Section 2

Business Overview

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Industrial Waste Gas Treatment Process

Dust elimination & collection Desulphurisation De-NOx

Below is a sample diagram of how a comprehensive waste gas solution which includes an ESP

system, a desulphurisation system and a De-NOx system would be set up

Dust collection: The waste gas

passes through an ESP where

ash and dust are removed

Desulphurisation: The waste gas passes through

a flue gas desulphurisation (FGD) plant where it is

‘scrubbed’ with limestone and water whereby

gypsum is produced as a byproduct which is

marketable as building material

De-NOx: The waste gas is mixed with ammonia

(NH3) and passes through a selective catalytic

reduction (SCR) reactor (involving a chemical

process of turning NOx into nitrogen and water). The

water and water vapour is removed and the resultant

treated gas is discharged

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Our Key Products And Waste Gas Solutions

Electrostatic Precipitator (ESP)

Electrostatic Lentoid Precipitator (ESLP)

ESPs use electrical forces to facilitate the removal of particulate matter from exhaust gases

Electrical energy is required for gas ionization, particle charging, particle coagulation, agglomeration or vapour

condensation

Proven ability to achieve emissions of <30mg/m3

ESLP is an improved version of ESP

It comprises three electrodes that focus and converge the flow of particulates

Proven ability to achieve emissions of <15mg/m3 in a cost effective manner

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Baghouses

Uses filtration to separate dust particles from waste gases

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Dust Conveyor System

Desulphurisation System

Dust conveyor system transports the particulate matters in the hoppers to a designated area

Desulphurisation is the process of removing sulphur dioxide from industrial waste gas

De-NOx System

De-NOx is the process of removing mono-nitrogen oxide from the industrial waste gas

Hybrid Dust Collector

Our Key Products And Waste Gas Solutions

Utilises a combination of technologies i.e. ESP & Baghouse

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Customer Base

Major customers comprise contractors and end-users who are involved in industries such as power generation,

steel, cement and chemicals manufacturing

Diversified Customer Base

Power Generation

Cement Factories Chemical Plants

Iron and Steel Mills Paper Mills

Mining

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Customers are mainly state-owned enterprises, companies listed in China’s stock exchanges and large scale

private enterprises

Main customers are from steel mill, power generation and chemical industries.

Focus on steel mill and power generation in future

Existing Customers

Revenue by customer type

1H2013

1H2013 total: RMB 150.9m FY2012 total: RMB 409.1m

FY2012

Customer Base

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Production Facilities

Current production facility - Fujian

Location: Longyan Economic Development District,

Longyan City, Fujian Province, PRC

Land area (m2): 46,572

Gross Production Area (m2): 13,684

Future production facility - Fujian

Location: Longyan Economic Development District,

Longyan City, Fujian Province (Adjacent to existing

leased production facility)

Land area (m2): 16,536

Gross Production Area (m2): 12,520

Estimated Completion Date: Dec 2013

New production facility - Anhui

Location: Bengbu Industrial Park, Huishang District, Bengbu City,

Anhui Province, PRC

Land Area (m2): 193,493

Gross Production Area (m2): 60,000

Completion Date: Aug 2013

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Recognitions and Awards

Aug

2012

Nov

2010

Apr

2010

Jan

2012

Oct

2010

Apr

2009

Fujian Province Reputable Brand

Top 10 Chinese Environmental

Protection Excellent Enterprises China Air Pollution Administration and

Implementation Knowledge Brand

Longyan City Reputable Brand Top 10 Major Industrial

Enterprises in Longyan Economic

Development Zone

Top 10 Major Industrial

Enterprises in Fujian Province

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Research & Development

Registered patents: 20

Patents registration in progress: 8

High/New Technology Enterprise – enjoys 15% concessionary income tax rate (standard income

tax rate: 25%)

Announced the setting up of a JV Company with College of Engineering, Peking University

(China) to co-owned the technologies – including PM2.5 ultrafine particles removal technology,

power plants’ residual heat recovery and recycling technology, solid waste treatment technology)

(September 2013)