to alternative sweeteners

For comparison, the prices of sweetener products supplied by Luzhou

(as at Sep 2015) are as follows:

Fructose: RMB 2,954/tonne

Dextrose: RMB 2,619/tonne

High Maltose Syrup: RMB 2,471/tonne

0.00

2000.00

4000.00

6000.00

8000.00

Jan-0

5

May-

05

Sep-0

5

Jan-0

6

May-

06

Sep-0

6

Jan-0

7

May-

07

Sep-0

7

Jan-0

8

May-

08

Sep-0

8

Jan-0

9

May-

09

Sep-0

9

Jan-1

0

May-

10

Sep-1

0

Jan-1

1

May-

11

Sep-1

1

Jan-1

2

May-

12

Sep-1

2

Jan-1

3

May-

13

Sep-1

3

Jan-1

4

May-

14

Sep-1

4

Jan-1

5

May-

15

Sep-1

5

Cane sugar pricing in Nanning City, China

6 6

RMB/tonnes

Price Comparisons to Cane Sugar

Source: Company, 中国昆商糖网

Sep 2015:

RMB 5,280

2,591

2,424

1,378

1,715

1,000

1,200

1,400

1,600

1,800

2,000

2,200

2,400

2,600

2,800

3,000

3,200

Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15

Corn Sweetener Corn Starch By-Products Corn

7

RMB/tonnes(excluding taxes)

Price Trends

Source: Company

8

Financial Highlights

9

9M15 Financial Highlights

Group Revenue increased by 18.5% y-o-y

Gross profit margin of 10.1%, 119.6% higher y-o-y;

Net Profit of RMB 20.4 million, a turnaround from net loss of

RMB 267.6 million in 9M2014

Net Profit Margin of 1.1%, 106.6% higher y-o-y

Cash and cash equivalents of RMB311.8 million as at

30 September, 2015 (RMB54.6 million as at 31 December,

2014)

10

RMB’mil 3QFY15y-o-y

Chg (%)q-o-q

Chg (%)9MFY15

y-o-yChg (%)

Revenue 655.8 48.5 (4.2) 1,910.8 18.5

Gross Profit 71.2 244.8 13.0 192.1 158.9

Profit Before Tax 7.1 116.2 (13.4) 25.8 109.6

Net Profit 5.2 111.8 (18.2) 20.4 107.6

Gross Profit Margin 10.9% 131.9 18.5 10.1% 119.6

Net Profit Margin 0.8% 108.0 (11.1) 1.1% 106.6

Income Statement Highlights

3Q: Three months ended September 30

9M: Nine months ended September 30

11

RMB’mil

Revenue

0

500

1000

1500

2000

2500

3000

3500

4000

FY10 FY11 FY12 FY13 FY14 9M15

647873 809 798

605 571

695

1034901 842

565 684

767

935

880751

442656

940

1063

810

618

463

1Q Revenue 2Q Revenue3Q Revenue 4Q Revenue

12

Revenue by Product Categories

Total Revenue: RMB1,910.8milTotal Revenue: RMB1,612.1 mil

Cornrefining,

94.5%

Animalfeeds, 5.4%

Others, 0.1%

9MFY15

Cornrefining,

88.2%

Animalfeeds, 11.2%

Others, 0.6%

9MFY14

Y-o-y changein revenue

Y-o-y change insales volume

Y-o-y changein weightedaverageselling price

Grossprofitmargin

Y-o-ychange ingross profitmargin

Corn refining 26.9% 29.3% (3.9%) 10.5% 101.9%

Animal feed (42.5%) (37.7%) (7.7%) 1.1% 37.5%

Food, 30.9%

Beverage,21.8%

Fermentation, 16.2%

Others,31.10%

9MFY15

13

Revenue by Industry

Total Revenue: RMB1,910.8mil

Total Revenue: RMB1,612.1 mil

Food, 30.5%

Beverage,24.3%Fermentatio

n, 11.4%

Others,33.80%

9MFY14

14

RMB’mil

Net Profit/EBITDA

-400.0

-300.0

-200.0

-100.0

0.0

100.0

200.0

FY06 FY07 FY08 FY09 FY10 FY11 FY12 9M15

126.0

54.5

1.3-14.3

6.0

50.5

14.6

-113.8

-339.8

20.4

165.2 162.5

104.892.7

125.6

195.7

146.0

40.1

-80.9

131.0

Net Profit EBITDA

FY13

FY14

15

RMB’milAs at

end 9MFY15As at

end FY14Chg (%)

