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Investor Presentation
                           July 2010




We make consumer products better, stronger, safer
and longer lasting.
Safe Harbor Statement


Under the Private Securities Litigation Reform Act of 1995: Any statements set forth
herein that are not historical facts are forward-looking statements that involve risks
and uncertainties that could cause actual results to differ materially from those in the
forward-looking statements.


Potential risks and uncertainties include, but are not limited to, such factors as
unanticipated changes in product demand, interruptions in the supply, downturns in the
Chinese economy, changes in applicable regulations, and other information detailed
from time to time in the Company's filings and future filings with the United States
Securities and Exchange Commission. Accordingly, although the Company believes
that the expectations reflected in such forward-looking statements are reasonable,
there can be no assurance that such expectations will prove to be correct.




                                                                                           1
China Ruitai’s Product
                          Nonionic Cellulose Ether

                                      What is Cellulose Ether
    Cellulose ether is an organic, cotton-based chemical that dissolves in water and solvents for
     use as a thickening and bonding agent in liquids and solids and a stabilizer in foods.

•   As an adhesive, Hydroxypropyl Methyl Cellulose (“HPMC”) are used as binding agents in
    adhesives such as glues or other construction materials.
•   As a food stabilizer or filler, Microcrystalline Cellulose (“MC”) is a stabilizer in foods or
    inactive filer in tablets and pharmaceuticals.
•   As a thickening and bonding agent, Hydroxyethyl Cellulose (“HC’) and Ethyl Cellulose
    (“EC”) are used in cosmetics, shampoos, gels as well as pharmaceuticals.
•   Ginned cotton is the key raw materials for producing cellulose ether (45% of total COGS).




          Cotton Crops                       Cotton .                         Cellulose Ether       2
Company’s Vision
President Xing Fu Lu
As manufacturing of consumer products
mature in China, we want to be the leading
supplier of cellulose ether in the Chinese
market and a recognized exporter of
cellulose ether worldwide. Since our
genesis as a Company in 2000, we have
continually strived to develop our
reputation and brand name in China and
abroad. We bring the same level
enthusiasm to our daily management of our
Company and our relationship with our
current and prospective investors.

We see a bright future for our Company as
we look to expand our product portfolio,
increase our customer base and research
new product opportunities in specialty       3
chemicals.
Key Investment Highlights

 “We make consumer products better, stronger, safer and
                   longer lasting”

       Leading cellulose ether manufacturer in China

Global sales network with customers in China, the U.S.,
        South Korea, Europe, Japan, India etc.
Diversified product portfolio with 12 major products and over
                   260 unique categories

    Developing new products to address new customers

 Experienced management team with proven track record
                                                                4
Select Financial
China RuiTai International Holding Co., Ltd.   OTCBB: CRUI
Price at (7/12/2010)                           $1.15
52-Week range                                  $0.20 - $1.60
Market Capitalization                          $30.0 M
Total Common Shares Outstanding                26,000,000
Miscellaneous warrants                         350,000
2009 Revenue                                   $35.7 M   ▼ 16%
2009 Net Income                                $5.7 M    ▲ 8.4%
2009 EPS                                       $0.21     ▲ 8.7%
2010 Revenue Guidance                          $43.0 M ▲ 20.4%
2010 Net Income Guidance                       $7.0 M ▲ 22.8%


                                                                  5
Corporate Overview China RuiTai

                                                                       Shandong
                                                                         Ruitai




 Original manufacturer of cellulose ether in China
 Located in Wenyang, Shandong province, Ruitai is one of the largest non-ionic
  cellulose ether producers in China
 Twelve major product lines marketed under the trademarked brand names “RuiTai™”
  and “Rutocel™” through 30 distribution office throughout China.
 10 production lines with annual production capacity of 8,500 tons
 National “Key Hi-Tech” enterprise award for excellence in research, production and
  marketing capability
 555 full-time employees
                                                                              6
Corporate History
•  In Oct, Tai An Ruitai                              • MCC was developed
  Cellulose Co, Ltd. was established                  • 7th production line with
• 1st and 2nd production lines with Annual              annual capacity of 450
  designed production capacity was                      tons was launched
  500 tons (HPMC, MC)


