China CleanTech Index April-June 2014 Quarterly Performance Report

Sydney, July 14, 2014 AEST (ABN Newswire) - The China CleanTech Index provides the definitive measure of the performance of Chinese cleantech companies that are listed on stock exchanges around the world.

The cleantech industry is split into a number of sub-sectors as detailed in the table below. Each of the sub-sectors contains companies that have both environmental and economic benefits.

Biogas
Geothermal - Hot dry rocks and conventional
Biofuels
Low Emissions Transport Technologies
Carbon Trading
Solar Thermal and Photovoltaics
Energy Efficiency & Biomaterials
Waste Management & Recycling
Energy Storage & Fuel Cells
Water
Environmental Services
Wave, Tidal & Hydro
Green Buildings
Wind Generation

The cleantech sector is fundamentally different to Socially Responsible Investments (SRI) or Environmental, Social and Governance (ESG) performance. SRI and ESG look at incremental improvements in company performance and can be seen as 'operational hygiene' measures that find the best in class. Cleantech focuses on companies whose output positively enhances the communities and ecologies in which they reside. It is about doing 'more good' rather than 'less bad'.

With over 160 companies falling under the coverage of the Index and with a combined market capitalisation of over 1 trillion Renminbi (US$165 billion), the China CleanTech Index presents for the first time a picture of the Chinese cleantech industry's growth in a single measure.

The Index is weighted by market capitalisation and is benchmarked against the following indices to show its relative performance:

- Wilder Hill New Energy Global Innovation Index (NEX) - which measures the performance of global clean energy stocks

- Cleantech Index (CTIUS) - which measures the performance of global cleantech stocks

- China Shanghai Composite Index (SHCOMP) - which measures the performance of stocks listed in Shanghai.

- MSCI World (MSCI) - which provides a measure of the performance of global stock markets.

The rules for the formulation and management of the Index have been developed with reference to global best practice. An overview of these rules is provided in the annual performance report.

The China Cleantech Index is updated each month and published on the SinoCleantech website at www.sinocleantech.com and on the Australian CleanTech website at:
http://www.auscleantech.com.au
It is published internationally in conjunction with Cleantech Investor:
http://www.cleantechinvestor.com
and in China in conjunction with Top Capital:
http://www.topcapital.cn
Monthly results can be emailed directly to interested parties by subscribing at:
http://www.sinocleantech.com

China CleanTech Index Performance

The China CleanTech Index underperformed all but one of its four benchmarks for the month of June 2014 and recorded a gain of 0.5%.

The China CleanTech Index rose from 43.4 to 43.6 over the month of June recording a 0.5% gain. This compared to the NEX gain of 5.8%, the CTIUS gain of 2.0%, the Shanghai Composite gain of 0.4% and the MSCI gain of 1.6%. The China CleanTech 20 fared better with a 2.0% gain.

Over the second quarter of 2014, the China CleanTech Index recorded a loss of 2.4%, underperforming all of its benchmark indices. Over the quarter, the NEX gained 4.2%, the CTIUS gained 1.0%, the Shanghai Composite gained 0.7% and the MSCI gained 4.2%.

Over the first half of 2014, the China CleanTech Index recorded a loss of 1.7%, underperforming all but one of its benchmark indices. Over the six months, the NEX gained 15.9%, the CTIUS gained 4.2%, the Shanghai Composite lost 3.2% and the MSCI gained 5.0%.

The twelve month gain for the China CleanTech Index now stands at 17.9% strongly outperforming the Shanghai Composite although behind the other benchmarks. This twelve gain is being driven by the China Solar Index (+72.1%), the China Storage Index (+27.8%) and the China Efficiency Index (+27.2%).

