PCSC — Audit Report / Information 2019

Nov 22, 2019

PRESIDENT CHAIN STORE CORP.

PARENT COMPANY ONLY

FINANCIAL STATEMENTS AND REPORT OF

INDEPENDENT ACCOUNTANTS DECEMBER 31, 2019 AND 2018

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For the convenience of readers and for information purpose only, the auditors’ report and the accompanying financial statements have been translated into English from the original Chinese version prepared and used in the Republic of China. In the event of any discrepancy between the English version and the original Chinese version or any differences in the interpretation of the two versions, the Chinese-language auditors’ report and financial statements shall prevail.

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PRESIDENT CHAIN STORE CORP.

PARENT COMPANY ONLY

FINANCIAL STATEMENTS AND REPORT OF INDEPENDENT ACCOUNTANTS DECEMBER 31, 2019 AND 2018

CONTENTS

Items 1. Cover 2. Contents 3. Report of independent accountants 4. Parent company only balance sheets 5. Parent company only statements of comprehensive income 6. Parent company only statements of changes in equity 7. Parent company only statements of cash flows 8. Notes to the parent company only financial statements (1) History and organisation (2) The date of authorisation for issuance of the parent company only financial statements and procedures for authorisation (3) Application of new standards, amendments and interpretations (4) Summary of significant accounting policies (5) Critical accounting judgements, estimates and key sources of assumption uncertainty (6) Details of significant accounts (7) Related party transactions (8) Pledged assets (9) Significant contingent liabilities and unrecognized contract commitments (10) Significant disaster loss (11) Significant events after the balance sheet date (12) Others (13) Supplementary disclosures (14) Segment information

Page/Reference

1 2 ~ 3 4 ~ 9 10 ~ 11 12 13 14 ~ 15 16 ~ 64 16 16 16 ~ 18 18 ~ 28 28 28 ~ 52 52 ~ 56 56 56 56 56 56 ~ 63 63 ~ 64 64

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Items 9. Contents of statement of major accounting items Statement of cash and cash equivalents Statement of inventories Statement of changes in financial assets at fair value through other comprehensive income–non-current Statement of changes in financial assets at fair value through profit or loss–non-current Statement of changes in investments accounted for using equity method Statement of changes in property, plant and equipment Statement of changes in right-of-use assets Statement of short-term borrowings Statement of lease liabilities Statement of operating revenue Statement of operating costs Statement of selling expenses Statement of employee benefit, depreciation and amortization by function

Page/Reference

Statement 1 Statement 2 Statement 3 Statement 4 Statement 5 Statement 6 Statement 7 Statement 8 Statement 9 Statement 10 Statement 11 Statement 12 Statement 13

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REPORT OF INDEPENDENT ACCOUNTANTS TRANSLATED FROM CHINESE

To the Board of Directors and Stockholders of President Chain Store Corp.

Opinion

We have audited the accompanying parent company only balance sheets of President Chain Store Corp. as of December 31, 2019 and 2018, and the related parent company only statements of comprehensive income, of changes in equity, and of cash flows for the years then ended, and the notes to the parent company only financial statements, including a summary of significant accounting policies.

In our opinion, based on our audits and the reports of other independent accountants (which are described in the Other matters section of our report), the accompanying parent company only financial statements present fairly, in all material respects, the parent company only financial position of President Chain Store Corp. as of December 31, 2019 and 2018, and its parent company only financial performance and its parent company only cash flows for the years then ended, in accordance with the “Regulations Governing the Preparation of Financial Reports by Securities Issuers”.

Basis for opinion

We conducted our audits in accordance with the “Regulations Governing Auditing and Attestation of Financial Statements by Certified Public Accountants” and generally accepted auditing standards in the Republic of China (ROC GAAS). Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Parent Company Only Financial Statements section of our report. We are independent of the Company in accordance with the Code of Professional Ethics for Certified Public Accountants in the Republic of China, and we have fulfilled our other ethical responsibilities in accordance with this Code. Based on our audits and the reports of other independent accountants, we believe the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Key audit matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the parent company only financial statements for the year ended December 31, 2019. These matters were addressed in the context of our audit of the parent company only financial statements as a whole, and in forming our opinion thereon, we do not provide a separate opinion on these matters.

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Key audit matters for the Company’s parent company only financial statements for the year ended December 31, 2019 are stated as follows:

Completeness and accuracy of retail sales revenue

Description

Please refer to Notes 4(23) and 6(21) to the parent company only financial statements for the accounting policy and the details of accounting relating to this key audit matter.

Retail sales revenue is generated by point-of-sale (POS) terminals, which record the merchandise name, quantity, sales price and total sales amount of each transaction using pre-established merchandise master file data (including merchandise name, cost of inventory, retail price, sales promotions, etc.). After the daily closing process, each store manager uploads the sales information to the ERP (enterprise resource planning) system, which summarizes all sales and automatically generates sales revenue journal entries. Each store manager also prepares a daily cash report to record the sales information and payment methods (including cash, gift certificates, credit cards and electronic payment devices, etc.) and the cash deposited to the bank.

As retail sales revenue comprises numerous small amount transactions and highly relies on the POS and ERP systems, the process of summarizing and recording sales revenue by these systems is important with regard to the completeness and accuracy of the retail sales revenue, and thus has been identified as a key audit matter.

How our audit addressed the matter

Our key audit procedures performed in respect of the above included the following:

1. Inspected whether additions and changes to the merchandise master file data had been properly approved and supported by relevant documents;

2. Inspected whether approved additions and changes to the merchandise master file data had been correctly entered in the merchandise master file;

3. Inspected whether merchandise master file data had been periodically transferred to POS terminals in stores;

4. Inspected whether sales information in POS terminals was periodically and completely transferred to the ERP system and automatically generated sales revenue journal entries;

5. Inspected manual sales revenue journal entries and relevant documents;

6. Inspected daily cash reports and relevant documents; and

7. Inspected whether cash deposit amounts recorded in daily cash reports were in agreement with bank remittance amounts.

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Cost-to-retail ratio of retail inventory method

Description

Please refer to Notes 4(11) and 6(3) to the parent company only financial statements for the accounting policy and the details of accounting relating to this key audit matter.

As there are various kinds of merchandise, the retail inventory method is used to estimate the cost of inventory and the cost of goods sold. The retail inventory method uses the ratio of the cost of goods purchased to their retail value (known as cost-to-retail ratio) to calculate the cost of inventory and the cost of goods sold. The calculation of the cost-to-retail ratio highly relies on the goods purchased both at cost and retail price, and thus has been identified as a key audit matter.

How our audit addressed the matter

Our key audit procedures performed in respect of the above included the following:

1. Interviewed management to understand the calculation of the cost-to-retail ratio under the retail inventory method, and inspected whether it had been consistently applied in the comparative periods of the financial statements;

2. Inspected whether additions and changes to the merchandise master file data (including merchandise name, cost of inventory, retail price, sales promotions, etc.) had been properly approved and the data correctly entered in the merchandise master file;

3. Inspected whether the cost and retail price of inventory purchased as per delivery receipts were in agreement with POS purchase records after acceptance of the inventory;

4. Inspected whether the POS records for the cost and retail price of inventory purchased were periodically and completely transferred to the ERP system and ascertain whether the records could not be changed manually; and

5. Calculated the cost-to-retail ratio to verify its accuracy.

Other matter –Using the work of other auditors

We did not audit the financial statements of certain investee companies. The balance of these investments accounted for using equity method amounted to NT$2,528,945 thousand and NT$2,210,541 thousand, representing 1.9% and 2.5% of total assets as of December 31, 2019 and 2018, respectively, and the related total comprehensive net income (including share of profit of subsidiaries, associates and joint ventures accounted for using equity method and share of other comprehensive income of subsidiaries, associates and joint ventures accounted for using equity method) amounted to NT$ 412,872 thousand and NT$415,363 thousand, representing 4.1% and 3.9%

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of total comprehensive net income for the years then ended, respectively. Those financial statements were audited by other independent accountants whose reports thereon have been furnished to us, and our opinion expressed herein, insofar as it relates to the amounts included in the financial statements and the information on investees disclosed in Note 13 were based solely on the reports of other independent accountants.

Responsibilities of management and those charged with governance for the parent

company only financial statements

Management is responsible for the preparation and fair presentation of the parent company only financial statements in accordance with the “Regulations Governing the Preparation of Financial Reports by Securities Issuers”, and for such internal controls as management determines is necessary to enable the preparation of parent company only financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the parent company only financial statements, management is responsible for assessing the Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.

Those charged with governance, including the audit committee, are responsible for overseeing the financial reporting process of the Company.

Auditor’s responsibilities for the audit of the parent company only financial statements

Our objectives are to obtain reasonable assurance about whether the parent company only financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but it is not a guarantee that an audit conducted in accordance with ROC GAAS will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these parent company only financial statements.

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As part of an audit in accordance with ROC GAAS, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

1. Identify and assess the risks of material misstatement in the parent company only financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls.

2. Obtain an understanding of internal controls relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal controls of the Company.

3. Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.

4. Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the parent company only financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Company to cease to continue as a going concern.

5. Evaluate the overall presentation, structure and content of the parent company only financial statements, including the disclosures, and whether the parent company only financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

6.

• Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Company to express an opinion on the parent company only financial statements. We are responsible for the direction, supervision and performance of the audit. We remain solely responsible for our audit opinion.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal controls that we identify during our audit.

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We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the parent company only financial statements for the year ended December 31, 2019 and are, therefore, considered to be the key audit matters. We describe these matters in our auditor’s report unless the law or regulations preclude public disclosure about the matter, or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

Yi-Chang, Liang Chien-Hung, Chou

For and on behalf of PricewaterhouseCoopers, Taiwan 27 February, 2020

------------------------------------------------------------------------------------------------------------------------------------------------The accompanying parent company only financial statements are not intended to present the financial position and results of operations and cash flows in accordance with accounting principles generally accepted in countries and jurisdictions other than the Republic of China. The standards, procedures and practices in the Republic of China governing the audit of such financial statements may differ from those generally accepted in countries and jurisdictions other than the Republic of China. Accordingly, the accompanying parent company only financial statements and report of independent accountants are not intended for use by those who are not informed about the accounting principles or auditing standards generally accepted in the Republic of China, and their applications in practice.

As the financial statements are the responsibility of the management, PricewaterhouseCoopers, Taiwan cannot accept any liability for the use of, or reliance on, the English translation or for any errors or misunderstandings that may derive from the translation.

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PRESIDENT CHAIN STORE CORP.

PARENT COMPANY ONLY BALANCE SHEETS

(Expressed in thousands of New Taiwan dollars)

Assets	Notes 6(1) 6(2) 7(3) 6(3) 6(4) 6(5) 6(6) and 7(3) 6(7) 6(8) and 7(3) 6(10) 6(11) 6(27) 6(12)	December 31, 2019 AMOUNT % $ 10,697,878 8 591,655 - 2,274,167 2 8,036,366 6 126,974 - 1,393,703 1 23,120,743 17 85,565 - 807,115 1 50,117,541 38 10,477,703 8 44,373,492 33 1,203,684 1 84,728 - 800,250 1 1,393,227 1 109,343,305 83 $ 132,464,048 100	December 31, 2018	December 31, 2018
		AMOUNT $ 10,697,878 591,655 2,274,167 8,036,366 126,974 1,393,703 23,120,743 85,565 807,115 50,117,541 10,477,703 44,373,492 1,203,684 84,728 800,250 1,393,227 109,343,305 $ 132,464,048	AMOUNT $ 14,070,715 603,890 2,515,131 8,020,368 196,990 1,560,262 26,967,356 85,683 644,614 49,094,402 9,114,219 - 1,189,454 119,019 800,458 1,231,311 62,279,160 $ 89,246,516	%
Current assets 1100 Cash and cash equivalents 1170 Accounts receivable, net 1200 Other receivables 130X Inventories, net 1410 Prepayments 1470 Other current assets 11XX Total current assets Non-current assets 1510 Financial assets at fair value through profit or loss – non-current 1517 Financial assets at fair value through other comprehensive income – non-current 1550 Investments accounted for using equity method 1600 Property, plant and equipment, net 1755 Right of use assets 1760 Investment property, net 1780 Intangible assets 1840 Deferred income tax assets 1900 Other non-current assets 15XX Total non-current assets 1XXX Total assets				16 - 3 9 - 2
				30
				- 1 55 10 - 1 - 1 2
				70
				100

(Continued)

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PRESIDENT CHAIN STORE CORP.

PARENT COMPANY ONLY BALANCE SHEETS

(Expressed in thousands of New Taiwan dollars)

Liabilities and Equity Current liabilities 2100 Short-term borrowings 2130 Contract liabilities – current 2150 Notes payable 2160 Notes payable – related parties 2170 Accounts payable 2180 Accounts payable – related parties 2200 Other payables 2230 Current income tax liabilities 2280 Lease liabilities – current 2300 Other current liabilities 21XX Total current liabilities Non-current liabilities 2527 Contract liabilities – non-current 2570 Deferred income tax liabilities 2580 Lease liabilities – non-current 2640 Net defined benefit liability – Non-current 2645 Guarantee deposit received 2670 Other non-current liabilities 25XX Total non-current liabilities 2XXX Total liabilities Equity Share capital 3110 Share capital – common stock Capital surplus 3200 Capital surplus Retained earnings 3310 Legal reserve 3320 Special reserve 3350 Unappropriated retained earnings Other equity 3400 Other equity interest 3XXX Total equity 3X2X Total liabilities and equity	December 31, 2019 Notes AMOUNT % 6(13) $ 5,000,000 4 6(21) 1,607,970 1 1,017,922 1 7(3) 4,431,931 4 1,378,550 1 7(3) 8,373,924 6 6(14) 17,134,279 13 6(27) 781,142 1 7(3) 6,950,425 5 6(15) 1,492,567 1 48,168,710 37 6(21) 216,284 - 6(27) 4,149,357 3 7(3) 37,780,192 29 6(16) 2,769,674 2 2,730,126 2 426,824 - 48,072,457 36 96,241,167 73 6(17) 10,396,223 8 6(18) 46,884 - 6(19) 13,314,081 10 - - 12,845,880 10 6(20) ( 380,187 ) ( 1) 36,222,881 27 $ 132,464,048 100	December 31, 2018	December 31, 2018
		AMOUNT $ 6,000,000 1,293,149 1,331,853 4,705,638 1,437,022 8,028,624 18,827,308 1,049,737 - 1,463,092 44,136,423 151,550 3,916,979 - 2,860,605 2,533,958 394,951 9,858,043 53,994,466 10,396,223 45,059 12,293,442 398,859 12,064,862 53,605 35,252,050 $ 89,246,516	%
			7 1 1 5 2 9 21 1 - 2
			49
			- 4 - 3 3 1
			11
			60
			12 - 14 - 14 -
			40
			100

The accompanying notes are an integral part of these parent company only financial statements.

Chairman: Lo, Chih-Hsien President: Huang, Jui-Tien Accounting Manager: Kuo, Ying-Chih

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PRESIDENT CHAIN STORE CORP.

PARENT COMPANY ONLY STATEMENTS OF COMPREHENSIVE INCOME

(Expressed in thousands of New Taiwan dollars, except for earnings per share amounts)

Items

Forthe years endedDecember31 2019 2018 Notes AMOUNT % AMOUNT % 6(21) and 7(3) $ 158,031,567 100 $ 154,074,731 100 6(3)(25) and 7(3) ( 103,854,132)( 66 ) ( 101,062,364) ( 66) 54,177,435 34 53,012,367 34 6(25)(26) ( 42,662,266) ( 27 ) ( 41,041,167) ( 26 ) ( 4,469,102) ( 3 ) ( 4,314,519) ( 3 ) 12(2) - - ( 2,100) - ( 47,131,368)( 30 ) ( 45,357,786) ( 29 ) 7,046,067 4 7,654,581 5 7(3) 6(22) 1,325,894 1 1,417,538 1 6(23) 22,788 - ( 68,816) - 6(24) ( 359,593) - ( 42,971) - 6(6) 4,185,310 2 3,473,458 2 5,174,399 3 4,779,209 3 12,220,466 7 12,433,790 8 6(27) ( 1,677,606)( 1 ) ( 2,227,402) ( 1) $ 10,542,860 6 $ 10,206,388 7 6(16) $ 71,511 - ( $ 29,219) - 6(5)(20) 162,501 - ( 143,849) - ( 46,547) - ( 73,714) - 6(27) ( 24,252) - 49,725 - 163,213 - ( 197,057) - 6(20) ( 578,743) - 619,530 - ( 10,566) - 2,289 - ( 589,309) - 621,819 - ( $ 426,096) - $ 424,762 - $ 10,116,764 6 $ 10,631,150 7 6(28) $ 10.14 $ 9.82 6(28) $ 10.12 $ 9.79

4000 Operating revenue 5000 Operating costs 5900 Gross profit Operating expenses 6100 Selling expenses 6200 General and administrative expenses 6450 Expected credit losses 6000 Total operating expenses 6900 Operating profit Non-operating income and expenses 7010 Other income 7020 Other gains and losses 7050 Finance costs 7070 Share of profit of subsidiaries, associates and joint ventures accounted for using equity method 7000 Total non-operating income and expenses 7900 Profit before income tax 7950 Income tax expense 8200 Profit for the year Other comprehensive (loss) income 8311 Gain (loss) on remeasurement of defined benefit plan 8316 Unrealized gain (loss) on valuation of equity instruments at fair value through other comprehensive income 8330 Share of other comprehensive loss of subsidiaries, associates and joint ventures accounted for using equity method, components of other comprehensive income that will not be reclassified to profit or loss 8349 Income tax related to components of other comprehensive income that will not be reclassified to profit or loss 8310 Components of other comprehensive income (loss) that will not be reclassified to profit or loss 8361 Financial statements translation differences of foreign operations 8380 Share of other comprehensive (loss) income of subsidiaries, associates and joint ventures accounted for using equity method, components of other comprehensive income that will be reclassified to profit or loss 8360 Components of other comprehensive (loss) income that will be reclassified to profit or loss 8300 Total other comprehensive (loss) income for the year 8500 Total comprehensive income for the year 9750 Basic earnings per share (in dollars) 9850 Diluted earnings per share (in dollars)

The accompanying notes are an integral part of these parent company only financial statements.

Chairman: Lo, Chih-Hsien President: Huang, Jui-Tien Accounting Manager: Kuo, Ying-Chih

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PRESIDENT CHAIN STORE CORP.

PARENT COMPANY ONLY STATEMENTS OF CHANGES IN EQUITY

(Expressed in thousands of New Taiwan dollars)

For the year ended December 31, 2018 Balance at January 1, 2018 Adjustments under new standards Adjusted beginning balance Profit for the year Other comprehensive income (loss) for the year Total comprehensive income(loss)for the year Distribution of 2017 earnings: Legal reserve Special reserve Cash dividends Overdue unclaimed cash dividend transferred to capital surplus Adjustment of capital surplus due to associates’ adjustment of capital surplus Balance at December 31, 2018 For the year ended December 31, 2019 Balance at January 1, 2019 Profit for the year Other comprehensive income (loss) for the year Total comprehensive income (loss) for the year Distribution of 2018 earnings: Legal reserve Special reserve Cash dividends Overdue unclaimed cash dividend transferred to capital surplus Adjustment of capital surplus due to associates’ adjustment of capital surplus Disposal of equity instruments designated at fair value through other comprehensive income of associates Balance at December 31, 2019	Notes	Share capital – common stock $ 10,396,223 - 10,396,223 - - - - - - - - $ 10,396,223 $ 10,396,223 - - - - - - - - - $ 10,396,223	Capital surplus $ 43,875 - 43,875 - - - - - - 536 648 $ 45,059 $ 45,059 - - - - - - 1,235 590 - $ 46,884		Retained Earnings
	6(20) 6(19) 6(20) 6(19)

The accompanying notes are an integral part of these parent company only financial statements.

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PRESIDENT CHAIN STORE CORP.

PARENT COMPANY ONLY STATEMENTS OF CASH FLOWS

(Expressed in thousands of New Taiwan dollars)

CASH FLOWS FROM OPERATING ACTIVITIES Profit before income tax for the year Adjustments to reconcile profit before income tax to net cash provided by operating activities Income and expenses having no effect on cash flows Expected credit losses Depreciation expense Amortization expense Finance costs Share of profit of subsidiaries, associates and joint ventures accounted for using equity method Depreciation on investment property Gain on disposal of investments accounted for using equity Interest income Dividend income Reversal of impairment loss on property, plant and equipment (Gain) loss on disposal of property, plant and equipment Gain from lease modification Changes in assets/liabilities relating to operating activities Net changes in assets relating to operating activities Accounts receivable Other receivables Inventories Prepayments Other current assets Other non-current assets Net changes in liabilities relating to operating activities Contract liabilities–current Notes payable Accounts payable Other payables Other current liabilities Contract liabilities – non-current Net defined benefit liability Other non-current liabilities Cash generated from operations Interest received Income tax paid Interest paid Dividends received Net cash provided by operating activities

For the years ended December 31 Notes 2019 2018 $ 12,220,466 $ 12,433,790 12(2) - 2,100 6(7)(8)(25) 8,986,348 2,096,300 6(11)(25) 55,700 92,846 6(24) 359,593 42,971 6(6) ( 4,185,310 ) ( 3,473,458 ) 6(10) 7,440 7,365 6(6)(23) - ( 59 ) 6(22) ( 38,037 ) ( 83,534 ) 6(22) ( 49,542 ) ( 65,124 ) 6(7)(23) - ( 2,401 ) 6(23) ( 11,253 ) 9,632 6(23) ( 33,255 ) - 12,235 ( 4,992 ) 239,949 76,934 ( 15,998 ) ( 825,661 ) ( 36,821 ) 70,748 166,559 86,361 ( 161,916 ) ( 54,589 ) 314,821 140,135 ( 587,638 ) 298,181 286,828 703,724 ( 1,714,521 ) ( 234,672 ) 29,475 156,252 64,734 939 ( 19,420 ) ( 10,994 ) ( 4,657 ) 16,900 15,885,780 11,479,694 39,052 107,590 6(27) ( 1,737,867 ) ( 2,423,741 ) ( 348,890 ) ( 32,687 ) 2,735,708 7,731,235 16,573,783 16,862,091

(Continued)

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PRESIDENT CHAIN STORE CORP.

