NewOcean Energy Holdings Limited新海能源集團有限公司

（HKSE Stock code - 0342）

Today – LPG market leader in Southern ChinaFuture – Entering into the era of high yield downstream value chain

July 2011

Table of Contents

1Chapter 1 Corporate Profile

5Chapter 2 Business Overview

11Chapter 3 Business Outlook

22Appendix 1

23Appendix 2

24Appendix 3

16Chapter 4 Financial Highlights

25Appendix 4

LPG automotives Worldwide

The 1st class terminal in Zhuhai

LPG Bottling plants

Lianxin autogas fueling stations

Pages

20Chapter 5 Future Risks and Others

1Chapter 1 Corporate Profile

Pages

Private Company running public utilities business

Listing Place ： Main board of Hong Kong Stock Exchange

Main Business

： Liquefied Petroleum Gas (“LPG”)

Major Assets ： Zhuhai – 1st class LPG import TerminalGuangdong – 12 bottling plants in 7 citiesGuangxi – 4 bottling plants in 4 citiesGuangzhou – 17 autogas fueling stationsSouth China – 141 tanker trucks and LPG bottle wagons

： Outside the PRC：HK – 43 staffsMacau – 29 staffsPRC ：Guangzhou autogas fueling stations – 512人Other area – 611人

Total employees: 1195人

Shareholding ： Existing：Shum family – 41.41%；Public –58.59%

Post TDR：Shum family – 37.66%；Public –62.34%

1

Company Milestone

2001 Focusing on LPG business

2002 Acquired 4 bottling plants in 4 cities in Guangxi whilst developing Guangdong market.

2003 Owning 4 bottling plants in both Guangxi and Guangdong

2004 Acquired the Zhuhai terminal from Iawatani and started LPG wholesale business

2005 Successfully completed the first shipment imported from the Middle East

2006 Acquired an additional bottling plant in Guangdong. And started the Zhuhai terminal expansion.

2007 Approval received for bonded tanks for LPG re-export business. The company owned 4 bottling plants in Guangxi and 9 bottling plants in Guangdong.

2008 Rank no.1 LPG import and export company in China. Set up own logistic business for LPG transport.2009 Develop into downstream supply chain.

2010 Penetrating into the Zhuhai and Macau bottled LPG market. Acquired 17 autogas fueling stations in Guangzhou.2011 Applying for the HK bottled LPG wholesale licence. Received Approval on TDR.

2

Management StructureManagement Structure

ChairmanShum Siu Hung

(Aged 52)

Capital market and business development

Chiu Sing Chung, Raymond

Chief Financial Officer and Electronic BusinessCen Ziniu

International procurement and overseas sales

Siu Ka Fai, Brian

PRC procurement and

wholesalesCheng Kwok Leung, Anson

Operation and Project Manager

Cai Xikun

PRC Retail Executive

Lu Jin Wen

Retail networkDeng Xiaoming

Board of DirectorsExecutive Director

Cai Xikum (aged 63)Cen Ziniu (aged 42)Chiu Sing Chung (aged 52)

Shum Chun (Aged 32)Siu Ka Fai (Aged 48)Wang Jian (Aged 31)

Independent Non-Executive Directors

Cheung Kwan Hung (Aged 59)Chan Yuk Wai (Aged 52)DR. Xu Mingshe (Aged 55)

Remuneration Committee

Audit Committee

Managing DirectorShum Chun, Lawrence

Company SecretaryBilly Wu

ElectronicsLPG

PRC FinancingWang Jian

Technology and safety supervisor

Dai Lu

3

Award WinningAward Winning

Industry Achivement Business Innovation Brand Local Contribution

Hong Kong Outstanding

Enterprise

SCB 1st cross border RMB trade settlement

HSBC 1st cross border RMB trade settlementDBS 1st cross border RMB trade settlement

People's Bank of China in RMB inter-trade Clearing

"advanced unit"

AAA + grade quality and

credibility of qualification units

Chinese Famous Brand

The top 100th tax paying

companies in Zhuhai

Zhuahi A-level tax paying

companies

4

Pages

第一章 液化石油氣(“LPG＂)

5Chapter 2 Business Review

第三章 新海集團–進入高收盛期

附錄一

附錄二

附錄三

第四章 收購聯新

附錄四

世界各地LPG汽車加氣網絡

珠海一級碼頭

三級站

聯新LPG汽車加氣站

Liquefied Petroleum Gas (Liquefied Petroleum Gas (““LPGLPG””)) --Sources of supply and ApplicationsSources of supply and Applications

