China New Energy Ltd. · HKEX:1156
China New Energy — IPO Roadshow (April 2011)
25 slides from China New Energy's IPO roadshow presentation, April 2011
Slide 1: China New Energy Limited
China New Energy Limited Placing and Admission to Trading on AIM March/April 2011 Financial Adviser and Broker: SVS Securities plc 1
Slide 2: 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
Slide 3: Overview
Overview • CNE is a technology, process and engineering solutions provider, whose operations are based in China, for bioethanol and biobutanol projects focusing on the bioenergy sector. • CNE: – Has an established track record in China, as well as overseas customers in countries including Romania, T
Slide 4: Board of Directors
Board of Directors Yu Weijun MBA Tang Zhaoxing MBA Chen Yong Ph.D. Foo Shiang Peow MBA Richard Bennett Executive Chairman Chief Executive Non-Executive Director Non-Executive Director Non-Executive Director Officer • Chairman of CNE and ZKTY • A director of CNE since 2006. • President of Guangzhou •
Slide 5: Senior Management
Senior Management Ding Liren (“Adam”) – Chief Administrative Officer • Mr Ding has been the Chief Administrative Officer of ZKTY since 2008. He is responsible for procurement, administration and human resources in ZKTY. • Prior to joining ZKTY, he worked in Ningxia Xiacheng Import/Export Corporation
Slide 6: Group Structure & Background
Group Structure & Background Group Structure Chart (following Admission) AIM quoted, Jersey incorporated, Group holding company Overseas 100% China Wholly foreign owned enterprise and trading entity 100% Technology engineering Group Background: The origins of ZKTY’s activities date back to 2002, wit
Slide 7: Background & Milestones
Background & Milestones • The Group operates through its wholly owned subsidiary, Guangdong Zhongke Tianyuan New Energy Science and Technology Co. Ltd (“ZKTY”). • The Group has extensive experience in designing and constructing ethanol and ethanol downstream production plants. • Since ZKTY’s establi
Slide 8: Revenue Model
Revenue Model 1 The Group intends to organise its business into two segments: • Technology and Engineering Solutions. • Investments. In Operation Proposed 8
Slide 9: Revenue Model
Revenue Model 2 • The Group, through ZKTY, is an integrated service provider which principally provides technology and engineering services mainly to: – Ethanol producers. – Ethanol downstream product producers. – Biobutanol producers. • The Group’s “Technology and Engineering Solutions” business se
Slide 10: Solutions
Solutions Technology & Engineering Solutions - Bioethanol and Biobutanol • Ethanol (alcohol) is commonly used in the manufacture of chemicals, cosmetics, and beverages. • Butanol is commonly used in the manufacture of chemicals and solvents. • Both ethanol and butanol may also be used as fuels. G E
Slide 11: Solutions II
Solutions II Technology & Engineering Solutions - Biogas • Biogas refers to either a methane, hydrogen or carbon dioxide rich gas that is produced as organic matter breaks down. • Plants can supply and sell clean biogas as fuel for civilian use to the local utility gas companies. • The Group special
Slide 12: Solutions III & Investments
Solutions III & Investments Technology & Engineering Solutions - Energy Management Conservation (‘EMC’) • Under its EMC model, the Group offers customers with existing production facilities the ability to reduce energy consumption by modifying the customer’s existing equipment and/or installing anci
Slide 13: Financial Snapshot
Financial Snapshot CNE’s financial performance: 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 205,749 224,208 125,301 138,477 Revenue Growth (%) N/A 9% -44% 11%
Slide 14: Market Drivers
Market Drivers • Bioenergy is widely considered to be one of the key alternatives to fossil fuel use because of its easy acquisition and clean emissions. • The National Development and Reform Commission in China forecasts that the production of ethanol will increase from 1.7m tons in 2008 to 10m ton
Slide 15: Market Opportunity
Market Opportunity • The Directors believe that the development of the Chinese ethanol industry and its expanding production capacity will open up opportunities for the Group. • The Directors believe that China will demonstrate increasing demand for alcoholic beverages in the future. • The Directors
Slide 16: Growth Strategy
Growth Strategy The Group intends to focus its strategy towards the future growth and expansion of its business as follows: •Expand customer base and enlarge geographical market. – Expand its capability to capture and maintain its market share in the China ethanol fuel market. – Broaden its internat
Slide 17: Current Trading and Prospects
Current Trading and Prospects The Directors envisage the operating environment for FY2011 to be encouraging, as the Directors believe that the recent increase in oil prices will result in increasing demand for bioenergy, which will in turn lead to growth in the ethanol markets in the PRC and around
Slide 18: Use of Proceeds & AIM
Use of Proceeds & AIM • CNE is seeking admission to AIM and looking to raise up to US$2.0m gross pursuant to a placing of new shares at Admission (the “Placing”). • It is the intention of the Company to use the proceeds from the Placing to provide the business with additional working capital. • Reas
Slide 19: Why Invest?
Why Invest? CNE: • The global bioenergy industry is developing and expanding: – The Directors believe that the increase in oil prices is likely to lead to growth in ethanol markets in PRC and around the world. – Cellulosic ethanol (bioethanol produced from wood, grasses etc) could be substituted for
Slide 20: Placing Statistics & Timetable
Placing Statistics & Timetable Placing Statistics Placing Price: p Anticipated market capitalisation on Admission £ million to £ million Gross proceeds to be raised by the Company pursuant to the Placing £ million Percentage of the Enlarged Share Capital represented by the Placing Shares Approxi
Slide 21: Appendix
China New Energy Limited APPENDIX 21
Slide 22: Financial Information
Financial Information Abbreviated Consolidated Statements of Abbreviated Consolidated Statements of Financial Comprehensive Income Position Year ended Year ended Year ended Year ended As at 31 As at 31 As at 31 As at 31 31 December 31 December 31 December 31 December December December 2009 December
Slide 23: Current Capital Structure
Current Capital Structure Immediately prior to Admission, the Company will have 69,351,002 Ordinary Shares in issue. Significant Shareholdings Director Shareholdings As at the date immediately prior to Admission As at the date immediately prior to Admission Name Number of Ordinary Percentage of tota
Slide 24: Summarised Risk Factors
Summarised Risk Factors Before deciding whether to invest in the Ordinary shares, prospective investors should carefully consider the risks described below which will apply to the Company together with all other information contained in this presentation. If any of the following risks actually occur
Slide 25: Company & Advisory Team
Company & Advisory Team China New Energy Limited Stephenson Harwood, Solicitors to the Company as Queensway House to English Law Hilgrove Street One Raffles Place #12-00 St Helier Singapore 048616 Jersey JE1 1ES Channel Islands Bird & Bird LLP, Solicitors to the Nominated Adviser Contact: Foo Shiang