Liuyang Fireworks (TSX-Venture: FWK) investor presentation for November 2009

1. Liuyang Fireworks
Investor Presentation
Liuyang Fireworks

2. Cautionary Note
on Forward-Looking Information
In addition to historical information, the statements set forth throughout this presentation include forward-
looking statements that may involve risk and uncertainties that could cause actual results to differ
materially from those in the forward-looking statements. This forward-looking information includes, among
other things, information with respect to expected growth in the domestic Chinese market, the recovery of
the Chinese economy, the shift to more profitable products, decreased selling expenses related to
transportation costs, as well as information with respect to the Company’s beliefs, plans expectations,
anticipations, estimates and intentions. The words, “may”, “could”, “should”, “would”, “suspect”, “outlook”,
“believe”, “anticipate”, “estimate”, “expect”, “intend”, “continue”, “plan”, “predict”, “probable”, “potential”,
“target” and similar words and expressions are used to identify forward-looking information. Risks and
uncertainties affecting forward-looking information include, but are not limited to, fluctuations and
seasonality in demand for fireworks, fluctuations in the costs of production and transportation, fluctuation
and uncertainty in foreign currency exchange rates, fluctuation in costs of materials, changes in the laws
of the PRC that affect the Company’s operations, regulatory approval, competition, product spoilage and
liability, and the risk that revenues do not grow as expected. These and other such factors are discussed
in greater detail in the Company’s Filing Statement dated may 27, 2009 and in its other public filings
available on SEDAR at www.sedar.com. Potential investors and other readers are urged to consider
these factors carefully in evaluating these forward-looking statements and information and are cautioned
not to place undue reliance on them. The forward-looking information contained in this presentation
reflects the expectations of the Company as of the date of this presentation and, accordingly, is subject to
change after such date. While the Company may elect to, the Company does not undertake to update
this information at any particular time excepts as required in accordance with applicable securities
legislation.
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3. fireworks
more than just the Fourth of July...
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4. Victoria Day Sporting Events Display Events
fireworks in
Concerts North Canada Day
New Year July 4
America
Canada Day Theme Parks City Events
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5. of the global fireworks supply
is consumed in China
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6. Sporting Lantern
Weddings New Year’s Graduations Events Festival
Day
Grand Theme Birthdays
Concerts Birthdays
Openings Parks
fireworks
in China
Summer Grand Moon
Graduation Festivals Holidays Openings Festival
Qingming Dragon
Sporting Spring
Festival Boat
Events Festival
Festival
Store Chinese
Births Concerts New Homes Valentine’s
Openings
Day
Summer
Funerals City Events Anniversaries Festivals City Events
Holidays
Liuyang Fireworks

