Chairman's Message

Dear Investor,

As Chairman and on behalf of the Board of Directors of both Evernal Energy and Foshan Huaheng, I would like to thank you for your interest in our Group.

The China, and more specifically the China energy investment proposition, has been well detailed in numerous market commentaries over the last decade or more.

Nevertheless, doing business in China is difficult and investing in China can often be speculative. China’s Energy sector is fragmented and volatile, with the regulatory environment changing frequently and with very little prior notice. This is the business landscape our Group has successfully navigated for over 20 years.

Our Group enjoys a sustainable foundation for long term organic growth due to the integrated nature of its business.  However, there are further investment opportunities currently open to our Group that are difficult to ignore.

The Directors believe that the current investment opportunity available to our Group is unique in the market. An investment in our Group is a growth story that gives each investor exposure to our corporate strategy of:

(a) continuing the development of our energy producing asset base located in Southern China by developing further hydro and gas-fired power production, in order to maximise cashflow;

(b) continuing to efficiently and opportunistically undertake our coal procurement activities in the medium term, and improve operational performance;

(c) developing a Marquee LNG Terminal Project located in Southern China through a joint venture with one of China’s largest State Owned Enterprises operating in the energy sector, which will be the first LNG Terminal Project in China developed in part by a local private company. This opportunity also includes a right for our Group to also develop a downstream LNG Power Station; and

(d) further diversifying into clean and renewable energy assets including through the utilisation of Flue-gas desulfurization (FGD).

The Directors intend that the proceeds invested into the Group will primarily be used to implement the LNG Terminal Project, develop further clean and renewable energy assets and provide additional working capital to enhance our existing profitable operations.

I hope you enjoy learning more about our Group.

Thank you again for your interest.

A signature

Mr Chau Kim Wa
Evernal Energy / Foshan Huaheng