Company Information for China New Energy Limited

PLUS-CNEO

www.chinanewenergygroup.com

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PLUS; CNEO

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Company Statement

CNE, a newly incorporated Jersey company, has been established as an investment
vehicle focusing on the rapidly expanding ethanol sector in China. The Company
is seeking to acquire operational assets relating to the supply of turnkey
technology solutions for the production of ethanol, edible alcohol and acetic
acid from a range of bio-resources, including corn, sugarcane, cassava and
other bio-resources in China. The Company aims to become a leading player in
China's fuel ethanol market by:

Supplying equipment, engineering design, installation, and commissioning of ethanol production equipment;
After sales service for newly built and reformed factories;
Ownership of ethanol production facilities.

The Directors have identified a number of opportunities which, in their
opinion, will meet the Company's investment strategy. The Company has raised
GBP 2.2 million from the London Asia Chinese Private Equity Fund ("LACPEF").

Company Diagram

300,000T Alcohol Equipment for Jilin Songyuan Ji’an Bio-chemical Co., Ltd.

Operations and Technology

THE MARKET

Fuelled by rapid economic growth, China has become a significant energy consumer, with its annual increase in energy consumption almost equal to the total installed capacity in the UK, and usage rising by 16% alone in 2004. Although China's oil consumption is the second highest in the world, it is still less than a third of that of the US, and less than 10% per head of that in the West. Demand growth in China accounted for 52% of global energy demand growth from 2002-2004. In 2005, China imported over 44% of its oil consumption and this is set to increase significantly as China's growth and manufacturing boom continues.

The Chinese government is eager to reduce the country's reliance on oil imports and to increase the uptake of alternative fuels, both for economic, environmental and strategic defence reasons. It is therefore very supportive of the renewable energy sector.

The Chinese government has enacted various laws and regulations encouraging the use of renewable energy as a substitute for fossil fuels, one of which states that vehicle fuel must comprise at least 10% fuel ethanol in 11 of the 33 provinces in China. This creates a new market for ethanol production, as previously only one province was operating a trial system. As more provinces start to implement this policy, China is likely to face a significant shortage in fuel ethanol. According to the National Development and Reform Committee, the demand for fuel ethanol in the next five years will reach 5-7 million tonnes annually, whilst fuel ethanol production in 2005 was only 1.02 million tonnes. Hence the market size is expected to increase considerably, resulting in significant opportunities in the supply chain to the ethanol production
market.

Geographical Spread

Major Customers

The Company has a strong and growing customer base in China. Its major customers include Songyan Ji'an Bio-Songyan Ji'an Bio-chemical Co., Ltd (China's top 3 ethanol producers), Shenyang Tianming Alcohol Co., Ltd., Jilin Meihekou Alcohol Co., Ltd., Chuangchun Jiliang Bio-engineering Co., Ltd. and Jilin Xintainlong Wine Co., Ltd.

Projects Completed in 2005

1. Shenyang Tianming Alcohol Co., Ltd. 100,000T superfine edible alcohol 30,000T acetic acid

2. Jilin Meihekou Alcohol Co., Ltd. 60,000T superfine edible alcohol

3. Inner Mongolia Kailunu Bio-chemical Co., Ltd. 60,000T superfine edible alcohol

4. Liaoning Huludao Xirui Amylum Co., Ltd. 60,000T superfine edible alcohol

5. Inner Mongolia Lantian Sugar Co., Ltd. 30,000T superfine edible alcohol

6. Hebei Chengde Summer Resort Group. 30,000T superfine edible alcohol

7. Pakistan. 30,000T fuel ethanol

8. Heilongjiang Hegang Xingze Group. 50,000T superfine edible alcohol

9. Jilin Liaoyuan Jufeng Co., Ltd. 100,000T superfine edible alcohol

10. Guangxi Yangsen Alcohol Co., Ltd. 30,000T anhydrous alcohol

11. Tongliao Zhongketianyuan Amylum Chemical Co., Ltd. 100,000T superfine edible alcohol 30,000T acetic acid

12. Songyuan Ji'an Bio-chemical Co., Ltd. 150,000T acetic acid, 200,000T edible alcohol, molecular sieving dehydration for 50,000T ethanol

