中国可利电气有限公司 china keli electric company ltd zkl

September, 2010

中国可利电气有限公司C h i n a K e l i E l e c t r i c C o m p a n y L t d

http://www.zkl.cc

Investor Presentation(TSX-V: ZKL)

Private & Confidential

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Disclaimer中国可利电气有限公司

China Keli Electric Company Ltd.

Forward-Looking Statements:

All statements, other than statements of historical fact, set forth, including without limitation, assumptions and statements regarding reservoirs, resources and reserves, future production rates, exploration and development results, financial results, and future plans, operations and objectives of the corporation are forward-looking statements that involve substantial known and unknown risks and uncertainties. Some of these risks and uncertainties are beyond management’s control, including but not limited to, the impact of general economic conditions, industry conditions, fluctuation of commodity prices, fluctuation of foreign exchange rates, environmental risks, industry competition, availability of qualified personnel and management, availability of materials, equipment and third party services, stock market volatility, timely and cost effective access to sufficient capital from internal and external sources. The reader is cautioned that assumptions used in the preparation of such information, although considered reasonable by the corporation at the time of preparation, may prove to be incorrect. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements.

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Who are we中国可利电气有限公司


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We are…

“A fast growing hi-tech enterprise in the power industry focused on research & development, manufacturing and distribution of pressurized switches, automated voltage controllers and other advanced technology related products for the transmission and distribution segment of the power industry”

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Company Profile: China Keli Electric Company Ltd 中国可利电气有限公司


Profile • Through its wholly own subsidiary, Zhuhai Keli Electric Co., Ltd, China Keli Electric Company Ltd. (TSX-V: ZKL) is the only fully integrated Chinese utility equipment producer listed on the TSX-V.

• Operation is located in Zhuhai, GuangDong Province of China

• One of five the AAA+ Companies within the Chinese electric utility equipment manufacturing industry

• Strong relationship with the many provincial governments across China

Revenue Growth

History • Established in 1995

• Became listed on the Toronto Stock Venture Exchange in May, 2010 under the symbol ZKL through an RTO transaction

Net Profit Margin Growth

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CAD$MM

2008 – 2010 CAGR = 11.3%

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Company Profile: China Keli Electric Company Ltd 中国可利电气有限公司


Corporate Structure

• Over 180 employees in total across all departments

2% 6%

12%

4%

9%

7%

60%

Upper ManagementMiddle ManagementLower ManagementResearchersTechniciansAssistantsWorkers

• Fully independent R&D capabilities with many years of proven success

• 15 Utility and Design patents registered with State Intellectual Property Office of China

• Over 18,000m2 of space available for production and assembly

• Recognized as one of the technological leaders within the Chinese electric utility equipment manufacturing industry

• Product qualities are ensured by ISO9001:20008 and IQNet Certificates.

Production and R&D Facilities

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Key Management中国可利电气有限公司


Name Title Experience

Sou Wa Wong

Chairman

• Founder of the Company• Has been involved in the manufacturing and marketing of

electrical components and equipment in PRC since 1995

Lou Meng Cheong

CEO, Director

• Joined the Company in July 2003 as senior manager of the Production Department in Zhuhai Keli

• Promoted to become CEO of the Company in 2006

Kelvin Dong Zhang

CFO

• Qualified CICPA & AICPA with working experience in the U.S.• Former senior manager PriceWater Coopers • Worked in the PriceWater Coopers Seattle office with major

audit clients including China Unicom Limited, China Mass Media Corp., T Mobile US‐

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Key Management中国可利电气有限公司


Name Title Experience

George Dorin

Independent Director

• Registered Chartered Accountant• 30 years of broad-based financial experience, including 15 years of services

as CFO and Directors in many publicly listed companies• Granted as Corporate Finance specialist designation from the Canadian

Institute of Chartered Accountants in 2008

Michael Raymont


• Seasoned executive with very extensive CEO and Board experience • Focused in a variety of fields including business management (emphasis on

the energy and technology sectors) , finance (venture capital, private equity), government and R&D

Yan Zhang


• Senior Chinese lawyer• Over 10 years of experience in company law, securities and foreign

investment

Wu Jian Wen


• Assistant Dean at The Beijing University of Aeronautics-and-Astronautics• Obtained his Ph.D and Master degree from Xi'An JiaoTong University and

ShenYang University of Technology• Former Department Manager of China Dong Fang Electronics Ltd. as well as

the Vice Department Chairman of the Aeronautics and Astronautics faculty

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Market Snapshot: Demand for Electricity中国可利电气有限公司


