China Clean Energy Inc · OTC:CCGY
China Clean Energy — Investor Presentation (February 2007)
26 slides from China Clean Energy's investor presentation, Feb 9, 2007
Slide 1: China Clean Energy Inc.
- ergy Inc. China Clean En FP BA REA PRS
Slide 2: Safe Harbor Statement
Safe Harbor Statement inc This presentation contains forward-looking statements. These statements relate to future events or to our future financial performance, and involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance, o
Slide 3: Equity Snapshot
Equity Snapshot inc = OTC BB Quoted: CCGY = Price (02/7/2007) $2.50 = Market Cap $53.3 mil = Shares Outstanding: 21.3 mil = Freely Tradable Shares: 2.4 mil = Revenues (9-months to 09/30/2006): $9.78 mil = Net Profits (9-months to 09/30/2006): $1.28 mil Source: Standard & Poor's, Company SEC Filings
Slide 4: Company Overview
Company Overview inc = Headquartered in Longtian, Fuqing City, Fujian Province, PRC = 311,000 square feet ISO-certified production facilities = 4,800 tons (1.44 mill gallons) per year of biodiesel capacity expected to grow to 10,000 tons (3 mill gallons) in 2007 = 18,000 tons per year of specialty c
Slide 5: Key Accomplishments
Key Accomplishments inc Nov 2006: Started being quoted on OTC BB under ticker symbol: CCGY. Oct 2006: Consummated a reverse takeover of OTC BB-quoted Hurley Exploration, Inc. Feb 2006: Became a wholly-owned foreign enterprise (“WOFE”). Dec 2005: Commenced production of biodiesel fuel from cottonseed
Slide 6: Public Recognition
Public Recognition inc China Clean Energy’s operating subsidiary has been honored with over 30 achievement awards, including: Company Honors = High-Tech Corporation Award, Technology Office of Fujian Province = Advanced Technology Innovation Honor, CCP Committee of Fuzhou City = Measure Up Corporati
Slide 7: Investment Highlights
Investment Highlights inc = Emerging Producer of Biodiesel in China = Low-Cost Manufacture = Proprietary Technology and Commitment to R&D = Experienced Management = Profitable and Rapidly Growing Business = Enormous demand for renewable energy in China
Slide 8: Biodiesel: alternative fuel made from renewable resources
« Alternative fuel made from renewable resources such as vegetable oil or its waste = Can be used on any diesel engine with no modification to the engine = Produces lower carbon monoxide and sulfur emissions " Safer handling due to higher flashpoint = Biodegradable = Strong PRC government i support
Slide 9: Biodiesel Opportunity in China
Biodiesel Opportunity in China inc Strong economic growth has fueled demand for energy in general, and fossil diesel in particular, on the back of strong growth in the fleet of motor vehicles. China nominal GDP (RMB Trillion) Motor Vehicles in China (Million) 25 CAGR: 12.9% CAGR: 14.5% 2000 2001 200
Slide 10: Government renewable energy goal and biodiesel demand forecast
To support robust growth, reduce reliance on imported oil and protect the environment, the Chinese government established a goal for renewable energy to represent 20% of total energy consumption in China by 2020. iesel Demand Forecast (Million Tons) 2005 2010 2020 2030 Renewable HE Diesel Forecast (
Slide 11: Biodiesel Opportunity in China: feedstock cost
Biodiesel Opportunity in China inc Feedstock accounts for 80% of cost of producing biodiesel. Cost of Biodiesel US$/Barrel = Chinese biodiesel producers $150 have an inherent cost $131 advantage due to their coment Diesel rien China reliance on waste vegetable »~_.[S2_2227 —- oil as feedstock $67 ‘$
Slide 12: Key competitive advantages
Early CE ire = China Clean Energy is one of only two publicly-traded or publicly-quoted biodiesel producers from China = Developed a proprietary technology for producing biodiesel fuel from vegetable oil waste that gives it a cost advantage = Key competitive advantages Vertically-integrated manufact
Slide 13: Diversified Revenue Base
Diversified Revenue Base inc = Biodiesel Fuel Revenue Breakdown First three quarters 2006 = Specialty Chemicals * Monomer Acid Gost * Stearic Acid Biodiesel 74% * Dimer Acid « Printing Inks « Dimer Acid-Based Polyamide Hot Melt Adhesives 26% « Low Molecular Weight Liquid Polyamide Resin « High Perfo
