Capturing Energy for Profit

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? ? ? ?YASHENG GROUP
Presented by Yasheng Group Bio-Fuels Asia June
7th , 2006
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Capturing Energy for Profit

• The Development of new by-product from
  existing industries resulting in alternative fuel
• Case Study producing methanol as by-products
  of energy production developing new
  environmentally safe cost efficient products
• Case study producing a fuel and bio products
  from biomass
• Transitioning traditional industries into
  modern sustainable by reinventing systems

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YaSheng Group Briefing

• Agricultural, Biotechnology, Chemicals
• Located in North West China GanSu
• 136 plus operating Companies
• 15,000 employees
• Control vast amounts of Rich Land and Natural
  Resources
• Exporting to Europe, U.S., South America, Africa,
  Middle East, Asia

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Traditional Industries
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Agriculture Segments

• Animal Husbandry
• High Tech Fruit Vegetables
• Wine, Spirits, Beverages
• Grains, Hops, Barley, and Seeds
• Herbs and Food Additives
• Value Added Agro By-Products
• Commercial Agro Nursery Seed Bank
• Agro Industrial Systems

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Chemicals Segments

• Industrial Salts and Mirabilite
• Sodium Solfate Sodium Sulfide
• PVA engineered Fibers
• Chlor-Alkali Related Chemicals
• Fertilizers and Natural Pesticides

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Biotechnology Segments

• Pharmaceuticals
• Vaccines
• Chinese Herbal Medicines
• Bio Research and Development
• Agro Gene Bank for RD
• Yasheng Science and Technology Broadcasting
  Universities

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Trademarks Patents

• 8 patents covering the following technologies
• Board-type evaporator technology
• Saline Algae carotene extraction technique
• Low-carbon low-iron sodium sulfide production
  method
• Micro-cloning DNA technology in producing drugs
  for blood vessel related
• diseases
• A plant-based herb to treat AIDS infected
  patients using human lysozyme method
• Sodium sulfide granulation production line
• Vaccine for FMDV (Foot Mouth Disease Virus)
  technology
• Examination method for FMDV using a recombinant
  geno-technology
• Trademarks
• The Company also holds more than 52 registered
  trademarks, including Yasheng, TiaoShan,
  HengXin, ZhongSheng

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Yasheng Science Biotech University

• Applied Agriculture Tech

• Advanced Biology

7 Research institutes

• Trans-Genetic

• Chinese Medicine

• Information Technology

• New Biological Material

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Yasheng Broadcasting Continue Education College
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Transforming a Successful Chinese Conglomerate
to a recognized Agricultural, Biotech, Chemical
Global Powerhouse

• Exceed Surpass International Standards
• Modernized Competitive Organizational
  Structure

• Actively seek, adopt and apply new technology and
  innovations to key business lines
• Encourage Higher Education for Administration at
  all levels through specialty training Yashengs
  Educational Institutions
• Keep up with growing domestic demands and expand
  output to targeted high end international markets

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Transition for Expansion
The Development of new by-product from existing
industries resulting in alternative fuel

• Pioneer new fields of expansion, maintain
  existing business, coordinate strategic
  development of Agro, Bio, Chemical Segments
• Remodeled portfolio focusing on profitable
• products with growth potential
• Integrate a series of technology innovations
  improvements, integrate maturing RD programs
• Finalize steps in consolidating strategically
  organizing existing subsidiaries, divisions,
  segments, departments and product lines.

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Innovative Expansion
Agriculture

• Biomass
• Forest Materials
• Seeds/Oil
• Bio By-Products
• Feedstuff for Husbandry

The Development of new by-product existing
industries resulting in alternative fuel
Biotech

• R D Institutions
• Global Green Projects
• Cooperative Partnerships

Chemicals

• Methanol
• Ethanol
• Bio-Oils
• Specialty Chemicals

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Agriculture

• Expand land, technology, cooperation's to meet
  national global demands for feedstock
  materials
• Establish forest propagation center, fast growing
  forest, production of forest materials, and
  delivery systems
• Increase technology, yields, seed crushing
  facilities, develop Bio Oil Products
• Utilize Bio-Mass, Forest Materials, Bio Oils to
  develop other alternative fuels and environmental
  friendly products
• Utilize Land agro materials to provide
  ingredients for livestock feedstuff

