1Q2016 (Jul 15 – Sep 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

5

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

413.7

146.9 0.3 0.3

105.4

28.7

994.1

957.0

663.0

164.6 125.0

893.0

318.3

200.1

42.5 39.0

0

500

1,000

1,500

2,000

2,500

FY13 FY14 FY15 1Q15 1Q16

RM

B(m

il)

Siwu Regular Siwu Premium Luoyang Dukang Regular Luoyang Dukang Premium

863.4

Sales

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

2,406.2

1,450.9

Note: Financial Year End - 30 June 1Q16: Jul 2015 – Sep 2015

207.4 164.0

7

Sales volume & Average selling price

(Tonnes) (RMB/Kg)

(Tonnes) (RMB/Kg)

FY2014: Jul 13 – Jun 14 Note: Financial Year End - 30 June

679 1,136 1,234 1531 648 432 180 547 320 324 393 359 274

188.5 199.6 192.4 196.5 188.0 176.2 170.0 164.2

132.8 148.5 146.1 145.1 142.3

0

50

100

150

200

250

0

500

1,000

1,500

2,000

1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16

Luoyang Dukang Premium

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

5,027 8,615 9,455 6,233 6,107 8,976 9,610 6,134 6,557 6,214 6,590 3,697 4,038

34.5 36.0 32.9 31.9 30.9

28.8 31.0

34.7

25.1 29.5 29.3

33.0

31.0

0

10

20

30

40

-

2,000

4,000

6,000

8,000

10,000

12,000

1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16

Luoyang Dukang Regular

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

1Q16: Jul 2015 – Sep 2015 8

9

Gross profit

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

20.6 40.9

15.5 19.6 17.2 15 5.2 1 0.1

9.1

20.2

15.1 13.2 8.2 5.3 0.5

60.5

105.2

112.6

67.5 63.1 79.5

16.3

68.7

22 44.5 47.5

17.9 35.2

70.9

125.7

130.8

156.9

60.4 42.2

97

43.8

16

21.4 25.1

18.9

18

0

50

100

150

200

250

300

1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16

RM

B (

mil)

Quarterly Gross Profit

Siwu Regular Siwu Premium Luoyang Dukang Regular Luoyang Dukang Premium

113.5

38.1

65.9 72.6

161.1

292.0

274.0

257.2

148.9 141.9

119.0

36.8

1Q16: Jul 2015 – Sep 2015

53.2

Gross profit margins for Dukang brand

FY2014: Jul 13 – Jun 14 10

Note: Financial Year End - 30 June

34.8% 32.2%

19.9%

13.4%

28.2%

44.0%

36.9%

40.7%

33.5%

46.2%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

FY13 FY14 FY15 1Q15 1Q16

Gross Profit Margins

Luoyang Dukang Regular Luoyang Dukang Premium

1Q16: Jul 2015 – Sep 2015

(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

257.2 327.9 126.7 36.9 24.9

10.7%

22.6%

14.7%

17.8% 15.2%

0%

5%

10%

15%

20%

25%

0

50

100

150

200

250

300

350

FY13 FY14 FY15 1Q15 1Q16

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 1Q16: Jul 2015 – Sep 2015 11

Net Profit & Margin

FY2014: Jul 13 – Jun 14

389.7 44.1

-561.4

-29.4 -0.8

16.2%

3.0% 0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

20%

-800

-600

-400

-200

0

200

400

600

FY13 FY14 FY15 1Q15 1Q16

Pe

rce

nta

ge (

%)

RM

B (

mil)

Net Profit & Margin

Profit attributable to equity holders Net Profit Margin

Note: Financial Year End - 30 June

*Impairment losses of RMB547.4 million

1Q16: Jul 2015 – Sep 2015 12

Financial position

RMB (mil) As at 30 September 2015

As at 30 June 2015

Total Equity 1,436.7 1,437.3

Total Assets 1,868.0 1,838.4

Inventories 644.8 663.7

Cash & Equivalents 495.7 403.0

Total Liabilities 431.5 401.2

Bank Borrowings 134.8 134.8

Gearing Net Cash Net Cash

RMB (mil) 1Q2016 1Q2015

Net cash generated/(used in) operating activities

96.2 (88.3)

Net cash generated/(used in) investing activities (1.0) 0.3

Net cash generated/(used in) financing activities (2.4) (3.3)

Net Increase/(decrease) in cash and cash equivalents

92.7 (91.4)

Note: Financial Year End - 30 June 1Q16: Jul 2015 – Sep 2015 13

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 1Q2016 FY2015

Accounts Receivable Turnover

0 0

Accounts Payable Turnover 76 60

Inventory Turnover 696 492

1Q16: Jul 2015 – Sep 2015 14

Growth strategies

D

Growth strategies and market opportunities

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

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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

17

No. of distributors *

Luoyang Dukang

2011 2012 2013 2014 2015 1Q2016

Henan Province 114 144 88 87 78 78

The rest of China 56 83 82 81 98 98

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

Super Market Restaurant Specialty Store Flagship Store Dennis Department Stores

Optimize traditional distribution network

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Improve capacity & utilization

700

2,200

2,410 2,300

700

2,200 2,200 2,330

922

2,766 2,766

2,161

468 802

2,313

2,368 2,301

624

2,311

2,364 2,315

803

2,859 3,023

1,777

376

115%

105% 98% 100%

89%

105% 107%

98%

87%

103% 109%

82% 80%

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 1Q16

Grain Alcohol of Luoyang Dukang*

Quarterly Capacity Output Utilisation Rate

(Tonnes) %

Note: Financial Year End - 30 June

*Annual capacity of 4,684 tonnes from 2,428 fermentation pools ** Fermentation period of 90 days

1Q16: Jul 2015 – Sep 2015 19

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 Yong Jing Wen Investor Relations Consultant Financial PR Pte Ltd Tel: +65 6438 2990 (Singapore) Email: staff@financialpr.com.sg

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