• China uses only 1/10 as much energy per capita as the U.S. and 1/6 as much as the OECD, allowing for a lot of room for domestic growth

1. Sources from China Daily, Jan 20102. Source from: “2009-2010 Report on China Electric Power Industry” by 168report

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Smart Grid Technology

• In May 2009, the National Grid Company proposed to convert all grid networks to smart grid technology by 2020

• In March 2010, Premier Wen Jiabao announced the support of the PRC Government for the conversion to smart grid technology

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Transmission and Distribution Equipment Industry中国可利电气有限公司


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Industry Outlook

• Government’s policy towards the utility equipment manufacturing industry is encouraging consolidation of market participants

• Continuance of urban expansion will increase the demand for electricity and electricity’s supporting infrastructure (transmission and distribution)

• Fewer market participants combined with growing markets for utility equipment will enhance the profit margins of the remaining companies

• Independent R&D capabilities and QA/QC will become an important factor in deciding which market participants will survive and prosper in the long term

• Between 2005 to 2009, per capita electricity consumption in China increased from 1,888kWH to 2,730kWH (~10% CAG)

• Average annual per capita electricity consumption will exceed 4,000kWH, overtaking the US as the No.1 electricity consumer in the world by 2015

• As of September 2010, over 660Billion RMB (approx. CAD$103Billion) has been invested into the Chinese electricity industry. Of which, 150Billion RMB (approx. CAD$23.4Billion) was invested specifically into the pressurized switch gears industry.

Industry Development

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Structure & Shares Distribution中国可利电气有限公司


Legal Structure

China Keli Electric Company Ltd.(TSX-V: ZKL)

Creative Grace Ltd (HK)

100%

Zhuhai Keli Electric Co., Ltd

Zhuhai Qunhui Electronic Equipment

Co., Ltd.

100% 100%

Insider, 69.58%

Public Float,

30.42%

Shares Distribution

Shares Outstanding: 89.95Million

52w High/Low C$0.65/C$0.26

Market Capitalization: C$26.99Mil

P/E: 13.95x

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Growth Strategy中国可利电气有限公司


Organic Growth

• Expansion of product portfolio

• Expansion of manufacturing capacity to meet continuously growing demand

• Continue to develop and strengthen relationships with the many provincial governments

• Continue improving efficiency and margins

• Continuation of R&D and the development of technologically advanced products, including smart grid applications

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Opportunistically look at strategic acquisitions in the same market sector (consolidation and roll-up play)

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Proof of Strategy中国可利电气有限公司


For the fiscal year ended April 30, 2010, the Company has recorded an Operating Revenue of 76,520,787RMB (approximately C$11.9Million), an increase of 21.9% over the previous year’s operating revenue.

Between May and June of this year, the Company was successful in securing a winning bid with the China Southern Power Grid Company for a series of equipment orders with market value of 10,438,093RMB (approximately C$1.62Million)

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Recent Development

Source from: Company’s press release

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Selected Financials: Income Statement中国可利电气有限公司


CAD/RMB = 6.5792 FYE – APR 30

CAD$ 2008 2009 2010 2010 Vs. 2009

Revenue $ 9,056,189 $ 9,543,745 $11,630,713 21.9%

Gross Profit $ 2,353,544 $ 3,810,055 $4,739,286 24.4%

EBITDA $ 1,064,108 $ 2,231,481 $2,851,583 27.8%

Net Income $ 652,389 $ 1,483,017 $1,927,863 30.0%

Source from: Company’s 2009, 2010 Audited Financial Statements

2010 Profitability Ratios

Gross Profit Margin 40.75%

Net Profit Margin 16.58%

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CAD$000

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Investment Highlights中国可利电气有限公司


Established industry participant with strong track record and a reputation for quality products

Proven management team with extensive industry experience

Fully integrated R&D capabilities for new product development

Proven delivery of solid financial results Robust market segment growth with solid margins

points to continuing vigorous financial performance Favorable industry with strong government support

for further rapid expansion

TSXV -- ZKL

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中国可利电气有限公司China Keli Electric Company Ltd.

Thank You

Mr. Cheong Lou MengDirector & CEO

Tel: (86) 13926991010Email: [email protected]

Mr. Kelvin Dong ZhangCFO


Michael RaymontIndependent Director


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Contacts

中国可利电气有限公司 china keli electric company ltd zkl

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