PARENT COMPANY ONLY STATEMENTS OF CASH FLOWS

(Expressed in thousands of New Taiwan dollars)

CASH FLOWS FROM INVESTING ACTIVITIES Return of capital from financial assets at fair value through profit or loss Acquisition of investments accounted for using equity method Proceeds from disposal of investments accounted for using equity method Return of capital from investments accounted for using equity method Acquisition of property, plant and equipment Proceeds from disposal of property, plant and equipment Acquisition of intangible assets Net cash used in investing activities CASH FLOWS FROM FINANCING ACTIVITIES Payments of lease liabilities Payment of cash dividends (Decrease) increase in short term borrowings Increase in guarantee deposit received Net cash used in financing activities Decrease in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year

For the years ended December 31 Notes 2019 2018 $ 118 $ 151 6(6) and 7(3) ( 200,000 ) ( 3,226,806 ) 6(6) and 7(3) 41,657 1,828 6(6) - 180,000 6(30) ( 3,359,789 ) ( 2,303,297 ) 149,016 26,027 6(11) ( 21,409) - ( 3,390,407) ( 5,322,097) 6(31) ( 6,603,705 ) - 6(19) ( 9,148,676 ) ( 25,990,556 ) 6(31) ( 1,000,000 ) 6,000,000 6(31) 196,168 98,296 ( 16,556,213) ( 19,892,260) ( 3,372,837 ) ( 8,352,266 ) 14,070,715 22,422,981 $ 10,697,878 $ 14,070,715

The accompanying notes are an integral part of these parent company only financial statements.

Chairman: Lo, Chih-Hsien President: Huang, Jui-Tien Accounting Manager: Kuo, Ying-Chih

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PRESIDENT CHAIN STORE CORP.

NOTES TO THE PARENT COMPANY ONLY FINANCIAL STATEMENTS DECEMBER 31, 2019 AND 2018

(Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

1. HISTORY AND ORGANISATION

• (1) President Chain Store Corporation (the “Company”) was established on June 10, 1987. The Company is primarily engaged in the investment and operation of convenience store chains. Business items included sales of food, beverages, coffee, daily commodities of cosmetics and health care products. The common shares of the Company have been listed on the Taiwan Stock Exchange since August 22, 1997.

• (2) The Company’s ultimate parent company is Uni-President Enterprises Corp., which holds 45.4% equity interest in the Company.

• THE DATE OF AUTHORISATION FOR ISSUANCE OF THE PARENT COMPANY ONLY FINANCIAL STATEMENTS AND PROCEDURES FOR AUTHORISATION

These parent company only financial statements were authorized for issuance by the Board of Directors on February 27, 2020.

3. APPLICATION OF NEW STANDARDS, AMENDMENTS AND INTERPRETATIONS

• (1) Effect of the adoption of new issuances of or amendments to International Financial Reporting Standards (“IFRS”) as endorsed by the Financial Supervisory Commission (“FSC”).

New standards, interpretations and amendments endorsed by FSC effective from 2019 are as follows:

follows:
New Standards, Interpretations and Amendments Amendments to IFRS 9, ‘Prepayment features with negative compensation’ IFRS 16, ‘Lease’ Amendments to IAS 19, ‘Plan amendment, curtailment or settlement’ Amendments to IAS 28, ‘Long-term interests in associates and joint ventures’ IFRIC 23, ‘Uncertainty over income tax treatments’ Annual improvements 2015-2017 cycle	Effective date by International Accounting Standards Board
	January 1, 2019 January 1, 2019 January 1, 2019 January 1, 2019 January 1, 2019 January 1, 2019

Except for the following, the above standards and interpretations have no significant impact to the Company’s financial condition and operating results based on the Company’s assessment.

IFRS 16, ‘Leases’

• (a) IRS 16, ‘Leases’, replaces IAS 17, ‘Leases’ and related interpretations and SICs. The standard requires lessees to recognize a 'right-of-use asset' and a lease liability (except for those leases with terms of 12 months or less and leases of low-value assets). The accounting stays the same for lessors, which is to classify their leases as either finance leases or operating leases and account for those two types of leases differently. IFRS 16 only requires enhanced disclosures to be provided by lessors.

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• (b) The Company has elected to apply IFRS 16 by not restating the comparative information (referred herein as the ‘modified retrospective approach’) when applying “IFRSs” effective in 2019 as endorsed by the FSC. Accordingly, the Company increased ‘right-of-use asset’ by $27,293,202, increased ‘lease liability’ by $27,486,853, decreased ‘prepayments’ by $106,837, decreased ‘property, plant and equipment’ by $167,270, and decreased ‘other payables’ by $467,758 with respect to the lease contracts of lessees on January 1, 2019.

• (c) The Company has used the following practical expedients permitted by the standard at the date of initial application of IFRS 16:

• i. The use of a single discount rate to a portfolio of leases with reasonably similar characteristics.

ii. The exclusion of initial direct costs for the measurement of ‘right-of-use-asset’.

• (d) The Company calculated the present value of lease liabilities by using the weighted average incremental borrowing interest rate of 1.03%.

• (e) The Company recognised lease liabilities which had previously been classified as ‘operating leases’ under the principles of IAS 17, ‘Leases’. These reconciliation between operating lease commitments under IAS 17 measured at the present value of the remaining lease payments, discounted using the lessee’s incremental borrowing rate and lease liabilities recognised as of January 1, 2019 is as follows:

(2)	Operating lease commitments disclosed by applying IAS 17 as at December 31, 2018 Add: Adjustments relating to changes in the index or rate affecting variable lease payments Less: Contracts reassessed as service agreements Leases not yet commenced to which the lessee is committed Total lease contracts amount recognized as lease liabilities by applying IFRS 16 on January 1, 2019 Incremental borrowing interest rate at the date of initial application Lease liabilities recognized as at January 1, 2019 by applying IFRS 16 Effect of new issuances of or amendments to IFRSs as endorsed by the FSC	$ 41,372,055 496,223 ( 94,395 ) ( 13,313,513 ) $ 28,460,370 1.03% $ 27,486,853 but not yet adopted

by the Company

New standards, interpretations and amendments endorsed by the FSC effective from 2020 are as follows:

follows:
New Standards, Interpretations and Amendments Amendments to IAS 1 and IAS 8, ‘Disclosure Initiative-Definition of Material’ Amendments to IFRS 3, ‘Definition of a business’ Amendments to IFRS 9, IAS 39 and IFRS 7, ‘Interest rate benchmark reform’	Effective date by International Accounting Standards Board
	January 1, 2020 January 1, 2020 January 1, 2020

The above standards and interpretations have no significant impact to the Company’s financial condition and financial performance based on the Company’s assessment.

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(3) IFRSs issued by IASB but not yet endorsed by the FSC

New standards, interpretations and amendments issued by IASB but not yet included in the IFRSs as endorsed by the FSC are as follows:

Effective date by International New Standards, Interpretations and Amendments Accounting Standards Board Amendments to IFRS 10 and IAS 28, ‘Sale or contribution of To be determined by assets between an investor and its associate or joint venture’ International Accounting Standards Board IFRS 17, ‘Insurance contracts’ January 1, 2021 Amendments to IAS 1, ‘Classification of liabilities as current January 1, 2022 or non-current’

The above standards and interpretations have no significant impact to the Company’s financial condition and financial performance based on the Company’s assessment.

4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The principal accounting policies in the preparation of these parent company only financial statements are set out below. These policies have been consistently applied to all the periods presented, unless otherwise stated.

(1) Compliance statement

The parent company only financial statements have been prepared in accordance with the “Regulations Governing the Preparation of Financial Reports by Securities Issuers”.

• (2) Basis of preparation

• A. Except for the following items, the parent company only financial statements have been prepared under the historical cost convention:

  • (a) Financial assets and financial liabilities at fair value through profit or loss.

  • (b) Financial assets at fair value through other comprehensive income.

  • (c) Defined benefit liabilities recognized based on the net amount of pension fund assets less the present value of defined benefit obligations.

• B. The preparation of financial statements, in conformity with IFRSs, requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the Company’s accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the parent company only financial statements are disclosed in Note 5.

• (3) Foreign currency translation

Items included in the financial statements of the Company are measured using the currency of the primary economic environment in which the Company operates (the “functional currency”). The parent company only financial statements are presented in New Taiwan Dollars, which is the Company’s functional currency.

• A. Foreign currency transactions and balances

• (a) Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions or valuation where items are remeasured. Foreign exchange gains and losses resulting from the settlement of such transactions are recognized in profit or loss in the period in which they arise.

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• (b) Monetary assets and liabilities denominated in foreign currencies at the period end are re-translated at the exchange rates prevailing at the balance sheet date. Exchange differences arising upon re-translation at the balance sheet date are recognized in profit or loss.

• (c) Non-monetary assets and liabilities denominated in foreign currencies held at fair value through profit or loss are re-translated at the exchange rates prevailing at the balance sheet date; their translation differences are recognized in profit or loss. Non-monetary assets and liabilities denominated in foreign currencies held at fair value through other comprehensive income are re-translated at the exchange rates prevailing at the balance sheet date; their translation differences are recognized in other comprehensive income. However, non-monetary assets and liabilities denominated in foreign currencies that are not measured at fair value are translated using the historical exchange rates at the dates of the initial transactions.

• (d) All other foreign exchange gains and losses based on the nature of those transactions are presented in the statement of comprehensive income within ‘other gains and losses’.

• B. Translation of foreign operations

• (a) The operating results and financial position of all the group entities, associates and jointly arrangements that have a functional currency different from the presentation currency are translated into the presentation currency as follows:

  • i. Assets and liabilities for each balance sheet presented are translated at the closing exchange rate at the date of that balance sheet;

  • ii. Income and expenses for each statement of comprehensive income are translated at average exchange rates of that period; and

  • iii. All resulting exchange differences are recognized in other comprehensive income.

• (b) When the foreign operation partially disposed of or sold is an associate or jointly arrangements, exchange differences that were recorded in other comprehensive income are proportionately reclassified to profit or loss as part of the gain or loss on sale. In addition, if the Company retains partial interest in the former foreign associate or jointly arrangements after losing significant influence over the former foreign associate, or losing joint control of the former jointly arrangements, such transactions should be accounted for as disposal of all interest in these foreign operations.

• (c) When the foreign operation partially disposed of or sold is a subsidiary, cumulative exchange differences that were recorded in other comprehensive income are proportionately transferred to the non-controlling interest in this foreign operation. In addition, even when the Company retains partial interest in the former foreign subsidiary after losing control of the former foreign subsidiary, such transactions should be accounted for as disposal of all interest in the foreign operation.

(4) Classification of current and non-current items

• A. Assets that meet one of the following criteria are classified as current assets; otherwise they are classified as non-current assets:

• (a) Assets arising from operating activities that are expected to be realized, or are intended to be sold or consumed within the normal operating cycle;

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• (b) Assets held mainly for trading purposes;

• (c) Assets that are expected to be realized within 12 months from the balance sheet date;

• (d) Cash and cash equivalents, excluding restricted cash and cash equivalents and those that are to be exchanged or used to settle liabilities more than 12 months after the balance sheet date.

• B. Liabilities that meet one of the following criteria are classified as current liabilities; otherwise they are classified as non-current liabilities:

• (a) Liabilities that are expected to be settled within the normal operating cycle;

• (b) Liabilities arising mainly from trading activities;

• (c) Liabilities that are to be settled within 12 months from the balance sheet date;

• (d) Liabilities for which the repayment date cannot be extended unconditionally to more than 12 months after the balance sheet date. Terms of a liability that could, at the option of the counterparty, result in its settlement by the issue of equity instruments do not affect its classification.

(5) Cash equivalents

Cash equivalents refer to short-term, highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value. Time deposits that meet the definition above and are held for the purpose of meeting short-term cash commitments in operations (including time deposits with contract period of less than 12 months) are classified as cash equivalents.

(6) Financial assets at fair value through profit or loss

• A. Financial assets at fair value through profit or loss are financial assets that are not measured at amortized cost or fair value through other comprehensive income.

• B. On a regular way purchase or sale basis, financial assets at fair value through profit or loss are recognized and derecognized using settlement date accounting.

• C. At initial recognition, the Company measures the financial assets at fair value and recognizes the transaction costs in profit or loss. The Company subsequently measures the financial assets at fair value, and recognizes the gain or loss in profit or loss.

• D. The Company recognizes the dividend income when the right to receive payment is established, future economic benefits associated with the dividend will flow to the Company and the amount of the dividend can be measured reliably.

(7) Financial assets at fair value through other comprehensive income

• A. Financial assets at fair value through other comprehensive income comprise equity securities which are not held for trading, and for which the Company has made an irrevocable election at initial recognition to recognize changes in fair value in other comprehensive income and debt instruments which meet all of the following criteria:

• (a) The objective of the Company’s business model is achieved both by collecting contractual cash flows and selling financial assets; and

• (b) The assets’ contractual cash flows represent solely payments of principal and interest.

• B. On a regular way purchase or sale basis, financial assets at fair value through other comprehensive income are recognized and derecognized using settlement date accounting.

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• C. At initial recognition, the Company measures the financial assets at fair value plus transaction costs. The Company subsequently measures the financial assets at fair value:

• (a) The changes in fair value of equity investments that were recognized in other comprehensive income are reclassified to retained earnings and are not reclassified to profit or loss following the derecognition of the investment. Dividends are recognized as revenue when the right to receive payment is established, future economic benefits associated with the dividend will flow to the Company and the amount of the dividend can be measured reliably.

• (b) Except for the recognition of impairment loss, interest income and gain or loss on foreign exchange which are recognized in profit or loss, the changes in fair value of debt instruments are taken through other comprehensive income. When the financial asset is derecognized, the cumulative gain or loss previously recognized in other comprehensive income is reclassified from equity to profit or loss.

(8) Accounts and notes receivable

• A. Accounts and notes receivable entitle the Company a legal right to receive consideration in exchange for transferred goods or rendered services.

• B. The short-term accounts and notes receivable without bearing interest are subsequently measured at initial invoice amount as the effect of discounting is immaterial.

(9) Impairment of financial assets

For debt instruments measured at fair value through other comprehensive income and financial assets at amortized cost, at each reporting date, the Company recognizes the impairment provision for 12 months expected credit losses if there has not been a significant increase in credit risk since initial recognition or recognizes the impairment provision for the lifetime expected credit losses (ECLs) if such credit risk has increased since initial recognition after taking into consideration all reasonable and verifiable information that includes forecasts. On the other hand, for accounts receivable or contract assets that do not contain a significant financing component, the Company recognizes the impairment provision for lifetime ECLs.

– (10) Leasing arrangement (lessor) operating leases

Lease income from an operating lease (net of any incentives given to the lessee) is recognized in profit or loss on a straight-line basis over the lease term.

(11) Inventories

• A. Purchases are initially recorded at cost. Cost is determined using the retail inventory method.

• B. Ending inventories are stated at the lower of cost and net realizable value, and the item by item approach is used in applying the lower of cost and net realizable value. Net realizable value is the estimated selling price in the ordinary course of business, less the estimated cost of completion and applicable variable selling expenses.

– (12) Investments accounted for using equity method subsidiaries, associates and joint ventures

• A. Subsidiaries are all entities controlled by the Company. The Company controls an entity when the Company is exposed, or has rights, to variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity.

• B. Unrealized gains or losses resulting from inter-company transactions with subsidiaries are eliminated. Necessary adjustments are made to the accounting policies of subsidiaries, to be consistent with the accounting policies of the Company.

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• C. The Company’s share of its subsidiaries’ post-acquisition profits or losses is recognized in profit or loss, and its share of post-acquisition movements in other comprehensive income is recognized in other comprehensive income. When the Company’s share of losses in a subsidiary equals or exceeds its interest in the subsidiary, the Company continues to recognize its share in the subsidiary’s loss proportionately.

• D. Changes in a parent’s ownership interest in a subsidiary that do not result in the parent losing control of the subsidiary (transactions with non-controlling interests) are accounted for as equity transactions, i.e. transactions with owners in their capacity as owner. Any difference between the amount by which the non-controlling interests are adjusted and the fair value of the consideration paid or received is recognized directly in equity.

• E. When the Company loses control of a subsidiary, the Company remeasures any investment retained in the former subsidiary at its fair value. That fair value is regarded as the fair value on initial recognition of a financial asset or the cost on initial recognition of the associate or joint venture. Any difference between fair value and carrying amount is recognized in profit or loss. All amounts previously recognized in other comprehensive income in relation to the subsidiary are reclassified to profit or loss on the same basis as would be required if the related assets or liabilities were disposed of. That is, when the Company loses control of a subsidiary, all gains or losses previously recognized in other comprehensive income in relation to the subsidiary should be reclassified from equity to profit or loss, if such gains or losses would be reclassified to profit or loss when the related assets or liabilities are disposed of.

• F. Associates are all entities over which the Company has significant influence but not control. In general, it is presumed that the investor has significant influence, if an investor holds, directly or indirectly 20 percent or more of the voting power of the investee. Investments in associates are accounted for using the equity method and are initially recognized at cost.

• G. The Company’s share of its associates’ post-acquisition profits or losses is recognized in profit or loss, and its share of post-acquisition movements in other comprehensive income is recognized in other comprehensive income. When the Company’s share of losses in an associate equals or exceeds its interest in the associate, including any other unsecured receivables, the Company does not recognize further losses, unless it has incurred legal or constructive obligations or made payments on behalf of the associate.

• H. When changes in an associate’s equity do not arise from profit or loss or other comprehensive income of the associate and such changes do not affect the Company’s ownership percentage of the associate, the Company recognizes the Company’s share of change in equity of the associate in ‘capital surplus’ in proportion to its ownership.

• I. Unrealized gains on transactions between the Company and its associates are eliminated to the extent of the Company’s interest in the associates. Unrealized losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred. Accounting policies of associates have been adjusted where necessary to ensure consistency with the policies adopted by the Company.

• J. In the case that an associate issues new shares and the Company does not subscribe or acquire new shares proportionately, which results in a change in the Company’s ownership percentage of the associate but maintains significant influence on the associate, then ‘capital surplus’ and ‘investments accounted for under the equity method’ shall be adjusted for the increase or

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decrease of equity interest. If the above condition causes a decrease in the Company’s ownership percentage of the associate, in addition to the above adjustment, the amounts previously recognized in other comprehensive income in relation to the associate are reclassified to profit or loss proportionately on the same basis as would be required if the relevant assets or liabilities were disposed of.

• K. Upon loss of significant influence over an associate, the Company remeasures any investment retained in the former associate at its fair value. Any difference between fair value and carrying amount is recognized in profit or loss.

• L. When the Company disposes its investment in an associate and loses significant influence over this associate, the amounts previously recognized in other comprehensive income in relation to the associate, are reclassified to profit or loss, on the same basis as would be required if the relevant assets or liabilities were disposed of. If it retains significant influence over this associate, the amounts previously recognized in other comprehensive income in relation to the associate are reclassified to profit or loss proportionately in accordance with the aforementioned approach.

• M. When the Company disposes its investment in an associate and loses significant influence over this associate, the amounts previously recognized as capital surplus in relation to the associate are transferred to profit or loss. If it retains significant influence over this associate, the amounts previously recognized as capital surplus in relation to the associate are transferred to profit or loss proportionately.

• N. The Company accounts for its interest in a joint venture using equity method. Unrealized profits and losses arising from the transactions between the Company and its joint venture are eliminated to the extent of the Company’s interest in the joint venture. The Company’s share of its associates’ post-acquisition profits or losses is recognized in profit or loss, and its share of post-acquisition movements in other comprehensive income is recognized in other comprehensive income. However, when the transaction provides evidence of a reduction in the net realizable value of current assets or an impairment loss, all such losses shall be recognized immediately. When the Company’s share of losses in a joint venture equals or exceeds its interest in the joint venture together with any other unsecured receivables, the Company does not recognize further losses, unless it has incurred legal or constructive obligations or made payments on behalf of the joint venture.

• O. According to “Rules Governing the Preparation of Financial Statements by Securities Issuers”, profit for the year and other comprehensive income for the year reported in the parent company only financial statements, shall be equal to profit for the year and other comprehensive income attributable to owners of the parent reported in the consolidated financial statements, equity reported in the parent company only financial statements shall be equal to equity attributable to owners of parent reported in the consolidated financial statements.

• (13) Property, plant and equipment

• A. Property, plant and equipment are initially recorded at cost.

• B. Subsequent costs are included in the asset’s carrying amount or recognized as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Company and the cost of the item can be measured reliably. The carrying amount of the replaced part is derecognized. All other repairs and maintenance are charged to profit or loss during the financial period in which they are incurred.

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• C. Property, plant and equipment are measured subsequently using the cost model. Land is not depreciated. Other property, plant and equipment apply cost model and are depreciated using the straight-line method to allocate their cost over their estimated useful lives. Each part of an item of property, plant, and equipment with a cost that is significant in relation to the total cost of the item must be depreciated separately.

