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TRUMP DRAGON DISTILLERS HOLDINGS LIMITED

2QFY10 Results Presentation

CONTENTS

• Financial Highlights

• Corporate Updates

FINANCIAL HIGHLIGHTS

HY10 Highlights

HY: Half year ended 31 December

RMB ’mil HY09 HY10 Change %

Revenue 404.1 334.5 (17.2)

Gross Profit 135.6 102.1 (24.7)

Profit Before Tax 72.9 59.4 (18.5)

Net Profit 62.6 51.5 (17.7)

A&P Expenses/Sales 7.4% 6.9% (0.5 ppt)

Admin Expenses/Sales 4.8% 3.5% (1.3 ppt)

Effective Tax Rate 14.2% 13.3% (0.9 ppt)

Gross Profit Margin 33.6% 30.5% (3.1 ppt)

Profit Before Tax Margin 18.1% 17.8% (0.3 ppt)

Net Profit Margin 15.5% 15.4% (0.1 ppt)

* Based on weighted average number of 625 million ordinary shares in issue.

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2QFY10 Highlights

2Q: Three months ended 31 December

RMB ’mil 2QFY09 2QFY10 Change %

Revenue 232.3 210.3 (9.5)

Gross Profit 79.2 67.4 (15.0)

Profit Before Tax 40.7 41.1 0.9

Net Profit 34.8 35.6 2.1

EPS (RMB cts)* 5.58 5.69 2.0



Effective Tax Rate 14.4% 13.4% (1.0 ppt)

Gross Profit Margin 34.1% 32.0% (2.1 ppt)

Profit Before Tax Margin 17.5% 19.5% 2.0 ppt

Net Profit Margin 15.1% 16.9% 1.8 ppt


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2QFY10 Highlights

RMB ’mil 1QFY10 2QFY10 Change %

Revenue 124.2 210.3 69.3

Gross Profit 34.8 67.4 93.8

Profit Before Tax 18.4 41.1 123.6

Net Profit 15.9 35.6 123.4

EPS (RMB cts)* 2.55 5.69 123.1



Effective Tax Rate 13.3% 13.4% 0.1 ppt

Gross Profit Margin 28.0% 32.0% 4.0 ppt

Profit Before Tax Margin 14.8% 19.5% 4.7 ppt

Net Profit Margin 12.8% 16.9% 4.1 ppt

1Q: Three months ended 30 September 2Q: Three months ended 31 December


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Revenue

RMB’ mil

2QFY09 vs 2QFY10

Revenue declined 10% to

RMB210m

– Decrease in sales volume of

Premium series

– Segmental revenue:

• Premium: 26%

• Regular: 3%

1QFY10 vs 2QFY10

Revenue jumped 69% to RMB210m

– Increase in both sales volume

and ASP

– Segmental revenue:

• Premium: 72%

• Regular: 68%

232 210

124


2QFY101QFY102QFY09

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Sales Volume & ASPs


2QFY09 2QFY10 Change %

1QFY10 Change %

Total Sales Volume (tonnes)

6,178 6,655 7.7 3,979 67.3

Premium 635 458 (27.9) 266 72.2

Regular 5,543 6,197 11.8 3,713 66.9

Overall Average Selling Price/kg (RMB)

37.6 31.6 (16.0) 31.2 1.3

Premium 154.6 159.0 2.8 159.6 (0.4)

Regular 24.1 22.2 (7.9) 22.0 0.9

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Gross Profit & GP Margin

RMB’ mil


2QFY101QFY102QFY09

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Segmental GP Contribution

44%

RMB29m

56%

RMB38m

RegularPremium

2QFY10

36%

RMB29m64%

RMB51m

Regular Premium

2QFY09

Gross Profit Margin

2QFY09 1QFY10 2QFY10

Premium 51.3% 51.9% 52.2%

Regular 21.5% 15.6% 21.3%


37%

RMB13m

63%

RMB22m

Regular Premium

1QFY10

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Net Profit

RMB’ mil


2QFY101QFY102QFY09

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Balance Sheet Highlights

RMB’mil 30 June 09 31 December 09

Total equity 564.0 615.5

Total assets 631.9 728.3

- Cash & Cash Equivalents 484.3 545.4

Total liabilities 68.0 112.8

- Bank Borrowings 10.5 -

ROE (%) 18.6 16.7 (annualised)

ROA (%) 16.6 14.1 (annualised)

NAV per share (RMB cts) # 90.24 98.48

# Based on share capital of 625 million ordinary shares in issue.

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Financial Ratios

2QFY09 2QFY10

Debtors’ Turnover Days 1 42 40

Creditors’ Turnover Days 2 54 62

Inventory Turnover Days 3 35 40

Notes:

