Ata Plus - Newton Eco Technology

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.

RM 19,720 raised
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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.

 

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.

net diagram 3

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

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.


Usage of Funds

 

 


The Team

Edmond Chan Chung Fai

Founder, Executive Chairman

Mr Chan over Thirty years in the high-tech engineering industry experience, having worked for two listed high-tech enterprises in Hong Kong, ie China Resources Microelectronics Limited (HKEx: 0597)) and China Aerospace International Holdings Limited (“CASIL “stock code: 031) during 1986 to 1999. Mr Chan’s main responsibilities include technology development, scientific and technological cooperation, the company's overall strategy, planning, business development and corporate operations. During the period of his services with CASIL , he was the Founder and Director of CASIL Optoelectronics Development Co., Ltd. ( Deputy GM and Director) and later Shenzhen Jinhan Electronics Co., Ltd. ( Vice Chairman ) 1991-1999 period, key role in opening the company in the United States, Europe, Japan and China's local optoelectronic products market, and made successful introduction of the United States and Israel and many other high-tech companies in Southeast Asia and domestic marketing, but also contributed to the company and the United States, Israel and Japan and other regions of the cooperation. Has rich experience in business management, marketing and international cooperation.

HRH Tunku Naquiyuddin

Group Senior Advisor

Tunku Naquiyuddin is a keen environmentalist and was a Committee Member of the World Wide Fund for Nature (Malaysia). He is also the Pro Chancellor of Universiti Kebangsaan Malaysia (UKM) since 1st January 2004. Also serve on the committee of the Business Council for Sustainable Development . His current business include a coke manufacturing plant in China (Sino Hua-an International Berhad - listed on Bursa Malaysia in Kuala Lumpur), Dengue-Malaria-Pathogen control biotechnology, pharmaceutical-healthcare distribution (Antah Healthcare Group Sdn. Bhd. www.ahcg.com.my) and property development

N. Szeto

Executive Director

Szeto has a long experience in corporate finance and investment banking, having served in CIMB Investment Bank Berhad (2010 - 2016) and RHB Investment Bank Berhad (1997 - 2010). She is a graduate of University Malaya in Bachelor of Arts in Economics (Hons).

Anson Hu

Director - Energy Saving System

Anson has more than 15 years of working experience in the area of environmental technology. Over the years, he managed to acquire 7 patents in the energy saving systems. With that, he had implemented more than 100 energy saving and green projects in Hong Kong, Macau, Thailand, Singapore and China. Anson is a graduate of Applied Science in Civil Engineering (Environmental) from University of British Columbia, Vancouver, Canada.

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