www.newoceanhk.com

2020 Interim Results and Corporate Update

31 August 2020

1

Important notice and disclaimer

This document and the materials contained herein (the “Materials”) do not constitute or form part of an offer, solicitation or invitation to subscribe or purchase any securities of NewOcean Energy Holdings Limited (the “Company”) nor shall they or any part of them be incorporated by reference or otherwise into the prospectus or otherwise form the basis of or be relied upon in connection with any contract or commitment with respect to the materials or the offering whatsoever. The securities referred to herein have not been and will not be registered under the applicable securities laws of the United States of America, Canada, the People’s Republic of China, or Japan, or any other jurisdiction other than Hong Kong, and, subject to certain exceptions, may not be offered or sold within the United States of America, Canada, the People’s Republic of China, or Japan, or any other jurisdiction other than Hong Kong, or to any national, resident or citizen of United States, Canada, the People’s Republic of China, or Japan, or any other jurisdiction other than Hong Kong. In Hong Kong, no shares of the Company may be offered to the public nor shall a prospectus for subscription of such shares be circulated, unless the prospectus has been formally approved by The Stock Exchange of Hong Kong Limited and duly registered by the Registrar of Companies of Hong Kong. The prospectus and international offering circular of the Company related to the offering in Hong Kong or elsewhere will contain detailed information about the Company and its management as well as the financial statements of the Company. Any decision to purchase or subscribe for securities in the offering should be made solely on the basis of the information contained in the prospectus or international offering circular to be issued by the Company in relation to the offering.The Materials have been prepared by the Company solely for use during its presentation to prospective investors/research analysts held in connection with the proposed offering and may not be taken away, copied, reproduced, distributed, passed on or redistributed directly or indirectly to any other person (whether within or outside your organization/firm) or published, in whole or in part, for any purpose. Neither the Materials nor any part or copy of them may be taken or transmitted into the United States of America, Canada, the People’s Republic of China, or Japan, or any of their respective territories or possessions, or distributed, directly or indirectly, in the United States of America, Canada, the People’s Republic of China, or Japan, or any of their respective territories or possessions. The distribution of the Materials in other jurisdictions may also be restricted by law, and persons who come into possession of the Materials should inform themselves about, and observe, any such restrictions. By attending this presentation and accepting the Materials, you are agreeing to maintain absolute confidentiality regarding the information contained in the Materials and the information contained therein (until notified by the sponsor that research publication is permitted) and to be bound by the restrictions and other limitations set forth herein. Any failure to comply with these limitations may constitute a violation of law and may lead to legal or regulatory action.The information contained in the Materials has not been independently verified. No representation or warranty express or implied is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained herein. It is not the intention to provide, and you may not rely on the Materials as providing, a complete or comprehensive analysis of the Company’s financial or trading position or prospects. Some of the information is still in draft form and will only be finalized at the time of publication of the prospectus and international offering circular relating to the offering. The information and opinions in the Materials are provided as at the date of this presentation and are subject to change without notice. These materials include statements, estimates and financial information that are, or may be deemed to be, “forward-looking statements”. In some cases, these forward-looking statements can be identified by the use of forward-looking terminology, including the terms “believes”, “estimates”, “forecasts”, “plans”, “prepares”, “projects”, “anticipates”, “expects”, “intends”, “may”, “will” or “should” or, in ease case, their negative or other variations or comparable terminology, or by discussions of strategy, plans, objectives, goals, future events or intentions. These forward-looking statements include all matters that are not historical facts. They appear in a number of places throughout the Materials and include, but are not limited to, statements regarding the Company’s intentions, beliefs or current expectations concerning, among other things, results of operations, financial condition, liquidity, prospects, growth, strategies and the household furniture and recliner sofa markets.By their nature, forward-looking statements involve known and unknown risks and uncertainties because they relate to future events and circumstances. Forward-looking statements are not guarantees of future performance and the actual results of the Company’s operations, financial condition and liquidity, and the development of the markets and the industry in which the Company operates may differ materially from those described in, or suggested by, the forward-looking statements contained in the Materials. In addition, even if the results of operations, financial condition and liquidity, and the developments of the markets and the industry in which the Company operates are consistent with the forward-looking statements contained in the Materials, those results or development may not be indicative of results or developments in subsequent periods. A number of factors could cause results and developments to differ materially from those expressed or implied by the forward-looking statements. Except as required by law or any appropriate regulatory authority, the Company undertakes no obligation to publicly release the result of any revisions to any forward-looking statements in the Materials that may occur due to any change in the Company’s expectations or to reflect events or circumstances after the date of this presentation.None of the Company, Macquarie Capital Securities Limited, nor any of its respective affiliates, advisors or representatives accepts any liability whatsoever (in negligence or otherwise) for any loss howsoever arising from any use of the Materials or their contents or otherwise arising in connection with the Materials.

