Yulong Eco-materials Limited · OTC:YECO
Yulong Eco-materials — Investor Presentation (November 2015)
31 slides from Yulong Eco-materials's investor presentation, Nov 5, 2015
Slide 1: Investor Presentation November 2015
Yulong Eco - Materials Limited Yulong Eco - Materials Limited Nasdaq: YECO A vertically integrated manufacturer of ECO - FRIENDLY building products and a construction WASTE RECYCLING company Investor Presentation November 2015
Slide 2: Forward Looking Statement
Yulong Eco - Materials Limited Forward Looking Statement 2 This presentation contains forward - looking statements that by their nature involve risks and uncertainties, including statements based on our current expectations, assumptions, estimates and projections about us and our industry. In some c
Slide 3: Investment Highlights
Yulong Eco - Materials Limited Investment Highlights 3 VERTICALLY INTEGRATED BUSINESS MODEL • New construction waste management segment; solid fly - ash bricks & cement business • Exclusive recycling license in Pingdingshan and Shangqiu. Recently expanded in other cities within Henan Province. ECO -
Slide 4: Our Strategic Goals
Yulong Eco - Materials Limited Our Strategic Goals ▪ Maintain and expand leading position in core, profitable concrete and brick business ▪ Grow revenue, earnings, and margins through our new business segment: ▪ Pingdingshan: Hauling and exclusive recycling license until 2032 - business launched in
Slide 5: About Yulong Eco-Materials
Yulong Eco - Materials Limited About Yulong Eco - Materials ▪ Yulong Bricks: Eco - friendly fly - ash brick plant: 50% local market share in fiscal 2015. ▪ Yulong Concrete & Transport: Ready - mixed concrete plant: 30% local market share in fiscal 2015. 5 ▪ Prototype hauling and recycling business h
Slide 6: Our Operations
Yulong Eco - Materials Limited Yulong Renewable Yulong Concrete and Transport Yulong Bricks Our Operations 6 1. Solid Core Business 2. Expansion: Products, Capabilities, Markets
Slide 7: Solid Foundation: Fly-ash Brick & Concrete Revenue
Yulong Eco - Materials Limited $15.6 million $30.0 million Fiscal 2015 Revenue for Fly - ash Brick & Concrete Fly-ash Bricks Concrete Solid Foundation 7 SOLID, ESTABLISHED Fly - ash Brick and Concrete Business: 98.5% of total revenue for Fiscal 2015
Slide 8: Yulong Bricks: Eco-friendly Fly-ash Brick Plant
Yulong Eco - Materials Limited A leading brick supplier in Pingdingshan: approximately 50% of market share in fiscal 2015 Yulong Bricks: Eco - friendly Fly - ash B rick P lant 8 Brick facility Brick yard Control room Offices Bricks
Slide 9: Bricks: Eco-friendly Fly-ash Brick Plant
Yulong Eco - Materials Limited Yulong Bricks: Eco - friendly Fly - ash Brick Plant 9 ▪ Eco - friendly and low cost production ▪ Utilizes 30 % reclaimed fly ash as a substitute for cement; reduces cost of raw materials and energy usage ▪ Four brick production lines with an annual production capacity
Slide 10: Yulong Concrete: Ready-mixed Concrete Plant
Yulong Eco - Materials Limited One of the largest concrete suppliers in Pingdingshan: approximately 30% of the local market in fiscal 2015. Yulong Concrete: Ready - mixed C oncrete P lant 10
Slide 11: Concrete: Ready-mixed Concrete Plant
Yulong Eco - Materials Limited Yulong Concrete: Ready - mixed Concrete Plant ▪ Two mixing towers, each with a production capacity of approximately 750 m 3 daily or 200,000 m 3 annually ▪ Efficient raw material handling for two on - site plants ▪ ISO9000 quality system certification ▪ Arrangements wi
Slide 12: Building Upon our Solid Foundation
Yulong Eco - Materials Limited Building Upon our Solid Foundation 12 EXPANSION into Construction Waste Hauling and Recycling: 2015 Fiscal Revenue: $0.7 million or 1.5% of total revenue (operations initiated in late April 2015) 2016 Fiscal Revenue: p rojected to reach over 20% of total revenue Signif
Slide 13: Waste Management: Addressing critical environmental needs
Yulong Eco - Materials Limited Waste Management: Addressing critical environmental needs 13 EXPANSION into Construction Waste Hauling and Recycling: • China’s increasing urbanization rate and continued construction activity create strong demand for construction waste collection services • Urban deve
Slide 14: Waste Management Solutions
Yulong Eco - Materials Limited Waste Management Solutions 14 Non project based solution: • Targeting small projects, in various locations within the same city • Waste it hauled to a recycling center (such as the recently built in Pingdingshan ) • Processed waste is used as raw material for internal
Slide 15: Vertically Integrated Business Model For Renewable Products
Yulong Eco - Materials Limited 15 Vertically Integrated Business Model For Renewable Products 3 revenue sources: ▪ Hauling ▪ Sale of recycled aggregate ▪ Sale of finished eco - friendly building products 1 Utilizes solar powered heating system Renewable Eco - Friendly SERVICES & PRODUCTS : Raw mater
Slide 16: Hauling Business in Pingdingshan and Other Cities
