PCSC — Audit Report / Information 2020

Dec 1, 2020

PRESIDENT CHAIN STORE CORP.

PARENT COMPANY ONLY

FINANCIAL STATEMENTS AND INDEPENDENT AUDITORS’ REPORT

DECEMBER 31, 2020 AND 2019

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

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PRESIDENT CHAIN STORE CORP.

PARENT COMPANY ONLY

FINANCIAL STATEMENTS AND INDEPENDENT AUDITORS’ REPORTS DECEMBER 31, 2020 AND 2019

CONTENTS

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

Page/Reference

1 2 ~ 3 4 ~ 9 10 ~ 11 12 13 14 ~ 15 16 ~ 63 16 16 16 ~ 17 17 ~ 27 27 27 ~ 49 50 ~ 53 53 53 53 53 53 ~ 61 61 61

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

Page/Reference

Statement 1 Statement 2 Statement 3 Statement 4 Statement 5 Statement 6 Statement 7 Statement 8 Statement 9 Statement 10 Statement 11 Statement 12 Statement 13 Statement 14

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REPORT OF INDEPENDENT AUDITORS REPORT TRANSLATED FROM CHINESE

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

Opinion

We have audited the accompanying parent company only balance sheets of President Chain Store Corp. as at December 31, 2020 and 2019, and the related parent company only statements of comprehensive income, of changes in equity, and of cash flows for the years then ended, and the notes to the parent company only financial statements, including a summary of significant accounting policies.

In our opinion, based on our audits and the reports of other auditors (please refer to the Other matter section), the accompanying parent company only financial statements present fairly, in all material respects, the parent company only financial position of President Chain Store Corp. as at December 31, 2020 and 2019, and its parent company only financial performance and its parent company only cash flows for the years then ended in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers.

Basis for opinion

We conducted our audits in accordance with the Regulations Governing Auditing and Attestation of Financial Statements by Certified Public Accountants and generally accepted auditing standards in the Republic of China. Our responsibilities under those standards are further described in the Auditors’ responsibilities for the audit of the parent company only financial statements section of our report. We are independent of the Company in accordance with the 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 parent company only financial statements for the year ended December 31, 2020. These matters were addressed in the context of our audit of the parent company only financial statements as a whole, and in forming our opinion thereon, we do not provide a separate opinion on these matters. Key audit matters for the Company’s parent company only financial statements for the year ended

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December 31, 2020 are stated as follows:

Completeness and accuracy of retail sales revenue

Description

Please refer to Notes 4(23) and 6(22) to the parent company only 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 the sales information to the ERP (enterprise resource planning) system, which summarizes all sales and automatically generates sales revenue journal entries. Each store manager also prepares a daily cash report to record the sales information and payment methods (including cash, gift certificates, credit cards and electronic payment devices, etc.) and the cash deposited to the bank.

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

How our audit addressed the matter

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

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

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

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

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

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

6. Inspected daily cash reports and relevant documents; and

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

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Cost-to-retail ratio of retail inventory method

Description

Please refer to Notes 4(11) and 6(3) to the parent company only financial statements for the accounting policy and the details of 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 their retail value (known as cost-to-retail ratio) to calculate the cost of inventory and the cost of goods sold. The calculation of the cost-to-retail ratio highly relies on the goods purchased both at cost and retail price, and thus has been identified as a key audit matter.

How our audit addressed the matter

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

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

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

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

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

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

Other matter –Reference to the audits of other auditors

We did not audit the financial statements of certain investments accounted for using equity method which were audited by other auditors. Therefore, our opinion expressed herein, insofar as it relates to the amounts included in respect of these subsidiaries, associates and joint ventures, and the information on investees disclosed in Note 13, is based solely on the reported of the other auditors. The balance of these investments accounted for using equity method amounted to NT$2,327,307 thousand and NT$2,528,945 thousand, constituting 1.6% and 1.9% of parent company only total assets as at December 31, 2020 and 2019, respectively, and the related total comprehensive net income (including

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share of profit of subsidiaries, associates and joint ventures accounted for using equity method and share of other comprehensive income of subsidiaries, associates and joint ventures accounted for using equity method) amounted to (NT$134,437) thousand and NT$412,872 thousand, constituting (1.5%) and 4.1% of parent company only total comprehensive net income for the years then ended, respectively.

Responsibilities of management and those charged with governance for the parent company only financial statements

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

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

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

Auditors’ responsibilities for the audit of the parent company only financial statements

Our objectives are to obtain reasonable assurance about whether the parent company only financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ 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 generally accepted auditing standards 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 parent company only financial statements.

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

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

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

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

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

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

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

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

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the parent company only financial statements for the current period and are therefore 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 26 February, 2021

----------------------------------------------------------------------------------------------------------------------------- -------------------The accompanying parent company only financial statements are not intended to present the financial position and results of operations and cash flows in accordance with accounting principles generally accepted in countries and jurisdictions other than the Republic of China. The standards, procedures and practices in the Republic of China governing the audit of such financial statements may differ from those generally accepted in countries and jurisdictions other than the Republic of China. Accordingly, the accompanying parent company only financial statements and 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.

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

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PRESIDENT CHAIN STORE CORP. PARENT COMPANY ONLY BALANCE SHEETS

(Expressed in thousands of New Taiwan dollars)

Assets	Notes 6(1) 6(2) 7(3) 6(3) 6(4) 6(5) 6(6) and 7(3) 6(7) 6(8) and 7(3) 6(10) 6(11) 6(29) 6(12)	December 31, 2020 AMOUNT % $ 10,997,277 8 592,746 1 3,052,702 2 8,891,933 6 131,058 - 1,608,083 1 25,273,799 18 85,523 - 959,827 1 49,110,865 35 12,233,732 9 50,276,653 35 1,183,875 1 162,265 - 715,841 - 1,501,570 1 116,230,151 82 $ 141,503,950 100	December 31, 2019	December 31, 2019
		AMOUNT $ 10,997,277 592,746 3,052,702 8,891,933 131,058 1,608,083 25,273,799 85,523 959,827 49,110,865 12,233,732 50,276,653 1,183,875 162,265 715,841 1,501,570 116,230,151 $ 141,503,950	AMOUNT $ 10,697,878 591,655 2,274,167 8,036,366 126,974 1,393,703 23,120,743 85,565 807,115 50,117,541 10,477,703 44,373,492 1,203,684 84,728 800,250 1,393,227 109,343,305 $ 132,464,048	%
Current assets 1100 Cash and cash equivalents 1170 Accounts receivable, net 1200 Other receivables 130X Inventories, net 1410 Prepayments 1470 Other current assets 11XX Total current assets Non-current assets 1510 Financial assets at fair value through profit or loss – non-current 1517 Financial assets at fair value through other comprehensive income – non-current 1550 Investments accounted for using equity method 1600 Property, plant and equipment, net 1755 Right-of-use assets 1760 Investment property, net 1780 Intangible assets 1840 Deferred income tax assets 1900 Other non-current assets 15XX Total non-current assets 1XXX Total assets				8 - 2 6 - 1
				17
				- 1 38 8 33 1 - 1 1
				83
				100