2

Company Overview

Main Business Historic Business Developed Business Expanding Business Developing Business

Business Segments Electronics Liquefied Petroleum Gas (“LPG”)

Oil Products Hydrogen

History of Development Over 23 years 20 years 8 years ~1 year

Remarks Business brought about by NewOcean’spredecessor:•Trading integrated circuits and electronic components related to general mobile phones and smart phones;

The cornerstone business:•Already developed integrated infrastructures (sea terminal, LPG storage) and extensive sales network (bottling plants and refueling stations) for LPG distribution in Guangdong, Hong Kong and Macau;

The rapidly expanding business:•With integrated infrastructures (deep-sea terminal, oil depots, bunker ships) to provide mainly bunkering services in Hong Kong and along the rivers and coastal lines of the Pearl River Delta;

• Auto-fuel trading and engaging in oil products transportation in HK;

•Operating a floating storage in OPL Malaysia and provide bunkering services in Singapore.

Business for the future:• At the encouragement of the Guangzhou government, the Group started to promote auto-hydrogen to logistic trucks in 2019, the first auto-hydrogen refueling station was opened in the same year.

POSITION: A regional energy distributor in Southern China and neighboring districts/countries

NICHE: Solid distribution network; Fast inventory turnover; High logistic efficiency; Diversified customer base

3

Solid Distribution Assets in Strategic Locations

Assets Description LocationCarrying Amount (As at 30/6/2020)

(US$’million)LPG Deep-sea terminal of 20,000 tons storage

capacity, 4 berths; Coastal Line rights Zhuhai, PRC

127 5 auto-LPG refueling stations Guangzhou, PRC

11 bottled LPG refilling plants PRCSUB-TOTAL 127

Oil Products Deep-sea terminal of 70,000 tons storagecapacity

Zhuhai, PRC 28

SUB-TOTAL 28

Oil Product Vessels 11 bunker ships

11 bunker ships

Hong Kong Singapore

P.R.C

22

20SUB-TOTAL 42

Commercial Properties Commercial properties complex Zhuhai 187

Land in HK Hong Kong 3

SUB-TOTAL 190TOTAL 387All assets are free of pledge except of 4 bunker ships operating in HK & Singapore.

4

Market Updates

Market Updates Impact on the business

Global pandemic

Pandemic caused global lockdown led to weak economy activities. The company’s electronic business was seriously disrupted in the first half of 2020. The Company has entered into term contract for integrated circuits (“IC”) purchase, however as all the mobile phone assembling factories in China were closed in February and slowly resuming operations in March, along with poor retail consumption drove down factories demands for IC. The Company’s electronic business suffered a gross loss of HK$432M including inventory provisions.

Despite both LPG and oil products distributed volume was maintained at same level , gross profit was also being affected due to oversupply market.

Pandemic also affect the sales of the Company’s property project in Zhuhai, final building inspection was initially scheduled in February have been postponed.

Oil Price slump

The Company has entered into LPG and oil products derivatives contracts to swap our monthly purchase price to fixed costs, this to hedge against our monthly fixed sales price contracts with our customers.

Oil price slump has created a significant mark-to-market loss of HK$76M as of 30th Jun 2020. The Company also realized HK$87M derivatives loss in 1H2020 for both LPG and oil products, nevertheless these loss were mitigated by the sales profit to our customers.

