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Newton Eco Technology

Newton aims to become the leader in providing energy savings solution, not only in technology and services but also in capital. We provide extensive services to support and help our clients go green. We've introduced our patented technology in LED lighting systems and an energy saving system for central air conditioning, boiler and water piping.

Campaign Closed RM 19,720 raised

2% of target	0 days left
Investors	3
Min Target	RM 1,000,000
Max Target	RM 3,000,000

Introduction

Newton Eco Technology Sdn Bhd (NEWTON) was founded in 2014 in Malaysia. We are focused on the development of energy-saving technology as well as green energy applications. NEWTON is a one-stop integrated total energy management solutions provider operating across Southeast Asia (with a strong focus in Malaysia).

NEWTON also fits in with the aspirations of the “One Belt One Road” region, paving a greener and sustainable future for future business opportunities, building connectivity and cooperation between Eurasian countries.

We believe in making a difference by championing the change towards protecting the environment and simultaneously enhancing the profits for corporates clients through savings in their energy consumption.

What We Do

The Challenge

Energy conservation and environmental protection in Malaysia market overview

At the end of 2017, Malaysia's electricity supply began to be scarce. There is a regional imbalance in Malaysia's electricity supply, increasing the demand for energy savings. The Malaysian government is committed to funding infrastructure projects related to environmentally friendly buildings. There is also a tax subsidy program for green technology projects in Malaysia. The electricity fees in Indonesia, Thailand, Vietnam and Singapore have continuously increased and the energy consumption in Cambodia and the Philippines rose steadily. Therefore, there is large growth potential for total energy management solutions in these markets.

High Energy & Operating Expenses

Due to energy scarcity and legacy infrastructures

Management Challenges

More resources and managerial capacity may be required to achieve energy efficiency

Uncertainty in ROI

Unclear matrix or measurement to ensure investment in green retrofit generates savings or income

Business Disruption

Discontinuity of business due to downtime affected by systems maintenance or changes

Environmental Issues

Current legacy infrastructures are environmentally damaging and clients are slow to adopt new green tech

High Carbon Footprint

No sustainable and affordable solutions in the market

High Energy & Operating Expenses

Due to energy scarcity and legacy infrastructures

Management Challenges

More resources and managerial capacity may be required to achieve energy efficiency

Uncertainty in ROI

Unclear matrix or measurement to ensure investment in green retrofit generates savings or income

Business Disruption

Discontinuity of business due to downtime affected by systems maintenance or changes

Environmental Issues

Current legacy infrastructures are environmentally damaging and clients are slow to adopt new green tech

High Carbon Footprint

No sustainable and affordable solutions in the market

Our Solution

NEWTON is an integrated eco service provider, leveraging on advanced technological products and solutions to address the inefficiency in energy consumption.

We are a one-stop service that provides Energy Management System (EMS) solutions to address problems of extra operational and financial burden.

NEWTON has more than 15 patents and innovative products and has 5 major applications for EMS in the following areas:

Technologies for energy saving and carbon reduction (5 stars) consist of energy saving solution for central air-conditioning system (AG star), energy saving solution for thermal energy conversion system (BG star), drinking water piping treatment system (CG Star), LED lighting system (LG star) and industrial piping treatment system (IG Star).

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Why Are We Different

We own more than 15 patents for our eco-products in different technology and application scope.

Product/Service Point of View

Our business model reduces the cost of machines and annual electricity fees paid by clients to achieve total energy savings and cost containment.

Business Point of View

We are currently in an advantageous and strong position to be a major energy saving player in Malaysia and ASEAN.

Our Revenue Model

NEWTON installs advanced energy management equipment and earns fee income based on a predetermined percentage of the amount of energy, water and other cost savings from our clients. In the short term, clients contract the energy management of their entire facility to us and pay a regular energy management fee.

Energy Management Service Fee

Calculated as % of the energy and maintenance savings achieved.
- The targeted savings is then agreed upon and shared on a ratio of 70-60% to us and 30-40% to the client. This is possible through our performance monitoring system where data of energy usage is captured in-real time by the minute.
Services are provided to clients through medium to long term energy management contract period of between 5-10 years.
Clients is charged on a monthly basis with a profit margin of 40-50%*

(*Project Margin increases as the scale of the project increases. E.g. for a standard size shopping mall, we may need to install 2 set of systems but for a bigger shopping mall 3 times the size, we do not need to use 6 sets. In fact only 4 or 5 sets of systems are needed)

Advantage of EMS Cooperation Model

Our model is easily scalable in the context of global expansion as it helps clients reduce cost in energy consumption without extra/initial investment.
This model secures incremental growth of cash inflow in the next 5-10 years.
This is a 4 + 1 Service Model which incorporates 4 application systems (of Client’s choice) including LED Solution, hence increasing NEWTON's attractiveness and competitiveness

Our Market Opportunity

In the long term, we will carry out our regional expansion in Southeast Asia. We will first expand to Thailand and Indonesia, then to Singapore and Vietnam. In addition, the total energy management solutions market is expected to grow at double digit year-on-year so it has high growth potential.

