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September, 2010 中国可利电气有限公司 China Keli Electric Company Ltd Investor Presentation (TSX-V: ZKL) Private & Confidential.

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Presentation on theme: "September, 2010 中国可利电气有限公司 China Keli Electric Company Ltd Investor Presentation (TSX-V: ZKL) Private & Confidential."— Presentation transcript:

1 September, 2010 中国可利电气有限公司 China Keli Electric Company Ltd http://www.zkl.cc Investor Presentation (TSX-V: ZKL) Private & Confidential

2 2 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. China Keli Electric Company Ltd (TSXV: ZKL)

3 3 Who are we 中国可利电气有限公司 China Keli Electric Company Ltd. China Keli Electric Company Ltd (TSXV: ZKL) 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”

4 4 Company Profile: China Keli Electric Company Ltd 中国可利电气有限公司 China Keli Electric Company Ltd. ProfileThrough 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 China Keli Electric Company Ltd (TSXV: ZKL) CAD$MM 2008 – 2010 CAGR = 11.3%

5 5 Company Profile: China Keli Electric Company Ltd 中国可利电气有限公司 China Keli Electric Company Ltd. Corporate Structure Over 180 employees in total across all departments 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 18,000m 2 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 China Keli Electric Company Ltd (TSXV: ZKL)

6 6 Key Management 中国可利电气有限公司 China Keli Electric Company Ltd. NameTitleExperience 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 China Keli Electric Company Ltd (TSXV: ZKL)

7 7 Key Management 中国可利电气有限公司 China Keli Electric Company Ltd. NameTitleExperience 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 Independent Director 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 Independent Director Senior Chinese lawyer Over 10 years of experience in company law, securities and foreign investment Wu Jian Wen Independent Director 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 China Keli Electric Company Ltd (TSXV: ZKL)

8 8 Market Snapshot: Demand for Electricity 中国可利电气有限公司 China Keli Electric Company Ltd. 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 2010 2.Source from: “2009-2010 Report on China Electric Power Industry” by 168report China Keli Electric Company Ltd (TSXV: ZKL) 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

9 9 Transmission and Distribution Equipment Industry 中国可利电气有限公司 China Keli Electric Company Ltd. China Keli Electric Company Ltd (TSXV: ZKL) 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

10 10 Structure & Shares Distribution 中国可利电气有限公司 China Keli Electric Company Ltd. 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% Shares Distribution Shares Outstanding:89.95Million 52w High/LowC$0.65/C$0.26 Market Capitalization:C$26.99Mil P/E:13.95x China Keli Electric Company Ltd (TSXV: ZKL)

11 11 Growth Strategy 中国可利电气有限公司 China Keli Electric Company Ltd. 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 China Keli Electric Company Ltd (TSXV: ZKL) Opportunistically look at strategic acquisitions in the same market sector (consolidation and roll-up play)

12 12 Proof of Strategy 中国可利电气有限公司 China Keli Electric Company Ltd.  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) China Keli Electric Company Ltd (TSXV: ZKL) Recent Development Source from: Company’s press release

13 13 Selected Financials: Income Statement 中国可利电气有限公司 China Keli Electric Company Ltd. CAD/RMB = 6.5792 FYE – APR 30 CAD$ 200820092010 Vs. 2009 Revenue $ 9,056,189 $ 9,543,745 $11,630,71321.9% Gross Profit $ 2,353,544 $ 3,810,055 $4,739,28624.4% EBITDA $ 1,064,108 $ 2,231,481 $2,851,58327.8% Net Income $ 652,389 $ 1,483,017 $1,927,86330.0% Source from: Company’s 2009, 2010 Audited Financial Statements 2010 Profitability Ratios Gross Profit Margin40.75% Net Profit Margin16.58% China Keli Electric Company Ltd (TSXV: ZKL) CAD$000

14 14 Investment Highlights 中国可利电气有限公司 China Keli Electric Company Ltd. 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 China Keli Electric Company Ltd (TSXV: ZKL)

15 15 中国可利电气有限公司 China Keli Electric Company Ltd. Thank You Mr. Cheong Lou Meng Director & CEO Tel: (86) 13926991010 Email: lmcheong@zkl.cc Mr. Kelvin Dong Zhang CFO Tel: (86) 13911511601 Email: kzhang@zkl.cc Michael Raymont Independent Director Tel: (403) 3893488 Email: mraymont@zkl.cc China Keli Electric Company Ltd (TSXV: ZKL) Contacts


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