• D. The assets’ residual values, useful lives and depreciation methods are reviewed, and adjusted if appropriate, at each financial year-end. If expectations for the assets’ residual values and useful lives differ from previous estimates or the patterns of consumption of the assets’ future economic benefits embodied in the assets have changed significantly, any change is accounted for as a change in estimate under IAS 8, ‘Accounting Policies, Changes in Accounting Estimates and Errors’, from the date of the change. The estimated useful lives of property, plant and equipment are as follows:

Buildings 50 years Operating equipment 4~7 years Leasehold improvements 7 years

(14) Leasing arrangements (lessee) － right-of-use assets/ lease liabilities (Effective from 2019)

• A. Leases are recognized as a right-of-use asset and a corresponding lease liability at the date at which the leased asset is available for use by the Company. For short-term leases or leases of low-value assets, lease payments are recognized as an expense on a straight-line basis over the lease term.

• B. Lease liabilities include the net present value of the remaining lease payments at the commencement date, discounted using the incremental borrowing interest rate.

Lease payments are comprised of the following:

• (a) Fixed payments, less any lease incentives receivable;

• (b) Variable lease payments that depend on an index or a rate; and

• (c) Amounts expected to be payable by the lessee under residual value guarantees.

The Company subsequently measures the lease liability at amortized cost using the interest method and recognizes interest expense over the lease term. The lease liability is remeasured and the amount of remeasurement is recognized as an adjustment to the right-of-use asset when there are changes in the lease term or lease payments and such changes do not arise from contract modifications.

• C. At the commencement date, the right-of-use asset is stated at cost comprising the following: (a) The amount of the initial measurement of lease liability;

• (b) Any lease payments made at or before the commencement date;

• (c) Any initial direct costs incurred by the lessee; and

• (d) An estimate of costs to be incurred by the lessee in dismantling and removing the underlying asset, restoring the site on which it is located or restoring the underlying asset to the condition required by the terms and conditions of the lease.

The right-of-use asset is measured subsequently using the cost model and is depreciated from the commencement date to the earlier of the end of the asset’s useful life or the end of the lease term. When the lease liability is remeasured, the amount of remeasurement is recognized as an adjustment to the right-of-use asset.

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(15) Leases (Lessee) (Prior to 2019)

Payments made under an operating lease (net of any incentives received from the lessor) are recognized in profit or loss on a straight-line basis over the lease term.

(16) Investment property

An investment property is stated initially at its cost and measured subsequently using the cost model. Except for land, investment property is depreciated on a straight-line basis over its estimated useful life of 50 years.

(17) Intangible assets

Computer software and copyright are stated at cost and amortized on a straight-line basis over its estimated useful life of 3 to 15 years.

(18) Impairment of non-financial assets

The Company assesses at each balance sheet date the recoverable amounts of those assets where there is an indication that they are impaired. An impairment loss is recognized for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs to sell or value in use. When the circumstances or reasons for recognizing impairment loss for an asset in prior years no longer exist or diminish, the impairment loss is reversed. The increased carrying amount due to reversal should not be more than what the depreciated or amortized historical cost would have been if the impairment had not been recognized.

(19) Notes and accounts payable

• A. Accounts payable are liabilities for purchases of raw materials, goods or services and notes payable are those resulting from operating and non-operating activities.

• B. The short-term notes and accounts payable without bearing interest are subsequently measured at initial invoice amount as the effect of discounting is immaterial.

(20) Provisions

The Company’s provisions are presented in ‘Other non-current liabilities’. Provisions are measured at the present value of the expenditures expected to be required to settle the obligation on the balance sheet date, which is discounted using pre-tax discount rate that reflects the current market assessments of the time value of money and the risks specific to the obligation. When discounting is used, the increase in the provision due to passage of time is recognized as interest expense. Provisions are not recognized for future operating losses.

(21) Employee benefits

• A. Short-term employee benefits

Short-term employee benefits are measured at the undiscounted amount of the benefits expected to be paid in respect of service rendered by employees in a period and should be recognized as expense in that period when the employees render service.

• B. Pensions

(a) Defined contribution plan

For defined contribution plans, the contributions are recognized as pension expense when they are due on an accrual basis. Prepaid contributions are recognized as an asset to the extent of a cash refund or a reduction in the future payments.

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(b) Defined benefit plan

• i. Net obligation under a defined benefit plan is defined as the present value of an amount of pension benefits that employees will receive on retirement for their services with the Company in current period or prior periods. The liability recognized in the balance sheet in respect of defined benefit pension plans is the present value of the defined benefit obligation at the balance sheet date less the fair value of plan assets. The defined benefit net obligation is calculated annually by independent actuaries using the projected unit credit method. The rate used to discount is determined by using interest rates of government bonds (at the balance sheet date) of a currency and term consistent with the currency and term of the employment benefit obligations.

• ii. Remeasurements arising on defined benefit plans are recognized in other comprehensive income in the period in which they arise and are recorded as retained earnings.

iii. Past service costs are recognized immediately in profit or loss.

• C. Termination benefits

Termination benefits are employee benefits provided in exchange for the termination of employment as a result from either the Company’s decision to terminate an employee’s employment before the normal retirement date, or an employee’s decision to accept an offer of redundancy benefits in exchange for the termination of employment. The Company recognizes expense when it can no longer withdraw an offer of termination benefits or it recognizes related restructuring costs, whichever is earlier. Benefits that are expected to be due more than 12 months after balance sheet date shall be discounted to their present value.

• D. Employees’, directors’ and supervisors’ remuneration

Employees’ remuneration and directors’ and supervisors’ remuneration are recognized as expense and liability, provided that such recognition is required under legal or constructive obligation and those amounts can be reliably estimated. Any difference between the resolved amounts and the subsequently actual distributed amounts is accounted for as changes in estimates. If employee compensation is distributed by shares, the Company calculates the number of shares based on the closing price at the previous day of the board meeting resolution.

(22) Income tax

• A. The tax expense for the year comprises current and deferred tax. Tax is recognized in profit or loss, except to the extent that it relates to items recognized in other comprehensive income or items recognized directly in equity, in which cases the tax is recognized in other comprehensive income or equity.

• B. The current income tax expense is calculated on the basis of the tax laws enacted or substantively enacted at the balance sheet date in the countries where the Company operates and generates taxable income. Management periodically evaluates positions taken in tax returns with respect to situations in accordance with applicable tax regulations. It establishes provisions where appropriate based on the amounts expected to be paid to the tax authorities. An additional tax is levied on the unappropriated retained earnings and is recorded as income tax expense in the year the stockholders resolve to retain the earnings.

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• C. Deferred tax is recognized, using the balance sheet liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the parent company only balance sheet. However, the deferred tax is not accounted for if it arises from initial recognition of an asset or liability in a transaction other than a business combination that at the time of the transaction affects neither accounting nor taxable profit or loss. Deferred tax is provided on temporary differences arising on investments in subsidiaries and associates, except where the timing of the reversal of the temporary difference is controlled by the Company and it is probable that the temporary difference will not reverse in the foreseeable future. Deferred tax is determined using tax rates (and laws) that have been enacted or substantially enacted by the balance sheet date and are expected to apply when the related deferred tax asset is realized or the deferred tax liability is settled.

• D. Deferred tax assets are recognized only to the extent that it is probable that future taxable profit will be available against which the temporary differences can be utilized. At each balance sheet date, unrecognized and recognized deferred tax assets are reassessed.

• E. A deferred tax asset shall be recognized for the carry forward of unused tax credits resulting from acquisitions of equipment or technology, research and development expenditures and equity investments to the extent that it is possible that future taxable profit will be available against which the unused tax credits can be utilized.

(23) Revenue recognition

• A. Sale of goods

• (a) The Company operates a chain of retail stores. Revenue from the sale of goods is recognized when the Company sells a product to the customer.

• (b) Payment of the transaction price is due immediately when the customer purchases the product. It is the Company’s policy to sell its products to the end customer with a right of return. Therefore, a refund liability and a right to the returned goods (included in ‘other current assets’) are recognized for the products expected to be returned. Accumulated experience is used to estimate such returns using the expected value method. Because the number of products returned has been steady for years, it is highly probable that a significant reversal in the cumulative revenue recognized will not occur. The validity of this assumption and the estimated amount of returns are reassessed at each reporting date.

• (c) The Company operates a loyalty program where retail customers accumulate points for purchases made which entitle them to discount on future purchases. The points provide a material right to customers that they would not receive without entering into a contract. Therefore, the promise to provide points to the customer is a separate performance obligation. The transaction price is allocated to the product and the points on a relative stand-alone selling price basis. The stand-alone selling price per point is estimated on the basis of the discount granted when the points are redeemed and on the basis of the likelihood of redemption, based on past experience. The stand-alone selling price of the product sold is estimated on the basis of the retail price. A contract liability is recognized for the transaction price which is allocated to the points and revenue is recognized when the points are redeemed or expire.

• B.Sales of services

The Company provides delivery services. Revenue from delivering services is recognized when the services have been provided.

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C. Financing components

The Company does not expect to have any contracts where the period between the transfer of the promised goods or services to the customer and payment by the customer exceeds one year. As a consequence, the Company does not adjust any of the transaction prices for the time value of money.

5. CRITICAL ACCOUNTING JUDGEMENTS, ESTIMATES AND KEY SOURCES OF ASSUMPTION UNCERTAINTY

The preparation of these parent company only financial statements requires management to make critical judgements in applying the Company’s accounting policies and make critical assumptions and estimates concerning future events. Assumptions and estimates may differ from the actual results and are continually evaluated and adjusted based on historical experience and other factors. The Company has no such assumptions and estimates which may have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year.

6. DETAILS OF SIGNIFICANT ACCOUNTS

(1) Cash and cash equivalents

TAILS OF SIGNIFICANT ACCOUNTS Cash and cash equivalents
	December 31, 2019	December 31, 2018
Petty cash in store	$ 898,234	$ 1,072,918
Checking accounts and demand deposits	4,601,172	8,198,849
Cash equivalents
Time deposits	500,000	500,000
Short-term financial instruments	4,698,472	4,298,948
	$ 10,697,878	$ 14,070,715

• A. The Company transacts with a variety of financial institutions, all with high credit quality, to disperse credit risk, so it considers the probability of counterparty default as remote.

• B. The Company has no cash and cash equivalents pledged to others.

(2) Accounts receivable

December 31, 2019 Accounts receivable $ 593,087 Less: Allowance for doubtful accounts ( 1,432) ( $ 591,655 A. The ageing analysis of accounts receivable is as follows: December 31, 2019 Not past due $ 589,136 Up to 90 days 3,057 91 to 120 days - Over 121 days 894 $ 593,087	December 31, 2018 $ 605,322 1,432 ) $ 603,890 December 31, 2018 $ 427,682 175,793 684 1,163 $ 605,322

The above ageing analysis was based on past due date.

• B. As of December 31, 2019 and 2018, accounts receivable was all from contracts with customers. And as January 1, 2018, the balance of receivables from contracts with customers amounted to $600,998.

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• C. No accounts receivable of the Company were pledged to others.

• D. As at December 31, 2019 and 2018, without taking into account any collateral held or other credit enhancements, the maximum exposure to credit risk in respect of the amount that best represents the Company’s accounts receivable were $591,655 and $603,890 respectively.

• E. Information relating to credit risk is provided in Note 12(2).

(3) Inventories

Inventories
			December 31, 2019
			Allowance for
		Cost	valuation loss		Book value
Merchandise	$	8,079,200	($ 42,834)	$	8,036,366
			December 31, 2018
			Allowance for
		Cost	valuation loss		Book value
Merchandise	$	8,035,682	($ 15,314)	$	8,020,368
The cost of inventories recognized as expense:

The cost of inventories recognized as expense:
	For	the year ended		For	the year ended
	December 31, 2019			December 31, 2018
Cost of goods sold	$	101,836,268		$	99,191,826
Loss on valuation (gain on reversal) of inventories		27,520		(	10,677)
Spoilage		1,746,665			1,640,604
Others		243,679			240,611
	$	103,854,132		$	101,062,364

The Company reversed a previous inventory write-down because the Company sold and scrapped certain inventories which were previously provided with allowance during the year ended December 31, 2018.

(4) Financial assets at fair value through profit or loss – non-current

	December 31, 2019	December 31, 2018
Financial assets mandatorily measured at fair value through profit or loss
Non-current items:
Unlisted stocks	$ 274,745	$ 274,863
Valuation adjustment	( 189,180)	( 189,180)
	$ 85,565	$ 85,683

• A. The Company recognized net gains of financial assets at fair value through profit was $0 and $215 for the years ended December 31, 2019 and 2018, respectively.

B. No financial assets at fair value through profit or loss of the Company were pledged to others.

• C. Information relating to credit risk is provided in Note 12(2).

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(5) Financial assets at fair value through other comprehensive income - non-current

Equity instruments Listed stocks Unlisted stocks Valuation adjustment	December 31, 2019 $ 265,606 4,348 269,954 537,161 $ 807,115	December 31, 2018 $ 265,606 4,348 269,954 374,660 $ 644,614

• A. The Company has elected to classify the listed and unlisted stocks that are considered to be strategic investments and have steady dividend income as financial assets at fair value through other comprehensive income. The fair value of such investments amounted to $807,115 and $644,614 as at December 31, 2019 and 2018, respectively.

• B. Amounts recognized in profit or loss and other comprehensive income (loss) in relation to the financial assets at fair value through other comprehensive income are listed below:

For the year ended For the year ended December 31, 2019 December 31, 2018 Equity instruments at fair value through other comprehensive income Fair value change recognized in other comprehensive income (loss) $ 162,501 ($ 143,849)

• C. As at December 31, 2019 and 2018, without taking into account any collateral held or other credit enhancements, the maximum exposure to credit risk in respect of the amount that best represents the financial assets at fair value through other comprehensive income held by the Company was $807,115 and $644,614, respectively.

• D. No financial assets at fair value through other comprehensive income of the Company were pledged to others.

• E. Information relating to credit risk is provided in Note 12(2).

(6) Investments accounted for using the equity method

At January 1 Addition of investments accounted for using equity method Disposal of investments accounted for using equity method Share of profit or loss of investment accounted for using equity method Earnings distribution of investment accounted for using equity method Changes in other equity items Changes in other items At December 31	2019 $ 49,094,402 200,000 ( 41,657 ) 4,185,310 ( 2,686,166 ) ( 634,938 ) 590 $ 50,117,541	2018 $ 47,983,892 - ( 1,769 ) 3,473,458 ( 2,725,951 ) 548,109 ( 183,337) $ 49,094,402

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Subsidiaries President Chain Store (BVI) Holdings Ltd. Uni-Wonder Corp. President Transnet Corp. President Drugstore Business Corp. President Pharmaceutical Corp. Mech-President Corp. Uni-President Cold-Chain Corp. ICASH Corp. Uni-President Department Store Corp. President Information Corp. Uni-President Superior Commissary Corp. Wisdom Distribution Service Corp. Books.com. Co., Ltd. Q-ware Systems & Services Corp. Duskin Serve Taiwan Co., Ltd. Retail Support International Corp. President Collect Service Corp., etc. Associates PresiCarre Corp. President Fair Development Corp. Uni-President Development Corp. President International Development Corp. Tung Ho Development Corp. President Organics Corp. President Technology Corp. Joint ventures Mister Donut Taiwan Co., Ltd.	December 31, 2019 $ 26,348,522 5,164,559 1,634,536 1,432,449 743,725 702,347 679,859 567,243 543,179 493,788 484,058 454,125 398,293 390,054 201,317 178,147 445,401 40,861,602 December 31, 2019 5,723,198 2,039,406 764,191 459,696 106,384 41,430 20,866 9,155,171 100,768 $ 50,117,541	December 31, 2018 $ 25,850,474 5,289,524 1,518,487 1,367,838 756,001 694,277 645,440 356,073 566,145 489,299 467,659 506,392 417,935 372,945 194,788 174,830 425,715 40,093,822 December 31, 2018 5,518,380 1,984,125 753,904 461,328 114,755 38,862 21,347 8,892,701 107,879 $ 49,094,402

• A. Information about the subsidiaries of the Company is provided in Note 4(3), “Basis of preparation” of the consolidated financial statements as of and for the year ended December 31, 2019.

• B. The Company originally held 30% shares of its joint venture using the equity method – Uni - Wonder Corp. (formerly known as “President Starbucks Coffee Corp.”). In December 2017, the

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Company acquired an additional 30% shares of President Starbucks Coffee Corp. for a cash consideration of $3,226,806 and obtained control over Uni-Wonder Corp. Relevant cash consideration was fully paid in February, 2018.

• C. Information about the Company’s disposal of investments accounted for using equity method in August, 2018 is provided in Note 7(3)g.

• D. The acquisition of additional shares in certain investments in associates or joint ventures are not significant to the Company. The details of the Company’s share of the operating results in the aforementioned investments are as follows:

Information about the Company’s disposal of investments accounted for using equity method in August, 2018 is provided in Note 7(3)g. The acquisition of additional shares in certain investments in associates or joint ventures are not significant to the Company. The details of the Company’s share of the operating results in the aforementioned investments are as follows:	Information about the Company’s disposal of investments accounted for using equity method in August, 2018 is provided in Note 7(3)g. The acquisition of additional shares in certain investments in associates or joint ventures are not significant to the Company. The details of the Company’s share of the operating results in the aforementioned investments are as follows:	Information about the Company’s disposal of investments accounted for using equity method in August, 2018 is provided in Note 7(3)g. The acquisition of additional shares in certain investments in associates or joint ventures are not significant to the Company. The details of the Company’s share of the operating results in the aforementioned investments are as follows:
(a) The Company’s share of the operating results in all individually immaterial associates is summarized below: For the year ended December 31, 2019 For the year ended December 31, 2018 Total comprehensive income $ 460,753 $ 398,334 (b) The Company’s share of the operating results in all individually immaterial joint ventures is summarized below: For the year ended December 31, 2019 For the year ended December 31, 2018 Total comprehensive income $ 13,844 $ 23,471
	For the year ended	For the year ended
	December 31, 2019	December 31, 2018
	$ 13,844	$ 23,471

• E. No impairment loss was recognized on investments accounted for using equity method for the years ended December 31, 2019 and 2018, respectively.

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(7) Property, plant and equipment

A. The details of property, plant and equipment are as follows:

At January 1 Cost Accumulated depreciation and impairment Opening net book amount as of January 1 Effect of adoption of IFRS 16 Adjusted beginning balance Additions Disposals Transfer Depreciation charge Closing net book amount as of December 31 At December 31 Cost Accumulated depreciation and impairment	2019 Land Buildings Operating equipment Leasehold improvements $ 1,564,223 $ 973,001 $ 13,563,007 $ 8,250,964 ( 16,367 ) ( 345,665 ) ( 9,550,524 ) ( 5,327,966 ) $ 1,547,856 $ 627,336 $ 4,012,483 $ 2,922,998 $ 1,547,856 $ 627,336 $ 4,012,483 $ 2,922,998 - - - ( 167,270 ) $ 1,547,856 $ 627,336 $ 4,012,483 $ 2,755,728 - - 2,530,739 1,305,220 - - ( 75,584 ) ( 62,179 ) ( 18,757 ) ( 2,913 ) - - - ( 19,153 ) ( 1,322,746) ( 817,470 ) $ 1,529,099 $ 605,270 $ 5,144,892 $ 3,181,299 $ 1,545,466 $ 968,199 $ 14,367,788 $ 8,649,472 ( 16,367 ) ( 362,929 ) ( 9,222,896 ) ( 5,468,173 ) $ 1,529,099 $ 605,270 $ 5,144,892 $ 3,181,299			2019
	(

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At January 1 Cost Accumulated depreciation and impairment Opening net book amount as of January 1 Additions Disposals Transfer Depreciation charge Reversal of impairment loss Closing net book amount as of December 31 At December 31 Cost Accumulated depreciation and impairment	(	Land $ 1,564,223 16,367 ) $ 1,547,856 $ 1,547,856 - - - - - $ 1,547,856 $ 1,564,223 16,367 ) $ 1,547,856				2018
			Buildings $ 973,001 ( 326,414 ) $ 646,587 $ 646,587 - - - ( 19,251) - $ 627,336 $ 973,001 ( 345,665 ) $ 627,336		Operating equipment Leasehold improvements Others $ 13,119,148 $ 7,789,418 $ 9,529 ( 9,022,956 ) ( 5,134,871 ) ( 8,252) $ 4,096,192 $ 2,654,547 $ 1,277 $ 4,096,192 $ 2,654,547 $ 1,277 1,299,599 992,771 3,193 ( 13,263 ) ( 22,396) - ( 12 ) 1,767 - ( 1,371,875 ) ( 704,250) ( 924) 1,842 559 - $ 4,012,483 $ 2,922,998 $ 3,546 $ 13,563,007 $ 8,250,964 $ 12,121 ( 9,550,524 ) ( 5,327,966 ) ( 8,575) $ 4,012,483 $ 2,922,998 $ 3,546
	(		(		(			(

B. No property, plant and equipment of the Company was pledged to others.

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－ (8) Leasing arrangements lessee

Effective from 2019

• A. The Company leases various assets including buildings and equipment, etc. Rental contracts are typically made for periods of 1 to 20 years. Lease terms are negotiated on an individual basis and contain a wide range of different terms and conditions. The lease agreements do not impose covenants, but leased assets may not be used as security for borrowing purposes.

• B. The carrying amount of right-of-use assets and the depreciation charge are as follows :

Buildings	December 31, 2019 Carryingamount $44,373,492	For the year ended December 31, 2019
		Depreciation charge
		$ 6,826,103

• C. For the year ended December 31, 2019, the additions to right-of-use assets was $24,947,745.

• D. The information on income and expense accounts relating to lease contracts is as follows:

Items affecting profit or loss Interest expense on lease liabilities Expense on variable lease payments Gain on sublease of right-of-use assets	For the year ended December 31, 2019
	$ 305,342 153,467 557,649

• E. For the year ended December 31, 2019, the Company’s total cash outflow for leases was $7,062,514.

