Sancon Resources Recovery Inc.
Sancon Resources Recovery — Investor Presentation (November 2008)
23 slides from Sancon Resources Recovery's investor presentation, Nov 7, 2008
Slide 1: Sancon Resources Recovery, Inc
Exhibit 99.1 Sancon Resources Recovery, Inc (OTCBB: SRRY) The emerging leading recycling network in china
Slide 2: Safe Harbor Statement
Safe Harbor Statement The statements contained in this communication about Sancon and our subsidiaries’ future performance, including, without limitation, future revenues, earnings, strategies, prospects and all other statements that are not purely historical, are forward-looking statements for purp
Slide 3: Who We Are
Who We Are • Established in 2002, Sancon is an environmental services and waste management recycling company that is building the largest recycling network in China are based in China and Australia. 300 employees, 40 trucks and • Operations vans, multiple recycling locations China • Sancon processes
Slide 4: Corporate Structure
Corporate Structure Sancon Resources Recovery, Inc (United States) OTCBB: SRRY 100% 70% 100% Sancon Sancon Sancon (Australia) (China) (Hong Kong) Sancon resources recovery
Slide 5: Sustainable Economy: Sancon's 3R Model
Sustainable Economy Sancon’s 3R Model Sancon resources recovery
Slide 6: Cyclic Economy
Cyclic Economy Empty Glass Bottle Crushed Glass Replace calcium carbonate for carpet Glass Powder making Sancon resources recovery
Slide 7: Sancon's Business Model
Sancon’s Business Model Sancon resources recovery
Slide 8: Business Operations & Services
Business Operations & Services • Waste Management Services – Full waste management solutions for manufacturing companies, aim to recover recyclable materials instead of dumping into land-fills. – Procurement of recyclable waste materials from clients’ designated sites and manages – the entireProduct
Slide 9: Flow of Operations
Flow of Operations 1. Sancon’s facilities collect and process industrial waste materials (mainly plastics) from large well known companies (i.e. Toyota, Masterfood, and P&G). 2. Sancon turns wastes into reusable raw materials that can be used for making new products. 3. The materials are then sold &
Slide 10: Australia Operations
Australia Operations • Waste Management Services – Full waste management solutions for manufacturing companies, aim to recover recyclable materials instead of dumping into land-fills. • Reprocessing of Wastes – Convert wastes into recycled raw materials through mainly Melting, Granulating, Baling, a
Slide 11: China Operations
China Operations • Range of services include: – Waste Collection (Procurement) – Security Product Destruction (Sensitive Waste) – Recycling (Waste Processing) • Sancon currently staffs over 300 people in 6 recycling sites with over 40 trucks and Vans (both owned and rented) to provide waste manageme
Slide 12: Expanding business in China
Expanding business in China • China Association of Resources Recovery and Recycling estimated there are currently between $35-40 billion recyclable waste materials not recovered, presenting a large market for Sancon Sancon resources recovery
Slide 13: Electronic Waste Operations
Electronic Waste Operations • Collection and Processing of Electronic Wastes (soon to be launched) – Convert electronic wastes into valuable recycled raw materials such as gold, platium, metal and plastics to be used in making of new products Sancon resources recovery
Slide 14: Waste Paper Collection Service
Waste Paper Collection Service • Collection and Processing of Wastes Paper (just launched) – Place special collection bins in offices and copy rooms to encourage waste paper collection, reward participating companies with new copy paper. Sancon resources recovery
Slide 15: Market Drivers In China
Market Drivers In China • Lowering Production Cost for Manufacturers – Recycled materials considerably reduce the production costs for manufacturers to avoid expensive new raw materials • Lowering Land-filling Cost for Businesses – “Close The Loop” solutions for industrial wastes will also reduce th
Slide 16: Growth Opportunities
Growth Opportunities • National Presence − 6 strategically positioned recycling plants and 30 depots in China enable Sancon International • Aggressive to meet the demand for nationTeam Management wide environmental services − Management team experienced in logistical management and waste management
Slide 17: Growth Opportunities
Growth Opportunities • Demand from Large Enterprises − Most of the world’s fortune 1000 companies are investing heavily in China providing • Sancona pool of potential Occupies customers a Niche that desire In a Large, to beMarket Growing environmentally responsible − Chinese waste management market
Slide 18: Recent Developments
Recent Developments • Sancon Reports Record Third Quarter Revenue Growth of 204% – Sancon has recently announced that they have generated $3.86M in revenue for Q3 2008, compared – Posted withof$1.27M Gross Profit $1.83Mfor forthe Q3same 2008period last year – Revenue for the first three quarters of
Slide 19: Financial Overview
Financial Overview (In USD millions) 2005 2006 2007 2008H1 2008Q3(Prelim) 2008(Est) Revenue 0.88 3.45 6.07 5.89 3.86 12 Revenue Growth YoY - 292% 75.9% - - 97.7% Gross Margin 27.3% 15% 23.9% 48.8% 47.41% - Net Income/（Loss） (0.04) 0.02 (0.17) 0.99 0.46 2.1 Net Margin - 0.6% - 16.8% 11.94% 17.5% As o
Slide 20: Investment Highlights
Investment Highlights • Proven Revenue Growth – Since inception in 2002, revenue has almost doubled each year and is on pace to continue the trend, approx 139% annual compounded sales growth from 2005 to 2008 • Rapid Market Growth and Demand – Recycled raw materials imported to China grew from 1-2 m
Slide 21: Management Team
Management Team • Jack Chen, CEO & Director – Founder of the company since 2002, Mr. Jack Chen has eight years of operating experiences in the waste management and resources recovery sector in Australia and Asia. Previously, Jack worked in a management position for a multinational German plastics an
Slide 22: Vital Statistics
Vital Statistics Stock Ticker: OTCBB: SRRY Price as of Nov. 04th 2008: $0.35 Market Cap: $7.91mil Shares Outstanding: 22.6mil Float Public: 6 mil Insider Holding: 60% 52wk Range: $0.11-$0.70 2008 PE based on 2.1mil PAT: 3.7x Fiscal Yr. Ends: December. 31st Sancon resources recovery
Slide 23: Slide 23
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