(Continued)

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PRESIDENT CHAIN STORE CORP. PARENT COMPANY ONLY BALANCE SHEETS

(Expressed in thousands of New Taiwan dollars)

Liabilities and Equity Current liabilities 2100 Short-term borrowings 2110 Short-term notes and bills payable 2130 Contract liabilities – current 2150 Notes payable 2160 Notes payable – related parties 2170 Accounts payable 2180 Accounts payable – related parties 2200 Other payables 2230 Current income tax liabilities 2280 Lease liabilities – current 2300 Other current liabilities 21XX Total current liabilities Non-current liabilities 2527 Contract liabilities – non-current 2570 Deferred income tax liabilities 2580 Lease liabilities – non-current 2640 Net defined benefit liability – non-current 2645 Guarantee deposit received 2670 Other non-current liabilities 25XX Total non-current liabilities 2XXX Total liabilities Equity Share capital 3110 Share capital – common stock Capital surplus 3200 Capital surplus Retained earnings 3310 Legal reserve 3320 Special reserve 3350 Unappropriated retained earnings Other equity 3400 Other equity interest 3XXX Total equity 3X2X Total liabilities and equity	December 31, 2020 Notes AMOUNT % 6(13) $ 3,100,000 2 6(14) 3,399,147 3 6(22) 3,199,068 2 886,303 1 7(3) 4,569,926 3 1,481,068 1 7(3) 9,135,473 7 6(15) 15,594,702 11 6(29) 1,012,668 1 7(3) 7,566,006 5 6(16) 1,680,553 1 51,624,914 37 6(22) 334,445 - 6(29) 3,926,397 3 7(3) 43,283,311 31 6(17) 2,868,592 2 2,964,161 2 481,939 - 53,858,845 38 105,483,759 75 6(18) 10,396,223 7 6(19) 47,628 - 6(20) 14,369,228 10 380,187 - 12,159,546 9 6(21) ( 1,332,621) ( 1) 36,020,191 25 $ 141,503,950 100	December 31, 2019 AMOUNT % $ 5,000,000 4 - - 1,607,970 1 1,017,922 1 4,431,931 4 1,378,550 1 8,373,924 6 17,134,279 13 781,142 1 6,950,425 5 1,492,567 1 48,168,710 37 216,284 - 4,149,357 3 37,780,192 29 2,769,674 2 2,730,126 2 426,824 - 48,072,457 36 96,241,167 73 10,396,223 8 46,884 - 13,314,081 10 - - 12,845,880 10 380,187) ( 1) 36,222,881 27 $ 132,464,048 100

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

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

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PRESIDENT CHAIN STORE CORP.

PARENT COMPANY ONLY STATEMENTS OF COMPREHENSIVE INCOME

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

Items

Forthe years endedDecember31 2020 2019 Notes AMOUNT % AMOUNT % 6(22) and 7(3) $ 168,147,856 100 $ 158,031,567 100 6(3)(27) and 7(3) ( 111,590,813) ( 67 ) ( 103,854,132) ( 66 ) 56,557,043 33 54,177,435 34 6(27)(28) ( 44,926,938) ( 27 ) ( 42,662,266 ) ( 27 ) ( 4,111,400) ( 2 ) ( 4,469,102 ) ( 3 ) 12(2) ( 28) - - - ( 49,038,366) ( 29) ( 47,131,368) ( 30 ) 7,518,677 4 7,046,067 4 7(3) 6(23) 32,588 - 38,037 - 6(24) 1,421,455 1 1,287,857 1 6(25) 43,872 - 22,788 - 6(26) ( 394,400) - ( 359,593 ) - 6(6) 3,092,323 2 4,185,310 2 4,195,838 3 5,174,399 3 11,714,515 7 12,220,466 7 6(29) ( 1,476,353) ( 1 ) ( 1,677,606) ( 1 ) $ 10,238,162 6 $ 10,542,860 6 6(17) ( $ 116,127) - $ 71,511 - 6(5)(21) 152,712 - 162,501 - ( 43,489) - ( 46,547 ) - 6(29) 25,690 - ( 24,252) - 18,786 - 163,213 - 6(21) ( 1,093,603) ( 1 ) ( 578,743 ) - ( 11,382) - ( 10,566) - ( 1,104,985) ( 1 ) ( 589,309) - ( $ 1,086,199) ( 1 ) ($ 426,096) - $ 9,151,963 5 $ 10,116,764 6 6(30) $ 9.85 $ 10.14 6(30) $ 9.83 $ 10.12

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 7070 Share of profit of subsidiaries, associates and joint ventures accounted for using equity method 7000 Total non-operating income and expenses 7900 Profit before income tax 7950 Income tax expense 8200 Profit for the year Other comprehensive income (loss) 8311 (Loss) gain on remeasurement of defined benefit plan 8316 Unrealized gain on valuation of equity instruments at fair value through other comprehensive income 8330 Share of other comprehensive loss of subsidiaries, associates and joint ventures accounted for using equity method, components of other comprehensive income that will not be reclassified to profit or loss 8349 Income tax related to components of other comprehensive income that will not be reclassified to profit or loss 8310 Components of other comprehensive income that will not be reclassified to profit or loss 8361 Financial statements translation differences of foreign operations 8380 Share of other comprehensive loss of subsidiaries, associates and joint ventures accounted for using equity method, components of other comprehensive income that will be reclassified to profit or loss 8360 Components of other comprehensive loss that will be reclassified to profit or loss 8300 Total other comprehensive loss for the year 8500 Total comprehensive income for the year 9750 Basic earnings per share (in dollars) 9850 Diluted earnings per share (in dollars)

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

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

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PRESIDENT CHAIN STORE CORP.

PARENT COMPANY ONLY STATEMENTS OF CHANGES IN EQUITY

(Expressed in thousands of New Taiwan dollars)

For the year ended December 31, 2019 Balance at January 1, 2019 Profit for the year Other comprehensive income (loss) for the year Total comprehensive income(loss)for the year Distribution of 2018 earnings Legal reserve Special reserve Cash dividends Overdue unclaimed cash dividend transferred to capital surplus Adjustment of capital surplus due to associates’ adjustment of capital surplus Disposal of equity instruments designated at fair value through other comprehensive income of associates Balance at December 31, 2019 For the year ended December 31, 2020 Balance at January 1, 2020 Profit for the year Other comprehensive income (loss) for the year Total comprehensive income(loss)for the year Distribution of 2019 earnings Legal reserve Special reserve Cash dividends Overdue unclaimed cash dividend transferred to capital surplus Disposal of equity instruments designated at fair value through other comprehensive income of associates Balance at December 31, 2020	Notes	Share capital – common stock $ 10,396,223 - - - - - - - - - $ 10,396,223 $ 10,396,223 - - - - - - - - $ 10,396,223	Capital surplus $ 45,059 - - - - - - 1,235 590 - $ 46,884 $ 46,884 - - - - - - 744 - $ 47,628		Retained Earnings	Unappropriated retained earnings $ 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	Unappropriated retained earnings $ 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
				Legal reserve $ 12,293,442 - - - 1,020,639 - - - - - $ 13,314,081 $ 13,314,081 - - - 1,055,147 - - - - $ 14,369,228	Special reserve $ 398,859 - - - - ( 398,859 ) - - - - $ - $ - - - - - 380,187 - - - $ 380,187		Financial statements translation differences of foreign operations ($ 279,829 ) - ( 590,079 ) ( 590,079 ) - - - - - - ($ 869,908 ) ($ 869,908 ) - ( 1,103,360 ) ( 1,103,360 ) - - - - - ($ 1,973,268 )
	6(21) 6(20) 6(21) 6(20)

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

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

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PRESIDENT CHAIN STORE CORP.

