Anno ppt 9 20-10

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American Nano Silicon Technologies, Inc. 1 Corporate Presentation Sept 2010

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Transcript of Anno ppt 9 20-10

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American Nano Silicon Technologies, Inc.

1

Corporate Presentation

Sept 2010

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This presentation contains forward-looking statements which are made pursuant to the safe

harbor provisions of the Securities Exchange Act of 1934. The forward-looking statements in

this presentation do not constitute guarantees of future performance. Those statements involve a

number of factors that could cause actual results to differ materially, including risks associated

with the Company's business, risks involving the Company's products, their development and

distribution, economic and competitive factors and the Company's key strategic relationships,

and other risks detailed in the Company's filings with the Securities and Exchange Commission.

American Nano Silicon Technologies, Inc. assumes no obligation to update any forward-

looking information contained in this presentation or with respect to the announcements

described herein.

Forward Looking Statements

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American Nano Silicon Technologies, Inc.

Symbol: ANNO.OB

Price (9/20/2010): $1.95

Market Cap: $60.26 MM

Shares Outstanding (9/20/2010): 30.90 MM

Fiscal Year End: September 30

Revenue (ttm as of 06/30/2010): $20.92 MM

EBITA (ttm as of 06/30/2010): $4.68 MM

Total Assets (as of 06/30/2010): $18.40MM

Total Liabilities (as of 06/30/2010): $11.47MM

Employees: 5 Management, 8 Scientists, 176 Employees

Headquartered: Nanchong City, Sichuan

Operating Entity:Nanchong Chunfei Nano-Silicon Technologies Co., Ltd. (95% owned)Founded under PRC laws in October of 2007

Company Snapshot

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Company Overview

American Nano Silicon Technologies, Inc. “ANNO” is a technology based business that develops, manufactures and markets consumer and commercial products that utilize its proprietary product, micro nano silicon.

Micro nano silicon is a synthetic additive that ANNO primarily uses in their non-phosphate detergent products. Additionally, ANNO has developed additional uses for micro nano silicon in the paint, rubber and construction industries.

Micro nano silicon has many advantages over its industry competitors in the non-phosphate detergent market to include:

Cost Leader: Micro nano silicon can be produced at a significantly lower cost than other non-phosphate detergent products

Product Effectiveness: ANNO’s micro nano silicon detergent provides for a greater stain removal capability and PH buffer when compared to their industry competitors

Environmentally Friendly: Mico nano silicon is significantly more environmentally friendly than other leading non-phosphorus based detergents.

In July 2009, ANNO finished the construction of a 30,000 ton production line for micro nano silicon.

American Nano Silicon Technologies, Inc.

-

5,000

10,000

15,000

20,000

25,000

30,000

35,000

Fiscal 2008 Fiscal 2009 Oct '09 - March '10

Prodction (in Ton's)

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Product Focuses

American Nano Silicon Technologies, Inc.

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Investment Highlights and Recent Developments

American Nano Silicon Technologies, Inc.

April 2009 Appointed 4 independent members to serve on its Board of Directors

July 2009 Finished the construction of a 30,000 ton production line for micro nano silicon

March 2010Successfully raised $2 MM in growth capital from accredited investors via common stock with warrants

April 2010ANNO entered into a cooperative agreement with China’s Technical Institute of Physics and Chemistry at the Chinese Academy of Science.

May 2010 ANNO begins construction of a new 120,000 ton production line for micro nano silicon.

June 2010ANNO entered into a contract with Sichuan Juxing Technologies to supply micro nano silicon as an accelerator agent for cement. This represents ANNO’s second commercialization of micro nano silicon.

September 2010A new application of micro nano silicon as non-halogen phosphate flame retardant additive to robber and plastic materials, have passed stringent flame retardancy standard test

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Application for micro nano silicon

American Nano Silicon Technologies, Inc.

Term Volume By Ton Price Total Sales Estimated Net Margin

24 months 2000 per month $140 per ton $6.7 million 20%

Cement Application

On June 23, 2010 ANNO entered into a formal contract with Sichuan Juxing New Material Co, Ltd which will allow for ANNO to be introduced into the construction industry as an enforcement and accelerator agent for cement.

ANNO, based on its micro nano silicon technology, is currently the only Chinese manufacturer who produces an enforcement and accelerator agent for cement. Micro nano silicon’s ability to operate as an accelerator agent under extremely high temperatures with a chemical rotary kiln that allows customers to reduce their production costs as they are no longer required to use the more expensive lime rotary kilns.

