P AR T I 25 Maintain focus on maximizing stockholder value  We are committed to maximizing stockholder value and intend to maintain our high dividend payout policy. Following our  privatization, we have more flexibility to implement capital management initiatives, including possible repurchases of our outstanding  common shares and increases in our leverage through debt financing. We bought back 121,075,000 shares between August 29, 2007  and October 25, 2007 and cancelled those shares on December 29, 2007 and February 21, 2008, respectively.  We continued our capital reduction plan from 2007 to 2010. We effected the last capital reduction plan in 2010 by reducing  20% capital stock in the amount of NT$19.4 billion. The cash payment of NT$19.4 billion was made on January 25, 2011 to our  stockholders.  Going forward, we may consider making other equity investments and acquisitions that we believe are complementary to our  business and strategic goals. Our future investment will be aimed at expanding our business scale and scope, making better use of  our research and development resources and operational experience and increasing our revenues through investing in core telecom  businesses as well as value-added services. We expect to target the markets of our overseas investments from Southeast Asia to China  while carefully evaluating the risks involved.  Please also see notes 1 and 13 to our consolidated financial statements included elsewhere in this annual report for our current  strategic investments. In February 2012, we subscribed for shares of China Airlines in an equity offering and became a 5.1% stockholder of China  Airlines Ltd. We expect to leverage the airline’s expertise and operational experience within the tourism and transportation industries  to develop relevant Information and Communications Technology services, including intelligent tourism and transportation cloud  services. We plan to develop and offer cloud-based tourism services to address the needs of the tourism industry, and we expect China  Airlines Ltd. to facilitate the development and penetration of our cloud-based tourism service by introducing our service to potential  users. In September 2011, we invested in Huada Digital Corporation and owned 50% of this company as of December 31, 2011.  Huada Digital Corporation mainly engages in providing software services. In August 2011, we and United Daily News established a joint venture, Smartfun Digital Co., Ltd., which mainly engages  in sales of educational software and providing digital parenting education. As of December 31, 2011, we owned 65% of Smartfun  Digital Co., Ltd. In July 2011, we established Chunghwa Sochamp Technology Inc., which mainly engages in license plate recognition  systems. As of December 31, 2011, we owned 51% of Chunghwa Sochamp Technology Inc. In May 2011, we, together with President Chain Store Corporation and EasyCard Corporation established Dian Zuan  Integrating Marketing Co., Ltd., or DZIM. As of December 31, 2011, we owned 40% of DZIM. DZIM engages mainly in  information technology services and general advertising services. In May 2011, we established a wholly owned subsidiary Chunghwa Telecom Vietnam Co., Ltd. in Vietnam, which engages  mainly in providing International Private Leased Circuit, or IPLC, and Intelligent Energy Network, or iEN, services to Taiwanese  enterprises in Vietnam. In March 2011, we established a wholly owned subsidiary Chunghwa Telecom (China) Co., Ltd., which engages mainly in  providing services of planning, design, and intergration of information systems.  In September 2010, we established Chunghwa Precision Test Tech. USA Corporation, that engages in the testing service of  semi-conductor components and printed circuit boards.  In June 2010, we became a 18.2% stockholder of CQi Energy Infocom Inc., or CQi, which engages mainly in intelligent  energy network management services. 