PCSC — Audit Report / Information 2020

Dec 1, 2020

PRESIDENT CHAIN STORE CORP. AND SUBSIDIARIES CONSOLIDATED FINANCIAL STATEMENTS AND INDEPENDENT AUDITORS’ REPORT

DECEMBER 31, 2020 AND 2019

---

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.

~1~

PRESIDENT CHAIN STORE CORP. AND SUBSIDIARIES

CONSOLIDATED FINANCIAL STATEMENTS AND

INDEPENDENT AUDITORS’ REPORT

DECEMBER 31, 2020 AND 2019

CONTENTS

Items Page/Reference

1.	Cover	1
2.	Contents	2 ~ 3
3.	Declaration of Consolidated Financial Statements of Affiliated Enterprises	4
4.	Independent auditors’ report	5 ~ 10
5.	Consolidated balance sheets	11 ~ 12
6.	Consolidated statements of comprehensive income	13 ~ 14
7.	Consolidated statements of changes in equity	15
8.	Consolidated statements of cash flows	16 ~ 17
9.	Notes to the consolidated financial statements	18 ~ 73
	(1) History and organisation	18
	(2) Date of authorisation for issuance of the consolidated	18
	financial statements and procedures for authorisation
	(3) Application of new standards, amendments and interpretations	18 ~ 19
	(4) Summary of significant accounting policies	19 ~ 31
	(5) Critical accounting judgements, estimates and key sources of	31
	assumption uncertainty
	(6) Details of significant accounts	32 ~ 56

~2~

Items Page/Reference

(7)	Related party transactions	57 ~ 60
(8)	Pledged assets	60
(9)	Significant contingent liabilities and unrecognized contract	60
	commitments
(10)	Significant disaster loss	60
(11)	Significant events after the balance sheet date	60
(12)	Others	60 ~ 68
(13)	Supplementary disclosures	68 ~ 69
(14)	Segment information	70 ~ 73

~3~

PRESIDENT CHAIN STORE CORP. AND SUBSIDIARIES

Declaration of Consolidated Financial Statements of Affiliated Enterprises

For the year ended December 31, 2020, pursuant to “Criteria Governing Preparation of Affiliation Reports, Consolidated Business Reports and Consolidated Financial Statements of Affiliated Enterprises,” the company that is required to be included in the consolidated financial statements of affiliates, is the same as the company required to be included in the consolidated financial statements under International Financial Reporting Standards 10. And if relevant information that should be disclosed in the consolidated financial statements of affiliates has all been disclosed in the consolidated financial statements of parent and subsidiary companies, it shall not be required to prepare consolidated financial statements of affiliates.

Hereby declare,

PRESIDENT CHAIN STORE CORP. February 26, 2021

~4~

INDEPENDENT AUDITORS’ REPORT

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

Opinion

We have audited the accompanying consolidated balance sheets of President Chain Store Corp. and its subsidiaries (the “Group”) as of December 31, 2020 and 2019, and the related consolidated statements of comprehensive income, of changes in equity, and of cash flows for the years then ended, and the notes to the consolidated financial statements, including a summary of significant accounting policies. In our opinion, based on our audits and the reports of other auditors please refer to the Other matter section , the accompanying consolidated financial statements present fairly, in all material respects, the consolidated financial position of President Chain Store Corp. and its subsidiaries as of December 31, 2020 and 2019, and its consolidated financial performance and its consolidated cash flows for the years then ended, in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and the International Financial Reporting Standards, International Accounting Standards, IFRIC Interpretations, and SIC Interpretations as endorsed by the Financial Supervisory Commission.

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. Our responsibilities under those standards are further described in the Auditors’ responsibilities for the audit of the consolidated financial statements section of our report. We are independent of the Group in accordance with the Norm of Professional Ethics for Certified Public Accountants of the Republic of China, and we have fulfilled our other ethical responsibilities in accordance with these requirements. Based on our audits and the reports of other auditors, 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 Group’s 2020 consolidated financial statements. These matters were addressed in the context of our audit of the consolidated financial statements as a whole, and in forming our opinion thereon, we do not provide a separate opinion on these matters.

Key audit matters for the Group’s 2020 consolidated financial statements are stated as follows:

~5~

Completeness and accuracy of retail sales revenue

Description

Please refer to Notes 4(25) and 6(25) to the consolidated financial statements for the accounting policy and the details of accounts 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 their 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.

~6~

Cost-to-retail ratio of retail inventory method

Description

Please refer to Notes 4(12) and 6(4) to the consolidated financial statements for the accounting policy and the details of accounts 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 the retail value of goods purchased (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 – Reference to the audits of other auditors

We did not audit the financial statements of certain consolidated subsidiaries which were audited by other auditors. Therefore, our opinion expressed herein , insofar as it relates to the amounts included in respect of these subsidiaries and the information on investees disclosed in Note 13, is based solely on the reports of the other auditors. Total assets of these subsidiaries amounted to NT$17,535,932 thousand and NT$17,667,481 thousand, representing 8.4% and 9.1% of the consolidated total assets as at December 31, 2020 and 2019, respectively, and the operating revenue amounted to NT$26,619,815 thousand and NT$32,407,436 thousand, representing 10.3% and 12.7% of the consolidated total operating revenue for the years then ended, respectively.

~7~

Other matters – Parent company - only financial reports

We have audited and expressed an unmodified opinion with an explanatory paragraph on the parent company only financial statements of President Chain Store Corp. as of and for the years ended December 31, 2020 and 2019.

Responsibilities of management and those charged with governance for the consolidated financial statements

Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and the International Financial Reporting Standards, International Accounting Standards, IFRIC Interpretations, and SIC Interpretations as endorsed by the Financial Supervisory Commission, and for such internal controls as management determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the consolidated financial statements, management is responsible for assessing the Group’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 Group 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 Group.

Auditors’ responsibilities for the audit of the consolidated financial statements

Our objectives are to obtain reasonable assurance about whether the consolidated 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 the general accepted auditing standard in the Republic of China 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 consolidated financial statements.

~8~

As part of an audit in accordance with the general accepted auditing standard in the Republic of China, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

1. Identify and assess the risks of material misstatement in the consolidated 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 Group.

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 Group’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 consolidated 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 Group to cease to continue as a going concern.

5.

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

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

~9~

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.

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 consolidated financial statements for the year ended December 31, 2020 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 February 26, 2021

---

The accompanying consolidated 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 consolidated financial statements and independent auditors’ report 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.

~10~

PRESIDENT CHAIN STORE CORP. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS DECEMBER 31, 2020 AND 2019

(Expressed in thousands of New Taiwan dollars)

Assets	Notes 6(1) 6(2) 6(3) and 7 6(32) 6(4) 6(2) 6(5) 6(6) 6(7)(30) and 8 6(8) and 7 6(10) and 8 6(11) 6(32) 6(12) and 8	December 31, 2020 AMOUNT % $ 46,562,907 22 2,105,496 1 6,215,272 3 1,950,481 1 1,206 - 16,636,055 8 1,177,895 1 3,487,082 2 78,136,394 38 85,523 - 959,827 - 8,921,641 4 28,050,374 13 74,963,001 36 2,863,146 1 9,958,198 5 1,988,030 1 3,567,800 2 131,357,540 62 $ 209,493,934 100	December 31, 2019	December 31, 2019
		AMOUNT $ 46,562,907 2,105,496 6,215,272 1,950,481 1,206 16,636,055 1,177,895 3,487,082 78,136,394 85,523 959,827 8,921,641 28,050,374 74,963,001 2,863,146 9,958,198 1,988,030 3,567,800 131,357,540 $ 209,493,934	AMOUNT $ 45,445,395 1,696,300 5,808,480 1,460,354 95 15,659,112 1,195,719 2,968,350 74,233,805 85,565 807,115 9,255,939 26,018,322 67,489,612 1,506,798 10,171,442 1,860,217 3,699,819 120,894,829 $ 195,128,634	%
Current assets 1100 Cash and cash equivalents 1110 Financial assets at fair value through profit or loss - current 1170 Accounts receivable, net 1200 Other receivables 1220 Current income tax assets 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				23 1 3 1 - 8 1 1
				38
				- - 5 13 35 1 5 1 2
				62
				100

(Continued)

~11~

PRESIDENT CHAIN STORE CORP. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS DECEMBER 31, 2020 AND 2019

(Expressed in thousands of New Taiwan dollars)

Liabilities and Equity	December 31, 2020 December 31, 2019 Notes AMOUNT % AMOUNT % 6(14) and 8 $ 4,739,411 2 $ 6,014,658 3 6(15) 3,399,147 2 - - 6(25) 5,234,797 2 3,443,383 2 7 1,079,496 1 1,214,702 1 22,255,284 11 20,897,055 11 7 2,801,552 1 2,690,640 1 6(16) 25,093,782 12 26,596,505 14 6(32) 1,647,936 1 1,410,428 1 7 12,859,557 6 11,932,751 6 6(17) 3,588,870 2 3,149,591 1 82,699,832 40 77,349,713 40 6(25) 563,834 - 448,248 - 6(18) and 8 1,028,553 1 508,112 - 6(32) 5,320,392 3 5,580,529 3 7 65,277,459 31 56,894,287 29 6(19) 4,969,892 2 4,751,607 3 6(20) 4,656,273 2 4,368,820 2 81,816,403 39 72,551,603 37 164,516,235 79 149,901,316 77 6(21) 10,396,223 5 10,396,223 5 6(22) 47,628 - 46,884 - 6(23) 14,369,228 7 13,314,081 7 380,187 - - - 12,159,546 6 12,845,880 7 6(24) ( 1,332,621) ( 1) ( 380,187) - 36,020,191 17 36,222,881 19 8,957,508 4 9,004,437 4 44,977,699 21 45,227,318 23 $ 209,493,934 100 $ 195,128,634 100	December 31, 2019	December 31, 2019
			%
Current Liabilities 2100 Short-term borrowings 2110 Short-term notes and bills payable 2130 Contract liabilities - current 2150 Notes payable 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 2540 Long-term borrowings 2570 Deferred income tax liabilities 2580 Lease liabilities-non-current 2640 Net defined benefit liability - non-current 2670 Other non-current liabilities, others 25XX Total non-current liabilities 2XXX Total Liabilities Equity attributable to owners of the parent 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 31XX Equity attributable to owners of the parent 36XX Non-controlling interest 3XXX Total equity 3X2X Total liabilities and equity			3 - 2 1 11 1 14 1 6 1
			40
			- - 3 29 3 2
			37
			77
			5 - 7 - 7 -
			19
			4
			23
			100

The accompanying notes are an integral part of these consolidated financial statements.

Chairman: Lo, Chih-Hsien President: Huang, Jui-Tien Accounting Manager: Lee, Johnyih

~12~

PRESIDENT CHAIN STORE CORP. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Expressed in thousands of New Taiwan dollars)

Items

For theyears ended December31 2020 2019 Notes AMOUNT % AMOUNT % 6(25) and 7 $ 258,494,907 100 $ 256,058,888 100 6(4)(26) and 7 ( 170,414,397) ( 66) ( 168,210,468) ( 66 ) 88,080,510 34 87,848,420 34 6(26)(27) ( 66,110,629) ( 25) ( 65,434,377) ( 25 ) ( 9,763,392) ( 4) ( 9,355,509) ( 4 ) 12(2) ( 61,516) - ( 8,640) - ( 75,935,537) ( 29) ( 74,798,526) ( 29 ) 12,144,973 5 13,049,894 5 6(28) 505,639 - 793,898 - 6(29) 2,044,025 - 2,084,434 1 6(30) 13,798 - ( 29,037) - 6(31) ( 1,321,386) - ( 1,216,000) - 6(6) 423,407 - 480,998 - 1,665,483 - 2,114,293 1 13,810,456 5 15,164,187 6 6(32) ( 2,470,198) ( 1) ( 3,052,078) ( 1 ) 11,340,258 4 12,112,109 5 $ 11,340,258 4 $ 12,112,109 5

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 7100 Interest income 7010 Other income 7020 Other gains and losses 7050 Finance costs 7060 Share of profit of 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 8000 Profit for the year from continuing operations 8200 Profit for the year

(Continued)

~13~

PRESIDENT CHAIN STORE CORP. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Expressed in thousands of New Taiwan dollars)

Items	Years ended December 31 2020 2019 Notes AMOUNT % AMOUNT 6(19) ($ 212,824) - ($ 10,060) 6(5) 152,712 - 162,501 6(24) ( 8,377) - ( 1,965) 6(32) 50,250 - 867 ( 18,239) - 151,343 ( 1,087,229) - ( 505,816) 6(5) - - ( 783) 6(24) ( 11,042) - ( 4,436) ( 1,098,271) - ( 511,035) ($ 1,116,510) - ($ 359,692) $ 10,223,748 4 $ 11,752,417 $ 10,238,162 4 $ 10,542,860 1,102,096 - 1,569,249 $ 11,340,258 4 $ 12,112,109 $ 9,151,963 4 $ 10,116,764 1,071,785 - 1,635,653 $ 10,223,748 4 $ 11,752,417 6(33) $ 9.85 $ 6(33) $ 9.83 $	Years ended December 31	Years ended December 31	Years ended December 31
		2020	2019 % AMOUNT - ($ 10,060) - 162,501 - ( 1,965) - 867 - 151,343 - ( 505,816) - ( 783) - ( 4,436) - ( 511,035) - ($ 359,692) 4 $ 11,752,417 4 $ 10,542,860 - 1,569,249 4 $ 12,112,109 4 $ 10,116,764 - 1,635,653 4 $ 11,752,417 9.85 $ 9.83 $	2019
					%
Other comprehensive income (loss) 8311 Loss on remeasurements of defined benefit plans 8316 Unrealized gain on valuation of equity instruments at fair value through other comprehensive income 8320 Share of other comprehensive loss of 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 the components of other comprehensive income that will not be reclassified to profit or loss 8310 Components of other comprehensive (loss) income that will not be reclassified to profit or loss 8361 Financial statements translation differences of foreign operations 8367 Unrealized loss on valuation of bond instruments at fair value through other comprehensive income 8370 Share of other comprehensive loss of associates and joint ventures accounted for using equity method that will be reclassified to profit or loss 8360 Components of other comprehensive loss that will be reclassified to profit or loss 8300 Total other comprehensive loss for the year 8500 Total comprehensive income for the year Profit attributable to: 8610 Owners of the parent 8620 Non-controlling interests Comprehensive income attributable to: 8710 Owners of the parent 8720 Non-controlling interests 9750 Basic earnings per share 9850 Diluted earnings per share					- - - -
					-
					- - -
					-
					-
					5
					4 1
					5
					4 1
					5
					10.14
		$		$	10.12

The accompanying notes are an integral part of these consolidated financial statements.

Chairman: Lo, Chih-Hsien President: Huang, Jui-Tien Accounting Manager: Lee, Johnyih

~14~

PRESIDENT CHAIN STORE CORP. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

(Expressed in thousands of New Taiwan dollars)

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 Non-controling interest Overdue unclaimed cash dividend transferred to capital surplus Adjustment of capital surplus due to associates’ adjustment of capital surplus Disposal of financial instruments designated at fair value through other comprehensive income of associates Balance at December 31, 2019 For the year ended December 31, 2020 Balance at January 1, 2020 Profit for the year Other comprehensive (loss) income for the year Total comprehensive income (loss) for the period Distribution of 2019 earnings Legal reserve Special reserve Cash dividends Non-controling interest Overdue unclaimed cash dividend transferred to capital surplus Disposal of financial instruments designated at fair value through other comprehensive income of associates Balance at December 31, 2020	Notes						Equity attributable to	Equity attributable to	Equity attributable to	o	wners of the parent	wners of the parent	wners of the parent	wners of the parent				Non-controlling interest		Total equity
			Share capital - common stock		Capital surplus				Retained earnings			Other equity interest				Total
							Legal reserve		Special reserve		Unappropriated retained earnings	Financial statements translation differences of foreign operations		Unrealized gain or loss on valuation of financial assets at fair value through other comprehensive Income
	6(24) 6(23) 6(24) 6(23)		$ 10,396,223 - - - - - - - - - - $ 10,396,223 $ 10,396,223 - - - - - - - - - $ 10,396,223		$ 45,059 - - - - - - - 1,235 590 - $ 46,884 $ 46,884 - - - - - - - 744 - $ 47,628		$ 12,293,442 - - - 1,020,639 - - - - - - $ 13,314,081 $ 13,314,081 - - - 1,055,147 - - - - - $ 14,369,228	$ 398,859 - - - - ( 398,859 ) - - - - - $ - $ - - - - - 380,187 - - - - $ 380,187		$ 12,064,862 10,542,860 7,696 10,550,556 ( 1,020,639 ) 398,859 ( 9,148,676 ) - - - 918 $ 12,845,880 $ 12,845,880 10,238,162 ( 133,765 ) 10,104,397 ( 1,055,147 ) ( 380,187 ) ( 9,356,600 ) - - 1,203 $ 12,159,546		($ 279,829 ) - ( 590,079 ) ( 590,079 ) - - - - - - - ($ 869,908 ) ($ 869,908 ) - ( 1,103,360 ) ( 1,103,360 ) - - - - - - ($ 1,973,268 )		$ 333,434 - 156,287 156,287 - - - - - - - $ 489,721 $ 489,721 - 150,926 150,926 - - - - - - $ 640,647	$ 35,252,050 10,542,860 ( 426,096 ) 10,116,764 - - ( 9,148,676 ) - 1,235 590 918 $ 36,222,881 $ 36,222,881 10,238,162 ( 1,086,199 ) 9,151,963 - - ( 9,356,600 ) - 744 1,203 $ 36,020,191		$ 8,772,977 1,569,249 66,404 1,635,653 - - - ( 1,404,193 ) - - - $ 9,004,437 $ 9,004,437 1,102,096 ( 30,311 ) 1,071,785 - - - ( 1,118,714 ) - - $ 8,957,508		$ 44,025,027 12,112,109 ( 359,692 ) 11,752,417 - - ( 9,148,676 ) ( 1,404,193 ) 1,235 590 918 $ 45,227,318 $ 45,227,318 11,340,258 ( 1,116,510 ) 10,223,748 - - ( 9,356,600 ) ( 1,118,714 ) 744 1,203 $ 44,977,699

The accompanying notes are an integral part of these consolidated financial statements.

