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Investor PresentationFebruary 2010
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ForwardForward--LookingLooking StatementsStatementsIn addition to historical information, the statements set forth throughout thispresentation include forward-looking statements that may involve risk anduncertainties that could cause actual results to differ materially from those in the
forward-looking statements. Such risks and uncertainties include, but are notlimited to, uncertainty of contract negotiations and payments under existingcontracts, the Companys dependence on government contracts, changes in thelaws of the PRC that affect the Companys operations, fluctuation andunpredictability in foreign exchange prices, fluctuation and unpredictability of costsrelated to the Companys products and services, reduction or reversal of theCompanys recorded revenue or profits due to percentage of completion
method of accounting and expenses and costs associated with the issuance ofsecurities. The forward-looking statements are also identified through use of thewords believe, enable, may, will, could, intends, estimate,anticipate, plan, predict, probable, potential, possible, should,continue, and other words of similar meaning. Actual results could differmaterially from the expectations contained in forward-looking statements as aresult of several factors, including regulatory approval requirements and
competitive conditions. These and other factors that may result in differences arediscussed in greater detail in the Companys reports and other public filings.
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CompanyCompany SnapshotSnapshot Boyuan is the first pure-play construction
company listed in North America
Focused on fast-growing Yangtze RiverDelta, Hainan Island, and the Shandongprovince
Success driven by history of quality projectsdelivered on time and budget
Introduced unique make good provision toinvestment landscape
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$0
$4,000,000
$8,000,000
$12,000,000
$16,000,000
FY 2007 FY 2008 FY 2009 FY 2010E
Net Income
Financial OverviewFinancial Overview
Note: Adjusted net income is the net income before deduction of the made good charge.
Q12010
$35,003
$3,037
$0.10
$0.11
N/A
N/A
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Peer Group ComparisonPeer Group ComparisonChinaChina
*At February 1, 2010
** 1 C$=6.444
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Peer Group ComparisonPeer Group ComparisonNorth AmericaNorth America
*At February 1, 2010
** 1 C$=0.9469 US$6
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Construction Industry OverviewConstruction Industry Overview
62,074 construction companies in 2007.
Industry is highly fragmented and competitive.
Distribution of construction companies verymuch like a pyramid.
Technical capabilities still short of westernstandards.
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Construction Industry OverviewConstruction Industry Overview
One of the key economic pillars in China.
Experienced significant growth over the past decade. CARG of 22%
from the year 2000 to 2007.
8
225.0271.4
338.1
425.1506.1
608.7
747.7
0
100
200
300
400
500
600700
800
2001 2002 2003 2004 2005 2006 2007
US$ (in billions)
20.6%
24.6% 25.7%
19.1%20.3%
22.8%
Total Output Value of Construction
Growth
rate --
Source: China Statistical Yearbook 2008, National Bureau of Statistics of China
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Growth of construction Industry inGrowth of construction Industry in
ChinaChina
China will overtake the United States as theworld's largest construction market by 2018*
By 2018, China's already massive constructionmarket will be worth almost US$2.4 trillion
represent 19.1% of global construction output.
(2008: global market is 7.5 trillion US$)**
* Source: Global Construction Perspectives & Oxford Economics
**Source: IHS Global Insight Construction Services
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Growth factors of ConstructionGrowth factors of Construction
IndustryIndustry
China continues to be in a rapid phase of itseconomic development cycle.
Rapid rural migrations to urban centers.
Accelerated growth of middle class.
Stimulus Plan- US$586 billion.
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Boyuan'sBoyuan's Core MarketCore Market
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Boyuan'sBoyuan's Core MarketCore Market
Consists of triangle ofShanghai, SouthernJiangsu Province andNorthern ZhejiangProvince
21% of the national economy
Home to over 90 million people in 2008
The Yangtze River Delta
GDP US$2 trillion
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Boyuan'sBoyuan's Secondary MarketSecondary MarketSanya, Hainan Island!!New Policy-Government aims to build Hainan Island
into a International Tourist Destination "by 2020
Major tourist destination
20.6 million tourists andUS$2.64 billion spent in 2008
Chinas largest special economic zone
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BoyuanBoyuanss Latest MarketLatest MarketShandong
One of the richest provinces in China .GDP of US$446 billion in 2008 (2nd in China)
Biggest producer of cotton and wheat
Largest deposits in petroleum and preciousmetals
Home of the two most recognized brandnames in China: Tsingtao beer and Haier
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Boyuan'sBoyuan's Operations & RevenueOperations & Revenue
StreamsStreams
55% Commercial
Projects13% Residential
Projects
27% IndustrialProjects
5% Government Projects
Based on 2010 Revenue
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FY2010 Projects BacklogFY2010 Projects Backlog
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Current Projects PipelineCurrent Projects Pipeline
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BoyuanBoyuan''ss Growth StrategiesGrowth Strategies
1. Solidify our existing markets
2. Focus on projects with higher technical elementsto leverage on our technical capabilities
3. Geographic expansion into other provinces in
China
4. Increase our scope of construction activities with
a special class qualification
5. Vertical integration in the long term
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Mr. Cai Liang Shou
- Founder and Chairman
Zhejiang University of Technology graduate
Senior Engineer with 22 years of real estate project managementexperience
Owns over 55% of Boyuan's share capital
Mr. Paul Law
- Chief Financial Officer
Over 20 years experience in the accounting and finance industry
Held senior positions at Citibank, National Australia Bank, andPrudential Bache Securities (HK)
Graduate of McGill University and MBA (Finance) from UBC
Mr. Qian Feng- General Manager
Holds Senior Engineer designation.