• F. Variable lease payments

• (a) Some of the Company’s lease contracts contain variable lease payment terms that are linked to sales generated from a store. For the above-mentioned stores, up to 2.11% of lease payments are on the basis of variable payment terms and are accrued based on the sales amount. Variable payment terms are used for a variety of reasons. Various lease payments that depend on sales are recognized in profit or loss in the period in which the event or condition that triggers those payments occurs.

• (b) A 1% increase in the aggregate sales amount of all stores with such variable lease contracts would increase total lease payments by approximately $1,535.

• G. The Company’s leases not yet commenced to which the leases is commited are business premises for the lessees, and the lease liabilities undiscounted amount at December 31, 2019 is $1,751,094.

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(9) Leasing arrangements – lessor

Effective from 2019

• A. The Company leases various assets including land and buildings. Rental contracts are typically made for periods of 2 and 12 years. Lease terms are negotiated on an individual basis and contain a wide range of different terms and conditions.

• B. Information on profit or loss in relation to lease contracts is as follows:

Information on profit or loss in relation to lease	contracts is as follows:
	For the year ended	For the year ended
	December 31, 2019	December 31, 2018
Rental revenue	$ 632,894	$	541,591
Rental revenue from variable lease payments	$ 387,859	$	389,452
The maturity analysis of the undiscounted lease	payments in the finance	lease is as follows:
		December 31, 2019
2020		$	206,435
2021			180,221
2022			157,115
2023			113,729
2024			58,143
2025			44,544
After 2026			114,034
Total		$	874,221

• C. The maturity analysis of the undiscounted lease payments in the finance lease is as follows:

(10) Investment property

2024 2025 After 2026 Total Investment property		$	58,143 44,544 114,034 874,221
At January 1 Transfer Depreciation charge At December 31 At January 1 Depreciation charge At December 31		2019
	Land $ 962,783 18,757 - $ 981,540	Buildings $ 226,671 2,913 ( 7,440) ( $ 222,144 2018	Total $ 1,189,454 21,670 7,440) $ 1,203,684
	Land $ 962,783 - $ 962,783	Buildings $ 234,036 ( 7,365) ( $ 226,671	Total $ 1,196,819 7,365) $ 1,189,454

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• A. Rental income from investment property and direct operating expenses arising from investment property are shown below:

Rental income from investment property Direct operating expenses arising from the investment property that generated rental income during the year	For the year ended December 31, 2019 $ 59,882 $ 23,065	For the year ended December 31, 2018 $ 58,548 $ 8,036

• B. The fair value of the investment property held by the Company as at December 31, 2019 and 2018 ranged from $2,874,270 to $2,881,471, respectively, which was assessed based on recent settlement prices of similar and comparable properties, as well as the reports of independent appraisers.

• C. No investment property of the Company was pledged to others.

• (11) Intangible assets

Software and copyright At January 1 Additions Amortization charge At December 31	2019 $ 119,019 21,409 ( 55,700) $ 84,728	2018 $ 211,865 - ( 92,846) $ 119,019

• A. Amortization charge on intangible assets are recognized as operating expenses.

• B. No intangible assets of the Company were pledged to others.

• (12) Other non-current assets

(12)	Other non-current assets
(13)				December 31, 2019		December 31, 2018
	Guarantee deposits paid			$ 1,372,992		$ 1,231,311
	Others			20,235		-
				$ 1,393,227		$ 1,231,311
	Short-term borrowings Type of borrowings Bank borrowings Credit loan Type of borrowings Bank borrowings Credit loan	December 31, 2019 $ 5,000,000 December 31, 2018 $ 6,000,000	Interest rate range 0.65%~0.67% Interest rate range 0.65%~0.68%			Collateral None Collateral None

There were no capitalization of borrowing costs for the years ended December 31, 2019 and 2018, respectively. Relevant interest expenses on borrowings is recognized as ‘finance costs’.

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(14) Other payables

Store collections Wages, salaries and bonus payable Incentive bonus payable to franchisees Payables for acquisition of property, plant and equipment Employees’ compensation and remuneration for directors and supervisors Payables for system development and maintenance expenses Payables for labor and health insurance Rent payable Others Other current liabilities Advance receipts for gift certificates Others	December 31, 2019 $ 11,453,224 1,608,497 1,158,473 889,974 756,561 95,753 74,919 27,931 1,068,947 $ 17,134,279 December 31, 2019 $ 1,381,360 111,207 $ 1,492,567	December 31, 2018 $ 12,750,758 1,896,744 1,047,674 399,331 769,767 77,981 70,483 495,621 1,318,949 $ 18,827,308 December 31, 2018 $ 1,351,283 111,809 $ 1,463,092

(15) Other current liabilities

(16) Pensions

A. The Company has a defined benefit pension plan in accordance with the Labor Standards Law, covering all regular employees’ service years prior to the enforcement of the Labor Pension Act on July 1, 2005 and service years thereafter of employees who chose to continue to be subject to the pension mechanism under the Law. Under the defined benefit pension plan, two units are accrued for each year of service for the first 15 years and one unit for each additional year thereafter, subject to a maximum of 45 units. Pension benefits are based on the number of units accrued and the average monthly salaries and wages of the last 6 months prior to retirement. The Company contributes monthly an amount equal to 3.17% of the employees’ monthly salaries and wages to the retirement fund deposited with Bank of Taiwan, the trustee, under the name of the independent retirement fund committee. Also, the Company would assess the balance in the aforementioned labor pension reserve account by December 31, every year. If the account balance is insufficient to pay the pension calculated by the aforementioned method of the employees expected to qualify for retirement in the following year, the Company will make contributions for the deficit by next March.

(a) The amounts recognized in the balance sheet are as follows:

Present value of defined benefit obligations Fair value of plan assets Net defined benefit liability	December 31, 2019 ($ 4,193,734) 1,424,060 ($ 2,769,674)		December 31, 2018 ($ 4,337,814) 1,477,209 ($ 2,860,605)

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(b) Movements in net defined benefit liability are as follows:

Present value of defined benefit obligation 2019 Balance at January 1 ($ 4,337,814 ) Current service cost ( 34,169 ) Interest (expense) income ( 42,928 ) Past service cost 1,003 ( 4,413,908 ) Remeasurements: Return on plan assets - Change in demographic assumptions ( 1,509 ) Change in financial assumptions ( 123,767 ) Experience adjustments 145,138 19,862 Pension fund contribution - Paid pension 200,312 Balance at December 31 ($ 4,193,734 ) Present value of defined benefit obligation 2018 Balance at January 1 ($ 4,248,125 ) Current service cost ( 42,483 ) Interest (expense) income ( 52,568 ) (4,343,176) Remeasurements: Return on plan assets - Change in demographic assumptions ( 479 ) Change in financial assumptions ( 131,821 ) Experience adjustments 64,160 ( 68,140 ) Pension fund contribution - Paid pension 73,502 ( Balance at December 31 ($ 4,337,814 )	Fair value of plan assets $ 1,477,209 - 14,761 - 1,491,970 51,649 - - - 51,649 64,826 ( 184,385) $ 1,424,060 Fair value of plan assets $ 1,405,745 - 17,523 1,423,268 38,921 - - - 38,921 86,829 71,809) $ 1,477,209	Net defined benefit liability ($ 2,860,605) ( 34,169 ) ( 28,167 ) 1,003 ( 2,921,938 ) 51,649 ( 1,509 ) ( 123,767 ) 145,138 71,511 64,826 15,927 ($ 2,769,674 ) Net defined benefit liability ($ 2,842,380) ( 42,483 ) ( 35,045 ) ( 2,919,908 ) 38,921 ( 479 ) ( 131,821 ) 64,160 ( 29,219 ) 86,829 1,693 ($ 2,860,605 )

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• (c) The Bank of Taiwan was commissioned to manage the Fund of the Company’s defined benefit pension plan in accordance with the Fund’s annual investment and utilization plan and the “Regulations for Revenues, Expenditures, Safeguard and Utilization of the Labor Retirement Fund” (Article 6: The scope of utilization for the Fund includes deposit in domestic or foreign financial institutions, investment in domestic or foreign listed, over-the-counter, or private placement equity securities, investment in domestic or foreign real estate securitization products, etc.). With regard to the utilization of the Fund, its minimum earnings in the annual distributions on the final financial statements shall be no less than the earnings attainable from the amounts accrued from two-year time deposits with the interest rates offered by local banks. If the earnings is less than aforementioned rates, government shall make payment for the deficit after being authorized by the Regulator. The Company has no right to participate in managing and operating that fund and hence the Company is unable to disclose the classification of plan asset fair value in accordance with IAS 19 paragraph 142. The composition of fair value of plan assets as of December 31, 2019 and 2018 is given in the Annual Labor Retirement Fund Utilization Report announced by the government.

• (d) The principal actuarial assumptions used were as follows:

	For the year ended	For the year ended
	December 31, 2019	December 31, 2018
Discount rate	0.75%	1.00%
Future salary increases	3.00%	3.00%

Assumptions regarding future mortality experience are set based on actuarial advice in accordance with published statistics and experience in each territory. Because the main actuarial assumption changed, the present value of defined benefit obligation is affected. The analysis is as follows:

analysis is as follows:
December 31, 2019 Effect on present value of defined benefit obligation( December 31, 2018 Effect on present value of defined benefit obligation(	Discount rate Increase Decrease 0.25% 0.25% $ 123,724) $ 128,937 Discount rate Increase Decrease 0.25% 0.25% $ 131,704) $ 137,399	Future salary increases Increase Decrease 0.25% 0.25% $ 125,512 ($ 121,123) Future salary increases Increase Decrease 0.25% 0.25% $ 134,014 ($ 129,187)
	Increase 0.25% $ 131,704)	Increase 0.25% $ 134,014

The sensitivity analysis above was arrived at based on one assumption which changed while the other conditions remained unchanged. In practice, more than one assumption may change all at once. The method of analysing sensitivity and the method of calculating net pension liability in the balance sheet are the same. The method and assumption used in the current sensitivity analysis are the same as prior year.

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• (e) Expected contributions to the defined benefit pension plan of the Company for the year ending December 31, 2020 amounts to $47,014.

• (f) As of December 31, 2019, the weighted average duration of the retirement plan is 11 years. The analysis of timing of the future pension payment is as follows:

The analysis of timing of the future pension payment is as follows:
Within 1 year 1-2 year(s) 2-5 years Over 5 years	$ 107,086 115,693 438,531 3,911,956
	$ 4,573,266

• B. Effective July 1, 2005, the Company has established a defined contribution pension plan (the “New Plan”) under the Labor Pension Act (the “Act”), covering all regular employees with R.O.C. nationality. Under the New Plan, the Company contributes monthly an amount based on 6% of the employees’ monthly salaries and wages to the employees’ individual pension accounts at the Bureau of Labor Insurance. The benefits accrued are paid monthly or in lump sum upon termination of employment. The pension costs under the Company’s defined contribution pension plan for the years ended December 31, 2019 and 2018 were $206,684 and $196,584, respectively.

(17) Share capital

As of December 31, 2019, the Company’s authorized capital was $10,500,000, consisting of 1,050,000,000 shares of ordinary stock, and the paid-in capital was $10,396,223 with a par value of $10 (in dollars) per share. All proceeds from shares issued have been collected. The number of the Company’s outstanding ordinary shares was both 1,039,622,255 shares as of December 31, 2019 and 2018.

(18) Capital surplus

In accordance with the Company Act of the Republic of China, any capital surplus arising from paid-in capital in excess of the par value on issuance of common stocks and donations can be used to cover accumulated deficit or to issue new stocks or cash to shareholders in proportion to their share ownership, provided that the Company has no accumulated deficit. Further, the Securities and Exchange Law of the Republic of China requires that the amount of capital surplus to be capitalized, as above, should not exceed 10% of paid-in capital each year. Capital surplus should not be used to cover accumulated deficit unless the legal reserve is insufficient.

(19) Retained earnings

• A. Under the Company's Articles of Incorporation, the current year’s earnings, if any, must first be used to pay all taxes and offset prior years' operating losses, then 10% of the remaining amount is to be set aside as legal reserve. After setting aside or reversing a special reserve, in accordance with related laws, the remaining amount is distributable for the given period. The appropriation of the total distributable amount (that is, the distributable amount for the year along with accumulated unappropriated earnings from prior years) should be proposed by the Board of Directors and voted on by the shareholders at the shareholders’ meeting. The dividends and bonus to be distributed to shareholders may be 50%-100% of the total

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distributable amount, and 50%-100% of dividends are to be distributed as cash dividends, and the remaining undistributed amount to be set aside as unappropriated retained earnings.

• B. Except for covering accumulated deficit or issuing new stocks or cash to shareholders in proportion to their share ownership, the legal reserve is not be used for any other purpose. The use of the legal reserve for the issuance of stocks or cash to shareholders in proportion to their share ownership is permitted, provided that the distribution of the reserve is limited to the portion in excess of 25% of the Company’s paid-in capital.

• C. In accordance with the regulations, the Company shall set aside a special reserve for the debit balance on other equity items at the balance sheet date before distributing earnings. When the debit balance on other equity items is reversed subsequently, the reversed amount should be included in the distributable earnings.

• D. The appropriations for 2018 and 2017 were resolved by the shareholders on June 12, 2019 and June 12, 2018, respectively, as follows:

June 12, 2018, respectively, as follows:
2018 Dividends per share Amount (in dollars) Legal reserve $ 1,020,639 Special reserve ( 398,859 ) Cash dividends – retained earnings 9,148,676 $ 8.80	2017 Dividends per share Amount (in dollars) $ 3,101,709 398,859 25,990,556 $ 25.00
	Amount $ 3,101,709 398,859 25,990,556

• E. The appropriations for 2019 as resolved by the Board of Directors on February 27, 2020 is as follows:

follows:
Legal reserve Special reserve Cash dividends – retained earnings	2019
	Amount $ 1,055,147 380,187 9,356,600	Dividends per share (in dollars)
		$ 9.00

• F. Information about employees’ compensation and directors’ and supervisors’ remuneration is provided in Note 6(26).

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(20) Other equity items

ther equity items
At January 1 Revaluation: –The Company –Subsidiaries –Associates Revaluation – tax Currency translation differences: –The Company –Subsidiaries –Associates At December 31 At January 1 Adjustments under new standards Adjusted beginning balance Revaluation: –The Company –Subsidiaries –Associates Revaluation – tax Currency translation differences: –The Company –Subsidiaries –Associates At December 31					2019
			Financial statements translation differences of Unrealized gains/(losses) on Financial assets at fair value through other Total foreign operations comprehensive income ($ 279,829 ) $ 333,434 $ 53,605 - 162,501 162,501 - ( 783 ) ( 783 ) - 4,518 4,518 - ( 9,949 ) ( 9,949 ) ( 578,743 ) - ( 578,743 ) ( 5,347 ) - ( 5,347 ) ( 5,989 ) - ( 5,989 ) ($ 869,908 ) $ 489,721 ($ 380,187 ) 2018
	Financial statements translation differences of foreign operations ($ 906,308 ) - ( 906,308 ) - - - - 619,530 593 6,356 ($ 279,829 )		Unrealized gains/(losses) on Financial assets at fair value through other comprehensive income $ - 477,996 ( 477,996 ( 143,849 ) ( 1,537 ) ( 2,842 ) 3,666 - - - $ 333,434			Unrealized gains/(losses) on available-for-sale Total financial assets $ 507,449 ($ 398,859 ) 507,449) ( 29,453 ) - ( 428,312 ) - ( 143,849 ) - ( 1,537 ) - ( 2,842 ) - 3,666 - 619,530 - 593 - 6,356 $ - $ 53,605

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(21) Operating revenue

For the year ended December 31, 2019 For the year ended December 31, 2018 Revenue from contracts with customers $ 158,031,567 $ 154,074,731 A. Disaggregation of revenue from contracts with customers The Company operates a chain of retail stores and derives revenue from the transfer of goods and services over time and at a point in time. The operating revenue is categorized based on goods or services recognition timing as follows:		For the year ended December 31, 2018 $ 154,074,731

B.

For the year ended December 31, 2019 For the year ended December 31, 2018 Timing of revenue recognition –At a point in time $ 157,508,868 $ 153,544,331 –Over time 522,699 530,400 $ 158,031,567 $ 154,074,731 Contract liabilities (a) The Company has recognized the following revenue-related contract liabilities: December 31, 2019 December 31, 2018 Contract liabilities – advance receipts of gift cards $ 1,291,060 $ 980,048 Contract liabilities – franchise fee 240,077 230,812 Contract liabilities – customer loyalty programs 216,284 151,550 Contract liabilities – others 76,833 82,289 $ 1,824,254 $ 1,444,699 December 31, 2019 December 31, 2018 Contract liabilities – current $ 1,607,970 $ 1,293,149 Contract liabilities – non-current 216,284 151,550 $ 1,824,254 $ 1,444,699

(b) Revenues recognized that were included in the contract liabilities balance at the beginning were $1,101,204 and $626,164 for the years ended December 31, 2019 and 2018, respectively.

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(22) Other income

Grants income Rental income Dividend income Interest income Other income Other gains and losses Gain from lease modification Gain (loss) on disposal of property, plant and equipment Gain on reversal of impairment loss Gain on disposal of investments Others ( Financial costs Interest expense Expenses by nature Net cost of goods sold Incentive bonuses for franchisees Employee benefit expense Operating lease payments Utilities expense Depreciation and amortization Other costs and expenses Total operating costs and operating expenses

For the year ended December 31, 2019 For the year ended December 31, 2018 $ 546,607 $ 492,535 178,775 77,399 49,542 65,124 38,037 83,534 512,933 698,946 $ 1,325,894 $ 1,417,538 For the year ended December 31, 2019 For the year ended December 31, 2018 $ 33,255 $ - 11,253 ( 9,632 ) - 2,401 - 59 21,720) ( 61,644 ) $ 22,788 ($ 68,816) For the year ended December 31, 2019 For the year ended December 31, 2018 $ 359,593 $ 42,971 For the year ended December 31, 2019 For the year ended December 31, 2018 $ 101,863,788 $ 99,181,149 21,822,920 20,904,939 7,162,446 7,131,255 153,467 6,660,551 2,288,191 2,225,153 9,042,048 2,189,146 8,652,640 8,127,957 $ 150,985,500 $ 146,420,150

(23) Other gains and losses

(24) Financial costs

(25) Expenses by nature

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(26) Employee benefit expense

Wages and salaries Labor and health insurance fees Pension costs Directors’ remuneration Other personnel expenses	For the year ended December 31, 2019 $ 5,870,712 477,863 268,017 199,553 346,301 $ 7,162,446	For the year ended December 31, 2018 $ 5,831,681 461,590 274,112 204,485 359,387 $ 7,131,255

• A. According to the Articles of Incorporation of the Company, a ratio of distributable profit of the current year, after covering accumulated losses, shall be distributed as employees' compensation and directors’ and supervisors’ remuneration. The ratio shall not be lower than 2% for employees’ compensation and shall not be higher than 2% for directors’ and supervisors’ remuneration.

• B. For the years ended December 31, 2019 and 2018, employees’ compensation was accrued at $567,096 and $576,995, respectively; while directors’ and supervisors’ remuneration was accrued at $189,465 and $192,772, respectively.

The employees’ compensation and directors’ and supervisors’ remuneration were estimated and accrued based on 4.37% and 1.46% of profit of the current year distributable for the year ended December 31, 2019. The employees’ compensation and directors’ and supervisors’ remuneration as resolved by the Board of Directors were $567,096 and $189,465, respectively, and the employees’ compensation will be distributed in the form of cash.

Employees’ compensation and directors’ and supervisors’ remuneration for 2018 as resolved at the meeting of Board of Directors were in agreement with those amounts recognized in the 2018 financial statements.

Information about employees’ compensation and directors’ and supervisors’ remuneration of the Company as resolved by the Board of Directors will be posted in the “Market Observation Post System” at the website of the Taiwan Stock Exchange.

