CHINA NEW ENERGY LIMITED PLUS-quoted
Profile
China New Energy Limited

China New Energy Limited, a newly incorporated Jersey company, has been
established as an investment vehicle focusing on the rapidly expanding ethanol
sector in China. The Company is seeking to acquire operational assets relating
to the supply of turnkey technology solutions for the production of ethanol,
edible alcohol and acetic acid from a range of bio-resources, including corn,
sugarcane, cassava and other bio-resources in China. The Company aims to become
a leading player in China's fuel ethanol market by:

Supplying equipment, engineering design, installation, and commissioning of
ethanol production equipment;
After sales service for newly built and reformed factories;
Ownership of ethanol production facilities.

The Directors have identified a number of opportunities which, in their opinion,
will meet the Company's investment strategy. The Company has raised GBP2.2
million from the London Asia Chinese Private Equity Fund.

recent trading update below. anybody got any views? seems like a lot of growth potential and already generating a monthly profit of 750,000. a fairly new issue and from i can tell nobody seem intrested, no trades as of this date.

could be a nice way to tap into china's booming econemy, as well as doing our bit for the environment :-)



News
China New Energy Limited - Trading Update


CHINA NEW ENERGY LIMITED
TRADING UPDATE

China New Energy Ltd ("CNE" or "the Company"), the PLUS listed ethanol
business, is pleased to provide an update of its performance since joining PLUS
in September.

In September the Company acquired the operating assets, technology patents and
work in progress of Guangdong ZhongKe Tianyuan Regeneration Engineering Co. Ltd
and Guangzhou Baojie Co. Ltd for a total consideration of GBP1.9 million. As
part of the acquisition, the Company acquired 25 contracts worth over GBP21
million.

Since the acquisition the Company has made considerable progress in expanding
its business by winning new contracts and developing its operating and
technical infrastructure to meet the increasing demand for its products and
services both domestically and internationally. The Company is currently
generating a monthly profit of over GBP750,000, backed by a strong order book
and a number of pipeline opportunities.

The Company has been actively pursuing new opportunities and is pleased to
announce the signing of three new contracts with a combined value of GBP9.9
million, bringing the total sales order book to over GBP31 million.

Details of the new contracts include:

* GBP4.5 million turn key contract with a leading Romanian bio-ethanol
producer to construct a bio-ethanol production plant in Romania. The plant
will have an annual capacity of 80,000 tons and will serve the local
market and other European countries. Construction of the plant is expected
to be completed by the end of 2007;

* GBP3.8 million contract to design and install an 120,000 ton edible
alcohol plant in Jilin Province, northern China. Construction of the plant
is due to commence in late November 2006 and is expected to be completed
by October 2007; and

* GBP1.6 million contract to design and install an 100,000 ton plant to
produce acetic acid in Jilin Province. Construction of the plant has
commenced and is expected to be completed by August 2007.

The contract with the Romanian bio-ethanol producer is of particular
significance to the Company and is evidence of the recognition of the Company's
brand and leading technology outside, as well as within China. A number of
other international opportunities are being explored in Indonesia and Pakistan,
taking advantage of the Company's strong Chinese position and reputation, and
cost competitive product.

Weijun Yu, CNE Chief Executive, said "The Board is very pleased with the
progress made to date. Our performance is thanks to the strong operating
platform we have created, the dedicated efforts of our people and our growing
reputation, both in China and internationally.

"The new sales contracts are significant wins for the Company and demonstrate
our ability to compete both locally and on the international stage. We are
pursuing a number of new opportunities and are confident of securing further
contracts in the near future."

The directors of China New Energy Limited accept responsibility for this
announcement.

For further information please contact:

Stephen Lucas/Matthew Bao John West/Matt Ridsdale
London Asia Corporate Finance Ltd Tavistock Communications
Tel: 0207 355 7925 Tel: 020 7920 3150
www.londonasiacf.com

For additional information on the Company, visit www.chinanewenergygroup.com

ABOUT CHINA NEW ENERGY LIMITED

CNE is the PLUS listed Jersey incorporated holding company of Guangdong Zhongke
Tianyuan New Energy Technology Co., Ltd ("ZTNE"), a wholly owned subsidiary
based in Guangzhou in Guangdong Province, southeast China. ZTNE is a leading
provider of turnkey technology solutions and equipment in China for the
production of ethanol, edible alcohol and acetic acid.

Fuelled by rapid economic growth, China has become a significant energy
consumer, with its annual increase in energy consumption almost equal to the
total installed capacity in the UK, and usage rising by 16% alone in 2004.
Although China's oil consumption is the second highest in the world, it is
still less than 10% per head of that in the West. Demand growth in China
accounted for 52% of global energy demand growth from 2002-2004. In 2005, China
imported over 44% of its oil consumption and this is set to increase
significantly as China's growth and manufacturing boom continues.

The Chinese government is eager to reduce the country's reliance on oil imports
and to increase the uptake of alternative fuels, both for economic,
environmental and strategic defence reasons. It has enacted various laws and
regulations encouraging the use of renewable energy as a substitute for fossil
fuels, one of which states that vehicle fuel must comprise at least 10% fuel
ethanol in 9 of the 33 provinces in China. This creates a new market for
ethanol production, as previously only one province was operating a trial
system. As more provinces start to implement this policy, China is likely to
face a significant shortage in fuel ethanol. According to the National
Development and Reform Committee, the demand for fuel ethanol in the next five
years will reach 5-7 million tonnes annually, whilst fuel ethanol production in
2005 was only 1.02 million tonnes. Hence the market size is expected to
increase considerably, resulting in significant opportunities in the supply
chain to the ethanol production market.