PARENT COMPANY ONLY STATEMENTS OF CASH FLOWS

(Expressed in thousands of New Taiwan dollars)

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

For the years ended December 31 Notes 2020 2019 $ 11,714,515 $ 12,220,466 12(2) 28 - 6(7)(8)(27) 9,972,207 8,986,348 6(11)(27) 25,898 55,700 6(26) 394,400 359,593 6(6) ( 3,092,323 ) ( 4,185,310 ) 6(10) 7,068 7,440 6(23) ( 32,588 ) ( 38,037 ) 6(24) ( 61,961 ) ( 49,542 ) 6(25) ( 37,206 ) ( 11,253 ) 6(25) ( 2,682 ) - 6(8)(25) ( 56,083 ) ( 33,255 ) 6(8) ( 25,700 ) - ( 1,119 ) 12,235 ( 777,941 ) 239,949 ( 855,567 ) ( 15,998 ) ( 4,084 ) ( 36,821 ) ( 214,380 ) 166,559 ( 108,343 ) ( 161,916 ) 1,591,098 314,821 6,376 ( 587,638 ) 864,067 286,828 ( 1,421,431 ) ( 1,714,521 ) 187,986 29,475 118,161 64,734 ( 17,209 ) ( 19,420 ) ( 4,898 ) ( 4,657 ) 18,168,289 15,885,780 31,994 39,052 6(29) ( 1,357,688 ) ( 1,737,867 ) ( 383,229 ) ( 348,890 ) 3,013,689 2,735,708 19,473,055 16,573,783

(Continued)

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PRESIDENT CHAIN STORE CORP.

PARENT COMPANY ONLY STATEMENTS OF CASH FLOWS

(Expressed in thousands of New Taiwan dollars)

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

For the years ended December 31 Notes 2020 2019 $ 42 $ 118 6(6) and 7(3) - ( 200,000 ) 6(6) and 7(3) - 41,657 6(31) ( 4,470,949 ) ( 3,359,789 ) 104,835 149,016 15,423 - 6(11) ( 103,435) ( 21,409) ( 4,454,084) ( 3,390,407) 6(32) ( 1,900,000 ) ( 1,000,000 ) 6(32) 3,399,147 - 6(32) ( 7,096,154 ) ( 6,603,705 ) 6(20)(32) ( 9,356,600 ) ( 9,148,676 ) 6(32) 234,035 196,168 ( 14,719,572) ( 16,556,213) 299,399 ( 3,372,837 ) 10,697,878 14,070,715 $ 10,997,277 $ 10,697,878

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

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

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PRESIDENT CHAIN STORE CORP. NOTES TO THE PARENT COMPANY ONLY FINANCIAL STATEMENTS DECEMBER 31, 2020 AND 2019

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

1. HISTORY AND ORGANISATION

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

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

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

These parent company only financial statements were authorized for issuance by the Board of Directors on February 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:

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Effective date by
International Accounting
New Standards, Interpretations and Amendments Standards Board
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New Standards,Interpretations and Amendments	Effective date by International Accounting Standards Board
Amendments to IAS 1 and IAS 8, ‘Disclosure initiative-definition of	January 1, 2020
material’
Amendments to IFRS 3, ‘Definition of a business’	January 1, 2020
Amendments to IFRS 9, IAS 39 and IFRS7 ,‘Interest rate benchmark	January 1, 2020
reform’
Amendment to IFRS 16, ‘Covid-19-related rent concessions’	June 1, 2020 (Note)
Note：Earlier application from January 1, 2020 is allowed by FSC.

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

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

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, ‘Interest	January 1, 2021
Rate Benchmark Reform— Phase 2’

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

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

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

New Standards,Interpretations and Amendments	Effective date by International Accounting Standards Board
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	To be determined by
an investor and its associate or joint venture’	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-current’	January 1, 2023
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 before	January 1, 2022
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 Company’s financial condition and financial performance based on the Company’s assessment.

4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

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

(1) Compliance statement

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

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(2) Basis of preparation

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

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

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

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

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

(3) Foreign currency translation

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

• A. Foreign currency transactions and balances

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

• (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.

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

• (d) All foreign exchange gains and losses are presented in parent company only the statement of comprehensive income within ‘other gains and losses’.

• B. Translation of foreign operations

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

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

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

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

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

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

(4) Classification of current and non-current items

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

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

• (b) Assets held mainly for trading purposes;

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

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

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

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

• (b) Liabilities arising mainly from trading activities;

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

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

(5) Cash equivalents

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

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

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

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

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

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

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

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

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

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

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

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

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

(8) Accounts and notes receivable

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

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

(9) Impairment of financial assets

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

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– (10) Leasing arrangement (lessor) operating leases

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

(11) Inventories

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

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

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

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

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

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

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

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

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

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

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

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

• J. In the case that an associate issues new shares and the Company does not subscribe or acquire new shares proportionately, which results in a change in the Company’s ownership percentage of the associate but maintains significant influence on the associate, then ‘capital surplus’ and ‘investments accounted for using equity method’ shall be adjusted for the increase or decrease of equity interest. If the above condition causes a decrease in the Company’s ownership percentage of the associate, in addition to the above adjustment, the amounts previously recognized in other comprehensive income in relation to the associate are reclassified to profit or loss proportionately on the same basis as would be required if the relevant assets or liabilities were disposed of.

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

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

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

• N. The Company accounts for its interest in a joint venture using equity method. Unrealized profits and losses arising from the transactions between the Company and its joint venture are eliminated to the extent of the Company’s interest in the joint venture. The Company’s share of its associates’ post-acquisition profits or losses is recognized in profit or loss, and its share of post-acquisition movements in other comprehensive income is recognized in other comprehensive income. However, when the transaction provides evidence of a reduction in the net realizable value of current assets or an impairment loss, all such losses shall be recognized immediately. When the Company’s share of losses in a joint venture equals or exceeds its interest in the joint venture

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together with any other unsecured receivables, the Company does not recognize further losses, unless it has incurred legal or constructive obligations or made payments on behalf of the joint venture.

