Listed on the OTC BB: SNEN.

OB
Price 05-30-08: $2.8
52 Week Range: $1.60 - $5.25
Market Cap: $87.97 Mil
Shares Outstanding (as of 05-30-08): 31.42 mil
Revenues (ttm to 03-31-08): $30.61 mil
EPS (ttm to 3-31-08): $0.25
P/E (ttm to 3-31-08): 11.6
Fiscal Year ends September 30

Business Description
SINOENERGY CORPORATION (“Sinoenergy” or the “Company”) manufactures a number
of items for the natural gas industry, and processes, transports and distributes natural gas to
meet China’s increasing need for environmentally clean alternative energy. The Company is
a leading manufacturer of non-standard pressure containers, compressed natural gas (CNG)
filling station equipment and transportation vehicles, and vehicle fuel conversion kits, as well
as a developer and operator of natural gas processing and retail filling stations. The compa-
ny’s 659,000 square feet pressure container and CNG equipment manufacturing facilities
are located in Qingdao, Shandong province, the People’s Republic of China.

Investment Highlights
Positive Momentum in China’s CNG-Powered Vehicle Market - Strong economic
growth and rising income levels have increased demand for motor vehicles and transportation fuel
Revenue ($ millions) in China making it the second-largest energy user in the world. Vehicle related pollution is
24.73 a significant problem in China’s cities, prompting the Chinese government to aggressively
CAGR = 73.3% promote the use of CNG as an alternative fuel. The use of CNG as a fuel also significantly
16.54 reduces the cost of operating a vehicle. Analysts estimate that at current market prices,
12.39
switching from gasoline to CNG can reduce fuel costs for a bus or a taxi by more than 40%.
8.24
5.26 An industry projection made by PetroChina estimates that there will be more than 300,000
CNG vehicles and 1,000 retail CNG filling stations in China before the year 2010.
Cal 2005 Cal 2006 Cal 2007 6 Mnths 6 Mnths
3/31/07 3/31/08
Strong Profitable Growth - Sinoenergy’s net revenue for the first half of fiscal year
2008, ended March 31, 2007, was $16.54 million, a 215% increase over net revenue for
the six month period ended March 31, 2007. Gross profit for the first half of fiscal year
2008 increased 179% year-over-year to a record $7.63 million. Net income grew 252%
Gross Profit and Gross Margin ($ millions) to $5.16 million, representing earnings of $0.14 per diluted share for the first half of fiscal
14 56% year 2008.
CAGR = 63.0% 11.74
12 54%

10 52%

8
7.63
50%
Secured Natural Gas Supply - Sinoenergy has supply commitments for up to 400 million
6.48
6
4.42 48% cubic meters of natural gas per year. These commitments are expected to be sufficient to
4 2.73 46%
supply over 100 retail CNG filling stations, and will allow Sinoenergy to develop a CNG
2 44%

- 42%
wholesale and retail distribution network in Central and Eastern China.
Cal 2005 Cal 2006 Cal 2007 6 Mnths 6 Mnths
3/31/07 3/31/08
Good Visibility Through 2009 - Sinoenergy’s sales during the six months ended
March 31, 2008 were slightly more than the Company’s sales for the nine months
ended September 30, 2007. Sinoenergy expects its quarterly revenues for the quarter
ending June 30, 2008 to be from $8 million to $9 million. The Company expects its quarterly
Net Income ($ millions)
net income for the quarter ending June 30, 2008 to be from $2.8 million to $3.2 million.
5.63
5.16
Sinoenergy set revenue targets for its fiscal 2008 of $53 to $56 million, and an operating
CAGR = 51.3%
income target of $14 million to $15 million.
3.45
2.46
1.47
Rapid Expansion - Sinoenergy had eleven retail CNG filling stations in operation as of
May 5, 2008 and plans to have a total of 51 retail CNG filling stations operating before the end
of 2008. The Company recently received significant orders for natural gas transport trailers
Cal 2005 Cal 2006 Cal 2007 6 Mnths 6 Mnths
3/31/07 3/31/08 and CNG related items.

