China New Energy Ltd. · HKEX:1156
China New Energy — H1 2011 Earnings Presentation
19 slides from China New Energy's earnings presentation, August 2011
Slide 1: Investor Presentation: Interim Results for Period H1 2011
Investor Presentation Interim Results for Period H1 2011 Presentation August 2011 Mr Weijun Yu Mr Shiang-Peow Foo Mr Richard Bennett
Slide 2: China New Energy Limited (AIM:CNEL)
China New Energy Limited (AIM:CNEL) China New Energy Limited is a Results Summary technology, process and engineering • Revenue up 54.7% to RMB 49.2m solutions provider, whose operations (H1 2010: RMB 31.8m) are based in China, for bioethanol • Gross Profit up 60.9% to RMB 6.97m and biobutanol proje
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: Climate Change Goals & Energy Security Drive the Bioenergy Market
Climate Change Goals & Energy Security Drive the Bioenergy Market • Climate Change Targets – Both Bioethanol and Biobutanol are carbon neutral fuels that reduce emissions of carbon dioxide (CO2) – Contributes to national sustainability goals • Energy Security – Growing domestic fuel crops for transp
Slide 5: Global Growth Forecast for Bioenergy Projects
Global Growth Forecast for Bioenergy Projects Chinese Domestic Market Demand Global Market Demand • China is a net importer of oil, and the • Biofuel blending targets being second largest consumer of oil after implemented globally (10% of road fuels the US: in the EU by 2020) – Domestic power consum
Slide 6: Bioenergy Technology Provider
Bioenergy Technology Provider • Commercialising Patented Technology – In collaborations with China Academy of Sciences (“CAS”) / Guangdong Institute of Energy Conversion (“GIEC”) – 12 patents owned and being commercialised by CNE • Key Processes – Fermentation of feedstock into alcohol – Distillatio
Slide 7: Biorefinery Process
Biorefinery Process Feedstock maaan ay Solid Waste Waste Water 8100 Solid Waste Waste Water ‘A600 Excess Condition Waste Water A500 Ethanol Product y Centrifuge Liquid Treatment Ethanol done — ‘Still Solids on Evaporated Syrup A700 > j . Electricity O/thzx ChinaNewEnergy 7
Slide 8: Construction, Procurement and Engineering (CPE) Solutions
Construction, Procurement and Engineering (CPE) Solutions Full Solution Provider • Head office, Guangzhou – Business development team – Plant design – Project Management • Manufacturing plant, Guangdong – Procurement – Fabrication • On site – Construction – Training – Maintenance CNE is complete bio
Slide 9: 88 Projects World Wide
88 Projects World Wide Europe and Russia China and Central Asia Projects completed and under >60% Market Share in China construction in Russia and Eastern Europe. Seekiing Bioethanol Refineries European projects and M&A Biobutanol demonstration plant opportunities- North America R&D Partnerships and
Slide 10: Example Project
Example Project Project: Songyuan Ji'an Country: China Capacity: 150,000 bio-butanol Date Built: 2007 Feed Stock: Corn 10
Slide 11: Technology Road Map
Technology Road Map Generation 1.0 Generation 1.1 Generation 2.0 Next Gen Bio - Refinary Enhanced Biobutanol Algae?? Bioethanol Refinery ? Refinery Original bioethanol Energy Management New refineries (or R&D projects refineries that and Conservation retrofitted refineries suggest future biofuels ma
Slide 12: Business Model
Business Model • Bioenergy Refineries (CPE) – Low working capital • Energy Management and Conservation (EMC) – Deploy EMC equipment and IP to improve biorefinery efficiency – Share of cost savings (~50%) – Incremental revenues for modest working capital requirement • Refinery Operations and Ownershi
Slide 13: Consolidated Statement of Financial Position
Consolidated Statement of Financial Position 13
Slide 14: Consolidated Profit and Loss Statement
Consolidated Profit and Loss Statement Unaudited Unaudited Audited Six months Six months Year to to 30 J une to 30 J une 31 December 2011 2010 2010 Note RMB’000 RMB’000 RMB’000 Revenue 49,206 31,817 138,359 Cost of sales (42,239) (27,488) (98,131) Gross profit 6,967 4,329 40,228 Other operating inco
Slide 15: Consolidated Statement of Cash Flow
Consolidated Statement of Cash Flow 15
Slide 16: Corporate Structure and Share Structure
Corporate Structure and Share Structure Company Structure Share Holdings China New Energy Jersey Limited Incorporated and (CNEL) AIM quoted holding company Overseas China 100% Guangdong Zhongke Wholly foreign Tianyuan New Energy owned enterprise Science and Technology and trading Co. Ltd (ZKTY) enti
Slide 17: Outlook
Outlook Business Goals Corporate Development Goals • Fulfil current order book • Raise IR and Business Profile • Maintain pipeline of Generation 1 • Developing institutional project opportunities shareholder base – Biorefineries • M&A activities to: – EMC opportunities – Increase skills and technolo
Slide 18: Summary
Summary Growing demand for bio-refineries – Macro trends of energy security and climate change are driving global demand – Domestic governments implementing biofuel initiatives and mandates CNE is an established and well run company – Own IP and low-cost operating and manufacturing – Profitable
Slide 19: Contact Information
Contact Information China New Energy Limited Queensway House Mr Weijun YU (Chairman) Hilgrove Street wyu@zkty.com.cn St Helier +44 (0)7966 388 374 Jersey JE1 1ES Channel Islands Mr Zhaoxing TANG (CEO) ztang@zkty.com.cn Web www.ChinaNewEnergy.co.uk +44 (0)7966 388 374 EPICCNEL ISIN JE00B3RWLF