Review

V. Operating Status
36.34%, respectively, than the previous year, a phenomenon which underscores the conservative investment
stance of venture capital fi rms amid the global economic recession, triggered by the U.S. subprime mortgage crisis.
For the world’s overall industrial development trend, energy, optoelectronics, and medical/health care may
succeed electronic and tech industry to become industrial development mainstream in the future. Under the
impact of the global fi nancial tsunami, many enterprises with high growth potential have been undervalued and
only venture capital fi rms can fully grasp long-term growth opportunities of industries and regions, thanks to their
long-term deployment. Meanwhile, in view of the overall competitiveness of Taiwanese enterprises deriving from
the clustering effect, substantial investment returns can be expected from investing in Taiwanese or overseas
Taiwanese-invested companies and urging them to pursue growth in Taiwan. Therefore, Taishin Venture Capital
has invested 80% of its fund in hi-tech industries in Taiwan.
d. Research and Development
Venture capital can often serve as a pioneer of corporate-banking business, first pinpointing startups with
development potential for commercial bank to provide funding support later on and securities underwriting fi rm to
assist them in share listing, thereby generating greater integrated benefi ts for fi nancial holding fi rm. Over the past
fi ve years, due to the over-supply of the global industry and low PE (price/earnings) ratio of tech fi rms, venture
capital fi rms worldwide have been looking for new industrial direction. In recent years, thanks to the expansion of
the investment scope of venture capital fi rms by the government, venture capital can actively pinpoint and invest
in listed Taiwanese fi rms with undervalued stocks and good business prospects, thereby increasing their profi tmaking
opportunities.
e. Short- and Long-term Business Development Plan
In the short term, the company will continue to cooperate with the Corporate Banking Business Group of Taishin
Financial Holding, intensify the screening of investment projects, and invest in companies with high cash yields,
so as enhance the company’s cash fl ow in the year.
In the long term, the company will look for investment targets with long-term development and profi t-making
potential and establish an investment portfolio featuring proper industrial and regional deployment, capable of
generating both short- and long-term profi ts. In accordance with the trend in the overall investment climate and
industrial development, the company will follow the following principle in its investment strategy and industrial
investment:
Venture capital industry 45%
Information technology industry 30%
Bio-tech industry 10%
Traditional industry, service industry, and others 15%
58 2009 Taishin Holdings Annual Report