Contract Terms:

Detergent Application

The detergent additive marketplace is highly fragmented with over 300 privately held suppliers.

Due to ANNO’s extensive Research and Development and product capabilities they are able to produce a more cost effective, efficient and functional stain remover than their leading competitors 4A-Zeolite and other sodium phosphate additives.

ANNO’s current expansion efforts will allow for them to potentially replace 4A-Zeolite as the industry leader in the non-phosphate additive marketplace.

China Ultrafine Powder Market (as of Dec. 2009)*

Products Annual Demand Annual Sales ($ million)

4A-zeolite 300,000 tons $155

Micro nano silicon 29,000 tons $12.6

Other additives 10,000 tons $2.2

* China National Refined Chemical’s Information Center, 2010.

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Application for micro nano silicon

American Nano Silicon Technologies, Inc.

Flame retardant additive Application

In 2009, the annual global production of flame retardant plastic material was over 300 million tons, in proportion of 8%, the annual demand for flame retardant additive was over 24 million tons for the same year.

American Nano plans to commence its 30,000 ton production project by the end of 2010. The Company’s new application in robber and plastic industries, as non-halogen phosphate flame retardant exhibits features such as non-toxic, low smoke density and minimal odor when exposed to flame over other competitors.

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American Nano Silicon Technologies, Inc.

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Facilities and Production Lines

30K tons production line

In July 2009, ANNO finished the construction of a 30,000 ton production line for micro nano silicon, and now the production line is being operated at the full capacity.

Because of our advanced production process, the production line could be operated constantly under extremely high temperatures with a chemical rotary kiln. Nowadays, most manufacturers in the same industry are still using lime rotary kilns, which results in smaller production and higher costs.

The Company is now working on extending the current production capacity from 30,000 tons to 120,000 tons per year.

120K tons production line

The construction of the 120,000 ton production line began on April 1, 2010. The whole construction could be divided into 2 installments, the first 60,000 tons installment could be officially completed in 2010, and be operated at the full capacity thereafter.

The entire 120,000 ton capacity will be finished in 2011. We believe we can eventually replace the standing non-phosphate additive 4A-zeolite. And there are more than 300,000 tons of yearly demand.

Our facilities Our plants are located at the Chunfei Industrial Park, Gaoping, Nanchong, Sichuan province,

in an economic development zone plentifully supplied with low-cost water, electricity, gas and communication facilities. It is near the Chengdu-to-Nanchong expressway, the Nanchong-to-Chongqing expressway and the Nanchong railway station.

Our facilities include an approximately 30,000 square meters working area including our major production factories, machine repair workshop and chemical laboratory, plus offices area of about 5,000 square meters

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Product Expansion Timeline

ANNO’s research and development team is committed to continually finding new ways to apply their mico nano silicon agent to new industries.

Below is a timeline that outlines the Company’s past, present and future accomplishments

American Nano Silicon Technologies, Inc.

March, 2010 June, 2010

July, 2009 May, 2010 January., 2011*

Finished the

construction and

implementation of a

fully operating 30K

ton operating

facility.

Successfully raised

$2 million through

a private placement

Initiated the

construction of a

120K ton production

line for micro nano

silicon

Signed sales

agreement for

distributing micro

nano silicon product

as an accelerator

agent for cement

Finished the

construction of

120K ton production

line*

* Based on the Company's estimation

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Micro nano silicon’s competitive advantages

Price:

ANNO is currently selling micro nano silicon in the non-phosphate detergent market for $438 per ton which is in contrast to the $500 per ton for the industry leading 4A-Zeolite.

Micro nano silicon is 60% less expensive than the current market price for sodium phosphate, which is used in a majority of detergent throughout China.

Effectiveness:

Studies have shown that micro nano silicon is a more effective stain remover than its closest competitor 4A-Zeolite.

Micro nano silicon has been shown to have better color retention capabilities and PH balance when compared to industry competitors.

Increasing demand:

The use of non-phosphorus agents will continue to become more accepted throughout China as the Chinese government continues to regulate and discourage the use of phosphorus in detergents.

The strongest industry competitor to micro nano silicon is 4A-Zeolite which currently has no manufacturers in Southwestern China. Current detergent manufacturers are forced to pay high shipping costs in order to satisfy their demand for 4A-Zeolite.

Environmental:

The Chinese government is beginning to discourage the use of phosphorous based detergents because of its negative environmental impact on the Chinese water supply.

A shortage of phosphate since 2004 has lead to significant increase in the market price for sodium phosphate.

American Nano Silicon Technologies, Inc.

