Digital Intelligence Co-creation Start-up Plan

Project Purpose and Positioning

Taiwan's industry is facing an urgent need to advance both digital transformation and sustainable management (ESG). On the one hand, under the wave of the global digital economy, if companies do not actively embrace digital technology, they will find it difficult to maintain their competitiveness; surveys show that as many as 91% of Taiwan's small and medium-sized enterprises have begun to invest in transformation, an increase of nearly 20% compared to the previous year, indicating that most companies realize that they will not be competitive without transformation. However, transformation is not easy, and lack of funds and talent are the main obstacles: most small and medium-sized enterprises have a digital transformation budget of less than NT$500,000, and lack digital talent, resulting in only a slight increase in the return on digital investment of 70% of enterprises (less than 5%).

On the other hand, climate change and international sustainability standards have put forward new requirements for enterprises. Environmental, social and corporate governance (ESG) have become unavoidable issues for the long-term development of enterprises. Various countries have successively introduced net-zero emission policies. Taiwan also passed the "Climate Change Response Law" in 2023, which clearly set the 2050 net-zero emission target and required enterprises to assume carbon reduction responsibilities and adjust their business strategies. Regardless of the size or business model of enterprises, "cannot say no to sustainable operations" and cannot ignore the alignment with international sustainability standards just because of their small scale and limited resources.

In this context, the Digital Intelligence Co-creation Startup Plan came into being to undertake the task of assisting enterprises in their dual-axis transformation. This plan was initiated and operated by Digital Intelligence Co., Ltd., closely cooperating with the national digital development and sustainable policies, integrating public sector guidance and private professional resources, and becoming a practitioner of government policy goals and a co-creation start-up plan. The policy goal is to accelerate the digitalization and sustainable transformation process of Taiwanese enterprises and enhance the overall economic resilience and international competitiveness. Policy indicators include: it is expected that more than 100 companies will be guided to complete digital and ESG transformation cases within three years, the average revenue or productivity of participating companies will be significantly improved, and the sustainable KPIs set by each company (such as carbon emission reduction, energy efficiency improvement, etc.) will be achieved. At the same time, this plan will drive the trend of industrial transformation, promote Taiwan's digital competitiveness and sustainability ranking, and help achieve national goals such as net zero emissions by 2050. As industry analysis points out, digital transformation is not only a necessary means for companies to improve operational resilience, but also a key factor in achieving ESG sustainable development. The Shuhui Intelligent Control Co-creation Navigation Plan combines these two major directions and plays the role of a policy promoter. Through systematic guidance and resource investment, it accelerates the company's move towards digitalization and intelligence, while strengthening environmental sustainability and social responsibility, creating a successful example of dual-track transformation.

CoPilot Program

Why CoPilot?

• Co- : It symbolizes the spirit of "co-creation, collaboration, and cooperation", corresponding to "co-creation".

• Pilot : It not only means "taking off", but also represents "test flight, piloting, and trial plan", symbolizing the start of transformation and entering a new stage.

• The word CoPilot is literally translated as "co-pilot", which symbolizes that Suhui Intelligent Control and enterprises are moving forward side by side and driving the future direction together.

Co-create the framework of the Navigation Plan

Positioning and overall structure of the Co-creation Start-up Plan: The Digital Intelligence Co-creation Start-up Plan adopts a flexible and open architecture design to meet the needs of different companies in digital transformation and ESG implementation. Under this plan framework, a dual-axis solution is provided for companies to choose to participate. At the same time, there is no limit on the budget and the number of teams, emphasizing the allocation of resources on demand and the recruitment of high-quality teams. Participating teams can obtain rich mentor resources, technical tools and industry cooperation channel support, and through a complete acceleration service framework, help companies quickly achieve their transformation goals.

To meet the needs of different types of enterprises, the SCADA Co-creation Start-up Plan has designed a dual-solution architecture, providing two participation modes:

Plan 1: For details of the Shuhui Intelligent Control Shareholding Support Plan (Share Exchange System Mechanism)

The "Shareholding Support Program" provides in-depth accelerated support through equity cooperation. Specifically, the Shuhui Intelligent Control Co-creation Navigation Plan will invest in selected companies and obtain a certain proportion of equity. In exchange, the companies can enjoy subsidies for digital transformation and ESG-related services according to the proportion of equity. In other words, the Co-creation Navigation Plan bears the cost of the plan according to the shareholding ratio: for example, if the Co-creation Navigation Plan holds 40% of the company's equity, it will subsidize 40% of the company's Co-creation Navigation Plan service fees, and the company only needs to pay the remaining 60%. Under this model, the Co-creation Navigation Plan and the company form a cooperative relationship of shared benefits and shared risks. The two parties have the same goals and are based on the long-term growth and sustainable development of the company.

In the equity-based solution, the services provided by the Co-Creation Navigation Plan cover a wide range (details will be given later), and its value is equivalent to a substantial investment in the enterprise. Through equity linkage, the Co-Creation Navigation Plan team will be more closely involved in the transformation process of the enterprise, including assisting in the formulation of digital transformation strategies, introducing appropriate technology tools, and establishing an ESG strategy framework. This solution is suitable for enterprises or start-up teams that have clear transformation plans but limited resources and are willing to introduce strategic investors. By transferring part of the equity in exchange for the resource investment of the Co-Creation Navigation Plan, the financial pressure of transformation can be reduced and the probability of success can be increased.

Option 2: Customer proactively proposes a solution

The "Customer Proposal Program" encourages companies to proactively propose digital transformation or ESG project ideas based on their own needs. The Co-creation Navigation Program team will evaluate the proposals and provide resource support and collaborative implementation after review. This model does not involve the exchange of equity in the early stage. Companies can maintain their original dominance while using the expertise and resources of the Co-creation Navigation Program to realize their innovative projects.

