Energroup Holdings Corp. · OTC:ENHD
Energroup — Investor Presentation (February 2008)
22 slides from Energroup's investor presentation, Feb 25, 2008
Slide 1: Chuming: A Chinese Market Leader in Green Meats
aA CHUMING PRECIOUS SHEEN INVESTMENTS Ltd., OTCBB : ENHD “CHUMING” A Chinese Market - Leader in “Green” Meats FEBRUARY 2008 @erom
Slide 2: Notice Regarding Forward-Looking Statements
Notice Regarding Forward-Looking Statements This presentation contains projections and statements relating to CHUMING that constitute “forward-looking statements.” These forward-looking statements may be identified by the use of predictive, future-tense or forward-looking terminology, such as “inten
Slide 3: Company Overview
Company Overview (Churgs Datan Coporaie Ofees Chuming is the largest pork processor in Dalian - 2 million population. ‘Chuming is the second largest producer and supplier in Liaoning Province - 42 million population - and in Northeast China’s region of 108 million habitants, The Company processed ap
Slide 4: Corporate Structure
Corporate Structure Precious Sheen Co. Ltd. “Chuming” was established in the PRC in 2007 prior to APO with Energroup Holdings Corp. Chuming operates three subsidiaries (incorporated in 2004) one for each revenue generating activity.
Slide 5: Select Financials
Fiscal Year Select Financials December 31% Last-Traded Price 8/07 (ENHD) PIPE Price $7.50 $4.40 Fully-Diluted Shares Outstanding 21.Amillion Market Capitalization (APO Price) $93 million Management Ownership 69% Net Cash (Post PIPE) $10.4 million E Revenue 2007 - Guidance $128.0 million Net Income 2
Slide 6: Guidance and Make-Good Targets
Chuming’s Guidance and Make- Good* Targets Revenue: $ 128.0 MM — ] i | Net Income: $15.9 MM_ Net Income: $20.9 MM ~ Net Income: $12.1 MM H 2007 Guidance [JBM 2008 Make-Good Mj 2009 Make-Good [ij * Chairman Shi has deposited in escrow his own shares totalling 1,931,818 against 2008 net income and an
Slide 7: China is the World's Largest Pork Market
CHINA is the World’s Largest Pork Market ork Production, Selected Counties, 2005-2 ‘ery Conmamptin Pr Cpt es ca tay | ome ee 89 ‘eon 2% 1 China is the world’s largest producer and consumer of pork. In 2006, China processed 680.5 MM hogs. NBSC statistics show YoY general retail sales increased 17% in
Slide 8: China Market Trends
China Market Trends Increasing emphasis placed by Chinese consumers on the quality and hygiene of meat. The market is in transition from traditional “Wet” (open air) to “Dry” (retail) markets. The government is imposing strict regulations on slaughter houses which may result in smaller players exiti
Slide 9: Premium Natural Products
Chuming’s Premium Natural Products + Fresh pork products for transport and consumption within 7 days. + Frozen pork for transport and consumption within 180 days. + Processed Meat Products which include 3 product lines of 100+ types of hams and sausages. Chuming also prepares an additional 200 promo
Slide 10: Product Line Breakdown
Product Line Breakdown by Category / Sales / GP Fresh Pork 43,831 42517 10.988 PasrPreaas | 14,904 14asa | sis0 | 11.36% Frozen Pork 312 ara | sis6 | 1979 Procrased Meas | 3,738, zara [sina | 2070% Poweedsea | aso | si7 | 3120% | 4052 soa | 33.50% ecesed By 42 | svar | s4co% | 1210 27 | 2970% Averag
Slide 11: Revenue Composition by Sales Channel
Revenue Composition by Sales 2007 ‘Channel Revenue Gross | Revenue | Percentage | Gross (usosmM) Profit % | (USDSMM) | of Revenue | Profit % Wholesale $449 64% 17% $58.4 46% 12% Hypermarkets & | $16.8 2% 197% 3405 3% 20.2% ‘Supermarkets Franchising 368 8% 20% $236 78% 782% stores Restaurants and | S
