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          | Organizational 
            Arrangements |  | 
         
          |  China-way is managed in three "partnership" divisions 
              in addition to our in-house transactions.
 We operate an SFC-regulated advisor that sources funds in the Hong 
              Kong market. Our investments in private companies and projects often 
              includes components of bank debt.
 
 Investments are usually held in special purpose companies or trusts 
              located in the major international offshore financial centres.
 
 Investments are negotiated with profit-sharing arrangements, co-investment 
              agreements and risk apportionment agreements to produce superior 
              returns for China-way and its partners.
 
 Our business development activities are focused on expanding our 
              interests in mainland China in the property services, development 
              and investment areas.
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          | Can We 
            Help? |  | 
         
          | China-way's partnership businesses typically 
              involve the following ingredients: |  | 
         
          |  | 
         
          | -  |  A partner will have an existing product or service 
              that has been developed or is currently operating. |  | 
         
          |  | 
         
          | -  | The partner is either seeking to service China 
              as a potential market or planning to establish commercialization 
              in China. The partner may have had a previously unsuccessful experience 
              in China. |  | 
         
          |  | 
         
          | -  | A partner will be a company already operating 
              successfully in its home market. |  | 
         
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          | -  | The getting-to-know-you process takes 6 months 
              to one year and is likely to involve due-diligence, market research, 
              business plan, or commercialization plan development. Knowing or 
              finding the first customer is a key priority. |  | 
         
          |  | 
         
          | -  | When co-investment is provided by China-way, we 
              will seek to document exit arrangements in a period of two years 
              to five years from investment. |  | 
         
          |  | 
         
          | -  | Commitment of capital is not enough. A partner 
              must be prepared to support a minimum of one seasoned senior staff 
              member during the partnership. |  | 
         
          |  | 
         
          | -  | China-way will provide business services as required 
              for each partnership. This may include MIS, accounting, marketing, 
              systems or hands-on management as appropriate. |  | 
         
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          | We Don't 
            Fit The Model |  | 
         
          | China-way's business model does not suit all 
              companies. However, we have a substantial network of companies, 
              advisors, capital partners, banks and financiers that operate in 
              China.
 For smaller companies seeking to establish themselves or find funding 
              for their products or research, we are pleased to provide introductions.
 
 For larger companies that are not seeking co-investment, China-way 
              will provide consulting services. These include:
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          | -  | Market research |  | 
         
          |  | 
         
          | -  | Commercial due diligence (we do not undertake 
              legal or financial due diligence). |  | 
         
          |  | 
         
          | -  | Support for business or commercialization planning. |  | 
         
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          | -  | On-going management or board advisory. |  | 
         
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