President: Huang, Jui-Tien

Accounting Manager: Lee, Johnyih

Chairman: Lo, Chih-Hsien

~15~

PRESIDENT CHAIN STORE CORP. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Expressed in thousands of New Taiwan dollars)

CASH FLOWS FROM OPERATING ACTIVITIES Consolidated 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 Gain on valuation of financial assets at fair value through profit or loss Expected credit losses Depreciation expense Amortization expense Depreciation on investment property Finance costs Share of profit of associates and joint ventures accounted for using equity method (Gain) loss on disposal of property, plant and equipment, net Gain on disposal of investment property, net Gain from lease modification Interest income Dividend income Other income recognized from rent concessions Reversal of impairment loss on property, plant and equipment Changes in assets/liabilities relating to operating activities Net changes in assets relating to operating activities Financial assets at fair value through profit or loss Accounts receivable Other receivables Inventories Prepayments Other current assets Net changes in liabilities relating to operating activities Contract liabilities - current Accounts payable Notes payable Other payables Advance receipts Contract liabilities - non-current Net defined benefit liabilities Cash generated from operations Interest received Income tax paid Interest paid Dividend received Net cash provided by operating activities

For theyears ended December31 Notes 2020 2019 $ 13,810,456 $ 15,164,187 6(2) ( 9,971 ) ( 10,108 ) 12(2) 61,516 8,640 6(7)(8)(26) 19,509,685 18,177,202 6(26) 562,597 574,709 6(10) 16,651 17,031 6(31) 1,321,386 1,216,000 6(6) ( 423,407 ) ( 480,998 ) 6(30) ( 20,007 ) 11,428 ( 2,682 ) - 6(30) ( 79,685 ) ( 58,910 ) 6(28) ( 505,639 ) ( 793,898 ) 6(29) ( 61,961 ) ( 49,542 ) 6(8) ( 145,297 ) - 6(7) ( 472 ) ( 13,618 ) ( 399,225 ) ( 841,967 ) ( 468,308 ) ( 552,547 ) ( 500,212 ) 63,609 ( 976,943 ) ( 537,455 ) 17,824 ( 125,934 ) ( 518,732 ) 36,544 1,791,414 600,194 1,469,141 439,012 ( 135,206 ) ( 651,908 ) ( 1,886,144 ) ( 60,331 ) 360,201 3,025 115,586 213,827 5,461 8,998 32,908,027 32,357,190 515,724 805,390 ( 2,571,501 ) ( 3,380,452 ) ( 1,321,410 ) ( 1,216,183 ) 801,451 270,286 30,332,291 28,836,231

(Continued)

~16~

PRESIDENT CHAIN STORE CORP. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Expressed in thousands of New Taiwan dollars)

CASH FLOWS FROM INVESTING ACTIVITIES Acquisition of property, plant and equipment Proceeds from disposal of property, plant and equipment Proceeds from disposal of investment property Return of capital from financial assets at fair value through profit or loss Return of capital from financial assets at fair value through other comprehensive income Guarantee deposits paid Acquisition of intangible assets Decrease (increase) in other non-current assets Net cash used in investing activities CASH FLOWS FROM FINANCING ACTIVITIES Decrease in short-term borrowings Increase in short-term notes and bills payable Increase in long-term borrowings Repayment of long-term borrowings Payments of lease liabilities Guarantee deposits received Decrease in other non-current liabilities Change in non-controlling interests Payment of cash dividends - the company Payment of cash dividends - subsidiaries Net cash used in financing activities Effect of foreign exchange rate changes on cash and cash equivalents Increase (decrease) in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year

For theyears ended December31 Notes 2020 2019 6(34) ($ 9,022,473 ) ($ 7,249,215 ) 305,182 245,532 6(10) 15,423 - 42 118 - 200,000 ( 194,903 ) ( 144,974 ) 6(11) ( 237,485 ) ( 209,602 ) 220,557 ( 533,389 ) ( 8,913,657 ) ( 7,691,530 ) 6(35) ( 1,275,247 ) ( 1,223,127 ) 6(35) 3,399,147 - 6(35) 865,130 165,030 6(35) ( 275,551 ) ( 624,174 ) 6(8)(35) ( 11,662,395 ) ( 11,329,825 ) 6(35) 224,169 147,220 6(35) ( 4,415 ) ( 222,130 ) ( 2,012 ) ( 94,763 ) 6(23)(35) ( 9,356,600 ) ( 9,148,676 ) 6(35) ( 1,116,702 ) ( 1,309,430 ) ( 19,204,476 ) ( 23,639,875 ) ( 1,096,646 ) ( 590,079 ) 1,117,512 ( 3,085,253 ) 45,445,395 48,530,648 $ 46,562,907 $ 45,445,395

The accompanying notes are an integral part of these consolidated financial statements.

Chairman: Lo, Chih-Hsien President : Huang, Jui-Tien Accounting Manager: Lee, Johnyih

~17~

PRESIDENT CHAIN STORE CORP. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

DECEMBER 31, 2020 AND 2019

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

1. HISTORY AND ORGANIZATION

• (1) President Chain Store Corporation (the “Company”) was established on June 10, 1987. The main businesses of the Company and its subsidiaries (collectively referred herein as the “Group”) are managing convenience stores, restaurants, drugstores, department stores, supermarkets and online shopping stores. Business areas include Taiwan, Mainland China, Philippines and Japan. The common shares of the Company have been listed on the Taiwan Stock Exchange since August 22, 1997. Details of the Group’s main operating activities and segment information are provided in Notes 4 and 14.

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

• DATE OF AUTHORIZATION FOR ISSUANCE OF THE CONSOLIDATED FINANCIAL

STATEMENTS AND PROCEDURES FOR AUTHORIZATION

These consolidated financial statements were authorized for issuance by the Board of Directors on February 26, 2021.

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 2020 are as follows:

New Standards,Interpretations andAmendments	Effective date by International Accounting StandardsBoard
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 IFRS7 ,‘Interest rate benchmark reform’ Amendment to IFRS 16, ‘Covid-19-related rent concessions’ Note：Earlier application from January 1, 2020 is allowed by FSC.	January 1, 2020 January 1, 2020 January 1, 2020 June 1, 2020 (Note)

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

Amendment to IFRS 16, ‘Covid-19-related rent concessions’

This amendment provides a practical expedient for lessees from assessing whether a rent concession related to COVID-19, and that meets all of the following conditions, is a lease modification:

• (A) Changes in lease payments result in the revised consideration for the lease that is substantially the same as, or less than, the consideration for the lease immediately preceding the change;

• (B) Any reduction in lease payments affects only payments originally due on or before June 30, 2021; and

• (C) There is no substantive change to other terms and conditions of the lease.

~18~

(2) Effect of new issuances of or amendments to IFRSs as endorsed by the FSC but not yet adopted by the Group

New standards, interpretations and amendments endorsed by the FSC effective from 2021 are as follows:

follows:
	Effective date by
	International Accounting
New Standards,Interpretations and Amendments	Standards Board
Amendments to IFRS 4, ‘Extension of the temporary exemption from	January 1, 2021
applying IFRS 9’
Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16,	January 1, 2021
‘Interest Rate Benchmark Reform— Phase 2’

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

(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:

==> picture [484 x 48] intentionally omitted <==

----- Start of picture text -----

Effective date by
International Accounting
New Standards, Interpretations and Amendments Standards Board
----- End of picture text -----

as endorsed by the FSC are as follows: New Standards, Interpretations and Amendments	Effective date by International Accounting StandardsBoard
Amendments to IFRS 3, ‘Reference to the conceptual framework’	January 1, 2022
Amendments to IFRS 10 and IAS 28, ‘Sale or contribution of assets between an investor and its associate or joint venture’	To be determined by International Accounting Standards Board
IFRS 17, ‘Insurance contracts’	January 1, 2023
Amendments to IFRS 17, 'Insurance contracts'	January 1, 2023
Amendments to IAS 1, ‘Classification of liabilities as current or non-	January 1, 2023
current’
Amendments to IAS 1, ‘Disclosure of accounting policies’	January 1, 2023
Amendments to IAS 8, ‘Definition of accounting estimates’	January 1, 2023
Amendments to IAS 16, ‘Property, plant and equipment:proceeds	January 1, 2022
before intended use’
Amendments to IAS 37, ‘Onerous contracts—cost of fulfilling a contract’	January 1, 2022
Annual improvements to IFRS Standards 2018–2020	January 1, 2022

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

4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

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

(1) Compliance statement

The consolidated financial statements of the Group have been prepared in accordance with the “Regulations Governing the Preparation of Financial Reports by Securities Issuers”, International Financial Reporting Standards, International Accounting Standards, IFRIC Interpretations and SIC

~19~

Interpretations as endorsed by the FSC (collectively referred herein as the “IFRSs”).

(2) Basis of preparation

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

• (a) Financial assets 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 Group’s accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the consolidated financial statements are disclosed in Note 5.

(3) Basis of consolidation

• A. The basis for preparation of consolidated financial statements is as follows:

• (a) All subsidiaries are included in the Group’s consolidated financial statements. Subsidiaries are all entities controlled by the Group. The Group controls an entity when the Group 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. Consolidation of subsidiaries begins from the date the Group obtains control of the subsidiaries and ceases when the Group loses control of the subsidiaries.

• (b) Inter-company transactions, balances and unrealized gains or losses on transactions between companies within the Group are eliminated. Accounting policies of subsidiaries have been adjusted where necessary to ensure consistency with the policies adopted by the Group.

• (c) Profit or loss and each component of other comprehensive income are attributed to the owners of the parent and to the non-controlling interests. Total comprehensive income is attributed to the owners of the parent and to the non-controlling interests even if this results in the noncontrolling interests having a deficit balance.

• (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 owners. 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 Group loses control of a subsidiary, the Group 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 Group 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.

~20~

B. The subsidiaries included in the consolidated financial statements are as follows:

B. The subsidiaries included in the consolidated financial statements are as follows:
Name of investor Name of subsidiary Main business activities December 31,2020 December 31,2019 The Company President Chain Store (BVI) Holdings Ltd. Professional investment 100.00 100.00 The Company PCSC (China) Drugstore Limited Professional investment 92.20 92.20 The Company Wisdom Distribution Service Corp. Logistics and storage of publication and e-commerce 100.00 100.00 The Company President Drugstore Business Corp. Sales of cosmetics, medicine and daily items 100.00 100.00 The Company Ren-Hui Investment Corp. Professional investment 100.00 100.00 The Company Capital Marketing Consultant Corp. Enterprise management consultancy 100.00 100.00 The Company President Lanyang Art Corporation Art and cultural exhibition 100.00 100.00 The Company Cold Stone Creamery Taiwan Ltd. Sales of ice cream 100.00 100.00 The Company President Chain Store Corporation Insurance Brokers Co., Ltd. Insurance brokers 100.00 100.00 The Company 21 Century Co., Ltd. Operation of chain restaurants 100.00 100.00 The Company President Being Corp. Sports and entertainment business 100.00 100.00 The Company Uni-President Oven Bakery Corp. Bread and pastry retailer 100.00 100.00 The Company President Chain Store Tokyo Marketing Corp. Trade and enterprise management consultancy 100.00 100.00 The Company ICASH Corp. Electronic ticketing and electronic payment 100.00 100.00 The Company Uni-President Superior Commissary Corp. Fresh food manufacture 90.00 90.00 The Company Q-ware Systems & Services Corp. Information software services 86.76 86.76 The Company President Information Corp. Enterprise information management and consultancy 86.00 86.00 The Company Mech-President Corp. Gas station, installment and maintenance of elevators 80.87 80.87 The Company President Pharmaceutical Corp. Sales of various health care products, cosmetics, and pharmaceuticals 73.74 73.74 The Company President Collect Service Corp. Collection agent 70.00 70.00 The Company Uni-President Department Store Corp. Department stores 70.00 70.00 The Company President Transnet Corp. Delivery service 70.00 70.00 The Company Uni-President Cold-Chain Corp. Low-temperature logistics and warehousing 60.00 60.00 The Company Uni-Wonder Corp. Coffee chain store 60.00 60.00 The Company Duskin Serve Taiwan Co., Ltd. Cleaning instruments leasing and selling 51.00 51.00 The Company Books.com. Co., Ltd. Retail business without shop 50.03 50.03 The Company Retail Support International Corp. Room-temperature logistics and warehousing 25.00 25.00 President Chain Store (BVI) Holdings Ltd. President Chain Store (Labuan) Holdings Ltd. Professional investment 100.00 100.00 President Chain Store (BVI) Holdings Ltd. President Chain Store (Hong Kong) Holdings Limited Professional investment 100.00 100.00 PCSC (China) Drugstore Limited President Cosmed Chain Store (Shen Zhen) Co., Ltd. Wholesale of merchandise 100.00 100.00 Wisdom Distribution Service Corp. President Logistics International Corp. Trucking 20.00 20.00 Uni-President Cold-Chain Corp. President Logistics International Corp. Trucking 25.00 25.00 Uni-President Cold-Chain Corp. Uni-President Logistics (BVI) Holdings Limited Professional investment 100.00 100.00 Retail Support International Corp. Retail Support Taiwan Corp. Room-temperature logistics and warehousing 51.00 51.00 Retail Support International Corp. President Logistics International Corp. Trucking 49.00 49.00 Retail Support Taiwan Corp. President Logistics International Corp. Trucking 6.00 6.00 President Logistics International Corp. Chieh Shun Logistics International Corp. Trucking 100.00 100.00 Books.com. Co., Ltd. Books.com. (BVI) Ltd. Professional investment - 100.00 Books.com. (BVI) Ltd. Beijing Bokelai Customer Co. Enterprise information consulting, network technology development and services - 100.00 Mech-President Corp. Tong Ching Corporation Gas station 60.00 60.00 President Pharmaceutical Corp. President Pharmaceutical (Hong Kong) Holdings Limited Sales of various health care products, cosmetics, and pharmaceuticals 100.00 100.00 Ownership (%)	Description
	(a) (b) (c)

~21~

Name of investor Name of subsidiary Main business activities President Pharmaceutical (Hong Kong) Holdings Limited President (Shanghai) Health Product Trading Company Ltd. Sales of various health care products, cosmetics, and pharmaceuticals President Chain Store (Labuan) Holdings Ltd. Philippine Seven Corporation Convenience store Philippine Seven Corporation Convenience Distribution Inc. Logistics and warehousing Philippine Seven Corporation Store Sites Holding, Inc. Professional investment President Chain Store (Hong Kong) Holdings Limited PCSC (China) Drugstore Limited Professional investment President Chain Store (Hong Kong) Holdings Limited President Chain Store (Shanghai) Ltd. Convenience store President Chain Store (Hong Kong) Holdings Limited Shanghai President Logistics Co., Ltd. Logistics and warehousing President Chain Store (Hong Kong) Holdings Limited Shan Dong President Yinzuo Commercial Limited Supermarkets President Chain Store (Hong Kong) Holdings Limited Shanghai Cold Stone Ice Cream Corporation Ltd. Sales of ice cream President Chain Store (Hong Kong) Holdings Limited President Chain Store (Taizhou) Ltd. Logistics and warehousing President Chain Store (Hong Kong) Holdings Limited President Chain Store (Zhejiang) Ltd. Convenience store President Chain Store (Hong Kong) Holdings Limited Beauty Wonder (Zhejiang) Trading Co.,Ltd. Sales of cosmetics and medicine Shanghai President Logistics Co., Ltd. Zhejiang Uni-Champion Logistics Development Co., Ltd. Logistics and warehousing Shanghai President Logistics Co., Ltd. President Logistic ShanDong Co., Ltd. Logistics and warehousing Uni-President Logistics (BVI) Holdings Limited Zhejiang Uni-Champion Logistics Development Co., Ltd. Logistics and warehousing Ren-Hui Investment Corp. Ren Hui Holding Co., Ltd. Professional investment Ren-Hui Holdings Co., Ltd. Shan Dong President Yinzuo Commercial Limited Supermarkets	December 31,2020 December 31,2019 Ownership (%) 100.00 100.00 52.22 52.22 100.00 100.00 100.00 100.00 7.80 7.80 100.00 100.00 100.00 100.00 40.00 40.00 - 100.00 100.00 100.00 100.00 100.00 100.00 100.00 50.00 50.00 100.00 100.00 50.00 50.00 100.00 100.00 15.00 15.00	Description (d)

  - (a) As the Company controls the financial and operating policies of Retail Support International Corp., the latter is included as a subsidiary in the consolidated financial statements.