Our Strategy

Customer/Go-to-Market Strategy

We have primarily focused on major Blue Chip clients with a chain of properties locally and globally. We have positioned ourselves as a widely accepted brand in the market through our advanced technology, comprehensive treatment system and unique business model. Continuous market education will enhance market penetration through :

Firstly the business credit and financial stability must be of positive standing with secured long term business.
Secondly there must be proliferated sales growth generated as one of the pipeline sites (other sites) under the same group. This can be massively duplicated once the first pilot project is successfully delivered.
Next will be the corporations with very high CSR (Corporate Social Responsibility) consciousness

Marketing Opportunities

As global environmental protection awareness increases, organisations are looking towards implementing energy saving systems while bringing down operation costs. Companies that have implemented alternative energy saving systems may not achieve desired results due to the system’s underperformance. Additionally, a large portion of the market has yet to implement non chemical treatment systems for energy saving. For this segment of the market, our strategy is continuous market education while simultaneously building a portfolio of successful projects.

Marketing Programme

Presently we are approaching the market directly via our marketing team. Our agents and partners conduct the initial brief to the customers and are followed up by our marketing and project teams to further engage with the customer for site survey, technical and commercial communication. Newton’s model will be the leading business model used in the energy saving area and have great impact in the green market.

Product Innovation

Short Term

A user-friendly wireless energy performance monitoring system for energy saving-audit application. Users can log in and view the system performance in real time via web-based or smartphone app
*in design stage

Medium Term

Intelligent solar powered system of grid and off-grid application, integrating hardware from our technical partner with our software design
*in design stage
Smart hot water supply system for hot water application, which can save up to 70% energy and requires low maintenance
*in-house testing stage

Long Term

An integrated EMS which includes all our existing products and can be integrated into the client's own system to manage energy usage - to be used for smart home and smart city application

Our Achievements

Patents

Through many years of research and development, NEWTON’s group has over 15 patented technologies of which the “Frequency Electro-magnetic Field Quantum Inspired Technology” is the most widely used.

LED Tests :
- Malaysia Standard Suruhanjaya Tenaga (ST) Approval
- International Standard Circuit Breaker (CB)/ IEC Approval
- European Standard European Conformity (CE) Approval

Traction

Newton Contracts Signed

Our recent works have led us to receive EMS contracts with Mydin, KTJ , WRP, Epson, CIMB, ASE and CapitaLand. Currently, we have signed contracts from the following Blue Chip and international clients :

CIMB: 2nd largest bank in Malaysia
ASE: Largest semiconductor assembly company in the world
Epson: Internationally recognised Japanese company, top 5 printer manufacturer in the world
CapitaLand: One of the biggest REITs in Asia
Mydin Hypermarket: One of the biggest hypermarket chains in Malaysia
WRP: Top 3 glove manufacturer in Malaysia
Kolej Tuanku Jafaar

The total project at hand is worth RM 28.7 million whereas the projects in our pipeline is estimated to be more than RM 150 million over the next few years.

Indicative Usage of Funds

The Team

Edmond Chan Chung Fai

Founder, Executive Chairman

HRH Tunku Naquiyuddin

Group Senior Advisor

N. Szeto

Executive Director

Anson Hu

Director - Energy Saving System

Term Sheet

Issuer: Newton Eco Technology Sdn Bhd, a private limited company incorporated in Malaysia

Type of Equity: Ordinary Shares ("Shares")

Fund Raising Period: 90 days

Pre Money Valuation: RM54,000,000

Minimum Fundraising Target: RM 1,000,000

Maximum Fundraising Target: RM 3,000,000

Price per Share: RM 27.00

Minimum Equity Offered: 1.82

Maximum Equity Offered: 5.26%

Minimum Shares Offered: 37,038

Maximum Shares Offered: 111,112

Minimum Investment Amount: RM 4,860

Rewards: N/A

Impact on Shareholding Structure Upon Completion of the Offering: Call Options

By investing in this campaign, the ECF Investors therefore declare that they have understood and agreed to all terms and conditions outlined in the Investment Agreement.

The Issuer shall have the right to call the shares (Call Options) to purchase from the ECF Investors, up to 100% of the new shares issued in this exercise, based on the valuation on the latest financing round or the following formula, whichever is higher.

The Call Options shall be applicable to all subsequent holders of the shares, should the shares be sold to any other third party during the exercise period.

The exercise period commences from the beginning of Year 1 and expires at the end of Year 3. The exercise price shall be formulated at:

Exercise Price = Y x (1 + (7.0% x Z))

where:
Y = share price in the current ECF round
Z = number of years in full since the closing date of the ECF campaign

Investor Eligibility: Retail, Angel, Sophisticated, and/or Institutional Investors, subject to the applicable investment limits prescribed under the Securities Commission’s Guidelines on Recognised Markets.

Pre Emptive Rights

Type of Shares

Information: Issuer to provide additional information upon request.

Closing Period: 14 working days after the end of the Fundraising Period.