3

- A mixture of propane (C3H8) and butane (C4H10)- Traditionally, a clean energyLPG

Gas Field Source Oil Refinery

60% % of Global supply 40%

Natural derivatives Nature By product of crude oil cracking

Gas Form under normal condition Gas

RefrigerationPropane -42oC; butane -4oC

Liquefaction(for transportation & storage)

Pressurization (at 20oC)Propane 0.71Mpa; butane 0.14Mpa

Propane & butane separated Ex-factory status Propane & butane mixed

Refrigerated vessel Transportation Pressurized ship & tanker truck

Applications

Household use (cooking, heating)

Commercial use (cooking, heating)

Industrial use (heat processing, spraying)

Agricultural use (drying)

Petrochemical Production (feedstock)

Vehicles (fuel)

Pipeline or bottle

Pipeline or bottle

Bottle

Truck or bottle

Truck

Refueling Stations

Pipeline or bottle

Pipeline or bottle

Bottle

Bottle

5

LPG demandLPG demand -- China lagging behind other developed China lagging behind other developed countries in applying LPG for industrial countries in applying LPG for industrial and and automotive useautomotive use

3

Industrial

485.6

500492.8

420

430

440

450

460

470

480

490

500

510

2007 2008 2009

4

Automotive

67.2

55.5 57

0

10

20

30

40

50

60

70

80

2007 2008 2009

China – LPG for Industrial use China – LPG for Automotive use

0

500

1000

1500

2000

2500

China Japan Korea

Unit:10,000 tons

Unit:10,000 tons Unit:10,000 tons

Household & Commercial

Industrial & Chemicals

Automotives

3%22%

75%

9%

40%

51%

25%21%54%

6

LPG, a replacementLPG, a replacement fuel for Automotives fuel for Automotives --comparisons between fuels for automotivescomparisons between fuels for automotives

3

Fuel Type CNG LPG Gasoline

Power & Energy

efficiency

Total energy density (LHV) (kj/litre) 6,500 – 9,500 23,600✔ 31,700

Energy density ratio to Gasoline 0.26 0.74 ✔ 1.0

Tank volume equivalent to 20 gal of gasoline (litre) *20gal = 75.7litre 291 102 ✔ 75.7

Full tank weight (kg) 299 97 ✔ 68

EnvironmentalProtection

effectiveness

Carbon emission factor (climate) 0.71 ✔ 0.81 1

NOx emission factor (air quality) 0.005 ✔ 0.005 ✔ 1

Fine particles emission factor (air quality) 0.005 ✔ 0.005 ✔ 1

SafetyVaporization Temperature (oC) -162 -50 to 4 ✔ 27 -210

Typical pressure in tank (Mpa) 17.3 – 24.9 0.31 – 1.3 ✔ Ambient

ConvenienceStorage Refrigerated tank Cylinder or tank ✔

Portability Via fixed pipeline Very portable ✔

AutomotivesSource:NREL7

NewOceanNewOcean --the leading LPG supplier in South Chinathe leading LPG supplier in South China

3

LPG Importation 2008 2009 2010

China 2,600,000 tons 100% 4,109,000 tons 100% 3,196,000 tons 100%

Guangdong Province 1,373,000 tons 53% 2,873,000 tons 70% 2,271,000 tons 71%

NewOcean 662,000 tons 25% 798,000 tons 19% 485,000 tons 15%

NewOcean’s ranking Largest Largest Second Largest

LPG Exportation 2008 2009 2010

China 675,000 tons 100% 818,000 tons 100% 916,000 tons 100%

Guangdong Province 404,000 tons 60% 568,000 tons 69% 729,000 tons 80%

NewOcean 259,000 tons 38% 264,000 tons 32% 227,000 tons 25%

NewOcean’s ranking Largest Largest Second Largest

LPG Consumption 2008 2009 2010

China (including export) 21,225,000 tons 100% 23,218,000 tons 100% 24,293,000 tons 100%

Guangdong (including export) 4,985,000 tons 23% 5,809,000 tons 25% 5,829,000 tons 24%