Bank credit squeeze

After Hin Leong incident, together with huge swings in commodities price prompted by coronavirus crisis, commodities bankers were pulling back from short-term financing. Tighter liquidity constrains the Company’s ability to maintain LPG and oil products sourcing volume. The Company has scaled down our business and only focus on high margin operations such as LPG retail, and marine diesel bunkering.

Receivable recoveryDue to pandemic, the Company decided to make receivables provision of HK$554M, including LPG and oil products receivables.

Market update

Market UpdatesImpact on the business

Global pandemicPandemic caused global lockdown led to weak economy activities. The company’s electronic business was seriously disrupted in the first half of 2020. The Company has entered into term contract for integrated circuits (“IC”) purchase, however as all the mobile phone assembling factories in China were closed in February and slowly resuming operations in March, along with poor retail consumption drove down factories demands for IC. The Company’s electronic business suffered a gross loss of HK$432M including inventory provisions.

Despite both LPG and oil products distributed volume was maintained at same level , gross profit was also being affected due to oversupply market.

Pandemic also affect the sales of the Company’s property project in Zhuhai, final building inspection was initially scheduled in February have been postponed.

Oil Price slumpThe Company has entered into LPG and oil products derivatives contracts to swap our monthly purchase price to fixed costs, this to hedge against our monthly fixed sales price contracts with our customers.

Oil price slump has created a significant mark-to-market loss of HK$76M as of 30th Jun 2020. The Company also realized HK$87M derivatives loss in 1H2020 for both LPG and oil products, nevertheless these loss were mitigated by the sales profit to our customers.

Bank credit squeezeAfter Hin Leong incident, together with huge swings in commodities price prompted by coronavirus crisis, commodities bankers were pulling back from short-term financing. Tighter liquidity constrains the Company’s ability to maintain LPG and oil products sourcing volume. The Company has scaled down our business and only focus on high margin operations such as LPG retail, and marine diesel bunkering.

Receivable recoveryDue to pandemic, the Company decided to make receivables provision of HK$554M, including LPG and oil products receivables.

P&L

HK$'000

5

Performance in the first half of year 2020Business Segment

2014A 2015A 2016A 2017A 2018A 2019A 1H2020

1743 1893 1913 1893 2107 1848 1008

1086 1993 32774355 4494 5617

2640

TONS ‘000

LPG AND OIL PRODUCTS VOLUMELPG Oil Products

LPG, 28%

Oil Products, 59%

Electronic , 13%

1H 2020 Revenue

LPG, 31%

Oil Products, 66%

Electronic , 3%

1H 2019 Revenue

1H2017

1H2018

1H2019

1H2020

Electronic 16 19 33 -433Oil Products 254 332 405 83LPG 507 559 449 401

-600

-400

-200

0

200

400

600

800

1000

HK$’000 GROSS PROFIT IN SEGMENTS

Electronics segment loss includes inventory provision.

6

Financial Performance in 1H2020

HK$’000 1H2020(Unaudited)1H2019

(Unaudited)

Revenue 12,646,211 14,295,140Cost of sales (12,594,313) (13,407,330)

Gross Profit 51,898 887,810Other gains and losses (317,721) 12,907

Other income 78,125 31,938

Selling and distribution expenses (262,290) (249,230)Administrative expenses (181,761) (192,089)Finance costs (146,282) (169,569)Impairment losses on trade and other

receivables (554,012) (8,000)

Share of profits of joint ventures 1,836 (287)Share of profit (loss) of an associate 278 608Profit/(Loss) before taxation (1,329,929) 314,088Taxation (20,803) (12,900)Profit/(Loss) for the period * (1,350,732) 301,188

Consolidated Statement of Profit or Loss

Gross MarginBusiness Segment 1H2020 1H2019Sales and distribution of LPG 11.23% 10.21%

Oil/chemical products 1.10% 4.28%

Sales of electronic products (26.83%) 7.69%

Total 0.41% 6.21%

Other losses are comprise of: Changes in fair values of derivative financial instruments: net

realized loss of HK$87.5million and net unrealized loss of HK$76.6million;

Loss on disposal of PPE: HK$24.8 million for 4 auto-LPG stationsclosure and HK$100.7M single haul of 17 bunker ships in theP.R.C.; and

Net exchange loss of HK$28.1 million.

