NEW ORIENTAL ENERGY & CHEMICAL CORP.

NEW ORIENTAL ENERGY & CHEMICAL CORP.

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Company Overview
New Oriental Energy & Chemical Corp. is an American company engaged in the manufacture and distribution of fertilizer and chemical products. The company produces and markets urea, a chemical used as fertilizer for crops and in certain manufacturing processes, including the manufacture of resin, plastic and medicine. It also produces and sells methanol.
The company serves chemical, pharmaceutical, light, and textile industries. It sells its products primarily through regional distributors. The company’s other products include Ammonium Hydrogen Carbonate, which can be used as a fertilizer for crops and in the pharmaceutical and food industries. It has also developed Dimethyl Ether (DME). DME has a variety of industrial applications in the production of pesticides, cosmetics and as a refrigerant.
Business Summary
New Oriental Energy & Chemical Corp. (NOEC) through its wholly owned subsidiary, Henan Jinding Chemical Co., Ltd. (Jinding) is engaged in the manufacturing and distribution of fertilizer and chemical products. The products are distributed to markets in the People’s Republic of China. The primary business of the Company is the manufacturing and selling of urea, a chemical used as fertilizer for crops and in certain manufacturing processes, including the manufacturing of resin, plastic and medicine. NOEC is also engaged in the production and selling of methanol. The other products manufactured by the Company include Ammonium Hydrogen Carbonate, which can be used as a fertilizer for crops, and in the pharmaceutical and food industries. In addition, another product developed by the Company is Dimethyl Ether (DME). DME has a range of industrial applications in the production of pesticides, cosmetics and as a refrigerant.
Description and history
New Oriental Energy & Chemical Corp. (NOEC), incorporated on November 15, 2004, through its wholly owned subsidiary, Henan Jinding Chemical Co., Ltd. (Jinding) is engaged in the manufacturing and distribution of fertilizer and chemical products. The products are distributed to markets in the People’s Republic of China. The primary business of the Company is the manufacturing and selling of urea, a chemical used as fertilizer for crops and in certain manufacturing processes, including the manufacturing of resin, plastic and medicine. NOEC is also engaged in the production and selling of methanol. The other products manufactured by the Company include Ammonium Hydrogen Carbonate, which can be used as a fertilizer for crops, and in the pharmaceutical and food industries. In addition, another product developed by the Company is Dimethyl Ether (DME). DME has a range of industrial applications in the production of pesticides, cosmetics and as a refrigerant.

The products of the Company are manufactured in Xicheng Industrial Zone, Luoshan, Henan Province in the People’s Republic of China. NOEC owns and operates a thermal power station with the capacity to generate 3000 kilowatt of thermal power per hour at the factory in Henan. The power station uses thermal energy, which is a by-product of the Company’s chemical production operations.

Urea is produced commercially from two raw materials, ammonia and carbon dioxide. The Company produces urea in the form of granules. Large quantities of carbon dioxide are produced during the manufacture of ammonia from coal or from hydrocarbons, such as natural gas and petroleum derived raw materials. This allows direct synthesis of urea from these raw materials. The urea products manufactured by NOEC are derived from coal produced in the People’s Republic of China. The commercial applications of urea include use as a main component of fertilizer; a raw material for manufacturing of plastics, specifically urea-formaldehyde resin; a raw material for the manufacturing of various glues, and a component of animal feed.

Methanol is used for the production of medicine, pesticide, dye, plastic, synthetic protein, fiber, formaldehyde and methyl ether. Ammonium acid carbonate is used for agricultural purposes and is suitable for various crops, as well as all types of soil. The purified product can be used in the food industry, as well as in such industries as pharmaceutical, galvanization and rubber overshoes. In the food industry, ammonium acid carbonate is used as a leavening agent in breads, cookies, waffles and cake and also as a substitute for yeast in baking. In the chemical industry, ammonium acid carbonate acts as an auxiliary in the production of catalysts. DME is a colorless gas with a slight ether flavor. DME can be combined with liquidated petroleum gas (LPG), coal gas or natural gas to improve their combustion properties and improve heat quantities. The DME is used as an chemical feedstock for production of spray paint, insecticides, air fresheners, fixtures, anti-rust sprays and lubricants.

The Company competes with Henan Zhongyuan Dahua Group, Junma Group, Xinlianxin Corp., Shandong Luxi Group, Anhui Linquan Group, Woyang Chemical Corp, Lantian Group, Sandong Juitai Company, Sichuan Lutianhua Chemical Company, Asia New Energy Holding Limited and Zhu Ma Dian Jun Ma Group.

Business Line
Manufacture and distribution of fertilizer and chemical products
Subsidiary
KINFAIR HOLDING LIMITED
Advisor
WEINBERG & COMPANY
IPO date
11/27/2006
US SIC Code
2875
Company Address

City province or state postal code
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Country address: UNITED STATES OF AMERICA
Website url: www.neworientalenergy.com