Background

The origins of our Group can be traced back to 2002, with the formation of Guangdong Zhongke Tianyuan Regeneration Resources Engineering Co. Ltd.*(广东中科天元再生资源工程有限公司)(‘Zhongke Regeneration’), which was formed as a result of a spin-out from Guangzhou Institute of Energy Conversion, Chinese Academy of Sciences* (中国科学院广州能源研究所) (‘GIEC CAS’), which was a prominent research centre in China which specialises in the research of alternative energy and renewable energy technologies. Mr. Yu Weijun, our executive Director, Mr. Tang Zhaoxing, our executive Director, Mr. Jiang Xinchun, our general manager and senior management, Mr. Qiu Weiming, a former director of Guangdong Zhongke Tianyuan New Energy Science and Technology Co. Ltd.（广东中科天元新能源科技有限公司）('Zhongke Tianyuan'), Mr. Chen Baiquen, a former supervisor of the R&D department of Zhongke Tianyuan, and Guangzhou Zhongke Huanneng Technology Co., Ltd.* (广州中科环能科技有限公司)(‘Zhongke Environment’), an asset management company of GIEC CAS, were founding shareholders of Zhongke Regeneration. In September 2006, Zhongke Tianyuan acquired certain assets, including service contracts entered into by Zhongke Regeneration, respectively, in 2002 and 2004 as well as manufacturing equipment for the production of ethanol and its related products, from Guangzhou Baojie Electromechanical Co., Ltd.* (广州保捷机电有限公司)(‘Baojie’) and Zhongke Regeneration respectively, which enabled the establishment of our business operations.

On 1 August 2006, Zhongke Environment and Baojie entered into an equity transfer contract on the China Beijing Equity Exchange, pursuant to which Zhongke Environment transferred all of its 49% equity interests in Guangdong Boluo Zhongke Tianyuan High and New Technology Engineering Co., Limited*(广东省博罗高新技术工程有限公司)(‘Boluo Tianyuan’) to Baojie at a consideration of approximately RMB1.42 million. On the same day, GIEC CAS and Zhongke Regeneration entered into an equity transfer contract on the China Beijing Equity Exchange, pursuant to which GIEC CAS transferred all of its 51% equity interest in Boluo Tianyuan to Zhongke Regeneration.

On 28 September 2010, Baojie and Zhongke Regeneration respectively entered into equity transfer contracts with Zhongke Tianyuan, pursuant to which Baojie transferred all of its 49% equity interests in Boluo Tianyuan to Zhongke Tianyuan, and Zhongke Regeneration transferred all of its 51% equity interests in Boluo Tianyuan to Zhongke Tianyuan. After the transfer, Boluo Tianyuan became our wholly owned subsidiary.

Milestone

2006

Our Company and Zhongke Tianyuan were incorporated and established, respectively. Zhongke Tianyuan then acquired certain assets, including service contracts entered into in 2002 and 2004 by Zhongke Regeneration as well as manufacturing equipment for the production of ethanol and its related products, from Baojie and Zhongke Regeneration, respectively.

Due to our patented technology for the production of ethanol fuel by cassava and sugarcane mixed raw materials thick mash fermentation* (木薯、甘蔗混合原料浓醪发酵生产燃料乙醇), we received the BlueSky Award, the Global Top Ten Investment Scenarios to Apply New Technologies for Renewable Energy Utilisation* (最具投资价值的十大领先技术) by the United Nations Industrial Development Organization* (联合国工业发展组织) , which established the status of Zhongke Tianyuan in the bioliquid fuel technology.

2007

Our Group acquired the rights to certain patent applications from Zhongke Regeneration.

We were awarded and recognised as the Guangzhou Engineering Technology Research and Development Center* (广州市工程技术研究开发中心) by Guangzhou Science and Technology and Information Technology Bureau* (广州市科技和信息化局), Guangzhou Development and Reform Commission and Guangzhou Economic and Trade Committee* (广州市经济贸易委员会).

2008

Certain pressure equipment designed and constructed by us conformed to European Union specifications that it could be affixed with “CE” markings and can be sold throughout the European Economic Area.

2010

Our Group was accredited with the “High and New Technology Enterprise Certificate”* (高新技术企业认定证书) since 2010.

2011

Our Shares were admitted on AIM under the stock code “CNEL”.

2014

Zhongke Tianyuan was awarded and recognized as the Engineering Technology Research Center of Guangdong Province* (广东省省级工程技术中心) by Ministry of Science and Technology of the PRC* (广东省科技厅).

2017

ASME certification marked the establishment of an effective ASME pressure vessel quality management system of our Group, and was of far-reaching significance for entering the North American market.