Board of Directors and Key Management

Mr Yu Weijun - Chairman

Mr. Yu, founder of the Company, is the former deputy chief of Guangzhou Energy Institute of the China Academy of Sciences (CAS) the leading research centre in China and has considerable experience in the fuel ethanol sector in China. Mr. Yu is very experienced in the management of engineering companies, finance and accounting. He has an EMBA from Sun Yat-sen University.

Mr Tang Zhaoxing - Executive Director

Mr. Tang is a Senior Engineer. He studied in the chemical faculty of the South China University of Science & Technology. He is responsible for the development and implementation of the technology for ethanol and its derived products, equipment supply, technical services and R&D. He has 15 years experience in the ethanol industry, and over 10 years experience in company management. He has an EMBA from Peking University and a Master of Sciences.

Mr Simon Littlewood - Non-Executive Director

Simon is a co-founder and the Chief Executive of London Asia Capital plc

(London Asia). After qualifying as a Chartered Accountant with Coopers & Lybrand, London (now PwC) where he specialised in high growth companies, he joined the structured and corporate finance division of the HSBC Group in London. In 1995, he moved to BDO Stoy Hayward's corporate finance team, where he advised on AIM flotations, mergers and acquisitions and fund raisings,leaving in 1996 to set up the Temima Group, an investment and corporate finance business. In 2002 he took over an AIM listed shell which he converted into

London Asia.

He has experience of working on transactions in the UK, Germany, Eastern Europe, France, the US, Israel, China, Malaysia, Taiwan and Singapore. He is a director of AIM listed Europasia Education plc and London Asia Chinese Private Equity Fund, a number of private companies and represents London Asia on the boards of several of its investee companies, including PLUS listed China Education Group, China Eastsea Business Software and Peach Blossom Media. Simon graduated in Law from Oxford University and is authorised by the UK's Financial

Services Authority.

Victor Ng - Non-Executive Director

Victor is a co-founder and executive director of London Asia Capital plc. A former principal with KPMG Singapore, he has funded, advised and launched several start-ups as well as later stage companies including several which were subsequently listed in Singapore, Malaysia, New York and London.

Victor is currently a director of several China and Asia-Pacific-focused companies including Singapore listed Asia Water and Asia Power Corp Limited, UK AiM listed Europasia Education Limited and London Asia Chinese Private Equity Fund, and PLUS traded China Education Group, Peach Blossom Media Limited, China Biotech Healthcare limited and Dalian Business Institute.

Company Address

4th Floor
35 Park Lane, London, United Kingdom W1K 1RB


Telephone:	+20 7355 7928
Email:	info[at]londonasiacf.com
Website:	http://www.chinanewenergygroup.com

Additional Address/Key Contact

Head Office
8th Floor, Conversion Tech Intergrated Building, Guangzhou Institute of Energy
4 Nenyuan Rd, Wushan
Tianhe District
Guangzhou 510640
China

Capital

6,733,106 ordinary shares with a nominal value of 1 pence each

Nominated Advisors

London Asia Corporate Finance Ltd.

Major Shareholders

LACPEF	25.0%
Leader Vision Investment Limited	23.8%
(Beneficial owner - Yu Weijun)
Asia Tianxing Investment Limited	17.8%
(Beneficial owner - Tang Zhaoxing)
Best Full Investments Limited	17.8%
(Beneficial owner - Liang Hongtao)
Qiu Weiming	7.4%
Jiang Xinchun	7.4%

Directors' shareholdings in the Company are 41.6%.

Most Recent Statement

26/07/07 - CNE Raises New Funds Through Convertible Bonds
01/06/07 - 2006 Final Results

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