-------------------------------------------------------------------------Percentage 2009   2010   2011   2012   2013  Jun   2Q    1H   12     3Change                                       2014  14    14   Mnths  Yrs-------------------------------------------------------------------------(CCTI)     77.5%  -9.6% -48.0% -16.5%  29.2% 0.5% -2.4% -1.7% 17.9% -29.4% (CCT20)    59.6% -15.6% -47.4% -15.5%  24.1% 2.0% -3.4% -9.5%  5.1% -35.4% (NEX)      39.7% -14.6% -40.2%  -5.5%  53.7% 5.8%  4.2% 15.9% 43.3%   4.3% (CTIUS)    38.1%   7.3% -18.3%   7.3%  37.0% 2.0%  1.0%  4.2% 29.7%  17.1%(SHCOMP)   80.0% -14.3% -21.7%   3.2%  -6.7% 0.4%  0.7% -3.2%  3.5% -25.8%(MSCI)     27.0%   9.6%  -7.6%  13.2%  24.1% 1.6%  4.2%  5.0% 21.6%  31.0%--------------------------------------------------------------------------

CCTI - China CleanTech Index
CCT20 - China CleanTech 20
NEX - Wilder Hill New Energy Global Innovation Index
CTIUS - Cleantech Index
SHCOMP - China Shanghai Composite Index
MSCI - MSCI World

The market capitalisation of the 164 stocks in the China CleanTech Index is RMB 1.04 trillion (US$167 billion) after its rebalance, down slightly from its prior peak of RMB 1.06 trillion in March 2014 and a long way up from its trough of RMB 604 billion in November 2012.

Best and Worst Stocks

The best and worst performers in terms of share price performance over the month, the second quarter and first half of 2014 are shown in the table below.

Over the month, 14 companies recorded share price gains of more than 20% and 10 companies recorded losses of more than 20%.

Over the quarter, 7 companies recorded share price gains of more than 30% and 15 companies recorded losses of more than 30%.

Over the first half of the year, 14 companies recorded share price gains of more than 50% and 4 companies recorded losses of more than 50%.