1
Industry Drivers

Positive Momentum in China’s CNG-Powered Vehicle Market

Abundant Natural Gas Reserves

China is rich in natural gas resources. The development of natural gas resources rapidly increased
during recent years because of improvements in geological exploration technologies. At the end of
2004, China had proven natural gas reserves of 4.38 trillion m3 in place, of which 2.77 trillion m3 were
of commercial value. Natural gas accounts for only 3% of fossil fuel consumption in China, compared
to 20% globally. Development of natural gas as a clean alternative fuel was made a priority in the
National Development and Reform Commission’s 11th five year plan. Officials predict that China’s
natural gas demand will reach 100 bcm by 2010, while 60 bcm was produced in 2006. By 2020, demand
is predicted to reach 200 bcm, while production is estimated to reach 140 bcm.

Expanding Natural Gas Infrastructure

The Chinese government has strongly encouraged State Owned Enterprises to invest aggressively in
the development of China’s natural gas distribution infrastructure. China’s main west to east natural
gas pipeline, which connects the interior Tarim basin to Shanghai, started transmission in October
2004 with enough capacity to supply 12bn m3 per year to 10 provinces in the eastern and western
regions of the country. Sinopec, one of the two largest producers of natural gas in China, is constructing
a long distance main pipeline, Puguang pipeline, which will be about 900 miles long, connecting
Sichuan Province to Shanghai. According to news from Sinopec, the pipeline will begin delivering
gas by the end of 2008 or early of 2009 with capacity of 12 billion cubic meters per year. A number
of major projects are planned or under construction including Sichuan-East pipelines, Russia-China-
India pipelines as well as liquid natural gas (LNG) plants to process imported LNG. The country’s first
LNG regasification terminal, in Guangdong province, received its first shipment of gas in June 2006.
A second LNG terminal, in the city of Xiuyu in Fujian Province, is scheduled for completion in 2008.

Rising Demand for Motor Vehicles Has Lead Motor Vehicles in China (Mill
35
to Rising Vehicle Related Pollution CAGR: 14.5%
30
27
Vehicle emissions are an important source of air pollution in 25
21
24

20 18
big cities. The growing number of cars and trucks through- 15
16

out China has led to much higher levels of atmospheric 10

nitrogen oxides and carbon monoxide throughout the 5

0
country, and the gases are especially high in urban areas. 2000 2001 2002 2003 2004 2
Source: CEIC, Credit Suisse Research

2
 Data from China’s Statistics Bureau show that none of the 47 major cities along China’s east coast
meet the highest standards set for air quality, and less than 40% of those cities meet the next
lower level of standards set for air quality. Of 338 cities monitored, only 112 cities reach the next
lower level of standards set for air quality, and 137 reach the next even lower standards set for
air quality, the lowest acceptable air quality standards, which means their air is severely polluted. To
address the environmental impact of China’s rapid development, the government recently stated in its
draft “China Medium and Long Energy Conservation Plan” that one of its ten most important energy
conservation projects is “to promote natural gas use for buses and taxis.”

Strong Government Support

In order to meet the energy needs of China’s growing economy, the Chinese government is aggressively
promoting the use of natural gas to take advantage of the country’s existing natural gas reserves,
reduce reliance on imported oil, and improve the quality of air in its cities. The current Five-Year
plan (2006-2010) emphasizes the development of clean energy sources, technological upgrade of
the Chinese energy industry and energy conservation. The government recently offered tax incentives
to foreign companies which invest in the natural gas processing business. These companies will
receive 100% exemption from income taxes for two years followed by three years of 50% exemption
from income taxes. After the exemption period ends, the income tax rate will be 15%. In Wuhan
city, Sinoenergy received government approval for the tax incentives, and the Company plans to
apply for tax benefits in the other areas in which it operates. Also, there is a proposed Fuel Tax
Regulation that will tax natural gas vehicles at half the rate of vehicles powered by gasoline or
diesel. Because CNG is a source of clean alternative energy and there is stong government
support for the use of CNG, Sinoenergy expects demand for CNG use in vehicles to increase in
the foreseeable future.

Inherent Advantages of Natural Gas

Natural gas powered vehicles emit 87% less nitrogen oxide, 70% less carbon monoxide and 25%
less carbon dioxide than gasoline powered vehicles. CNG use as an alternative to gasoline also
significantly reduces the cost of operating a vehicle – making CNG use attractive for bus, taxi and
fleet owners. At current market prices, switching from gasoline to CNG can save a bus or taxi more
than 40% of its fuel costs – significantly improving the economics
of running a vehicle and creating a short payback period for the
cost of conversion. With an environmentally favorable background
and economic advantages to using natural gas, growth in the
CNG-powered vehicle market will directly support the national
goals of reducing energy dependence on imported petroleum
and improve air quality in increasingly congested urban centers.
Macroeconomic factors provide a huge opportunity to deliver
significant value to Sinoenergy’s because the Company is well
positioned to play a leading role in helping develop the clean burning
CNG-powered vehicle market in China.