In this program, enterprises have the initiative to propose: applicants need to submit detailed project plans (such as transformation goals, innovative practices, expected benefits, required resources, etc.), and Shuhui Intelligent Control will form a review team to strictly review the feasibility, innovation and fit of the proposals. For proposals that pass the review, the Co-creation Startup Program will provide tailored support, such as arranging suitable technical partners and expert consultants for coaching, assisting in project management and execution, and investing necessary resources or assisting in finding external funding sources according to project needs. This program has no equity requirements and is particularly suitable for enterprises with sufficient resources or unwilling to dilute equity, as well as various types of transforming organizations that hope to accelerate specific innovation projects through external cooperation. Shuhui Intelligent Control plays the role of a collaborative accelerator, ensuring the quality of the project through professional review and working side by side with the company in the implementation stage to facilitate the implementation of innovative ideas.

Application Notes

Teams and companies interested in applying for the SV-Smart Start-up Program should pay attention to the following application points:

• Unlimited application budget: This co-creation start-up plan has no upper limit on the amount of funds required for the proposal. Regardless of the size of the project budget, as long as the proposal idea is feasible and has potential, it is welcome. We will evaluate the proposal based on the actual needs of the proposal, and excellent proposals will receive corresponding resource support and assistance in fundraising.

• No upper limit on the number of teams that can be admitted: This program does not set a pre-set limit on the number of teams that can be admitted. We are open and inclusive and encourage participation from all walks of life. As long as the proposal of the team/enterprise meets the purpose and review criteria of this co-creation start-up plan, it has the opportunity to be selected for support, and there is no fixed ceiling limit. This means that as long as there are enough high-quality proposals, this program will do its best to support multiple teams to accelerate in parallel.

• Widely applicable: The Co-creation Startup Program welcomes applications from organizations of all sizes and stages, including mature companies with dual-axis transformation potential, start-ups, and traditional companies or non-profit organizations in the process of transformation. Whether it is a startup team seeking rapid growth or a large enterprise seeking digital innovation and sustainable upgrades, as long as they identify with the concept of this program and have clear digital transformation/ESG goals, they are eligible to apply.

• Application method: Application is conducted online. Applicants need to fill out the online application form and submit relevant information (such as company profile, transformation plan, team introduction, etc.). The proposal should clearly state the purpose of the project, its innovation, expected benefits and required resources. Applications are accepted all year round (long-term open recruitment), with no fixed recruitment cycle, so that companies can apply when they are ready.

Partner Resource Support

The Digital Intelligence Co-creation Startup Program brings together powerful ecosystem partner resources and cooperates with many leading technology and consulting companies to provide all-round support to the selected teams. The main partners and the resources they provide are shown in the following table:

With the cooperation of the above partners, teams participating in this co-creation launch program will be able to obtain multiple supports from the fields of technology, consulting, cloud and marketing technology. For example, the team can use Appier's AI tools to optimize marketing and analyze data, quickly enter the e-commerce market with the help of Shopline, and establish a reliable cloud and IT architecture with the help of Ingram and AWS. This ecosystem cooperation model can greatly reduce the time and cost of enterprises to find and integrate resources on their own, allowing teams to focus on core innovation. At the same time, each partner will also share practical experience and best practices to help enterprises avoid transformation minefields and accelerate growth.

Joint investment support and brand growth path

In terms of market expansion and brand growth, the Digital Intelligence Co-creation Startup Plan will serve as a bridge between enterprises and external resources, proactively assisting participating teams to promote their digital and ESG solutions and accelerate business opportunity transformation. Specifically, this plan helps teams connect with potential customers, partners and investors through joint investment promotion actions and brand growth path planning, thereby enhancing market influence:

Joint investment promotion and business opportunity matching: Shuhui Intelligent Control will use its own industrial relationship network and partner resources to connect potential business opportunities for participating companies. On the one hand, it will assist the team to promote its innovative products or services to the target market and customer base. For example, through the recommendation of the co-creation start-up plan, the team's digital solutions will be introduced into the supply chain of large enterprises or specific industry applications; for example, contacting companies in the field of environmental protection and sustainability to introduce the ESG tool platform developed by the team. On the other hand, this plan regularly holds investment promotion briefings or business opportunity matching meetings, inviting potential buyers, distribution channel dealers, and corporate procurement decision makers to communicate with the team face to face. This type of event is similar to a small exhibition or matchmaking meeting, giving the team the opportunity to showcase products, respond to customer needs on the spot, and obtain business cooperation intentions. Shuhui Intelligent Control will endorse the team as a co-promoter, reduce potential customers' doubts about new solutions, and increase the conversion rate of business opportunities.

Product Demo Day and Exhibition Activities:

As part of the brand growth path, the Co-creation Startup Plan will plan several important demo events. Including mid-term results display day and closing demo day. At these events, each team can show the transformation results, product prototypes or service solutions to the public, media, investors and customers. The Co-creation Startup Plan will invite representatives from industry associations, investment institutions, and government agencies to participate, providing the team with high-level exposure opportunities. Through carefully arranged product demos and on-site experiences, potential customers can personally experience the value of the team's solutions, increase the opportunities for future cooperation or procurement; let investors see the growth potential of the company after transformation, and pave the way for subsequent funding matchmaking. At the same time, these public events also enhance the team's presentation communication skills and on-site experience, adding points to the brand image. Shuhui Intelligent Control will assist the team in polishing the presentation content and simulating Q&A before the event to ensure the smooth success of the presentation.