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(27) Income tax

A. Income tax expense

(a) Components of income tax expense:

Current tax: Current tax on profits for the year Tax on undistributed surplus earnings Over provision of prior year's income tax ( Total current tax Deferred tax: Origination and reversal of temporary differences Impact of change in tax rate Income tax expense	For the year ended December 31, 2019 $ 1,611,778 20,212 162,718) ( 1,469,272 208,334 ( - $ 1,677,606	For the year ended December 31, 2018 $ 1,751,318 135,157 126,188) 1,760,287 46,101) 513,216 $ 2,227,402

(b)The income tax (charge)/credit relating to the components of other comprehensive income is as follows:

Changes in fair value of financial assets at fair value through other comprehensive income Remeasurement of defined benefit obligations Impact of change in tax rate	For the year ended December 31, 2019 For the year ended December 31, 2018 $ 9,949 ($ 6,984) 14,303 ( 5,843) - ( 36,898) $ 24,252 ($ 49,725)

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B. Reconciliation between income tax expense and accounting profit

Tax calculated based on profit before tax and statutory tax rate Expenses disallowed by tax regulation Capital reduction plan to offset accumulated deficit by subsidiaries Tax on profit for using equity method by domestic subsidiaries Tax on undistributed surplus earnings Over provision of prior year’s income tax Tax exempt on gain from domestic securities transitions Impact of change in tax rate Income tax expense	For the year ended December 31, 2019 $ 2,444,093 ( 9,536 ) - ( 614,211 ) 20,212 ( 162,718 ) ( 234 ) - $ 1,677,606	For the year ended December 31, 2018 $ 2,486,758 ( 201,937 ) ( 8,302 ) ( 570,644 ) 135,157 ( 126,188 ) ( 658 ) 513,216 $ 2,227,402

C. Amounts of deferred tax assets or liabilities as a result of temporary differences are as follows:

January 1 Deferred tax assets: Allowance for doubtful accounts $ 199 Unrealized expenses 173,233 Contract liabilities – non-current 30,499 Remeasurements of defined benefit obligation 521,908 Others 74,619 800,458 Deferred tax liabilities Unrealized gain ( 26,205 ) Foreign investment income ( 3,890,774 ) ( 3,916,979 ) ($ 3,116,521 )		2019		December 31 $ 199 221,464 43,446 507,605 27,536 800,250 ( 36,154) 4,113,203) 4,149,357) $ 3,349,107)
		Recognized in other Recognized in comprehensive profit or loss income $ - $ - 48,231 - 12,947 - -( 14,303) ( 47,083) - 14,095 (14,303) - ( 9,949) ( 222,429) - ( 222,429) (9,949) ($ 208,334) ($ 24,252)
			( ( (

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Deferred tax assets: Allowance for doubtful accounts Unrealized sales allowance Unrealized expenses Contract liabilities – non-current Remeasurements of defined benefit obligation Others Deferred tax liabilities			2018		December 31 $ 199 - 173,233 30,499 521,908 74,619 800,458 ( 26,205 ) 3,890,774 ) 3,916,979 ) $ 3,116,521 )
	January 1 $ 1,002 56 139,303 25,764 438,656 69,178 673,959 ( 28,210 ) 3,344,880 ) ( 3,373,090 ) ( $ 2,699,131) (	Impact of change in Recognized in taxrate profit or loss $ 177 ($ 980 ) 10 ( 66 ) 24,583 9,347 4,547 188 77,409 - 12,208 ( 6,767 ) 118,934 1,722 ( 4,979 ) - 590,273 ) 44,379 595,252 ) 44,379 $ 476,318 ) $ 46,101		Recognized in other comprehensive income
				$ - - - - 5,843 -
				5,843 6,984 - ( 6,984 ( $ 12,827 (
Unrealized gain Foreign investment income ( ( (

• D. The Company’s income tax returns through 2017 have been assessed and approved by the Tax Authority.

• E. All unappropriated earnings were generated on and after January 1, 1998.

• F. Under the amendments to the Income Tax Act which was promulgated by the President of the Republic of China on February 7, 2018, the Company’s applicable income tax rate was raised from 17% to 20% effective from January 1, 2018. The Company has assessed the impact of the change in income tax rate.

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(28) Earnings per share

Basic earnings per share Profit attributable to ordinary shareholders of the parent Diluted earnings per share Profit attributable to ordinary shareholders of the parent Assumed conversion of all dilutive potential ordinary shares Employees’ bonus Shareholders of the parent plus assumed conversion of all dilutive potential ordinary shares Basic earnings per share Profit attributable to ordinary shareholders of the parent Diluted earnings per share Profit attributable to ordinary shareholders of the parent Assumed conversion of all dilutive potential ordinary shares Employees’ bonus Shareholders of the parent plus assumed conversion of all dilutive potential ordinary shares	For the year ended December 31, 2019 Amount Weighted average number of ordinary shares outstanding Earnings per share after tax (shares in thousands) (in dollars) $ 10,542,860 1,039,622 $ 10.14 $ 10,542,860 1,039,622 - 2,169 $ 10,542,860 1,041,791 $ 10.12 For the year ended December 31, 2018 Amount after tax Weighted average number of ordinary shares outstanding (shares in thousands) Earnings per share (in dollars) $ 10,206,388 1,039,622 $ 9.82 $ 10,206,388 1,039,622 - 2,437 $ 10,206,388 1,042,059 $ 9.79	For the year ended December 31, 2019 Amount Weighted average number of ordinary shares outstanding Earnings per share after tax (shares in thousands) (in dollars) $ 10,542,860 1,039,622 $ 10.14 $ 10,542,860 1,039,622 - 2,169 $ 10,542,860 1,041,791 $ 10.12 For the year ended December 31, 2018 Amount after tax Weighted average number of ordinary shares outstanding (shares in thousands) Earnings per share (in dollars) $ 10,206,388 1,039,622 $ 9.82 $ 10,206,388 1,039,622 - 2,437 $ 10,206,388 1,042,059 $ 9.79	For the year ended December 31, 2019 Amount Weighted average number of ordinary shares outstanding Earnings per share after tax (shares in thousands) (in dollars) $ 10,542,860 1,039,622 $ 10.14 $ 10,542,860 1,039,622 - 2,169 $ 10,542,860 1,041,791 $ 10.12 For the year ended December 31, 2018 Amount after tax Weighted average number of ordinary shares outstanding (shares in thousands) Earnings per share (in dollars) $ 10,206,388 1,039,622 $ 9.82 $ 10,206,388 1,039,622 - 2,437 $ 10,206,388 1,042,059 $ 9.79
	Amount after tax $ 10,206,388 $ 10,206,388 - $ 10,206,388	Weighted average number of ordinary shares outstanding (shares in thousands) 1,039,622 1,039,622 2,437 1,042,059

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(29) Operating leases

Prior to 2019

Lessor

The Company leases its investment property and shopping centres to others under operating lease agreements on terms between 2 and 10 years. The future aggregate minimum lease payments receivable under non-cancellable operating leases are as follows:

Less than one year Over one year but less than five years Over five years	December 31, 2018 $ 60,250 207,825 6,195 $ 274,270

Lessee

• A. The Company leases business premises for its stores. The lease terms are between 1 and 20 years, and certain lease agreements are renewable at the end of the lease period. Rents are paid in accordance with the agreements. Certain leases incur extra rent based on the operating revenue of stores or changes in local price indices. Rental expense recognized in profit and loss for the year ended December 31, 2018 are as follows:

for the year ended December 31, 2018 are as follows:
	For the year ended
	December 31, 2018
Rental expense	$ 6,397,092
Contingent rents	$ 263,459

The future aggregate minimum lease payments under non-cancellable operating leases are as follows:

Less than one year Over one year but less than five years Over five years	December 31, 2018 $ 6,468,378 22,180,633 12,723,044 $ 41,372,055

• B. The Company has sub-leased certain business premises to others. Sublease revenues recognized in profit and loss for the year ended December 31, 2018 are as follows:

Sublease revenues Contingent rents	For the year ended December 31, 2018 $ 153,047 $ 389,452

In accordance with non-cancellable sub-lease agreements as of December 31, 2018, sub-lease payments totalling $294,113 are expected to be collected between 2019 and 2028.

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(30) Supplemental cash flow information

Investing activities with partial cash payments

Supplemental cash flow information Investing activities with partial cash payments
Purchase of property, plant and equipment Add: Opening balance of payable on equipment Less: Ending balance of payable on equipment ( Cash paid during the year	For the year ended	For the year ended
	December 31, 2019	December 31, 2018
	$ 3,850,432	$ 2,295,563
	399,331	407,065
	889,974) (	399,331 )
	$ 3,359,789	$ 2,303,297

(31) Changes in liabilities from financing activities

Cash paid during the year $ Changes in liabilities from financing activities	$	3,359,789 $	2,303,297
Short-term borrowings Guarantee deposits received January 1, 2019 $ 6,000,000 $ 2,533,958 Changes in cash flow from financing activities ( 1,000,000 ) 196,168 Interest paid (Note) - - Changes in other non-cash items - - December 31, 2019 $ 5,000,000 $ 2,730,126 Note: Presented in cash flows from operating activities. Short-term borrowings January 1, 2018 $ - Changes in cash flow from financing activities 6,000,000 December 31, 2018 $ 6,000,000	Guarantee deposits received	Lease liabilities $ 27,486,853 ( 6,603,705 ) ( 305,342 ) 24,152,811 $ 44,730,617 Guarantee deposits received $ 2,435,662 98,296 $ 2,533,958	Liabilities from financing Activities – gross
	$ 2,533,958 196,168 - -		$ 36,020,811 ( 7,407,537) ( 305,342) 24,152,811
			$ 52,460,743 Liabilities from financing Activities – gross
	$ - 6,000,000		$ 2,435,662 6,098,296
	$ 6,000,000		$ 8,533,958

Note: Presented in cash flows from operating activities.

7. RELATED PARTY TRANSACTIONS

(1) Parent and ultimate controlling party

The Company’s parent company and the Group’s ultimate parent company is Uni-President Enterprises Corp. which holds a 45.4% equity interest in the Company as of December 31, 2019.

(2) Names of related parties and relationship

Names of related parties Uni-President Enterprises Corp. 21 Century Co., Ltd. Books.com. Co., Ltd. Capital Marketing Consultant Corp. Duskin Serve Taiwan Co., Ltd. ICASH Corp.	Relationship with the Company Ultimate parent company Subsidiary 〃 〃 〃 〃

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Names of related parties President Chain Store (BVI) Holdings Ltd. Uni-President Department Store Corp. President Information Corp. President Logistics International Corp. Uni-President Superior Commissary Corp. President Pharmaceutical Corp. President Transnet Corp. Retail Support International Corp. Uni-President Cold-Chain Corp. Q-ware Systems & Services Corp. Wisdom Distribution Service Corp. Uni-Wonder Corp. Tung Ang Enterprises Corp. President Baseball Team Corp. Presco Netmarketing Inc. Tait Marketing & Distribution Co., Ltd. President Packaging Ind. Corp. Lien-Bo Enterprises Corp. Kai Ya Food Co., Ltd. President Organics Corp. Mister Donut Taiwan Co., Ltd. Kuang Chuan Dairy Co., Ltd. Wei Lih Food Industrial Co., Ltd.

Relationship with the Company

Subsidiary 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 Sister company 〃 〃 〃 〃 〃 〃 Investee of the Company accounted for under the equity method 〃 Investee of ultimate parent company accounted for under the equity method 〃

(3) Significant related party transactions and balances

A. Operating revenue

ei Lih Food Industrial Co., Ltd. 〃 gnificant related party transactions and balances Operating revenue
Commission revenue from collection services Subsidiaries Sister companies Purchases (net of purchase rebate) Ultimate parent company Subsidiaries Sister companies Associates Other related parties	For the year ended December 31, 2019 $ 329,669 3,649,408 $ 3,979,077 For the year ended December 31, 2019 $ 15,787,494 4,833,834 3,778,725 199,924 911,260 $ 25,511,237	For the year ended December 31, 2018
		$ 352,711 3,040,132
		$ 3,392,843
		For the year ended December 31, 2018
		$ 14,923,741 4,384,596 3,376,375 234,899 722,188
		$ 23,641,799

B. Purchases (net of purchase rebate)

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• (a) The purchases above is a net amount after deducting the replacement for defects and rebate.

• (b) The Company’s purchases from the related parties are priced in accordance with the agreed terms that are generally not different from general vendors. The payment terms are net 10-60 days from the end of the month when invoice is issued and is generally not different from the general vendors.

C. Promotion income (recorded as deduction to ‘operating costs’)

Ultimate parent company Subsidiaries Sister companies Associates Other related parties	For the year ended December 31, 2019 $ 503,048 158,190 215,776 12,558 79,298 $ 968,870	For the year ended December 31, 2018 $ 454,755 236,068 165,667 13,837 96,782 $ 967,109

The promotion income includes shelf display fee, advertising sponsorship and performance incentives, which are calculated and collected in a manner equivalent to the general suppliers.

D. Non-operating income

Ultimate parent company Subsidiaries Sister companies Associates Other related parties Receivables (payables) from related parties Other receivables Ultimate parent company Subsidiaries Sister companies Associates Other related parties	For the year ended December 31, 2019 $ 36,890 920,099 6,822 15,721 28,052 $ 1,007,584 December 31, 2019 $ 67,315 1,281,796 103,664 3,951 766 $ 1,457,492	For the year ended December 31, 2018 $ 32,467 846,863 5,626 17,406 8 $ 902,370 December 31, 2018 $ 20,921 1,552,056 93,233 3,451 4 $ 1,669,665

E. Receivables (payables) from related parties

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Payables Ultimate parent company Subsidiaries Sister companies Associates Other related parties	December 31, 2019 $ 417,554 12,316,674 43,846 26,488 1,293 $ 12,805,855	December 31, 2018 $ 393,380 12,316,777 2,013 9,356 12,736 $ 12,734,262

Payables to related parties mainly arise from purchase transactions. Payables bear no interest.

• －

• F. Leasing arrangements lessee

• (a) The Company holds various lease agreements with related parties based on the market price. The leases were paid on a monthly basis.

(b) Acquisition of right of use assets

Ultimate parent company Subsidiaries Associates Other related parties Total	For the year ended December 31, 2019 $ 2,234 31,487 12,157 513,952 $ 559,830

On January 1, 2019 (the date of initial application of IFRS 16), the Company increased right-of-use assets by $126,887.

(c) Lease liabilities

Ultimate parent company Subsidiaries Associates Sister companies Other related parties Total	December 31, 2019 $ 2,798 71,257 17,667 44,681 511,921 $ 648,324

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G. Property Transactions

(a) Acquisition of financial assets

G. Property Transactions (a) Acquisition of financial assets	ns financial assets
Accounts Subsidiary Investments accounted for using equity method (b) Disposal of financial assets Accounts Sister company Investments accounted for using equity method Key management compensation				For the year ended
				December 31, 2019
	Accounts	No. of shares	Objects	Consideration
	Investments
	accounted for using
	equity method	20,000,000	ICASH Corp.	$ 200,000
				For the year ended
				December		31, 2018
	Accounts	No. of shares	Objects	Proceeds		Gain
	Investments		Grand Bills
	accounted for using
	equity method	108,160	Finance Corp.	$	1,828	$ 59
			For the year ended		For the year ended December 31, 2018
			December 31, 2019
Other short-term employee benefits			$ 288,543		$ 297,731

(4) Key management compensation

8. PLEDGED ASSETS

None.

9. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNIZED CONTRACT COMMITMENTS

None.

10. SIGNIFICANT DISASTER LOSS

None.

11. SIGNIFICANT EVENTS AFTER THE BALANCE SHEET DATE

None.

12. OTHERS

(1) Capital management

The Company’s objectives in this area are to retain the confidence of investors and the market, to fund future capital expenditures and stable dividend flows for ordinary shares, and to maintain the most appropriate capital structure to maximize the equity interest of shareholders.

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(2) Financial instruments

A. Financial instruments by category

Financial assets Financial assets at fair value through profit or loss Financial assets mandatorily measured fair value through profit or loss Financial assets at fair value through other comprehensive income Designation of equity instrument Financial assets at amortized cost Cash and cash equivalents Accounts receivable, net Other receivables Other current assets (Note) Guarantee deposit paid Financial liabilities Financial liabilities at amortized cost Short-term borrowings Notes payable Accounts payable Other payables Guarantee deposit received Lease liabilities	December 31, 2019 $ 85,565 $ 807,115 10,697,878 591,655 2,274,167 826,748 1,372,992 $ 15,763,440 $ 16,656,120 $ 5,000,000 5,449,853 9,752,474 17,134,279 2,730,126 $ 40,066,732 $ 44,730,617 $ 84,797,349	December 31, 2018 $ 85,683 $ 644,614 14,070,715 603,890 2,515,131 907,800 1,231,311 $ 19,328,847 $ 20,059,144 $ 6,000,000 6,037,491 9,465,646 18,827,308 2,533,958 $ 42,864,403 $ - $ 42,864,403

Note: The Company’s trust account for advance receipts of gift certificates and gift cards.

B. Risk management policies

• (a) The Company’s risk management and hedging policies mainly focus on hedging business risk. The Company also establishes hedge positions when trading derivative financial instruments. The choice of instruments should hedge risks relating to interest expense, assets or liabilities arising from business operations.

• (b) For managing derivative instruments, the treasury department is responsible for managing trading positions of derivative instruments and assess market values periodically. If transactions and gains (losses) are abnormal, the treasury will respond accordingly and report to the Board of Directors immediately.

• (c) There is no related transaction about derivative financial instruments that are used to hedge certain exchange rate risk.

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C. Significant financial risks and degrees of financial risks

(a) Market risk

Foreign exchange risk

• I. The Company operates internationally and is exposed to foreign exchange risk arising from of the Company used in various functional currency, the transactions primarily with respect to the USD and RMB. Exchange risk arises from future commercial transactions and recognized assets and liabilities.

• II. Management has set up a policy to require the segments to manage their foreign exchange risk against their functional currencies.

• III. The Company’s businesses involve some non-functional currency operations (the Company’s functional currency is New Taiwan dollar, NTD). The details of assets and liabilities denominated in foreign currencies whose values would be materially affected by the exchange rate fluctuations are as follows:

(Foreign currency: functional currency) Financial assets Non-monetary items JPY: NTD Investments accounted for using equity method USD: NTD (Foreign currency: functional currency) Financial assets Non-monetary items JPY: NTD Investments accounted for using equity method USD: NTD	(Foreign currency: functional currency) Financial assets Non-monetary items JPY: NTD Investments accounted for using equity method USD: NTD (Foreign currency: functional currency) Financial assets Non-monetary items JPY: NTD Investments accounted for using equity method USD: NTD	December 31, 2019 Foreign currency amount (In thousands) Exchange rate Book value (NTD) $ 907,500 0.2760 $ 250,470 881,028 29.9800 26,413,228 December 31, 2018 Foreign currency amount (In thousands) Exchange rate Book value (NTD) $ 721,500 0.2782 $ 200,721 843,740 30.7150 25,915,469	December 31, 2019 Foreign currency amount (In thousands) Exchange rate Book value (NTD) $ 907,500 0.2760 $ 250,470 881,028 29.9800 26,413,228 December 31, 2018 Foreign currency amount (In thousands) Exchange rate Book value (NTD) $ 721,500 0.2782 $ 200,721 843,740 30.7150 25,915,469
		Foreign currency amount (In thousands) $ 721,500 843,740	Exchange rate 0.2782 30.7150

• IV. The total exchange loss, including realized and unrealized arising from significant foreign exchange variation on the monetary items held by the Company amounted to $54 and $18,145 for the years ended December 31, 2019 and 2018, respectively.

• V. Analysis of foreign currency market risk arising from significant foreign exchange variation:

Foreign exchange risk with respect to USD primarily arises from the exchange gain or loss resulting from foreign currency translation of investments accounted for using equity method denominated in USD. If the NTD:USD exchange rate appreciates/depreciates by 5% with all other factors remaining constant, the Company’s comprehensive income for the years ended December 31, 2019 and 2018 would increase/decrease by $1,320,661 and $1,295,773, respectively. Foreign

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exchange risk with respect to JPY primarily arises from the exchange gain or loss resulting from foreign currency translation of financial assets at fair value through other comprehensive income – non-current denominated in JPY. If the NTD:JPY exchange rate appreciates/depreciates by 5%, with all other factors remaining constant, the Company’s comprehensive income for the years ended December 31, 2019 and 2018 would increase/decrease by $12,524 and $10,036, respectively.

Price risk

• I. The Company’s equity securities, which are exposed to price risk, are the held financial assets at fair value through profit or loss and financial assets at fair value through other comprehensive income. To manage its price risk arising from investments in equity securities, the Company diversifies its portfolio. Diversification of the portfolio is done in accordance with the limits set by the Company.

• II. The Company’s investments in equity securities comprise shares issued by the domestic companies. The prices of equity securities would change due to change of the future value of investee companies. If the prices of these equity securities increase/decrease by 5%, with all other variables held constant, the post-tax profit for the years ended December 31, 2019 and 2018 would have increased/decreased by $4,278 and $4,284, respectively, as a result of gains/losses on equity securities classified as at fair value through profit or loss. Other components of equity would have increased/decreased by $40,356 and $32,231, respectively, as a result of other comprehensive income classified as equity investment at fair value through other comprehensive income.

Cash flow and fair value interest rate risk

The Company’s interest rate risk arises from long-term borrowings. Borrowings issued at variable rates expose the Company to cash flow interest rate risk, which are partially offset by cash and cash equivalents held at variable rates. Borrowings issued at fixed rates expose the Company to fair value interest rate risk. For the years ended December 31, 2019 and 2018, the Company’s borrowings at variable rate were mainly denominated in New Taiwan dollars.

(b) Credit risk

• I. Credit risk refers to the risk of financial loss to the Company arising from default by the clients or counterparties of financial instruments on the contract obligations. The main factor is that counterparties could not repay in full the accounts receivable based on the agreed terms, and the contract cash flows of debt instruments stated at fair value through other comprehensive income.

• II. The Company manages their credit risk taking into consideration the entire group’s concern. For banks and financial institutions, only independently rated parties with a minimum rating of 'A' are accepted.

• III. The Company adopts management of credit risk, whereby the default occurs when the contract payments are past due over certain number of days.

• IV. The Company assesses whether there has been a significant increase in credit risk on that instrument since initial recognition if the contract payments were past due over certain number of days based on the terms.

• V. The Company operates a chain of retail stores, thus the ratio of accounts receivable to

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total asset is low and the probability that accounts receivable cannot be received is low. For accounts receivable from other transactions, the Company manages individually and follow up regularly. The Company assesses credit impairment loss immaterial at December 31, 2019 and 2018.

• VI. The Company has no written-off financial assets that are still under recourse procedures on December 31, 2019 and 2018.

(c) Liquidity risk

• I. Cash flow forecasting is performed by the operating entities of the Group and aggregated by the Group’s finance department. It monitors rolling forecasts of liquidity requirements to ensure the Group has sufficient cash to meet operational needs, while maintaining sufficient headroom on its undrawn committed borrowing facilities at all times, so that the Group does not breach borrowing limits or covenants on any of its borrowing facilities. Such forecasting takes into consideration the Group’s debt financing plans, covenant compliance, and compliance with internal balance sheet ratio targets.

• II. The Company invests surplus cash in interest bearing current accounts, time deposits, money market fund and marketable securities, and chooses instruments with appropriate maturities or sufficient liquidity to provide sufficient headroom as determined by the aforementioned forecasting. The Company held no money market funds at December 31, 2019 and 2018, respectively.