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

(13) Property, plant and equipment

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

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

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

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

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

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

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

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

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

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

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

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

• C. At the commencement date, the right-of-use asset is stated at cost comprising the following:

• (a) The amount of the initial measurement of lease liability;

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

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

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

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

(15) Investment property

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

(16) Intangible assets

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

(17) Impairment of non-financial assets

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

(18) 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.

(19) Notes and accounts payable

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

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

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(20) Provisions

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

(21) Employee benefits

• A. Short-term employee benefits

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

• B. Pensions

• (a) Defined contribution plan

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

• (b) Defined benefit plan

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

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

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

• C. Termination benefits

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

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• D. Employees’ and directors’ remuneration

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

(22) Income tax

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

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

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

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

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

(23) Revenue recognition

• A. Sale of goods

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

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

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

• B. Sales of services

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

• C. Financing components

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

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

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

6. DETAILS OF SIGNIFICANT ACCOUNTS

• (1) Cash and cash equivalents

Petty cash in store Checking accounts and demand deposits Cash equivalents Time deposits Short-term financial instruments	December 31,2020 1,081,157 $ 6,216,162 500,000 3,199,958 10,997,277 $	December 31,2019 898,234 $ 4,601,172 500,000 4,698,472 10,697,878 $

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

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

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(2) Accounts receivable

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December 31, 2020 December 31, 2019
Accounts receivable $ 593,718 $ 593,087
Less: Allowance for doubtful accounts ( 972) ( 1,432)
$ 592,746 $ 591,655
A. The ageing analysis of accounts receivable is as follows:
December 31, 2020 December 31, 2019
Not past due $ 593,044 $ 589,136
Up to 90 days 645 3,057
- -
91 to 120 days
Over 121 days 29 894
$ 593,718 $ 593,087
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The above ageing analysis was based on past due date.

• B. As at December 31, 2020 and 2019, accounts receivable was all from contracts with customers. And as January 1, 2019, the balance of receivables from contracts with customers amounted to $603,890.

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

• D. 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 Company’s accounts receivable were $592,746 and $591,655, respectively.

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

(3) Inventories

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December 31, 2020
Allowance for
Cost valuation loss Book value
Merchandise $ 8,907,312 ($ 15,379) $ 8,891,933
December 31, 2019
Allowance for
Cost valuation loss Book value
Merchandise $ 8,079,200 ($ 42,834) $ 8,036,366
The cost of inventories recognized as expense:
For the year ended For the year ended
December 31, 2020 December 31, 2019
Cost of goods sold $ 109,250,147 $ 101,836,268
(Gain on reversal) loss on valuation of inventories ( 27,455) 27,520
Spoilage 2,088,237 1,746,665
Others 279,884 243,679
$ 111,590,813 $ 103,854,132
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The Company reversed a previous inventory write-down because the Company sold and scrapped certain inventories which were previously provided with allowance during the year ended December 31, 2020.

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

	December	31,2020	December	31,2019
Financial assets mandatorily measured at fair value
through profit or loss
Non-current items:
Unlisted stocks	$	274,703	$	274,745
Valuation adjustment	(	189,180)	(	189,180)
	$	85,523	$	85,565

• A. The Company recognized net gains of financial assets at fair value through profit or loss was $18,128 and $17,819 for the years ended December 31, 2020 and 2019, respectively.

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

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

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

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

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

==> picture [484 x 110] 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
$ 152,712 $ 162,501
comprehensive income
Dividend income recognized in profit or loss $ 43,833 $ 31,723
----- 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 Company was $959,827 and $807,115, respectively.

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

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

~29~

(6) Investments accounted for using the equity method

Investments accounted for using the equity method
At January 1 Addition of investments accounted for using equity method Disposal of investments accounted for using equity method Share of profit or loss of investments accounted for using equity method Earnings distribution of investments accounted for using equity method Changes in other equity items Changes in other items At December 31	$ ( ( $		2020 50,117,541 - - 3,092,323 2,951,728) 1,147,271) - 49,110,865	$ ( ( ( $		2019 49,094,402 200,000 41,657) 4,185,310 2,686,166) 634,938) 590 50,117,541
		December 31,2020			December 31,2019
Subsidiaries
President Chain Store (BVI) Holdings Ltd.	$		25,102,119	$		26,348,522
Uni-Wonder Corp.			5,078,516			5,164,559
President Transnet Corp.			1,882,686			1,634,536
President Drugstore Business Corp.			1,445,303			1,432,449
Uni-President Cold-Chain Corp.			910,506			679,859
Mech-President Corp.			747,097			702,347
President Pharmaceutical Corp.			699,003			743,725
ICASH Corp.			580,833			567,243
Uni-President Department Store Corp.			530,898			543,179
Uni-President Superior Commissary Corp.			526,475			484,058
Wisdom Distribution Service Corp.			516,295			454,125
President Information Corp.			499,116			493,788
Books.com. Co., Ltd.			412,559			398,293
Q-ware Systems & Services Corp.			392,745			390,054
Duskin Serve Taiwan Co., Ltd.			208,040			201,317
Retail Support International Corp.			171,835			178,147
21 Century Co., Ltd.			131,869			86,391
President Collect Service Corp., etc.			353,329			359,010
			40,189,224			40,861,602

~30~

==> picture [492 x 199] 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
$ 49,110,865 $ 50,117,541
----- End of picture text -----

• A. Information about the subsidiaries of the Company is provided in Note 4(3), “Basis of preparation” of the consolidated financial statements as of and for the year ended December 31, 2020.

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

• (a) The Company’s share of the operating results in all individually immaterial associates is summarized below:

==> picture [479 x 138] intentionally omitted <==

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

For the year ended For the year ended
December 31, 2020 December 31, 2019
Total comprehensive income $ 392,732 $ 460,753
(b) The Company’s share of the operating results in all individually immaterial joint ventures is
summarized below:
For the year ended For the year ended
December 31, 2020 December 31, 2019
Total comprehensive income $ 11,256 $ 13,844
----- End of picture text -----

• C. No impairment loss was recognized on investments accounted for using equity method for the years ended December 31, 2020 and 2019, respectively.