Slide 14: Attractive Specialty Chemicals Niche
Attractive Specialty Chemicals Niche «China presents a large and market for specialty chemicals with underlying growth of 6 to 8 percent a year. =China Clean Energy’s intermediary chemical products have a wide array of applications across several industries. =Premium quality and low costs have allow
Slide 15: Strong Customer Relationships
Strong Customer Relationships Inc Top Customers Revenue Contribution rst 9 months, 2006 Top 10 International Customers: 1 Hong Kong Advanced Chemical Co. Lid 2 Singapore Air Products Chemical Pte, Ltd. 3 India Asihant Chemical & Resin Pvt. Ltd. 4 India Amizara Agencies Fe tern eatc 5 India Cray Vall
Slide 16: Low Cost Structure
Low Cost Structure inc = Near 100% utilization of cottonseed eoox waste, leveraging specialty chemical by- 27% = 78% 7.7% products = Proprietary technology for producing 0042005 Fst biodiesel utilizing monomer acid 2006 = Low labor costs YD — i . te, iodies ink: Asphalt, | |) Other nid Burning ju oi
Slide 17: Proprietary Technology
Proprietary Technology inc =Proprietary method of manufacturing biodiesel from monomer acid (patent pending) yuu | = ii «Proprietary and patented multi- — 600 ft 0 purpose polyamide hot-melt adhesive = — 500 ¢ for use in: — 400 4-300 + Inks ae =4 Adhering Polyolefin Engineering Plastics Films Pyroco
Slide 18: Distinguished R&D Advisors
Distinguished R&D Advisors inc Zicai Liang, Professor and R&D Advisor = Professor, Doctor / Mentor and Master Instructor at Sichuan University Macromolecule Institute and formerly a researcher at Chengdu Technology University. Published over 60 industry papers and 4 patents and has 4 years of resear
Slide 19: Growth Strategy
Growth Strategy inc = Focus on rapidly-expanding biodiesel capacity = Build on current technology and manufacturing processes expertise = Continue to improve operational efficiencies = Leverage the use of chemical by-products = Build strong brand to capture market share
Slide 20: Biodiesel Focused Expansion Plan
Biodiesel Focused Expansion Plan inc * Existing plant | «Jiangyin, Fuging —_| * Hebei, close to * Xinjiang expansion | = 20 miles from cotton oil Location existing plant production plants * Access to deep sea port and railway FRCL * 5:200tonsiyear of | + 100,000 tons/year '4 32.000 tons/year * _ | *
Slide 21: Experienced Management Team
Experienced Management Team ( ( (S inc Tai-ming Ou, Chairman and CEO * Co-founded_the Company in 1995. Prior to forming China Clean Energy, Mr. Ou was the Director of General & Administrative Office of Fuging First Secondary School. Mr. Ou was also in charge of a factory operated by the school. He i
Slide 22: Financials Overview
Financials Overview inc = $10 million sales in 2005, $9.8 Revenues (Suition million from Jan. ’06 to Sept. ‘06 $10.0 os $6.6 = Over 50% sales growth in ’05 . = i — l =" Over 62% net income growth in ’05 _ 2005 4st 9 months 2006 = Net income margin of 13% in ’05, Net Income ($Million) and 12.9% in th
Slide 23: Summary Financial Data
Summary Financial Data inc Pro forma Summary Income Statement Years Ended 9 Months Ended December 31 ($ in thousands) Sept. 30, 06 2005 2004 Revenues $9,779 $10,040 $6,590 Operating income 2,012 2,059 1,228 Net income 1,263 1,310 774 Source: Company’s SEC filings
Slide 24: Summary Financial Data
Summary Financial Data inc ($ in thousands) Balance Sheet 09/30/06 12/31/05 (Pro forma) Cash and Cash Equivalents $2,608 $3,175 Total Current Assets 4,973 6,028 Total Assets 11,649 10,833 Total Current Liabilities 1,863 2,582 Total Stockholders’ Equity 9,786 8,251
Slide 25: Investment Highlights
Investment Highlights inc = Emerging producer in China’s biodiesel market = Low-Cost Manufacturer = Proprietary Technology and Commitment to R&D = Experienced Management = Profitable and Rapidly-Growing Business = Enormous demand for renewable energy in China
Slide 26: China Clean Energy Inc.
China Clean Energy Inc. c/o Fujian Zhongde Technology Co., Ltd Fulong Industry Zone Longtian Town Fuqing City Fujian, China 35013 Phone: +86-591-85773387
China Clean Energy — Investor Presentation (February 2007) on 6ix