Corporate Overview

Corporate Organization - Sinoenergy operates four business segments: 1) CNG filling station
facilities design consulting, construction and storage transport, 2) manufacturing vehicle fuel conversion
kits, 3) manufacturing non-standard pressure containers, and 4) retail CNG filling station design, construction
and operation. With 55 years of experience in the pressure container industry and over 10 years management
experience in the CNG facilities and equipment manufacturing business, Sinoenergy is a leader in the
Chinese CNG infrastructure market and a participant in numerous parts of the CNG industry.

3
In the latest 6 months ending March 31, 2008, Sinoenergy generated 50.7% of its revenues from
CNG station facilities design consulting and construction and storage transportation, 25.0% of its
revenues from its vehicle fuel conversion kits business, 22.2% of its revenues from non-standard
pressure containers, and about 2.1% of its revenue from retail CNG filling station operations.

In April 2008, the Company received a $17.87 million (RMB 124.76 million) strategic investment
from a group of Chinese investors. Strategic investors acquired 24.95% of the Company’s subsidiary
Qingdao Sinogas General Machinery, which, after the Company went through reorganization, controls
the Company’s manufacturing business segments.

In April 2008, Sinoenergy Corporation reorganized its group structure to separate the Company’s
manufacturing business segments from the development and operation of retail CNG natural
gas stations.

4
Manufacturing Facilities - Along with its downtown Quigdao manufacturing facility,
Sinoenergy has a 22,000 square feet manufacturing facility for vehicle fuel conversion kits in
Jiaxing City, Zhejiang province. The Company rents 5,000 square feet of office space in Beijing
for its corporate headquarters.

Sinoenergy recently acquired Qindao Jingrun General Machinery Company and Qingdao Shan
Yang Tai Chemistry Resources Development Co.Ltd., a joint venture that owned a 1.1 million
square feet property. On March 31, 2008, the Company announced that it had leased its current
manufacturing facility in the center of the city of Qingdao and planned to move its operations to
Qindao Jingrun’s property located in an industrial development zone located outside of the city
of Qingdao. Sinoenergy will move its pressure container and CNG equipment manufacturing
facilities to this new location before the end of 2008.

CNG Station Facilities Design Consulting, Construction, and Storage Transport

The CNG filling station construction service business includes the design and construction of
CNG filling stations and installation of CNG filling station equipment. Because the number of
retail CNG filling stations in China grew rapidly during the last several years, Sinoenergy was
able to use its design and construction expertise to generate high gross margins
from 2005 through 2007.

The CNG storage transportation segment of the business includes the manufacture
of CNG transportation trailers. The company is one of the three companies which
have C2 and C3 licenses issued by the Chinese central government for designing
and manufacturing CNG transportation trailers.

In the CNG faciities design, contruction, and storage transport business,

Sinoenergy’s customers include Sinopec and CNPC as well as a number of
independent CNG filling station operators.

Vehicle Conversion Kits

A rapidly growing part of its business, Sinoenergy recently strengthened its position in the CNG
vehicle fuel conversion kits market by acquiring a controlling interest in Jiaxing Lixun Automotive
Electronic Co., Ltd, a leading designer and manufacturer of electronic control devices for alternative fuel
(CNG and Liquid Propane Gas) vehicles, including computer controllers, conversion switches,
spark advancers, tolerance sensors and emulators. Jiaxing Lixun is one of the largest manufacturers
and exporters of fuel conversion kits devices in China and has a wide customer base in Europe,
Russia, the Middle East and Southern Asia.

Non-Standard Pressure Container Segment

Sinoenergy’s non-standard pressure containers division manufactures a variety of pressure

containers for use in different industries, including the petroleum and chemical industries, the
metallurgy and electricity generation industries and the food and brewery industries. Sinoenergy
has extensive manufacturing experience in this business segment and a solid reputation for
high quality and reliable products. The Company holds A1 and A2 licenses issued by the
Chinese central government for designing and manufacturing pressure containers. Factors
which provide the Company a sustainable competitive advantage include its ability to make
custom pressure containers, its professional design team and a long history as one of the few
non-standard pressure container manufacturers in China.

