China New Energy Ltd. · HKEX:1156
China New Energy — Investor Presentation (November 2011)
24 slides from China New Energy's investor presentation, November 2011
Slide 1: Investor Presentation Nov 2011
Investor Presentation Nov 2011 Mr Weijun Yu Mr Zhaoxing Tang Mr Shiang-Peow Foo Mr Richard Bennett
Slide 2: China New Energy Limited (AIM:CNEL)
China New Energy Limited (AIM:CNEL) • A leading technology and engineering solutions provider in the design and construction of biofuel and biochemical production facilities. • An established company with excellent track record and strong business model • Inception since 2002 • 100 projects with agg
Slide 3: Board of Directors
Board of Directors YU Weijun (46) MBA, Executive Chairman Mr. Yu is the Chairman of CNE and ZKTY and is primarily in charge of the overall strategic planning and corporate development of CNE. Prior to joining CNE, he worked was Deputy Chief of GIEC CAS. Mr. Yu holds an Executive Master of Business A
Slide 4: History
History CNE Group of Secured Thail Companies Ubon Project in officially Northern incorporated Secured a Thailand Predecessor contract with company Awarded the first Indonesia Fuel formed and in a series of Ethanol Co. secured its first contracts by Jilin ZKTY was Limited major contract Meihekou Fouk
Slide 5: Business Model Overview
Business Model Overview • Integrated technology and engineering solution provider to biofuel and biochemical producers CNE AIM quoted, Jersey incorporated, Group holding company Guangdong Zhongke Tianyuan New Energy Science & Technology Co. Wholly foreign owned enterprise and trading entity Ltd (“ZK
Slide 6: Primary Market Drivers and Opportunities
Primary Market Drivers and Opportunities Drivers Opportunities • Bioenergy is widely considered to be one of the key alternatives to fossil fuel Peak Oil • Mandatory blending around the world (including China) – e.g. 10% of road fuels in the EU by 2020 • National Development and Reform Commission in
Slide 7: Secondary Market Drivers and Opportunities
Secondary Market Drivers and Opportunities Drivers Opportunities • Growth in alcoholic beverages industry and chemical industry in China leading China GDP Growth to greater demand for bio-ethanol and bio butanol. • Focus on improving efficiency and profitability of many domestic producers Efficiency
Slide 8: Technology and Engineering
Technology and Engineering • Technology and engineering solution provider to bio-ethanol and bio-butanol production facilities • Business offerings meet customers needs across the full life cycle of production – from feedstock technology to waste recovery • Market dominance in China – – 60% share of
Slide 9: Business Model – Design and Build
Business Model – Design and Build 1. Broad design and engineering, operational and project management skills in the design and construction of biofuel and bio chemical production facilities 2. Business offerings: • Technical design and engineering. • Procurement and construction. • Installation and
Slide 10: Business Model – EMC and Yeast Management
Business Model – EMC and Yeast Management 1. Deployment of capabilities to help customers create more value by reducing the energy consumption (“Energy Management Conservation” or “EMC”) and Yeast Management Services, 2. EMC • Modifying the customer’s existing equipment and/or installing ancillary e
Slide 11: Business Model – Waste Management
Business Model – Waste Management 1. The Group helps customers to recover and treat waste water into biogas. 2. Biogas refers to either a methane, hydrogen or carbon dioxide rich gas that is produced as organic matter breaks down. 3. Plants can supply and sell clean biogas as fuel for civilian use t
Slide 12: Business Model – Investments
Business Model – Investments 1. Continue enhancement of production yields and reduction of energy consumption; 2. Developing and commercializing new sources of biofuel and biochemicals through internal research efforts and via joint collaborations with third parties 1. The Company has developed prop
Slide 13: Growth Strategy
Growth Strategy 1. Expand customer base and enlarge geographical market. – Leverage its leading market position to expand its capability to capture and maintain its market share in the China bio- ethanol and bio-butanol market. – Broaden its international presence by marketing its services globally,
Slide 14: Group Financial Snapshot
Group Financial Snapshot Year ended Year ended Year ended Year ended 31 December 2007 31 December 2008 31 December 2009 31 December 2010 RMB’000 RMB’000 RMB’000 RMB’000 Audited Audited Audited Unaudited Revenue 205,749 224,208 125,301 138,359 Revenue Growth (%) N/A 9% -44% 10% Gross profit 41,802 42
Slide 15: ZKTY - trading updates
ZKTY - trading updates 9 months ended 9 months ended (RMB) % change 30 Sept 2010 30 Sept 2011 New contracts secured 90 million 180 million 100% Revenue 84,947,825 101,713,422 20% Cost of sales 60,862,019 80,200,964 32% Gross profit 24,085,806 21,512,458 -11% Gross margins 28.4% 21.2% Other operating
Slide 16: Outlook and prospects
Outlook and prospects • Technology and engineering solutions provider to Jilin Alcohol Industrial Co. Ltd (“JAIC”) – A group with annual corn processing capacity of 2 million tons, annual ethanol production capacity of 600,000 tons, and management control over annual production capacity of 500,000 t
Slide 17: Outlook and prospects – Major projects in negotiation
Outlook and prospects Major projects in negotiation Customers Projects Contract Value (RMB) Domestic J ilin alcohol industrial group Corn based 30,000 Tons per year Neutral Ethanol 15,000,000 Qinhuangdao Tianma Alcohol Ltd. Corn based 60,000 Tons per year Super grade Ethanol 60,000,000 Anhui Ante Bi
Slide 18: Business and Corporate Development Goals
Business and Corporate Development Goals Business • CAGR of no less than 30% annually in 2011 to 2013 • Continue focus on cash flow – Cost control – Sustainable and recurring income • Continue focus on R&D • Mergers and Acquisitions Corporate • Raise Company profile and presence internationally • Im
Slide 19: Summary
Summary Excellent industry growth prospects Market leader in China with growing presence internationally Unique and proven business model driven by a strong management and experience Board Research and development capabilities Profitable and growing 19
Slide 20: Use of proceeds
development activities (c. 30% of the net Use of proceeds proceeds) (* In the event we raise more than ￡ 5 million at the Placing, CNE will retire the entire outstanding amount due to Citadel immediately. ) 20
Slide 21: Thank You
Thank You inaNewEnergy
Slide 22: Group Structure and Background
Group Structure and Background CNE AIMcompany quoted, Jersey incorporated, (Jersey incorporated and Group holding company admitted to AIM) Overseas Guangdong Zhongke 100% Tianyuan New Energy China Science & Technology Co. Wholly foreign owned enterprise and trading Ltd. entity (“ZKTY”) Guangdong Bol
Slide 23: Contact Information
Contact Information China New Energy Limited Queensway House Mr Weijun YU (Chairman) Hilgrove Street yuwj@zkty.com.cn St Helier +86 139 0306 6479 Jersey JE1 1ES Channel Islands Mr Zhaoxing TANG (CEO) tangzx@zkty.com.cn Web www.ChinaNewEnergy.co.uk +86 186 2000 6622 EPICCNEL ISIN JE00B3RWLF12
Slide 24: Important Notice
Important Notice •The information contained in this Presentation has been prepared by China New Energy Limited (the “Company”). This Presentation and its contents are for distribution in the United Kingdom only to persons of the kinds described in Articles 19(5) (investment professionals), 48 (certi
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