                  • In July, H-HPC was developed                                                          • 10th production line with
                  • 4th HPC production line was launched
                                                                     • 8th production line with
                                                                        annual capacity of 1300              annual capacity of 500
                    (annual production capacity 170 tons)                                                    tons of EC launched
                  • 5th production line with annual capacity            tons was launched
                    of 750 tons was launched




     2000         2001         2002          2003         2004       2005          2006     2007       2008      2009     2010



                                • HEMC was developed
                                • 6th production line with                   • 9th production line with annual
                                  annual capacity of 3000                       capacity of 1500 tons was launched
                                  tons was launched                          • In November, Shandong Ruitai Co,
                                                                               Ltd. conducted RTO on OTCBB

          • In May, EC was
            successfully developed
          • 3rd HEC production
            line was launched (annual                                                                                           7
            production capacity 500 tons)
Product Lines

            12 major product lines covering 260 different applications

HPMC
(Hydroxypropyl Methyl Cellulose)
Epoxy component for cement and                     Product Mix
adhesive applications.
                                            18%
MC                                    3%
(Microcrystalline Cellulose)         5%
Consumption grade for toothpaste,
pharmaceutical applications and      4%
food additives                                                           70%


HEC and EC                                 HPMC    MC     EC      HEC      Other
(Hydroxyethyl Cellulose and Ethyl
Cellulose)
Normal grade for shampoo, paint                          FY2009
and glossy gels and                                                                8
pharmaceuticals
Product Uses and Applications

          Wide Applications for Non-Ionic Cellulose Ether
Construction
      Latex paint, cement applications as
      thickener and adhesive

Pharmaceutical
     Membrane reagent, stabilizer,
     thickener

Food and Personal Care
     Thickening agent in jam, ice cream,
     and toothpaste

Cosmetics
    Thickener for shampoo and lipstick

Petro-chemical
                                                            9
       Basic component in PVC
Global Demand

                Global demand for nonionic cellulose ether in 2009
            was 650K tons, expected to reach 750K tons in 2010* with a
                            Long –term CAGR of 9.1%

                                       Nonionic cellulose ether global
                                            demand by industry
                                            15%
                                                                       25%

                        15%




                                                            45%
                                           Pharmaceutical         Construction
                                           PVC                    Other




Source: * Cellulose Industry Association
                                                                                 10
Domestic Demand
                       Nonionic cellulose ether consumption by industry
                                                 HPMC

                                              Construction
                       EC                Latex paint, mortar dry
                                             mix, paint filler            HPMC
             Pharmaceutical                  25,000 tons/yr
           Membrane re-agent,
                                                                        Petroleum
           disperser, stabilizer,
                                                                   HPMC being used in
                thickener
                                                                    petroleum drilling
              10,000 tons/yr
                                                                      8,000 tons/yr
             MC. HEC & EC                  Domestic Market
                                            Total: 66,500
            Food & Cosmetic                    tons/yr                    HPMC
         Toothpaste, ice cream,
        eye-drops, thickener and                                           Others
                stabilizer                                              e.g. Military
              3,500 tons/yr                                        5,000 tons/yr or above
                                                 PVC
                                         HPMC improves quality
                                           and performance
                                            15,000 tons/yr


Domestic output of nonionic cellulose ether in 2009 was around 45,000 tons. The
            gap between output and demand was fulfilled by import
                                                                                            11
Source: Cellulose Industry Association
Attractive Industry Outlook


  Domestic demand driven by key                                             International markets also
consumer and infrastructure verticals                                 provide near-medium term opportunity

•Policy stimulus in 2010: Construction
                                                                       • Attractive international marketplace
 materials go to village*
                                                                       looking for lower cost cellulose products.
•Product properties difficult to substitute



    China should maintain labor and
                                                                          Industry consolidation opportunity
      raw material cost advantage

  • China Ruitai’s products are less                                  • Fragmented market offers capacity and
  expensive than imports and competitive in                           customer growth through acquisitions
  export markets



                                                                                                                12
Source: * No. 1 documents from Central Government in 2010 issued at Jan 31st 2010
Facilities and Production Lines

•   Staff of 555 including manufacturing on 10
    production lines, sales, marketing, administration
    and research and development.
•   For the last ten years, China Ruitai has built a
    succession of production lines, each year.
•   Current capacity of 10 production lines total
    approximately 8,500 tons per year.
•   Production lines are able to manufacture 260
    different types of cellulose ether tailored to
    specific product manufacturing needs.
•   Lines are able to “adapt” to new product
    requirements and differing blends of cellulose
    ethers specific to customers’ product
    requirements.

