Pilot Exercise

Global Channel-TES

for rebuilding the global Economy

Due Pilot Exercise in America

Prepared by Li-Chang Kuo

It’s my honor to contribute a new economy model—“Global Channel-TES” for rebuilding the global economy. The core thinking of TES is “One eStore One Business One Job” that tailor-made for creating jobs to those most in need.

“Global Channel-TES” Proposal had been officially submitted by Linda Din when she invited as a keynote speaker at APEC MM 2003 on 4 August in the "Growing the APEC SME Exporter Community II” to win the best practice of strengthening the economy society and helping 240 million people to start a business.

Since a fury storm invaded the world economy to make the economic plague, and to result a serious jobless problem; the universal concern of creating new industry for new jobs has eventually been accepted. We could not rescue that plague and problem by the industries of financial, aerospace, automobile or by IT any more, but by “Micro Business”-a voluntary corporate social responsibility practice in business operation to bear the derivative value chain for the technologicalization of traditional industries to revive the free movement of “people, goods, services and capital”.

“Global Channel-TES” is a multilateral trading system consists of “VAM and Micro Busiiness” to be an “Electronic Store (eStore)”, and to construct “The eStore System (TES)” that specially for the flow of people, goods and investment.

VAM is “Vending Automation Manager”, means an equipment of auto-selling manager, a main component of TES, Intellectual Property Right (IPR) No. US6,304,796B1. The concept of VAM is upgrading the traditional vending machines to be electronic/ informational/ automatic, it is of three major functions: “1. print receipt for pay-tax, 2. auto-reply, 3. by Contactless TranSmart Card ”.

I strongly suggest updating those 20 million vending machines in the world to be VAMs to bring the business opportunity more than USD 200 billion for “people have jobs, enterprises have profits, and governments have taxes”.

Recall that when I was 13 years old, my father was persecuted by government to put in the jail, so that I must start my business to found “Cheng Kuang Metal Works” in Tainan, Taiwan; and to do business with Transworld Electronic Co., Ltd.

Mr. John Lane, the founder of Transworld Electronic was from USA, who brought the ideas and purchasing orders to me that let me be rich from extremely poverty. So I’d be able to lay the foundation of Precision Industry on Taiwan, and then Transworld Electronic was updated to “AVNET Inc.” to list on the NYSE.

In the past years, the United States giving lots of benefits to Taiwan, especially to the private sector; consequently, I’d like to contribute the Pilot Exercise of Global Channel-TES to run in America, then radiated to the world for reviving the economy.

In January 2007, we’ve been in the United States to do due diligence, and completed the evaluation on 19 November 2008 to confirm that “California” is the best place for pilot run, because California is the fourth economy body in the world, GDP more than USD 1.8 trillion, with the excellent infrastructure.

We can see the mini-shop as arrived in the San Francisco Airport, it shows people already accept this kind of concept of auto-selling the goods in addition to the soft drink in California. Therefore, this area should be the best place for pilot exercise.

The immediate effect of pilot run should get the 7.4 million sets of vending machines be updated to VAM in US, the result will be USD 3.1 billion tax receive from the existed revenue of USD 38 billion. Ten thousand dollars help one family; one hundred thousand dollars help one enterprise.

“Global Channel-TES” is ensuring that small entrepreneurs and SMEs can access the multilateral trading system and participate in for selling their products out the markets, and benefit from global trade and investment.

Due Diligence in California, the result as bellows:

1	Assume that one eStore for 1,000 residents in the pilot exercise, it means 36 million residents in California can install 36,000 eStores, USD 50,000 per unit output will produce the revenue of USD 1.8 billion.
2	US’ GDP around USD 14.4 trillion, it means the GDP of California more than USD 1.8. trillion—a sufficient market for running the pilot. There will be 1,892,000 eStores able to install in US for creating 1,892,000 job opportunities.
3	If run the pilot of 10,000 units succeeded in California, then, the model can be radiated to the global market to stimulate a rapid recovery of the recession.
4	The area of California is 403,933 Km2, 1,240 Km from north to south, 402.5 Km from west to east.
5	The route approximate 700 Km of pilot run will be from Sacramento, Silicon Valley to Los Angels and Orange County.

(Ten thousand dollars help one family; one hundred thousand dollars help one enterprise.)

The route of Pilot Exercise as following: (A “County” as one unit)

#	COUNTY	Capital	Population	Area(Km2)	City	eStore
1	Sacramento	Sacramento	1,374,724	2,501.02	6	800
3	Alameda	Oakland	1,457,426	1,910.30	14	800
2	San Francisco	San Francisco	744,041	120.93	0	700
4	San Mateo	Redwood City	705,499	1,163.09	20	600
5	Santa Clara	San Jose	1,731,281	3,342.87	15	900
6	Fresno	Fresno	891,756	15,443.40	15	700
7	Kern	Bakersfield	780,117	21,084.99	11	700
8	Santa Barbara	Santa Barbara	400,335	7,088.82	8	300
9	Los Angels	L.A.	9,948,081	10,517.60	88	3,000
10	Orange	Santa Ana	3,002,048	2,044.54	34	1,500
		Total	21,035,308	65,217.56	211	10,000
* The Regional Control Center projected to set up in San Jose of Silicon Valley.

When the first step-“Pilot Run” succeeded, the work will be proceeded to the second step, and culminates in third step to produce more jobs in the world.

The second step to run the Partial Commercialization in US as belows:

Population	GDP(USD)	Q’ty of TES	Unit Output	Revenue(USD)	Tax(USD)
308 million	14.4 trillion	1,892,000 eStores	USD 50,000	94.6 billion	7.8 billion

Market Plan of “Global Channel-TES”:

Step	Work	Quantity (unit)	Estimated Effect
1	Pilot Run	10,000	To upgrade 7.4 million VAMs for levying tax of USD 3.1 billion.
2	Partial Commercialization	1,892,000	One eStore One Business One Job to create 1,892,000 jobs in USA.
3	General Implementation To 30 markets	5,154,000	Enhancing Human Security remains labor has job, family has bread, and to ensure that free movement of people, goods and investments.

We’ll organize a Task Force for Raising Fund:

Item	Abstract	Status	Raising Fund	Purposes
1	Pre-sell	10,000 eStores	USD 200 million	For pilot run
2	Public Float	10 million shares	USD 500 million	For approaching the goal
3	Go Public	Capital Market	---	The general implementation

In addition, we’ve been promoting to issue 1.7 billion TranSmart cards at APEC CEO SUMMIT 2006, USD 50 per card for USD 85 billion to do social responsibility investment, in order to install 5.15 million eStores as the micro businesses to produce new jobs for achieving the common prosperity for the needy.

The current global financial crisis is the most serious economic plague we have ever faced. For a rapid recovery of the recession that the followings must be done:

1. The talent of people must be achieved. 2. The benefit of land must be accomplished. 3. The flow of goods must be circulated. 4. The use of material must be completed.

(人盡其才) (地盡其利) (貨暢其流) (物盡其用)

The Paradigm of Social Responsibility Investment--“Global Channel-TES” is a vital action plan of people through voluntary service to others and, necessary economic and financial measures for resolving this crisis to offer hope to the world.

Prepared by Li-Chang Kuo on 31 August, 2009

Panhornic ComMec Holding Co., Ltd.

551, You-Yuan N. Rd., Long-Jing, Taichung, 434 Taiwan

E-mail:richtwn@ms62.hinet.net Fax:886-4-2632-3709