7. International China
$2.7B $6.3B
Market
Size1
4-Year
CAGR2
5.8% 27.5%
1 2 Liuyang Fireworks
2007 2004 to 2007

8. Growth Driver:
Disposable income rising in China
$2.3
US$ Trillions
$2.2
$1.7
$1.3
2005
$1.5
2006 2007
79%
2008 2009
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9. Growth Driver:
Easing of Restrictions in Urban Areas
1993
282 Chinese cities placed restrictions
on the use of fireworks in urban areas
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10. Growth Driver:
Easing of Restrictions in Urban Areas
2005 2006 2007 2009
106 54 40 79
cities cities cities cities
ease restrictions ease restrictions ease restrictions ease restrictions
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11. Liuyang Fireworks
Leading manufacturer of premium fireworks
Among the top 5 manufacturers in China
16 years in operation
Extensive product portfolio in all categories
Focused on consumer products
Track record of innovation
Strategically located in China’s Liuyang region
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12. Liuyang Region
The “Silicon Valley of Fireworks”
Substantial tax
incentives
90% 60% Large pool of
skilled workers
Reputation for
quality
90% of global fireworks Of that 90%,
supply is produced 60% is produced in
in China. the Liuyang region.
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13. Leading Products
Palm Tree
Dragon Egg
Coconuts
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14. 1,000+ products
34 wholesale
customers
15 + countries
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15. Historical Financial Results
Positioning the Company for Future Growth
Revenue EBITDA Net Income
$M CDN $M CDN $M CDN
16 14.9 3.0 3.0
2.6
14 2.5 2.5 2.4
12
2.0 2.0
10 8.8 1.7 1.8 1.7 1.6
8.4 8.7
8 1.5 1.5 1.3
1.0
6 1.0 1.0
4
0.5 0.5
2
0.0 0.0
0 2006 2007 2008 YTD 2006 2007 2008 YTD
2006 2007 2008 YTD
Strategic decision to focus on high margin products
2007 to position company for new growth opportunities
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16. Growth Strategy
International sales Domestic sales
5%
Liuyang
Fireworks 95%
Current
Liuyang
Fireworks
Target 50% 50%
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17. Domestic Opportunity
Fragmented Uniquely
industry positioned
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18. Industry Structure
Chinese fireworks industry supply chain
manufacturer wholesaler retailer
15% net margin 30% net margin 50% net margin
consumer
Liuyang Fireworks
today
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19. Fragmented Wholesaler Market
Municipal license required to wholesale fireworks
Limit of 2-3 licenses per municipality
> 3,000 municipalities
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20. Vertical Integration
manufacturer wholesaler retailer
15% net margin 30% net margin 50% net margin
consumer
Access higher margins in wholesale segment
Leverage successful export distribution model
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21. Consolidate Wholesale Segment
Strategically target key regions with highest growth
opportunities
Acquire controlling position of dominant
wholesaler
Northeast
Each acquisition Region
should generate
$1M to $10M
in incremental
sales Shanghai
Region
Guangdong Region
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22. Proposed Acquisition Timeline
Sept. Sept. Sept. Sept.
2009 2010 2011 2012
3
wholesalers
7
wholesalers
TBD
(targets already identified)
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23. Uniquely Positioned
Only Chinese fireworks company publicly-listed in
North America—provides access to capital
Ability to expand capacity with minimal
capital expenditure
Critical mass and size to execute consolidation strategy
Extensive experience as a distributor through
historical export business
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24. Additional Opportunities in China
Acquire fireworks display company
• Integral to marketing and promotion
in domestic market
Short term
Open retail product showcase store(s)
• Showcase products to end user
• Generate higher margins
Acquire fireworks distribution logistics
Long term company
• Reduce costs
• Ensure capacity
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25. International Growth Strategy
Growth of sales in existing country markets
• Expand breadth of product offering
• Focus on specific customer needs
• Capture larger share of our customers’ purchases
US: Establish relationship with hybrid
wholesaler/retailer
• Build Liuyang Fireworks brand
• Leverage strong reputation
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26. Opportunity
in the fragmented Chinese fireworks industry
Proven Uniquely
Strategy
experience positioned
in fireworks of integration and with access to capital
industry consolidation markets
Capture a larger part of a growing market
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27. Liuyang Fireworks
Investor presentation
Liuyang Fireworks

28. Market Facts
Symbol (TSX-V): FWK
Recent Share Price: $0.63
Common Shares Outstanding: ~43.20 million
Market Capitalization: $27.2 million
52-Week Price Range: $0.40 - $1.56
Fiscal Year-End: December 31, 2009
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29. Contact
For more information, please contact:
Jacky Long
Chief Financial Officer
Liuyang Fireworks Limited
Tel : 416-613-0208 ext 206
jackylong@farocean.com
www.liuyangfwk.com
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30. Capital Structure
Number of
shares
outstanding Amount
Balance, December 31, 2008 50,000 $ 50,760
Shares redeemed at RTO (50,000) -
Consolidation of New Legend shares at 12:1 735,000 -
Issuance of shares at a price of $0.60 per share for debt 122,500 -
Issuance of shares at a price of $0.60 per share for debt 64,535 -
Shares issued to Strive Best’s original 50,000 shares 37,097,518 50,760
Shares issued on private placement at $0.60 per share 4,754,089 2,852,453
Shares issued on private placement at $0.60 per share 424,275 254,565
Share issuance costs paid at completion of RTO - (638,760)
Share issuance costs paid by Far Ocean Group prior to RTO - (449,961)
Balance, June 30, 2009 43,197,917 $ 2,069,057
In 2008, Strive Best issued 50,000 common shares at $1.0152 per share for gross proceeds of $50,760.
On June 24, 2009, such 50,000 common shares were redeemed on the reverse takeover.
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31. Liuyang Fireworks
Investor presentation
Liuyang Fireworks