Yulong Eco - Materials Limited Hauling Business in Pingdingshan and Other Cities 16 ▪ Initiated hauling operations in April 2015 ▪ Exclusive license through 2032 to haul and process construction waste within the built - up area of Pingdingshan Construction Waste HAULING : Yulong receives a fee for e
Slide 17: Recycling Business in Pingdingshan & Other Cities
Yulong Eco - Materials Limited Recycling Business in Pingdingshan & Other Cities 17 Construction Waste RECYCLING : Mobile recycling stations in other cities ▪ First project stated in June 2015 ▪ Several contracts in Shangqiu and Zhengzhou (see slide 17) Waste r ecycling plant in Pingdingshan ▪ Comme
Slide 18: Recent Recycling Contracts
Yulong Eco - Materials Limited Recent Recycling Contracts 18 AUG. 2015: WASTE HAULING AND RECYCLING OPERATIONS IN SHANGQIU REVENUE MODEL: • 19 RMB (or approx. $3) per metric ton of hauled waste • Over 1.3 million metric tons of construction waste for a period of 18 month • Total potential revenue of
Slide 19: State of the Art Brick Plant
Yulong Eco - Materials Limited State of the Art Brick Plant 19 ▪ The new state of the art, vertically integrated brick plant ▪ Commenced production in April 2015 and has an annual capacity of 75,000 m 3 ▪ Producing a wider range of brick products that can be used for pavements, gardens and squares ▪
Slide 20: Recycling and Brick Plant with Robust Capabilities
Yulong Eco - Materials Limited Recycling and Brick Plant with Robust Capabilities 20 Sorted F ine A ggregates Brick Manufacturing Line Finished Product: Eco - friendly Bricks Demolition Site Hopper and Crusher Raw Materials Processing
Slide 21: Higher Efficiency Remains our Focus
Yulong Eco - Materials Limited Higher Efficiency Remains our Focus 21 Improving EFFICIENCY and developing NEW PRODUCTS : Our New State - of - The Art Research & Development Center
Slide 22: Research & Development Center
Yulong Eco - Materials Limited Research & Development Center Cooperation agreements with the Henan Communication Science and Technology Research Institute, Ltd., ▪ To produce and file with the National Bureau of Quality and Technical Supervision (Henan Province) by Nov. 30 a technical code governi
Slide 23: Major Customers
Yulong Eco - Materials Limited Major Customers Customers include: developers of commercial, residential and infrastructural projects in and around Pingdingshan, and also state - owned and private enterprises. For fiscal 2015, no single customer accounted for 10% or more of total sales. 23 Larges
Slide 24: History of Profitable Growth
Yulong Eco - Materials Limited Historical Net Income ($ in million) Historical Revenu e ($ in million) History of Profitable Growth (limited by capacity) $11.3 $14.0 $15.0 $15.6 $ [VALUE] $ [VALUE] $ [VALUE] $30.0 $0.7 $0.0 $10.0 $20.0 $30.0 $40.0 $50.0 Fiscal 2012 Fiscal 2013 Fiscal 2014 Fiscal 201
Slide 25: Revenue Breakdown – Fiscal 2015 vs. Fiscal 2014
Yulong Eco - Materials Limited Revenue Breakdown – Fiscal 2015 vs. Fiscal 2014 25 Revenue Bricks Concrete Recycling Total Hauling Recycled Aggregates Recycled Bricks 2014 Fiscal Year $15.0 M $29.5 M $ - $ - $ - $44.5 M 2015 Fiscal Year $15.6 M $30.0 M $0.4 M $0.08 M $0.2 M $46.3 M Increase in $ $0.6
Slide 26: Projected Growth
Yulong Eco - Materials Limited Projected Net Income ($ in million) Projected Revenue ($ in million) Projected Growth 26 $46.20 $0.00 $20.00 $40.00 $60.00 $80.00 Fiscal 2015 Fiscal 2016 Fiscal 2017 8.7 $0.00 $4.00 $8.00 $12.00 $16.00 $20.00 Fiscal 2015 Fiscal 2016 Fiscal 2017
Slide 27: Core Business as a Platform for Future Growth
Yulong Eco - Materials Limited 27 33.5% 65.0% 1.5% Revenues 2015 Fiscal Year Fly-ash Bricks Concrete Recycling products 26% 52% 11% 2% 5% 4% Projected Revenues Fiscal Year 2016 Fly-ash Bricks Concrete Waste Processing Recycled Brick Agregates Hauling Core Business as a Platform for Future Growth Rec
Slide 28: Experienced Management & Board
Yulong Eco - Materials Limited Experienced Management & Board 28 Zhu Yulong - Founder and Chairman ▪ Representative of the Ninth People's Congress of Pingdingshan City, Henan Province ▪ The Standing Committee Member of Youth Union, Henan Province ▪ Ph.D. candidate in Economics from Sichuan Universit
Slide 29: Summary
Yulong Eco - Materials Limited Summary 29 Addressing Critical E nvironmental N eeds in China Leading Market Position Significant Growth Opportunities - Hauling & Recycling Segment Expansion Outside of Core Market Strong Management Team
Slide 30: Contact us
Yulong Eco - Materials Limited Contact us For Additional Information Contact: Investor Relations Counsel: The Equity Group Inc. Lena Cati, Vice President 212 - 836 - 9611 lcati@equityny.com www.theequitygroup.com or Asia IR•PR Jimmy Caplan, Managing Director 512 - 329 - 9505 jimmy@asia - irpr.com Me
Slide 31: Limited A vertically integrated manufacturer of ECO - FRIENDLY building products and a construction
Yulong Eco - Materials Limited Yulong Eco - Materials Limited Nasdaq: YECO A vertically integrated manufacturer of ECO - FRIENDLY building products and a construction WASTE RECYCLING company Investor Presentation November 2015
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