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Customers and Distribution

American Nano Silicon Technologies, Inc.

Sales and Marketing

Sales & marketing in Nanchong, Sichuan Province, China ANNO currently has a 19 member sales force. ANNO is leveraging its large and diverse customer ba

se in the Sichuan markets in order to further develop their customer following.

Customers

ANNO has been manufacturing micro nano silicon since July 2009.

Chongqing Trading Company, a state owned enterprise, is ANNO’s largest customer and distribution partner. This relationship has assisted ANNO in increasing the public awareness of the benefits of micro nano silicon and its various applications.

ANNO will continue to expand their customer base and brand awareness by continually working with their current customer base while still reaching out to additional distribution channels.

Distribution Center

Distribution Network

ANNO’s largest distribution partner is Chongqing Trading Company. Chongqing is a well established state owned enterprise who has a well established distribution network. This relationship allows ANNO to have a broad sales network throughout china which currently consists of 7 districts and 8 metro cities.

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Fundamental Growth

The rapid growth in demand for micro nano silicon products has created a need for rapid expansion in our production facilities. Given the current expansion opportunities currently available to ANNO there may be a need for accretive growth capital in the near term.

American Nano Silicon Technologies, Inc.

02, 000, 0004, 000, 0006, 000, 0008, 000, 000

10, 000, 00012, 000, 00014, 000, 00016, 000, 00018, 000, 000

FY 2007 FY 2008 FY 2009

Annual Revenue

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Management and Board of Directors

American Nano Silicon Technologies, Inc.

Name Title Experience

Pu FachunChairman,

CEO and CFO

Founder / President of Sichuan Chunfei Investment Group Co., Ltd. and Nanchong Chunfei Nano-Silicon Technologies Co., Ltd. Over 20 years of management and operating experience in the chemicals business Bachelor Degree and Senior Economist

Zhang Changlong

Director and Vice President

Senior accountant with more than 20 years of experience with Chinese based companies Former General Inspector of Finance of Sichuan Chunfei Investment Group Co., Ltd Served as the section chief of the Treasurer’s Office of Nanping Bureau of Forestry, and section chief of the Treasurer’s Office of

Weft-Knitted Knitting Plant of Sichuan Nanchong Gaoping District, and former CFO of Shenzhen Huifeng Industry Co., Ltd., and financial adviser to Nanchong Jialing Pharmaceutical Co., Ltd

Zhang QiweiDirector and

President

The President of Nanchong Nano-Silicon Technology Co., Ltd Formerly served as Chief Technical Officer of Nanchong Chunfei Investment Group Co Ltd.

Robert J. Fanella

Director

Serves as a senior consultant to an Illinois based LED Lighting Manufacturer at both the subsidiary and headquarter s level who is responsible for overseeing day-to-day financial operations

Served as a senior consultant at Chicago industrial plating manufacturer A co-founder and CFO of Tru-Way, Inc as well as a co-founder and CFO of Microenergy, Inc. Over 35 years of experience in corporate finance and accounting who has extensive experience in developing audit and financial

controls for both privately held and publically traded companies in both the US and China.

He Ping Director

Dr. He earned his doctorate degree from the Chinese Academy of Science – Changchun Institute of Applied Chemistry. Professor of electrochemical studies at Southwest Univerisity of Science and Technology, School of Material Science and

Engineering. Active member of the International Society of Electrochemistry (ISE) and the Chinese Chemical Society (CCS). Over 40 essays written by Dr. He have been cited by the Science Citation Index (SCI) and Engineering Information (EI)

Lü Shuming Director Licensed chemical-engineer with over 30 years of experience in China’s chemical industry Served as a chief engineer and counselor at Chengdu Minhui Daily Chemical Technologies Co., Ltd

Liu Dechun Director Earned a Masters of Science degree from Southwest University of Science and Technology. Served as an instructor at Southwest University of Science and Technology in the Department of Applied Chemistry

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Contact Information

If you have any questions or comments please feel free to contact us at:

American Nano Silicon Technologies, Inc.

Company: American Nano Silicon Technologies, Inc. 100 Wall St, 15F New York, NY 10005 Phone: 212-232-0120 Fax: 212-785-5867

Company: Yan Deng Vice President American Nano Silicon Technologies, Inc. Email: [email protected] Phone: 973-991-8901

Legal Representation: Robert Brantl Robert Brantl, Esq. Legal Counsel Email: [email protected] Phone: 914-693-3026

PCAOB Independent Auditors: Jason Tang, CPA, Partner Auditor Friedman, LLP Email: [email protected] Phone: 856-355-5900