~31~

(7) Property, plant and equipment

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

						2020	2020
						Operating		Leasehold
		Land		Buildings		equipment	improvements			Others		Total
At January 1 Cost Accumulated depreciation and impairment	$ ( $	1,545,466 16,367) 1,529,099	$ ( $	968,199 362,929) 605,270	$ ( $	14,367,788 9,222,896) 5,144,892	$ ( $	8,649,472 5,468,173) 3,181,299	$ ( $	26,594 9,451) 17,143	$ ( $	25,557,519 15,079,816) 10,477,703
Opening net book amount as at January 1	$	1,529,099	$	605,270	$	5,144,892	$	3,181,299	$	17,143	$	10,477,703
Additions		-		-		2,811,974		1,538,959		2,613		4,353,546
Disposals		-		-	(	12,630)	(	54,999)		-	(	67,629)
Transfer		-		-		-		13,806	(	13,806)		-
Depreciation charge		-	(	19,153)	(	1,536,123)	(	973,955)	(	657)	(	2,529,888)
Closing net book amount as at December 31	$	1,529,099	$	586,117	$	6,408,113	$	3,705,110	$	5,293	$	12,233,732
At December 31
Cost Accumulated depreciation and impairment	$ ( $	1,545,466 16,367) 1,529,099	$ ( $	968,199 382,082) 586,117	$ ( $	15,991,485 9,583,372) 6,408,113	$ ( $	9,652,347 5,947,237) 3,705,110	$ ( $	14,808 9,515) 5,293	$ ( $	28,172,305 15,938,573) 12,233,732

~32~

						2019	2019
						Operating		Leasehold
		Land		Buildings		equipment	improvements			Others		Total
At January 1 Cost Accumulated depreciation and impairment	$ ( $	1,564,223 16,367) 1,547,856	$ ( $	973,001 345,665) 627,336	$ ( $	13,563,007 9,550,524) 4,012,483	$ ( $	8,250,964 5,327,966) 2,922,998	$ ( $	12,121 8,575) 3,546	$ ( $	24,363,316 15,249,097) 9,114,219
Opening net book amount as at January 1 Effect of adoption of IFRS 16 Adjusted beginning balance Additions Disposals Transfer Depreciation charge	$ $ (	1,547,856 - 1,547,856 - - 18,757) -	$ $ ( (	627,336 - 627,336 - - 2,913) 19,153)	$ $ ( (	4,012,483 - 4,012,483 2,530,739 75,584) - 1,322,746)	$ ( $ ( (	2,922,998 167,270) 2,755,728 1,305,220 62,179) - 817,470)	$ $ (	3,546 - 3,546 14,473 - - 876)	$ ( $ ( ( (	9,114,219 167,270) 8,946,949 3,850,432 137,763) 21,670) 2,160,245)
Closing net book amount as at December 31	$	1,529,099	$	605,270	$	5,144,892	$	3,181,299	$	17,143	$	10,477,703
At December 31
Cost	$	1,545,466	$	968,199	$	14,367,788	$	8,649,472	$	26,594	$	25,557,519
Accumulated depreciation and impairment	(	16,367)	(	362,929)	(	9,222,896)	(	5,468,173)	(	9,451)	(	15,079,816)
	$	1,529,099	$	605,270	$	5,144,892	$	3,181,299	$	17,143	$	10,477,703

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

~33~

(8) Leasing arrangements – lessee

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

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

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

December 31, 2020 December 31, 2019
Carrying amount Carrying amount
Buildings $ 50,276,653 $ 44,373,492
For the year ended For the year ended
December 31, 2020 December 31, 2019
Depreciation charge Depreciation charge
Buildings $ 7,442,319 $ 6,826,103
----- End of picture text -----

• C. For the years ended December 31, 2020 and 2019, the additions to right-of-use assets were $14,667,833 and $24,947,745, respectively.

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

==> picture [483 x 113] intentionally omitted <==

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

For the year ended For the year ended
December 31, 2020 December 31, 2019
Items affecting profit or loss
Interest expense on lease liabilities $ 338,828 $ 305,342
Expense on variable lease payments 123,675 153,467
Gain on sublease of right-of-use assets 569,892 557,649
Gain from lease modification 56,083 33,255
----- End of picture text -----

• E. For the years ended December 31, 2020 and 2019, the Company’s total cash outflow for leases were $7,558,657 and $7,062,514, respectively.

• F. Variable lease payments

• (a) Some of the Company’s lease contracts contain variable lease payment terms that are linked to sales generated from a store. For the above-mentioned stores, approximately 1.56% and 2.11% of lease payments as for the year ended 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.

• (b) A 1% increase in the aggregate sales amount of all stores with such variable lease contracts would increase total lease payments by approximately $1,237 and $1,535 for the years ended December 31, 2020 and 2019, respectively.

~34~

• G. The Company’s leases not yet commenced to which the leases are committed are business premises for the lessees, and the lease liabilities undiscounted amount at December 31, 2020 and 2019 are $2,436,677 and $1,751,094, respectively.

• H. The Company 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 $25,700, as other income for the year ended December 31, 2020.

• (9) Leasing arrangements – lessor

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

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

==> picture [483 x 225] intentionally omitted <==

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

For the year ended For the year ended
December 31, 2020 December 31, 2019
Rental revenue $ 648,020 $ 632,894
Rental revenue from variable lease payments $ 376,161 $ 387,859
C. The maturity analysis of the undiscounted lease payments in the finance lease is as follows:
December 31, 2020 December 31, 2019
Within 1 year $ 232,912 $ 206,435
1~2 years 202,933 180,221
2~3 years 151,128 157,115
3~4 years 91,365 113,729
4~5 years 73,053 58,143
Over 5 years 189,870 158,578
$ 941,261 $ 874,221
----- End of picture text -----

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

(10) Investment property

Investment property	Investment property	Investment property	Investment property
Land Buildings Total At January 1 981,540 $ 222,144 $ 1,203,684 $ Disposals 3,988) ( 8,753) ( 12,741) ( Depreciation charge - 7,068) ( 7,068) ( At December 31 977,552 $ 206,323 $ 1,183,875 $ Land Buildings Total At January 1 962,783 $ 226,671 $ 1,189,454 $ Transfer 18,757 2,913 21,670 Depreciation charge - 7,440) ( 7,440) ( At December 31 981,540 $ 222,144 $ 1,203,684 $ 2020 2019
	981,540 $	222,144 $	1,203,684 $

~35~

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

==> picture [476 x 95] intentionally omitted <==

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

For the year ended For the year ended
December 31, 2020 December 31, 2019
Rental income from investment property $ 59,188 $ 59,882
Direct operating expenses arising from the
investment property that generated rental
$ 20,210 $ 23,065
income during the year
----- End of picture text -----

• B. The fair value of the investment property held by the Company as at December 31, 2020 and 2019 ranged from $2,874,270 to $3,042,152, respectively, 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 comparative approach and income approach which is categorized within Level 3 in fair value hierarchy. Key assumptions are the discount rate of 2.39% and the growth rate of 3%.

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

• (11) Intangible assets

and the growth rate of 3%. C. No investment property of the Company was pledged Intangible assets	to others.
Software and copyright	2020 2019
At January 1 84,728 $ 119,019 $ Additions 103,435 21,409 Amortization charge 25,898) ( 55,700) ( At December 31 162,265 $ 84,728 $

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

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

(12) Other non-current assets

Other non-current assets
		December 31,2020 December 31,2019
Guarantee deposits paid Others		$	1,491,661 $ 9,909	1,372,992 20,235
		$	1,501,570 $	1,393,227
Short-term borrowings
Type of borrowings	December 31,2020		Interest rate range	Collateral
Bank borrowings
Credit loan	$	3,100,000	0.49%	None
Type of borrowings	December 31,2019		Interest rate range	Collateral
Bank borrowings
Credit loan	$	5,000,000	0.65%~0.67%	None

(13) Short-term borrowings

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

~36~

(14) Short-term notes and bills payable

December 31,2020 Commercial paper payable 3,400,000 $ Less: Unamortized discount 853) ( 3,399,147 $ Interest rate range 0.408%	Pledged or secured Please refer to the below for details.