Use of Proceeds: The proceeds will be used for Market Expansion, Physical OofficeStore Expansions, Research, Tech and Development and Working Capital. The funds will be transferred to the Issuer by the end of the Closing Date.

Subscription Procedure: An Investment Agreement to subscribe ordinary shares and subject to review if required or necessary, the procedure may be amended by the Issuer and the ECF Platform.

Disclaimer

The information, calculations and remarks expressed on this term sheet or on any other part of the platform are based on information provided, disclosed and presented by Newton Eco Technology Sdn Bhd to Ata Plus Sdn Bhd, either in part or in whole. Ata Plus disclaims responsibility for the accuracy, completeness and/or validity of these information, and hence will not be held liable for any inaccurate, inappropriate or incomplete information presented on this term sheet or on any other part of the platform subject to the following :

The financial information listed on the deal page is provided by the Issuer; which includes the financial forecasts and projections, the capitalization table, the term sheet, and management accounts.

The financial forecasts and projections have been prepared by the issuer based on assumptions that have not been reviewed and certified by an independent certified accountant for its reasonableness.

THE ISSUER agrees that; all information concerning the product, business and the assets of THE ISSUER that have been furnished to Ata Plus Sdn Bhd for the purpose of the equity crowdfunding campaign is true, complete, and accurate in all material respect and is not misleading or deceptive whether by inclusion or omission.

Should the Investor require more information, they can do so by contacting Newton Eco Technology Sdn Bhd directly at [[email protected]] by clicking on the ‘CONTACT’ button on the Deals Page.

Disclosure: This issuer is referred by a 3rd party which is . Ata Plus is not associated or related to the issuer and the referral party.

Disclaimer by Securities Commission

(i) No shares will be alotted or issued based on this document after six months from the closing of the offer period

(ii) This issue, offer or invitation for the offering is a proposal not requiring authorisation of the Securities Commission under section 212(8) of the CMSA 2007

(iii) This document has not been reviewed by the Securities Commission Malaysia. The Securities Commission does not recommend nor assumes responsibility for any information including any statement, opinion or report disclosed in relation to this fund raising exercise and makes no representation as to its accuracy or completeness. The Securities Commission expressly disclaims any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the information disclosed.

Issuer	Newton Eco Technology Sdn Bhd
Type of Equity	Ordinary Shares ("Shares")
Fund Raising Period	90 days
Pre Money Valuation	RM54,000,000
Minimum Fundraising Target	RM 1,000,000
Maximum Fundraising Target	RM 3,000,000
Price per Share	RM 27.00
Minimum Equity Offered	1.82
Maximum Equity Offered	5.26%
Minimum Shares Offered	37,038
Maximum Shares Offered	111,112
Minimum Investment Amount	RM 4,860
Rewards	N/A
Investor Eligibility	Retail, Angel, Sophisticated, and/or Institutional Investors, subject to the applicable investment limits prescribed under the Securities Commission’s Guidelines on Recognised Markets.
Information	Issuer to provide additional information upon request.
Information	N/A
Closing Period	14 working days after the end of the Fundraising Period.
Use of Proceeds	The proceeds will be used for Market Expansion, Physical OofficeStore Expansions, Research, Tech and Development and Working Capital. The funds will be transferred to the Issuer by the end of the Closing Date.
Subscription Procedure	An Investment Agreement to subscribe ordinary shares and subject to review if required or necessary, the procedure may be amended by the Issuer and the ECF Platform.
Disclaimer	The information, calculations and remarks expressed on this term sheet or on any other part of the platform are based on information provided, disclosed and presented by Newton Eco Technology Sdn Bhd to Ata Plus Sdn Bhd, either in part or in whole. Ata Plus disclaims responsibility for the accuracy, completeness and/or validity of these information, and hence will not be held liable for any inaccurate, inappropriate or incomplete information presented on this term sheet or on any other part of the platform subject to the following : The financial information listed on the deal page is provided by the Issuer; which includes the financial forecasts and projections, the capitalization table, the term sheet, and management accounts. The financial forecasts and projections have been prepared by the issuer based on assumptions that have not been reviewed and certified by an independent certified accountant for its reasonableness. THE ISSUER agrees that; all information concerning the product, business and the assets of THE ISSUER that have been furnished to Ata Plus Sdn Bhd for the purpose of the equity crowdfunding campaign is true, complete, and accurate in all material respect and is not misleading or deceptive whether by inclusion or omission. Should the Investor require more information, they can do so by contacting Newton Eco Technology Sdn Bhd directly at [[email protected]] by clicking on the ‘CONTACT’ button on the Deals Page.
Disclaimer by Securities Commission	(i) No shares will be alotted or issued based on this document after six months from the closing of the offer period (ii) This issue, offer or invitation for the offering is a proposal not requiring authorisation of the Securities Commission under section 212(8) of the CMSA 2007 (iii) This document has not been reviewed by the Securities Commission Malaysia. The Securities Commission does not recommend nor assumes responsibility for any information including any statement, opinion or report disclosed in relation to this fund raising exercise and makes no representation as to its accuracy or completeness. The Securities Commission expressly disclaims any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the information disclosed.

Risk Disclaimer

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