Business Philosophy

The business of venture capital is utilizing an investor's perspective and professional expertise, combined with an entrepreneurial spirit to assist companies in integrating technology, capital, human talents, and markets to create a viable business. It is our goal and commitment, as a venture capital investor to assist in our investee company's subsequent development and create value both for our shareholders and for the investee company. In the current market, venture capital investors must have a sure grasp of industry development trends, and be able to identify technology leaders in fast-growing industries. Then they must make effective use of resources to assist the investee company in rapidly expanding its business.

China Investment & Development's future investment strategy and operations are based on the principles outlined below:

I. Integrate resources and guide investment
A key part of CIDC's strategy is to work closely with its affiliates to leverage its capital, business relationships, industry expertise, and information network to provide timely assistance to meet the needs of specific projects, with an approach that integrates the following elements:

1.Joint participation in investments
Once CIDC has identified an investment target, we will invite our investment partners or shareholders to participate in the investment, to establish a significant ownership position in the investee company.

2.Assist investee company and provide complementary resources
We have made direct and indirect investments in 220 companies locally and internationally. Many of these companies have been upstream or downstream of each other within the same industry or have resources that complement each other. In order to assist the investee company to achieve a breakthrough in its business, we will actively assist the establishment of cooperative relationships with companies with whom potential synergy exists.

When the targets of new investment projects have strengths that complement those of companies in our portfolio, we will assist in the integration of their resources with the aim of achieving maximum synergy.

3. Integrate the businesses of our shareholders and affiliated companies
When investee companies and our shareholders or affiliated companies have an upstream/downstream relationship or have complementary business strategies or resources, we will work to achieve mutual advantage for all parties involved, assisting them to achieve resource integration or to jointly pursue strategic projects.

II. Assist companies in creating value-
We always pursue the introduction of new technologies and the setting up of new Taiwanese businesses strictly within the context of global industry developments and future trends. We will utilize relationships with foreign partners to introduce new technologies, new products, and business approaches suited to Taiwan's development. Driven by the increasingly mature state of development in the domestic business environment in Taiwan, an ever increasing number of technology teams and vendors are extremely interested in transfers of technology to Taiwan, in particular, for the biotech industry and IC design. They are also drawn by Taiwan's active capital markets, which possess robust exit mechanisms. Consequently, many Taiwanese professionals have returned to start up new business ventures, and have, in the process, created a number of outstanding companies. In addition, mature technologies of investee companies through our assistance can also be introduced into other regions where they have a unique competitive edge. Currently, we are targeting the technologies related to new drug development and IC design as the top priority for technology transfer.

III. Investment strategic emphasis on both biotech industry and the electronics/IT industry
In recent years, the Taiwanese government and private sector have been aggressively promoting the biotech industry. A domestic biotechnology industry is already taking shape, and there are an increasing number of investment opportunities. In areas such as new drug development, diagnostic kits, health care, and advanced technology, there is enormous potential. Within the electronics and information technology industries, IC design, wireless communications, broadband communications, online multimedia content, microelectromechanical devices, and nanotechnology are developing vigorously, also offering a wealth of investment and business opportunities. Our executive team possesses professional knowledge and investment management experience in both fields of biotechnology and electronics/information technology. Moreover, with their extensive network of business relationships, the team fields many strengths in industry investment and business incubation. Therefore, we are placing equal strategic emphasis on the biotechnology and electronics/information technology industries. At the same time, we will take advantage of our network of relationships to incubate new projects and obtain investment opportunities by working with foreign partners.