Investor Presentaiton
Recent Initiatives
Customers
Employees
Creditors
Issues Prior to November 6
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Ongoing endemic litigation with customers and
joint venture partners disrupted operations and
joint ventures
Key customer Hebei Jingye seized Pingshan
factory on Dec. 2nd 2015
Four other disputes with key customers and joint
venture partners since late 2015 involving
contracts and unpaid dues
Low morale due to across the board pay cut of
25% since 2015, while increasing Sun & Strutt
bonuses by over 50%
Dissatisfaction from employees due to 2-month
delay in salary payments for May and June 2016
Less than US$12MM in cash offshore at end of
October 2016; no fundraising
Poorly conceived and executed fundraising
measures (e.g. each plant manager forced to
pledge equipment to raise RMB 5 million or face
two-month salary penalty)
Disputes with customers undermined creditor
confidence and rating agency views
Current Management Actions
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Improving the strained relationship with
customers and more rational approach to dealing
with customer issues
This has not been done at the expense of
receivables collection, which were highest on
record in December 2016 and January 2017
Public expressions of support from all top 5
customers and 25 other major customers
Much improved employee morale and greater
engagement in managing the business
Working on improving incentive alignment
Public support letters from 110 core
management, including VP Chen Kai and Deputy
GM Suo Yaotang
Despite termination of placing, successfully
refinanced HK$820MM due in January 2017, with
support from Originwater
Engaging in constructive discussions with
creditors
YINGDE GASES GROUP COMPANY LIMITED
盈德氣體集團有限公司
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