Current Assets 733.3 502.0 46.1

- Cash & Cash Equivalents 311.8 54.6 471.1

- Inventories 178.5 238.9 (25.3)

- Trade and Other Receivables 242.2 207.6 16.7

Total Assets 1,426.6 1,240.8 15.0

Current Liabilities 664.3 550.4 20.7

- Trade and Other Payables 281.5 319.5 (11.9)

- Short Term Borrowings 372.5 224.0 66.3

Long Term Borrowings 607.4 577.2 5.2

Total Liabilities 1,308.0 1,168.6 11.9

Balance Sheet Highlights

16

RMB’milAs at

end 9MFY15As at

end FY14Chg (%)

Inventory Turnover Days 33 47 (29.8)

Receivables Turnover Days 27 33 (18.2)

Payables Turnover Days 34 40 (15.0)

Debt to Equity Ratio# 8.27 10.96 (24.5)

Balance Sheet Highlights

Price to Book Value* 0.80 0.60 33.3

# Total interest bearing loans / Total equity

* Based on share price of RMB 0.16 as at October 22, 2015

17

RMB’mil 9MFY15 9MFY14 Chg (%)

Net Cash Generated from Operating Activities 110.6 87.1 27.0

Net Cash (Used in) Investing Activities (11.6) (13.5) (14.1)

Net Cash Generated from/(used in) Financing Activities 27.2 (36.9) 173.7

Net Increase in Cash & Bank Balances 126.2 36.7 243.9

Cash & Bank Balances at Beginning of Period 50.6 66.2 (23.6)

Cash & Bank Balances at End of Period 176.8 103.0 71.7

Cash Flow Statement Highlights

18

Growth Strategies

19

Focusing on products where the Group has pricing advantages as a high

volume producer (e.g. Sorbitol), and high margin products such as

fructose, high maltose syrup, maltitol, etc.

Targetting sales to established customers with proven track records,

including existing customers such as Coca-Cola, Pepsico, Wahaha,

Tsingtao Beer, China Resources Snow Breweries, etc.

Continue marketing and sales efforts to develop new customer

relationships

Organic growth driven by increasing consumption levels in China

Growth Strategies

Safe Harbour Statement

This presentation may contain forward looking statements that involve risks and uncertainties. Actualfuture performance, outcomes and results may differ materially from those expressed in forwardlooking statements as a result of a number of risks, uncertainties and assumptions. Representativeexamples of these factors include (without limitation) general industry and economic conditions,interest rate trends, cost of capital and capital availability, competition from other companies, shiftsin customer demands, customers and partners, changes in operating expenses, including employeewages, benefits and training, governmental and public policy changes and the continued availabilityof financing in the amounts and the terms necessary to support future business. You are cautioned notto place undue reliance on this presentation and the information contain therein, which are based oncurrent view of management on future events.

Without prejudice to or derogating from the generality of the foregoing, no representation orassurance is given by Luzhou Bio-chem Technology Limited that this presentation contains allinformation that an investor may require. To the extent permitted by applicable law, by Luzhou Bio-chem Technology Limited or its related persons (and their respective directors, associates, connectedpersons and/or employees) shall not be liable in any manner whatsoever for any consequences(including but not limited to any direct, indirect or consequential losses, loss of profits and damages)arising from the reliance or use of the information contain in this presentation.

Investors are advised to make their own independent evaluation from this presentation, consider theirown individual investment objectives, financial situation and particular needs and consult their ownprofessional and financial advisers as the legal, business, financial, tax and other aspects as investorsmay regard as relevant.

For more information, please visitwww.luzhoufood.com

Analyst/Media Contact:

NRA Capital Pte. Ltd. – Evan Ong/Eruwin Sudirman

Tel: 6236 6895

evan.ong@nracapital.com

eruwin.sudirman@nracapital.com

LUZHOU BIO-CHEMTECHNOLOGY LIMITED

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