Introduction on Taiwan Depository Receipts Issuance Masterlink Securities

Introduction on Taiwan Depository Receipts Issuance Masterlink Securities Co. Securities Underwriting Dept. 2010/06 1

Content I、Advantages of Taiwanese Capital Market II、Basic Concept for Stock Listing in Taiwan III、TDR Issuance and Relevant Regulations IV、Profile of Current TDR Issuance 2

I、Advantages of Taiwanese Capital Market 3

Advantages of Taiwan Stock Market §Relatively Low Cost for Listing: üRelatively low listing cost and underwriting fees in Taiwan, compared to listing charge in HK, Singapore and Shanghai. üReports released by local and foreign securities firms on regular basis, which lowers the cost for public-relation maintenance. §Strong Growth Potential üSince 2008, Taiwanese government has been actively amend regulations in order to encourage listing by foreign companies on Taiwan’s exchange market. üIn general, TDR are highly evaluated by investmentoriented institutions. §Favorable Political and Economic condition: üProfound change in both political and economic government strategies since 2008 enhanced MOU agreement between Taiwan and China. It should be less likely to cause negative impacts on Taiwanese stock market. üPositive and encouraging stance by the government towards TDR issuance. 4

Number of Listed Companies TWSE OTC Emerging 697 669 691 503 531 727 716 698 688 547 542 546 466 423 350 257 245 2003 2004 2005 230 2006 246 2007 233 2008 Number of listed companies in TW is twice as many as that in Thailand 206 JUN 09 as of May 2009 Source: TWSE, GTSM 5

Market Cap. Vs Trading Value US$bn, as of May 2009 Market Cap Main composites of Taiwan’s stock markets: small to medium scale companies as of May 2009 Source: FSC, TEJ, TWSE, GTSM 6

Dual Listing Stocks Comparison of dual listing stocks in Taiwan and Thailand Data Source: Date：Dec 28, 2009 7

II、Basic Concept for Listing In Taiwan 8

Taiwan Depositary Receipt (TDR) Definition of Depositary Receipt (DR)： Depositary Receipt is a kind of overseas securities representing domestic Thailand iss stock listing in overseas stock exchange. It is an indirect way for overseas investors to Thailand issuers’ stocks. Overseas investors could also ask to convert TDRs into dom Thailand stocks. Issuers can use new shares and old shares to issue TDR. Definition of Taiwan Depositary Receipt (TDR)： TDR is a kind of DR issuing in Taiwan. Regulatory Committees: Taiwan Stock Exchange (TWSE) or Over-the-Counter (OTC) Stock Custodian Bank Contrac t Depositary Bank Issuers in Thailand Consulting Underwriter TDRs Investors Taiwan Placement 9

Contracts Foreign Issuer Deposit securities Securities Custodian 2 1 Underwriting Contract Securities Underwriter Deposit Agreement Custodian Contract 3 Depositary 10

TDR Trading ◎ Price Limit: 7% ◎ Consigned Trading: Same as common stock trading mechanism ◎ Currency: Unrestricted (All of the recently issued TDRs are priced in New Taiwanese Dollar) 11

III、Advantages of TDR Issuance & Relevant Regulations 12

Advantages for Issuing TDR ※Better financial-planning flexibility 1. Enhance financial planning efficiency for corporate and shareholders Shareholders’ Financial Planning Funding by releasing major shareholders’ outstanding shares for TDR issuance. Examples China Wan-Wan TDR was listed on 2009/4/28 Corporate’s Financial Planning Funding by issuing new shares for TDR issuance. Ju-Teng Int. Holding TDR was listed on 2009/5/25 Financial and fund-raising planning Mix Issuance: Issue TDR with both outstanding and new shares. 13

2. Can be used as a conversion subject for other financial products For strategic-alliance companies TDR can be issued as a conversion subject for convertible bonds or warrant bonds For warrant issuers Criterion: 1. Issuance scale: 100 million shares or more 2. Trading volume: Trading units≧ 20% of Listing units For Employees TDR can be issued as a conversion subject for employee stock option certificate 14

Advantages for Issuing TDR (Cont’d) ※ Funding for market expansion in Taiwan ? －Acquire strategic-alliance company or sales channel through corporate investment in or M&A. ※ Raise publicity in Asian markets ? ※ Dual-listing increases flexibility in funding strategy. ※ Not obliged to corporate-restructure, not involved with issues of investment structure and tax planning. ※ Relatively short review period for listing eligibility. (Roughly 2 months of review period) 15

