NEWS

WIRES

OTHER

'Three New Industry' Creates Opportunity

Hong Kong, Nov 10, 2009 - (ACN Newswire) - Since the 17th National Congress of the CPC promoted the integration of defense industry enterprises and civil enterprises in October 2007, a series of policies has been announced by the Chinese Government to support the reform of share-holding system in the military industry. These policies have greatly broadened the financing channels for military enterprises. Through its wide business network, China Innovation Investment Limited ("CII"), as an investment expert in the field of dual-use technology and energy-saving industry, focuses on 'Three New Industry' ('New Energy Sources, New Lighting Sources and New Material'), to promote the military high-tech environment-friendly products to the civil market and wins a vast potential for futuredevelopment.

In recent years, with the help of China's supporting policies, CII adheres to the business of dual-use technology and energy-saving industry. By ways of investing in and co-operating with several big state-owned military enterprises,CII insists in developing 'Three- New industry'.

'New Material' Industry

In the field of 'New Material', CII had invested in C-Micro Circuit Corporation and Zhenjiang Fujieda Copper Foil Company Limited respectively. C-Micro Circuit Corporationhas the most internationally advanced technology in manufacturing LTCC (Low Temperature Co-fired Ceramic) products, such as telecommunication, the e-money and the electronic automobile, etc., which have been widely applied to the military and civilmarket with the rapid growth potential. Zhenjiang Fujieda Copper Foil Company Limited, as the core upstream supplier with advanced technology in the field of 'New Energy Resources' and 'New Lighting Resources', is mainly engaged in producing dual-usecopper foil material. Relevant authoritative organization believes that 'New Material', as one of the most influential hi-tech industries in the 21st Century, will be of high growth potential. With the help of the Eleventh-Five Year Plan in which the Chinese government announced to make more efforts on 'New Material Industry', CII is greatly encouraged and assured.

'New Energy Resource' Industry

In the field of 'New Energy Resource', CII will invest in Topsun Creation Limited that researches and manufactures high capacity power storage system with the characteristics of high capacity, fully sealed and maintenance-free, which are substantially used in tanks, submarines and barracks as well as civil vehicles and construction. Thus, Topsun Creation Limited wins a considerable development space in both military and civil market. Since March 2009, a series of solar energy financial-aid policies have been announced to speed up the development of new energy in order to foster the beneficial economic cycle nationally. As such, CII is confident of being successful in the 'New Energy Resource' industry.

'New Lighting Resources' Industy

In the field of 'New Lighting Resources', CII, by means of high reputation and building up good relationship with mainland military enterprises, has earned the investment priorities in a number of R&D programs from several mainland enterprises and has achieved breakthroughs in terms of new lighting energy-saving technology as well as its production. CII will invest in Dooda Innovation Limited ('Dooda') whose main business is designing LED new lighting products. After business reorganization, Dooda will be able to research, manufacture and sale dual-use LED lighting products which applyLED backlight and lighting technology. Besides, CII had invested in Hefei Jingda Guangdian Limited that obtains the patent for LED chip production and is able to produce in a large scale. A relevant organization has been recently predicted that the annual average compound growth rate of energy-saving lighting market will reach 27% in the following 5 years, probably even higher if more beneficial policies to be announced. With the rise of energy-saving concept, LED lighting industry becomes a newlighting source, which will provide a great-leap-forward opportunity for China's LED lighting industry. Therefore, CII is facing enormous development opportunities which will greatly help CII achieve success.

In light of the special production conditions and stable production ability of the national defense enterprises, as well as the supporting policies, CII builds up and promotes the comprehensive application of 'Three - New Industry', which helps CII establish the obvious advantages in the heat competition. CII's investment strategy indicates its advanced management philosophy and robust investment strategy. CII, investing in military enterprises and the field of energy-saving industry, will be the most notable investment company with high future earning expectation in China. CII is worthy of notice.

About China Innovation Investment Limited

The Company is an investment holding company and the Company's shares were listed on The Main Board of The Stock Exchange of Hong Kong Limited on 28 August 2002 pursuant to Chapter 21 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited.

For the year under review, the Company continued to hold investments in three unlisted companies namely Jinan LuGu (HK) Technology Development Limited, SNG Hong Kong Limited and Takenaka Investment Company Limited which amounting to total cost and carrying value of approximately HK$33.1 million and HK$28.6 million respectively. As at 31 December 2008, the Company held listed equity securities in Hong Kong in the fair value of HK$53,168.990. www.1217.com.hk/EN/

Source: China Innovation Investment Limited

Contact:

Fion HU

Investor Relationship Officer

China Innovation Investment Limited

Email: fion.hu@ntg.com.hk

Tel: 21556225

Mobile: 67927979