Investor Factsheet (JNUE 2011)

http://www.jutal.com/ Stock code: 03303.HK

An Integrated Oil and Gas Equipment Manufacturer and Professional Technical Services Provider
Company Profile Company Advantages Enhance integrated capabilities by introducing advanced technologies and intensive R&D Expand production capacity and upgrade facilities to meet increasing market demand The steady growth of the oil and gas industry and the active overseas expansion of the Chinese oil companies create a favorable environment for the Company Experienced management and professional team Company Information

Founded in 1995, Jutal Offshore Oil Services Limited (Jutal) is an integrated oil, gas and water processing equipment and technical services provider offering customers with international leading-edge technology in the oil and gas and shipbuilding industries.

Major shareholder Wang Lishan (Chairman) 272,212,000 shares (54.65% of the issued share capital)

Share price: HK$0.81 Capitalisation: HK$458 million P/E ratio: 4.95 P/B ratio: 0.61x

Data as at 20 June 2011

Business Model
Oil & Gas Facilities and Processing Equipment Manufacturing Offshore Oil and Gas Technical Support Services
Platform and drilling RIgs Oil, gas and water process equipment Subsea production system Percentage of turnover One-stop oil and gas equipment, solutions and technical services

65%
Engineering

Platform, oil & gas equipment Manufacturing and upgrade Maintenance Modification

19%

Manufacturing

Shipbuilding Technical Support Services

Specialized in manufacturing of the jacking legs of drilling rig Commissioning of drilling rig and ship Tank coating

Installation and commissioning

15%
On-site services

Located in the Equipment Manufacturing Area of Gaolan Port Economic Zone in Zhuhai with a total floor area of 400,000 sq.m. First phase fabrication facility with wok shops, warehouse, office, and with a total floor area of approximately 70,000 sq.m. completed and operational Has a complete capability in manufacturing of oil, gas and water processing skid equipment Construction of Second Phase facilities including a skidway and a wharf are ongoing, aimed at creating base for building a larger oil and gas facility

Manufacturing base in Zhuhai

Joint venture -Penglai Jutal

Second Phase construction site has a total floor area of 470,000 sq m, a private wharf 700 m long and 11 m deep, and four skidways of 6000 to 30,000 tones Provides professional services in the area of international marine engineering. Its products include jackets, platform, topside modules, single point mooring and FPSO vessels

Renowned Customers

CACT CACT Operators Group

ConocoPhillips China Inc.

China Petroleum Engineering & Construction (Group) Corp

Huge Growth Potential of Oil and Gas Market

Demand for oil and gas has kept growing. Chinas Twelfth Five-Year Plan strongly supports development of offshore oil and gas fields Chinas production capacity of gas has increased by 3.40 billion m3 to 100 billion m3 in 2010 Annual oil consumption in China is expected to grow by more than 5% to 427,000,000 tonnes. Driven by strong economic growth, consumption of refined oil will increase from approximately 216 million tonnes this year to 286 million tonnes in 2015, and is projected to further increase to 336,000,000 tonnes in 2020 Increase in oil consumption of China in 2010 will be mainly attributable to fields During the Twelfth Five-Year Plan period, investment in construction and development of offshore oil and gas fields in China is estimated to reach RMB250 billion to RMB300 billion Three largest oil companies actively explore business opportunities in the development of overseas oil fields Global demand for oil field equipment will reach US$85 billion in 2012. The growth rate accelerated after the slowdown and adjustment in 2009 Overseas markets are expanding. The Group secured overseas oilfield projects from Chinas three largest oil companies, CNPC, Sinopec and CNOOC and will provide oil and gas separation equipment which may be used in offshore waters in Brazil, China, the Middle East, Kazakhstan and West Africa Offshore oil and gas equipment is used in upstream petroleum and petrochemical industries. With high requirements for technology and added value, and with strong market stickiness, oil and gas equipment market is expected to surge in light of the limited global supply

Strong Market Demand Drives Rapid Growth in Oil and Gas Equipment Business
Turnover from fabrication of oil and gas facilities and oil and gas processing skid equipment business in 2010

27.32%

RMB278 million

Future growth drivers

Prepare to capture the oil and gas equipment market

Enhance R&D and engineering capabilities and build core competitiveness

Expand production facilities and boost production capacity Build Second Phase of Zhuhai manufacturing site, including wharf and skidway, upgrading capacity aiming to undertake larger oil and gas equipment construction projects

Develop new business and bolster marketing efforts Strengthen marketing efforts Actively develop new business in providing conventional services and solutions Establish branches in Beijing, Chengdu and Yantai Actively enhance customer relationships in the Middle East

Improve product quality and service support

Introduce patented technologies and enhance R&D capability Expand engineering department for better project support

Enhance staff training and recruit more professionals Implement strict QA to maintain top product and service quality

Solid Financial Condition

(RM B000)
Turnover
Fabrication of oil and gas facilities and oil and gas processing skid equipment Provision of technical support services for offshore oil and gas projects Provision of technical support services for shipbuilding industry Others

Contacts for Investor Relations

2009
396,111
218,324 108,235 60,404 9,148

2010
428,066
277,962 82,084 66,340 1,680

Change(%)
+8.07%
+27.32% -24.16% +9.83% -81.64%

Jutal Offshore Oil Service Limited

Asistant President: Jin Yan Email:jinan@jutal.com Manager of Investor relations: Yao Xuanyi Email: yxy@jutal.com Tel: (86) 755 2685 0472

Strategic Financial Relations(China) Limited

Senior Consultant: Marcus Keung Email:marcus.keung@sprg.com.hk Tel:(852) 2114 4967 Senior Associate: Wing Ho Email:wing.ho@sprg.com.hk Tel:(852) 2114 4947

Gross profit (GP margin) Profit attributable to owners (NP margin) Earnings per share - basic Gearing ratio

89,978(22.72%) 66,706(16.84%) RMB0.1339 28.73%

95,831(22.39%) 67,472(15.76%) RMB0.1355 20.27%

+6.50%(-0.33ppt) +1.15%(-1.08ppt) +1.20% -8.46ppt