• A. There was no commercial paper payable transaction at 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.

(15) Other payables

==> picture [493 x 314] intentionally omitted <==

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

December 31, 2020 December 31, 2019
Store collections $ 10,519,829 $ 11,453,224
Wages, salaries and bonus payable 1,415,217 1,608,497
Incentive bonus payable to franchisees 934,922 1,158,473
Payables for acquisition of property, plant and
equipment 772,571 889,974
Employees’ compensation and remuneration for
directors 725,237 756,561
Payables for system development and maintenance
expenses 116,246 95,753
Payables for labor and health insurance 75,593 74,919
Rent payable 39,357 27,931
Others 995,730 1,068,947
$ 15,594,702 $ 17,134,279
Other current liabilities
December 31, 2020 December 31, 2019
Advance receipts for gift certificates $ 1,525,934 $ 1,381,360
Others 154,619 111,207
$ 1,680,553 $ 1,492,567
----- End of picture text -----

(16) Other current liabilities

~37~

(17) Pensions

• A. The Company has a defined benefit pension plan in accordance with the Labor Standards Law, covering all regular employees’ service years prior to the enforcement of the Labor Pension Act on July 1, 2005 and service years thereafter of employees who chose to continue to be subject to the pension mechanism under the Law. Under the defined benefit pension plan, two units are accrued for each year of service for the first 15 years and one unit for each additional year thereafter, subject to a maximum of 45 units. Pension benefits are based on the number of units accrued and the average monthly salaries and wages of the last 6 months prior to retirement. The Company contributes monthly an amount equal to 2.48% and 3.17% of the employees’ monthly salaries and wages to the retirement fund deposited with Bank of Taiwan, the trustee, under the name of the independent retirement fund committee. Also, the Company would assess the balance in the aforementioned labor pension reserve account by December 31, every year. If the account balance is insufficient to pay the pension calculated by the aforementioned method of the employees expected to qualify for retirement in the following year, the Company will make contributions for the deficit by next March.

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

==> picture [458 x 65] intentionally omitted <==

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

||||||
|---|---|---|---|---|
|December 31, 2020|December 31, 2019|
|Present value of defined benefit obligation|($ 4,200,437)|($ 4,193,734)|
|Fair value of plan assets|1,331,845|1,424,060|
|Net defined benefit liability|($|2,868,592)|($|2,769,674)|

----- End of picture text -----

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

==> picture [459 x 311] intentionally omitted <==

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

||||||||
|---|---|---|---|---|---|---|
|2020|
|Present value of|
|defined benefit|Fair value of|Net defined|
|obligation|plan assets|benefit liability|
|At January 1|($ 4,193,734)|$ 1,424,060|($ 2,769,674)|
|Current service cost|( 26,417)|-|( 26,417)|
|Interest (expense) income|( 31,051)|10,455|( 20,596)|
|Past service cost|(|160)|-|(|160)|
|(|4,251,362)|1,434,515|(|2,816,847)|
|Remeasurements:|
|Return on plan assets|
|(excluding amounts attributable to|
|-|
|interest income or expense)|49,031|49,031|
|-|
|Change in demographic assumptions|( 1,199)|( 1,199)|
|-|
|Change in financial assumptions|( 213,584)|( 213,584)|
|Experience adjustments|49,625|-|49,625|
|(|165,158)|49,031|(|116,127)|
|Pension fund contribution|-|48,291|48,291|
|Paid pension|216,083|(|199,992)|16,091|
|At December 31|($|4,200,437)|$|1,331,845|($|2,868,592)|

----- End of picture text -----

~38~

2019

==> picture [459 x 296] intentionally omitted <==

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

||||||||
|---|---|---|---|---|---|---|
|Present value of|
|defined benefit|Fair value of|Net defined|
|obligation|plan assets|benefit liability|
|At January 1|($ 4,337,814)|$ 1,477,209|($ 2,860,605)|
|Current service cost|( 34,169)|-|( 34,169)|
|Interest (expense) income|( 42,928)|14,761|( 28,167)|
|Past service cost|1,003|-|1,003|
|(|4,413,908)|1,491,970|(|2,921,938)|
|Remeasurements:|
|Return on plan assets|
|(excluding amounts attributable to|
|-|
|interest income or expense)|51,649|51,649|
|-|
|Change in demographic assumptions|( 1,509)|( 1,509)|
|-|
|Change in financial assumptions|( 123,767)|( 123,767)|
|Experience adjustments|145,138|-|145,138|
|19,862|51,649|71,511|
|Pension fund contribution|-|64,826|64,826|
|Paid pension|200,312|(|184,385)|15,927|
|At December 31|($|4,193,734)|$|1,424,060|($|2,769,674)|

----- End of picture text -----

(c) The Bank of Taiwan was commissioned to manage the Fund of the Company’s defined benefit pension plan in accordance with the Fund’s annual investment and utilization plan and the “Regulations for Revenues, Expenditures, Safeguard and Utilization of the Labor Retirement Fund” (Article 6: The scope of utilization for the Fund includes deposit in domestic or foreign financial institutions, investment in domestic or foreign listed, over-the-counter, or private placement equity securities, investment in domestic or foreign real estate securitization products, etc.). 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:

==> picture [459 x 64] intentionally omitted <==

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

||||
|---|---|---|
|For the year ended|For the year ended|
|December 31, 2020|December 31, 2019|
|Discount rate|0.30%|0.75%|
|Future salary increases|3.00%|3.00%|

----- End of picture text -----

~39~

Assumptions regarding future mortality experience are set based on actuarial advice in accordance with Taiwan Life Insurance Industry 5[th] Mortality Table. Because the main actuarial assumption changed, the present value of defined benefit obligation is affected. The analysis is as follows:

==> picture [459 x 203] 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 ($ 120,403) $ 125,341 $ 121,375 ($ 117,277)
Discount rate Future salary increases
Increase Decrease Increase Decrease
0.25% 0.25% 0.25% 0.25%
December 31, 2019
Effect on present value of defined
benefit obligation ($ 123,724) $ 128,937 $ 125,512 ($ 121,123)
----- End of picture text -----

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

• (e) Expected contributions to the defined benefit pension plan of the Company for the year ending December 31, 2021 amounts to $36,925.

