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2008/09 Annual Results July 2009

2008/09 Annual Results July 2009. *. Stock Code: 852. * For identification purposes only . IMPORTANT: The following forms part of, and should be read in conjunction with, the other material in this presentation.

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2008/09 Annual Results July 2009

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  1. 2008/09Annual Results July 2009 * Stock Code: 852 * For identification purposes only

  2. IMPORTANT: The following forms part of, and should be read in conjunction with, the other material in this presentation. THIS PRESENTATION IS BEING FURNISHED TO YOU, THE RECIPIENT, SOLELY FOR YOUR INFORMATION AND NO PART OF THIS PRESENTATION MAY BE REPRODUCED (IN WHOLE OR IN PART) OR REDISTRIBUTED OR DELIVERED OR TRANSMITTED DIRECTLY OR INDIRECTLY TO ANY OTHER PERSON OR PUBLISHED FOR ANY PURPOSE, ANYWHERE IN THE WORLD (INCLUDING THE JURISDICTION IN WHICH YOU RECEIVE THIS PRESENTATION), WITHOUT THE PRIOR WRITTEN CONSENT OF THE COMPANY AND CHINA EVERBRIGHT CAPITAL LIMITED. BY ATTENDING THIS PRESENTATION, THE RECIPIENT AGREES TO BE BOUND BY THE TERMS AND LIMITATIONS SET OUT HEREIN. Information in this presentation has been provided by STRONG PETROCHEMICAL HOLDINGS LIMITED (the “Group”). Information provided in this presentation is strictly confidential and is the property of the Group. The recipient agrees that such information is to be treated with strictest confidence and that it shall assume any and all liability should such confidentiality be breached. This presentation is not intended to and does not constitute investment advice. The recipient agrees that the information contained herein shall be used solely in the context of the evaluation and not for any other purposes, commercial or otherwise. This presentation or any material provided herein does not constitute or form part of a prospectus or other offering document or an offer to subscribe for or purchase or a solicitation of an offer or invitation to subscribe for or purchase any securities, and neither this presentation nor anything provided herein shall form the basis of or be relied on in connection with, or act as an inducement to enter any contract or commitment whatsoever. Any decision to purchase or subscribe for securities of the Group must be made solely on the basis of information contained in the final prospectus or other offering circular that may be issued by the Group in connection with such offering. No representation is made by the Group in respect of any information in this document, except as contained in such prospectus or offering circular. Neither the Group nor China Everbright Capital Limited accept any liability whatsoever for any decisions taken based upon this presentation. This presentation contains certain forward-looking statements with respect to the financial condition, results of operations and business of the Group, the plastic processing machinery industry and certain of the plans and objectives of the management of the Group. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results or performance of the Group to be materially different from any future results or performance expressed or implied by such forward-looking statements. Such forward-looking statements were based on assumptions regarding the Group’s present and future business strategies and the political and economic environment in which the Group and its subsidiaries operate currently and will operate in the future. Reliance should not be placed on these forward-looking statements, which reflect the view of the Group’s management as of the date of this presentation only. No representation or warranty, express or implied, is made with respect to the information or opinions herein as to its accuracy or completeness. Information and opinions contained in this presentation are provided for reference of the recipients only and are not to be relied upon as authoritative. All estimates and opinions contained herein are subject to change without notice and are not intended to provide the sole basis of any evaluation of the securities discussed herein. Any reference to past performance should not be taken as an indication of future performance. Neither the Group, China Everbright Capital Limited nor any of their respective subsidiaries, affiliates, controlling persons, directors, officers or employees, shall be in any way liable or responsible, directly or indirectly, whether expressly or by implication, in contract, tort, by statute or otherwise for the contents hereof or any loss howsoever arising. This presentation may only be distributed to persons who are “professional investors” within the meaning of the securities and Future Ordinance (Cap.571) of Hong Kong and any rules made thereunder. Disclaimer

  3. Company Overview • Strong Petrochemical Holdings Limited (“Group”) is an oil trading company specialized in trading a range of oil products, including crude oil, petroleum products and petrochemical products, and is one of the approved Oil Products suppliers of major State-owned Licensed Import Agents • The Group procures trading products from Oil Majors and other international oil trading companies, and mainly sold crude oil and petroleum products to the Five State-owned Licensed Import Agents in China. Leveraging on its rich experience in oil trading and extensive network, the Group is able to complete in its niche of satisfying the immediate purchase demands from the Five State-owned Licensed Import Agents by supplying oil products of different varieties and specifications as required within a short time frame • Taking into account the large amount transacted per shipment and the fluctuating market prices of oil products, the Group developed its trading business with prudent financial and risk management policies, with an aim of minimizing its financial and operational risks • The Group has started to invest and develop storage business for oil products since 2007, providing strong support for the growth of oil trading business