• III. The Company has undrawn borrowing facilities beyond one year of $9,096,726 and $9,334,699 as of December 31, 2019 and 2018, respectively.

• IV. The table below analyses the Company’s non-derivative financial liabilities into relevant maturity groupings based on the remaining period at the balance sheet date to the contractual maturity date. Except for notes payable, accounts payable and other payables, whose contractual undiscounted cash flows are about to book value, maturing within one-year, the amounts disclosed in the table are the contractual undiscounted cash flows.

Non-derivative financial liabilities:

December 31, 2019 Less than 1 year Short-term borrowings $ 5,003,747 Lease liabilities 7,213,130 Non-derivative financial liabilities: December 31, 2018 Less than 1 year Short-term borrowings $ 6,003,262	Between 1 and 2 years $ - 7,045,969 Between 1 and 2 years $ -	Between 2 and 3 years $ - 6,676,250 Between 2 and 3 years $ -	Over 3 years $ - 26,254,781 Over 3 years $ -

• V. The Company does not expect the timing of occurrence of the cash flows estimated through the maturity date analysis will be significantly earlier, nor expect the actual cash flow amount will be significantly different.

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(3) Fair value information

• A. The different levels of the inputs used in valuation techniques to measure the fair value of financial and non-financial instruments are defined as follows:

• Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date. A market is regarded as active where a market in which transactions for the asset or liability take place with sufficient frequency and volume to provide pricing information on an ongoing basis. The fair value of the Company’s investment in listed stocks, beneficiary certificates and on-the-run Taiwan central government bonds is included in Level 1.

• Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.

• Level 3: Unobservable inputs for the asset or liability. The fair value of the Company’s investment in equity investments without an active market is included in Level 3.

• B. Fair value information of the Company’s investment property at cost is provided in Note 6(10).

• C. Financial instruments not measured at fair value

• (a) Except for those listed in the table below, the carrying amounts of cash and cash equivalents, accounts receivable, other receivables, short-term borrowings, notes payable, accounts payable and other payables are approximate to their fair values.

Financial assets: Guarantee deposit paid Financial liabilities: Guarantee deposit received Financial assets: Guarantee deposit paid Financial liabilities: Guarantee deposit received			December 31, 2019	December 31, 2019
		Book value $ 1,372,992 $ 2,730,126		Fair value
			Level 1 Level 2 $- $ - $- $ - December 31, 2018		Level 3
					$ 1,352,512 $ 2,701,736
		Book value $ 1,231,311 $ 2,533,958		Fair value
			Level 1 $- $-	Level 2 $- $ -	Level 3 $ 1,216,127 $ 2,507,486

• (b) Guarantee deposits paid/received are measured at fair value, which is calculated based on the discounted future cash flow.

• D. The related information for financial and non-financial instruments measured at fair value by level on the basis of the nature, characteristics and risks of the assets and liabilities is as follows:

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• (a) Classification according to the nature of assets and liabilities, relevant information is as follows:

follows:
December 31, 2019 Assets Recurring fair value measurements Financial assets at fair value through profit or loss Equity securities Financial assets at fair value through other comprehensive income Equity securities December 31, 2018 Assets Recurring fair value measurements Financial assets at fair value through profit or loss Equity securities Financial assets at fair value through other comprehensive income Equity securities	Level 1 $ - 802,767 $ 802,767 Level 1 $ - 640,266 $ 640,266	Level 2 $ - - $ - Level 2 $ - - $ -	Level 3 $ 85,565 4,348 $ 89,913 Level 3 $ 85,683 4,348 $ 90,031	Total
				$ 85,565
				807,115
				$ 892,680
				Total
				$ 85,683
				644,614
				$ 730,297

• (b) The methods and assumptions the Company used to measure fair value are as follows:

• I. The instruments the Company used market quoted prices as their fair values (that is, Level 1) are listed below by characteristics:

Market quoted price

  - Listed shares Closing price

• II.Except for financial instruments with active markets, the fair value of other financial instruments is measured using valuation techniques or by reference to counterparty quotes. The fair value of financial instruments measured using valuation techniques can be referred to current fair value of instruments with similar terms and characteristics in substance, by discounted cash flow method or other valuation methods, including calculations by applying models using market information available at the consolidated balance sheet date.

• E. For the years ended December 31, 2019 and 2018, there was no transfer between Level 1 and Level 2.

• F. For the years ended December 31, 2019 and 2018, there was no significant transfer in or out of Level 3.

• G. The Company is in charge of valuation procedures for fair value measurements being categorised within Level 3, which aim to verify the independent fair value of financial instruments. Such assessments are to ensure the valuation results are reasonable by applying independent information to compare the results to current market conditions, confirming the information resources are independent, reliable and in line with other resources, and

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represented as the exercisable price, and frequently making any other necessary adjustments to the fair value. Investment property is assessed by independent appraisers or based on recent closing prices of similar property in the neighbouring area.

• H. The qualitative information on significant unobservable inputs and sensitivity analysis of changes in significant unobservable inputs to valuation model used in Level 3 fair value measurement are provided below:

Non-derivative equity instrument: Unlisted shares Non-derivative equity instrument: Unlisted shares	Fair value at December 31, 2019 $ 89,913 Fair value at December 31, 2018 $ 90,031	Valuation technique Market comparable companies Net asset value Valuation technique Market comparable companies Net asset value	Significant unobservable input Price to book ratio multiplier Net asset value Significant unobservable input Price to book ratio multiplier Net asset value	Range (weighted average) 2.94 - Range (weighted average) 2.61 -	Relationship of inputs to fair value
					The higher the multiplier, the higher the fair value The higher the net asset value, the higher the fair value Relationship of inputs to fair value
					The higher the multiplier, the higher the fair value The higher the net asset value, the higher the fair value

• I. The Company has carefully assessed the valuation models and assumptions used to measure fair value. However, use of different valuation models or assumptions may result in different measurements. If net assets value from financial assets and liabilities categorised within Level 3 had increased or decreased by 1%, net income or other comprehensive income would not have been significantly impacted for the years ended December 31, 2019 and 2018.

13. SUPPLEMENTARY DISCLOSURES

(1) Significant transactions information

• A. Loans to others: None.

• B. Provision of endorsements and guarantees to others: None.

• C. Holding of marketable securities at the end of the period (not including subsidiaries, associates and joint ventures): Please refer to Table 1.

• D. Acquisition or sale of the same security with the accumulated cost reaching $300 million or 20% of the Company’s paid-in capital: Please refer to Table 2.

• E. Acquisition of real estate reaching $300 million or 20% of paid-in capital or more: None.

• F. Disposal of real estate reaching $300 million or 20% of paid-in capital or more: None.

~63~

• G. Purchases or sales of goods from or to related parties reaching $100 million or 20% of paid-in capital or more: Please refer to Table 3.

• H. Receivables from related parties reaching $100 million or 20% of paid-in capital or more: Please refer to Table 4.

• I. Trading in derivative instruments undertaken during the reporting periods: None.

• J. Significant inter-company transactions during the reporting periods: Please refer to Table 5.

(2) Information on investees

Names, locations and other information of investee companies (not including investees in Mainland China): Please refer to Table 6.

(3) Information on investments in Mainland China

• A. Basic information: Please refer to Table 7.

• B. Significant transactions, either directly or indirectly through a third area, with investee companies in the Mainland Area: None.

14. SEGMENT INFORMATION

None.

~64~

Table 1

PRESIDENT CHAIN STORE CORP. AND SUBSIDIARIES

Holding of marketable securities at the end of the period (not including subsidiaries, associates and joint ventures) December 31, 2019

Expressed in thousands of NTD (Except as otherwise indicated)

Securities held by	Type and name of securities	Relationship with the securities issuer	General ledger account		As of December 31,2019	As of December 31,2019		Footnote
				Number of shares	Book value	Ownership (%)	Fair value
President Chain Store Corp. President Chain Store Corp. President Chain Store Corp. President Chain Store Corp. Mech-President Corp. President Chain Store Corp. President Chain Store Corp. President Chain Store Corp. Books.com. Co., Ltd. Chieh Shun Logistics International Corp. Chieh Shun Logistics International Corp. Uni-Wonder Corp. Uni-Wonder Corp. Uni-Wonder Corp. Uni-Wonder Corp. President Drugstore Business Corp. President Information Corp. President Information Corp. President Information Corp. President Logistics International Corp. President Logistics International Corp. President Pharmaceutical Corp. President Pharmaceutical Corp. Q-ware Systems & Services Corp.	Stock: President Investment Trust Corp. Career Consulting Co. Ltd. Kaohsiung Rapid Transit Corp. PK Venture Capital Corp. Yamay International Development Corp. President Securities Corp. Duskin Co., Ltd. Koasa Yamako Corp. Beneficiary certificates: Jih Sun Money Market Fund Taishin 1699 Money Market Fund UPAMC James Bond Money Market Fund FSITC Taiwan Money Market Fund Prudential Financial Money Market Fund Allianz Global Investors Taiwan Money Market Fund Taishin 1699 Money Market Fund Jih Sun Money Market Fund Prudential Financial Money Market Fund Jih Sun Money Market Fund UPAMC James Bond Money Market Fund Taishin 1699 Money Market Fund UPAMC James Bond Money Market Fund Jih Sun Money Market Fund Taishin 1699 Money Market Fund Eastspring Investments Well Pool Money Market Fund	Director of President Investment Trust Corp. None 〃 Director of PK Venture Capital Corp. None Investees of Uni-President Enterprises Corp. under the equity method None Director of Koasa Yamako Corp. None 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃	Financial assets at fair value through profit or loss－ non-current 〃 〃 〃 〃 Financial assets at fair value through other comprehensive income－non-current 〃 〃 Financial assets at fair value through profit or loss－current 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃	2,667,600 837,753 2,572,127 321,300 9 38,221,259 300,000 650,000 1,344,764 6,846,847 1,698,941 19,527,436 18,260,010 15,898,378 12,514,539 1,680,379 4,187,088 10,559,658 2,802,490 736,692 864,391 109,545 1,464 19,990,627	45,298 $ 14,546 25,721 - - 552,297 250,470 4,348 20,005 $ 93,009 28,505 300,000 290,000 200,000 170,000 25,000 66,498 157,102 47,021 10,007 14,503 1,630 20 273,000	7.60 5.37 0.92 6.67 - 2.79 0.56 10.00 - - - - - - - - - - - - - - - -	45,298 $ 14,546 25,721 - - 552,297 250,470 4,348 20,005 $ 93,009 28,505 300,000 290,000 200,000 170,000 25,000 66,498 157,102 47,021 10,007 14,503 1,630 20 273,000

Table 1  Page 1

PRESIDENT CHAIN STORE CORP. AND SUBSIDIARIES

Acquisition or sale of the same security with the accumulated cost reaching $300 million or 20% of the Company's paid-in capital For the year ended December 31, 2019

Table 2 Investor	Type andname ofsecurities	General ledger account	Counterparty	Relationship with theinvestor	Balance as at January1,2019	Balance as at January1,2019	Addition	Addition		Disposal	Disposal		Other increase (decrease)	Other increase (decrease)	Expressed in thousands of NTD (Except as otherwise indicated) Balance as atDecember31,2019	Expressed in thousands of NTD (Except as otherwise indicated) Balance as atDecember31,2019
					Number of shares	Amount	Number of shares	Amount	Number of shares	Selling price	Bookvalue	Gain (loss) ondisposal	Number of shares	Amount	Number of shares	Amount
Books.com. Co., Ltd. Books.com. Co., Ltd. Chieh Shun Logistics International Corp. Chieh Shun Logistics International Corp. Uni-Wonder Corp. Uni-Wonder Corp. Uni-Wonder Corp. Uni-Wonder Corp. Uni-Wonder Corp. Uni-Wonder Corp. President Drugstore Business Corp. President Drugstore Business Corp. President Information Corp. President Information Corp. President Logistics International Corp. President Logistics International Corp. President Pharmaceutical Corp. Q-ware Systems & Services Corp.	Beneficiary certificates: Yuanta De-Li Money Market Fund Jih Sun Money Market Fund Taishin 1699 Money Market Fund UPAMC James Bond Money Market Fund FSITC Taiwan Money Market Fund Prudential Financial Money Market Fund Allianz Global Investors Taiwan Money Market Fund Taishin 1699 Money Market Fund Union Money Market Fund Nomura Taiwan Money Market Fund Taishin 1699 Money Market Fund FSITC Taiwan Money Market Fund Prudential Financial Money Market Fund Jih Sun Money Market Fund Taishin 1699 Money Market Fund UPAMC James Bond Money Market Fund Taishin 1699 Money Market Fund Eastspring Investments Well Pool Money Market Fund	Note 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃	Not applicable 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃	Not applicable 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃	1,843,148 - - 2,037,832 - - 3,996,323 2,220,998 15,170,478 - - - 7,643,267 - - 3,266,653 3,036,177 16,121,671	30,008 $ - - 34,002 - - 50,000 30,000 200,000 - - - 120,716 - - 54,506 41,011 219,000	43,579,059 83,519,497 54,050,840 28,216,997 114,193,080 64,323,276 119,513,956 126,211,087 43,882,697 26,959,349 146,883,213 67,110,185 25,505,438 37,554,324 31,949,778 21,967,980 54,369,056 224,644,440	710,000 $ 1,240,000 732,500 472,001 1,750,000 1,020,000 1,500,000 1,710,000 580,000 440,000 1,991,000 1,028,000 404,098 557,602 432,999 367,500 736,301 3,060,000	45,422,207 82,174,733 47,203,993 28,555,888 94,665,644 46,063,266 107,611,901 115,917,536 59,053,175 26,959,349 146,883,213 67,110,185 28,961,617 26,994,666 31,213,086 24,370,242 57,403,769 220,775,484	740,300 $ 1,220,675 639,697 477,640 1,451,189 730,730 1,350,857 1,570,766 780,458 440,130 1,991,361 1,028,158 458,595 400,902 423,079 407,578 777,510 3,007,145	740,000 $ 1,220,000 639,500 477,500 1,450,000 730,000 1,350,000 1,570,000 780,000 440,000 1,991,000 1,028,000 458,316 400,500 422,994 407,500 777,283 3,006,000	300 $ 675 197 140 1,189 730 857 766 458 130 361 158 279 402 85 78 227 1,145	- - - - - - - - - - - - - - - - - -	8) ($ 5 9 2 - - - - - - - - - - 2 3) ( 9) ( -	- 1,344,764 6,846,847 1,698,941 19,527,436 18,260,010 15,898,378 12,514,539 - - - - 4,187,088 10,559,658 736,692 864,391 1,464 19,990,627	- $ 20,005 93,009 28,505 300,000 290,000 200,000 170,000 - - - - 66,498 157,102 10,007 14,503 20 273,000

Note: The security was recognized as "Financial assets at fair value through profit or loss–current".

Table 2  Page 1

Table 3

PRESIDENT CHAIN STORE CORP. AND SUBSIDIARIES

Purchases or sales of goods from or to related parties reaching $100 million or 20% of paid-in capital or more For the year ended December 31, 2019

Expressed in thousands of NTD (Except as otherwise indicated)

Purchaser/seller	Counterparty	Relationship with the counterparty			Transaction		Differences in transaction terms compared to third party transactions	Differences in transaction terms compared to third party transactions	Notes/accounts	receivable(payable)	Footnote
			Purchases(sales)	Amount	Percentage of total purchases (sales)	Credit term	Unitprice	Credit term	Balance	Percentage of total notes/accounts receivable(payable)
President Chain Store Corp. Capital Marketing Consultant Corp. Chieh Shun Logistics International Corp. President Transnet Corp. Uni-Wonder Corp. President Information Corp.	Uni-President Enterprises Corp. Uni-President Superior Commissary Corp. Tung Ang Enterprises Corp. Lien-Bo Enterprises Corp. Tait Marketing & Distribution Co., Ltd. President Packaging Corp. President Transnet Corp. Kuang Chuan Dairy Corp. Weilih Food Industrial Co., Ltd. 21 Century Co., Ltd. Mister Donut Taiwan Corp., Ltd. President Pharmaceutical Corp. Kai Ya Food Co., Ltd. Q-ware Systems & Services Corp. President Chain Store Corp. President Transnet Corp. President Logistics International Corp. Chieh Shun Logistics International Corp. President Chain Store Corp. Uni-President Enterprises Corp. Tung Chan Enterprise Corp. Retail Support International Corp. President Chain Store Corp.	Ultimate parent company Subsidiary Sister company 〃 〃 〃 Subsidiary Other related party 〃 Subsidiary Associate Subsidiary Sister company Subsidiary Parent company Subsidiary of President Chain Store Corp. Parent company Subsidiary of President Chain Store Corp. Parent company Ultimate parent company Other related party Subsidiary of President Chain Store Corp. Parent company	Purchases 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 Service revenue Delivery revenue 〃 Service cost Sales revenue Purchases 〃 〃 Service revenue	15,787,494 $ 3,863,554 1,954,570 668,520 401,064 412,791 304,485 583,267 284,484 387,986 141,949 204,886 231,672 626,267 197,577) ( 680,779) ( 1,047,554) ( 680,779 304,485) ( 337,389 1,103,134 210,957 859,075) (	15 4 2 1 - - - 1 - - - - - 1 66) ( 38) ( 59) ( 7 56) ( 8 25 5 68) (	Net 30~40 days from the end of the month when invoice is issued Net 45 days from the end of the month when invoice is issued Net 30 days from the end of the month when invoice is issued Net 10~54 days from the end of the month when invoice is issued Net 20~70 days from the end of the month when invoice is issued Net 15~60 days from the end of the month when invoice is issued Net 60 days from the end of the month when invoice is issued Net 30~65 days from the end of the month when invoice is issued Net 30~60 days from the end of the month when invoice is issued Net 30~60 days from the end of the month when invoice is issued Net 55~60 days from the end of the month when invoice is issued Net 60~70 days from the end of the month when invoice is issued Net 40 days from the end of the month when invoice is issued Net 40 days from the end of the month when invoice is issued Net 45~60 days from the end of the month when invoice is issued Net 40 days from the end of the month when invoice is issued Net 20 days from the end of the month when invoice is issued Net 40 days from the end of the month when invoice is issued Net 60 days from the end of the month when invoice is issued Net 30 days from the end of the month when invoice is issued Net 25 days from the end of the month when invoice is issued Net 30 days from the end of the month when invoice is issued Net 45 days from the end of the month when invoice is issued	No significant differences 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃	No significant differences 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃	1,291,634) ($ 669,136) ( 152,061) ( 91,889) ( 75,268) ( 71,064) ( 28,007) ( 138,159) ( 35,120) ( 77,274) ( 22,695) ( 66,115) ( 84,501) ( 109,546) ( 36,933 85,068 96,462 85,068) ( 28,007 35,298) ( 107,088) ( 19,079) ( 124,774	8) ( 4) ( 1) ( 1) ( - - - 1) ( - 1) ( - - 1) ( 1) ( 59 46 52 5) ( 2 6) ( 19) ( 3) ( 58

Table 3  Page 1

Table 3

PRESIDENT CHAIN STORE CORP. AND SUBSIDIARIES

Purchases or sales of goods from or to related parties reaching $100 million or 20% of paid-in capital or more For the year ended December 31, 2019

Expressed in thousands of NTD (Except as otherwise indicated)

Purchaser/seller	Counterparty	Relationship with the counterparty			Transaction		Differences in transaction terms compared to third party transactions	Differences in transaction terms compared to third party transactions	Notes/accounts	receivable(payable)	Footnote
			Purchases(sales)	Amount	Percentage of total purchases (sales)	Credit term	Unitprice	Credit term	Balance	Percentage of total notes/accounts receivable(payable)
President Logistics International Corp. Retail Support International Corp. Uni-President Cold-Chain Corp. Wisdom Distribution Service Corp. Q-ware Systems & Services Corp. President Drugstore Business Corp. President Pharmaceutical Corp. 21 Century Co., Ltd. Uni-President Superior Commissary Corp. Retail Support Taiwan Corp. Zhejiang Uni-Champion Logistics Development Co., Ltd. Shanghai President Logistic Co., Ltd.	Chieh Shun Logistics International Corp. Retail Support International Corp. Uni-President Cold-Chain Corp. Wisdom Distribution Service Corp. Retail Support Taiwan Corp. President Logistics International Corp. Uni-Wonder Corp. President Logistics International Corp. President Logistics International Corp. Books.com. Co., Ltd. President Chain Store Corp. President Pharmaceutical Corp. President Drugstore Business Corp. President Chain Store Corp. President Chain Store Corp. President Chain Store Corp. Retail Support International Corp. Shanghai President Logistic Co., Ltd. Zhejiang Uni-Champion Logistics Development Co., Ltd.	Subsidiary Parent company Subsidiary of President Chain Store Corp. 〃 Subsidiary 〃 Subsidiary of President Chain Store Corp. 〃 〃 〃 Parent company Subsidiary of President Chain Store Corp. 〃 Parent company 〃 〃 〃 〃 Subsidiary	Service cost Delivery revenue 〃 〃 Service cost 〃 Delivery revenue Service cost 〃 Service revenue 〃 Purchases Sales revenue 〃 〃 〃 Delivery revenue 〃 Service cost	1,047,554 $ 788,848) ( 1,084,094) ( 1,076,090) ( 313,865 788,848 210,957) ( 1,084,094 1,076,090 285,125) ( 626,267) ( 622,641 622,641) ( 204,886) ( 387,986) ( 3,863,554) ( 313,865) ( 172,251) ( 172,251	34 25) ( 34) ( 34) ( 20 49 7) ( 37 45 10) ( 67) ( 6 38) ( 13) ( 38) ( 99) ( 83) ( 32) ( 25	Net 20 days from the end of the month when invoice is issued Net 20 days from the end of the month when invoice is issued Net 20 days from the end of the month when invoice is issued Net 20 days from the end of the month when invoice is issued Net 15~20 days from the end of the month when invoice is issued Net 20 days from the end of the month when invoice is issued Net 30 days from the end of the month when invoice is issued Net 20 days from the end of the month when invoice is issued Net 20 days from the end of the month when invoice is issued Net 30 days from the end of the month when invoice is issued Net 40 days from the end of the month when invoice is issued Net 70 days from the end of the month when invoice is issued Net 70 days from the end of the month when invoice is issued Net 60~70 days from the end of the month when invoice is issued Net 30~60 days from the end of the month when invoice is issued Net 45 days from the end of the month when invoice is issued Net 15~20 days from the end of the month when invoice is issued Net 60 days from the end of the month when invoice is issued Net 60 days from the end of the month when invoice is issued	No significant differences 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃	No significant differences 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃	96,462) ($ 74,892 97,129 112,939 25,648) ( 74,892) ( 19,079 97,129) ( 112,939) ( 24,585 109,546 25,490) ( 25,490 66,115 77,274 669,136 25,648 38,473 38,473) (	35) ( 24 31 36 17) ( 50) ( 9 2) ( 39) ( 38 74 1) ( 7 18 53 100 68 50 37) (