5
In the Non-Standard Pressure Container segment, Sinoenergy has a wide customer base consisting of
more than 50 clients across mainland China in the provinces of Shandong, Shanxi, Hebei, Henan,
Anhui and Jiangsu. Its clients are in diverse industries, including steel, petroleum, chemical, metallurgy,
and electricity. No one client accounted for more than 10% of total revenues in 2006.

Wholesale CNG Processing and Retail Filling Station Construction and Operation

Sinoenergy is developing and operating a network of retail CNG filling stations throughout China.
The Company will deemphasize its construction services for third party operators to concentrate
on building and operating its own network of retail filling stations. Developing, owning and operating
retail CNG filling stations is expected to become the major part of the Company’s business.

The Company currently rents or owns the land rights for for its retail CNG filling stations in the cities
of Wuhan, Pingdingshan and Xuancheng.

In October 2007, the first two retail CNG filling stations were completed in Wuhan City, the
capital of Hubei province and the largest city in central China.

In November 2007, a third retail CNG filling station was opened in Xuancheng City, Anhui province.
Xuancheng City has a population of 3 million, with 1,000 buses and 2,000 taxis currently in use.
The Company plans to develop up to 10 retail CNG filling stations in Xuancheng City and its
surrounding area.

On March 19 2008, the Company reported that it had three CNG retail filling stations open and
operating. 16 stations had completed construction and were waiting for final government approvals
and 32 stations were in the planning or construction phase. All of the stations that were not yet
open and operating were expected to be operating, subject to government approvals, by the
end of calendar 2008.

On March 27 2008, Sinoenergy announced the opening of three new retail CNG filling stations
that were selling CNG. This brought the total number of stations opened by the Company to six
stations in Central and East China.

On May 5 2008, the Company announced that it opened a new retail CNG filling station and
completed the construction of another new retail CNG filling station.

6
 Experienced Management Team

Sinoenergy’s management team consists of 37 professionals, each with over 15 years of experience in
the design, production, marketing, technology or operations of CNG equipment and CNG filling stations.

Mr. Tianzhou Deng, Chairman and Director - Mr. Deng, one of SNEN’s co-founders, has been
Chairman of the company since June 2006. From 1999 to 2005, he was chairman of Beijng Sanhuan
Technology Development Co., Ltd. From 1997 to 1999, he was Team Leader at the Natural Gas
Vehicle Development Center of CNPC, previous to which he was an Engineer and Chief Engineer at
Jianhan, CNPC. Mr.Deng holds a MBA degree from China Science & Technology University and a
Bachelors degree from the University of Petroleum, China. Mr.Deng holds a senior engineer certificate
with professor rank issued by the Chinese government and is nationally recognized as a leader in
the alternative fuel industry in China.

Mr. Bo Huang, CEO & Founder - Mr. Huang has been CEO and Chairman of Sinogas since its start
in 2005. He is one of the co-founders of Sinogas. He was President of Beijing Sanhuan Technology
Development Co., Ltd., a company engaged in the development of natural gas conversion kits, from
2003 to 2005. Mr. Huang was Vice President of Chengchen Group, an investment and trading
company, from 1997 to 2003.

Ms. Lan Gu, CFO - Ms. Gu joined Sinoenergy in June 2008. She is a Canadian citizen and has over
ten years of audit, accounting and tax management experience. Before joining Sinoenergy, Ms. Gu
was a senior auditor responsible for planning and managing client engagements at Canada based
Lanno Torollenie LLP. Ms. Gu also was an audit leader at Deloitte Touche Tohmatsu CPA Ltd. in
Shanghai and an auditor at PricewaterhouseCoopers in Canada. Ms. Gu has a B.A. degree with
Honors in business with a concentration in financial analysis from York University, Canada. She is a
U.S. Certified Public Accountant and Canadian Chartered Accountant.

Mr. Anlin Xiong, Corporate Secretary - Mr. Xiong recently joined Sinoenergy as Vice President
in charge of the Company’s financing and investment activities. Mr. Xiong previously was a senior
manager at BOE Technology Group Co., Ltd., a leading Chinese LCD (Liquid Crystal Display)
manufacturer. At BOE, he was responsible for corporate strategy, technology, and intellectual property
planning and management. Mr. Xiong holds a MS in Electrical Engineering from the University of
Illinois at Urbana-Champaign, U.S., a MS in Physics from West Virginia University, U.S., and a BS in
Electronic Engineering from Tsinghua University, China.