A Comparison of TDR issuance Through New Shares and Outstanding Shares Items New Shares Outstanding Shares Influence on share capital Increased share capital None Influence on financial structure Increased equity fund None Fund Raiser(who provides shares for deposit) Issuer company Shareholders Required assessment period Long Short (mainly due to processing period for new shares) Influence on the stock price of outstanding shares No influence, except arbitrage trading (Can prevent outstanding shares in original market from dropping sharply) Cost for TDR Issuance Higher. Lower (Fixed issuing charge + (Fixed issuing charge) variable cost for issuing new shares) Acceptability by market Relatively high Relatively low 16

Regulation on TDR Issuance Item Listed stock market Year of Establishment Regulation l Already listed on the stock exchanged market approved by Taiwan Stock Exchange(TWSE) l Unrestricted Company Scale l Total issued units should be no less than 20 million units; or minimum market capitalization of $300 million NTD l Shareholder’s equity should be no less than $600 million NTD Profitability Underwriting Data Source: TSWE l No accumulated deficit and the ratio of EBIT against shareholder’s equity should comply with one of the following criterion: over 6% for the latest fiscal year; over 3% for both of the latest 2 fiscal years; or the average ratio over the latest 2 fiscal years is more than 3% (the profitability for the latest year should outperform the previous year). P. S. EBIT for the last 2 years shall exceed $250 million NTD. l Require one managing underwriter 17

Regulation on TDR Issuance(Cont’d) Item Ownership Regulation l Minimum 1, 000 or more registered shareholders required. (Shareholding) l The combined shares of registered shareholders, shall account for a Dispersion minimum of 20% of the total issued shares or of 10 million shares , excluding shares of company insiders and any juristic persons in which the insiders hold more than 50% of the shares. Public Subscription l Unrestricted Ratio Financial Statement l Consolidated financial statements shall be composed in accordance to Principles Taiwan’s financial accounting principles or the generally accepted principles of the U. S. l In case where the principles above are not complied, discrepancy in financial statements and monetary impact incurred by such discrepancy shall be disclosed. Review Data Source: TSWE Only document-review will be conducted. Dual Diligence is not required. 18

TDR Application Flowchart Parallel Process 10 working days Submit Application form Document Review by TWSE Admission From TWSE Central Bank Review Admission From Central Bank 12 working days Cont’d Submit Registration Application To FSC Cont’d 7 working days (outstanding shares) 12 working days(new shares) Complete ownership dispersion form Submit application form to TWSE Listing Ceremony 11 working days FSC: Financial Supervisory Commission 19

IV、 Profile of TDR Issuers 20

Profile of Current TDR Issuers Currency in Local Stock market Company Stock Code In Local Stock Market Share s Per Unit 9102 東亞科 新加坡證券 交易所，E 08 2. 0 SGD 9103 美德醫 新加坡證交 所上市, 代碼 546 1. 0 910322 康師傅 香港證券交 易所, 0322 9104 萬宇科 910482 Closed Price (2010/2/26) Currency Closed Price in Local Stock Market (NTD) TDR Closed price Premium/ Discount Rate% 0. 1100 22. 7600 2. 50 4. 80 -4. 00% 636, 000 425, 542 SGD 0. 1200 22. 7600 2. 73 7. 15 161. 90% 4, 000 2, 195, 073 0. 5 HKD 18. 0200 4. 1340 74. 49 36. 50 -2. 01% 2, 719, 000 1, 218, 000 南非證券交 易所, MST 1. 0 ZAR 3. 3200 4. 1200 13. 68 17. 35 26. 83% 56, 170 3, 000 聖馬丁 香港交易所, 00482 1. 0 HKD 1. 8800 4. 0540 7. 62 9. 42 23. 62% 1, 086, 000 1, 785, 000 9105 泰金寶 泰國證券交 易所, CCET 1. 0 THB 3. 0000 0. 9716 2. 91 5. 00 71. 82% 1, 523, 600 3, 007, 400 910579 歐聖 新加坡交易 所, 579 SGX 1. 0 SGD 0. 3550 22. 7800 8. 09 14. 75 82. 32% 10, 458, 00 0 5, 344, 000 9106 新焦點 香港證券交 易所, 0360 1. 0 HKD 1. 8900 4. 1340 7. 81 7. 32 -6. 27% 304, 000 670, 000 9110 越南製 造 香港證券交 易所, 0422 2. 0 HKD 1. 4200 4. 1330 5. 87 10. 40 -11. 41% 253, 000 169, 000 911201 僑威 香港證券交 易所, 1201 1. 0 HKD 3. 0800 4. 1370 12. 74 10. 40 -18. 37% 612, 000 363, 000 TDR Code Data Source: TSWE Closed Price in Local Stock Market Volume (2010/2/26) Volume in Local stock market TDR Volume Note 21