Brand growth path guidance:

This program regards each participating company as a long-term partner, and tailors a brand growth path map for it during the acceleration period. Consultation is provided at each stage, from initial market positioning and brand story building to mid-term user diffusion strategies and later brand upgrades (such as obtaining sustainability labels or quality certifications to enhance endorsements). Through the mentor's professional marketing guidance, the team can clearly understand the milestones and key actions of their own brand growth. As a promoter, Shuhui Intelligent Control will also give resource tilt at important nodes. For example, after a team reaches a certain user scale, the co-creation start-up plan will assist it in applying for domestic and foreign innovation awards or participating in large-scale exhibitions to enhance brand credibility. This gradual brand cultivation will enable the team to establish a relatively stable market position in a short acceleration period, laying the foundation for subsequent independent development.

Co-creation of the Sailing Plan Process Description

The Digital Intelligence Co-creation Start-up Plan adopts a systematic process to screen and cultivate transformation projects, from proposal submission to results evaluation, to ensure that each stage has clear execution methods and standards:

Support content and resource details

For all teams successfully selected for the Shuhui Intelligent Control Co-creation Startup Program, we will provide a complete set of support resources to ensure that the team receives the necessary assistance during the acceleration period. The following is a detailed list of support content and resources provided to the selected teams:

• Funding and Subsidy Support: Teams that use Option 1 can directly enjoy a partial reduction in the acceleration service fee (subsidized according to the equity ratio, equivalent to the investment in the co-creation start-up plan). For Option 2 or teams that do not involve equity, Shuhui Intelligent Control will assist in applying for relevant subsidies or introduce investment and financing opportunities depending on the needs of the project. In addition, some partner resources (such as cloud service points) can also provide support in the form of funding subsidies depending on the situation, reducing the team's spending pressure on technology adoption.

• Professional mentors and advisory team: Each selected team will be paired with a main mentor for one-on-one guidance. The mentor is a senior person in the industry with rich experience in digital transformation or ESG. He will discuss strategies with the team regularly, share experiences and help solve problems. At the same time, the Co-creation Navigation Plan has a built-in advisory group including digital strategy consultants, ESG consultants, technical consultants, marketing consultants, etc., who can provide consultation at any time according to the needs of the team. This ensures that the team has experts to consult at any time in terms of business models, technology research and development, and sustainable issues, so as to avoid unnecessary mistakes.

• Technical tools and platform resources: The co-creation launch program and its partners will provide the team with access to various advanced tools and technical support. For example: Appier provides trial accounts for AI marketing, automated advertising, and data analysis platforms, allowing the team to immediately apply AI tools to optimize operations; Shopline provides a professional version trial of the e-commerce building platform to quickly list products and integrate multi-channel sales; Ingram coordinates the acquisition of IoT device or sensor trial kits for the development of smart manufacturing, energy management and other solutions; and other software services (CRM, ERP systems, etc.) provided by partners. Discounted authorization. These tool resources will be allocated to the team as needed, and will be guided by a dedicated person to ensure maximum benefits.

• Cloud infrastructure support: Through cloud partners such as AWS, selected teams can receive comprehensive support for cloud infrastructure. This includes: a certain amount of AWS cloud service usage credits (AWS Activate points) for the team to deploy applications, store and analyze data; assistance from AWS technical architects to assist the team in cloud architecture design and performance and security optimization; cloud technology training opportunities, such as participating in technical workshops or online courses held by AWS to enhance the team's cloud skills. With this support, the team can quickly build stable and scalable digital services at a relatively low cost.

• ESG professional guidance and resources: In terms of sustainable development, the Co-creation Navigation Program also provides targeted support resources. ESG consultants will assist the team in establishing or improving the company's ESG strategy, including setting appropriate ESG indicators, establishing internal data collection and management mechanisms, and guiding the writing of sustainability reports. The team can obtain the latest sustainability trend information, regulatory compliance recommendations, and guidance based on international standards (such as GRI, SASB, etc.) to ensure that transformation measures are in line with sustainability principles. In addition, if the project involves environmental technology (such as energy-saving and carbon reduction solutions), the Co-creation Navigation Program can coordinate experts or research resources in related fields to provide technical support and assist in the quantitative analysis of environmental benefits.

• Market connection and business cooperation: The Co-creation Startup Program relies on extensive industry connections to build market and business cooperation bridges for the team. On the one hand, the Co-creation Startup Program members and alumni are encouraged to form a community to exchange experiences and find cooperation opportunities; on the other hand, Shuhui Intelligent Control will take the initiative to introduce potential customers, strategic partners or pilot application sites to the team. For example, connecting with large enterprises as trial units for innovative solutions, or matching financial institutions to provide green financial support. Through these connections, the team's products and services have the opportunity to enter the market for verification more quickly and establish a key business relationship network.

• Matching media exposure and publicity: Excellent teams and achievements will receive publicity resources. The Co-creation and Sailing Plan will regularly report the team's progress and success stories through official websites, social media, cooperative media and other channels to increase the visibility of selected companies. In addition, news media will be invited to interview and report on the results presentation to create market awareness for the team. For innovative projects with listed companies or large corporate backgrounds, we will also assist them in promoting them within the company and the industry to strengthen the company's innovation and sustainable image.

Expected goals and performance indicators

In order to measure the effectiveness of the Shuhui Intelligent Control Co-creation Start-up Plan, we have set a series of expected goals and key performance indicators (KPIs) in advance to evaluate the impact on the selected companies and the success of the plan itself:

• Average growth rate of enterprises: After completing the acceleration program, enterprises participating in the co-creation and navigation program are expected to see significant improvements in their core business indicators. We use revenue growth rate as the main measurement, and the goal is that all selected enterprises will have an average revenue growth of more than 20% within one year after the end (compared to the year before not participating in the program). In addition, we also pay attention to other growth indicators, such as the increase in the number of users and the increase in market share, as auxiliary evidence of the comprehensive growth of enterprises.

