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www.sinoenergycorporation.com
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Safe Harbor Statement
This presentation contains forward-looking statements within the meaning of the safe-
harbor provisions of the Private Securities Litigation Reform Act of 1995.
Such statements involve known and unknown risks, uncertainties and other factors that
could cause the actual results of the Company to differ materially from the results
expressed or implied by such statements, including changes from anticipated levels of
sales, future national or regional economic and competitive conditions, changes in
relationships with customers, access to capital, difficulties in developing and marketing
new products, marketing existing products, customer acceptance of existing and new
products, and other factors.
Accordingly, although the Company believes that the expectations reflected in suchforward-looking statements are reasonable, there can be no assurance that such
expectations will prove to be correct. The Company has no obligation to update the
forward-looking information contained in this presentation.
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Equity Snapshot
Source: Yahoo Finance, Company SEC Filings
OTC BB Symbol: SNEN
Price (05/30/2008): $ 2.80
Shares Outstanding: 31.42 mil
Market Capitalization (05/30/2008): $87.97 mil
Average Daily Trading Volume(05/30/2008) 50.5K
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EPS-Fully Diluted Shares (ttm to 03/31/08): 25 cents
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1956: A state owned company under the name Qingdao General Machinery Factory, after our privatization in 2004, changename as Qingdao Sinogas General Machinery Co. Ltd (WOFE)
June 2006: Consummated a reverse merger in the OTC market
February 2007: Started trading in the U.S. capital market under ticker symbol: SNEN
Key Accomplishments
August 2006 to March 2007: Established three subsidiaries Wuhan Sinoenergy Gas Ltd. Pingdingshan
Sinoenergy Gas Ltd, and Hubei Gather Energy Gas Co., Ltd
March 2007: Acquired 70% of equity of Jiaxing Lixun Automotive Electronic Co., Ltd. (conversion
kits manufacturing)
July 2007: Acquired 45% equity of Anhui Gather Energy (natural gas processing plant)
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January 2008: Acquired HK Giant Power International Ltd. for its investments in gas
processing plants
December 2007: Acquired Qingdao Shan Yang Tai Chemistry Resources DevelopmentCo., Ltd for its manufacturing site
April 2008: Received a $17.87 million (RMB 124.76 million) strategicinvestment from a group of Chinese investors. the Company is reorganizing itsgroup structure to more clearly separate its business segments by function.
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Business Model
CNG Vehicle Value Chain
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Secured 450
million cubic
meters natural
gas resources
annually from
Sinopec and
Petro China
Build or
invest in
natural gas
process plants
to process
secured
natural gas
Natural Gas Processing
plant (whole sale)
Build and
operate CNG
filling stations
in Central and
East China
CNG Truck Trailer
(manufacturing)
CNG filling Station
(retail)
Vehicles
conversion kits
(manufacturing)
One of the three
companies who
held license
issued by centralgovernment to
manufacture
CNG truck
trailers
Manufacture
and sale of
alternative
fuel vehicle
conversion
kits
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Facilities and Equipment Manufacturing
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Manufacturing
CNG deposit and delivery facilities
Customized Pressure Containers
Conversion Kits for alternative fuel
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Facilities and Equipment Manufacturing
Legacy business
Customized Pressure Containers- 50 years manufacturing experience in
designing and manufacturing non-standard Pressure Containers, holding A1,A2 licenses issued by central government
CNG Deposit and Delivery Facilities - Over ten years experience in CNG
facilities and equipment manufacturing, being issued C2 and C3 licenses for
truck trailer manufacturing by central government.
New developed business
Conversion Kits - Expanded position in the CNG vehicle conversion-kit market
by acquiring 70% equity of Lixun, a leading designer and manufacturerconversion kit electronic parts
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CNG Wholesale
Plan to build 4 large CNG processing plants inAnhui Province and Hubei Province through Hubei
Gather (55% subsidiary) and Anhui Gather (45%subsidiary)
Under full capacity, the four plants can process 400
million cubic meters of natural gas per year
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Through HK Giant Power (100% subsidiary) invested in four CNG processing
and wholesaling businesses in Central and East China by directly or indirectly
owns stakes ranging from 9% to 35%.
Three of the four business has a 20-year natural gas supply and distribution
contract with PetroChina respectively. The current aggregate daily natural gas
handling capacity arrives to 300-350 thousand cubic meters.
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CNG Wholesale - Natural Gas Supply
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Qingdao
Xuancheng
Pingdingshan
Wuhan
Puguang Pipeline
West-East GasPipeline
70 million cubic
meters per year
quota was issued
to SNEN
50 million cubic
meters per year
quota was issuedto SNEN
400 million cubic
meters per yearquota was issued
to SNEN
Sino-PecPuguang Gas
Pipeline
400 million
m3/year
Petro-ChinaWest-East Gas
Pipeline
70 million
m3/year
Petro-ChinaSichuan-East
Gas Pipeline
50 million
m3/year
The Pipecontroller
ResourceTransferPipeline
NaturalGas
Quota
Natural Gas Resource owned by Sinoenery
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5 filling stations open in Wuhan City, 2 station opens inPing Ding Shan city, and 1 station opens in Xuancheng City
10 standard stations are nearly completed and waiting
for PRC government approval for opening
Another 15 standard stations are under construction inWuhan, Xuancheng and Pingdingshan
CNG Retail-CNG Filling Station
Goal to bu i ld around 100 s tandard s t a t ions in t hree to f i ve c i t ies and operat e 60
standard s ta t ions across China by end of 2009 target ing bus and tax i f leet
opera tors
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CNG Filling Station - serving taxis, buses and fleet vehicles understrong government support for CNG vehicle adoption.