Profile of Current TDR Issuers(Cont’d) TDR Code 911602 Company 華豐泰國 Stock Code In Local Stock 泰國證券 Market 交易所， Shares Per Unit 6. 0 HFT Currenc y in Local Stock 泰銖 market Closed Price (2010/2/26) Closed Price in Local Stock 1. 9200 Market Currenc y 0. 9720 Volume (2010/2/26) Closed Price in Local Stock 1. 87 Market (NTD) TDR Closed price 14. 40 Premiu m/Disco unt 28. 34% Rate% Volume in Local stock 1, 075, 200 market TDR Volume 606, 052 911868 真明麗 香港聯 合交易 所, 1868 0. 5 港幣 6. 0000 4. 0540 24. 32 12. 40 1. 97% 3, 341, 00 0 979, 000 9136 巨騰 香港證 券交易 所, 3336 1. 0 HKD 6. 5800 4. 1370 27. 22 28. 30 3. 97% 2, 270, 00 0 1, 643, 20 3 9151 中國旺旺 香港證 券交易 所, 0151 1. 0 HKD 5. 0900 4. 1340 21. 04 21. 20 0. 76% 9, 534, 00 0 1, 219, 00 2 9157 陽光能源 香港證 券交易 所, 0757 1. 0 港幣 1. 7200 4. 1340 7. 11 11. 00 54. 71% 1, 289, 00 0 660, 000 9188 精熙國際 香港證 券交易 所, 2788 1. 0 HKD 1. 6600 4. 1350 6. 86 7. 82 13. 99% 340, 000 227, 000 Source: Market Observation Post System Note http: //newmops. tse. com. tw/ • Total of 16 TDR currently traded at TWSE. • TDR issuers generally enjoy a high premium rate. Data Source: TSWE 22

Conclusion Strong market performance! + Outstanding P/E ratio for TDR! TAIWAN, Your Best Choice for Funding!! 23

Initial charge estimated by Far-Eastern International Bank: Items Issuance Fee Deposit Management Fee Estimated Charge 400 K NT Dollars 1000 K~1200 K NT Dollars Payment • 行費採掛牌後一次 收足收取 • 存託管理年費採逐 季收取 註: 若不含保管銀行則存託銀行另須7個 作天進行保管銀行之徵信作業 24

(附件)Advantages of Taiwan Stock Markets Data Source: TSWE 25

(附件) Outstanding P/E Ratio in Taiwan Stock Exchange NO. OF LISTED COMPANY MARKET CAPITALIZATION TURNOVER RATE (%) P/ E RATIO 21. 43 (2010. 02) New York 2318 (2010. 02) 11722 (2010. 02) 11. 14 (2010. 02) Nasdaq 2837 (2010. 02) 3204 (2010. 02) 65. 43 (2010. 02) London 2759 (2010. 02) 2617 (2010. 02) Euronext 1158 (2010. 02) 2630 (2010. 02) 6. 89 (2010. 02) Germany 777 (2010. 02) 1172 (2010. 02) 11 (2010. 02) Tokyo 2311 (2010. 02) 3423 (2010. 02) 8. 92 (2010. 02) Korea 773 (2010. 02) 801 (2010. 02) 12. 84 (2010. 02) 22. 72 (2010. 02) Hong Kong 1152 (2010. 02) 2216 (2010. 02) 4. 08 (2010. 02) 17. 36 (2010. 02) Singapore 633 (2010. 02) 463 (2010. 02) 3. 62 (2010. 02) 13. 60 (2010. 02) Thailand 475 (2010. 02) 176 (2010. 02) 4. 83 (2010. 02) 16. 35 (2010. 02) Malaysia 957 (2010. 02) 296 (2010. 02) 1. 95 (2010. 02) 18. 20 (2010. 02) Shanghai 874 (2010. 02) 2562 (2010. 02) 8. 17 (2010. 02) 26. 88 (2010. 02) Shenzhen 901 (2010. 02) 905 (2010. 02) 16. 21 (2010. 02) 44. 44 (2010. 02) Taiwan 741 (2010. 03) 642 (2010. 03) 11. 38 (2010. 03) 40. 38 (2010. 03) Data Source: TSWE 15. 99 (2010. 02) 16. 40 (2010. 02) ─ 26

