CHINA NEW ENERGY

China New Energy Limited was incorporated in Jersey in 2006 and acts as an investment holding company being the sole shareholder of the Group’s principal trading entity Guangdong Zhongke Tianyuan New Energy Technology Co. Ltd. ("ZKTY"), a wholly foreign owned enterprise incorporated in the PRC in 2006. The origins of ZKTY’s activities dated back to 2002, with the formation of Guangdong Zhongke Tianyuan Regeneration Resources Engineering Co., Ltd (“GZTY Regeneration Resources”), which was formed as a result of a spin-out from Guangzhou Institution of Energy Conversion ("GIEC"), Chinese Academy of Sciences ("CAS"). Certain of the Directors and GIEC CAS, through an investment holding company, were founding shareholders of GZTY Regeneration Resources.