  - (b) The Company liquidated the subsidiary, Books.com. (BVI) Ltd., and the process of cancellation of registration has been completed in August 2020.

  - (c) The Company liquidated the subsidiary, Beijing Bokelai Customer Co., and the process of cancellation of registration has been completed in July 2020.

  - (d) The Company liquidated the subsidiary, Shanghai Cold Stone Ice Cream Corporation Ltd. and the process of cancellation of registration has been completed in November 2020.

• C. Subsidiaries not included in the consolidated financial statements: None.

• D. Adjustments for subsidiaries with different balance sheet dates: None.

• E. Significant restrictions: None.

• F. Subsidiaries that have non-controlling interests that are material to the Group: None.

• (4) Foreign currency translation

Items included in the financial statements of the Group are measured using the currency of the primary economic environment in which the Group operates (the “functional currency”). The consolidated 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.

• (b) Monetary assets and liabilities denominated in foreign currencies at the period end are retranslated 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.

~22~

• (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, nonmonetary 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 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 subsidiaries, 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 Group 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 Group 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.
  
   - (d) Goodwill and fair value adjustments arising on the acquisition of a foreign entity are treated as assets and liabilities of the foreign entity and translated at the closing exchange rates at the balance sheet date.
  

• (5) 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;

    • (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 pay off liabilities more than 12 months after the balance sheet date.

~23~

• 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 paid off within the normal operating cycle;

• (b) Liabilities arising mainly from trading activities;

• (c) Liabilities that are to be paid off 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.

(6) 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 less than 12 months) are classified as cash equivalents.

(7) 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 Group measures the financial assets at fair value and recognizes the transaction costs in profit or loss. The Group subsequently measures the financial assets at fair value, and recognizes the gain or loss in profit or loss.

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

• (8) 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 Group 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 Group’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.

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

• 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 Group and the amount of the dividend can be measured reliably.

~24~

(9) Accounts and notes receivable

• A. Accounts and notes receivable entitle the Group 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.

(10) 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 Group 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 Group recognizes the impairment provision for lifetime ECLs.

- (11) Leasing arrangements (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.

(12) Inventories

• A. Inventories are initially recorded at cost. Cost of consolidated entities which manage convenience stores is determined using the retail inventory method while cost of other subsidiaries is determined in accordance with the type of business.

• B. Ending inventories are stated at the lower of cost and net realizable value. 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.

(13) Investments accounted for using equity method - associates

• A. Associates are all entities over which the Group 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.

• B. The Group’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 Group’s share of losses in an associate equals or exceeds its interest in the associate, including any other unsecured receivables, the Group does not recognize further losses, unless it has incurred legal or constructive obligations or made payments on behalf of the associate.

• C. 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 Group’s ownership percentage of the associate, the Group recognizes the Group’s share of change in equity of the associate in “capital surplus” in proportion to its ownership.

• D. Unrealized gains on transactions between the Group and its associates are eliminated to the extent of the Group’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 Group.

~25~

• E. In the case that an associate issues new shares and the Group does not subscribe or acquire new shares proportionately, which results in a change in the Group’s ownership percentage of the associate but maintains significant influence on the associate, then “capital surplus” and “investments accounted for using the equity method” shall be adjusted for the increase or decrease of its share of equity interest. If the above condition causes a decrease in the Group’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.

• F. Upon loss of significant influence over an associate, the Group 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.

• G. When the Group disposes its investment in an associate and loses significant influence over this associate, the amount 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.

• H. When the Group 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.

- (14) Investment accounted for using the equity method joint ventures

The Group accounts for its investment interests in joint ventures using the equity method. Unrealized profits and losses arising from transactions between the Group and joint ventures are eliminated to the extent of the Group’s interest in the joint venture. 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 Group’s share of losses in a joint venture equals or exceeds its interest in the joint venture together with any other unsecured receivables, the Group does not recognize further losses, unless it has incurred legal or constructive obligations or made payments on behalf of the joint venture.

(15) 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 Group 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.

• C. 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.

~26~

• D. The assets’ residual values, useful lives and depreciation methods are audited, 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 3~50 years Transportation equipment 2~15 years Operating equipment 2~16 years Leasehold assets 1~20 years

(16) Leasing arrangements (lessee) － right-of-use assets/ lease liabilities

• 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 Group. For short-term leases or leases of lowvalue assets, lease payments are recognized as an expense on a straight-line basis over the lease term.

• 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 Group 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.

(17) 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 10 to 50 years.

~27~

(18) Intangible assets

• A. Computer software

Computer software is stated at cost and amortized on a straight-line basis over its estimated useful life of 1 to 10 years.

• B. Goodwill

• Goodwill arises in a business combination accounted for by applying the acquisition method.

• C. License agreement and customer list and other intangible asset

• License agreement and customer list acquired in business combination are recognized at fair value at the acquisition date. Other intangible assets are separately acquired trademarks and licenses which are stated at historical cost. The latter has a finite useful life and is amortized on a straight-line basis over it’s estimated useful life.

(19) Impairment of non-financial assets

• A.The Group 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. Except for goodwill, 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.

• B.The recoverable amounts of goodwill are evaluated periodically. An impairment loss is recognized for the amount by which the asset’s carrying amount exceeds its recoverable amount. Impairment loss of goodwill previously recognized in profit or loss shall not be reversed in the following years.

• C.For the purpose of impairment testing, goodwill acquired in a business combination is allocated to each of the cash-generating units, or groups of cash-generating units, that is/are expected to benefit from the synergies of the business combination. Each unit or group of units to which the goodwill is allocated represents the lowest level within the entity at which the goodwill is monitored for internal management purposes. Goodwill is monitored at the operating segment level.

(20) Borrowings

Borrowings comprise long-term and short-term bank borrowings. Borrowings are recognized initially at fair value, net of transaction costs incurred. Borrowings are subsequently stated at amortized cost; any difference between the proceeds (net of transaction costs) and the redemption value is recognized in profit or loss over the period of the borrowings using the effective interest method.

(21) 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.

(22) Provisions

The Group’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.

~28~

(23) 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 plans

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.

• (b) Defined benefit plans

• 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 Group 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 net defined benefit 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 Group’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 Group 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 Group calculates the number of shares based on the closing price at the previous day of the board meeting resolution.

(24) 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.

~29~

• 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 and its subsidiaries operate and generate 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.

• 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 consolidated balance sheet. However, the deferred tax is not accounted for if it arises from initial recognition of goodwill or 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 nor 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 Group 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 utilised. At each balance sheet date, unrecognized and recognized deferred tax assets are reassessed.

• E. A deferred tax asset shall be recognised 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 utilised.

(25) Revenue recognition

• A. Sales of goods

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

• (b) Payment of the transaction price is due immediately when the customer purchases the product. It is the Group’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 Group 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.

~30~

B. Sales of services

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

C. Financing components

The Group 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 Group does not adjust any of the transaction prices for the time value of money.

(26) Business combination

• A. The Group uses the acquisition method to account for business combinations. The consideration transferred for an acquisition is measured as the fair value of the assets transferred, liabilities incurred or assumed and equity instruments issued at the acquisition date, plus the fair value of any assets and liabilities resulting from a contingent consideration arrangement. All acquisitionrelated costs are expensed as incurred. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. For each business combination, the Group measures at the acquisition date components of non-controlling interests in the acquiree that are present ownership interests and entitle their holders to the proportionate share of the entity’s net assets in the event of liquidation at either fair value or the present ownership instruments’ proportionate share in the recognized amounts of the acquiree’s identifiable net assets. All other non-controlling interests should be measured at the acquisition-date fair value.

• B. The excess of the consideration transferred, the amount of any non-controlling interest in the acquiree and the fair value of any previous equity interest in the acquiree over the fair value of the identifiable assets acquired and the liabilities assumed is recorded as goodwill at the acquisition date. If the total of consideration transferred, non-controlling interest in the acquiree recognized and the fair value of previously held equity interest in the acquiree is less than the fair value of the identifiable assets acquired and the liabilities assumed, the difference is recognized directly in profit or loss on the acquisition date.

(27) Operating segments

Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision-maker, who is responsible for allocating resources and assessing performance of the operating segments.

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

The preparation of these consolidated financial statements requires management to make critical judgements in applying the Group’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 Group 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.

~31~

6. DETAILS OF SIGNIFICANT ACCOUNTS

(1) Cash and cash equivalents

==> picture [484 x 111] intentionally omitted <==

----- Start of picture text -----

December 31, 2020 December 31, 2019
Cash on hand and petty cash $ 2,049,148 $ 1,680,411
Checking accounts and demand deposits 12,354,395 9,606,131
Cash equivalents
Time deposits 25,950,720 26,620,058
Short-term financial instruments 6,208,644 7,538,795
$ 46,562,907 $ 45,445,395
----- End of picture text -----

• A. The Group 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. Information about time deposits provided as security for performance guarantees and reclassified as “Other non-current assets – guarantee deposits paid” is provided in Note 8.

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

==> picture [486 x 179] intentionally omitted <==

----- Start of picture text -----

December 31, 2020 December 31, 2019
Financial assets mandatorily measured at
fair value through profit or loss
Current items:
Beneficiary certificates $ 2,105,429 $ 1,696,276
Valuation adjustment 67 24
$ 2,105,496 $ 1,696,300
Non-current items:
Unlisted stocks $ 275,243 $ 275,285
Valuation adjustment ( 189,720) ( 189,720)
$ 85,523 $ 85,565
----- End of picture text -----

• A. The Group recognized net profit of $28,099 and $27,927 in relation to financial assets at fair value through profit or loss for the years ended December 31, 2020 and 2019, respectively.

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

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

• (3) Accounts receivable

Accounts receivable
		December	31,2020		December	31,2019
Accounts receivable		$	6,322,757		$	5,864,309
Less: Allowance for doubtful accounts	(		107,485)	(		55,829)
		$	6,215,272		$	5,808,480

~32~

• A. The ageing analysis of accounts receivable that were past due but not impaired is as follows:

==> picture [464 x 111] intentionally omitted <==

----- Start of picture text -----

December 31, 2020 December 31, 2019
Not past due $ 6,228,821 $ 5,508,376
Up to 90 days 91,138 335,189
91 to 180 days 1,371 18,625
181 to 365 days 223 63
Over 365 days 1,204 2,056
$ 6,322,757 $ 5,864,309
----- End of picture text -----

The above aging analysis was based on past due date.

• B. As of December 31, 2020 and 2019, accounts receivable was all from contracts with customers. And as of January 1, 2019, the balance of receivables from contracts with customers amounted to $5,264,573.

• C. As at December 31, 2020, and 2019, 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 Group’s accounts receivable were $6,215,272, and $5,808,480, respectively.

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

(4) Inventories

Inventories
Raw materials and work in process Merchandise and finished goods	December31,2020		75,715 $ 16,560,340 16,636,055 $ Bookvalue
	Allowance for valuation loss 75,715 $ - $ 16,648,109 87,769) ( 16,723,824 $ 87,769) ($ Cost
Raw materials and work in process Merchandise and finished goods	December31,2019		71,106 $ 15,588,006 15,659,112 $ Bookvalue
	Allowance for valuation loss 71,106 $ - $ 15,712,547 124,541) ( 15,783,653 $ 124,541) ($ Cost
The cost of inventories recognized as expense for the year: For the year ended December31,2020 Cost of goods sold and service costs 168,010,208 $ (Gain on reversal) loss on valuation of inventories 36,772) ( Spoilage 2,138,407 Others 302,554 170,414,397 $		For the year ended December31,2019 166,061,981 $ 28,855 1,848,520 271,112 168,210,468 $

The Group reversed a previous inventory write-down because the Group sold and scrapped certain inventories which were previously provided with allowance during the year ended December 31, 2020.

~33~

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

==> picture [481 x 115] intentionally omitted <==

----- Start of picture text -----

December 31, 2020 December 31, 2019
Equity instruments
Listed stocks $ 265,606 $ 265,606
Unlisted stocks 4,348 4,348
269,954 269,954
Valuation adjustment 689,873 537,161
$ 959,827 $ 807,115
----- End of picture text -----

• A. The Group has elected to classify the listed and unlisted stocks that are considered to be strategic investments and steady dividend income as financial assets at fair value through other comprehensive income. The fair value of such investments amounted to $959,827 and $807,115 as at December 31, 2020 and 2019, respectively.

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

==> picture [470 x 205] intentionally omitted <==

----- Start of picture text -----

For the year ended For the year ended
December 31, 2020 December 31, 2019
Equity instruments at fair value through other
comprehensive income
Fair value change recognized in other
comprehensive income $ 152,712 $ 162,501
Dividend income recognized in profit or loss $ 43,833 $ 31,723
Debt instruments at fair value through other
comprehensive income
Fair value change recognized in other
comprehensive income $ - ($ 783)
Interest income recognized in profit or loss $ - $ 1,180
----- End of picture text -----

• C. As at December 31, 2020 and 2019, 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 Group was $959,827 and $807,115, respectively.

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

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

~34~

(6) Investments accounted for using the equity method

==> picture [481 x 206] intentionally omitted <==

----- Start of picture text -----

December 31, 2020 December 31, 2019
Associates
PresiCarre Corp. $ 5,434,309 $ 5,723,198
President Fair Development Corp. 2,084,800 2,039,406
Uni-President Development Corp. 757,759 764,191
President International Development Corp. 445,096 459,696
Uni-President Organics Corp. 42,447 41,430
Tung Ho Development Corp. 33,133 106,384
President Technology Corp. 25,543 20,866
8,823,087 9,155,171
Joint ventures
Mister Donut Taiwan Co., Ltd. 98,554 100,768
$ 8,921,641 $ 9,255,939
----- End of picture text -----

The investments in associates or joint ventures are not significant to the Group. The details of the Group’s share of the operating results in the aforementioned investments are as follows:

• A. The Group’s share of the operating results in all individually immaterial associates is summarized below:

==> picture [475 x 82] intentionally omitted <==

----- Start of picture text -----

For the year ended For the year ended
December 31, 2020 December 31, 2019
Profit for the year from continuing operations $ 412,893 $ 466,385
Other comprehensive loss - net of tax ( 20,161) ( 5,632)
Total comprehensive income $ 392,732 $ 460,753
----- End of picture text -----

• B. The Group’s share of the operating results in all individually immaterial joint ventures is summarized below:

==> picture [475 x 82] intentionally omitted <==

----- Start of picture text -----

For the year ended For the year ended
December 31, 2020 December 31, 2019
Profit for the year from continuing operations $ 10,514 $ 14,613
Other comprehensive income (loss)-net of tax 742 ( 769)
Total comprehensive income $ 11,256 $ 13,844
----- End of picture text -----

~35~

(7) Property, plant and equipment

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

Transportation Operating Leasehold Land Buildings equipment equipment improvements Others Total At January 1 Cost 2,254,656 $ 4,788,540 $ 6,648,230 $ 22,280,204 $ 19,092,068 $ 10,972,281 $ 66,035,979 $ Accumulated depreciation and impairment 16,367) ( 2,182,810) ( 4,554,359) ( 14,479,044) ( 12,277,549) ( 6,507,528) ( 40,017,657) ( 2,238,289 $ 2,605,730 $ 2,093,871 $ 7,801,160 $ 6,814,519 $ 4,464,753 $ 26,018,322 $ Opening net book amount as of January 1 2,238,289 $ 2,605,730 $ 2,093,871 $ 7,801,160 $ 6,814,519 $ 4,464,753 $ 26,018,322 $ Additions 30,208 3,505 399,892 3,555,715 2,640,668 2,383,234 9,013,222 Disposals - - 11,966) ( 48,810) ( 205,003) ( 19,396) ( 285,175) ( Transfer 642,919 15,877 205,574 226,926 154,922 1,216,570) ( 29,648 Depreciation charge - 197,413) ( 505,873) ( 2,386,188) ( 2,158,340) ( 1,497,013) ( 6,744,827) ( Reversal of impairment loss - - - 472 - - 472 Net exchange differences 44 1,757 582 6,828 3,345 6,156 18,712 Closing net book amount as of December 31 2,911,460 $ 2,429,456 $ 2,182,080 $ 9,156,103 $ 7,250,111 $ 4,121,164 $ 28,050,374 $ At December 31 Cost 2,927,827 $ 4,891,097 $ 6,993,321 $ 24,307,493 $ 20,386,864 $ 11,989,504 $ 71,496,106 $ Accumulated depreciation and impairment 16,367) ( 2,461,641) ( 4,811,241) ( 15,151,390) ( 13,136,753) ( 7,868,340) ( 43,445,732) ( 2,911,460 $ 2,429,456 $ 2,182,080 $ 9,156,103 $ 7,250,111 $ 4,121,164 $ 28,050,374 $ 2020				2020			Total
	Land	Buildings	Transportation equipment	Operating equipment	Leasehold improvements	Others
	2,911,460 $	2,429,456 $	2,182,080 $	9,156,103 $	7,250,111 $	4,121,164 $	28,050,374 $