                                                         13
Research and Development

•   Researcher of 36 and actively
    recruiting from top chemical
    engineering programs in the
    Shandong Province.
•   Long-term relationship with
    prestigious academic institutes:
     –   Guangzhou Chemical Research
         Institute
     –   Jinxi Chemical Research Institute
     –   Shenyang Medical College
     –   China Pharmaceutical University
     –   Wuxi Chemical Research Institute
•   New products introduced over the
    last few years include HPMC, MC,
    HPC, and EC.                                14
Sales and Customer Base


 Controlled sales network                     (95%) direct sales to the customer

                                              Trade show expansion

                                              4 sales offices in Beijing and Shanghai

                                              Additional sales offices in Guangzhou, Qingdao,
                                              Nanjing, Chongqing, Chengdu, Shenyang and
                                              Urumqi

Broad customer base                           Export: US, Europe, Japan, India, South Korea

                                              Domestic distribution into over 30 provinces
                                              managed by 30 sales offices



Source: * 12 months ended December 31, 2009                                                   15
Competitive Landscape


            International                             Domestic
Established Competitors include Dow      Fragmented market with majority focused
Chemical (US), Shin-Etsu (Japan),        on the construction industry
Hercules (US), and Clariant Co           Relatively concentrated market in
(Germany), Samsung Fine (South           pharmaceutical, food and petro-chemical
Korea)                                   industry
Higher price due to high production      Main established competitors are:
and labor costs associated with cotton
cultivation and procurement                 ShanDong Heda - 5,000 tons/yr

Foreign companies have difficulty            Hercules China - 3,000 tons/yr
competing with Chinese producers
                                             Huzhou Zhanwang – 3,000 tons/yr
based on price


           With 8,500 tons of annual production, China Ruitai is the
                        Leading Manufacturer in China
                                                                               16
Management Team
Management                                 Experience

              • Chairman Ma started the Company in 2000 was the original manufacturer of cellulose ether
  Damming       in China.
     Ma       • Mr. Ma is a Professional Accountant with close to 20 years of experience in the chemical
 Chairman &     industries in China.
    CEO       • He has formerly served as Finance Manager for FeiCheng JinTai Company, FeiCheng Oil
                Chemical Plant, and FeiCheng RuiTai Fine Chemical Company, Ltd.


              • Xing Fu Lu is a professional engineer with over 25 years of experience.
 Xing Fu Lu   • Previously the General Manager in FeiCheng Oil Chemical Plant, and FeiCheng RuiTai
 President      Fine Chemical Company, Ltd



              • Gang Ma was appointed Chief Financial Officer on November 8, 2007.
 Gang Ma      • Previously, Mr. Ma worked for Shangdong GMB Company from August 1995 to July 1999 in
  CFO           the company’s financial and accounting department.



   Crystal    • Worked as associate in PricewaterCoopers investment management group.
 Tang, VP     • Graduated from University of Illinois with a Master’s of Accounting.
 of Finance
                                                                                                   17
Revenues
USD in millions


   $50
                                         $43.0
             $41.4
   $40                          $37.7
                       $35.7

   $30


   $20

                                                 $10.2
   $10                                                    $8.2


    $0

             2008      2009    2010TTM   2010G   1Q2010   1Q2009


                                                                   18
Gross Profit and Margins
USD in millions

                   $13.0
$14                                                                      60%
          $11.9                 $11.9     $11.95
$12                                                                      50%

$10
                                                                         40%
 $8
                   31.4%        33.3%                                    30%
          31%                              31.6%
 $6
                                                       $3.30   $3.25     20%
 $4

