SINOENERGYHOLDINGLIMITED

1、2safe harbor statementthis 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

2、 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

3、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 such forward-looking statements are reasonable, there can be no assurance that such expectations will

4、 prove to be correct. the company has no obligation to update the forward-looking information contained in this presentation.equity snapshotsource: yahoo finance, company sec filingsotc bb symbol: snenprice (11/23/2007): $ 3.45shares outstanding: 31.41 mil market capitalization(11/23/2007): $108 mil

5、eps-fully diluted shares (ttm to 06/30/07): 25 centsaverage daily trading volume(11/23/2007) 188k shares31956: founded in 1956 under the name qingdao general machinery factory.2004: qingdao general machinery privatized and registered as sinogas general machinery limited corporation (sinogas), which

6、owns property of 659,000 sq ft land and 300,000 sq ft office & plant in central of qingdao cityjune 2006: consummated a reverse merger in the otc marketfeb. 2007: started trading in the u.s. capital market under ticker symbol: snenkey accomplishmentsaugust 2006 to march 2007: established three s

7、ubsidiaries - wuhan sinoenergy gas ltd. pingdingshan sinoenergy gas ltd, and hubei gather energy gas co., ltd. - licensed to operate cng stations, with sinoenergy as 90%, 90% and 55% equity owner respectivelymarch 2007: acquired 70% of equity of jiaxing lixun automotive electronic co., ltd. july 200

8、7: acquired 45% equity of anhui gather energynov. 2007: complete 70% equity acquisition, in turn own 100% xuancheng sinoenergy vehicle gas co. ltd45investment highlightsgovernment supporting to promote clean energy two years income tax 100% exemption, three years 50% exemption, after preference ends

9、 income tax rate will be just 15% ndrc notice requests cng whole sale price for vehicle using keep stable while provincial municipalities should increase local cng retail prices so that they fall between 60% and 75% of the local price for 90 octane gasoline. secure natural gas resources sinoenergy h

10、as secured 500 million cubic meters cng deposit with sinopec, and petro-china to support our future 120 cng stationsvaluable company owned real estatea cng down-stream industrial chain integrate matured cng facilities manufacturing business with new emerged cng vehicle retail business as well as cng

11、 vehicle conversion kit manufacturing and selling business, which builds up a platform of diversified revenueexperienced management team with significant industry expertisemajor business lineslegacy business 50 years manufacturing experience in designing and manufacturing non-standard pressure conta

12、iners, holding a1, a1 licenses issued by central government over ten years experience in cng facilities and equipment manufacturing, being issued c2 and c3 licenses for truck trailer manufacturing by central government. newly developed business expanded position in the cng vehicle conversion-kit mar

13、ket by acquiring 70% equity of lixun, a leading designer and manufacturer conversion kit electronic parts leveraging experience in cng facility manufacturing and building cng stations, entered into cng wholesale and vehicle retail business6serving taxis, buses and fleet vehicles under strong governm

14、ent support for cng vehicle adoption 2 filling stations open in in wuhan city and 1 station opens in xuancheng city 22 cng filling stations are under construction in wuhan, xuancheng and pingdingshan new business-cng retailgoal to build around 100 and operate around 60 cng retail substations in five

15、 cities across china by end of 2009 targeting bus and taxi fleet operators7public bus fuel costaverage 200 kilometers per day (usd) taxi fuel costaverage 400 kilometers per day (usd)$0.45 / m3natural gas $18.9fuel typeunit pricefuel consumption per 100 kmdaily fuel consumption per vehiclesavings per

16、 vehicle per daygasoline $0.71 / l31.5 l$44.7328.7 nm3$25.83economic advantages fuel typeunit pricefuel consumption per 100 kmdaily fuel consumption per vehiclesavings per vehicle per daygasoline $0.71 / l8 l$22.72natural gas $0.45 / m37.3 nm3$13.14$9.588key market statistics for wuhan citywuhan has

17、 more than 20,000 taxis and 6,292 buses including 667 cng-burned buses and 1,321 dual-fuel (cng/lpg and gasoline) taxis supplied by 9 cng filing stations. according to wuhan municipals government planning, 2007 and 2008 will be the startup phase of wuhans cng vehicle development. one cng processing