-----------------------------------------------------June 2014-----------------------------------------------------Best PerformersShare Price Gain > 20%-----------------------------------------------------Shenzhen Refond Optoelectronics Co Ltd (SHE:300241)Tianli Enviromental Protection Eng Co (SHE:300156)Hunan Yonker Environ Protection Co Ltd RINO International Corporation (RINO:OTCMKTS)China Singyes Solar Technology Hldgs Ltd (HKG:0750)Jiangsu Akcome Solar Science and Technology Co (SHE:002610)Sungrow Power Supply Co (SHE:300274)Suntech Power Holdings (STPFQ:OTCMKTS)Beijing Easpring Material Technology Co., Ltd. (SHE:300073)China BAK Battery (NASDAQ:CBAK)China Sun Group High Tech Co. (CSGH:OTCMKTS)Hong Kong Highpower Technology, Inc. (NASDAQ:HPJ)Shanghai Canature Environmental Prod (SHE:300272)Shanghai Safbon Water Service Co (SHE:300262)-----------------------------------------------------June 2014-----------------------------------------------------Worst PerformersShare Price Loss > 20%-----------------------------------------------------China Clean Energy Inc. (CCGY:OTCMKTS)China Energy Recovery Inc (CGYV:OTCMKTS)LED International Holdings Ltd. (LON:LED)Shenzhen AOTO Electronics Co Ltd (SHE:002587)SmartHeat Inc (HEAT:OTCMKTS)Zhejiang Yankon Group Co., Ltd. (SHA:600261)China Solar & Clean Energy Solns., Inc. (CSOL:OTCMKTS)China Recycling Energy Corp. (NASDAQ:CREG)Dongjiang Environmental Co Ltd (HKG:0895) (SHE:002672)HanKore Environment Tech Group Ltd (BOTRF:OTCMKTS)-----------------------------------------------------Second Quarter 2014-----------------------------------------------------Best PerformersShare Price Gain > 30%-----------------------------------------------------LED International Holdings Ltd. (LON:LED)Shenzhen Refond Optoelectronics Co Ltd (SHE:300241)Tianli Enviromental Protection Eng Co (SHE:300156)Comtec Solar Systems Group Limited (HKG:0712)LDK Solar Co Ltd (LDKSY:OTCMKTS)Sunwoda Electronics Co (SHE:300207)Jiangsu Welle Environmetnal Co., Ltd. (SHE:300190)------------------------------------------------------Second Quarter 2014------------------------------------------------------Worst PerformersShare Price Loss > 30%------------------------------------------------------China Clean Energy Inc. (CCGY:OTCMKTS)Shenzhen AOTO Electronics Co Ltd (SHE:002587)Zhejiang Yankon Group Co., Ltd. (SHA:600261)Xiamen Savings Environmental Co., Ltd. (SHE:300056)Zhejiang Feida Environmental Science Technology (SHA:600526)Shanghai Yanhua Smartech Co Ltd (SHE:002178)China Sunergy Co Ltd (NASDAQ:CSUN)Daqo New Energy Corp. (NYSE:DQ)Sungrow Power Supply Co (SHE:300274)Advanced Battery Technologies (ABAT:OTCMKTS)EVE Energy (SHE:300014)China Industrial Waste Management Inc (CIWT:OTCMKTS)China Recycling Energy Corp. (NASDAQ:CREG)Guangdong Golden Dragon Development Inc. (SHE:000712)Guizhou Qianyuan Power (SHE:002039)-------------------------------------------------------First Half 2014-------------------------------------------------------Best PerformersShare Price Gain > 50%-------------------------------------------------------Foshan Electrical and Lighting Co., Ltd. (FSL) (SHE:000541)Guangzhou Hongli Opto Electronic Co Ltd (SHE:300219)HC Semitek (SHE:300323)LED International Holdings Ltd. (LON:LED)Shenzhen Sunwin Intelligent Co., Ltd. (SHE:300044)China Singyes Solar Tech. Hold. Ltd (HKG:0750)Shunfeng Photovoltaic International (HKG:1165)Beijing Easpring Material Technology Co., Ltd. (SHE:300073)China BAK Battery (NASDAQ:CBAK)Hong Kong Highpower Technology, Inc. (NASDAQ:HPJ)Jiangxi Ganfeng Lithium Co.,Ltd. (SHE:002460)Sound Global Ltd (HKG:0967)Jiangsu Jixin Wind Energy (SHA:601218)Shanghai Taisheng Wind Power Equipment Co.Ltd. (SHE:300129)--------------------------------------------------------First Half 2014--------------------------------------------------------Worst PerformersShare Price Loss > 50%--------------------------------------------------------Zhejiang Feida Environmental Science Technology (SHA:600526)Dongying Photovoltaic Power Co Ltd  (EPA:ALCNP)(CNPV Solar Power SA)LDK Solar Co Ltd (LDKSY:OTCMKTS)EVE Energy (SHE:300014)--------------------------------------------------------

Index Rebalance

The China CleanTech Index underwent its quarterly rebalancing at the end of June which took account of recent share issues and other corporate activity. One company was removed from the index and no additional companies were added during this rebalance.

The company removed from the Index was Tri-Tech Holding, Inc which is currently in the process of delisting from the NASDAQ.

Component Sub-Indices

To provide an analysis of the China CleanTech Index, eight sub-indices have been developed. The performance of each of these sub-indices over the last five years and the current quarter are shown in the table and charts below.

Only two of the eight sub-indices recorded gains for the quarter. The best results were the 4.4% gain for the China Hydro Index and the 4.2% gain for the China Solar Index. The worst results were recorded by the 11.2% loss from the China Waste Index and 7.9% loss from the China Efficiency Index.

Over the first six months of 2014, the best results were the 16.5% gain for the China Solar Index and the 5.5% gain for the China Efficiency Index. The worst results were recorded by the 18.9% loss from the China Waste Index and 11.3% loss from the China Environment Index.