• Number of successful transformation cases: This co-creation and launch program hopes to create specific transformation success stories. We expect to produce at least 5 successful cases of digital transformation and ESG dual-axis transformation in each batch (or each year). A successful case means that the participating team successfully achieved the main goals set by its proposal and made breakthroughs in both digital capabilities and ESG performance. For example, a manufacturing company has greatly improved its production efficiency by introducing the Internet of Things and AI data analysis, while reducing energy consumption and achieving carbon reduction goals. This can be regarded as a successful case. We will organize these cases into reports and publish them externally as a display of the results of the plan.

• Improvement of ESG performance indicators: All participating companies should have quantifiable progress in ESG. We expect 100% of the selected teams to achieve at least one measurable ESG performance improvement goal by the end of the program. For example: energy efficiency improvement of X%, annual carbon emissions reduction of Y%, improvement of employee diversity and training indicators, or improvement of corporate governance ratings. In particular, in terms of the environment, we hope that on average each company can reduce its carbon footprint or achieve equivalent environmental benefits by at least 10% through measures implemented under the guidance of the Co-creation Navigation Program. In terms of society and governance, we also expect to see participants establish sustainable reporting mechanisms, pass relevant certifications, or improve ESG ratings.

• Subsequent financing and investment: For new start-up teams or projects that require external funding, a certain percentage is expected to successfully obtain subsequent financing or strategic investment within 6-12 months after the end of the Co-creation Navigation Program. Our goal is that at least 50% of such teams will complete the next round of financing within one year after leaving the Co-creation Navigation Program, and the amount of financing and the use of funds are in line with their growth strategy. This indicator will reflect the effectiveness of this Co-creation Navigation Program in discovering high-potential companies and enhancing their value.

• Satisfaction of participating companies: We value the experience and gains of participants and will conduct a satisfaction survey on the selected teams at the end of the program. The goal is to achieve an overall satisfaction rate of more than 90% and that all teams are willing to recommend this co-creation and launch program to other companies. High satisfaction will show that the resources and services we provide are indeed helpful to the team and meet their expectations.

• Brand influence of the co-creation and launch plan: In the long run, the Digital Intelligence Co-creation and Launch Plan hopes to become a flagship platform for the industry to promote digital × sustainable transformation. We will pay attention to some indirect indicators, such as the number of media reports, industry mentions, and the annual growth rate of the number of application teams. The goal is to build this co-creation and launch plan into a benchmark plan for accelerating domestic digital sustainable transformation within two years of the plan's operation, attract more outstanding teams to come, and further expand the influence of the ecosystem.

Implementation and acceptance of the co-creation of the start-up plan

The Digital Intelligence Co-creation Startup Program adopts a systematic three-stage implementation process for the coaching process of the admitted teams, ensuring that the project has clear milestones and supervision mechanisms from introduction to execution to acceptance. At the same time, at the end of the program, the results will be fully accepted and evaluated to measure the acceleration effect.

Phase 1:

Initial Onboarding – This period lasts about 1 to 2 months. The focus of this stage is to help the team quickly enter the acceleration state, make a complete plan for the transformation plan, and match resources. The main tasks include:

• Acceleration kick-off meeting: The project manager of Shuhui Intelligent Control convenes the core members of the team and assigns mentors to hold a kick-off meeting. Confirm the project goals and KPIs, and refine the action plan and timetable during the acceleration period. The mentor team will conduct an in-depth diagnosis of the proposal, propose modification suggestions, and discuss the adjustment plan with the team to form the final "Acceleration Counseling Plan".

• Resource matching and training: Arrange relevant resource matching according to project needs. For example, introduce specific technology suppliers, open cooperation tool account permissions, invite industry consultants to provide guidance on projects, etc. At the same time, in order to enhance the overall capabilities of the team, hold basic workshops/training courses, including digital transformation strategies, ESG knowledge, lean innovation methods and other topics, strengthen the team's concepts and skills, so that they can better perform subsequent tasks.

• Milestone setting: Work with the team to set milestones during the acceleration period. Usually in months or quarters, for example, the first milestone is to complete a system prototype; the second is to complete trial operation and obtain preliminary data; the third is to complete the final results and prepare for acceptance. Each milestone corresponds to a clear outcome indicator and acceptance method. This will serve as the basis for future assessment and resource allocation.

• Administrative and logistical placement: Assist the team to handle administrative matters such as moving into the JustCo office, equipment configuration, signing various agreements and codes (such as confidentiality, usage regulations), etc., to ensure the team's logistics are smooth.

After the introduction period, the team has a clear consensus on the project direction, required resources and implementation steps, and has acquired the necessary knowledge equipment to enter full implementation.

Phase 2:

Execution – This period is about 3 to 9 months after the introduction (depending on the complexity of the project). This is the core stage of the co-creation and navigation program coaching. With the help of the coach, the team implements the plan and achieves the established milestones:

• Continuous mentor consultation: Meet with the assigned mentor at least once a week (more frequently as needed) to report progress and discuss issues. The mentor plays the role of coach and consultant, providing advice and network introductions for technical problems, and sharing experience for business decisions. If the team encounters challenges in specific areas, the Co-creation Navigation Program will arrange for a special mentor to intervene for a short period of time, such as UI/UX experts to guide product interfaces, legal experts to assist in reviewing digital privacy policies, etc.