Selling and distribution expenses increased due to leasing a 350KT oilstorage in Nansha.

Impairment loss includes: Receivables provisions of HK$514 million for LPG and oil products

receivable each; and General provisions of HK$40M due to past due accounts

receivables under expected credit loss model.

LPG segments (tons) 1H2020 1H2019

Wholesale673,000

66.8%469,000

48.0%

Retail335,000

33.2%508,000

52.0%

Total1,008,000

100%977,000

100%

Oil Products in market (tons) 1H2020 1H2019

HK & Singapore1,515,000

57.2%2,191,000

80.1%

P.R.C.1,125,000

42.5%544,000

19.9%

Total2,640,000

100%2,735,000

100%

7

Financial Position in 1H2020

As at As at

HK$’000 30/6/2020(Unaudited)31/12/2019

(Audited)Non-current assetsProperty, plant and equipment 2,139,366 2,254,174Right-of-use assets 505,760 559,486Goodwill 744,040 766,973Other intangible assets 156,086 178,202Interest in an associate 6,797 6,689Interest in a joint venture 20,805 19,265Deposits paid and prepayments 848,126 693,407Deferred tax assets 810 821Total non-current assets 4,421,790 4,479,017Total current assets 9,957,587 12,193,169

Total assets 14,379,377 16,672,186

LiabilitiesBank borrowings 6,584,833 7,054,410Other liabilities 1,248,728 1,643,652Total liabilities 7,833,561 8,698,062

Net Assets Value 6,545,816 7,974,124

Gas and oil plants and facilities, construction in progress and oil vessels accounted for 93.9% of the Group’s property, plant and equipment.

27.5%

0.7%50.3%

4.0%

0.8%

16.2%

0.5%Construction in ProgressBuildingsGas and Oil plant and facilitiesPump and equipment for gas and oilMotor VehiclesOil VesselOthers

Deposits paid and prepayments are mainly comprised of: Prepayments for refinery storage construction in Malaysia of HK$555.1 million; Prepayments for construction of hydrogen processing plant of HK$163.6 million; Deposit paid for a potential acquisition of a land for the construction of

Petroleum & LPG station in PRC of HK$87.4 million; and Deposit paid for a potential acquisition of a land for the construction of LNG

station in PRC of HK$21.3 million.

Other liabilities are mainly comprised of: Trade payables of HK$443.3 million; Other creditors and accrued charges of HK$230.8million; Tax liabilities HK$129.1 million; Derivative financial instruments of HK$126.7 million; and Contract liabilities of HK$88.9 million.

Please see the next page for details of current assets

HK$’000 30/6/2020 31/12/2019

Cash backed loans 328,487 328,487

Shipping mortgage 27,520 33,831

Trade loans 3,158,106 3,158,688

Bank and other loans 3,070,720 3,533,404

TOTAL 6,584,833 7,054,410

8

Financial Position: Current Assets

HK$’000As at

30/6/2020 (Unaudited)

As at31/12/2019

(Audited)Current assetsInventories 1,958,314 1,410,456Trade receivables 3,600,286 4,778,317Other debtors, deposits and prepayments 1,704,817 2,429,078Amount due from an associate 6,234 6,716Derivative financial instruments 46,948 6,606Properties held for sales 144,698 146,841Properties under development for sales 756,585 766,253Pledged bank deposits 354,961 360,218Bank balances and cash 1,384,744 2,288,684Total current assets 9,957,587 12,193,169

Consolidated statement of cashflowNet Operating cashflow 370,105 155,579

Net Investment cashflow (650,301) (143,105)

Net Financing cashflow (647,790) (688,300)

Aged analysis of trade receivables:As at 30/6/2020 31/12/2019

HK$ million HK$ million0 to 30 days 1,688 1,83131 to 60 days 1,404 1,441

61 to 90 days 333 1,172

91 to 180 days 136 296

Over 180 days 39 38Total 3,600 4,778

Oil products and electric products accounted for 98.5% of the Group’s inventories As at 30/6/2020 31/12/2019

HK$ million HK$ millionLPG 29 63Oil Products 1,575 1,068Electronics 354 279Total 1,958 1,410

Properties under development for sales represent the Group’s Zhuhaicommercial properties which are available for sale. Refer to Page 9-12 fordetails.