NewOcean’s supply 795,000 tons 1,060,000 tons 1,219,000 tons

NewOcean’s market share in Guangdong 16% 18% 21%

NewOcean’s market market in the whole China 3.75% 4.57% 5.02%

8

Earnings growth Earnings growth --in line with supply chain integration and economy of scalein line with supply chain integration and economy of scale

3

0.00

200,000.00

400,000.00

600,000.00

800,000.00

1,000,000.00

1,200,000.00

1,400,000.00

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

RetailingWholesaling

tons

0.00

20,000.00

40,000.00

60,000.00

80,000.00

100,000.00

120,000.00

140,000.00

160,000.00

2004 2005 2006 2007 2008 2009 2010

Net ProfitHK$＇000

2007 2008 2009 2010

Total Storage (tons) 17,972 18,072 19,722 20,322

Sale volume (tons) 650,000 795,000 1,060,000 1,219,000

Storage Turnover Time 10.09 days 8.3 days 6.79 days 6.08 days

Volumes growth Earnings growth

Adopt high storage turnover strategy

Wholesaling mostly on back to back cost plus basis

Always pursue high growth in sales volume

Always pursue the integration of supply chain inside China

Started LPG wholesaling through self-owned Sea

terminal in Zhuhai

9

Integrated supply chain Integrated supply chain --competent to provide fullcompetent to provide full--fledged servicesfledged services

3

LPG production

Terminal storage transportation

Bottling Plants

Retailers End users

Households, Commercial Customers

Industries with storage

Industries without storage

Pipeline distributors

LPG Producing Countries

Refrigerated Vessel

Imported LPG

Local Refineries

Domestic LPG

NewOcean integrated supply chainOversea Market -

Hong Kong, Macau, Vietnam,

Philippines

transportation

ZhuhaiTerminal

ZhuhaiTerminal

16 Bottling plants in

Guangdong and Guangxi

17 Auto-gas stations in

GuangzhouGuangzhou 8,000

buses, 18,000taxies

Over 220 Retailing shops in

China

Tank Lorries

Tank Lorries

pressurizedship

Tank Lorries

Tank Lorries

10

第一章 液化石油氣(“LPG＂)

第二章 新海集團

附錄一

附錄二

附錄三

第四章 收購聯新

附錄四

世界各地LPG汽車加氣網絡

珠海一級碼頭

三級站

聯新LPG汽車加氣站

11Chapter 3 Business Outlook

Pages

第四章 收購聯新

Business strategy –To enter the lucrative downstream market

Guangzhou

Zhuhai ShenZhen

Hong KongMacau

LPG Autogas marketAcquisition of Lianxin completed in Dec 2010. Currently operating 17

LPG autogas fueling stations

Zhuhai bottled LPG marketBottled LPG distribution commenced in Apr 2010, also

ready to serve Macau distributors in bottle refilling.

Macau bottled LPG marketEntered into the Macau bottled LPG market in Mar

2010

HK bottled LPG marketExpecting to receive the license of “Registered Gas supply company “ for bottled LPG distribution in HK

by the end of 2011.

Refined oil product wholesale businessConstructing 80,000 tons refined oil products

storage facilities

Pearl River Delta Economic Zone

11

Up-shifting into the autogas market

Guangzhou autogas market Lianxin

• The only city in Guangdong using LPG as vehicle fuel.

• Started in 1996.• Number of vehicles – 18,000

taxies and 8,000 buses• The city has total of 38 fueling

stations • Annual LPG consumption is

400,000 tons

• Company established in 1996 to cater the City’s autogas policy development.

• Currently the largest autogas operator.

• Holding 17 autogas fueling stations in Guangzhou

• Most stations situate in the prime location with heavy traffic flow.

• 13 out of 17 stations are located in the bus terminal.

• Annual trade volume reached to

250,000 tons

• 60% market share

Short termThe Group LPG retail

volume increase by 250,000tons per annum

Long termPenetrate other cities in

Guangdong province

（Foshan、Zhuhai、Zhongshan、Shunde）

And HK , Taiwan autogasmarket 12

Hong Kong and Macau bottled LPG business

Transit warehouse and distribution center in

the Zhuhai city

Terminal and bottling plant

in Zhuhai

Transit warehouse and

distribution center in Tuen

Mun, HK

HK – Business model

‧ No terminal, storage and bottling facilities

‧ Leveraging on our existing facilities to supply LPG to the HK market.