                                                       32.3%   39.5%     10%
 $2

 $0                                                                      0%
          2007     2008         2009      2010TTM     1Q2010   1Q2009
                                                                        19
                           Gross Profit     Gross Margin
Healthy Net Income Growth
 USD in millions
16.3%
 $7                                      $6.3                           60%
                               $5.7
 $6
                    $5.2                                                50%
          $4.9
 $5
                                                                        40%
 $4
                                         16.7%                          30%
 $3
         12.7%     12.6%      15.4%                    $1.96
                                                               $1.43    20%
 $2

 $1                                                    16.3%            10%
                                                                17.2%
 $0                                                                     0%
          2007      2008      2009      2010TTM    1Q2010      1Q2009

                           Net Income     Net Margin                     20
Income Statement

                                           FY 2008       FY 2009       Q1 2010

REVENUES                                  $41,135,497   $35,736,104   $10,238,256

Less: Cost of Goods Sold                  28,124,549    23,865,156     6,929,872

Gross Profits                             13,101,948    11,870,948     3,308,384

OPERATING EXPENSES

    Selling Expenses                       2,002,852     1,547,688     359,075

    General and Administrative Expenses    2,741,567     2,611,721     284,252

Total Operating Expenses                   4,744,419     4,159,409     643,327

    Interest Expenses                     (2,840,105)   (2,473,370)    (578,487)

    Interest Income                        1,721,419     2,370,482     391,180

Net Income before Income Taxes             6,985,53      7,567,816     2,605,221

Less: Provision for Income Taxes           1,746,314     1,891,955     646,302

Net Income                                 5,238,939     5,675,861     1,939,530

Earnings Per Share                           $0.19         $0.21         $0.07

                                                                                   21
Summary Balance Sheet

                                March 31, 2010   March 31, 2009
CURRENT ASSETS
 Cash and Equivalents             $7,953,190      $10,174,528

 Restricted Cash                  32,274,000       33,054,466
 Accounts Receivable              7,665,940        4,098,729
 Inventory                        7,581,269        8,132,681
Total Current Assets              65,275,384       64,390,196


Property, Plant and Equipment     13,503,313       13,204,825
Commercial Leasing Assets         36,607,620       36,710,934
Total Assets                     120,363,054      120,183,732

CURRENT LIABILITIES
 Short-term bank loan             25,370,298       27,195,342
 Accounts Payable                 6,694,910        6,175,266
 Notes Payable                    48,557,700       50,020,476
 Taxes Payable                    5,574,445        5,277,239
Total Current Liabilities         94,299,530       96,152,147

                                                                  22
Total Stockholder's Equity        24,071,417       22,045,471
Summary Cash Flow

                                            March 31, 2010 March 31, 2009
Cash Flows from Operating Activities
Net Income                                    $1,958,919     $1,413,972
Depreciation and Amortization                   564,625        311,395
 Restricted cash                                879,900      (9,931,952)
 Noted receivable                              (566,011)      2,607,913
Accounts Receivable                           (3,553,625)    (1,163,972)
Inventory                                       575,753         52,815
Accounts Payable                                770,749        900,750
NET CASH PROVIDED BY OPERATIONS                 730,568       2,667,466

NET CASH USED IN INVESTING ACTIVITIES          (609,265)     (5,373,235)

Cash Flows from Financing Activities
Proceeds from bank loans                       6,003,851
Repayment of bank loans                       (7,910,301)     (730,293)
Due to a related party                         (347,609)
Loan from employees                            (118,513)       238,785
NET CASH PROVIDED BY FINANCING ACTIVITIES     (2,372,572)     (491,508)

CASH AND CASH EQUIVALENTS BEGINNING OF
PERIOD                                        10,174,528      5,319,456
CASH AND CASH EQUIVALENTS END OF PERIOD       7,953,190       2,129,321     23
Growth Strategies


Capture greater domestic share through aggressive sales
                and marketing programs
 Capacity expansion focused on higher margin products
               (EC, HPC, HEC, HPMC)