1. Debtors’ Turnover Days = _______Trade receivables as at 31 Dec____ _ ___ X 365 days4 x Revenue for the three months ended 31 Dec

2. Creditors’ Turnover Days = ______________Trade payables as at 31 Dec _________________ ______ X 365 days4 x Cost of sales excl. consumption tax for the three months ended 31 Dec

3. Inventory Turnover Days = ________________Inventories as at 31 Dec _________________________ X 365 days4 x Cost of sales excl. consumption tax for the three months ended 31 Dec


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Capacity & Utilisation

Self-produced grain alcohol 2QFY09 2QFY10

Available Production Capacity

(tonnes)

928.8 928.8

Utilisation Rate 98% 98%

Baijiu

Available Production (Bottling) Capacity (tonnes)

9,948 9,948

Utilisation Rate 65% 68%

• As at 31 Dec 09:

• 1,548 fermentation pools, 14 distillation lines and 11 bottling lines

• Maximum annual bottling capacity is 39,790 tonnes


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Corporate Updates

• Continues to fine-tune and streamline product range to target mid-end baijiu (白酒) market

– New Regular series products in 2QFY10

Corporate Updates

Jinyuzun (金豫樽)Jinyuyuan (金豫源) Jinyucang (金豫藏)

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• Entered into conditional sales and purchase agreement pertaining to the acquisition of Luoyang Dukang Holdings Limited (洛阳杜康控股有限公司)

• Aggregate cash consideration of sum of RMB600 million

– To be satisfied by

• RMB145 million from IPO proceeds

• Proceeds from proposed issue of RMB200 million 5% (U.S. Dollar-settled) Convertible Bonds

• Internal resources and external financing

• Luoyang Dukang’s unaudited pro forma financials for the 10 months end 31 Oct 09

– Consolidated turnover: RMB239.9 million

– Profit after taxation: RMB45.9 million

– Net assets of RMB213.3 million as at 31 Oct 09

(Assuming Luoyang Dukang is in existence as at 1 Jan 09)

Proposed Acquisition

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• The following Group Chart illustrates the shareholding structure of Luoyang Group upon completion of our Proposed Acquisition:

Proposed Acquisition

Trump Dragon Distillers

100%

Henan Zhongxin Haifu Limited

Sea Will International Limited

100%

Trump Dragon Investment Limited

100%

Luoyang Dukang

100%

49% 100%

Ruyang Siji

Trading -

Ruyang Dukang

(汝阳杜康)

trademark holder

Henan Dukang

Distillers

Yichuan Dukang

Sales

Yichuan Dukang

Jizu Assets Mgt -

Dukang (杜康)

trademark holder

1%

99%

1%

100%

99%

Ruyang Dukang

Distillers

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Rationale of Acquisition

• Set to acquire 2 renowned brands of baijiu “汝阳杜康” (Ruyang Dukang) and “杜康” (Dukang)

– Aim to replicate our business model after our success in the revamp of our “四五”(Siwu) brand name

• Set to substantially strengthen the Group’s visibility in the baijiu market in the PRC

– The rich heritage of the two brand names will enhance our Group’s profile throughout PRC, in particular, Luoyang City, Henan Province

• Expect to increase our production capabilities by five-fold for grain alcohol and two-fold for baijiu

• Set to increase our Group’s market presence:

– By leveraging on a nation-wide ready stream of sales and marketing channels, in particular, Luoyang City, which our Group currently has no presence

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• Completion of the S&P Agreement, conditional upon below, before 12 May 2010:

– Due diligence exercise by Trump Dragon Distillers;

– In-principle approval and/or clearance from the SGX-ST;

– Shareholders’ approval, to be obtained in a general meeting for the proposed acquisition, and other requirements.

Sale & Purchase Agreement

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About Du Kang (杜康)

• 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。”

• Government leaders called for the revival of Dukang baijiu in the 1960s– Premier Zhou Enlai called for its revival

– 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

• Unique scientific brewing techniques based on age-old recipe to produce the distinctive Dukang Wine.

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Our Next Steps

• To be the top provincial baijiu brand in Henan within the next 3 years

– Via brand building, capacity expansion and market expansion

• To be the amongst the top national baijiu brands in 5 years

– Via enhanced brand value and product offerings, including quality aged baijiuproducts

Self-produced grain alcohol FY09 Post-Acquisition

Production Capacity

(tonnes)

2,890 17,890

Baijiu

Production Capacity

(tonnes)

39,790 129,790

Expected Capacity Expansion

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Extended Market Reach

• Strengthen market presence in Henan Province

– Access to more sales and marketing channels, esp in Luoyang City

• Expand distribution network beyond Henan Province

– Ready stream of sales and marketing channels throughout the PRC

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Thank You

“何以解忧，

唯有杜康。”

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