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Chemicals
Methanol

• Continue to develop Methanol Production Solutions
  that capture energy to create alternative fuel.
• Seek Expansion through industry cooperation's
• Meet capacity demands for specialty bio oils
• Develop refining partnerships for bio-diesel
  by-products
• Build Ethanol bio refinery and by products
• Work with Chinas Policy to meet future demands
• Seek capital technology based partnerships to
  expand
• Utilize Chemical Base to develop new products

Bio-Oils
Ethanol by-products and Fuels
Specialty Chemicals By-Products
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Biotechnology
YaSheng Universities

• Applied Agriculture Tech
• Advanced Biology
• Trans-Genetic
• New Biological Material

Utilize internal research and development
resources to develop Total Quality Standards in
innovating the Alternative Fuels industry
Global Green Projects

• Embrace Global projects that work to preserve
  the planets environment
• Work with industry experts and organizations to
  accelerate the transition of existing industries
  to profitable business models

Cooperative Partnerships
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The Development of new by-product from existing
industries resulting in alternative fuel

• Research and Development institutions and
  cooperation's
• Ability to implement technology to produce Agro,
  Chemical, Biotech Products
• Transportation and Delivery Network
• Record of Success to bring large scale industrial
  projects to profitable operations
• Nationally and Provincial recognition to lead
  policy driven projects to improve the economy,
  environment, and overall well being of the
  people
• Hold rights to vast amounts of land, natural
  resources, operational assets, and qualified
  staff to continue to lead and expand

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Producing methanol as a by-product from Existing
Industries

• 600,000 Ton Per Year Methanol Production
  Facility
• By Utilizing a process of Metallurgy Exhaust
  Gases
• Capture the exhaust gases from
• Converters
• Blast furnaces
• Coke ovens

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Strategic Cooperation's

• Yasheng Group
• Jiquan Steel Company
• Qinghai Sebei Gas Field
• China National Petroleum Corporation
• Green Model City Plan of Jiayuguan City,
  Provincial, National Governments

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Purification, Condensation, and Conversion of
Gases to Refine Methanol

• Purification of natural, coke burner, blast
  furnace, converter gases
• Condensation and Conversion of synthetic and
  recycling gases
• Process to Refine and Synthesize Methanol

conversion
Discharged gas
purification conversion Natural gas
purification
Coke oven gas
1st purification
conversion
condensation
Synthesizing methanol
2nd purification
rectifying
purification
condensation
Gas from converter
methanol
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Investment Environmental Benefits
Compared with production of methanol on the same
scale / similar technology our efficiency produces

• Investment decreased by 38,
• Cost of powering production decreases 31
• Consumption of raw materials decreases 22.6,
• Toxic emission reduced by 22.6.
• Utilize a by-product of the production facilities
  to supply 1.4 billion cubic meters of liquid gas
  to power other energy demands

Capturing Energy
A by product made from the pollutant gases
produced by the blast furnaces that converts
into a more enviromentally safe Fuel !
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Execution Timeline

• 5 month for the Feasibility Research
• Assessing environment impact and Engineering
• Final Planning Review 2 Months
• Construction Period 30 months .
• 37 months from draft to completion
• Projected operations 2009

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Market Demand North WesternRegion China Methanol
Consumption

• 4,616,800 tons
• 5,731,600 tons
• Expected to exceed 7,000,000 tons.

2003
2004
2005
Revenue

• Full Operation average annual sales expected
• to exceed 100M USD
• With average profit margin of 25

Capitalization

• The total investment up to 224M USD through
  Partnerships, Cooperation's, Government
  Sponsored Support

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Producing a Fuel and Bio Products from Biomass
APPLICATION OF YASHENGS BIOTECHNOLOGY

• Agronomics
• Plant Sciences
• Integrating Genetics to improve Biomass Residue
• Utilize cooperation's to adopt technologies
• High end fruit orchards, alfalfa feed, corn,
  cotton, rapid-growth high-yield forest,
  seedlings, herbs other bio mass products
  foodstuff
• Create biomass fuel and bio particles by
  utilizing branches, leaves, seeds, castoffs,
  straw, oils, other technologies

PRODUCTS
PROCESS
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Biomass Vision