~36~

==> picture [705 x 398] intentionally omitted <==

----- Start of picture text -----

2019
Transportation Operating Leasehold
Land Buildings equipment equipment improvements Others Total
At January 1
Cost $ 2,273,117 $ 4,723,111 $ 6,612,878 $ 21,159,733 $ 18,345,784 $ 9,627,520 $ 62,742,143
Accumulated depreciation
and impairment ( 16,367) ( 1,980,005) ( 4,345,461) ( 14,386,751) ( 11,375,011) ( 5,345,785) ( 37,449,380)
$ 2,256,750 $ 2,743,106 $ 2,267,417 $ 6,772,982 $ 6,970,773 $ 4,281,735 $ 25,292,763
Opening net book amount
as of January 1 $ 2,256,750 $ 2,743,106 $ 2,267,417 $ 6,772,982 $ 6,970,773 $ 4,281,735 $ 25,292,763
Effect of adoption of IFRS 16 - - - - ( 387,770) ( 8,463) ( 396,233)
Adjusted beginning balance $ 2,256,750 $ 2,743,106 $ 2,267,417 $ 6,772,982 $ 6,583,003 $ 4,273,272 $ 24,896,530
Additions - 33,282 276,044 3,251,911 2,184,888 1,952,903 7,699,028
- -
Disposals ( 30,554) ( 110,153) ( 110,612) ( 5,641) ( 256,960)
Transfer ( 18,757) 38,387 104,600 147,177 109,995 ( 423,497) ( 42,095)
-
Depreciation charge ( 204,422) ( 521,706) ( 2,242,940) ( 1,977,765) ( 1,352,854) ( 6,299,687)
- - - -
Reversal of impairment loss 2,653 10,965 13,618
Net exchange differences 296 ( 4,623) ( 1,930) ( 20,470) 14,045 20,570 7,888
Closing net book amount
as of December 31 $ 2,238,289 $ 2,605,730 $ 2,093,871 $ 7,801,160 $ 6,814,519 $ 4,464,753 $ 26,018,322
At December 31
Cost $ 2,254,656 $ 4,788,540 $ 6,648,230 $ 22,280,204 $ 19,092,068 $ 10,972,281 $ 66,035,979
Accumulated depreciation
and impairment ( 16,367) ( 2,182,810) ( 4,554,359) ( 14,479,044) ( 12,277,549) ( 6,507,528) ( 40,017,657)
$ 2,238,289 $ 2,605,730 $ 2,093,871 $ 7,801,160 $ 6,814,519 $ 4,464,753 $ 26,018,322
----- End of picture text -----

B. Impairment information on property, plant and equipment is provided in Note 6(13).

C. Information on property, plant and equipment pledged to others as collateral is provided in Note 8.

~37~

－ (8) Leasing arrangements lessee

• A. The Group leases various assets including land, buildings, transportation equipment, etc. Rental contracts are typically made for periods of 1 to 41 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:

Land Buildings Machinery and equipment Other equipment Land Buildings Machinery and equipment Other equipment	December 31, 2020 Carrying amount 856,263 $ 73,986,497 38,785 81,456 74,963,001 $ For the year ended December 31, 2020 Depreciation charge 143,006 $ 12,558,865 33,426 29,561 12,764,858 $	December 31, 2019 Carrying amount 677,359 $ 66,682,465 72,211 57,577 67,489,612 $ For the year ended December 31, 2019
		Depreciationcharge
		137,324 $ 11,679,988 39,389 20,814
		11,877,515 $

• C. For the years ended December 31, 2020 and 2019, the additions to right-of-use assets were $23,424,064 and $28,665,757, respectively.

• 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 short-term lease contracts Expense on leases of low-value assets Expense on variable lease payments Gain on sublease of right-of-use assets Gain from lease modification	For the year ended For the year ended December31,2020 December 31, 2019 1,143,668 $ 1,090,750 $ 403,729 344,600 70,905 64,297 536,597 620,688 540,712 544,513 79,685 58,910

• E. For the years ended December 31, 2020 and 2019, the Group’s total cash outflow for leases was $13,817,294 and $13,450,160, respectively.

F. Variable lease payments

(a) Some of the Group’s lease contracts contain variable lease payment terms that are linked to sales generated from a store or department store counter. For the above-mentioned stores, approximately 3.60% and 4.43% as at December 31, 2020 and 2019, respectively, 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.

~38~

• (b) A 1% increase in the aggregate sales amount of all stores with such variable lease contracts would increase total lease payments by approximately $5,366 and $6,207 for the years ended December 31, 2020 and 2019, respectively.

• G. The Group’s leases not yet commenced to which the lessee is committed are business premises for the lessees, and the lease liabilities undiscounted as at December 31, 2020 and 2019, amounted to $2,773,378 and $2,597,780, respectively.

• H. The Group has applied the practical expedient to “Covid-19-related rent concessions” and recognized the gain from changes in lease payments arising from the rent concessions amounting to $145,297, as other income for the year ended December 31, 2020.

(9) Leasing arrangements – lessor

• A. The Group leases various assets including land, buildings, machinery and equipment, etc. Rental contracts are typically made for periods of 1 and 35 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:

		For the year ended		For the year ended	For the year ended
		December31,2020		December31,2019
Rental revenue	$	1,590,065	$		1,568,808
Rental revenue from variable lease payments	$	1,167,643	$		1,201,823
The maturity analysis of the undiscounted lease	payments in the operating		leases is as follows:
		December31,2020		December31,2019
Within 1 year	$	275,631	$		256,072
1~2 years		211,129			206,455
2~3 years		145,147			148,086
3~4 years		71,577			90,464
4~5 years		59,022			60,519
Over 5 years		135,472			158,193
	$	897,978	$		919,789

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

(10) Investment property

vestment property
						2020
			Land			Buildings	Right-of-use assets				Total
At January 1		$	1,078,295		$	428,503	$	-		$	1,506,798
Depreciation charge			-	(		16,651)		-	(		16,651)
Disposal	(		3,987)	(		8,754)		-	(		12,741)
Transfer			-			-		1,385,740			1,385,740
At December 31		$	1,074,308		$	403,098	$	1,385,740		$	2,863,146
						2019
						Land		Buildings			Total
At January 1					$	1,059,538	$	442,621		$	1,502,159
Depreciation charge						-	(	17,031)	(		17,031)
Transfer						18,757		2,913			21,670
At December 31					$	1,078,295	$	428,503		$	1,506,798

~39~

• A. The fair value of the investment property held by the Group ranged from $4,027,091 to $5,397,468 at December 31, 2020 and 2019, which was assessed based on recent settlement prices of similar and comparable properties, as well as the reports of independent appraisers. Valuations were made using the comparison approach and income approach which is categorized within level 3 in the fair value hierarchy. Key assumptions are discount rate between 0.8% to 2.39% and growth rate 3%.

• B. Information on investment property pledged to others as collateral is provided in Note 8.

(11) Intangible assets

Intangible assets
							2020
							License
						agreement and
			Software		Goodwill	customer list			Others			Total
At January 1
Cost		$	1,853,119	$	2,202,925	$	7,524,890	$	493,171		12,074,105 $
Accumulated amortization
and impairment	(		1,375,833)		-	(	388,319)	(	138,511)	(		1,902,663)
		$	477,286	$	2,202,925	$	7,136,571	$	354,660		10,171,442 $
Opening net book amount
as of January 1		$	477,286	$	2,202,925	$	7,136,571	$	354,660		10,171,442 $
Additions			190,250		-		-		47,235			237,485
Transfer			6,625		-		-	(	183)			6,442
Amortization expense	(		212,046)		-	(	194,159)	(	50,027)	(		456,232)
Net exchange differences	(		574)	(	2,772)		-		2,407	(		939)
Closing net book amount
as of December 31		$	461,541	$	2,200,153	$	6,942,412	$	354,092		$	9,958,198
At December 31
Cost		$	2,038,224	$	2,200,153	$	7,524,890	$	540,225		12,303,492 $
Accumulated amortization
and impairment	(		1,576,683)		-	(	582,478)	(	186,133)	(		2,345,294)
		$	461,541	$	2,200,153	$	6,942,412	$	354,092		$	9,958,198

~40~

							2019
							License
						agreement and
			Software		Goodwill	customer list			Others			Total
At January 1
Cost		$	1,648,652	$	2,204,284	$	7,524,890	$	469,957		$	11,847,783
Accumulated amortization
and impairment	(		1,164,405)		-	(	194,160)	(	95,338)	(		1,453,903)
		$	484,247	$	2,204,284	$	7,330,730	$	374,619		$	10,393,880
Opening net book amount
as of January 1		$	484,247	$	2,204,284	$	7,330,730	$	374,619		$	10,393,880
Additions			184,912		-		-		24,690			209,602
Transfer			46,246		-		-		584			46,830
Amortization expense	(		236,331)		-	(	194,159)	(	45,398)	(		475,888)
Net exchange differences	(		1,788)	(	1,359)		-		165	(		2,982)
Closing net book amount
as of December 31		$	477,286	$	2,202,925	$	7,136,571	$	354,660		$	10,171,442
At December 31
Cost		$	1,853,119	$	2,202,925	$	7,524,890	$	493,171		$	12,074,105
Accumulated amortization
and impairment	(		1,375,833)		-	(	388,319)	(	138,511)	(		1,902,663)
		$	477,286	$	2,202,925	$	7,136,571	$	354,660		$	10,171,442

Amortization expense on intangible assets are recognized as operating expenses. (12) Other non-current assets

Guarantee deposits paid Others	December31,2020 3,106,790 $ 461,010 3,567,800 $	December31,2019 2,911,887 $ 787,932 3,699,819 $

(13) Impairment of non-financial assets

A. The Group recognized reversal of impairment loss for the years ended December 31, 2020 and 2019 was $472 and $13,618, respectively. Details of such gain are as follows:

Reversal of impairment loss Property, plant and equipment	Recognized in other Recognized in comprehensive profit or loss income 472 $ - $ December31,2020 For the year ended	For the year ended December31,2019	For the year ended December31,2019
	Recognized in profit or loss 472 $	Recognized in profit or loss 13,618 $	Recognized in other comprehensive income
			- $

~41~

• B. The Group performs impairment testing annually. The recoverable amount has been determined based on value-in-use calculations. These calculations use pre-tax cash flow projections based on financial budgets approved by the management covering a five-year period. The recoverable amount calculated using the value-in-use exceeded their carrying amount, so goodwill was not impairs. The key assumptions used for value-in-use calculations are as follows:

• (a) Discount rate: Estimated based on weighted average cost of funds. The discount rate for the years ended December 31, 2020 and 2019 were 7.43% to 14.06%.

• (b) Future value growth rate: Refer to the past long-term average economic growth rate of mature economies and long-term price index growth rate and market competition. The future value growth rate for the years ended December 31, 2020 and 2019 were 1%.

Management determined budgeted gross margin and operating profit margin based on past performance and its expectations of market development. The weighted average growth rates used are consistent with the forecasts included in industry reports. The discount rates used are pre-tax and reflected specific risks relating to the relevant operating segments.

(14) Short-term borrowings

Short-term borrowings
Type of borrowings Bank borrowings Credit loan Type of borrowings Bank borrowings Credit loan	December31,2020 4,739,411 $ December 31, 2019 6,014,658 $	Interest rate range 0.49%~4.875% Interest rate range 0.65%~5.75%	Collateral
			None Collateral
			None

There was no capitalization of borrowing costs for the years ended December 31, 2020 and 2019. Relevant interest expense on borrowings is recognized as “finance costs”.

(15) Short-term notes and bills payable

December31,2020 Commercial papers payable 3,400,000 $ Less: Unamortized discount 853) ( 3,399,147 $ Inerest rate range 0.408%	December31,2020	Pledged or secured
		Please refer to the below for details

• A. There was no commercial papers payable for the year ended December 31, 2019.

• B. The above commercial papers were issued and secured by Sumitomo Mitsui Banking Corporation and International Bills Finance Corporation for short-term financing.

~42~

(16) Other payables

Other payables	Other payables
Other current liabilities Long-term borrowings Store collections Wages, salaries and bonus payable Sales receipt on behalf of others Payables for acquisition of property, plant and equipment Incentive bonus payable to franchisees Employees’ compensation and remuneration for directors and supervisors Payables for labor and health insurance Rent payable Others Advance receipts for gift certificates Advance receipts of deposits in ICASH cards Current portion of long-term liabilities Others Type of borrowings Interestraterange Long-term bank borrowings Credit loan 3.875%~5.30% Secured borrowings 1.49%~1.75% Less: Current portion Type ofborrowings Interestraterange Long-term bank borrowings Credit loan 4.88%~5.32% Secured borrowings 1.67%~1.96% Less: Current portion		December31,2020 December31,2019 10,519,829 $ 11,453,224 $ 4,958,514 5,206,353 1,617,261 1,345,877 1,355,119 1,364,370 934,922 1,158,473 852,461 872,361 252,313 248,584 62,477 66,133 4,540,886 4,881,130 25,093,782 $ 26,596,505 $ December 31, 2020 December 31, 2019 1,489,185 $ 1,351,370 $ 1,474,937 1,298,919 291,575 221,888 333,173 277,414 3,588,870 $ 3,149,591 $ Collateral December 31, 2020 None 790,662 $ Property, plant and equipment 529,466 1,320,128 291,575) ( 1,028,553 $ Collateral December31,2019 None 292,288 $ Property, plant and equipment 437,712 730,000 221,888) ( 508,112 $
	3.875%~5.30% 1.49%~1.75% Interestraterange
	4.88%~5.32% 1.67%~1.96%

(17) Other current liabilities

- (18) Long term borrowings

There was no capitalization of borrowing costs for the years ended December 31, 2020 and 2019. Relevant interest expense on borrowings is recognized as “finance costs”.

~43~

(19) Pensions

• A. The Company and its domestic subsidiaries operate a defined benefit pension plan, in accordance with the Labor Standards Law, which covers 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 Labor Standards 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 six months prior to retirement. The Company and its domestic subsidiaries contribute monthly an amount equal to 2%~8% of employees’ monthly salaries and wages to a retirement fund at the Bank of Taiwan, the trustee, under the name of the independent retirement fund committee. Also, the Company and its domestic subsidiaries 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 to the employees expected to qualify for retirement in the following year, the Company and its domestic subsidiaries will make contributions for the deficit by next March. Furthermore, the subsidiary, Philippine Seven Corporation has defined benefit pension plan.

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

	December31,2020		December 31, 2019
Present value of defined benefit obligations	7,853,594) ($	($	7,647,265)
Fair value of plan assets	2,883,702		2,895,658
Net defined benefit liability	4,969,892) ($	($	4,751,607)

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

						2020
		Present value of
			defined benefit			Fair value of			Net defined
			obligations			planassets		benefitliability
At January 1	($		7,647,265)		$	2,895,658	($		4,751,607)
Current service cost	(		84,691)			-	(		84,691)
Interest (expense) income	(		68,304)			24,364	(		43,940)
Past service cost			508			-			508
	(		7,799,752)			2,920,022	(		4,879,730)
Remeasurements:
Return on plan assets (not including
the amount included in interest
income or expense)			-			98,968			98,968
Change in demographic assumptions	(		5,424)			-	(		5,424)
Change in financial assumptions	(		433,716)			-	(		433,716)
Experience adjustments			127,348			-			127,348
	(		311,792)			98,968	(		212,824)
Pension fund contribution			-			105,239			105,239
Paid pension			257,950	(		240,527)			17,423
			257,950	(		135,288)			122,662
At December 31	($		7,853,594)		$	2,883,702	($		4,969,892)

~44~

					2019
	Present value of
		defined benefit			Fair value of			Net defined
		obligations			plan assets		benefit liability
At January 1	7,616,936) ($			$	2,884,387	($		4,732,549)
Current service cost	(	78,190)			-	(		78,190)
Interest (expense) income	(	88,599)			33,872	(		54,727)
Past service cost	(	24,700)			-	(		24,700)
	(	7,808,425)			2,918,259	(		4,890,166)
Remeasurements:
Return on plan assets (not including
the amount included in interest
income or expense)		-			94,853			94,853
Change in demographic assumptions	(	6,760)			-	(		6,760)
Change in financial assumptions	(	280,928)			-	(		280,928)
Experience adjustments		182,775			-			182,775
	(	104,913)			94,853	(		10,060)
Pension fund contribution		-			130,510			130,510
Paid pension		266,073	(		247,964)			18,109
		266,073	(		117,454)			148,619
At December 31	7,647,265) ($			$	2,895,658	($		4,751,607)

(c) The Bank of Taiwan was commissioned to manage the Fund of the Company’s and domestic subsidiaries’ 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.). Relating condition of execution is supervised by Labor Funds Supervisory Committee. 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, 2020 and 2019 is given in the Annual Labor Retirement Fund Utilization Report announced by the government.

