China Films Technology S-1/A IPO registration (amended)

Corporate Presentation

2011

R & D

Integrated
Solutions

High End
Markets

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Private & Confidential

COMPANY CONFIDENTIAL

All information contained in and/or disclosed in this document is considered as
Confidential and Proprietary Information of China Films Technology Inc.. It is
understood that no right is conveyed to reproduce or have reproduced any item
herein contained without the written permission of China Films Technology Inc..

DISCLAIMER

No representation, express or implied, or warranty as to the accuracy or
completeness of all information contained in this presentation is made by China
Films Technology Inc. and nothing contained in this representation is or shall be
relied upon as a promise or representation as to the future. The information
contained in this presentation is subject to change, completion, or amendment
without notice, and the delivery of such information at any time does not imply that
the information contained in this presentation is correct as of anytime subsequent
to its date.

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Private & Confidential

AGENDA

üCompany Overview

üOur Business

üBusiness Strategy

üManagement Team

üR&D Capability and Projects

üIndustry Overview

üProduction Plant and Process

üOur Products

üIntellectual Property

üDevelopment Plan

üFinancial Forecast

üUse of Proceeds

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Private & Confidential

COMPANY OVERVIEW

qA U.S. company
incorporated in the
State of Nevada on April
8, 2011

qBusiness operations
based in Yunmeng,
Hubei Province, CHINA

(the Central Hub of China)

Map of China

Hubei

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Private & Confidential

OUR BUSINESS

qA flexible film producer in China with the
expertise in BOPET manufacturing technologies

qResearch & Development of high quality flexible
film materials (BOPET)

qWill position as an Integrated Packaging
Solutions Provider

qUsers of our products cover a wide spectrum of
industries

Consumer

based

Packaging

Imaging

Magnetic

Products

Electronics

And

Electrical

Tobacco, Food, Pharmaceuticals, Alcohol,Cosmetics, Masking film, Motor insulation, Audio / video tapes

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BUSINESS STRATEGY

High-end
Markets

R&D of BOPET
Film Production
Technology

Flexible film and
packaging
solutions provider

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Private & Confidential

MANAGEMENT TEAM

qConsists of a team of young, energetic and
insightful professionals

qMr. Y.S. Yang - Chief Executive Officer,
Senior Engineer in Material Engineering,
Over 20 years of experience in (BOPET and
BOPP) flexible film industry

qMr. K.S. Goh - Chief Financial Officer, CPA
in Singapore, Previous senior positions in
Finance, FMCG sales and marketing,
production and operation

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R & D CAPABILITY

qCurrently one of the BOPET filmproviders
in China

qWide spectrum of R&D expertise:

qElectrical and mechanical design of new
materials

qAutomation control

qPrinted packaging

qPolymer chemistry

qLaser holography

qAnti-counterfeiting chemical

qAdditives

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Private & Confidential

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Private & Confidential

INDUSTRY OVERVIEW

Global

Packaging

Industry

• Est. $505 Billion in revenue

• Flexible Packaging: A fast growing sector

Flexible

Packaging

Industry

• Global: Est. $52 Billion in revenue

• North America as the largest market

• Asia Pacific accounted for 28% of total

• CAGR (3.4%) from 1998 to 2008

BOPET

• Global Demand at 5.6% per year since 2002

• Demand in 2007: 2.1 million tonnes

• East and Central Asia: 46% of global demand

• Forecast to grow at 5.7% annually for next 5 years

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PRODUCTION PLANT

qLocation: Yunmeng County Economic & Techological Development Zone

qLand area: 11,729.20 sq.meters, about 145 employees

qCommenced trial production in May 2009

qOne highly automated Brückner-made BOPET production line

qDesigned Annual capacity of 15,000 tons

qProduct mix ranging from the thickness of 8 to 75 microns

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Private & Confidential

PRODUCTION PROCESS

Raw

Materials

Longitudinal

Stretching

Drying

Mixing

Extrusion

Casting

Additives

Transverse

Stretching

Thickness

Gauge

Pulling

Slitting

Rewinding

Finished

Products

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OUR PRODUCTS

qPackaging Films

qIndustrial Films

qSpecialty Films

Metallizable base film

Laminated film

Tinsel Aluminum-
plated film

High gross film

BOPET transfer
Base film

BOPET matt
film

Tensilized film

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Private & Confidential

PRODUCT APPLICATIONS

Metallizable

Base film

Ò an aluminum metallized base film

Ò displays good thermal stability and tensile strength

Ò provides good adhesion between film and aluminum layer

Ò mainly used for vacuum aluminum plating for paper of flexible plastic
lamination.

Printable

Base film

Matte film

Transfer

Base film

Ò Used in tobacco labels, wine labels, high-grade food, medicine and
other laser anti-counterfeit labels for anti-counterfeit purpose.

Ò film with single or double matte surface

Ò achieved by adding special additive to the base polymer

Ò used for printing, metallization, stamping and transfer metallization.

Ò a highly transparent film

Ò corona treated on one side to provide excellent adhesion to ink

Ò primarily used in printing and lamination.

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Private & Confidential

DEVELOPMENT PLAN

qExpanded production

qupgrade existing production line

qwill purchase 1 to 2 production lines in
the coming years

qExploration of the more profitable
high-end markets

qincreasing effort in R&D of material
chemistry

qdevelop a series of high quality films
used in the packing of high-end products

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Private & Confidential

	2010(A)	2011(F)	2012(F)	2013(F)
Gross Profit (USD Mil)	8.76	10.77	11.15	11.15
Net Profit (USD Mil)	4.55	4.19	4.61	4.69
Gross Margin(%)	21.5	23.0	23.0	23.0
Net Margin(%)	11.2	8.94	9.52	9.67

FINANCIAL FORECAST

All forecast figures based on management’s best estimate

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Private & Confidential

	USD
Transfer Agent and Filing Fees	15,000
Accounting, Auditing and Legal	35,000
Marketing and Distribution	50,000
R&D of Film Technology and New Products	50,000
Working Capital and General Corporate Purposes	150,000
Total	300,000

USE OF PROCEEDS

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Private & Confidential

THANK YOU

China Films Technology Inc.