• Set up Biomass Energy Complex
• Diverse Feedstock Capabilities
• Establish Quality Consistent Feedstock Bases
• Re-invent Harvesting Processing Systems to meet
  needs of volume production
• Dedicated Bio Mass Crops for feedstock supply
• Improve Rural Economy and Environment

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VisionProducing Bio Fuels and Bio Friendly
Products from Biomass

• Construct diverse high tech bio-fuels refining
  production plant
• Create substitute for coal in the countryside and
  factories
• Redevelop baron lands for capitalization and
  reforestation
• Create model operations for bio fuels and high
  end bio products

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YaSheng Possesses the know how for reclaiming
the land Gobi Desert

• Biological Power GPIT (Gene Phenotype Induce
  Technique)
• freeze-resistance,
• oxidation-proof
• improvement of photosynthesis,
• enhancing the metabolism
• Trial Tested with prominent achievements
• Dieses, pest, and draught resistant

• Yamit water-saving drip irrigation systems
  Yasheng Agro industrial Systems

• ability to lower cost of water, fertilizers,
  pesticides from high tech irrigation with
  efficient applications
• create green belt of agronomic products shelter
  shrubberies on the edge of the desert

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High End Products while producing Biomass and
Reforestation
These products include high end fruit orchards,
alfalfa feed, as well as rapid-growth high-yield
forest products

• Apricots Pears
• Alfalfa for Feedstuff and Fertilizers
• Chinese Herbs as Wind Shelter
• Agriculture Residues
• Wood Residues

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Fast Growing Timber High Yeild Poplars

• High Tech Fast Growth Forest Zone
• Propagation and development of seedlings
  Center
• Plant annual harvest Cycle base of
  fast-growing timber
• 6 Year for Mature Harvest for lumber
• Produce a high-grade raw material
  
  
• Provide Forestation for 1 of the 3 major
• Green Belts in China
• Provides wind shelter for other Agro
  Operations

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Particle Molding to create Fuel and Bio Products
from Biomass

• Cooperation's with Qinghua University
• Biomass particles molding technique
• Particles molding technique to compress Straws,
  castoffs of wood, Branches, Leaves
• processing into raw materials for biomass fuel
• ethanol fuel, biomass diesel oil or biomass
  plastic
• efficient temperature process into carbonified
  energy

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Producing Fuels and Bio Products from Biomass

• YaSheng is 100 Commitment to growth
• Strategically forecasting Feed Stock Needs
• Bio-refinery Production by 2008
• Continue Cooperation's and Implement Expansion
  Programs
• Develop and adopt new technologies

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Transitioning traditional industries into modern
sustainable Business Concepts by Reinventing
Systems
FOCUS

• Coordinated Strategic Goals on local, provincial,
  national, global levels
• Implement Pilot Projects to expose Technical
  Barriers for constant improvements
• Expand RD Cooperation's Partnerships that are
  effective in achieving goals
• Establish Feasible System of Profitability for
  each line of business
• Environmental Impact on establishing a
  sustainable economic system

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Transitioning traditional industries into modern
sustainable Business Concepts by Reinventing
Systems
YaSheng is focused improving these areas over
the next 5 years
Agriculture

• Production of Quality High Tech Raw Materials
• Bulk Harvesting and Collection for Biomass
• Dry and Wet Storage for Bio Mass
• Reprocessing of Biomass
• Transportation of Biomass
• System Integration

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Transitioning traditional industries into modern
sustainable Business Concepts by Reinventing
Systems
Prepare Refining and Delivery Infrastructure to
meet future demands
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Grain for Green Project Chinas Develop the
West Strategy YaSheng The National Policy

• Rapid-Growth high-yield Forest Plantations,
  Orchards, Environmental friendly vegetation
• Accelerate the expansion of vegetation to create
• Sustainable economic environment
• modernize the structure of agriculture
• improve the economy for the rural areas
• solve ecological problems like wind erosion,
  desertification, water and soil erosion
• while creating profitable agro products

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Long Term Vision

• Lift Standards of Excellence Company Wide
• Implement Integrate Strategic RD Programs
• Reinvent Evolve existing industries to
  Alternative Energy products
• Seek Local, National International Cooperation
  Partnerships
• Grow economic benefits to rural areas expand
  operations to meet demands
• Cooperate with National Local Government on the
  creating a sustainable economic environment
• Establish a strong foundation for capitalization
  Investment for 5 10 year plan