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

Discount rate Future salary increases	For the year ended December31,2020 0.30%~3.83% 2.00%~5.50%	For the year ended December31,2019 0.75%~5.16 % 2.00%~5.50 %

Assumptions regarding future mortality experience are set based on actuarial advice in accordance with published statistics and experience in each territory.

~45~

Because the main actuarial assumption changed, the present value of defined benefit obligation is affected. The analysis was as follows:

==> picture [448 x 145] intentionally omitted <==

----- Start of picture text -----

Discount rate Future salary increases
Increase Decrease Increase Decrease
0.25% 0.25% 0.25% 0.25%
December 31, 2020
Effect on present value of defined
benefit obligation ($ 232,413) $ 243,844 $ 237,276 ($ 225,935)
December 31, 2019
Effect on present value of defined
benefit obligation ($ 231,284) $ 241,943 $ 236,311 ($ 226,289)
----- End of picture text -----

The sensitivity analysis above is based on one assumption which changed while the other conditions remain 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 methods and types of assumptions used in preparing the sensitivity analysis did not change compared to the previous period.

• (e) Expected contributions to the defined benefit pension plans of the Group for the year ending December 31, 2021 amounts to $190,875.

• (f) As of December 31, 2020, the weighted average duration of the retirement plan is 8~23 years. The analysis of timing of the future pension payment was as follows:

Within 1 year	$	153,746
1-2 year(s)		242,266
2-5 years		842,372
Over 5 years		13,093,261
	$	14,331,645

• B. Effective July 1, 2005, the Company and its domestic subsidiaries have 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 and its domestic subsidiaries contribute 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.

• (a) The Company’s mainland China subsidiaries have a defined contribution plan. Monthly contributions to an independent fund administered by the government in accordance with the pension regulations in the People’s Republic of China (PRC) are based on certain percentage of employees’ monthly salaries and wages. The contribution percentage for the years ended December 31, 2020 and 2019 were 14%~20%. Other than the monthly contributions, the Group has no further obligations.

• (b) The pension costs under the defined contribution pension plans of the Group for the years ended December 31, 2020 and 2019 were $935,670 and $954,914, respectively.

~46~

(20) Other non-current liabilities

==> picture [486 x 78] intentionally omitted <==

----- Start of picture text -----

December 31, 2020 December 31, 2019
Guarantee deposit received $ 3,784,654 $ 3,560,485
Provision for decommissioning liability 576,406 508,707
Others 295,213 299,628
$ 4,656,273 $ 4,368,820
----- End of picture text -----

(21) Share capital

As of December 31, 2020, 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 as of December 31, 2020 and January 1, 2020.

(22) 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.

(23) 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 a legal reserve. The Company may then set aside or reserve a certain amount as special reverse according to the relevant regulations. The appropriation of the remaining earnings and prior years’ unappropriated retained earnings 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 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 shall 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.

~47~

• D. The appropriations for 2019 and 2018 were resolved by the shareholders on June 17, 2020 and June 12, 2019, respectively, as follows:

June 12, 2019, respectively, as follows:
	2019				2018
		Dividends				Dividends
		per share				per share
	Amount	(indollars)			Amount	(indollars)
Legal reserve	1,055,147 $			$	1,020,639
Special reserve appropriated (reversal)	380,187		(		398,859)
Cash dividends	9,356,600	9.00 $			9,148,676	8.80 $

• E. The appropriations for 2020 as resolved by the Board of Directors on February 26, 2021 is as follows:

The appropriations for 2020 as resolved by the Board of Directors follows: Cash dividends 9,356,600 9.00 $	on February 26, 2021 is 9,148,676 8.80 $	on February 26, 2021 is 9,148,676 8.80 $
Legal reserve Special reserve appropriated (reversal) Cash dividends	2020
	Amount 1,010,560 $ 952,434 9,356,600	Dividends per share (indollars)
		9.00 $

(24) Other equity items

Other equity items Cash dividends 9,356,600 9.00 $	9,356,60	0 9.00 $
Financial statements translation differences of Unrealized gains (or loss) on valuation of financial assets at fair value through other foreignoperations comprehensiveincome Total At January 1 869,908) ($ 489,721 $ 380,187) ($ Revaluation and transfer – Group - 152,712 152,712 – Associates - 4,251) ( 4,251) ( Revaluation-tax - 2,465 2,465 Currency translation differences: – Group 1,093,943) ( - 1,093,943) ( – Associates 9,417) ( - 9,417) ( At December 31 1,973,268) ($ 640,647 $ 1,332,621) ($ 2020	2020
		Total

~48~

Operating revenue Financial statements translation differences of Unrealized gains (or loss) on valuation of financial assets at fair value through other foreignoperations comprehensiveincome Total At January 1 279,829) ($ 333,434 $ 53,605 $ Revaluation and transfer – Group - 161,718 161,718 – Associates - 4,518 4,518 Revaluation-tax - 9,949) ( 9,949) ( Currency translation differences: – Group 584,090) ( - 584,090) ( – Associates 5,989) ( - 5,989) ( At December 31 869,908) ($ 489,721 $ 380,187) ($ 2019 For the year ended For the year ended December31,2020 December31,2019 Revenue from contracts with customers 258,494,907 $ 256,058,888 $		2019	2019
				Total
			256,058,888 $

(25) Operating revenue

A. Disaggregation of revenue from contracts with customers

The Group operates a chain of retail stores and derives revenue from the transfer of goods and services overtime and at a point in time. The operating revenue is categorized based on operating departments provided in Note 14(3) and goods or services recognition timing as follows:

For the year ended December31,2020 Timing of revenue recognition – At a point in time – Over time For the year ended December31,2019 Timing of revenue recognition – At a point in time – Over time	Convenience stores 166,515,823 $ 823,854 167,339,677 $ Convenience stores 156,893,846 $ 522,698 157,416,544 $	Retail business group 55,554,382 $ 13,401,530 68,955,912 $ Retail business group 62,610,361 $ 13,399,123 76,009,484 $	Logistics businessgroup 722,964 $ 1,393,560 2,116,524 $ Logistics businessgroup 1,164,306 $ 936,045 2,100,351 $	Others 19,276,942 $ 805,852 20,082,794 $ Others 19,622,849 $ 909,660 20,532,509 $	Total
					242,070,111 $ 16,424,796
					258,494,907 $
					Total
					240,291,362 $ 15,767,526
					256,058,888 $

~49~

B. Contract liabilities

• (a) The Group has recognized the following revenue-related contract liabilities:

Contract liabilities – advance receipts of gift certificates and gift payments Contract liabilities – members’ deposits Contract liabilities – franchise fee Contract liabilities – customer loyalty programs Contract liabilities – others	December31,2020 December31,2019 3,430,999 $ 1,786,894 $ 804,373 793,115 429,578 444,470 807,168 503,861 326,513 363,291 5,798,631 $ 3,891,631 $	January1,2019 1,392,390 $ 764,782 230,812 344,970 344,656 3,077,610 $

• (b) Revenues recognized that were included in the contract liabilities balance at the beginning were $2,461,515 and $2,598,521 for the years ended December 31, 2020 and 2019, respectively.

(26) Expenses by nature

respectively. Expenses by nature
Net cost of goods sold Employee benefit expense Incentive bonuses for franchisees Depreciation and amortization Utilities expense Operating lease payments Other costs and expenses Total operating costs and operating expenses	For the year ended December31,2020 151,820,619 $ 25,784,678 22,732,406 20,072,282 4,175,339 1,011,231 20,753,379 246,349,934 $	For the year ended December31,2019 150,081,406 $ 26,225,115 21,822,920 18,751,911 4,559,080 1,029,585 20,538,977
		243,008,994 $

(27) Employee benefit expense

Employee benefit expense Utilities expense Operating lease payments Other costs and expenses Total operating costs and operating expenses	4,175,339 1,011,231 20,753,379 246,349,934 $	4,559,080 1,029,585 20,538,977 243,008,994 $
Wages and salaries Labor and health insurance fees Pension costs Other personnel expenses	For the year ended December 31, 2020 21,271,792 $ 1,928,195 1,063,793 1,520,898 25,784,678 $	For the year ended December31,2019
		21,598,372 $ 2,010,371 1,112,531 1,503,841
		26,225,115 $

• 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, 2020 and 2019, employees’ compensation was accrued at $543,617 and $567,096, respectively; while directors’ and supervisors’ remuneration was accrued at $181,620 and $189,465, respectively.

The employees’ compensation and directors’ and supervisors’ remuneration were estimated and accrued based on 4.37% and 1.46% of distributable profit of the current year for the year ended December 31, 2020, respectively. The employees’ compensation and directors’ and supervisors’ remuneration resolved by the Board of Directors were $543,617 and $181,620 and the employees’ compensation will be distributed in the form of cash.

~50~

Employees’ compensation and directors’ and supervisors’ remuneration for 2019 as resolved by the Board of Directors were in agreement with those amounts recognized in the 2019 financial statements and the employee’s compensation will be distributed in form of cash.

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.

(28) Interest income

(28)	System’ at the website of the Taiwan Stock Exchange. Interest income
(29) (30) (31)	Other income Other gains and losses Finance costs For the year ended For the year ended December31,2020 December31,2019 Interest income 505,639 $ 793,898 $ For the year ended For the year ended December31,2020 December31,2019 Grants income 685,082 $ 649,919 $ Rental revenue 349,865 306,257 Dividend income 61,961 49,542 Others 947,117 1,078,716 2,044,025 $ 2,084,434 $ For the year ended For the year ended December31,2020 December31,2019 Gain from lease modification 79,685 $ 58,910 $ Gain (loss) on disposal of property, plant and equipment 20,007 11,428) ( Reversal of impairment loss on property, plant and equipment 472 13,618 Loss on disposal of investments - 3,402) ( Other gains and losses 86,366) ( 86,735) ( 13,798 $ 29,037) ($ For the year ended For the year ended December31,2020 December31,2019 Interest expense 1,321,386 $ 1,216,000 $	For the year ended December31,2019 793,898 $
		For the year ended December31,2019 649,919 $ 306,257 49,542 1,078,716
		2,084,434 $
		For the year ended December31,2019
		1,216,000 $

~51~

(32) Income tax

A. Income tax expense

(a) Components of income tax expense:

Income tax A. Income tax expense (a) Components of income tax expense:
		For the year ended					For the year ended
		December31,2020				December31,2019
Current tax:
Current tax on profit for the year		$	3,012,757			$		3,132,151
Tax on undistributed surplus earnings			-					20,212
Over provision of prior year’s income tax	(		204,859)		(			161,668)
Total current tax			2,807,898					2,990,695
Deferred tax:
Origination and reversal of temporary
differences	(		337,700)					61,383
Income tax expense		$	2,470,198			$		3,052,078
(b) The income tax charge relating to the components of other comprehensive								income is as
follows:
		For the year ended					For the year ended
		December31,2020					December 31, 2019
Remeasurement of defined benefit
obligations	($		47,785)			($		10,816)
Changes in fair value of financial assets
at fair value through other comprehensive
income	(		2,465)					9,949
	($		50,250)			($		867)
B. Reconciliation between income tax expense and accounting profit
		For	the year ended			For the year ended
		December31,2020				December31,2019
Tax calculated based on profit before tax and
statutory tax rate		$	3,360,438		$			3,843,762
Expenses disallowed by tax regulation	(		680,627)	(				647,195)
Tax on undistributed surplus earnings			-					20,212
Over provision of prior year’s
income tax	(		204,859)	(				161,668)
Effect from investment tax credits			-					311
Effect from tax losses	(		4,754)	(				3,344)
Income tax expense		$	2,470,198		$			3,052,078

The difference between the Group’s accounting income and taxable income in 2020 and 2019 was mainly due to the dividend income, investment tax credits and the operating loss of subsidiaries.

~52~

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

are as follows:
						2020
									Recognized
				Recongized					in other
					in profit			comprehensive
		January1			of loss				income		December31
Deferred tax assets
Allowance for doubtful accounts	$	14,102	$		15,804		$		-	$		29,906
Unrealized sales allowance		8,469	(		448)				-			8,021
Loss on inventory market
value decline		31,536	(		6,615)				-			24,921
Unrealized expenses		716,042			17,628				-			733,670
Book-tax difference of pension		148,609	(		2,255)				-			146,354
Remeasurements of the defined
benefit plan		805,217			-				47,785			853,002
Tax losses		36,277	(		36,277)				-			-
Others		99,965			92,191				-			192,156
		1,860,217			80,028				47,785			1,988,030
Deferred tax liabilities
Unrealized gain	(	1,467,326)			37,177				2,465	(		1,427,684)
Foreign investment income	(	4,113,203)			220,495				-	(		3,892,708)
	(	5,580,529)			257,672				2,465	(		5,320,392)
	($	3,720,312)	$		337,700		$		50,250	($		3,332,362)
						2019
									Recognized
				Recongized					in other
					in profit			comprehensive
		January1			of loss				income		December31
Deferred tax assets
Allowance for doubtful accounts	$	14,739	($		637)		$		-	$		14,102
Unrealized sales allowance		10,229	(		1,760)				-			8,469
Loss on inventory market
value decline		25,448			6,088				-			31,536
Unrealized expenses		511,276			204,766				-			716,042
Book-tax difference of pension		154,720	(		6,111)				-			148,609
Remeasurements of the defined
benefit plan		794,401			-				10,816			805,217
Tax losses		93,681	(		57,404)				-			36,277
Others		122,549	(		22,584)				-			99,965
		1,727,043			122,358				10,816			1,860,217
Deferred tax liabilities
Unrealized gain	(	1,496,065)			38,688		(		9,949)	(		1,467,326)
Foreign investment income	(	3,890,774)	(		222,429)				-	(		4,113,203)
	(	5,386,839)	(		183,741)		(		9,949)	(		5,580,529)
	($	3,659,796)	($		61,383)		$		867	($		3,720,312)

~53~

• D. Expiration dates of unused taxable loss and amounts of unrecognized deferred tax assets are as follows:

==> picture [465 x 190] intentionally omitted <==

----- Start of picture text -----

December 31, 2020
Amount filed / Unrecognized
Year incurred assessed Unused amount deferred tax assets Usable until
2011~2020 $ 1,696,659 $ 1,696,659 $ 1,696,659 2021~2030
December 31, 2019
Amount filed / Unrecognized
Year incurred assessed Unused amount deferred tax assets Usable until
2010~2019 $ 1,912,586 $ 1,912,586 $ 1,731,204 2020~2029
E. The amounts of deductible temporary differences that were not recognized as deferred tax assets
are as follows:
December 31, 2020 December 31, 2019
Deductible temporary differences $ 30,132 $ 109,999
----- End of picture text -----

• E. The amounts of deductible temporary differences that were not recognized as deferred tax assets are as follows:

• F. The Company’s income tax returns through 2018 have been assessed and approved by the Tax Authority.

(33) Earnings per share

Authority. 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’ compensation Shareholders of the parent plus assumed conversion of all dilutive potential ordinary shares	For theyear ended December31,2020
	Amount after tax 10,238,162 $ 10,238,162 $ - 10,238,162 $	Weighted average number of ordinary shares outstanding (shares in thousands) 1,039,622 1,039,622 2,358 1,041,980	Earnings per share (in dollars)
			9.85 $
			9.83 $

~54~

==> picture [504 x 396] intentionally omitted <==

----- Start of picture text -----

For the year ended December 31, 2019
Weighted average
number of ordinary Earnings per
Amount shares outstanding share
after tax (shares in thousands) (in dollars)
Basic earnings per share
Profit attributable to ordinary
shareholders of the parent $ 10,542,860 1,039,622 $ 10.14
Diluted earnings per share
Profit attributable to ordinary
shareholders of the parent $ 10,542,860 1,039,622
Assumed conversion of all dilutive
potential ordinary shares
-
Employees’ compensation 2,169
Shareholders of the parent plus
assumed conversion of all dilutive
potential ordinary shares $ 10,542,860 1,041,791 $ 10.12
(34) Supplemental cash flow information
A. Investing activities with partial cash payments
For the year ended For the year ended
December 31, 2020 December 31, 2019
Purchase of property, plant and equipment $ 9,013,222 $ 7,699,028
Add: Opening balance of payable on equipment 1,364,370 914,557
Less: Ending balance of payable on equipment ( 1,355,119) ( 1,364,370)
Cash paid during the year $ 9,022,473 $ 7,249,215
----- End of picture text -----

~55~

(35) Changes in liabilities from financing activities

													2020
																	Guarantee				Other			Liabilities
		Short-term			Short-term notes				Dividend		Long-term			Lease				deposits		non-current			from financing
		borrowings			and bills payable				payable		borrowings			liabilities				received			liabilities		activities-gross
At January 1		$	6,014,658		$		-		$	-	$	508,112 $		68,827,038			$	3,560,485		$	808,335		$	79,718,628
Changes in cash flow from
financing activities	(		1,275,247)				3,399,147	(	10,473,302)			589,579 (		11,662,395)				224,169		(	4,415)		(	19,202,464)
Interest paid (Note)				-			-			-			- (	1,143,668)					-			-	(	1,143,668)
Impact of changes in foreign
exchange rate				-			-			-			371 (		44,501)				-			-	(	44,130)
Changes in other non-cash items				-			-		10,473,302		(		69,509)	22,160,542					-		67,699			32,632,034
At December 31		$	4,739,411		$		3,399,147		$	-	$	1,028,553 $		78,137,016			$	3,784,654		$	871,619		$	91,960,400
													2019
																Guarantee				Other				Liabilities
				Short-term			Dividend			Long-term			Lease			deposits			non-current				from financing
				borrowings			payable		borrowings				liabilities			received				liabilities			activities-gross
At January 1			$	7,237,785			$	-	$	847,040		$	52,938,613		$	3,413,265			$	943,724		$		65,380,427
Changes in cash flow from
financing activities		(		1,223,127)		(	10,458,106)		(	459,144)		(	11,329,825)				147,220		(	222,130)		(		23,545,112)
Interest paid (Note)					-			-			-	(	1,090,750)					-			-	(		1,090,750)
Impact of changes in foreign
exchange rate					-			-		6,244		(	15,592)					-			-	(		9,348)
Changes in other non-cash items					-		10,458,106			113,972			28,324,592					-			86,741			38,983,411
At December 31			$	6,014,658			$	-	$	508,112		$	68,827,038		$	3,560,485			$	808,335		$		79,718,628

Note: Presented in cash flows from operating activities.

