The document discusses the experiences and lessons learned by Weatherock China Ltd, a Singapore-based investment company, in investing in China over the past several years. It provides an overview of the company's strategy, criteria for investments, and some of its investments to date including in mobile platforms, property development, and other sectors. It also outlines some of the challenges of investing in China such as language and cultural barriers, inconsistent regulations, and bureaucracy. The document concludes with lessons learned including the importance of local presence, industry knowledge, and staying power to succeed in the complex China market.

1. File: WRC-ChinaExperience-080402 “ A China Experience” By John Chan, CEO Weatherock China Ltd 4 April 2008

2. Contents Brief Introduction Investment & Development Strategy Investments to-date Lessons Learned

3. Brief Introduction WFOE in China of Weatherock Pte Ltd of Singapore Private funds for investing in China Shareholders have extensive international business experiences

4. USA Middle-East Iran Southeast Asia Central Asia Russia Europe Scandinavia Pacific Islands China Japan Team has direct business development & management experiences in many countries worldwide … global local knowledge International Experiences Australia

5. Brief Introduction WFOE of Weatherock Pte Ltd of Singapore Private funds for investing in China Shareholders with extensive international business experiences Why China?

6. Why China? Massive market – population of 1.3B ; relatively homogenous Fastest growing economy in the world – epicentre of global economic growth; average annual growth rate of about 9.5% in past 2 decades Still emerging with growing affluence Purchasing power parity over US$ 7 trillion 220M internet users in 2007 (about 600,000 in 1997); >23% mobile 530M mobile users in 2007 (about 270M in 2004) spending ~US$70B Healthcare spending over US$ 100B annually 25M privately owned motor vehicles (increase ~18%) in 2007 Boeing predicted in 2007 that China will need 3,400 airplanes worth US$340B over next 20 years Investments in real estate in 2007 is about US$ 300B

7. Brief Introduction WFOE of Weatherock Pte Ltd of Singapore Private funds for investing in China Shareholders with extensive international business experiences Why China? Mission in China : “ To turn our $1 into $100 within 5 years ”

8. Investment & Development Strategy Criteria (“look for gems”) - Local Mass Markets - Growth Industry - Unique Value (niches) - Scalability (network) - Entry Barrier (knowledge) Portfolio - Objectives & Criteria - Resources – Cashflow & Gestation - Entrepreneurial & Opportunistic Modus Operandi (“Local Knowledge, Local Resources, Local Markets”) Bridge & Connect IPO

9. Investment & Development Strategy ACQUIRE CREATE PARTNER TRANSFORM DEVELOP GROW Leadership Management Technology Strategic Development Financing Inputs Sustained Profitability • Network Across China • Growth Engine • Growth Potential • Leadership Position • Values Local Mass Markets • Growth Industry • Unique Value (niches) • Scalability (network) • Entry Barrier (knowledge) • Criteria CONSOLIDATED IPO READY

10. Reviewed, discussed & negotiated over 400 companies, businesses, start-ups or investment proposals … invested in 6 : Investments To-date PanXin Mobile Social Platform Web 3.0 Platform (“Your Home On The Web”) Property Development & Investment Property Development … plus 2 lessons learned

11. Wanzhou “Riverfront” Project Wanzhou “Ancient City” Project Chengdu Bangkok Gardens Project Yangtze River Yangtze River Development Strategies for Property Business : Local knowledge, local markets Captive Market Positioning (“niches”) Target 3 rd and 4 th tier cities Create network of “local partners” Growth by M&A Consolidate & IPO 3

12. “ CHALLENGES ” Language Cultural Political Environmental Transparency (“information-deficiency”) Consistency in laws & regulations (“planning impediment”) Bureaucratic governmental agencies (“defy logic”) Complicated & excessive taxation system (“dual-book system”) Unstructured business & industry practices Lessons Learned Caveats : 1) Personal perspective 2) Linked to Weatherock’s circumstances

13. “ PERCULIARITIES ” Propriety (“selective & effective sizing”) Copy cats (eg: Starbucks, KFC) Legal redress (long & tedious process with uncertainties) Timing (market readiness) Resistance to exposure Local intents (objective time-frame) Local staff (eg: integrity, loyalty & ability; “team building”) Local values, aspirations & mindset Lessons Learned (cont’d)

14. Some Success Factors Local Presence Have the best man or team on the ground Local industry knowledge Local network & business relationship Effective management of local contents & resources Captive market positioning (“niches”) Financial resources Staying power Flexibility (“adaptive strategy”) Lessons Learned (cont’d)

15. Q&A Thank You      If we could be any assistance in your efforts to penetrate China, please feel free to contact me Mobile : +86-139 80952914 Email : [email_address]