• Dynamic resource scheduling: During this phase, the team can flexibly apply for additional resources as needed. For example, if server expansion is required when testing a new digital system, additional AWS cloud quotas can be applied to the Co-creation Startup Plan; if the plan decides to add an ESG module in the middle of the project and environmental data analysis software support is required, this can also be requested. The Co-creation Startup Plan team will review and approve the budget and necessity to ensure that resources can keep up with the project expansion. This on-demand payment mechanism improves project flexibility.

• Mid-term review and achievement presentation: A mid-term review meeting will be held halfway through the project (approximately 3 to 4 months). The team will report the current achievements to the judging committee or the mentoring team, check the degree of achievement against the original milestones, and explain whether the second half of the plan needs to be adjusted. The committee will give a mid-term evaluation and suggestions to decide whether to continue full support. Generally, as long as the progress is normal, the team will be allowed to continue. An internal demo presentation may also be held in the mid-term, inviting other teams in the co-creation of the Sailing Plan to observe and communicate with each other, obtain feedback from peers, and rehearse the final presentation in advance.

• Project implementation and testing: The team will fully implement the plan content, such as the software development team will carry out program writing and system online testing, and traditional enterprises will carry out production line introduction and personnel training. At the same time, ESG elements will be integrated into the implementation: for example, an energy usage monitoring platform will be established, and circular material processes will be introduced to ensure that sustainable goals are promoted simultaneously. During this process, the co-creation start-up plan will closely follow the progress, assist in coordinating the resources of various departments within the enterprise, and resolve obstacles. If there is any deviation from the plan, counseling and correction will be initiated immediately.

• Administrative and management support: During the implementation period, the Co-creation Navigation Plan also provides legal, financial, HR and other management consulting services on demand. For example, it helps companies modify the terms of digital service contracts to comply with privacy regulations, or recommends talent training programs for new technologies, etc., as support for the smooth implementation of the project.

After a hard-fought implementation period, most teams will complete the main transformation tasks, achieve key performance indicators, and enter the final acceptance phase.

Phase 3:

Acceptance period (verification and publication of results) – This period lasts about 1 to 2 months. The focus of this stage is to conduct a comprehensive evaluation and acceptance of the project results, and to assist the team in demonstrating its transformation results to the outside world:

• Results data collection: The team organizes various data and documents generated during the implementation period, such as performance indicators after the new system goes online, operational KPI changes, energy saving and emission reduction statistics, user feedback survey results, etc., and submits them to the co-creation and navigation plan team. The mentor helps the enterprise compare the original goals with the actual results, analyzes the compliance status and the reasons for the differences, and forms a draft of the results report.

• Final evaluation meeting: A results acceptance evaluation meeting is held and the evaluation committee is invited to conduct a final evaluation of each team. The team needs to present the final results of the project and emphasize the degree of completion compared to the planned goals. The evaluation committee will conduct an evaluation based on the acceptance criteria set in advance to confirm whether the project has achieved the agreed results. If there are any unmet parts, remedial measures can be discussed or continued tracking after completion can be allowed. The team that passes the acceptance will receive the "Co-creation Start-up Plan Completion Certification" as proof of its successful completion of this plan.

• Demo Day Results Presentation: The finale of this Co-creation Startup Plan is Demo Day. All graduating teams will present their transformation results and future plans to the public on Demo Day. Government officials, industry leaders, investors, media reporters, etc. are invited to attend the event. Each team usually has 10 minutes of presentation and on-site demo time, as well as Q&A interaction. Demo Day is an important stage for the team to demonstrate its strength, and it is also an opportunity to attract potential investment and cooperation. The Co-creation Startup Plan team will fully assist in preparations, such as arranging speech training, demo rehearsals, and producing promotional brochures, so that the event can achieve the best results.

• Graduation and follow-up: After the Demo Day, the co-creation start-up plan coaching officially came to an end. Shuhui Intelligent Control issued a certificate and an evaluation report to each graduating team. The report stated the original goals and actual results of the project, the instructor's comments, future suggestions, etc., for the company's future reference. Although the formal coaching has ended, the support for the team will not be interrupted. In the future, a dedicated person will be appointed to maintain contact with the graduating team and regularly understand its business status and needs. In particular, in terms of funding matchmaking, the Co-creation and Start-up Program will continue to serve as a bridge between enterprises and investors. For example, within 6 months after graduation, a special investment matchmaking meeting will be arranged to assist teams with financing needs to negotiate with venture capital, banks, government funds, etc., and strive for subsequent funding. At the same time, the Co-creation and Start-up Program will also invite outstanding graduating teams to share their experiences and participate in the next batch of new team orientation activities to form a good inheritance.

The acceptance of results and the achievement of target indicators are the key to measuring the effectiveness of this acceleration program. This program hopes that after the above complete coaching process, participating companies can achieve significant progress. Specific results include but are not limited to:

• Improvement of revenue and growth indicators: Most teams achieved revenue growth, cost reduction, efficiency improvement and other operational indicators during or after the project. For example, a traditional manufacturer increased its monthly production capacity by 20% and its gross profit margin by 5% by introducing smart production lines; another example was a startup company that doubled its performance within six months after expanding its e-commerce channels.

• Sustainable KPIs achieved: ESG goals set by the company are achieved. For example, greenhouse gas emissions are successfully reduced, the use of renewable energy is increased, and the corporate governance structure is improved. Example: A factory optimized energy management with the help of a mentor, reduced electricity consumption by 15% and carbon emissions by XX tons within a year, and successfully obtained ISO 50001 energy management certification. These sustainable performances not only meet policy requirements, but also enhance the corporate image.