~56~

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, 2020.

(2) Names of related parties and relationship

Names of related parties and relationship
Names of related parties	Relationship withthe Group
Uni-President Enterprises Corp. Mister Donut Taiwan Co., Ltd. Presicarre Corp. Uni-President Organics Corp. President Technology Corp. President Fair Development Corp. Uni-President Development Corp. Presco Netmarketing Inc. Uni-president Trading(Kunshan) Co., Ltd. Tait Marketing & Distribution Co., Ltd. Tung Ang Enterprises Corp. Lien Bo Corp. President Packaging Industrial Corp. President Tokyo Corp. Songjiang President Enterprises Co., Ltd. Kai Ya Food Co., Ltd. ZhenZhou President Enterprises Co., Ltd Kuang Chuan Dairy Co., Ltd. Wei Lih Food Industrial Co., Ltd. Prince Housing & Development Corp. Wei Kuon Co., Ltd. Tong Zhan Corporation Ltd. Koasa Yamako Corp.	Ultimate parent company Investee of the Company accounted for using the equity method 〃 〃 〃 〃 〃 Subsidiary of ultimate parent company 〃 〃 〃 〃 〃 〃 〃 Sub-subsidiary of ultimate parent company 〃 Investee of ultimate parent company accounted for using the equity method 〃 〃 Subsidiaries of investee of ultimate parent company accounted for using the equity method Investees of subsidiaries of ultimate parent company accounted for using the equity method The Company is a director of Koasa Yamako Corp.

~57~

(3) Significant related party transactions and balances

A. Operating revenue

==> picture [464 x 199] intentionally omitted <==

----- Start of picture text -----

For the year ended For the year ended
December 31, 2020 December 31, 2019
Sales of goods
Ultimate parent company $ 583,442 $ 580,342
Associates 135,225 140,979
Sister companies 329,736 278,874
Other related parties 59,721 74,030
Sales of services
Ultimate parent company 18,593 12,417
Associates 55,728 55,905
Sister companies 16,239 14,376
Other related parties 4,526 5,265
$ 1,203,210 $ 1,162,188
----- End of picture text -----

Goods are sold based on the price lists in force and terms that would be available to third parties.

B. Purchases

For the year ended December 31, 2020 Ultimate parent company 16,738,312 $ Associates 226,563 Sister companies 5,334,662 Other related parties 2,197,251 24,496,788 $	For the year ended December31,2019 16,338,812 $ 252,638 4,433,169 2,427,687 23,452,306 $

Goods and services are purchased from related parties on normal commercial terms and conditions.

C. Receivables from related parties

==> picture [465 x 20] intentionally omitted <==

----- Start of picture text -----

December 31, 2020 December 31, 2019
----- End of picture text -----

Accounts receivable Ultimate parent company Associates Sister companies Other related parties	232,286 $ 60,516 96,824 4,435 394,061 $	245,123 $ 64,598 81,774 4,289 395,784 $

Receivables from related parties arise mainly from sales transactions. Receivables are unsecured in nature and bear no interest. There are no provisions for receivables from related parties.

~58~

D. Payables to related parties

==> picture [465 x 109] intentionally omitted <==

----- Start of picture text -----

December 31, 2020 December 31, 2019
Notes payable and accounts payable
Ultimate parent company $ 1,850,470 $ 1,765,350
Associates 58,443 65,907
Sister companies 634,707 583,883
Other related parties 321,798 348,524
$ 2,865,418 $ 2,763,664
----- End of picture text -----

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

－ E. Leasing arrangements lessee

• (a) The Group 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

ng arrangements－lessee e Group holds various lease agreements with related parties based on ases were paid on a monthly basis. cquisition of right-of-use assets	the market price. The
For the year ended December 31, 2020 Ultimate parent company 23,135 $ Associates 3,507,884 Sister companies 31,298 Other related parties - 3,562,317 $	For the year ended December31,2019
	112,002 $ 12,157 12,398 513,952
	650,509 $

On January 1, 2019 (the date of initial application of IFRS 16), the Group increased right-ofuse assets by $1,401,225.

(c) Lease expenses

se assets by $1,401,225. ease expenses
ease liabilities Ultimate parent company Associates Sister companies Other related parties Ultimate parent company Associates Sister companies Other related parties	For the year ended December 31, 2020 1,259 $ 58,709 17,196 2,605 79,769 $ December31,2020 73,102 $ 3,654,236 265,288 472,611 4,465,237 $	For the year ended December31,2019
		13,434 $ 70,200 15,203 1,488
		100,325 $
		December31,2019
		128,016 $ 546,049 294,591 524,690
		1,493,346 $

(d) Lease liabilities

~59~

F. Property transactions

Acquisition of property, plant and equipment:

y management compensation For the year ended Accounts December31,2020 Associates Property, plant and equipment 67,695 $ Sister companies 〃 162 67,857 $ For the year ended December31,2020 ort-term employee benefits 616,223 $	For the year ended December31,2019 67,113 $ - 67,113 $ For the year ended December31,2019 705,741 $

(4) Key management compensation

Short-term employee benefits

8. PLEDGED ASSETS

The Group’s assets pledged as collateral are as follows:

Pledged asset Land Buildings Transportation equipment Investment property Pledged time deposits (Recognized as “Other non-current assets - guarantee deposits paid ”)	Book	December31,2019 128,643 $ 42,130 591,493 - 61,925 824,191 $ value	Purpose
	December31,2020 218,675 $ 31,450 706,193 56,898 110,122 1,123,338 $
			Long-term and short-term borrowings, guarantee facilities and performance guarantee Long-term and short-term borrowings and guarantee facilities Long-term borrowings Performance guarantee Performance guarantee

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 Group’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.

~60~

(2) Financial instruments

A. Financial instruments by category

nancial instruments Financial instruments by category
Financial assets Financial assets at fair value through profit or loss Financial assets mandatorily measured at 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 deposits paid Other non-current assets (Note) Financial liabilities Financial liabilities at amortized cost Short-term borrowings Short-term notes and bills payable Notes payable Accounts payable (including related parties) Other payables Long-term borrowings (including current portion) Guarantee deposits received Lease liabilities	December31,2020 2,191,019 $ 959,827 $ 46,562,907 $ 6,215,272 1,950,481 2,491,850 3,106,790 47,442 60,374,742 63,525,588 $ 4,739,411 $ 3,399,147 1,079,496 25,056,836 25,093,782 1,320,128 3,784,654 64,473,454 78,137,016 $ 142,610,470 $	December31,2019
		1,781,865 $
		807,115 $
		45,445,395 $ 5,808,480 1,460,354 2,172,863 2,911,887 40,351
		57,839,330
		60,428,310 $
		6,014,658 $ - 1,214,702 23,587,695 26,596,505 730,000 3,560,485
		61,704,045
		68,827,038 $
		130,531,083 $

Note: The Group’s trust account for advance receipts of gift certificates and deposits.

B. Risk management policies

• (a) The Group’s risk management and hedging policies mainly focus on hedging business risk. The Group 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 assesses 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.

~61~

C. Significant financial risks and degrees of financial risks

• (a) Market risk

Foreign exchange risk

• I. The Group operates internationally and is exposed to foreign exchange risk arising from of the Company and its subsidiaries 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 group companies to manage their foreign exchange risk against their functional currencies.

• III. The Company’s and certain subsidiaries’ functional currency is the New Taiwan dollar (NTD), and for other certain subsidiaries, the functional currency is the Renminbi (RMB). The details of assets and liabilities denominated in foreign currencies whose values would be materially affected by exchange rate fluctuations are as follows:

==> picture [415 x 48] intentionally omitted <==

----- Start of picture text -----

December 31, 2020 December 31, 2019
Foreign currency Foreign currency
(Foreign currency: amount Exchange Book value amount Exchange Book value
functional currency) (In thousands) rate (NTD) (In thousands) rate (NTD)
----- End of picture text -----

functional currency)	(In	thousands)	rate		(NTD)	(In	thousands)	rate		(NTD)
Financial assets
Monetary items
USD : NTD	$	1,878	28.4800	$	53,485	$	792	29.9800	$	23,744
RMB : NTD		2,790	4.3633		12,174		900	4.3055		3,875
JPY : NTD		55,921	0.2763		15,451		43,340	0.2760		11,962
HKD : NTD		1,267	3.6734		4,654		766	3.8478		2,947
EUR : NTD		43	35.0200		1,506		273	33.5900		9,170
Non-monetary items
JPY : NTD	$	861,900	0.2763	$	238,143	$	907,500	0.2760	$	250,470
Financial liabilities
Monetary items
USD : NTD	$	3,081	28.4800	$	87,747	$	3,610	29.9800	$	108,228
RMB : NTD		2,182	4.3633		9,521		996	4.3055		4,288
JPY : NTD		70,741	0.2763		19,546		52,532	0.2760		14,499

• IV. Total exchange gain or loss, including realized and unrealized from significant foreign exchange variations on monetary items held by the Group amounted to $18,840 and $5,005 for the years ended December 31, 2020 and 2019, 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 cash and cash equivalents, accounts receivable and accounts payable denominated in USD. If the NTD:USD exchange rate appreciates/depreciates by 5% with all other factors remaining constant, the Group’s profit for the years ended December 31, 2020 and 2019 would increase/decrease by $1,713 and $4,224, respectively. Foreign exchange risk with respect to JPY primarily arises from the exchange gain or loss resulting from foreign currency translation of cash, financial assets at fair value through other comprehensive income – non-current and accounts payable denominated in JPY. If the NTD:JPY exchange rate appreciates/ depreciates by 5%, with all other factors remaining constant, the Group’s comprehensive income for the years ended December 31, 2020 and 2019 would increase/decrease by $11,702 and $12,397, respectively.

~62~

Price risk

• I. The Group’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 Group diversifies its portfolio. Diversification of the portfolio is done in accordance with the limits set by the Group.

• II. The Group’s investments in equity securities comprise shares and open-ended funds 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%, and open-ended funds increase/decrease by 0.25%, with all other variables held constant, the post-tax profit for the years ended December 31, 2020 and 2019 would have increased/decreased by $9,540 and $8,519, respectively, as a result of gains/losses on equity securities and open-ended funds classified as at fair value through profit or loss. Other components of equity would have increased/decreased by $47,991 and $40,356, 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

• I. The Group’s interest rate risk arises from short-term borrowings and long-term borrowings. Borrowings issued at variable rates expose the Group 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 Group to fair value interest rate risk. During the years ended December 31, 2020 and 2019, the Group’s borrowings at variable rate were mainly denominated in New Taiwan dollars and Philippine Peso.

• II. If the borrowing interest rate had increased/decreased by 0.25% with all other variables held constant, profit, net of tax for the years ended December 31, 2020 and 2019 would have decreased/increased by $3,300 and $1,825, respectively. The main factor is that changes in interest expense result in floating-rate borrowings.

• (b) Credit risk

• I. Credit risk refers to the risk of financial loss to the Group 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 of the contract cash flows of the accounts receivable based on the agreed terms.

• II. The Group 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 Group adopts management of credit risk, whereby the default occurs when the contract payments are past due over 90 days.

• IV. The Group assess whether there has been a significant increase in credit risk on that instrument since initial recognition if the contract payments were past due over 30 days based on the terms.

• V. The Group operates a chain of retail stores, thus the ratio of accounts receivable to total asset is low and the probability that accounts receivable can not be received is low. For accounts receivable from other transactions, the Group manages individually and follow up regularly. The Group classifies customers’ accounts receivable in accordance with credit rating of customer. The Group applies the simplified approach to estimate expected credit loss to assess the default possibility of accounts receivable. Movements in relation to the group applying the simplified approach to provide loss allowance for accounts receivable are as follows:

~63~

			2020
		Accounts receivable
At January 1		$	55,829
Provision for impairment			61,516
Reversal of impairment	(		106)
Write-offs	(		3,413)
Effect of foreign exchange	(		6,341)
At December 31		$	107,485
			2019
		Accounts receivable
At January 1		$	55,464
Provision for impairment			8,640
Reversal of impairment	(		3,978)
Write-offs	(		1,974)
Effect of foreign exchange	(		2,323)
At December 31		$	55,829

• VI. The Group has no written-off financial assets that are still under recourse procedures on December 31, 2020 and 2019.

(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 Group 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 Group held money market funds of $2,105,496 and $1,696,300 as at December 31, 2020 and 2019, respectively, which are expected to readily generate cash inflows for the purpose of managing liquidity risk.

• III. The Group has undrawn borrowing facilities of $12,120,795 and $12,597,913 as of December 31, 2020 and 2019, respectively.

• IV.The table below analyses the Group’s non-derivative financial liabilities into relevant maturity groupings based on the remaining period at the balance sheet date to the contractual maturity date for non-derivative financial liabilities. 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.

~64~

Non-derivative financial liabilities:

December 31, 2020 Short-term borrowings Short-term notes and bills payable Lease liabilities Long-term borrowings (including current portion) Non-derivative financial liabilities: December 31, 2019 Short-term borrowings Lease liabilities Long-term borrowings (including current portion)	Less than 1year 4,741,449 $ 3,399,147 13,963,145 336,467 Less than 1year 6,020,015 $ 12,331,925 244,733	Between 1 and 2years - $ - 13,048,917 162,794 Between 1 and 2years - $ 12,256,464 122,071	Between 2 and3 years - $ - 12,614,870 137,045 Between 2 and3 years - $ 10,678,168 99,136	Over3 years - $ - 44,710,678 798,892 Over3 years - $ 37,312,481 316,524

• V. The Group 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.

(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 Group’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 Group’s investment in equity investments without an active market is included in Level 3.

• B. Fair value information of the Group’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, short-term notes and bills payable, notes payable, accounts payable, other payables and long-term borrowings are approximate to their fair values.

~65~

==> picture [444 x 240] intentionally omitted <==

----- Start of picture text -----

December 31, 2020
Fair value
Book value Level 1 Level 2 Level 3
Financial assets:
Guarantee deposits paid $ 3,106,790 $ - $ - $ 3,092,709
Financial liabilities:
Guarantee deposits received $ 3,784,654 $ - $ - $ 3,764,776
December 31, 2019
Fair value
Book value Level 1 Level 2 Level 3
Financial assets:
Guarantee deposits paid $ 2,911,887 $ - $ - $ 2,887,439
Financial liabilities:
- -
Guarantee deposits received $ 3,560,485 $ $ $ 3,530,355
----- End of picture text -----

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

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:
(a) Classification according to the nature of assets			and liabilities,		relevant information is as
follows:
December 31, 2020		Level 1	Level 2			Level3		Total
Assets
Recurring fair value measurements
Financial assets at fair value
through profit or loss
Beneficiary certificates	$	2,105,496	$	-	$	-	$	2,105,496
Equity securities		-		-		85,523		85,523
		2,105,496		-		85,523		2,191,019
Financial assets at fair value
through other comprehensive
income
Equity securities		955,479		-		4,348		959,827
		955,479		-		4,348		959,827
	$	3,060,975	$	-	$	89,871	$	3,150,846

~66~

==> picture [442 x 218] intentionally omitted <==

----- Start of picture text -----

December 31, 2019 Level 1 Level 2 Level 3 Total
Assets
Recurring fair value measurements
Financial assets at fair value
through profit or loss
- -
Beneficiary certificates $ 1,696,300 $ $ $ 1,696,300
- -
Equity securities 85,565 85,565
1,696,300 - 85,565 1,781,865
Financial assets at fair value
through other comprehensive
income
Equity securities 802,767 - 4,348 807,115
802,767 - 4,348 807,115
$ 2,499,067 $ - $ 89,913 $ 2,588,980
----- End of picture text -----

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

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

Listed shares Open-ended fund Government bond Market quoted price Closing price Net asset value 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, 2020 and 2019, there was no transfer between Level 1 and Level 2.

• F. For the years ended December 31, 2020 and 2019, there was no significant transfer in or out of Level 3.

• G. The Group is in charge of valuation procedures for fair value measurements being categorized within Level 3, which 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 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.