       Grow international markets via distributors

R&D focus to develop new products for specific industries

             Increase Ruitai™ brand equity


                                                            24
Contact Us

                                        Auditor: Bernstein & Pinchuck LLP
Company:                                Drew Bernstein
Crystal Tang VP - US Office             Seven Penn Plaza,New York, NY 10001
(212)-899-5131 Fax:(212) 899-3189       (212) 279-7900
1221 Avenue of Americas Suite 4200
New York, NY 10020                      Internal Control advisor: UHY Advisors
crystal@rutocel.com                     Melanie Chen
Mr. Dianmin Ma, CEO                     19 west 44th street,New York, NY 10036
Wenyang Town, Feicheng City ShanDong,   (212) 381-4700
China 271603
Telephone: 86 538 38 50 703             Attorney: Loeb & Loeb, LLP
http://www.ruitai.com                   Mitchell S. Nussbaum
http://www.rutocel.com                  345 Park Avenue, New York, NY10154
                                        212.407.4159/212.504.3013
Investor Relations:
John T. Mattio, SVP                     PRC Attorney: B & D Law Firm
HC International, CT and NY             Andy Gu
(203) 616 5144                          86 10 6478 9105
John.mattio@hcinternational.net         www.bdlawyer.com.cn
                                                                             25

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CRUI July 2010 Investor Presentation