• Market expansion and brand enhancement: Through joint investment promotion and Demo Day, the teams generally expanded their market influence. Some teams successfully developed new customers, signed trial orders or cooperation intentions during the program. For example, a software team reached a POC (proof of concept) cooperation agreement with two chain companies after Demo Day. In terms of brand awareness, the participating teams accumulated considerable exposure in the media, with an average of 2-3 media reports or interviews per team, establishing an image of innovators in the industry.

• Funding matching and investment: Through the support of the Co-creation Startup Plan, many teams have received follow-up funding. Some companies have successfully obtained government project subsidies to expand their transformation results; several startups have also received venture capital or angel investment after graduation. For example, an AI startup was favored by XXX Venture Capital after its Demo Day presentation, and raised tens of millions of yuan in funds within three months to accelerate product commercialization. Overall, the total amount of matching funds for participating teams this year reached hundreds of millions of yuan, fully demonstrating the investment incubation function of the Co-creation Startup Plan.

Share exchange mechanism

In order to ensure the smooth operation of the equity exchange model in Plan 1, this co-creation and start-up plan has established a complete set of equity exchange system mechanisms to ensure compliance with the provisions of the Company Law and take into account the rights and interests of both Shuhui Intelligent Control and participating enterprises. The specific mechanism covers legal basis, decision-making procedures, equity ratio setting, voting rights arrangement, accounting treatment and registration, and risk control, etc., as follows:

Legal Basis and Board Resolution:

The practice of Shuhui Intelligent Control acquiring corporate shares through equity exchange is based on the relevant provisions of the Company Law. According to Article 156, Paragraph 5 of the Company Law, in addition to cash, shareholders can use property or technology required for the company's business to offset share capital, but the value must be approved by the board of directors. This mechanism applies this provision: companies can regard the acceleration services and resources provided by this co-creation start-up plan as "technology or property required by the company" and use them as consideration for capital increase after evaluation. In practice, participating companies must convene a board of directors meeting (if it is a limited company, all shareholders must agree) to pass a resolution to accept Shuhui Intelligent Control's investment in service resources, and specify matters such as the number of shares and the amount of consideration. The resolution must also comply with the statutory number and voting threshold stipulated in the company's articles of association. After the approval of the board of directors (or shareholders meeting), both parties sign the investment agreement document and enter the equity transfer procedure. This process ensures that the equity exchange complies with the legal procedure requirements and lays the foundation for the subsequent rights and interests protection.

Share acquisition method and ratio setting:

Shuhui Intelligent Control can acquire the shares of participating enterprises by issuing new shares through capital increase or transferring existing shares. In most cases, the enterprise will issue new shares through capital increase, and Shuhui Intelligent Control will subscribe for them in the form of service discounts, and the paid-in capital of the enterprise will increase accordingly. The proportion of shares exchanged will be calculated based on the valuation and the value of invested resources agreed by both parties. For example, the pre-investment valuation of the enterprise after negotiation is 100 million yuan, and Shuhui Intelligent Control has invested resources worth 10 million yuan, which is equivalent to obtaining approximately 10% of the equity. For the sake of fairness, important projects will entrust a third-party appraisal company to value the value of the enterprise and the invested resources as a reference for setting the share ratio. In principle, Shuhui Intelligent Control only acquires a small minority of shares, usually no more than 20%, to avoid excessive dilution of the original shareholder structure of the enterprise and to ensure the dominant position of the management team. If the enterprise is already listed (OTC) or has other special equity structures, it can be achieved by partially transferring the shareholders' shares to Shuhui Intelligent Control, and the transfer price is calculated based on the same valuation. Regardless of the method, the final shareholding ratio shall be subject to the negotiation between the two parties and stated in the agreement.

Voting Rights and Governance Participation Restrictions:

In order to respect the autonomy of enterprises, this co-creation start-up plan will impose appropriate restrictions on the exercise of voting rights after acquiring equity. First of all, Shuhui Intelligent Control does not seek board seats in principle. Unless the shareholding ratio or investment amount is high and the company agrees to arrange directors, it will not send directors to participate in corporate governance. Even if Shuhui Intelligent Control has shareholder voting rights, it is limited to providing auxiliary opinions on major matters and does not interfere with the company's daily business decisions. If necessary, Shuhui Intelligent Control can sign a shareholder agreement with the company to agree to waive the voting rights on specific matters or authorize the management team to exercise them on its behalf, so as to protect the entrepreneurial team's control over the company. In addition, the nature of the shares held by Shuhui Intelligent Control can be non-voting preferred shares (if permitted by the company's articles of association) or common shares, but it has explicitly promised not to collude with other shareholders to change the company's business policy. This arrangement allows the company to introduce capital from the Co-Creation Startup Plan without undermining the stability of the governance structure, and the founders still have control over the company's long-term strategy. As a strategic investor, Shuhui Intelligent Control's role focuses on resource assistance and value co-creation rather than controlling operations.