----------------------------------------------------------------------                        China CleanTech Sub-Indices----------------------------------------------------------------------                        2009    2010   2011   2012  2013   2Q14   1H14----------------------------------------------------------------------China Efficiency Index  102.4%  31.8% -60.4% -30.9% 23.5% -7.9%   5.5%China Environment Index 157.4%  13.5% -31.1% -21.8% 37.7% -5.0% -11.3%China Solar Index        92.4% -13.0% -57.5% -36.2% 76.9%  4.2%  16.5%China Storage Index     141.0% -15.1% -36.6%  11.7% 32.2% -4.0%   2.0%China Waste Index        65.7%  99.1% -25.9% -12.5% 32.5%-11.2% -18.9%China Water Index       113.5%   9.6% -49.7%  -8.0% 37.6% -7.0%  -6.2% China Hydro Index        78.9% -35.6% -23.0%   1.1% -9.9%  4.4%  -3.6%China Wind Index         45.8% -21.0% -57.7% -32.5% 48.5% -0.8%  -6.3%----------------------------------------------------------------------

Index Component Companies

The 20 largest Index constituents by market capitalisation on 30 June 2014 are provided in the table below. These stocks will be the constituents of the China CleanTech 20 until the Index rebalance on 30 September 2014.
In the China CleanTech 20, the greatest sub-sector representations are Water with seven companies followed by both Solar and Wind with four companies each.

New entrants to this list at this rebalance are Comtec Solar Systems Group and Wuhan Linuo Solar Energy. These have taken the place of Fujian Longking and Guangdong Golden Dragon Development.

---------------------------------------------------------------------  Company                          Sector       Exchange      Code---------------------------------------------------------------------1 China Yangtze Power              Wave,        Shanghai    (SHA:600900)                                   Tidal, Hydro (SH)2 China Longyuan Power Group Corp  Wind         HKSE        (HKG:0916)3 China Everbright International   Water        HKSE        (HKG:0257)4 Beijing Enterprises Water Group  Water        HKSE        (HKG:0371)5 GCL-Poly Energy Holdings         Solar        HKSE        (HKG:3800)6 Sinohydro Group                  Wave,        Shanghai    (SHA:601669)                                   Tidal, Hydro (SH)7 Beijing Originwater Technology   Water        Shenzhen SX (SHE:300070)                                                (SHE)8 Xinjiang Goldwind                Wind         Shenzhen SX (SHE:002202)  Science & Tech                                (SHE) 9 Chongqing Water Group Company    Water        Shanghai    (SHA:601158)                                                (SH)10 Tsinghua Tongfang               Energy       Shanghai    (SHA:600100)                                   Efficiency   (SH)11 Huaneng Renewables              Wind         HKSE        (HKG:0958)12 Shunfeng Photovoltaic           Solar        HKSE        (HKG:1165)   International13 Comtec Solar Systems Group      Solar        HKSE        (HKG:0712)14 Sound Environmental Resources   Waste        Shenzhen SX (SHE:000826)                                                (SHE)15 Chengdu Xingrong Investment     Water        Shenzhen SX (SHE:000598)                                                (SHE)16 Beijing Capital                 Water        Shanghai    (SHA:600008)                                                (SH)17 Sinovel Wind Group              Wind         Shanghai    (SHA:601558)                                                (SH)18 Tianjin Capital                 Water        Shanghai    (SHA:600874)   Environmental Protection                     (SH)19 Wuhan Linuo Solar Energy        Solar        Shanghai    (SHA:600885)                                                (SH)20 Sichuan Tianqi                  Storage &    Shenzhen SX (SHE:002466)   Lithium Industries              Fuel Cells   (SHE)---------------------------------------------------------------------

To view all tables and charts, please visit:
http://media.abnnewswire.net/media/en/docs/77594-2Q14-Report-ENG.pdf


About Sino CleanTech

Sino CleanTech publishes the China CleanTech Index and facilitates Chinese Cleantech investments and provides services to Government agencies across Asia to help stimulate investment in the Cleantech industry. These investments include looking at listed cleantech stocks and direct investment into projects and companies. Sino Cleantech is active in facilitating:

- Investment from Chinese investors into cleantech in both China and internationally; and

- Investment from international investors into the Chinese cleantech market.

Please contact us if you are looking for funding or seeking investments.

 

Contact

John O'Brien Managing Director, Sino CleanTech Tel: +61-419-826-372 E-mail: john.obrien@sinocleantech.com Dorothy Zhao Manager, Sino CleanTech Australia: +61-432-294-989 E-mail: dorothy.zhao@sinocleantech.com