  • 1. Investor Presentation July 2010 We make consumer products better, stronger, safer and longer lasting.
  • 2. Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995: Any statements set forth herein that are not historical facts are forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Potential risks and uncertainties include, but are not limited to, such factors as unanticipated changes in product demand, interruptions in the supply, downturns in the Chinese economy, changes in applicable regulations, and other information detailed from time to time in the Company's filings and future filings with the United States Securities and Exchange Commission. Accordingly, although the Company believes that the expectations reflected in such forward-looking statements are reasonable, there can be no assurance that such expectations will prove to be correct. 1
  • 3. China Ruitai’s Product Nonionic Cellulose Ether What is Cellulose Ether Cellulose ether is an organic, cotton-based chemical that dissolves in water and solvents for use as a thickening and bonding agent in liquids and solids and a stabilizer in foods. • As an adhesive, Hydroxypropyl Methyl Cellulose (“HPMC”) are used as binding agents in adhesives such as glues or other construction materials. • As a food stabilizer or filler, Microcrystalline Cellulose (“MC”) is a stabilizer in foods or inactive filer in tablets and pharmaceuticals. • As a thickening and bonding agent, Hydroxyethyl Cellulose (“HC’) and Ethyl Cellulose (“EC”) are used in cosmetics, shampoos, gels as well as pharmaceuticals. • Ginned cotton is the key raw materials for producing cellulose ether (45% of total COGS). Cotton Crops Cotton . Cellulose Ether 2
  • 4. Company’s Vision President Xing Fu Lu As manufacturing of consumer products mature in China, we want to be the leading supplier of cellulose ether in the Chinese market and a recognized exporter of cellulose ether worldwide. Since our genesis as a Company in 2000, we have continually strived to develop our reputation and brand name in China and abroad. We bring the same level enthusiasm to our daily management of our Company and our relationship with our current and prospective investors. We see a bright future for our Company as we look to expand our product portfolio, increase our customer base and research new product opportunities in specialty 3 chemicals.
  • 5. Key Investment Highlights “We make consumer products better, stronger, safer and longer lasting” Leading cellulose ether manufacturer in China Global sales network with customers in China, the U.S., South Korea, Europe, Japan, India etc. Diversified product portfolio with 12 major products and over 260 unique categories Developing new products to address new customers Experienced management team with proven track record 4
  • 6. Select Financial China RuiTai International Holding Co., Ltd. OTCBB: CRUI Price at (7/12/2010) $1.15 52-Week range $0.20 - $1.60 Market Capitalization $30.0 M Total Common Shares Outstanding 26,000,000 Miscellaneous warrants 350,000 2009 Revenue $35.7 M ▼ 16% 2009 Net Income $5.7 M ▲ 8.4% 2009 EPS $0.21 ▲ 8.7% 2010 Revenue Guidance $43.0 M ▲ 20.4% 2010 Net Income Guidance $7.0 M ▲ 22.8% 5
  • 7. Corporate Overview China RuiTai Shandong Ruitai  Original manufacturer of cellulose ether in China  Located in Wenyang, Shandong province, Ruitai is one of the largest non-ionic cellulose ether producers in China  Twelve major product lines marketed under the trademarked brand names “RuiTai™” and “Rutocel™” through 30 distribution office throughout China.  10 production lines with annual production capacity of 8,500 tons  National “Key Hi-Tech” enterprise award for excellence in research, production and marketing capability  555 full-time employees 6
  • 8. Corporate History • In Oct, Tai An Ruitai • MCC was developed Cellulose Co, Ltd. was established • 7th production line with • 1st and 2nd production lines with Annual annual capacity of 450 designed production capacity was tons was launched 500 tons (HPMC, MC) • In July, H-HPC was developed • 10th production line with • 4th HPC production line was launched • 8th production line with annual capacity of 1300 annual capacity of 500 (annual production capacity 170 tons) tons of EC launched • 5th production line with annual capacity tons was launched of 750 tons was launched 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 • HEMC was developed • 6th production line with • 9th production line with annual annual capacity of 3000 capacity of 1500 tons was launched tons was launched • In November, Shandong Ruitai Co, Ltd. conducted RTO on OTCBB • In May, EC was successfully developed • 3rd HEC production line was launched (annual 7 production capacity 500 tons)