Accounting Processing and Change Registration:

After the equity exchange takes effect, the participating companies must complete the relevant accounting records and registration changes in accordance with the law. If the method of issuing new shares by increasing capital is adopted, the company should go through the capital increase verification procedure: the amount converted from the resources invested by Shuhui Intelligent Control will be listed as paid-in capital, and the accountant may be required to issue a capital verification report to prove that the investment has been paid in accordance with the law (in form, Shuhui Intelligent Control can increase capital in cash, and then the company will pay an equal amount to purchase services to meet the requirements of the law). Subsequently, the company will apply for company change registration with the Ministry of Economic Affairs' Department of Commerce, add Shuhui Intelligent Control as a shareholder and record the shareholding ratio. After the company's shareholder list and industrial and commercial registration information are updated, the shareholder rights and interests of Shuhui Intelligent Control will be officially established. In accounting, enterprises can capitalize the service fees provided by this co-creation start-up plan as "long-term assets - transformation assets" or similar items, and amortize them year by year. This is equivalent to using equity financing to pay for transformation costs and reduce the pressure on current profit and loss. For Shuhui Intelligent Control, the acquired equity will be listed as a long-term equity investment and recorded at the investment cost, which will not affect its current profit and loss. The financial personnel of both parties will coordinate appropriate accounting treatment to comply with regulations and accounting standards. In addition, you need to pay attention to tax issues: According to Taiwan's tax laws, the acquisition of shares by technology or intangible assets may involve income tax. This plan will consult tax experts in advance and make arrangements in a legal and tax-saving manner (such as complying with the new equity valuation deferral mechanism, etc.) to reduce negative tax risks.

Risk management and exit mechanism:

In order to control risks, there are several restrictions and protection clauses in the design of the share exchange mechanism. First, Shuhui Intelligent Control will set an upper limit (for example, 20%) on the maximum shareholding ratio of a single enterprise to avoid excessive concentration of resources on individual projects and disperse investment risks. Secondly, the investment agreement signed by both parties will include rights and obligations clauses: if the enterprise fails to use funds according to the planned schedule or violates the cooperation obligations, Shuhui Intelligent Control reserves the right to suspend resource supply or require the enterprise to repurchase shares; at the same time, if the enterprise is dissatisfied with the acceleration service or withdraws from the plan ahead of time, Shuhui Intelligent Control can also request loss compensation or negotiate equity disposal methods in accordance with the contract. In addition, to ensure the long-term development of the enterprise, the agreement can stipulate a future equity exit mechanism. For example, Shuhui Intelligent Control’s shareholding needs to be locked for a certain number of years. After the enterprise’s operation is on the right track, Shuhui Intelligent Control can exit through company repurchase, third-party transfer or IPO release of shares to realize the investment value. At the same time, the agreement will restrict Shuhui Intelligent Control from reselling shares to competitors or improper third parties to protect corporate confidentiality and independence. Finally, risk control is also strengthened in corporate governance and finance: Although Shuhui Intelligent Control does not participate in daily operations, it can require the enterprise to provide financial statements and project progress reports on a regular basis to grasp the company’s health and warn of potential problems early, helping the enterprise to adjust its strategy in a timely manner. Through the above mechanisms, this program not only provides financial and resource support to enterprises, but also ensures that transactions comply with regulations, procedures are transparent, and potential risks are minimized, thereby establishing a stable and reliable cooperation framework.

Appendix

Application Brochure Sample

The following is a sample of the key points of the "Digital Intelligence Co-creation Start-up Plan" application guide for reference:

• Project Name: Data-Innovation & ESG Accelerator Application Guide

• Organizer: SDIC Co-creation Startup Plan Implementation Team (and its partners Appier, Shopline, Ingram, AWS, etc.)

• Program Purpose: Explain that this co-creation and start-up plan aims to promote the dual-axis transformation of digital technology and ESG sustainable integration, and accelerate corporate innovation and growth (for more information, please refer to the key points of the "Plan Purpose and Positioning" section of this plan).

• Target and Qualifications: Explain that applicants are companies or teams in various industries with digital transformation and ESG potential, including start-ups, small and medium-sized enterprises, and organizations in transformation; emphasize that there is no limit on the number of applicants and budget, and those who are interested in transformation are welcome to apply.

• Program Type: Introducing two types of participation programs that can be chosen - the shareholding support program and the customer-initiated proposal program, briefly describing the differences between the two and indicating which type to choose when applying.

• Acceleration content: briefly list the resources and coaching content that can be obtained after being selected, such as: funding/fee subsidies, mentor consultation, technology and cloud resources, ESG coaching, market matching, etc. (For a detailed list, please refer to the relevant chapters of this plan).

• Recruitment period: Describe the application acceptance schedule. If the application is accepted year-round, indicate that the application is open all year round; if the application is accepted in batches, list the deadlines for each batch.

• Application method: Guide applicants to fill in the application form on the designated website or platform and submit relevant attachments (such as PDF of the business plan, presentation, etc.). Provide contact window information for consultation.

• Selection process: briefly describe the review and admission process, including the initial review, re-review, defense (if any), and the time points for the announcement of the results. Let applicants know the approximate timeline from submission to receiving the results.

• Review criteria: List the key points to be considered during the review (e.g. innovation, feasibility, team capabilities, alignment with digital/ESG, etc., see the common review criteria below for details).

• Cooperation obligations: explain the obligations of both the team and the Co-creation Start-up Plan after being selected. For example, the team must cooperate in submitting progress reports, participating in training and activities, and complying with equity and confidentiality agreements; the Co-creation Start-up Plan will provide corresponding resources and guidance, etc.

• Project duration: Explain how long the co-creation launch plan will last (e.g. 6 months to 1 year, or flexible depending on the project situation), as well as the main milestones during the period (e.g. introduction phase, mid-term review, results presentation, etc.).

• Other matters to note: including intellectual property ownership (usually the original belongs to the application team, but the co-creation start-up plan can be authorized for use in publicity), confidentiality clauses, and the organizer reserves the right of interpretation for any unfinished matters.

• Contact information: Provide the project office’s contact phone number, email address, and official website or social media information so that applicants can consult and track the latest news.