‧ To increase the frequency of Zhuhai– HK route (about 275km per trip）

‧ GP in the HK market= 10x the PRC market

‧ Projected annual trade volume 10,000– 18,000 tons

Macau – Business model

‧ Acquired transit warehouse in the Zhuhai city

‧Cross border delivery to local distributors

‧ GP in the Macau market = 3x the PRC market

‧ Projected annual trade volume 20,000 tons

13

Zhuhai–HK（Heavy bottles/Empty bottles transport route）

Zhuhai–Macua（Heavy bottles / Empty bottles transport route）

Refined oil storage facilities and wholesale business

97# Gasoline - 10,000 toms

97# Gasoline – 10,000 tons

90# Gasoline – 10,000 tons

98# Gasoline – 5,000 tons

90# Diesel fuel - 10,000 tons

0#Diesel fuel – 20,000 toms

0#Diesel fuel l – 10,000 tons

Reserve tank– 5,000 tons

Tanker filling station

14

Refined oil storage facilities:

1. Approx. 80,000tons refined oil product storage capacity

2. Est 12-months construction period.

3. Target completion in mid-2012.

4. Mainly to provide facilities storage and logistic service

5. To apply for bonded warehouse post construction, and to operate bunker oil business

Further enhancement of logistic efficiency Further enhancement of logistic efficiency of the existing supply chainof the existing supply chain

3

Wholesaling by ships - to build two additional berths for cargo distribution

Wholesaling by trucks - to cut short tanker trucks filling time from currently 50 minutes to 30 minutes

Retailing in bottles - to deploy more bottle wagons than relying on shops for direct distribution to end users

15

第一章 液化石油氣(“LPG＂)

第二章 新海集團

附錄一

附錄二

附錄三

附錄四

世界各地LPG汽車加氣網絡

珠海一級碼頭

三級站

聯新LPG汽車加氣站

第三章 新海集團–進入高收盛期

16Chapter 4 Financial Analysis

Pages

第三章 新海集團–進入高收盛期

Revenue and Profit after taxtons HK$＇000Volume growth Earning growth

Stable Gross and Net margin；Earning growth led by increased sales volume

5.27%6.10%3.69%4.40%Gross Profit Margin

HKD in million 2007 2008 2009 2010

Revenue 3,890 6,159 ↑ 58% 6,483 ↑ 5% 8,478 ↑ 31%

Gross Profit 171 227 395 447

Other Net income (Related to Capital Mngt of Operation)

60 72 8 74

Total Gross Profit 231 299 403 521

Gross Margin 5.93% 4.85% ↓1.08% 6.22% ↑1.37 % 6.15% ↓0.07%

Profit After tax 50 53 112 137

Net Margin 1.29% 0.86% ↓0.43% 1.73% ↑ 0.87% 1.62% ↓0.11%

0.00

200,000.00

400,000.00

600,000.00

800,000.00

1,000,000.00

1,200,000.00

1,400,000.00

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

RetailingWholesaling

0.00

20,000.00

40,000.00

60,000.00

80,000.00

100,000.00

120,000.00

140,000.00

160,000.00

2004 2005 2006 2007 2008 2009 2010

Net Profit

16

Income Statement

HKD in million 2007 2008 2009 2010

Revenue 3,890 6,159 +58% 6,483 +5% 8,478 +31%

Cost of sales (3,719) (5,932) (6,088) (8,031)

Gross Profit 171 227 395 447

Other net income 60 72 8 74

Total Gross Profit 231 299 +29% 403 +35% 521 +29%

Administrative and other expenses (94) (161) (157) (164)

Changes in fair values of derivatives financial instrument (23) 12 3 (82)

Finance costs (34) (53) (53) (68)

Depreciation and Amortisation (28) (43) (41) (52)

Profit before taxation 52 54 155 155

Taxation charge (2) (1) (43) (18)

Net Profit 50 53 +5% 112 +113% 137 +22%17

Key financial indicators

2007 2008 2009 2010

Average inventory turnover period 9.08 Days 8.15 Days 16.91 Days 20.36 Days

Average receivable turnover period 26.74 Days 26.05 Days 34.06 Days 32.68 Days

Debt/ asset ratio** 68% 64% 65% 61%

Current ratio 101% 101% 106% 118%

Net asset value per share HKD 0.9854 HKD 1.1506 HKD 1.0418 HKD 1.2352

Earning per share HKD 9.52 cents HKD 8.48 cents HKD 11.53 cents HKD 11.59 cents

ROIC 9.54% 7.38% 11.02% 9.27%

Weighted average share outstanding (shares) 531,625,851 623,672,335 975,483,511 1,197,071,698