18、plant, one mother station and 30 cng stations expected to be built in wuhan by the end of 2008 - goal to operate 50 to 60 cng filing stations in the three years to 2009. wuhan also plans to transform all taxis and buses into cng-burning vehicles by end of 2008. first two cng filling stations in wuha

19、n built by sinoenergy opened in september. 9secure natural gas supplysecured 400 million cubic meters natural gas quota from sinopecs under-construction puguang main pipeline secured 100 million cubic meters natural gas quota from petro chinas main pipe line and mother station10qingdaoxuanchengpingd

20、ingshanwuhanpuguang pipelinewest-east gaspipelinecng filling station project analysisassumptions:under full operating capacity, average sales for one cng substation is 10,000 cubic meters per dayapprox 9 months for new stations to reach target utilizationassumed tax rate of 15% (expect to be granted

21、 100% tax exemptions in the first two years) revenue per station under full capacity of $1.3 to $1.5 million annually with operating income of $350k to $450k and net income of $250k to $300k cost for one cng filling station is about $800,000roi is about 3.5 years11cng filling station contribution200

22、7200820092010scheduled station construction303040-stations operate 70%10303040stations operate 100%-3060total stations under construction or operate3060100100contributed revenue $0.2 mil$27 mil$66 mil$114.4contributed net income -$6.3 mil$15.3 mil$26.412new business-cng wholesaleplan to build 4 larg

23、e cng processing plants in anhui province and hubei province through hubei gather (55% subsidiary) and anhui gather (45% subsidiary)expected to begin operation in late 2008 or early 2009under full capacity, four plants can process 400 million cubic meters of natural gas per yearthese plants are expe

24、cted to generate revenues of approximately $100 to $120 million and net income of $20 million if all processed natural gas is used in cng filling stations, four plants can supply compressed natural gas to 100 to 120 cng retail filing stations 13experienced management teammr. tianzhou deng, chairman

25、mr. deng has worked in the natural gas industry in china for almost 20 yearschairman of beijing sanhuan technology development co., ltd. from 1999 to 2005president and director of natural gas vehicle development center, cnpc from 1997 to 1999president and chief engineer of jianghan chemical co., ltd

26、., cnpc from 1992 to 1997engineer and project manager of jianghan petroleum designing academy from 1982 to 1992master of management, china science & technology university; bachelor of science in chemistry, university of petroleum, chinamr. deng has worked as a scientist on clean energy research

27、for his entire careermr. bo huang, ceo and presidentchairman and general manager of qingdao sinogas from 2005 to presentpresident of beijing sanhuan technology development company ltd. from 2001 to 2005investment consulting manager and vice president of chencheng group company from 1997 to 2001manag

28、er of china huaneng group from 1993 to 1996 bachelor degree in economics from the peoples university of chinams. qiong (laby) wu, cfosenior auditor at ernst & young, beijing, from february 2004 to june 2006 , audit in charge of federal express china and lucent china, and directed the ipos of sha

29、nghai electric and air china on the hong kong exchangeconsultant of accounting and taxation and partner assistant at hlb, beijing yongtuo cpa from 2001 to 2004material engineer at china building material academy /accountant at beijing trend co. from 1996 to 2001master of professional accountant, and

30、 bachelor in accounting from deakin university, australiacpa australia14summary income statement quarter ended quarter ended year ended year ended june 30 june 30 dec. 31 dec. 31 ($ in thousands) 2007 2006 2006 2005 revenues $6,181 +82.7% $3,383 $12,393 $8,236gross profit 3,209 +167.7% 1,199 6,484 4

31、,415gross margin 51.9% 35.4% 52% 54%operating income 2,216 + 279.5% 584 4,195 3,719operating margin 35.9% 17.3% 33.8% 45.1% net income $1,946 + 1320% $137 $3,447 $2,460 earnings per share-diluted $0.07 $0.01 $0.18 $0.17weighted average diluted shares 29.16mil 14.37mil 19.29mil 14.22mil source: companys sec filings15operating income($ in milli