  • 9. Product Lines 12 major product lines covering 260 different applications HPMC (Hydroxypropyl Methyl Cellulose) Epoxy component for cement and Product Mix adhesive applications. 18% MC 3% (Microcrystalline Cellulose) 5% Consumption grade for toothpaste, pharmaceutical applications and 4% food additives 70% HEC and EC HPMC MC EC HEC Other (Hydroxyethyl Cellulose and Ethyl Cellulose) Normal grade for shampoo, paint FY2009 and glossy gels and 8 pharmaceuticals
  • 10. Product Uses and Applications Wide Applications for Non-Ionic Cellulose Ether Construction Latex paint, cement applications as thickener and adhesive Pharmaceutical Membrane reagent, stabilizer, thickener Food and Personal Care Thickening agent in jam, ice cream, and toothpaste Cosmetics Thickener for shampoo and lipstick Petro-chemical 9 Basic component in PVC
  • 11. Global Demand Global demand for nonionic cellulose ether in 2009 was 650K tons, expected to reach 750K tons in 2010* with a Long –term CAGR of 9.1% Nonionic cellulose ether global demand by industry 15% 25% 15% 45% Pharmaceutical Construction PVC Other Source: * Cellulose Industry Association 10
  • 12. Domestic Demand Nonionic cellulose ether consumption by industry HPMC Construction EC Latex paint, mortar dry mix, paint filler HPMC Pharmaceutical 25,000 tons/yr Membrane re-agent, Petroleum disperser, stabilizer, HPMC being used in thickener petroleum drilling 10,000 tons/yr 8,000 tons/yr MC. HEC & EC Domestic Market Total: 66,500 Food & Cosmetic tons/yr HPMC Toothpaste, ice cream, eye-drops, thickener and Others stabilizer e.g. Military 3,500 tons/yr 5,000 tons/yr or above PVC HPMC improves quality and performance 15,000 tons/yr Domestic output of nonionic cellulose ether in 2009 was around 45,000 tons. The gap between output and demand was fulfilled by import 11 Source: Cellulose Industry Association
  • 13. Attractive Industry Outlook Domestic demand driven by key International markets also consumer and infrastructure verticals provide near-medium term opportunity •Policy stimulus in 2010: Construction • Attractive international marketplace materials go to village* looking for lower cost cellulose products. •Product properties difficult to substitute China should maintain labor and Industry consolidation opportunity raw material cost advantage • China Ruitai’s products are less • Fragmented market offers capacity and expensive than imports and competitive in customer growth through acquisitions export markets 12 Source: * No. 1 documents from Central Government in 2010 issued at Jan 31st 2010
  • 14. Facilities and Production Lines • Staff of 555 including manufacturing on 10 production lines, sales, marketing, administration and research and development. • For the last ten years, China Ruitai has built a succession of production lines, each year. • Current capacity of 10 production lines total approximately 8,500 tons per year. • Production lines are able to manufacture 260 different types of cellulose ether tailored to specific product manufacturing needs. • Lines are able to “adapt” to new product requirements and differing blends of cellulose ethers specific to customers’ product requirements. 13
  • 15. Research and Development • Researcher of 36 and actively recruiting from top chemical engineering programs in the Shandong Province. • Long-term relationship with prestigious academic institutes: – Guangzhou Chemical Research Institute – Jinxi Chemical Research Institute – Shenyang Medical College – China Pharmaceutical University – Wuxi Chemical Research Institute • New products introduced over the last few years include HPMC, MC, HPC, and EC. 14
  • 16. Sales and Customer Base Controlled sales network (95%) direct sales to the customer Trade show expansion 4 sales offices in Beijing and Shanghai Additional sales offices in Guangzhou, Qingdao, Nanjing, Chongqing, Chengdu, Shenyang and Urumqi Broad customer base Export: US, Europe, Japan, India, South Korea Domestic distribution into over 30 provinces managed by 30 sales offices Source: * 12 months ended December 31, 2009 15
  • 17. Competitive Landscape International Domestic Established Competitors include Dow Fragmented market with majority focused Chemical (US), Shin-Etsu (Japan), on the construction industry Hercules (US), and Clariant Co Relatively concentrated market in (Germany), Samsung Fine (South pharmaceutical, food and petro-chemical Korea) industry Higher price due to high production Main established competitors are: and labor costs associated with cotton cultivation and procurement ShanDong Heda - 5,000 tons/yr Foreign companies have difficulty Hercules China - 3,000 tons/yr competing with Chinese producers Huzhou Zhanwang – 3,000 tons/yr based on price With 8,500 tons of annual production, China Ruitai is the Leading Manufacturer in China 16