• (f) As of December 31, 2020, the weighted average duration of the retirement plan is 11 years. The analysis of timing of the future pension payment is as follows:

As of December 31, 2020, the weighted average duration of the retirement analysis of timing of the future pension payment is as follows:	plan is 11 years. The
Within 1 year 1-2 year(s) 2-5 years Over 5 years	87,841 $ 140,683 473,865 3,626,155
	4,328,544 $

• B. Effective July 1, 2005, the Company has established a defined contribution pension plan (the “New Plan”) under the Labor Pension Act (the “Act”), covering all regular employees with R.O.C. nationality. Under the New Plan, the Company contributes monthly an amount based on 6% of the employees’ monthly salaries and wages to the employees’ individual pension accounts at the Bureau of Labor Insurance. The benefits accrued are paid monthly or in lump sum upon termination of employment. The pension costs under the Company’s defined contribution pension plan for the years ended December 31, 2020 and 2019 were $215,011 and $206,684, respectively.

~40~

(18) 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 shares as of December 31, 2020 and 2019.

(19) Capital surplus

In accordance with the Company Act of the Republic of China, any capital surplus arising from paidin 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.

(20) Retained earnings

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

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

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

~41~

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

		2019	2019		2018	2018
			Dividends			Dividends
			per share			per share
		Amount	(in dollars)		Amount	(in dollars)
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:

Legal reserve Special reserve appropriated Cash dividends	2020
	Dividends per share Amount (in dollars) 1,010,560 $ 952,434 9,356,600 9.00 $

(21) Other equity items

						2020
			Financial			Unrealized
			statements			gains/(losses) on
			translation	Financial assets at fair
			differences of		value through other
		foreign operations		comprehensive income				Total
At January 1	($		869,908)	$		489,721	($	380,187)
Revaluation and trasfer:
–The Company			-			152,712		152,712
–Subsidiaries			-			-		-
–Associates			-	(		4,251)	(	4,251)
Revaluation - tax			-			2,465		2,465
Currency translation differences:
–The Company	(		1,093,603)			-	(	1,093,603)
–Subsidiaries	(		340)			-	(	340)
–Associates	(		9,417)			-	(	9,417)
At December 31	($		1,973,268)	$		640,647	($	1,332,621)

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2019
Financial Unrealized
statements gains/(losses) on
translation Financial assets at fair
differences of value through other
foreign operations comprehensive income Total
At January 1 ($ 279,829) $ 333,434 $ 53,605
Revaluation and transfer:
-
–The Company 162,501 162,501
–Subsidiaries - ( 783) ( 783)
–Associates - 4,518 4,518
Revaluation - tax - ( 9,949) ( 9,949)
Currency translation differences:
-
–The Company ( 578,743) ( 578,743)
–Subsidiaries ( 5,347) - ( 5,347)
–Associates ( 5,989) - ( 5,989)
At December 31 ($ 869,908) $ 489,721 ($ 380,187)
(22) Operating revenue
For the year ended For the year ended
December 31, 2020 December 31, 2019
Revenue from contracts with customers $ 168,147,856 $ 158,031,567
A. Disaggregation of revenue from contracts with customers
The Company operates a chain of retail stores and derives revenue from the transfer of goods and
services over time and at a point in time. The operating revenue is categorized based on goods or
services recognition timing as follows:
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services recognition timing as follows:
Timing of revenue recognition –At a point in time –Over time	For the year ended	For the year ended
	December 31,2020 167,324,002 $ 823,854	December 31,2019 157,508,868 $ 522,699
	168,147,856 $	158,031,567 $

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B. Contract liabilities

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

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

December 31, 2020 December 31, 2019
Contract liabilities – advance receipts of gift $ 2,855,217 $ 1,291,060
payments
Contract liabilities – franchise fee 252,918 240,077
Contract liabilities – customer loyalty programs 334,445 216,284
Contract liabilities – others 90,933 76,833
$ 3,533,513 $ 1,824,254
----- End of picture text -----

(b) Revenues recognized that were included in the contract liabilities balance at the beginning

were $817,955 and $1,101,204 for the years ended December 31, 2020 and 2019, respectively.

(23) Interest income

Other income Interest income Grants income Rental revenue Dividend income Other income	For the year ended December 31,2020 32,588 $ For the year ended December 31, 2020 584,489 $ 196,889 61,961 578,116 1,421,455 $	For the year ended December 31,2019 38,037 $ For the year ended December 31,2019 546,607 $ 178,775 49,542 512,933 1,287,857 $

(24) Other income

(25) Other gains and losses

For the year ended For the year ended December 31,2020 December 31,2019 Gain from lease modification $ 56,083 $ 33,255 Gain on disposal of property, plant and equipment 37,206 11,253 Gain on disposal of investment property 2,682 - Others 52,099) ( 21,720) ( 43,872 $ 22,788 $	For the year ended December 31,2020	For the year ended December 31,2019

(26) Financial costs

Interest expense

	For the year ended December 31,2020	For the year ended December 31,2019
	394,400 $	359,593 $

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(27) Expenses by nature

Net cost of goods sold Incentive bonuses for franchisees Depreciation and amortization Employee benefit expense Utilities expense Operating lease payments Other costs and expenses Total operating costs and operating expenses	For the year ended For the year ended December 31,2020 December 31,2019 109,222,692 $ 101,863,788 $ 22,732,406 21,822,920 9,998,105 9,042,048 7,203,073 7,162,446 2,263,752 2,288,191 123,675 153,467 9,085,476 8,652,640 160,629,179 $ 150,985,500 $

(28) Employee benefit expense

Wages and salaries Labor and health insurance fees Pension costs Directors’ remuneration Other personnel expenses	For the year ended December31,2020 5,949,019 $ 484,022 262,184 191,433 316,415 7,203,073 $	For the year ended December31,2019 5,870,712 $ 477,863 268,017 199,553 346,301 7,162,446 $

• 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’ remuneration. The ratio shall not be lower than 2% for employees’ compensation and shall not be higher than 2% for directors’ remuneration.

• B. For the years ended December 31, 2020 and 2019, employees’ compensation was accrued at $543,617 and $567,096, respectively; while directors’ remuneration was accrued at $181,620 and $189,465, respectively.

The employees’ compensation and directors’ 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. The employees’ compensation and directors’ remuneration as resolved by the Board of Directors were $543,617 and $181,620, respectively, and the employees’ compensation will be distributed in the form of cash.

Employees’ compensation and directors’ remuneration for 2019 as resolved at the meeting of Board of Directors were in agreement with those amounts recognized in the 2019 financial statements.

