China EnerSave?s vision is to become a major provider of renewable energy in Asia. The Group?s aim is to own and operate 20 power plants within the next 4 years.

The Group?s current focus is on the China market, where demand for electricity has been rising in tandem with continued growth of the country?s industrial activity and living standards.

Within the power industry, the Group?s strategy is to rapidly build up its market share in the biomass power segment to capitalize on economic incentives provided under the China Renewable Energy Law, which came into effect on 1 January 2006 to encourage the development of renewable energy power plants. According to the China Energy Research Institute and Energy Bureau of NDRC, BIREC 2005, China is targeting to have a total installed capacity for biomass power of 5 GW by 2010, and 20 GW by 2020.

Since 2006, the Group has embarked on the development of three 24MW biomass power plant projects in China. The new biomass power plants are expected to continue expanding the Group?s sources of revenue and earnings as they become operational. The construction of the first two biomass plants is expected to complete in FY2008 while the third in FY2009.