Mr. Peng Zhou, VP of Operation - Mr. Zhou has more than 8 years work experience in the CNG
powered vehicle industry. He worked at Beijing Sanhuan Technology Development Co., Ltd as an
Export Manager and Assistant to the President. Mr. Peng Zhou is an expert in purchase and supply
chain management.

Valuation
Company Ticker Price Market Cap EPS (ttm) P/E (ttm) P/B (ttm) (P/S) (ttm)

Sinoenergy SNEN.OB 2.90 91.11m 0.25 11.6 1.09 3.05

China Natural Gas CHNG.OB 6.30 183.96m 0.36 17.27 1.89 4.42
Sinogas Intl Holding SGAS.OB 1.85 48.8m 0.37 5.03 0.68 2.20
Xin’ao Gas 2688.HK HK$13.56 HK$ 13.70b HK$ 0.55 24.76 - -
Clean Energy Fuels CLNE 14.16 627.25m -0.31 - 2.80 5.34
Average 14.67 1.62 3.75
* trailing twelve months to 03/31/08 All Data provided by Yahoo Finance except Sinoenergy data

7
Selected Financial Data
Sinoenergy Corporation and Subsidiaries
Consolidated Statements of Operations and Comprehensive Income (Unaudited)
(In thousands of US Dollars, except per share data)

Year Ended Six Months Ended

12-31-2006 12-31-2007 03-31-2007 03-31-2008

(restated)
Net Revenue $12,393 $24,730 $5,255 $16,541
Cost of Revenue (5,909) (12,986) (2,522) (8,907)
Gross Profit 6,484 11,744 2,733 7,634
Operating Expenses
Selling Expenses 228 390 78 294
General and administrative expenses 2,061 4,337 1,247 1,975
Total Operating Expenses 2,289 4,727 1,325 2,269
Income (Loss) From Operations 4,195 7,017 1,408 5,365
Other Income (Expenses) net 1,865 (735) (83) 15
Income (Loss) Before Income Taxes 2,330 6,282 1,325 5,380
Income tax (Credit) 1,120 (398) 109 (45)
Income Before Minority Interest 3,450 5,884 1,434 5,335
Minority interest (3) (254) 32 (173)
Net Income 3,447 5,630 1,466 5,162
Earnings Per Share –Basic $0.24 $0.02 $0.06 $0.16
Earnings Per Share –Diluted $0.18 $0.02 $0.06 $0.14
Weighted Average Shares Outstanding- Basic 14,462,268 31,418,065 22,670,835 31,418,065
Weighted Average Shares Outstanding- Diluted 19,286,902 37,821,413 23,917,039 37,750,441

Balance Sheet Data ($ thousands) 09-30-2007 03-31-2008

(Audited) (Unaudited)
Total Current Assets 50,223 28,076
Total Assets 89,066 100,642
Total Current Liabilities 25,538 26,997
Total Long Term Liabilities 29,485 30,257
Total Stockholders’ Equity 32,720 41,852

Sinoenergy Corporation CCG Elite Investor Relations Inc.

Mr. Anlin Xiong, Vice President Mr. Crocker Coulson, President

Phone: +86-10-84932965-860 Phone: +1-646-213-1915 (New York)
E-mail: anlinxiong@sinoenergycorporation.com E-mail: crocker.coulson@ccgir.com
http://www.sinoenergycorporation.com http://www.ccgir.com

Business Risks and Forward-Looking Statements

Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995: Any statements set forth above that are not historical facts are forward looking
statements that involve risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements, which may include,
but are not limited to, factors related to Sinoenergy’s anticipated growth strategies, future business development, ability to attract and retain customers, ability to
source skilled labor, machinery and raw materials economically, competition in the natural gas market, expected growth in market demand for compressed natural
gas, and other information detailed from time to time in the Company’s filings and future filings with the United States Securities and Exchange Commission. Read-
ers are advised that this information is intended for the use of investment professionals. Anyone interested in obtaining information on the Company should contact
Sinoenergy Inc. (SNEN.OB) or CCG Elite, as set forth above, to receive the Company’s most recent financial reports.

This Profile of Sinoenergy was developed by the Company and is intended solely for informational purposes and is not to be construed as an offer to sell or the
solicitation of an offer to buy the Company’s stock. This Profile is based upon information available to the public, as well as other information from sources which
management believes to be reliable, but is not guaranteed by Sinoenergy as being accurate nor does it purport to be complete. Opinions expressed herein are
those of management as of the date of publication and are subject to change without notice.