  4. Agenda • Accomplishments • Financial Overview • Business Overview • Future Plans and Development Strategies

  5. * Accomplishments

  6. Announcing of the 2008 annual results withnet profit surged 255.4% to reach HK$329m July 2009 The credit facilities granted has increased to approximately HK$2,551 million May 2009 Accomplishments EVENT DATE Became the first company listed on main board of HKEx on 2009 January 2009 Acquireda single hulled oil tanker at the consideration of US$24,000,000 (equivalent to approx. HK$187,200,000) June 2009

  7. * Financial Overview

  8. Revenue by Trading Product Types HK$ million Crude oil Petroleum products Petrochemical products 5,992 5,139 4,211 107.7 Year ended 31 March

  9. CAGR 55.8% Net Profit HK$ million Year ended 31 March

  10. Consolidated Income Statements

  11. Utilization of IPO Proceeds

  12. * Business Overview

  13. Strong Market Demand • The drop in oil price led to a surge in demand over the PRC market • The quantity of crude oil sold amounted to 8.2 million BBL which was 2.6 million BBL more than previous year • The decline in trading of petroleum products was attributable to the decrease in demand • With continuous effort in developing the petrochemical market, the Group has expanded its customer base and revenue sources to Asia region Number of shipment Petroleumproducts Petrochemicalproducts Crude Oil BBL or MT 32 26 Year ended 31 March

  14. Bank Facilities • The global credit crunch resulted from the financial tsunami since September 2008 had caused corporations around the world difficulties in securing their credit facilities. • The Group was left intact and not adversely affected by such credit-tightening measures • The total credit facilities granted has increased by approximately HK$835 million from HK$1,716 million as at 31 March 2008 to HK$2,551 million as at 10 July 2009 • The increase of credit facilities not only elevated the trading capability of the Group, but also represents confidence from the financial institutions to the Group, and henceforth the soundness of the Group’s financial position 13

  15. Acquisition of Oil Tanker • Completed the acquisition of a single hulled oil tanker on 29 June 2009 at a consideration of US$24,000,000 (equivalent to approx. HK$187,200,000) • With a gross tonnage of approx. 142,639 metric tons and deadweight of 265,243 metric tons • Approx. 2/3 of the capacity to be used as a floating storage facility for self storage of oil products, while the remaining capacity will be leased out to external customers • Strengthens: • Strengthens and facilitates oil productstrading business • Broaden revenue base • Save storage expenses forself storage of oil productsProvide value addedservices to our customers

  16. * Future Plans andDevelopmentStrategies

  17. Enhancing sales and marketintelligence capabilities Strengthening relationshipswith customers Investing and developingPRC storage business Acceleratethe growth ofrevenue andprofits Expanding product types Selling oil products directlyto customers in the PRC Driving Growth Strategies Capture new opportunities in the market

  18. 3 5 2 Investment Highlights 1 Experienced and knowledgeable management team Established relationships with key counterparties Established relationships with and support from key bankers 4 Prudent financial and risk management policies Niche trading strategy

  19. Established Relationships withCounterparties and Bankers Possesses agood reputationinthe industry Established close relationships with counterparties including the Five State-owned Licensed Import Agents Strong balance sheet and solid track record, which also ensures support from key bankers Allows greateraccessto credit facilities 19

  20. Prudent Financial and Risk Management Policies Employ a relatively conservative trading policies which confirm in separate agreements with customers and suppliers within one month 1 Maintaina healthy workingcapital position Reduce funding needs for trading ofa shipment to only the margin depositspledged with banks for the issuanceof letter of credit 2 Adopt strict background and creditreview procedures for new customersand suppliers 3 Carry out hedging activities and devise acomprehensive risk management policy toevaluate and monitor the hedging activities 4

  21. Explore trading opportunitieswhich appear from time to time Satisfy the immediate and unplanned purchase demandsfrom the Five State-ownedLicensed Import Agents Prompt Decision-making Capabilityand Niche Trading Strategy Prompt Trading Decisions Niche Trading Strategy • Focus on certain oil productswith market potentialin the PRC • Focus on non-mainstreamcrude oil

  22. Mission To become the most competitiveoil products trading companyin the niche market in PRC 21

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