~67~

• 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:

Fair value at Significant Range December Valuation unobservable (weighted Relationship of inputs 31, 2020 technique input average) to fair value Non-derivative equity instrument: Unlisted shares $ 89,871 Market Price to book 2.58 The higher the multiplier, comparable ratio multiplier the higher the fair value companies Net asset value Net asset value - The higher the net asset value, the higher the fair Fair value at Significant Range December Valuation unobservable (weighted Relationship of inputs 31, 2019 technique input average) to fair value Non-derivative equity instrument: Unlisted shares $ 89,913 Market Price to book 2.94 The higher the multiplier, comparable ratio multiplier the higher the fair value Net asset value Net asset value - The higher the net asset value, the higher the fair value

• I. The Group has carefully assessed the valuation models and assumptions used to measure fair value. However, the use of different valuation models or assumptions may result in different measurements. If valuation assumptions from financial assets and liabilities categorized 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, 2020 and 2019.

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: Please refer to Table 3.

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

• 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 4.

• H. Receivables from related parties reaching $100 million or 20% of paid-in capital or more: Please refer to Table 5.

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

• J. Significant inter-company transactions during the reporting periods: Please refer to Table 6.

~68~

(2) Information on investees

Names, locations and other information of investee companies (not including investees in Mainland China): Please refer to Table 7.

• (3) Information on investments in Mainland China

• A. Basic information: Please refer to Table 8.

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

(4) Major shareholders information

List of shareholders holding more than 5% (inclusive) of shares: Please refer to Table 9.

~69~

14. SEGMENT INFORMATION

(1) General information

Management has determined the reportable operating segments based on reports reviewed by the chief operating decision-maker and used to make strategic decisions.

There was no material change in the basis for formation of entities and division of segments in the Group or in the measurement basis for segment information during this period.

The chief operating decision-maker considers the business from industry and geographic perspectives. By industry, the Group focuses on convenience stores, retail business groups, logistics business groups and others. Geographically, the Group focuses on Taiwan and mainland China where most of its business premises are located. As the operation of convenience stores in Taiwan is the focus of the Group, it is classified as a single operating segment. The whole of mainland China is considered the same operating segment.

The revenue of the Group’s reportable segments is derived from the operations of convenience stores, retail business group and logistics business group. Other operating segments include a restaurant-related business group, supporting business group and China business. The supporting business group mainly provides services relating to the Group’s business, such as system maintenance and development and food manufacturing and supply.

(2) Measurement of segment information

The chief operating decision-maker evaluates the performance of the operating segments based on operating revenue and profit before income tax, which are the basis for measuring performance.

~70~

(3) Segment information

The segment information provided to the chief operating decision-maker for the reportable segments is as follows:

External revenue (net) Internal department revenue Total segment revenue Segment income Depreciation and amortization Gain (loss) on investments accounted for using equity method Income tax expense Interest income Interest expense

==> picture [514 x 212] intentionally omitted <==

----- Start of picture text -----

For the year ended December 31, 2020
Convenience Retail Logistics Other operating Adjustment and
stores business group business group segments elimination Total
-
$ 167,339,677 $ 68,955,912 $ 2,116,524 $ 20,082,794 $ $ 258,494,907
808,179 2,336,231 14,201,019 7,885,309 ( 25,230,738) -
$ 168,147,856 $ 71,292,143 $ 16,317,543 $ 27,968,103 ($ 25,230,738) $ 258,494,907
$ 11,714,515 $ 2,564,422 $ 1,346,435 $ 352,244 ($ 2,167,160) $ 13,810,456
($ 9,998,105) ($ 5,632,615) ($ 1,277,717) ($ 3,053,893) ($ 109,952) ($ 20,072,282)
$ 3,092,323 ($ 34,839) $ 163,640 ($ 786,707) ($ 2,011,010) $ 423,407
($ 1,476,353) ($ 536,740) ($ 233,528) ($ 262,409) $ 38,832 ($ 2,470,198)
$ 32,588 $ 59,074 $ 8,786 $ 405,192 ($ 1) $ 505,639
($ 394,400) ($ 714,568) ($ 45,644) ($ 170,838) $ 4,064 ($ 1,321,386)
----- End of picture text -----

~71~

				For	For	the yearended	December31,2019	December31,2019	December31,2019
	Convenience			Retail		Logistics	Other operating		Adjustment and
		stores	business group		business group			segments		elimination		Total
External revenue (net)	$	157,416,544	$	76,009,484	$	2,100,351	$	20,532,509	$	-	$	256,058,888
Internal department revenue		615,023		2,235,363		13,367,407		7,194,186	(	23,411,979)		-
Total segment revenue	$	158,031,567	$	78,244,847	$	15,467,758	$	27,726,695	($	23,411,979)	$	256,058,888
Segment income	$	12,220,466	$	3,866,585	$	1,237,098	$	2,853,051	($	5,013,013)	$	15,164,187
Depreciation and amortization	($	9,042,048)	($	5,384,084)	($	1,281,129)	($	2,937,381)	($	107,269)	($	18,751,911)
Gain (loss) on investments accounted
for using equity method	$	4,185,310	($	13,562)	$	149,382	$	1,024,423	($	4,864,555)	$	480,998
Income tax expense	($	1,677,606)	($	904,776)	($	221,432)	($	287,096)	$	38,832	($	3,052,078)
Interest income	$	38,037	$	43,583	$	9,128	$	703,151	($	1)	$	793,898
Interest expense	($	359,593)	($	634,522)	($	50,629)	($	175,457)	$	4,201	($	1,216,000)

~72~

(4) Reconciliation of segment income (loss)

Revenue from external customers and segment income (loss) reported to the Chief Operating Decision-Maker are measured using the same method as for revenue and profit before tax in the financial statements. Thus, no reconciliation is needed.

(5) Information on products and services

Revenue from external customers is mainly from retail services and services provided. Details of revenue is as follows:

revenue is as follows:
Convenience stores(including foreign subsidiary) Sales of daily items Restaurants Delivery service Gas station Logistics service Others	For the year ended	For the year ended
	December31,2020	December31,2019
	196,066,539 $ 24,486,904 12,374,598 11,572,742 7,901,725 2,116,524 3,975,875 258,494,907 $	192,059,882 $ 24,183,746 12,659,972 10,781,896 10,272,603 2,100,351 4,000,438 256,058,888 $

(6) Geographical information

As of and for the years ended December 31, 2020 and 2019, the information on geographic area is as follows:

as follows:
Taiwan Others	Non-current Revenue assets 2020		Non-current Revenue assets 2019
	Revenue		Revenue
	224,809,048 $ 33,685,859 258,494,907 $	107,215,175 $ 12,187,344 119,402,519 $	216,098,825 $ 39,960,063 256,058,888 $	95,664,520 $ 13,221,473 108,885,993 $

(7) Major customer information

No customers constituted more than 10% of the Group’s total revenue for the years ended December 31, 2020 and 2019.

~73~

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, 2020

		December 31, 2020
Table 1 Securities held by	Type and name of securities	Relationship with the securities issuer	General ledger account		As of Decemb	Expressed in thousa (Except as otherwis er 31,2020		Footnote nds of NTD e indicated)
				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. 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-President Department Store Corp. Uni-President Department Store Corp. President Information 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 Capital Money Market Fund Union Money Market Fund Taishin 1699 Money Market Fund UPAMC James Bond Money Market Fund Union Money Market Fund FSITC Taiwan Money Market Fund Allianz Global Investors Taiwan Money Market Fund Taishin 1699 Money Market Fund Prudential Financial Money Market Fund Jih Sun Money Market Fund FSITC Taiwan Money Market Fund Prudential Financial Money Market Fund Jih Sun Money Market Fund Union 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 Investee 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 38,985,684 300,000 650,000 2,675,943 1,229,732 3,756,884 5,960,766 2,725,601 22,539,952 18,142,352 19,789,597 7,328,208 225,636 13,307,511 3,663,272 5,430,438 4,968,959 3,005,327 4,499,979 772,065 499,153 2,957,710 25,961,335	45,298 $ 14,504 25,721 - - 717,337 238,142 4,348 40,005 $ 20,002 50,003 81,340 45,902 300,000 280,000 250,000 100,000 3,600 198,948 56,537 86,642 74,286 40,000 61,406 13,002 7,462 40,361 356,000	7.60 5.37 0.92 6.67 - 2.79 0.61 10.00 - - - - - - - - - - - - - - - - - - - -	45,298 $ 14,504 25,721 - - 717,337 238,142 4,348 40,005 $ 20,002 50,003 81,340 45,902 300,000 280,000 250,000 100,000 3,600 198,948 56,537 86,642 74,286 40,000 61,406 13,002 7,462 40,361 356,000

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, 2020

Table 2 Investor	Type andname ofsecurities	General ledger account	Counterparty	Relationship with theinvestor	Balance January1	as at ,2020	Add	ition		Disposal	Disposal		Other increa	se (decrease)	Expressed in (Except as o Balance as atDec	thousands of NTD therwise indicated) ember31,2020
					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
President Chain Store Corp. Books.com. Co., Ltd. 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. Uni-President Department Store Corp. Uni-President Department Store Corp. President Information Corp. President Logistics International Corp. President Logistics International Corp. President Pharmaceutical Corp. Q-ware Systems & Services Corp. President Chain Store (Hong Kong) Holdings Limited	Beneficiary certificates: UPAMC James Bond Money Market Fund Jih Sun Money Market Fund Capital Money Market Fund CTBC Hwa-win Money Market Fund Taishin 1699 Money Market Fund UPAMC James Bond Money Market Fund Union Money Market Fund FSITC Taiwan Money Market Fund Allianz Global Investors Taiwan Money Market Fund Taishin 1699 Money Market Fund Prudential Financial Money Market Fund Nomura Money Market Fund Taishin 1699 Money Market Fund UPAMC James Bond Money Market Fund Jih Sun Money Market Fund Union 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 Stock: President Chain Store (Shanghai) Ltd.	Note 1 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 Note 2	Not applicable 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 Issuance of common stock for cash	Not applicable 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 Parent company to subsidiary	- 1,344,764 - - 6,846,847 1,698,941 - 19,527,436 15,898,378 12,514,539 18,260,010 - - - - - 736,692 864,391 1,464 19,990,627 -	- $ 20,005 - - 93,009 28,505 - 300,000 200,000 170,000 290,000 - - - - - 10,007 14,503 20 273,000 103,731 $	59,449,851 161,639,258 34,276,697 52,306,259 80,993,369 28,099,894 92,542,496 84,387,942 107,010,614 54,340,339 36,447,972 19,509,550 193,677,816 91,578,664 125,172,585 32,882,015 46,269,683 21,820,980 78,416,917 216,123,478 -	1,000,000 $ 2,403,000 557,000 580,000 1,102,900 472,500 1,230,000 1,300,000 1,350,000 740,000 580,000 320,000 2,637,000 1,539,700 1,869,987 437,000 630,300 367,000 1,067,860 2,960,000 523,594 $	59,449,851 160,308,079 33,046,965 52,306,259 81,879,450 27,073,234 70,002,544 85,773,026 103,119,395 59,526,670 54,707,982 19,509,550 193,677,816 91,578,664 111,865,074 29,876,688 42,506,396 21,913,306 75,460,671 210,152,770 -	1,000,309 $ 2,383,881 537,143 580,163 1,114,892 455,198 930,779 1,321,113 1,300,888 810,368 870,786 320,096 2,637,415 1,540,045 1,671,447 397,118 579,007 368,548 1,027,865 2,877,709 - $	1,000,000 $ 2,383,000 537,000 580,000 1,114,567 455,100 930,000 1,320,000 1,300,000 810,000 870,000 320,000 2,637,000 1,539,700 1,671,040 397,000 578,904 368,499 1,027,530 2,877,000 - $	309 $ 881 143 163 325 98 779 1,113 888 368 786 96 415 345 407 118 103 49 335 709 - $	- - - - - - - - - - - - - - - - - - - - -	- $ - 2 - 2) ( 3) ( - - - - - - - - 1 - 3 2) ( 11 - 182,293) ($	- 2,675,943 1,229,732 - 5,960,766 2,725,601 22,539,952 18,142,352 19,789,597 7,328,208 - - - - 13,307,511 3,005,327 4,499,979 772,065 2,957,710 25,961,335 -	- $ 40,005 20,002 - 81,340 45,902 300,000 280,000 250,000 100,000 - - - - 198,948 40,000 61,406 13,002 40,361 356,000 445,032 $

Note 1: The security was recognized as "Financial assets at fair value through profit or loss–current".

Note 2: The security was recognized as "Investments accounted for using equity method".

Table 2 Page 1

Expressed in thousands of NTD (Except as otherwise indicated)

Table 3

PRESIDENT CHAIN STORE CORP. AND SUBSIDIARIES Acquisition of real estate reaching $300 million or 20% of paid-in capital or more For the year ended December 31, 2020

Corporation of acquisition	Name ofproperty	Date ofacquisition	Trade amount	Status of payment pfproceeds	Name of the counter-party	Relationship	T	helast transferda	ta od counter-party	ta od counter-party	Basis for price determination	Reason for acquisition	otherterms
							Owner	Relationship	Transfer Day	Amount
Uni-President Cold-Chain Corp.	Land of Jinhua Nuannuan Dist., Keelung City	November 20,2020	642,000 $	100% of price was paid	Tze Shin International Co., Ltd.	Not applicable	Not applicable	Not applicable	Not applicable	Not applicable	Based on the appraisal results of Evermore Valuation and market conditions to bargain.	Based on the comprehensive planning of the company	Not applicable

Table 3 page 1

Expressed in thousands of NTD (Except as otherwise indicated)

Table 4

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, 2020

Purchaser/seller	Counterparty	Relationship with the counterparty			Transaction		Differences in t compared t transa	ransaction terms o third party ctions	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.	Uni-President Enterprises Corp. Ultimate parent company Uni-President Superior Commissary Corp. Subsidiary Tung Ang Enterprises Corp. Sister company 21 Century Co., Ltd. Subsidiary Q-ware Systems & Services Corp. 〃 Kai Ya Food Co., Ltd. Sister company Lien Bo Corp. 〃 Kuang Chuan Dairy Co., Ltd. Other related party Tait Marketing & Distribution Co., Ltd. Sister company President Packaging Industrial Corp. 〃 President Transnet Corp. Subsidiary President Pharmaceutical Corp. 〃 Wei Lih Food Industrial Co., Ltd. Other related party President Chain Store Corp. Parent company President Transnet Corp. Subsidiary of President Chain Store Corp. President Logistics International Corp. Parent company Chieh Shun Logistics International Corp. Subsidiary of President Chain Store Corp. President Chain Store Corp. Parent company Uni-President Enterprises Corp. Ultimate parent company Tong Zhan Corporation Ltd. Other related party Retail Support International Corp. Subsidiary of President Chain Store Corp. Tait Marketing & Distribution Co., Ltd. Other related party		Purchases 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 Service revenue Delivery revenue 〃 Service cost Sales revenue Purchases 〃 〃 〃	16,248,126 $ 4,011,077 2,257,958 610,638 589,592 580,071 535,933 533,167 468,295 417,431 392,499 371,590 284,004 213,642) ( 693,339) ( 1,172,069) ( 693,339 392,499) ( 361,526 992,081 215,922 118,823	15 4 2 1 1 1 - - - - - - - 64) ( 36) ( 61) ( 7 63) ( 8 23 5 3	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 30~60 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 40 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 30~65 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 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 45~60 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 30 days from the end of the month when invoice is issued	No significant differences 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃	No significant differences 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃	1,360,290) ($ 714,114) ( 177,619) ( 117,521) ( 108,442) ( 87,249) ( 64,519) ( 107,328) ( 92,912) ( 94,417) ( 56,423) ( 115,292) ( 34,961) ( 39,835 82,723 113,019 82,723) ( 56,423 33,539) ( 114,190) ( 19,188) ( 6,643) (	8) ( 4) ( 1) ( 1) ( 1) ( 1) ( - 1) ( 1) ( 1) ( - 1) ( - 57 41 56 4) ( 4 6) ( 20) ( 3) ( 1) (

Table 4 Page 1

Expressed in thousands of NTD (Except as otherwise indicated)

Table 4

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, 2020

Purchaser/seller	Counterparty	Relationship with the counterparty			Transaction		Differences in t compared t transa	ransaction terms o third party ctions	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 Information Corp. 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. Duskin Serve Taiwan Co., Ltd. ICASH Corp.	President Chain Store Corp. Chieh Shun Logistics International Corp. Retail Support International Corp. Uni-President Cold-Chain Corp. Wisdom Distribution Service Corp. Retail Support Taiwan 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. President Chain Store Corp. President Chain Store Corp.	Parent company 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 Parent company 〃	Service revenue Service cost Delivery revenue 〃 〃 〃 Service cost 〃 Delivery revenue Service cost 〃 Service revenue 〃 Purchases Sales revenue 〃 〃 〃 Delivery revenue 〃 Service cost Service revenue 〃	1,010,132) ($ 1,172,069 666,411) ( 1,179,022) ( 1,208,703) ( 100,839) ( 312,451 666,411 215,922) ( 1,179,022 1,208,703 303,923) ( 589,592) ( 536,769 536,769) ( 371,590) ( 610,638) ( 4,011,077) ( 312,451) ( 124,005) ( 124,005 197,497) ( 165,619) (	68) ( 37 20) ( 35) ( 36) ( 3) ( 19 40 7) ( 38 45 9) ( 61) ( 5 34) ( 24) ( 47) ( 98) ( 78) ( 29) ( 21 15) ( -	Net 45 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 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 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	No significant differences 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃	No significant differences 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃	109,070 $ 113,019) ( 78,669 109,368 152,473 9,405 11,540) ( 78,669) ( 19,188 109,368) ( 152,473) ( 27,021 108,442 12,589) ( 12,589 115,292 117,521 714,114 11,540 35,465 35,465) ( 32,930 31,207	54 32) ( 21 30 41 3 8) ( 55) ( 11 2) ( 33) ( 35 71 1) ( 3 27 60 100 50 56 31) ( - 63