Other debtors, deposits and prepayments are mainly comprised of:• HK$934.8 million (31 Dec 2019: HK$2.1 billion) purchase prepayment of

LPG and oil products;• HK$455.8 million (31 Dec 2019: HK$62 million) loan advance to

independent 3rd parties.

As at 30/6/2020 31/12/2019Inventory turnaround time 24 days 20 daysReceivables turnaround time 52 days 63 days

9

Financial Position: Total Equity and Net Debt

HK$’000As at

30/6/2020 (Unaudited)

As at31/12/2019

(Audited)Capital and reservesShare Capital 146,812 146,812Share premium and other reserves 6,543,900 7,862,866Non-controlling interests (144,896) (35,554)Total Equity 6,545,816 7,974,124

Net Debt 4,845,128 4,405,508Net Debt / Equity 74.02% 55.25%

Non-controlling interests are comprised of:- JV engaged in marine bunkering in Singapore; and- JV engaged in oil/chemical trading in PRC

• Weighted average no. of shares for calculation of basic earnings per share recorded at 1,468,124,216 (unchanged from 31Dec2019);

• Largest shareholder, the Shum family’s stake remains at 43.89% as of 30 Jun 2020.

In April 2020 a major oil trader in Singapore, Hin Leong Trading (Pte.) Ltd. was placed under judicial management by the Singapore courts (the "Hin Leong Incident") reportedly due to, among other things, defaults in payment of its loans to various banks and financial institutions. The news of the Hin Leong Incident triggered fear in banks in Hong Kong that have business in bulk commodity trade, and thence spurred panic response by a certain number of them. Despite our good repayment record and our explanation that we have no business connection with Hin Leong whatsoever, a number of the Group's banks demanded a reduction or limitation of the documentary service and other short term credit extended to the Group. Given these credit facilities is the live line of our international business, and that the epidemic had halted pre-sale of property in the Zhuhai commercial development schedule for the 1H2020, the Group has experienced short term liquidity pressure in settling bank trust receipts loans when they fall due.

The Company has taken the following measures to mitigate the liquidity pressure and to improve its financial position:1. Actively negotiating with individual banks to release the limitation imposed and extend the existing banking facilities to the Group;2. On a proactive basis negotiating with banks to arrange and agree on a debt restructuring plan;3. Engaged an international firm of accountants as its financial adviser to conduct an independent review of the up-to-date financial position of the

Group with a view to facilitate the above mentioned negotiations with banks; 4. The Group's current operation is carrying out with the existing usable banking facilities and internal available bank and cash. The profit generated

from operation is using to cover the Group's daily operation expenditure and purchases;5. Taking active measures to expedite collections of outstanding receivables;6. Intensify the sales effort of the Zhuhai commercial development through brokers so that sales can resume as soon as circumstance permit; and7. Taking measures to down size the oil products business to reduce operating cost and to generate additional cash through disposal of non-core

asset items for the purpose of payment to banks and/or additional working capital.

10

Commercial Properties Project Update

Location Gang Yi Road, Gongbei District, Zhuhai

Status Construction in progress, commencing on 2020YE

Land Usage Office, Service Apartment, Retail & Carpark

Land Expiry Date

Office / Commercial Loft: 50 years (from 2011 – 2061)

Retail: 40 years (from 2011 – 2051)

Gross Floor Area (GFA) (m2)

84,614 sqm- Office: 47,508 m2- Commercial: 13,444 m2- Underground: 5,053 m2- Carparks & Others: 18,609 m2

No. of Parking Slots 470

Permit for Advance Sales

Obtained in June 2019

Block E

Block D

Block CBlock B

Block A

Retail

11

Commercial Properties Project Update

Commercial Loft Block A Block B

Expected Completion December 2020

Units 103 119

Total GFA (m2) 6,249m2 7,463m2

GFA / Unit 39.88 – 73.92m2 34.67 – 112.44m2

Gross Ceiling Height (m) 3.9m 3.9m

No. of Floors 13 15

Elevators 1 passengers, 1 cargo1 passengers, 1

cargo

Sold Units (% sold) 29 (28%) 8 (7%)

