China Green Energy (OTC BB:CGRE)

On June 9, 2010 Best Green Energy became a public entity via a reverse merger transaction.

Company Snapshot:

Manufactures and distributes clean technology-based consumer products.

Industry Snapshot:

• Compared to motorbikes, LEVs enjoy the following advantages: less fossil fuel consumption, cheaper in price, more convenient to park inside cities, and less air and noise pollution. We believe many consumers are increasingly willing to consider purchasing LEVs due to environmental, economic, and convenience reasons. As a result, we believe the market for LEVs is poised for significant growth as consumers continue to shift their preferences strongly toward more energy efficient and lower emission vehicles.
  
•  The Chinese market for LEVs is huge and has been growing rapidly. According to the China Electronic Components Association, 21.5 million LEVs were sold in China in 2008, representing growth of 26.5% over 2007. And in 2009, 24.5 million LEVs were sold in China. The following chart shows the historical and expected growth of LEV sales in China:

• We currently produce and sell cryogen-free refrigerators, which are classified as small home appliances. According to CCDI Consulting, compound aggregate growth rate, or CAGR of small home appliance sales in China was 15% during 2003 to 2008. The following chart shows the growth of small home appliance sales in China:

• China’s cable and wire industry has surpassed the United States to become the largest cable and wire producer in the world. According to the Shanghai Cable & Wire Research Institute, the sale of cable and wire in China was $59 billion in 2006. (Source: Zhongli Sci-Tech Group IPO Prospectus, August 13, 2009.) In China, the cable & wire industry is expected to grow at a level comparable to that of the national economy, which is projected to be 7% to 8%. (Source: http://www.chinawirecable.com)

Post Merger Share Calculation:

•   6,794,880: Pre reverse merger outstanding shares  
•   4,000,000: Shares cancelled as part of the Share Exchange
• 20,734,531: Newly issued shares of Common Stock

GeoTeam® best effort calculation of total post reverse merger shares assuming full conversions:  23,529,411

Financial Snapshot:

• For the 2010 first quarter sales increased 116.7% to $5.2 million. Note, that for all of 2009 sales were $12.1 million.
  
• For the 2010 first quarter net income  increased 261.4% to $759 thousand. Note, that for all of 2009 net income was $1.6 million.