Table 3  Page 2

Table 3

PRESIDENT CHAIN STORE CORP. AND SUBSIDIARIES

Purchases or sales of goods from or to related parties reaching $100 million or 20% of paid-in capital or more For the year ended December 31, 2019

Expressed in thousands of NTD (Except as otherwise indicated)

Purchaser/seller	Counterparty	Relationship with the counterparty			Transaction		Differences in transaction terms compared to third party transactions	Differences in transaction terms compared to third party transactions	Notes/accounts	receivable(payable)	Footnote
			Purchases(sales)	Amount	Percentage of total purchases (sales)	Credit term	Unitprice	Credit term	Balance	Percentage of total notes/accounts receivable(payable)
Duskin Serve Taiwan Co., Ltd. ICASH Corp. President Logistic ShanDong Co., Ltd. Shan Dong President Yinzuo Commercial Limited Shanghai President Logistic Co., Ltd. President Chain Store (Shanghai) Ltd.	President Chain Store Corp. President Chain Store Corp. Shan Dong President Yinzuo Commercial Limited President Logistic ShanDong Co., Ltd. President Chain Store (Shanghai) Ltd. Shanghai President Logistic Co., Ltd.	Parent company 〃 Subsidiary of President Chain Store Corp. 〃 〃 〃	Service revenue 〃 Delivery revenue Service cost Delivery revenue Service cost	276,434) ($ 138,831) ( 116,221) ( 116,221 108,467) ( 108,467	21) ( 35) ( 99) ( 5 13) ( 10	Net 15~60 days from the end of the month when invoice is issued Net 60 days from the end of the month when invoice is issued Net 30 days from the end of the month when invoice is issued Net 30 days from the end of the month when invoice is issued Net 58 days from the end of the month when invoice is issued Net 58 days from the end of the month when invoice is issued	No significant differences 〃 〃 〃 〃 〃	No significant differences 〃 〃 〃 〃 〃	38,213 $ 32,379 10,031 10,031) ( 9,218 9,218) (	21 58 97 2) ( 7 7) (

Table 3  Page 3

PRESIDENT CHAIN STORE CORP. AND SUBSIDIARIES

Receivables from related parties reaching $100 million or 20% of paid-in capital or more December 31, 2019

		December 31, 2019
Table 4 Creditor	Counterparty	Relationship withthe counterparty	Balance as of December31,2019	Turnover rate	Overdue receivables		Amount collected subsequent to the balance sheet date Allowance for doubtfulaccounts Expressed in thousands of NTD (Except as otherwise indicated)
					Amount	Action taken
Uni-President Superior Commissary Corp. President Information Corp. President Logistics International Corp. Q-ware Systems & Services Corp.	President Chain Store Corp. President Chain Store Corp. Wisdom Distribution Service Corp. President Chain Store Corp.	Parent company 〃 Subsidiary of President Chain Store Corp. Parent company	669,136 $ 124,774 112,939 109,546	5.98 4.67 9.96 5.78	- $ - - -	none 〃 〃 〃	668,833 $ 68,676 102,410 109,542	- $ - - -

Table 4  Page 1

PRESIDENT CHAIN STORE CORP. AND SUBSIDIARIES

Significant inter-company transactions during the reporting periods

For the year ended December 31, 2019

			For the year ended December 31, 2019
Table 5 Number	Companyname	Counterparty	Relationship			Transaction Expressed in thousands of NTD (Except as otherwise indicated)
				General ledger account	Amount	Transaction terms	Percentage of consolidated total operating revenues or total assets
0 0 1 2 3 3 4 4 5 5 6 6 7 8 8 9 9 9 9 10 11 12 13 14 15	President Chain Store Corp. President Chain Store Corp. Uni-President Cold-Chain Corp. Capital Marketing Consultant Corp. President Information Corp. President Information Corp. Q-ware Systems & Services Corp. Q-ware Systems & Services Corp. Uni-President Superior Commissary Corp. Uni-President Superior Commissary Corp. President Pharmaceutical Corp. President Pharmaceutical Corp. President Transnet Corp. Chieh Shun Logistics International Corp. Chieh Shun Logistics International Corp. President Logistics International Corp. President Logistics International Corp. President Logistics International Corp. President Logistics International Corp. Duskin Serve Taiwan Co., Ltd. 21 Century Co., Ltd. Wisdom Distribution Service Corp. Retail Support Taiwan Corp. Zhejiang Uni-Champion Logistics Development Co., Ltd. ICASH Corp.	Books.com. Co., Ltd. President Transnet Corp. President Chain Store Corp. President Chain Store Corp. President Chain Store Corp. President Chain Store Corp. President Chain Store Corp. President Chain Store Corp. President Chain Store Corp. President Chain Store Corp. President Drugstore Business Corp. President Chain Store Corp. President Chain Store Corp. President Logistics International Corp. President Transnet Corp. Retail Support International Corp. Uni-President Cold-Chain Corp. Wisdom Distribution Service Corp. Wisdom Distribution Service Corp. President Chain Store Corp. President Chain Store Corp. Books.com. Co., Ltd. Retail Support International Corp. Shanghai President Logistic Co., Ltd. President Chain Store Corp.	Parent company to subsidiary Parent company to subsidiary Subsidiary to parent company Subsidiary to parent company Subsidiary to parent company Subsidiary to parent company Subsidiary to parent company Subsidiary to parent company Subsidiary to parent company Subsidiary to parent company Subsidiary to subsidiary Subsidiary to parent company Subsidiary to parent company Subsidiary to subsidiary Subsidiary to subsidiary Subsidiary to subsidiary Subsidiary to subsidiary Subsidiary to subsidiary Subsidiary to subsidiary Subsidiary to parent company Subsidiary to parent company Subsidiary to subsidiary Subsidiary to subsidiary Subsidiary to subsidiary Subsidiary to parent company	Other operating revenue Other operating revenue Other operating revenue Service revenue Service revenue Accounts receivable Service revenue Accounts receivable Sales revenue Accounts receivable Sales revenue Sales revenue Sales revenue Delivery revenue Delivery revenue Delivery revenue Delivery revenue Delivery revenue Accounts receivable Service revenue Sales revenue Service revenue Delivery revenue Delivery revenue Service revenue	162,669) ($ 161,501) ( 371,757) ( 197,577) ( 859,075) ( 124,774 626,267) ( 109,546 3,863,554) ( 669,136 622,641) ( 204,886) ( 304,485) ( 1,047,554) ( 680,779) ( 788,848) ( 1,084,094) ( 1,076,090) ( 112,939 276,434) ( 387,986) ( 285,125) ( 313,865) ( 172,251) ( 138,831) (	Net 60 days from the end of the month when invoice is issued Net 60 days from the end of the month when invoice is issued Net 20 days from the end of the month when invoice is issued Net 45~60 days from the end of the month when invoice is issued Net 45 days from the end of the month when invoice is issued Net 45 days from the end of the month when invoice is issued Net 40 days from the end of the month when invoice is issued Net 40 days from the end of the month when invoice is issued Net 45 days from the end of the month when invoice is issued Net 45 days from the end of the month when invoice is issued Net 70 days from the end of the month when invoice is issued Net 60~70 days from the end of the month when invoice is issued Net 60 days from the end of the month when invoice is issued Net 20 days from the end of the month when invoice is issued Net 40 days from the end of the month when invoice is issued Net 20 days from the end of the month when invoice is issued Net 20 days from the end of the month when invoice is issued Net 20 days from the end of the month when invoice is issued Net 20 days from the end of the month when invoice is issued Net 15~60 days from the end of the month when invoice is issued Net 30~60 days from the end of the month when invoice is issued Net 30 days from the end of the month when invoice is issued Net 15~20 days from the end of the month when invoice is issued Net 60 days from the end of the month when invoice is issued Net 60 days from the end of the month when invoice is issued	0.06 0.06 0.15 0.08 0.34 0.06 0.24 0.06 1.51 0.34 0.24 0.08 0.12 0.41 0.27 0.31 0.42 0.42 0.06 0.11 0.15 0.11 0.12 0.07 0.05

Table 5  Page 1

PRESIDENT CHAIN STORE CORP. AND SUBSIDIARIES

Significant inter-company transactions during the reporting periods

For the year ended December 31, 2019

			For the year ended December 31, 2019
Table 5 Number	Companyname	Counterparty	Relationship			Transaction Expressed in thousands of NTD (Except as otherwise indicated)
				General ledger account	Amount	Transaction terms	Percentage of consolidated total operating revenues or total assets
16 17 18	Retail Support International Corp. President Logistic ShanDong Co., Ltd. Shanghai President Logistic Co., Ltd.	Uni-Wonder Corp. Shan Dong President Yinzuo Commercial Limited President Chain Store (Shanghai) Ltd.	Subsidiary to subsidiary Subsidiary to subsidiary Subsidiary to subsidiary	Delivery revenue Delivery revenue Delivery revenue	210,957) ( 116,221) ( 108,467) (	Net 30 days from the end of the month when invoice is issued Net 30 days from the end of the month when invoice is issued Net 58 days from the end of the month when invoice is issued	0.08 0.05 0.04

Note:Transaction among the company and subsidiaries with amount over NTD$100,000, only one side of the transactions are disclosed.

Table 5  Page 2

Table 6

PRESIDENT CHAIN STORE CORP. AND SUBSIDIARIES

Names, locations and other information of investee companies (not including investees in Mainland China) For the year ended December 31, 2019

Expressed in thousands of NTD (Except as otherwise indicated)

Investor	Investee	Location	Main business activities	Initial investment amount	Initial investment amount	Shares held	as at December 31,2019	as at December 31,2019	Net profit (loss) of the investee for the year ended December 31, 2019	Investment income (loss) recognized by the Company for the year ended December 31, 2019	Footnote
				Balance as at December 31, 2019	Balance as at December 31, 2018	Number of shares	Ownership (%)	Bookvalue
President Chain Store Corp. President Chain Store Corp. President Chain Store Corp. President Chain Store Corp. President Chain Store Corp. President Chain Store Corp. President Chain Store Corp. President Chain Store Corp. President Chain Store Corp. President Chain Store Corp. President Chain Store Corp. President Chain Store Corp. President Chain Store Corp. President Chain Store Corp. President Chain Store Corp. President Chain Store Corp. President Chain Store Corp. President Chain Store Corp. President Chain Store Corp. President Chain Store Corp. President Chain Store Corp. President Chain Store Corp. President Chain Store Corp. President Chain Store Corp. President Chain Store Corp. President Chain Store Corp. President Chain Store Corp. President Chain Store Corp.	President Chain Store (BVI) Holdings Ltd. President Drugstore Business Corp. President Transnet Corp. Mech-President Corp. President Pharmaceutical Corp. Uni-President Department Store Corp. Uni-President Superior Commissary Corp. Uni-President Cold-Chain Corp. President Information Corp. Q-ware Systems & Services Corp. Wisdom Distribution Service Corp. Books.com. Co., Ltd. President Lanyang Art Corporation Duskin Serve Taiwan Co., Ltd. ICASH Corp. Uni-President Development Corp. Uni-Wonder Corp. Retail Support International Corp. Presicarre Corp. President Fair Development Corp. President International Development Corp. Tung Ho Development Corp. Ren-Hui Investment Corp. Capital Marketing Consultfant Corp. PCSC (China) Drugstore Limited President Chain Store Corporation Insurance Brokers Co., Ltd. Cold Stone Creamery Taiwan Ltd. President Being Corp.	British Virgin Islands Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan British Virgin Islands Taiwan Taiwan Taiwan	Professional investment Sales of cosmetics, medicines and daily items Delivery service Gas station, installment and maintenance of elevators Sales of various health care products, cosmetics, and pharmaceuticals Department stores Fresh food manufacture Low-temperature logistics and warehousing Enterprise information management and consultancy Information software services Logistics and storage of publication and e-commerce Retail business without shop Art and cultural exhibition Cleaning instruments leasing and selling Electronic ticketing services Construction, development and operation of an MRT station Coffee chain store Room-temperature logistics and warehousing Management of retail department store Operation of shopping mall, department store, international trade, etc. Professional investment Management of entertainment business Professional investment Enterprise management consultancy Professional investment Life and property insurance Sales of ice cream Sports and entertainment business	6,712,138 $ 288,559 711,576 904,475 330,216 840,000 520,141 237,437 320,741 332,482 50,000 100,400 20,000 102,000 700,000 720,000 3,286,206 91,414 7,112,028 3,191,700 500,000 861,696 637,231 9,506 277,805 213,000 170,000 170,000	6,712,138 $ 288,559 711,576 904,475 330,216 840,000 520,141 237,437 320,741 332,482 50,000 100,400 20,000 102,000 500,000 720,000 3,286,206 91,414 7,112,028 3,191,700 500,000 861,696 637,231 9,506 277,805 213,000 170,000 170,000	171,589,586 78,520,000 103,496,399 55,858,815 22,121,962 27,999,999 48,519,890 23,605,042 25,714,475 24,382,921 10,847,421 9,999,999 2,000,000 10,199,999 70,000,000 72,000,000 21,382,674 6,429,999 145,172,360 190,000,000 44,100,000 19,930,000 6,500,000 2,500,000 8,746,008 1,500,000 12,244,390 1,500,000	100.00 100.00 70.00 80.87 73.74 70.00 90.00 60.00 86.00 86.76 100.00 50.03 100.00 51.00 100.00 20.00 60.00 25.00 19.50 19.00 3.33 12.46 100.00 100.00 92.20 100.00 100.00 100.00	26,348,522 $ 1,432,449 1,634,536 702,347 743,725 543,179 484,058 679,859 493,788 390,054 454,125 398,293 25,120 201,317 567,243 764,191 5,164,559 178,147 5,723,198 2,039,406 459,696 106,384 80,362 67,401 64,706 27,568 6,133 33,462) (	1,105,919 $ 320,671 599,834 106,216 189,810 265,132 18,574 353,843 75,175 80,156 272,543 379,594 120 145,830 12,876 156,197 640,378 205,652 1,812,443 290,953 672,885 66,331) ( 6,464 40,210 2,289 10,746 15,423 8,767	1,105,919 $ 320,671 419,884 85,898 139,966 185,592 16,716 212,306 64,651 69,542 272,543 189,890 120 74,373 12,876 31,239 291,031 51,413 353,425 55,281 22,029 8,265) ( 6,464 40,210 2,110 10,746 15,423 8,767	Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Note 1 Subsidiary Subsidiary Note 1 Note 1 Note 1 Note 1 Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary

Table 6  Page 1

PRESIDENT CHAIN STORE CORP. AND SUBSIDIARIES

Names, locations and other information of investee companies (not including investees in Mainland China) For the year ended December 31, 2019

Table 6 Investor	Investee	Location	Main business activities	Initial investment amount	Initial investment amount	Shares held	as at December 31,2019	as at December 31,2019	Net profit (loss) of the investee for the year ended December 31, 2019	Investment income (loss) recognized by the Company for the year ended December 31, 2019 Footnote Expressed in thousands of NTD (Except as otherwise indicated)	Investment income (loss) recognized by the Company for the year ended December 31, 2019 Footnote Expressed in thousands of NTD (Except as otherwise indicated)
				Balance as at December 31, 2019	Balance as at December 31, 2018	Number of shares	Ownership (%)	Bookvalue
President Chain Store Corp. President Chain Store Corp. President Chain Store Corp. President Chain Store Corp. President Chain Store Corp. President Chain Store Corp. President Chain Store Corp. President Chain Store Corp. Books.com. Co., Ltd. Mech-President Corp. President Chain Store (Hong Kong) Holdings Limited President Chain Store (Hong Kong) Holdings Limited President Chain Store (BVI) Holdings Ltd. President Chain Store (BVI) Holdings Ltd. President Chain Store (Labuan) Holdings Ltd. President Logistics International Corp. President Pharmaceutical Corp. Ren-Hui Investment Corp. Ren-Hui Investment Corp. Ren-Hui Investment Corp. Ren-Hui Investment Corp. Ren-Hui Investment Corp. Ren-Hui Investment Corp. Ren-Hui Investment Corp.	21 Century Co., Ltd. President Chain Store Tokyo Marketing Corp. Uni-President Oven Bakery Corp. President Collect Service Corp. Afternoon Tea Taiwan Co., Ltd. Mister Donut Taiwan Corp., Ltd. Uni-President Organics Corp. President Technology Corp. Books.com. (BVI) Ltd. Tong Ching Corporation PCSC Restaurant (Cayman) Holdings Limited PCSC (China) Drugstore Limited President Chain Store (Labuan) Holdings Ltd. President Chain Store (Hong Kong) Holdings Limited Philippine Seven Corp. Chieh Shun Logistics International Corp. President Pharmaceutical (Hong Kong) Holdings Limited Books.com. Co., Ltd. Uni-President Department Store Corp. Mech-President Corp. President Information Corp. President Transnet Corp. Q-ware Systems & Services Corp. Duskin Serve Taiwan Co., Ltd.	Taiwan Japan Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan British Virgin Islands Taiwan Cayman Islands British Virgin Islands Malaysia Hong Kong Philippines Taiwan Hong Kong Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan	Operation of chain restaurants Enterprise management consultancy Bread and pastry retailer Collection agent Operation of restaurants Bakery retailer Health care products and organic food Software development and call center service Professional investment Gas station Professional investment Professional investment Professional investment Professional investment Operation of chain stores Trucking Sales of various health care products, cosmetics, and pharmaceuticals Retail business without shop Department stores Gas station, installment and maintenance of elevators Enterprise information management and consultancy Delivery service Information software services Cleaning instruments leasing and selling	160,680 $ 35,648 391,300 10,500 - 200,000 47,190 7,500 1,478 9,600 - 22,185 874,317 4,669,592 873,477 180,000 178,024 - - - - - - -	160,680 $ 35,648 391,300 10,500 147,900 200,000 47,190 7,500 1,478 9,600 156,138 22,185 874,317 4,669,592 873,477 180,000 178,024 - - - - - - -	10,000,000 9,800 6,511,963 1,049,999 - 7,500,049 1,833,333 750,000 500 960,000 - 740,000 29,163,337 134,603,354 394,970,516 26,670,000 5,935,900 1 1 1 1 1 1 1	100.00 100.00 100.00 70.00 - 50.00 36.67 15.00 100.00 60.00 - 7.80 100.00 100.00 52.22 100.00 100.00 - - - - - - -	86,391 $ 81,783 44,826) ( 84,225 - 100,768 41,430 20,866 593 24,729 - 5,474 2,529,852 4,156,038 2,528,945 326,575 60,236 - - - - - - -	50,117 $ 6,227 13,275) ( 91,615 - 31,471 24,020 26,075 1 12,583 3,255) ( 2,289 424,830 78,069 862,749 33,663 12,758) ( 379,594 265,132 106,216 75,175 599,834 80,156 145,830	50,117 $ 6,227 13,275) ( 64,132 - 14,613 8,807 3,869 1 7,550 3,255) ( 179 424,830 109,818 445,176 33,663 12,758) ( - - - - - - -	Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Note 1 Note 1 Note 1 Subsidiary of a subsidiary Subsidiary of a subsidiary Subsidiary of a subsidiary Subsidiary of a subsidiary Subsidiary of a subsidiary Subsidiary of a subsidiary Subsidiary of a subsidiary Subsidiary of a subsidiary Subsidiary of a subsidiary Subsidiary of a subsidiary Subsidiary of a subsidiary Subsidiary of a subsidiary Subsidiary of a subsidiary Subsidiary of a subsidiary Subsidiary of a subsidiary Subsidiary of a subsidiary

Table 6  Page 2

Table 6

PRESIDENT CHAIN STORE CORP. AND SUBSIDIARIES

Names, locations and other information of investee companies (not including investees in Mainland China) For the year ended December 31, 2019

Expressed in thousands of NTD (Except as otherwise indicated)

Investor	Investee	Location	Main business activities	Initial investment amount	Initial investment amount	Shares held	as at December 31,2019	as at December 31,2019	Net profit (loss) of the investee for the year ended December 31, 2019	Investment income (loss) recognized by the Company for the year ended December 31, 2019	Footnote
				Balance as at December 31, 2019	Balance as at December 31, 2018	Number of shares	Ownership (%)	Bookvalue
Ren-Hui Investment Corp. Ren-Hui Investment Corp. Ren-Hui Investment Corp. Ren-Hui Investment Corp. Ren-Hui Investment Corp. Ren-Hui Investment Corp. Ren-Hui Investment Corp. Ren-Hui Investment Corp. Retail Support International Corp. Retail Support International Corp. Retail Support Taiwan Corp. Uni-President Cold-Chain Corp. Uni-President Cold-Chain Corp. Wisdom Distribution Service Corp. Wisdom Distribution Service Corp. Philippine Seven Corp. Philippine Seven Corp.	President Pharmaceutical Corp. Mister Donut Taiwan Corp., Ltd. Uni-President Superior Commissary Corp. Uni-President Cold-Chain Corp. Retail Support International Corp. President Collect Service Corp. Afternoon Tea Taiwan Co., Ltd. Ren Hui Holding Co., Ltd. Retail Support Taiwan Corp. President Logistics International Corp. President Logistics International Corp. President Logistics International Corp. Uni-President Logistics (BVI) Holdings Limited President Logistics International Corp. Vision Distribution Service Corp. Convenience Distribution Inc. Store Sites Holding, Inc.	Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan British Virgin Islands Taiwan Taiwan Taiwan Taiwan British Virgin Islands Taiwan Taiwan Philippines Philippines	Sales of various health care products, cosmetics, and pharmaceuticals Bakery retailer Fresh food manufacture Low-temperature logistics and warehousing Room-temperature logistics and warehousing Collection agent Operation of restaurants Professional investment Room-temperature logistics and warehousing Trucking Trucking Trucking Professional investment Trucking Publishing Industry Logistics and warehousing Professional investment	- $ - - - - - - 60,374 15,300 44,975 5,425 23,850 87,994 18,850 - 26,633 28,848	- $ - - - - - - 60,374 15,300 44,975 5,425 23,850 87,994 18,850 - 26,633 28,848	1 1 1 1 1 1 - 2,000,000 2,871,300 9,481,500 1,161,000 4,837,500 2,990 3,870,000 - 4,500,000 40,000	- - - - - - - 100.00 51.00 49.00 6.00 25.00 100.00 20.00 - 100.00 100.00	- $ - - - - - - 63,018 76,789 168,876 20,679 86,161 97,736 68,929 - 26,633 28,848	189,810 $ 31,471 18,574 353,843 205,652 91,615 - 2,893 45,447 81,573 81,573 81,573 10,968 81,573 - 29,260 918	- $ - - - - - - 2,893 23,178 39,971 4,894 20,393 10,968 16,315 - - -	Subsidiary of a subsidiary Note 1 Subsidiary of a subsidiary Subsidiary of a subsidiary Subsidiary of a subsidiary Subsidiary of a subsidiary Subsidiary of a subsidiary Subsidiary of a subsidiary Subsidiary of a subsidiary Subsidiary of a subsidiary Subsidiary of a subsidiary Subsidiary of a subsidiary Subsidiary of a subsidiary Subsidiary of a subsidiary Subsidiary of a subsidiary Subsidiary of a subsidiary Subsidiary of a subsidiary

Note 1: The investee was recognized using equity method by the company.