Selling Price –including Decoration (RMB/m2)

RMB32,000 – 43,000/m2

Expected Rental(RMB/Unit/day)

Weekdays: RMB400 – 600/Unit/DayWeekend/Holiday Session:RMB600-

1200/Unit/Day

Property Management Fee (RMB/m2) RMB5.7/m

2

12

Commercial Properties Project Update

Office Block C Block D Block E

Expected Completion August 2020

Units 23 2 84

Total GFA (m2) 5,779m2 1,641m2 26,376m2

GFA / Unit 238.25 –265.45m2 820.5m2 310.67 –

315.86m2

Gross Ceiling Height (m) 3.9m 4.5m

4/F: 4.5m 5-12/F:3.9m

13-24/F: 4.2m

No. of Floors 12 2 21

Elevators 1 passengers, 1 cargo

1 passengers, 1 cargo 3 passengers, 1 cargo

Selling Price (RMB/m2) RMB30,000/m

2

Expected Return Rate(RMB/m2/month)

RMB120 - 140 /m2/month

13

Commercial Properties Project Update

Retail / Mall

Expected Completion August 2020

Units 126

Total GFA (m2) 18,497m2

GFA / Unit 13.46 – 589.04m2

Gross Ceiling Height (m) 4.5m

No. of Floors 3 + basement

Elevators2 set of escalators

2 passenger elevators2 cargo elevators

Expected Rental (RMB/m2/month)

RMB110-180/m2/month

Pre-leased Status 60%

Pre-leased Tenants I Dreams Cinema, etc.

14

Core Business Outlook

LPG The retail markets located in the Southern China region (including Macau and Hong Kong) will still be the core of our business.

Exploring further opportunities to develop more end-user markets for our bottled LPG. Meanwhile, we will enhance our management towards distributors and back them with stronger support in order to improve our sales volume, and thus our profitability;

Actively seeking industrial users of LPG. Industrial demand has been in fast growth over the years, this to replace the lower auto-LPG sales volume;

As to the expansion of our business to the overseas markets, we have begun wholesaling LPG to Africa two years ago. At present, we are in the search of suitable land parcels in Africa for the construction of LPG terminal gas plants and bottling plants. We aim to tap into the local end-user markets as soon as possible, which are expected to yield healthy return on capital.

Oil Products Modestly scaled down while placing emphases on the sales of products with high gross profits as well as cost saving measures;

Operation costs for HK bunkering business are relatively high, the Group is committed to selling wholesale to clients who are distributors, and to lease its existing bunker vessels to wholesalers;

Certain level of marine bunkering business will remain in Singapore, focusing on HSFO with stable margin due to less competition;

• Meanwhile, the Group will take the occupancy of ~100,000 tons out of the total leased capacity of 300,000 tons, while the remaining 200,000 tons will be leased to third parties for cost saving purposes.

• Once the pandemic of Covid-19 subsides, the Group will look for suitable investment partners to proceed its refinery project in Malaysia. We are confident that the products manufactured by the refinery upon its completion will contribute a significant part of the Group’s annual oil and gas sales volume. From then, the Group’s oil and gas business will be able to progress from being passively dependent on the supply from external sources, to be more genuinely self-sufficient.

Electronics• The Group recorded losses in this project because of the instability on the market, thus will significantly slash the resources invested in such business.

15

Investor Relations contacts

Mr Lawrence Shum (Managing and Executive Director)Email: lawrenceshum@newoceanhk.com

Ms Angeline Wong (Deputy General Manager and Head of IR)Email: angelinewong@newoceanhk.comOffice no: +852 2866 7556HK mobile: +852 5322 3302

mailto:lawrenceshum@newoceanhk.commailto:angelinewong@newoceanhk.com

Slide Number 1Important notice and disclaimerSlide Number 3Solid Distribution Assets in Strategic LocationsSlide Number 5Slide Number 6Slide Number 7Slide Number 8Slide Number 9Slide Number 10Commercial Properties Project UpdateCommercial Properties Project UpdateCommercial Properties Project UpdateCommercial Properties Project UpdateCore Business OutlookInvestor Relations contacts