China New Energy - 中科天元 -

Introduction

China New Energy Limited was incorporated in Jersey in 2006 and acts as an investment holding company being the sole shareholder of the Group’s principal trading entity Guangdong Zhongke Tianyuan New Energy Technology Co. Ltd. ("ZKTY"), a wholly foreign owned enterprise incorporated in the PRC in 2006.

The origins of ZKTY’s activities dated back to 2002, with the formation of Guangdong Zhongke Tianyuan Regeneration Resources Engineering Co., Ltd (“GZTY Regeneration Resources”), which was formed as a result of a spin-out from Guangzhou Institution of Energy Conversion ("GIEC"), Chinese Academy of Sciences ("CAS"). Certain of the Directors and GIEC CAS, through an investment holding company, were founding shareholders of GZTY Regeneration Resources.

The Company provides process technology, engineering designs, plant manufacturing and operational services in connection with the production of, inter alia, fuel ethanol, edible ethanol, biobutanol, bioacetic acid and other chemicals from agricultural plant materials and waste. ZKTY provides its services to primary producers and users of bioenergy. The products made using its technology, bioethanol and biobutanol, are commonly used by downstream producers as primary fuels, as solvents for use in the chemicals industry or as ingredients for the beverages industry.

More than 100 (fuel) ethanol, bio-butanol production plant projects have been constructed since the foundation. All projects passed trial run at the first time and are running well. As the technical leader in the industry, our domestic market share is over 60%, and ranks first since 2004. The business market has been expanded to ASEAN, EU, South Asia and Chinese Taipei.

Our core technology research and development team and the key management team have many years experience in accumulation of scientific research and engineering. Being the members of China's leading bioenergy project team, the experts have launched several research results to the market and achieved industrialization, which makes the company grow rapidly.

The company currently owns more than 22 invention patents and multiple proprietary technologies in China, while having overwhelming superiority in energy saving of ethanol and bio-butanol distillation section in the industry. We set up Guangzhou Zhongke Tianyuan Liquid Biofuels Engineering Technology Research and Development Center, and independently or jointly participated in the implementation of the National 863 Project, ministerial, provincial, municipal and CAS Knowledge Innovation Project of the scientific and technological as well. As the projects have been completed successfully, the company highlights the ability of independent innovation.

Through expansion and acquisitions, adhere to the "creativity, perfection, integrity", the purpose of the enterprise, the company strives to build a Chinese bio-energy industry benchmark enterprise, and gradually forms an internationally competitive, first-class integrated service provider of international famous bio-energy technologies.