Table 4 Page 2

Table 4

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, 2020

Expressed in thousands of NTD (Except as otherwise indicated)

Purchaser/seller	Counterparty	Relationship with the counterparty			Transaction		Differences in t compared t transa	ransaction terms o third party ctions	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 Logistic ShanDong Co., Ltd. Shan Dong President Yinzuo Commercial Limited	Shan Dong President Yinzuo Commercial Limited President Logistic ShanDong Co., Ltd.	Subsidiary of President Chain Store Corp. 〃	Delivery revenue Service cost	113,121) ($ 113,121	95) ( 5	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	No significant differences 〃	No significant differences 〃	9,456 $ 9,456) (	91 3) (

Table 4 Page 3

Table 5

PRESIDENT CHAIN STORE CORP. AND SUBSIDIARIES

Receivables from related parties reaching $100 million or 20% of paid-in capital or more December 31, 2020

Expressed in thousands of NTD (Except as otherwise indicated)

Creditor	Counterparty	Relationship with the counterparty	Balance as of December 31,2020	Turnover rate	Overdue r	eceivables	Amount collected subsequent to the balance sheet date	Allowance for doubtful accounts
					Amount	Action taken
Uni-President Superior Commissary Corp. 21 Century Co., Ltd. President Pharmaceutical Corp. President Information Corp. Q-ware Systems & Services Corp. President Logistics International Corp. Chieh Shun Logistics International Corp. President Logistics International Corp.	President Chain Store Corp. President Chain Store Corp. President Chain Store Corp. President Chain Store Corp. President Chain Store Corp. Wisdom Distribution Service Corp. President Logistics International Corp. Uni-President Cold-Chain Corp.	Parent company 〃 〃 〃 〃 Subsidiary of President Chain Store Corp. 〃 〃	714,114 $ 117,521 115,292 109,070 108,442 152,473 113,019 109,368	5.80 6.27 4.09 8.64 5.41 9.11 11.19 11.42	- $ - - - - - - -	None 〃 〃 〃 〃 〃 〃 〃	355,971 $ 72,270 48,097 5,083 75,462 139,706 113,019 109,166	- $ - - - - - - -

Table 5 Page 1

Table 6

Expressed in thousands of NTD (Except as otherwise indicated)

PRESIDENT CHAIN STORE CORP. AND SUBSIDIARIES

Significant inter-company transactions during the reporting periods

For the year ended December 31, 2020

Table 6							Expressed in thousands of NTD (Except as otherwise indicated)
Number	Companyname	Counterparty	Relationship			Transaction
				General ledger account	Amount	Transaction terms	Percentage of consolidated total operating revenues or total assets
1 2 3 3 4 4 5 5 6 6 6 7 8 8 8 9 9 9 9 9 9 10 11 11	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 Pharmaceutical Corp. President Transnet Corp. Chieh Shun Logistics International 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. President Logistics International Corp. President Logistics International Corp. Duskin Serve Taiwan Co., Ltd. 21 Century Co., Ltd. 21 Century Co., Ltd.	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 Chain Store Corp. President Logistics International 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. Uni-President Cold-Chain Corp. Retail Support Taiwan Corp. President Chain Store Corp. President Chain Store Corp. President Chain Store Corp.	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 parent company Subsidiary to subsidiary Subsidiary to subsidiary Subsidiary to subsidiary 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 parent company	Other operating revenue Service revenue Service revenue Accounts receivable Service revenue Accounts receivable Sales revenue Accounts receivable Sales revenue Sales revenue Accounts receivable Sales revenue Delivery revenue Accounts receivable Delivery revenue Delivery revenue Delivery revenue Delivery revenue Accounts receivable Accounts receivable Delivery revenue Service revenue Sales revenue Accounts receivable	445,218) ($ 213,642) ( 1,010,132) ( 109,070 589,592) ( 108,442 4,011,077) ( 714,114 536,769) ( 371,590) ( 115,292 392,499) ( 1,172,069) ( 113,019 693,339) ( 666,411) ( 1,179,022) ( 1,208,703) ( 152,473 109,368 100,839) ( 197,497) ( 610,638) ( 117,521	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 60-70 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 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 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 30-60 days from the end of the month when invoice is issued	0.17 0.08 0.39 0.05 0.23 0.05 1.55 0.34 0.21 0.14 0.06 0.15 0.45 0.05 0.27 0.26 0.46 0.47 0.07 0.05 0.04 0.08 0.24 0.06

Table 6 Page 1

Table 6

PRESIDENT CHAIN STORE CORP. AND SUBSIDIARIES

Significant inter-company transactions during the reporting periods

For the year ended December 31, 2020

Expressed in thousands of NTD (Except as otherwise indicated)

Table 6							Expressed in thousands of NTD (Except as otherwise indicated)
Number	Companyname	Counterparty	Relationship			Transaction
				General ledger account	Amount	Transaction terms	Percentage of consolidated total operating revenues or total assets
12 13 14 15 16 17	Wisdom Distribution Service Corp. Retail Support Taiwan Corp. Zhejiang Uni-Champion Logistics Development Co., Ltd. ICASH Corp. Retail Support International Corp. President Logistic ShanDong Co., Ltd.	Books.com. Co., Ltd. Retail Support International Corp. Shanghai President Logistic Co., Ltd. President Chain Store Corp. Uni-Wonder Corp. Shan Dong President Yinzuo Commercial Limited	Subsidiary to subsidiary Subsidiary to subsidiary Subsidiary to subsidiary Subsidiary to parent company Subsidiary to subsidiary Subsidiary to subsidiary	Service revenue Delivery revenue Delivery revenue Service revenue Delivery revenue Delivery revenue	303,923) ($ 312,451) ( 124,005) ( 165,619) ( 215,922) ( 113,121) (	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 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	0.12 0.12 0.05 0.06 0.08 0.04

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

Table 6 Page 2

Table 7

Expressed in thousands of NTD (Except as otherwise indicated)

PRESIDENT CHAIN STORE CORP. AND SUBSIDIARIES

Names, locations and other information of investee companies (not including investees in Mainland China) For the year ended Decmeber 31, 2020

Investor	Investee	Location	Main business activities	Initial invest	ment amount	Shares held	as at Decemb	er31,2020	Net profit (loss) of the investee for the year ended December 31, 2020	Investment income (loss) recognized by the Company for the year ended December 31, 2020	Footnote
				Balance as at December 31, 2020	Balance as at December 31, 2019	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 (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 Consultant Corp. PCSC (China) Drugstore Limited	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	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 and electronic payment 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	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	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	171,589,586 78,520,000 103,496,399 55,858,815 22,121,962 27,999,999 48,519,890 42,934,976 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	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	25,102,119 $ 1,445,303 1,882,686 747,097 699,003 530,898 526,475 910,506 499,116 392,745 516,295 412,559 24,996 208,040 580,833 757,759 5,078,516 171,835 5,434,309 2,084,800 445,096 33,133 64,566 78,709 67,038	140,337) ($ 287,519 904,170 149,825 113,382 224,008 45,327 389,793 86,576 85,373 306,530 409,682 16) ( 160,701 14,687 108,246 645,759 219,575 1,943,841 238,917 651,363 582,122) ( 9,630) ( 44,478 1,587	140,337) ($ 287,519 632,919 121,165 83,608 156,806 40,794 233,876 74,456 73,862 306,530 204,945 16) ( 82,001 14,687 21,649 294,258 54,894 381,499 45,394 18,992 73,312) ( 9,630) ( 44,478 1,463	Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Note Subsidiary Subsidiary Note Note Note Note Subsidiary Subsidiary Subsidiary

Table 7 Page 1

Table 7

PRESIDENT CHAIN STORE CORP. AND SUBSIDIARIES

Names, locations and other information of investee companies (not including investees in Mainland China) For the year ended Decmeber 31, 2020

Expressed in thousands of NTD (Except as otherwise indicated)

Investor	Investee	Location	Main business activities	Initial invest	ment amount	Shares held	as at Decemb	er31,2020	Net profit (loss) of the investee for the year ended December 31, 2020	Investment income (loss) recognized by the Company for the year ended December 31, 2020	Footnote
				Balance as at December 31, 2020	Balance as at December 31, 2019	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. Books.com. Co., Ltd. Mech-President Corp. 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.	President Chain Store Corporation Insurance Brokers Co., Ltd. Cold Stone Creamery Taiwan Ltd. President Being Corp. 21 Century Co., Ltd. President Chain Store Tokyo Marketing Corp. Uni-President Oven Bakery Corp. President Collect Service Corp. Mister Donut Taiwan Co., Ltd. Uni-President Organics Corp. President Technology Corp. Books.com. (BVI) Ltd. Tong Ching Corporation 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.	Taiwan Taiwan Taiwan Taiwan Japan Taiwan Taiwan Taiwan Taiwan Taiwan British Virgin Islands Taiwan British Virgin Islands Malaysia Hong Kong Philippines Taiwan Hong Kong Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan	Insurance brokers Sales of ice cream Sports and entertainment business Operation of chain restaurants Trade and enterprise management consultancy Bread and pastry retailer Collection agent Bakery retailer Health care products and organic food Software development and call center service Professional investment Gas station Professional investment Professional investment Professional investment Convenience sotre 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	213,000 $ 170,000 170,000 160,680 35,648 391,300 10,500 200,000 47,190 7,500 - 9,600 21,075 830,572 4,435,957 829,774 180,000 178,024 - - - - - -	213,000 $ 170,000 170,000 160,680 35,648 391,300 10,500 200,000 47,190 7,500 1,478 9,600 21,075 830,572 4,435,957 829,774 180,000 178,024 - - - - - -	1,500,000 12,244,390 1,500,000 10,000,000 9,800 6,511,963 1,049,999 7,500,049 1,833,333 750,000 - 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	100.00 100.00 100.00 100.00 100.00 100.00 70.00 50.00 36.67 15.00 - 60.00 7.80 100.00 100.00 52.22 100.00 100.00 - - - - - -	33,271 $ 23,180 30,854) ( 131,869 90,560 91,507) ( 93,370 98,554 42,447 25,543 - 22,067 5,671 2,329,244 3,808,139 2,327,307 338,745 38,650 - - - - - -	15,373 $ 17,591 2,085 43,239 8,699 49,243) ( 104,121 21,028 26,295 59,960 30) ( 6,887 1,587 133,352) ( 247,729) ( 248,214) ( 42,467 21,300) ( 409,682 224,008 149,825 86,576 904,170 85,373	15,373 $ 17,591 2,085 43,239 8,706 49,243) ( 72,887 10,514 9,643 9,028 30) ( 4,132 124 133,352) ( 244,378) ( 122,915) ( 42,467 21,300) ( - - - - - -	Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Note Note Note 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 7 Page 2

Table 7

Expressed in thousands of NTD (Except as otherwise indicated)

PRESIDENT CHAIN STORE CORP. AND SUBSIDIARIES

Names, locations and other information of investee companies (not including investees in Mainland China) For the year ended Decmeber 31, 2020

Investor	Investee	Location	Main business activities	Initial invest	ment amount	Shares held	as at Decemb	er31,2020	Net profit (loss) of the investee for the year ended December 31, 2020	Investment income (loss) recognized by the Company for the year ended December 31, 2020	Footnote
				Balance as at December 31, 2020	Balance as at December 31, 2019	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. Philippine Seven Corp. Philippine Seven Corp.	Duskin Serve Taiwan Co., Ltd. President Pharmaceutical Corp. Mister Donut Taiwan Co., Ltd. Uni-President Superior Commissary Corp. Uni-President Cold-Chain Corp. Retail Support International Corp. President Collect Service Corp. 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. 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 Philippines Philippines	Cleaning instruments leasing and selling 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 Professional investment Room-temperature logistics and warehousing Trucking Trucking Trucking Professional investment Trucking Logistic, warehousing and retail Professional investment	- $ - - - - - - 60,374 15,300 44,975 5,425 23,850 87,994 18,850 26,683 28,902	- $ - - - - - - 60,374 15,300 44,975 5,425 23,850 87,994 18,850 26,683 28,902	1 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	- $ - - - - - - 49,316 77,872 177,853 21,778 90,741 108,970 72,593 26,683 28,902	160,701 $ 113,382 21,028 45,327 389,793 219,575 104,121 13,354) ( 47,846 87,088 87,088 87,088 9,683 87,088 6,584) ( 1,110	- $ - - - - - - 13,354) ( 24,401 42,673 5,225 21,772 9,683 17,418 - -	Subsidiary of a subsidiary Subsidiary of a subsidiary Note 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: The investee was recognized using equity method by the company.

Table 7 Page 3

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

For the year ended December 31, 2020

Table 8 Investee in Mainland China	Main business activities	Paid-in capital	Investment method	Accumulated amount of remittance from Taiwan to Mainland China as of January1,2020	Taiwan to China/ A remitted Taiwan for end	Mainland mount back to the year ed	Accumulated amount of remittance from Taiwan to Mainland China as of December 31, 2020	Net profit(loss) of investee for the year ended December 31, 2020	Ownership held by the Company (direct or indirect)	Investment income (loss) recognized by the Company for the year ended December 31,2020	Book value of investments in December 31,2020 Accumulated amount of investment income remitted back to Taiwan as of December 31,2020 Expressed in thousa (Except as otherwis	Book value of investments in December 31,2020 Accumulated amount of investment income remitted back to Taiwan as of December 31,2020 Expressed in thousa (Except as otherwis	Footnote nds of NTD e indicated)
					Remitted to Mainland China	Remitted back to Taiwan
President Cosmed Chain Store (Shen Zhen) Co., Ltd. President Chain Store (Shanghai) Ltd. Shanghai President Logistic Co., Ltd. Shanghai Cold Stone Ice Cream Corporation Ltd. 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.	Wholesale of merchandise Covenience Store Logistics and warehousing Sales of ice cream 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 Covenience Store Sales of cosmetics and daily items	436,328 $ 2,705,234 56,960 - 261,797 170,854 174,531 - 261,797 218,164 610,859 130,898	Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1	268,204 $ 2,181,640 56,960 932,408 116,152 170,854 166,113 - 261,797 218,164 610,859 130,898	- $ 523,594 - - - - - - - - - -	- $ - - - - - - - - - - -	268,204 $ 2,705,234 56,960 932,408 116,152 170,854 166,113 - 261,797 218,164 610,859 130,898	1,749 $ 180,254) ( 37,464 23,687 87,492) ( 18,127) ( 19,608 25) ( 26,613 8,942 118,971) ( 41,326) (	100.00 100.00 100.00 - 55.00 73.74 80.00 - 100.00 100.00 100.00 100.00	1,749 $ 180,254) ( 37,464 23,687 48,776) ( 12,986) ( 15,735 13) ( 26,613 7,327 118,971) ( 41,326) (	72,239 $ 445,032 522,063 - 139,417 8,938 174,358 - 382,820 205,600 173,272 34,898	- $ - - - 7,405 53,264 24,275 - - - - -	Note 2 Note 2 Note 2 Note 3 Note 2 Note 2 Note 2 Note 4 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.

Note 3: The procedures for liquidation and cancellation of registration of Shanghai Cold Stone Ice Cream Corporation Ltd. has been completed in November 2020. Note 4: The procedures for liquidation and cancellation of registration of Bejing Bokelai Customer Co. has been completed in July 2020.

Companyname	Accumulated amount of remittance from Taiwan to Mainland China as of December 31,2020	Investment amount approved by the Investment Commission of the Ministry of Economic Affairs(MOEA)	Ceiling on investments in Mainland China imposed by the Investment Commission of MOEA
President Chain Store Corp. President Pharmaceutical Corp. Uni-President Cold-Chain Corp. Ren-Hui Investment Corp.	4,389,851 $ 170,854 84,512 49,079	49,079 8,682,809 $ 170,854 84,512	80,000 26,986,619 $ 439,547 898,181

Table 8 Page 1

PRESIDENT CHAIN STORE CORP. AND SUBSIDIARIES

List of shareholders holding more than 5% (inclusive) of shares

December 31, 2020

Table 9

	Shares held as at Decmeber 31,2020	Shares held as at Decmeber 31,2020
	Numberofshares	Ownership (%)
Uni-President Enterprises Corp.	471,996,430	45.40%

Note : The above information is provided by the Taiwan Depository & Clearing Corp.

Table 9 Page 1