** Excluding derivatives related bank loans to the net debt calculation 18

Balance Sheet

HKD in million 2007 2008 2009 2010

Cash 106 5% 144 5% 195 5% 380 7%

Pledge bank deposits - Derivatives instruments related 691 30% 732 27% 1,392 33% 2,036 35%

Inventories 127 5% 138 5% 426 10% 470 8%

Current Assets 1,583 68% 1,877 70% 3,364 80% 4,774 82%

Fixed Assets 736 32% 823 30% 862 20% 1,025 18%

Total Assets 2,319 100% 2,700 100% 4,226 100% 5,799 100%

Bank trust receipts loans 396 17% 631 23% 690 16% 1,250 22%

Bank loans - Derivatives instruments related 669 29% 678 25% 1,362 32% 1,963 34%

Current Liabilities 1,569 68% 1,857 79% 3,173 75% 4,046 70%

Long term liabilities 226 10% 125 5% 37 1% 275 5%

Shareholders’ equity 524 22% 718 26% 1,016 24% 1,478 25%19

第一章 液化石油氣(“LPG＂)

第二章 新海集團

附錄一

附錄二

附錄三

附錄四

世界各地LPG汽車加氣網絡

珠海一級碼頭

三級站

聯新LPG汽車加氣站

20Chapter 5 Future Risks and Others

Pages

Future RisksFuture Risks

3

1. Investors cannot completely depend on those statistical data and information on prospectus.2. Those proactive statements on the prospectus might involve risks and uncertainties.

(The factors of risk please refer to page 7 to 9 in the prospectus.)

Risks Offering and Issuance of TDR

Company-based Risks Main Operating Area Risks

1. Risks of Fluctuation in raw material price2. Risks of expanding into foreign markets and operating3. Risks of fluctuation in currency4. Risks of highly dependent on China market5. Risks of accidents and equipment failure6. Risks of restrictions on LPG price by government7. Risks of force majeure

The Group’s major business is sales and distribution of LPG through retail and wholesale mainly in China. It only registers at Hong Kong, Macau, Bermuda and BVI, but not runs their business there. Thus, only discuss the factors in China:1. Political risk, Economic risk and Social risk2. Legal risk3. Risks of restrictions on environmental protection act

20

The Info required to be supplied in the prospectus The Info required to be supplied in the prospectus by Competent Authorityby Competent Authority

21

The following info is required to be supplied in the prospectus by Competent Authority. Please refer to the attachments.

1. The evaluation of the TDR issue price rationality

2. The condition of the issuer's distribution of dividends and the evaluation of its dividend policy clarity and rationality in last three years

3. The info of process, counterpart and source of funds in acquisition of Lian-Xin in 2010 and the evaluating the reasonableness of acquiring price, legality and economic efficiency.

4. The effect of LNG development on the future of the TDR issuer

5. The declaration by the issuer and the underwriter for not involving in the selling process and clients.

Appendix 1Appendix 1 -- LPG automotives worldwideLPG automotives worldwide

3

AfricaCounties Automotives StationsAlgeria 167,500 350 The no. of LPG Automotives

EuropeCounties Automotives StationsFrance 140,000 1,865Czech Republic 200,000 800Germany 300,000 4,400Italy 930,000 2,350Holland 240,000 1,900Poland 2,080,000 6,350Turkey 2,240,000 7,449British 153,000 1,403Russia 600,000 2,000

AsiaCounties Automotives StationsAustralia 650,000 3,200China 76,500 234India 550,000 738Japan 289,148 1,900Korea 2,321,272 1,589

AmericaCounties Automotives StationsAmerica 650,000 3,200Dominica 170,000 115Mexico 540,000 2,300

Source: WLPG 2008

It's a large increase

from 6.5 million(2000) to 14.6million (2008)

Promoted for contributing to the materialization of a low carbon society.

LPG is more cost-effective than traditional fuels

22

Appendix 2 ： 11stst class terminal in class terminal in ZhuhaiZhuhai

3

23

Appendix 3Appendix 3 ：： Bottling PlantsBottling Plants

3

24

3

Appendix 4Appendix 4 ：： LianxinLianxin LPG LPG autogasautogas fueling stationsfueling stations

25