Slide 12: Branded Sales Channel
Chuming’s Branded Sales Channel WAL*MART Carrefour MGiii# WAS RIG bYmall NEW MART Hol * Over 3,600 points of sale. — 3,000 customers and convenience stores. — 500 Chuming-Branded franchise stores. = Product placements at 100+ hyper and supermarkets + Refrigerated distribution and transportation comp
Slide 13: Strengths
Chuming’s Strengths Company location on Liaodong Peninsula provides stable breeding grounds and local tax benefits. Constant, high quality local pig supply at market press from former parent, Chuming Group Co. Utilizes 5-line imported Stork™ system capable of processing 120 million kg of fresh meat
Slide 14: Revenue Growth: 2005 thru 2007
Revenue Growth : 2005 thru 2007 months ended 9 months ended Fiscal year ended Fiscal year ended ‘September 30, September 30, December 31, December 31, 2007 2006 20068 20058 Revenue $89,718,841 $50,205,347 $70,396,439 $54,119,895 Cost of Revenue $74,968,451 $40,720,510 $57,704,853 $45,284,186 Gross P
Slide 15: Competitive Advantages
Competitive Advantages Dominant player in Dalian and Northeast China, an industrial, commercial and agricultural supply center. Strong Supply Chain and Tight Cost Controls. > Stable supply of quality hogs fed with cereals and soy meal. > Cold-chain vertical integration model — slaughter to delivery
Slide 16: Growth Strategies
Growth Strategies Grow market share in traditional fresh meat markets throughout Northeast China — 108 million habitants. Increase production, continue efficiency improvements and expand distribution capability. Increase Chuming franchise stores from 500 to 1,200 locations. Research, develop and pro
Slide 17: Dalian Competitors
Chuming’s Dalian Competitors Packaged Meat and Deli Fresh Meat Bangchui 5% hengxin baer: Island 18% Chuming 20% Nine Stars Chuming 0% Y 12% fu 8% 6% Shineway 15% ‘Yurun 6% + Current 8.4% and 2.6% market share in Liaoning Province (with a population of 42 million) provides significant room for growth
Slide 18: Experienced Management Team
Chuming’s Experienced Management Team Mr. Huashan Shi - President and CEO, 48 ‘A graduate of Beying Renwen University in Corporate Law, CHUMING Founder Mr. Shi has nearly 20 years of experience inthe {ood industy. He established Dalian Chuming Industry Development Company in 1992, which started the
Slide 19: Chuming Use of Proceeds
Chuming Use of Proceeds $17 million Private Placement on 1-7-08 Amount (USD$ million) Plant and Equipment Working Capital Sales and Marketing RTO-Related Expenses
Slide 20: Competitor COMPS
Chuming’s Competitor COMPS Company Price Market (local) ‘Cap (local) Zhongpin NASDAQ: | USOSI382 | USs403.0 HOGS sia Smithfield NYSE: SFD | usos2598 | usps3.49 8 China Yurun 1068.HK HKS10.12 HK $168 B Henan 00895 cH | RMaS5O75 | RMB Shuanghui baa Average * Initial raise pricing,
Slide 21: Guidance and Make-Good Targets
Chuming’s Guidance and Make- Good Targets Revenue: $128 MM : Net Income: $15.9 MM ' Net Income: $20.9 MM EPS: $0.99 2007 Guidance [iB 2008 Make-Goods| ¥ Chuming is a vertically integrated company. ¥ The Company is diversifying its portfolio of fresh and processed products. ¥ Chuming is in a product
Slide 22: Questions?
Questions? ‘Company Contact Investor Relations Contact(s) John Bai John Mattio & Feng Peng Director of International Markets, Hayden Communications Chuming International No. 3-1, Honggang Lu, Ganjingzi 56 June Road District, North Salem, NY 10560 Dalian, Liaoning Province US #1 (914) 669-0222 CHINA
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