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CNG Retail -Advantages
Natural gas powered vehicles emit
significantly less nitrogen oxide, carbon
monoxide and carbon dioxide than gasoline
Natural gas is significantly cheaper thangasoline
In 2007 PRC government has offered tax
preferences to overseas investors in natural
gas operating to use more of the cleanenergy source
Adoption of compressed natural gas for transportation fuel will be driven by
inherent environmental benefits, economic advantages, and strong government
support.
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Key Market - Wuhan City
Wuhan has more than 20,000 taxis and 6,292 buses including 7,000 CNG-
fueled vehicles, currently supplied by 12 CNG filling stations
Wuhan eventually plans to transform all taxis and buses into CNG-burning
vehicles (Wuhan Municipal Government)
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One CNG processing plant and 30 CNGstandard stations expected to be built in
Wuhan by the end of 2008 goal to operate 2
CNG processing plants and 50 to 60 standard
CNG filing stations by the end of 2009
Sinoenergy opened five retail CNG filling
stations in Wuhan by April 2008
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CNG Filling Station Project Analysis
Assumptions:
Under full operating capacity, average sales for one CNG substation is 10,000cubic meters per day
Approx 9 months for new stations to reach target utilization
Assumed tax rate of 15% (expect to be granted 100% tax exemptions in the
first two years)
Revenue per station under full capacity of $1.3 to $1.5 million annually withoperating income of $350K to $450K and net income of $250K to $300K
Cost for one CNG filling station is about $800,000
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Experienced Management Team
Mr. Tianzhou Deng, Chairman Mr. Deng has worked in the natural gas industry in China for almost 20 years
Chairman of Beijing Sanhuan Technology Development Co., Ltd. from 1999 to 2005
President and Director of Natural Gas Vehicle Development Center, CNPC from 1997 to 1999
President and Chief Engineer of Jianghan Chemical Co., Ltd., CNPC from 1992 to 1997
Engineer and project manager of Jianghan Petroleum Designing Academy from 1982 to 1992 Master of Management, China Science & Technology University; Bachelor of Science in Chemistry, University of Petroleum, China
Mr. Deng has worked as a scientist on clean energy research for his entire career
Mr. Bo Huang, CEO and President Chairman and General Manager of Qingdao Sinogas from 2005 to present
President of Beijing Sanhuan Technology Development Company Ltd. from 2001 to 2005
Investment Consulting Manager and Vice President of Chencheng Group Company from 1997 to 2001
Manager of China Huaneng Group from 1993 to 1996 Bachelor Degree in Economics from the Peoples University of China
Ms. Lan Gu, CFO Senior auditor at Canada based Lanno Torollenie LLP, responsible for planning and managing client engagements
Audit leader at Deloitte Touche Tohmatsu CPA Ltd. in Shanghai
Auditor at PricewaterhouseCoopers in Canada
Hounrs Degree of B.A. in business with a concentration in financial analysis from York University in Canada
U.S. Certified Public Accountant and Canadian Chartered Accountant
Mr. Anlin Xiong, Secretary of the Company Senior Manager, Vice department director at BOE Technology Group Co. Ltd, responsible for strategy & technolgy planning and
management, Intellectual Propperty management and operation
MS in EE from University of Illinois at Urbana Champaign in the U.S., BS in EE from Tsinghua University in China
Certificate of China Legal Professional, which is the lawyer qualification certificate in China
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Summary Income Statement
Quarter Ended Quarter Ended Six Months Ended
March 31, March 31 March 31
($ in thousands) 2008 2007 2008 2007
Revenues $7,734 +195% $2,626 $16,541 +215% $5,255
Gross Profit 3,723 +260% 1,035 7,634 +179% 2,733
Operating Income 2,618 + 534% 413 5,365 +281% 1,408
Net income 2,843 + 108% 350 5,162 +252% 1,466
Earnings Per Share-diluted $0.07 $0.02 $0.14 $0.06
Weighted average diluted shares 37.65Mil 23.16Mil 37.75Mil 23.92Mil
Source: Companys SEC filings
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OperatingIncome($inmillions)
Growing Revenues and Profits
CAGR = 79%
Revenues
($inmillions)CAGR = 61%
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8.212.4
24.7
83-85
53-56
0
10
20
30
40
50
60
70
80
90
2005 2006 latest 12
months
ending Dec
31, 2007
Fiscal 2008E Fiscal 2009E
3.7 4.2
7.0
24-26
14-15
0.0
5.0
10.0
15.0
20.0
25.0
30.0
2005 2006 latest 12
months
ending Dec
31, 2007
Fiscal 2008E Fiscal 2009E
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Investment Highlights
Government supporting to promote clean energy
Two years income tax 100% exemption, three years 50% exemption, after preferenceends income tax rate will be 15%
NDRC notice requests CNG whole sale price for vehicle using keep stable whileprovincial municipalities should increase local CNG retail prices so that they fallbetween 60% and 75% of the local price for 90 octane gasoline.
Secure Natural Gas Resources
Sinoenergy has secured 500 million cubic meters CNG deposit with Sinopec, and Petro-China to support our future 120 CNG stations
Valuable Company Owned Real Estate
A CNG down-stream industrial chain integration
Integrate matured CNG facilities manufacturing business with new emerged CNGvehicle retail business as well as CNG vehicle fuel conversion kit manufacturing andselling business, which builds up a platform of diversified revenue
Experienced management team with significant industry expertise andinternational experience
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Contact Information:
Anlin Xiong
Secretary & Vice President
Sinoenergy Corporation
Tel : +86-10-84932965 ext 860
Email: [email protected]
Crocker CoulsonPresidentCCG Elite Investor RelationsTel: +1-646-213-1915
Email: [email protected]
Thank You
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