(附件) TDR Turn-Over Rate TDR Issuers Trading Amount (NT$) Market Value as of 2010/4/23 (NT$) Number of issued units TDR Closing Price 4/23(NT$) Turn. Over Rate 148, 844, 914 225, 002, 472 44, 554, 945 5. 05 0. 66 9102 Eastern Asia Technology 9103 Medtecs International Corp. 17, 272, 658, 483 1, 742, 907, 120 205, 531, 500 8. 48 9. 91 910322 Tingyi (Cayman Islands) Holding Corp. 11, 702, 774, 018 15, 199, 440, 000 379, 986, 000 40 0. 77 9104 Mustek Limited 13, 565, 105 29, 378, 700 1, 458, 000 20. 15 0. 46 910482 Sandmartin International Holdings 1, 419, 170, 503 1, 536, 693, 600 147, 759, 000 10. 4 0. 92 9105 Cal-Comp Electronics(Thailand) Public Co. , Ltd. 24, 622, 678, 974 3, 834, 251, 879 773, 034, 653 4. 96 6. 42 910579 Oceanus Group Limited 1, 106, 350 2, 660, 000 200, 000 13. 3 0. 00 9106 New Focus Auto Tech Holdings Limited 3, 048, 293, 244 763, 200, 000 90, 000 8. 48 3. 99 9110 Vietnam Manufacturing and Export Processing 1, 028, 953, 096 969, 126, 200 52, 244, 000 18. 55 1. 06 911201 Kith Holdings Limited 1, 564, 458 506, 966, 460 56, 518, 000 8. 97 0. 00 911602 HWA FONG RUBBER (THAILAND) PUBLIC CO. , LTD. 7, 580, 700 593, 250, 000 35, 000 16. 95 0. 01 911868 Neo-Neon Holdings Limited 2, 511, 809, 262 2, 008, 870, 850 139, 991, 000 14. 35 1. 25 912398 Good Friend International Holdings Inc 138, 341, 600 1, 995, 840, 000 67, 200, 000 29. 7 0. 07 9136 Ju Teng International Holdings Limited 29, 213, 578, 532 5, 248, 000 160, 000 32. 8 5. 57 913889 Global Sweeteners Holdings Limited 41, 255, 800 1, 580, 000 100, 000 15. 8 0. 03 9151 Want China 32, 725, 286, 565 4, 913, 508, 600 209, 979, 000 23. 4 6. 66 9157 Solargiga Energy Holdings limited 2, 240, 154, 026 1, 500, 000, 000 15 1. 49 9188 YORKEY OPTICAL INTERNATIONAL(CAYMAN) LTD. 2, 540, 050, 934 786, 400, 000 80, 000 9. 83 3. 23 Data Source: TWSE 27

(附件)ADR issued by Thailand company Company Name Thailand Ticker ADR Ticker Shares per ADR Stock Price 2010/4/27 P/E Ratio Converted Underwriting Price PTT EXPL & -ADR PTTEP PEXNY US Equity 2 10. 78679231 ADV INFO SVC-ADR ADAM AVIFY US Equity 1 2. 91120815 SHIN CORP-ADR SHIN SHNZY US Equity 4 3. 12571823 CHAROEN POK-ADR CPF CPOKY US Equity 4 0. 49766337 HANA MICROEL-ADR HANA HNMEY US Equity 2 1. 07867925 SAHAVIRIYA S-ADR SSI SAVXY US Equity 20 0. 68030339 ASIA FIBER-ADR AFC ASFBY US Equity 2 0. 20838122 SMC MOTORS-ADR SMC SWMTY US Equity 1 0. 03983758 TRUE CORP PCL-GD TRUE TCSXF US Equity 10 1. 28093153 PAE TAHI PLC-ADR PAE PATFY US Equity 10 0. 36466714 THAI TEL&TEL-GDR TTNT TTTLY US Equity 3 0. 0827396 DELTA ELECT-ADR DELTA DLETY US Equity 2 1. 27480268 WAT WTTKY US Equity 2 NA THCOM SHSTY US Equity 4 1. 07255037 BANGCHAK PETROLE BCP BKPCF US Equity 9 3. 39232366 CALCOMP ELECTRON CCET CLCZF US Equity 1 0. 15781813 TONGKAH HARB-ADR TONHUA TGKFY US Equity 50 3. 1870067 Jasmine International JASMY US Equity NA NA WATTACHAK CO-ADR THAICOM PCL-ADR Data Source: TWSE 28