Background

China New Energy Limited was incorporated in Jersey and acts as an off shore investment holding company being the sole shareholder of the Group’s principal trading entity ZKTY, a wholly foreign owned enterprise incorporated in the PRC.

The origins of ZKTY’s activities date 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 Scicences. Certain of the Directors and GIEC CAS,through an investment holding company, were founding shareholders of GZTY Regeneration Resources.

In 2004, Guangzhou Baojie Electromechanical Co., Ltd. (“Guangzhou Baojie”) was founded by certain of the Directors and others, to focus on the production and supply of equipment and provision of production technology and technical services to produce ethanol downstream products, including acetic acid and ethane.

In 2006 ZKTY acquired certain assets, including customer contracts, from Guangzhou Baojie and GZTY Regeneration Resources, which enabled the establishment of ZKTY’s operations.

In October 2010, ZKTY acquired Guangdong Boluo Jiuneng High Technology Engineering Co., Ltd.(“Boluo”), a company incorporated in the PRC. Boluo fabricates and manufactures equipment in accordance with project requirements and designs, and provides its services exclusively to ZKTY.

The Group also provides services including:

· energy management
· yeast management
· waste management
· R&D

Milestone