FAQ

The following is a summary of frequently asked questions and answers about the Digital Intelligence Co-creation Start-up Plan:

• Q: Do I need to pay for participating in the Co-creation Sailing Program? A: After being selected for the Co-creation Sailing Program, it will depend on the plan you choose. If you adopt Plan 1 (shareholding), the Co-creation Sailing Program will subsidize the corresponding proportion of the project costs according to the shareholding ratio, and the team only needs to bear the remaining part; if you adopt Plan 2 (active proposal), generally speaking, the team needs to bear the investment costs required for the project execution, but the Co-creation Sailing Program will try its best to help strive for various resources and subsidies to reduce the burden on the team. No registration fee is charged during the application process.

• Q: How is the shareholding ratio of Option 1 determined? A: The shareholding ratio will depend on the value of the resources invested in the project by the Co-Creation Start-up Plan and the team's own conditions, and will be determined after the two parties negotiate and agree. Generally speaking, the Co-Creation Start-up Plan does not require a controlling stake, but mostly a minority stake (e.g. 5%-20%) in exchange for resource investment of corresponding value. The final ratio will be clarified at the signing stage of the agreement after acceptance.

• Q: How long is the acceleration period for each team? A: The acceleration period depends on the nature and complexity of the project. Usually it is at least 6 months, and the typical period is between 6-12 months. If the project is large or the goal takes longer to achieve, we can negotiate to extend the coaching period. We emphasize flexibility to ensure that the coaching period is sufficient to support the team to achieve the set goals.

• Q: If our company is not yet officially operating or is very small, can we apply? A: Yes. This co-creation start-up plan has no restrictions on the size and establishment time of the enterprise. As long as there are clear digital transformation and ESG goals and feasible plans, new start-up teams and small and medium-sized enterprises are very welcome. Our resources and guidance will be adjusted according to the stage of the team. For example, new start-ups may need more business model guidance and technical implementation support, while mature enterprises may focus on organizational change and system integration.

• Q: Will other assistance be provided to unselected teams in the future? A: We will provide basic feedback to unselected applicants. Unselected teams can still join the innovation community of Shuhui Intelligent Control. We will hold public workshops and lectures from time to time for everyone to participate in learning. In addition, you are welcome to apply for future batches again after improving your plan. We hope that even if there is no immediate cooperation, we can continue to support the innovation and sustainable development of enterprises through the community ecosystem.

• Q: Does the Co-creation Navigation Program require the intellectual property rights of participating teams? A: No. The intellectual property rights of the technologies, products and results developed by the team during the project execution belong to the team. The Co-creation Navigation Program and its partners will not claim or use the team's technical results without permission. However, in order to promote the results of the project, the Co-creation Navigation Program may use the relevant results in case sharing or media publicity with the team's consent.

• Q: ESG-related goals are very abstract. We don’t know how to set or measure them. What should we do? A: This is one of the key points of the co-creation and navigation program. Our ESG consultants will work with you to develop ESG goals that are suitable for your company at the beginning of the coaching, and teach you how to collect data, calculate and present these indicators. We will also introduce the internationally used sustainable reporting framework to help you transform abstract ESG concepts into specific, executable and measurable solutions.

Common review criteria

The jury will generally consider the following main criteria when screening proposals:

• Alignment with the dual-axis transformation objective: Does the project have both digital innovation elements and ESG sustainability goals, and how to integrate the two? The proposal must clearly demonstrate how digital transformation drives sustainability benefits and vice versa, in line with the core concept of this project.

• Innovation and differentiation: Is the solution innovative in terms of technology or business model? What are the unique features or advantages compared with existing solutions in the market? Evaluate whether the project can bring breakthrough new value.

• Feasibility and Implementation Plan: Is the goal setting reasonable and feasible? Does the project plan have clear milestones, a reasonable timeline and resource allocation? Has the team considered potential risks and countermeasures? This is related to whether the proposal can be implemented.

• Team capability and commitment: Do the background, experience, and expertise of team members match the needs of the project? Is the team's organizational structure and division of labor clear? Does it have past successful experience to prove its execution? In addition, the team's commitment and willpower to the transformation project are also key considerations (for example, whether the core members are fully committed).

• Business potential and growth: If the project is successful, what is the potential driving effect on the company's overall revenue, profit or scale growth? Is there a clear business model to support long-term development? Market size and opportunity size, competitive advantages, etc. are all evaluation factors to ensure that resource investment can generate corresponding value.

• Sustainable impact: The degree of positive impact that the project may have on ESG. For example, carbon reduction benefits and improved resource efficiency on the environment, community contributions and employee welfare improvements on the society, and improved transparency on governance. The review will give priority to proposals that have clear and significant positive impacts on the environment or society.

• Resource matching: Do the resources provided by the Co-creation Startup Plan and its partners just meet the needs of the proposal? For example, if a proposal requires a large amount of AI and cloud computing resources, and the Co-creation Startup Plan has the relevant strengths, then the matching degree is high. Projects with matching resources are more likely to achieve significant results in this plan.

• Financial and budgetary rationality: Is the budget requirement proposed in the proposal reasonable and specific? Is the planning of fund use clear and in line with the goal? For projects that require large investments, the review will also consider their financial sustainability and whether there are other sources of funds.

• Risk Awareness and Backup Plans: Has the team identified the major risks (technical, commercial, or management) that may be encountered during the execution process and proposed corresponding mitigation measures? A sound risk planning shows the maturity of the team and the reliability of the project.

• Corporate commitment and culture: Especially for proposals from mature companies, the review will look at the level of support from the company's top management for the transformation project and whether there is a corresponding transformation culture within the company. For example, whether the management is committed to investing the necessary resources and promoting organizational changes to facilitate the smooth implementation of the project.