Table 6  Page 3

Table 7

PRESIDENT CHAIN STORE CORP. AND SUBSIDIARIES Information on investments in Mainland China

For the year ended December 31, 2019

Expressed in thousands of NTD (Except as otherwise indicated)

Investeein Mainland China	Mainbusiness activities	Paid-incapital	Investment method	Accumulated amount of remittance from Taiwan to Mainland China as ofJanuary1,2019	Amount remitted from Taiwan to Mainland China/ Amount remitted back to Taiwan for the year ended December31,2019	Amount remitted from Taiwan to Mainland China/ Amount remitted back to Taiwan for the year ended December31,2019	Accumulated amount of remittance from Taiwan to Mainland China as of December 31, 2019	Net income of investee for the year ended December 31,2019	Ownership held by the Company (direct or indirect)	Investment income (loss) recognized by the Company for the year ended December31,2019	Book value of investments in Mainland China as of December31,2019	Accumulated amount of investment income remitted back to Taiwan as of December 31,2019	Footnote
					Remitted to Mainland China	Remitted back to Taiwan
Shanghai President Chain Store Corporation Trade Co., Ltd. President Cosmed Chain Store (Shen Zhen) Co., Ltd. President Chain Store (Shanghai) Ltd. Shanghai President Logistic Co., Ltd. Shanghai Cold Stone Ice Cream Corporation PCSC (Chengdu) Hypermarket Limited Shan Dong President Yinzuo Commercial Limited President (Shanghai) Health Product Trading Company Ltd. Zhejiang Uni-Champion Logistics Development Co., Ltd. Bejing Bokelai Customer Co. President Chain Store (Taizhou) Ltd. President Logistic ShanDong Co., Ltd. President Chain Store (Zhejiang) Ltd. Beauty Wonder (Zhejiang) Trading Co.,Ltd.	Trade of food and commodities Wholesale of merchandise Operation of chain stores Logistics and warehousing Sales of ice cream Retail hypermarket Supermarkets Sales of various health care products, cosmetics, and pharmaceuticals Logistics and warehousing Enterprise information consulting, network technology development and services Logistics and warehousing Logistics and warehousing Operation of chain stores Sales of cosmetics and daily items	- $ 430,549 2,152,745 59,960 958,159 - 258,329 168,591 172,220 450 258,329 215,275 602,769 129,165	Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1	155,014 $ 282,330 2,316,779 59,960 981,516 532,935 122,269 168,591 169,483 - 258,329 215,275 602,769 129,165	- $ - - - - - - - - - - - - -	- $ - - - - - - - - - - - - -	155,014 $ 282,330 2,316,779 59,960 981,516 532,935 122,269 168,591 169,483 - 258,329 215,275 602,769 129,165	11) ($ 2,400 39,455 81,169 307) ( 565) ( 2,988) ( 8,353) ( 22,943 2) ( 32,980 1,979 111,787) ( 34,903) (	- 100.00 100.00 100.00 100.00 - 55.00 73.74 80.00 50.03 100.00 100.00 100.00 100.00	11) ($ 2,383 39,455 81,169 307) ( 582) ( 11,501 6,160) ( 24,113 1) ( 32,980 2,427 111,787) ( 34,903) (	- $ 69,520 103,731 477,450 45,630 - 187,281 21,879 156,194 16 350,970 195,509 290,607 75,992	- $ - - - - - - 55,794 25,553 - - - - -	Note 2 Note 2 Note 2 Note 2 Note 2 Note 2 Note 2 Note 2 Note 2 Note 2 Note 2 Note 2 Note 2 Note 2

Note 1: Indirect investment in PRC through the existing company located in the third area. Note 2: The financial statements were reviewed by the CPA of parent company in Taiwan.

Companyname	Accumulated amount of remittance from Taiwan to Mainland China as of December31,2019	Investment amount approved by the Investment Commission of the Ministry of Economic Affairs (MOEA)	Ceiling on investments in Mainland China imposed by the Investment Commissionof MOEA
President Chain Store Corp. President Pharmaceutical Corp. Uni-President Cold-Chain Corp. Ren-Hui Investment Corp.	4,621,058 $ 168,591 88,963 51,664	168,591 88,963 51,664 8,258,690 $	475,937 667,534 80,000 27,136,391 $

Table 7  Page 1

PRESIDENT CHAIN STORE CORP. STATEMENT OF CASH AND CASH EQUIVALENTS DECEMBER 31, 2019

Statement 1 Item Petty cash in store Demand deposits and checking accounts Cash equivalents Time deposits – New Taiwan dollar Short-term financial instruments	Expressed in thousands of NTD Description Amount $ 898,234 4,601,172 Due dates are March 2020, and interest rates are at 0.8%. 500,000 Due dates are within one month, and interest rates are at 0.45%~0.53%. 4,698,472 $ 10,697,878

Statement 1

PRESIDENT CHAIN STORE CORP. STATEMENT OF INVENTORIES DECEMBER 31, 2019

Statement 2 Item	Description		Amount Cost Market value $ 8,079,200 $ 9,111,667 (42,834) $ 8,036,366	Expressed in thousands of NTD Footnote
			Cost $ 8,079,200 (42,834) $ 8,036,366
Merchandise Less: Allowance for valuation loss				The net realizable value is the market value.

Statement 2

PRESIDENT CHAIN STORE CORP.

STATEMENT OF CHANGES IN FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME – NON-CURRENT FOR THE YEAR ENDED DECEMBER 31, 2019

Statement 3 Name Listed stocks President Securities Corp. Duskin Co., Ltd. Unlisted stocks Koasa Yamako Corp. Subtotal Valuation adjustment	Balance as of January 1, 2019 Number of shares Book value 38,221,259 $ 140,534 300,000 125,072 650,000 4,348 269,954 374,660 $ 644,614	Additions Number of shares Amount - $ - - - - - - 162,501 $ 162,501	Decreases Number of shares Amount - $ - - - - - - - $ -	Expressed in thousands of NTD Balance as of December 31, 2019 Number of shares Book value Collateral 38,221,259 $ 140,534 None 300,000 125,072 〃 650,000 4,348 〃 269,954 537,161 $ 807,115	Expressed in thousands of NTD Balance as of December 31, 2019 Number of shares Book value Collateral 38,221,259 $ 140,534 None 300,000 125,072 〃 650,000 4,348 〃 269,954 537,161 $ 807,115
	Number of shares 38,221,259 300,000 650,000	Number of shares - - -	Number of shares - - -
					None 〃 〃

Statement 3

PRESIDENT CHAIN STORE CORP.

STATEMENT OF CHANGES IN FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS – NON-CURRENT FOR THE YEAR ENDED DECEMBER 31, 2019

Statement 4 Name Unlisted stocks PK Venture Capital Corp. Kaohsiung Rapid Transit Corp. Career Consulting Co. Ltd President Investment Trust Corp. Subtotal Valuation adjustment	Balance as of January 1, 2019 Number of shares Book value 321,300 $ 33,685 2,572,127 203,714 837,753 14,664 2,667,600 22,800 274,863 ( 189,180) $ 85,683	Additions Number of shares Amount - $ - - - - - - - - - $ -	Decreases Amount Number of shares (Note) - $ - - - - ( 118) - - ( 118) - ($ 118)	Expressed in thousands of NTD Balance as of December 31, 2019 Number of shares Book value Collateral 321,300 $ 33,685 None 2,572,127 203,714 〃 837,753 14,546 〃 2,667,600 22,800 〃 274,745 (189,180) $ 85,565
	Number of shares 321,300 2,572,127 837,753 2,667,600	Number of shares - - - -		Number of shares 321,300 2,572,127 837,753 2,667,600

Note: The amount decreased this year due to cash dividends paid from capital surplus and distributed by investees.

Statement 4

Expressed in thousands of NTD

Statement 5

PRESIDENT CHAIN STORE CORP.

STATEMENT OF CHANGES IN INVESTMENTS ACCOUNTED FOR USING EQUITY METHOD FOR THE YEAR ENDED DECEMBER 31, 2019

Name President Chain Store (BVI) Holdings Ltd. President Drugstore Business Corp. President Transnet Corp. Mech-President Corp. President Pharmaceutical Corp. Uni-President Department Store Corp. Uni-President Superior Commissary Corp. Uni-President Cold-Chain Corp. President Information Corp. Q-ware Systems & Services Corp. Wisdom Distribution Service Corp. Books.com. Co., Ltd. Duskin Serve Taiwan Co., Ltd. ICASH Corp. Uni-President Development Corp. Uni-wonder Corp. Retail Support International Corp.	Balance as of January 1, 2019 Number of shares Amount 171,589,586 $ 25,850,474 78,520,000 1,367,838 103,496,399 1,518,487 55,858,815 694,277 22,121,962 756,001 27,999,999 566,145 48,519,890 467,659 23,605,042 645,440 25,714,475 489,299 24,382,921 372,945 10,847,421 506,392 9,999,999 417,935 10,199,999 194,788 50,000,000 356,073 72,000,000 753,904 21,382,674 5,289,524 6,429,999 174,830	Addition	s (Note 1) Amount $ 1,105,919 320,671 419,884 85,898 139,966 185,592 16,716 212,306 64,651 69,542 272,543 189,890 74,373 212,876 31,239 291,031 51,413	Decreases	(Note 2) Amount $ - - - - - - - - - - - - - - - - -	Other Adjustments (Note 3)		Balan	ces as of December	31, 2019 Amount $ 26,348,522 1,432,449 1,634,536 702,347 743,725 543,179 484,058 679,859 493,788 390,054 454,125 398,293 201,317 567,243 764,191 5,164,559 178,147	Market price subsidiaries an	or Equity of d Associates Total price $ 26,348,522 1,432,449 1,615,694 702,347 584,926 543,179 484,058 667,534 384,947 376,902 454,125 398,293 201,317 567,243 764,191 643,066 169,161	Collateral
	Number of shares 171,589,586 78,520,000 103,496,399 55,858,815 22,121,962 27,999,999 48,519,890 23,605,042 25,714,475 24,382,921 10,847,421 9,999,999 10,199,999 50,000,000 72,000,000 21,382,674 6,429,999	Number of shares - - - - - - - - - - - - - 20,000,000 - - -		Number of shares - - - - - - - - - - - - - - - - -		Amount		Number of shares			Unit price $ 153.56 18.24 15.61 12.57 26.44 19.40 9.98 28.28 14.97 15.46 41.86 39.83 19.74 8.10 10.61 30.07 26.31
													None 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃

Statement 5, Page 1

Name PresiCarre Corp. President Fair Development Corp. President International Development Corp. Tung Ho Development Corp. Mister Donut Taiwan Co., Ltd, President Collect Service Corp., etc.	Balance as of January 1, 2019 Number of shares Amount 130,801,027 $ 5,518,380 190,000,000 1,984,125 44,100,000 461,328 19,930,000 114,755 7,500,049 107,879 -485,924 $ 49,094,402	Addition	s (Note 1) Amount $ 353,425 55,281 22,029 - 14,613 216,992 $ 4,406,850	Decreases	(Note 2) Amount $ - - - ( 8,265) - ( 54,932) ($ 63,197)	Other Adjustments (Note 3)		Balan	ces as of December	31, 2019 Amount $ 5,723,198 2,039,406 459,696 106,384 100,768 507,697 $ 50,117,541	Market price subsidiaries an	or Equity of d Associates Total price $ 2,805,799 1,866,872 471,275 106,384 100,768 507,697 $ 42,196,749	Collateral
	Number of shares 130,801,027 190,000,000 44,100,000 19,930,000 7,500,049 -	Number of shares 14,371,333 - - - - -		Number of shares - - - - - -		Amount		Number of shares			Unit price 19.33 9.83 10.69 5.34 13.44 -
													None 〃 〃 〃 〃 〃

• Note 1: The additions this year includes recognized gains on investments of $4,206,850 and increase in investments of $200,000.

• Note 2: The decreases this year includes recognized losses on investments of ($21,540) and liquidation on subsidiary of ($41,657)

Note 3: Other adjustments are cash dividends of ($2,686,166), financial statements translation differences of foreign operations of ($590,079), loss on remeasurement of defined benefit plan of ($49,512), changes in fair value of financial assets at fair value through other comprehensive income of $4,653 and others of $590.

Statement 5, Page 2

PRESIDENT CHAIN STORE CORP. STATEMENT OF CHANGES IN PROPERTY, PLANT AND EQUIPMENT FOR THE YEAR ENDED DECEMBER 31, 2019

Statement 6 Item Cost Land Buildings Operating equipment Leasehold improvements Others Accumulated depreciation Buildings ( Operating equipment ( Leasehold improvements ( Others ( ( Accumulated impairment ( Book value	Balance as of January 1,2019 $ 1,564,223 973,001 13,563,007 8,250,964 ( 12,121 24,363,316 ( 333,094 ) 9,324,473 ) 5,322,522 ) 8,575 ) 14,988,664 ) 260,433 ) $ 9,114,219 (	Effect of adoption of IFRS 16 $ - - - 323,618 ) - 323,618 ) - ( - ( 156,348 ( - ( 156,348 ( - ( $ 167,270 )	Adjusted beginning balance $ 1,564,223 973,001 13,563,007 7,927,346 12,121 24,039,698 $ 333,094 ) ( 9,324,473 ) ( 5,166,174 ) ( 8,575 ) ( 14,832,316 ) ( 260,433 ) $ 8,946,949	Additions $ - - 2,530,739 ( 1,305,220 ( 14,473 $ 3,850,432 ( $ 19,153 ) 1,322,746 ) 817,470 ) 876 ) $ 2,160,245 ) $-	Disposals $ - ( - ( 1,725,958 ) 583,094 ) - $ 2,309,052 ) ( $ - 1,486,367 518,702 - $ 2,005,069 $ 166,200	Reclassifications $ 18,757 ) 4,802 ) - - - $ 23,559 ) $ 1,889 ( - ( - ( - ( $ 1,889 ( $- (	Expressed in thousands of NTD Balance as of December 31, 2019 Collateral Footnote $ 1,545,466 None 968,199 〃 14,367,788 〃 8,649,472 〃 26,594 〃 25, 557,519 350,358 ) 〃 9,160,852 ) 〃 5,464,942 ) 〃 9,451 ) 〃 14, 985,603 ) 94,213 ) $ 10,477,703

Statement 6

PRESIDENT CHAIN STORE CORP.

STATEMENT OF CHANGES IN RIGHT-OF-USE ASSETS

FOR THE YEAR ENDED DECEMBER 31, 2019

Statement 7

Expressed in thousands of NTD

Item Buildings Costs Accumulated depreciation ( Book value	Balance as of January 1, 2019 $ 27,449,550 156,348 ) ( $ 27,293,202	Additions $ 24,947,745 ( 6,826,103 ) $ 18,121,642 (	Disposals Balance as of December 31, 2019 $ 1,608,000 ) $ 50,789,295 566,648 ( 6,415,803 ) $ 1,041,352 )$ 44,373,492	Footnote

Statement 7

PRESIDENT CHAIN STORE CORP.

STATEMENT OF SHORT-TERM BORROWINGS

DECEMBER 31, 2019

Statement 8 Expressed in thousands of NTD

Balance as of

		Balance as of
Type of borrowings	Explanation HSBC Bank (Taiwan) Limited Sumitomo Mitsui Banking Corp. MUFG Bank, Ltd. CTBC Commercial Bank Co., Ltd.	December 31, 2019 $ 1,900,000 1,410,000 690,000 1,000,000 $ 5,000,000	Contract period 2019/12/3~2020/3/6 2019/12/3~2020/3/6 2019/12/3~2020/1/6 2019/12/3~2020/3/6	Interest rate range 0.65% 0.67% 0.65% 0.65%	Collateral None 〃 〃 〃	Footnote
Credit loan 〃 〃 〃

Statement 8

PRESIDENT CHAIN STORE CORP. STATEMENT OF LEASE LIABILITIES DECEMBER 31, 2019

Statement 9 Expressed in thousands of NTD

Item Buildings 〃	Summary Current Non-Current	Lease period 2007/1/1~2039/1/14 2007/1/1~2039/1/14	Discount rate range 0.87%~1.03% 〃		Balance as of December 31, 2019 $ 6,950,425 37,780,192 $ 44,730,617	Footnote

Statement 9

PRESIDENT CHAIN STORE CORP. STATEMENT OF OPERATING REVENUE FOR THE YEAR ENDED DECEMBER 31, 2019

Statement 10 Item Revenue from contracts with customers	Amount $ 158,031,567	Expressed in thousands of NTD Footnote Revenue are from sales of general merchandise such as food, cans, beverages and daily commodities, etc., and commission revenue from collections, etc.

Statement 10

PRESIDENT CHAIN STORE CORP. STATEMENT OF OPERATING COSTS

FOR THE YEAR ENDED DECEMBER 31, 2019

Statement 11

Expressed in thousands of NTD

Item Inventory at beginning of the year Inventory purchased Compensation for damaged merchandise Promotion income Inventory at end of the year Others Operating costs	Amount $ 8,020,368 101,848,142 ( 341,136 ) ( 597,012 ) ( 8,036,366 ) 2,960,136 $ 103,854,132

Statement 11

PRESIDENT CHAIN STORE CORP. STATEMENT OF SELLING EXPENSES

FOR THE YEAR ENDED DECEMBER 31, 2019

Expressed in thousands of NTD

Statement 12 Expressed i Item Incentive bonuses for franchisees Wages and salaries Utilities expense Depreciation Other expenses	n thousands of NTD Amount $ 21,822,920 3,645,360 2,282,584 8,986,348 5,925,054 $ 42,662,266

Statement 12

PRESIDENT CHAIN STORE CORP.

STATEMENT OF EMPLOYEE BENEFIT, DEPRECIATION AND AMORTIZATION EXPENSES BY FUNCTION FOR THE YEARS ENDED DECEMBER 31, 2019 AND 2018

Statement 13 Expressed in thousands of NTD

Statement 13					Expressed in thousands of NTD	Expressed in thousands of NTD
By function Bynature		2019			2018
	Classified as operating costs	Classified as operating expenses	Total	Classified as operating costs	Classified as operating expenses	Total
Employee benefit expense
Wages and salaries	$ -	$ 5,870,712	$ 5,870,712	$ -	$ 5,831,681	$ 5,831,681
Labor and health insurance fees	-	477,863	477,863	-	461,590	461,590
Pension costs	-	268,017	268,017	-	274,112	274,112
Directors’ remuneration	-	199,553	199,553	-	204,485	204,485
Other employee benefit expenses	-	346,301	346,301	-	359,387	359,387
Depreciation	-	8,986,348	8,986,348	-	2,096,300	2,096,300
Amortization	-	55,700	55,700	-	92,846	92,846

Note1: As of December 31, 2019 and 2018, the Company had 8,430 and 8,106 employees (including part-timers), including 10 directors, respectively. Note2: For the years ended December 31, 2019 and 2018, the Company’s average employee benefit expense was $827 and $856, respectively; while average wages and salaries was $697 and $720, respectively. For the year ended December 31, 2019, the Company’s change in average wages and salaries was (3.19%).

Statement 13