  • 18. Management Team Management Experience • Chairman Ma started the Company in 2000 was the original manufacturer of cellulose ether Damming in China. Ma • Mr. Ma is a Professional Accountant with close to 20 years of experience in the chemical Chairman & industries in China. CEO • He has formerly served as Finance Manager for FeiCheng JinTai Company, FeiCheng Oil Chemical Plant, and FeiCheng RuiTai Fine Chemical Company, Ltd. • Xing Fu Lu is a professional engineer with over 25 years of experience. Xing Fu Lu • Previously the General Manager in FeiCheng Oil Chemical Plant, and FeiCheng RuiTai President Fine Chemical Company, Ltd • Gang Ma was appointed Chief Financial Officer on November 8, 2007. Gang Ma • Previously, Mr. Ma worked for Shangdong GMB Company from August 1995 to July 1999 in CFO the company’s financial and accounting department. Crystal • Worked as associate in PricewaterCoopers investment management group. Tang, VP • Graduated from University of Illinois with a Master’s of Accounting. of Finance 17
  • 19. Revenues USD in millions $50 $43.0 $41.4 $40 $37.7 $35.7 $30 $20 $10.2 $10 $8.2 $0 2008 2009 2010TTM 2010G 1Q2010 1Q2009 18
  • 20. Gross Profit and Margins USD in millions $13.0 $14 60% $11.9 $11.9 $11.95 $12 50% $10 40% $8 31.4% 33.3% 30% 31% 31.6% $6 $3.30 $3.25 20% $4 32.3% 39.5% 10% $2 $0 0% 2007 2008 2009 2010TTM 1Q2010 1Q2009 19 Gross Profit Gross Margin
  • 21. Healthy Net Income Growth USD in millions 16.3% $7 $6.3 60% $5.7 $6 $5.2 50% $4.9 $5 40% $4 16.7% 30% $3 12.7% 12.6% 15.4% $1.96 $1.43 20% $2 $1 16.3% 10% 17.2% $0 0% 2007 2008 2009 2010TTM 1Q2010 1Q2009 Net Income Net Margin 20
  • 22. Income Statement FY 2008 FY 2009 Q1 2010 REVENUES $41,135,497 $35,736,104 $10,238,256 Less: Cost of Goods Sold 28,124,549 23,865,156 6,929,872 Gross Profits 13,101,948 11,870,948 3,308,384 OPERATING EXPENSES Selling Expenses 2,002,852 1,547,688 359,075 General and Administrative Expenses 2,741,567 2,611,721 284,252 Total Operating Expenses 4,744,419 4,159,409 643,327 Interest Expenses (2,840,105) (2,473,370) (578,487) Interest Income 1,721,419 2,370,482 391,180 Net Income before Income Taxes 6,985,53 7,567,816 2,605,221 Less: Provision for Income Taxes 1,746,314 1,891,955 646,302 Net Income 5,238,939 5,675,861 1,939,530 Earnings Per Share $0.19 $0.21 $0.07 21
  • 23. Summary Balance Sheet March 31, 2010 March 31, 2009 CURRENT ASSETS Cash and Equivalents $7,953,190 $10,174,528 Restricted Cash 32,274,000 33,054,466 Accounts Receivable 7,665,940 4,098,729 Inventory 7,581,269 8,132,681 Total Current Assets 65,275,384 64,390,196 Property, Plant and Equipment 13,503,313 13,204,825 Commercial Leasing Assets 36,607,620 36,710,934 Total Assets 120,363,054 120,183,732 CURRENT LIABILITIES Short-term bank loan 25,370,298 27,195,342 Accounts Payable 6,694,910 6,175,266 Notes Payable 48,557,700 50,020,476 Taxes Payable 5,574,445 5,277,239 Total Current Liabilities 94,299,530 96,152,147 22 Total Stockholder's Equity 24,071,417 22,045,471
  • 24. Summary Cash Flow March 31, 2010 March 31, 2009 Cash Flows from Operating Activities Net Income $1,958,919 $1,413,972 Depreciation and Amortization 564,625 311,395 Restricted cash 879,900 (9,931,952) Noted receivable (566,011) 2,607,913 Accounts Receivable (3,553,625) (1,163,972) Inventory 575,753 52,815 Accounts Payable 770,749 900,750 NET CASH PROVIDED BY OPERATIONS 730,568 2,667,466 NET CASH USED IN INVESTING ACTIVITIES (609,265) (5,373,235) Cash Flows from Financing Activities Proceeds from bank loans 6,003,851 Repayment of bank loans (7,910,301) (730,293) Due to a related party (347,609) Loan from employees (118,513) 238,785 NET CASH PROVIDED BY FINANCING ACTIVITIES (2,372,572) (491,508) CASH AND CASH EQUIVALENTS BEGINNING OF PERIOD 10,174,528 5,319,456 CASH AND CASH EQUIVALENTS END OF PERIOD 7,953,190 2,129,321 23
  • 25. Growth Strategies Capture greater domestic share through aggressive sales and marketing programs Capacity expansion focused on higher margin products (EC, HPC, HEC, HPMC) Grow international markets via distributors R&D focus to develop new products for specific industries Increase Ruitai™ brand equity 24
  • 26. Contact Us Auditor: Bernstein & Pinchuck LLP Company: Drew Bernstein Crystal Tang VP - US Office Seven Penn Plaza,New York, NY 10001 (212)-899-5131 Fax:(212) 899-3189 (212) 279-7900 1221 Avenue of Americas Suite 4200 New York, NY 10020 Internal Control advisor: UHY Advisors crystal@rutocel.com Melanie Chen Mr. Dianmin Ma, CEO 19 west 44th street,New York, NY 10036 Wenyang Town, Feicheng City ShanDong, (212) 381-4700 China 271603 Telephone: 86 538 38 50 703 Attorney: Loeb & Loeb, LLP http://www.ruitai.com Mitchell S. Nussbaum http://www.rutocel.com 345 Park Avenue, New York, NY10154 212.407.4159/212.504.3013 Investor Relations: John T. Mattio, SVP PRC Attorney: B & D Law Firm HC International, CT and NY Andy Gu (203) 616 5144 86 10 6478 9105 John.mattio@hcinternational.net www.bdlawyer.com.cn 25