More than 25 years of engineering, project execution
and management
Ms. Ren Shu
- Corporate Secretary,Director
Received Masters degree in Law from Zhejiang University.
Qualified as Lawyer since 2000
Mr. Wang Hao
- Vice President
Graduated from Dongbei University of Finance and Economics
Over 11 years of experience in financial practice and management
Mr. Tang Wei
- Vice President, Director
Graduate of Beijing University of Aeronautics and Astronautics
Qualified Engineer and Economist
Management and DirectorsManagement and Directors
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Management and DirectorsManagement and DirectorsMs. Mannie Liu
- Independent Director
Founder, chairman and chief economist of VCChina Ltd.
Holds doctorate degree in Economics from Cornell University, and iscurrently professor at Renmin University in Beijing
Financial Advisor to the Beijing Municipal Government, Director of theBoston China Finance Research Center in the U.S.
Dr. Fang Lixin
- Independent Director
Professor of Law at the Zhejiang University.
Board member of the Zhejiang Real Estate Association, LegislativeAdvisory of Hangzhou Peoples Congress and the HangzhouMunicipal Peoples Government.
Holds a Doctoral degree from East Asia University of Politics andLaw.
Mr. Francis Leong
- Independent Director
Principal of Sungai River Inc., an international financial consulting
company
Serves as a Director on the boards of ENMAX
and Grand Power LogisticsHolds a BComm Degree and a Masters of Public Administration
Mr. David J.Horsley
- Independent Director
Senior VP & CFO at Sino-Forest Corporation (TSX:TRE)
Previously held position of Senior Vice President and CFO at CygnalTechnologies Corporation and Senior Vice President and CorporateSecretary at Canadian General Capital Limited
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Capital StructureCapital Structure
Boyuan has a face value of$7,930,500 in ConvertibleDebentures outstanding, convertibleinto 3,965,250Common Shares @ $2.00/Share
Boyuans Warrants are exercisableat $2.00/Share for a period of fouryears
*Boyuan Preferred Shares rank equally with the Common Shares and are convertible intoCommon Shares on a 1:1 basis, subject to TSX approval
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Market FactsMarket FactsTicker Symbol: BOY-V
Listing: TSX-Venture
Recent Share Price*: $3.28
Shares Outstanding ~ 25.74 M
Market Capitalization $84.43M
52-Week Price Range $1.25 - $3.50
Fiscal Year-End June 30
* At February 1, 2010 Market Close
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ContactsContacts
TSX-V:BOY | BOY.DB
Company Contacts
Paul Law Ms. Ren Shu
Chief Financial Officer Corporate [email protected] [email protected]
Tel: +852 9329 5088 Tel: +86573-85583126
Investor Relations
Joe Racanelli
Senior Account Executive
The Equicom Group Inc.
[email protected] http://www.boyuangroup.com
Tel: 416 815-0700 x 243
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Residential ProjectsResidential Projects
Three phases with 13, 16 and 12 buildings in each phase
Total construction area of 750,000 sq feet
Currently building the third
Phase of 12 buildings
September 2009 targeted
completion
Pinghu Xingzhou, Donghu Park
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Industrial ProjectsIndustrial Projects
Cargill is the largest private company in the U.S.
Project included roadways, warehouses and offices
Phase #1 has total area of55,000 sq feet
Completed in August 2008
Cargill Corporations High-fructose factoryfor Coca-Cola
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Commercial/Mixed Use ProjectsCommercial/Mixed Use Projects
High-end residential and office buildings in Nanjing,
capital of Jiangsu province
28-story residential building
21-story office building
Total construction area is
670,000 sq feet
December 2009 completion
Jinhu International Plaza
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Public Infrastructure ProjectsPublic Infrastructure ProjectsHangzhou Municipal School for the Chinese CommunistParty Committee
7-storey building
Total construction area of 464,570 sq feet
Student apartment complex
High profile building for the
CCP Committee in Hangzhou,
capital of Zhejiang Province
Completed in August 2008
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Hotel ProjectsHotel Projects
Fuyue Grand Hotel
A 5-star hotel in Jiaxing, Zhejiang
20-storey with a gross construction
area of 1 million square feet
Due to complete in 2010
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Hotel ProjectsHotel Projects
Seacoast Hotel
A 20-storey hotel in
Sanya, Hainan Island
Total construction area of
740,000 sq feet
Due to complete in 2010
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Commercial ProjectsCommercial Projects Blue Star Commercial
Building
Located at the city ofWeifang, Shandong
19-story with a gross
construction area of300,000 square feet
Due to complete by 2011
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