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

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(29) Income tax

A. Income tax expense

(a) Components of income tax expense:

Components of income tax expense:
	For the year ended December 31,2020		For the year ended December 31,2019
Current tax:
Current tax on profits for the year	$	1,738,626	$	1,611,778
Tax on undistributed surplus earnings		-		20,212
Over provision of prior year’s income tax	(	149,412)	(	162,718)
Total current tax		1,589,214		1,469,272
Deferred tax:
Origination and reversal of temporary differences	(	112,861)		208,334
Income tax expense	$	1,476,353	$	1,677,606

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

For the year ended December 31,2020 Changes in fair value of financial assets at fair value through other comprehensive income 2,465) ($ Remeasurement of defined benefit obligations 23,225) ( 25,690) ($	For the year ended December 31, 2019 9,949 $ 14,303 24,252 $

B. Reconciliation between income tax expense and accounting profit

For the year ended For the year ended December 31,2020 December 31,2019 Tax calculated based on profit before tax and statutory tax rate 2,342,903 $ 2,444,093 $ Expenses disallowed by tax regulation 61,047) ( 9,536) ( Tax on profit for using equity method by domestic subsidiaries 656,029) ( 614,211) ( Tax on undistributed surplus earnings - 20,212 Over provision of prior year’s income tax 149,412) ( 162,718) ( Tax exempt on gain from domestic securities transitions 62) ( 234) ( Income tax expense 1,476,353 $ 1,677,606 $	For the year ended December 31,2020	For the year ended December 31,2019

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

		January1	Recognized in other Recognized in comprehensive profit or loss income 2020	Recognized in other Recognized in comprehensive profit or loss income 2020	Recognized in other Recognized in comprehensive profit or loss income 2020	Recognized in other Recognized in comprehensive profit or loss income 2020	Recognized in other Recognized in comprehensive profit or loss income 2020	Recognized in other Recognized in comprehensive profit or loss income 2020		December 31	December 31
Deferred tax assets
Allowance for doubtful accounts	$	199	($		92)	$		-	$		107
Unrealized expenses		221,464	(		125,493)			-			95,971
Contract liabilities – non-current		43,446			23,632			-			67,078
Remeasurements of defined
benefit obligation		507,605			-			23,225			530,830
Others		27,536	(		5,681)			-			21,855
		800,250	(		107,634)			23,225			715,841
Deferred tax liabilities
Unrealized gain	(	36,154)			-			2,465	(		33,689)
Foreign investment income	(	4,113,203)			220,495			-	(		3,892,708)
	(	4,149,357)			220,495			2,465	(		3,926,397)
	($	3,349,107)	$		112,861	$		25,690	($		3,210,556)
					2019
							Recognized
		January1	Recognized in profit or loss			in other comprehensive income				December 31
Deferred tax assets
Allowance for doubtful accounts	$	199	$		-	$		-	$		199
Unrealized expenses		173,233			48,231			-			221,464
Contract liabilities – non-current		30,499			12,947			-			43,446
Remeasurements of defined
benefit obligation		521,908			-	(		14,303)			507,605
Others		74,619	(		47,083)			-			27,536
		800,458			14,095	(		14,303)			800,250
Deferred tax liabilities
Unrealized gain	(	26,205)			-	(		9,949)	(		36,154)
Foreign investment income	(	3,890,774)	(		222,429)			-	(		4,113,203)
	(	3,916,979)	(		222,429)	(		9,949)	(		4,149,357)
	($	3,116,521)	($		208,334)	($		24,252)	($		3,349,107)

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

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(30) Earnings per share

(31)	Supplemental cash flow information Investing activities with partial cash payments 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 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 Purchase of property, plant and equipment Add: Opening balance of payable on equipment Less: Ending balance of payable on equipment Cash paid during the year	Amount Weighted average number of ordinary shares outstanding Earnings per share after tax (shares in thousands) (in dollars) 10,238,162 $ 1,039,622 9.85 $ $ 10,238,162 1,039,622 - 2,358 10,238,162 $ 1,041,980 9.83 $ For theyear ended December 31,2020 Amount Weighted average number of ordinary shares outstanding Earnings per share after tax (shares in thousands) (in dollars) 10,542,860 $ 1,039,622 10.14 $ $ 10,542,860 1,039,622 - 2,169 10,542,860 $ 1,041,791 10.12 $ For theyear ended December 31,2019 For the year ended For the year ended December 31,2020 December 31,2019 4,353,546 $ 3,850,432 $ 889,974 399,331 772,571) ( 889,974) ( 4,470,949 $ 3,359,789 $

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(32) Changes in liabilities from financing activities

Short-term borrowings At January 1 5,000,000 $ Changes in cash flow from financing activities 1,900,000) ( Interest paid (Note) - Changes in other non-cash items - At December 31 3,100,000 $	Liabilities from Short-term Guarantee financing notes and bills Dividend deposits Lease Activities – payable payable received liabilities gross - $ - $ 2,730,126 $ 44,730,617 $ 52,460,743 $ 3,399,147 9,356,600) ( 234,035 7,096,154) ( 14,719,572) ( - - - 338,828) ( 338,828) ( - 9,356,600 - 13,553,682 22,910,282 3,399,147 $ - $ 2,964,161 $ 50,849,317 $ 60,312,625 $ 2020

Note: Presented in cash flows from operating activities.

At January 1 Changes in cash flow from financing activities Interest paid (Note) Changes in other non-cash items At December 31				2019
				Guarantee		Liabilities from
						financing
		Short-term	Dividend	deposits	Lease	Activities –
	borrowings payable 6,000,000 $ - $ 1,000,000) ( 9,148,676) ( - - - 9,148,676 5,000,000 $ - $			received liabilities gross 2,533,958 $ 27,486,853 $ 36,020,811 $ 196,168 6,603,705) ( 16,556,213) ( - 305,342) ( 305,342) ( - 24,152,811 33,301,487 2,730,126 $ 44,730,617 $ 52,460,743 $

Note: Presented in cash flows from operating activities.

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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

Corp. which holds a 45.4% equity interest in the Names of related parties and relationship	Company as of December 31, 2020.
Names of relatedparties	Relationshipwith the Company
Uni-President Enterprises Corp. 21 Century Co., Ltd. Books.com. Co., Ltd. Capital Marketing Consultant Corp. Duskin Serve Taiwan Co., Ltd. ICASH Corp. President Chain Store (BVI) Holdings Ltd. President Drugstore Business Corp. Uni-President Department Store Corp. President Information Corp. President Logistics International Corp. Uni-President Superior Commissary Corp. President Pharmaceutical Corp. President Transnet Corp. Retail Support International Corp. Uni-President Oven Bakery Corp. Uni-President Cold-Chain Corp. Q-ware Systems & Services Corp. Wisdom Distribution Service Corp. Uni-Wonder Corp. Tung Ang Enterprises Corp. President Professional Baseball Team Corp. Presco Netmarketing Inc. Tait Marketing & Distribution Co., Ltd. President Packaging Industrial Corp. Lien Bo Corp. Kai Ya Food Co., Ltd. Uni-President Organics Corp. Mister Donut Taiwan Co., Ltd. Kuang Chuan Dairy Co., Ltd. Wei Lih Food Industrial Co., Ltd.	Ultimate parent company Subsidiary " " " " " " " " " " " " " " " " " " Sister company " " " " " " Investee of the Company accounted for under the equity method " Investee of ultimate parent company accounted for under the equity method "

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(3) Significant related party transactions and balances

A. Operating revenue

gnificant related party transactions and balances Operating revenue
Purchases (net of purchase rebate) Commission revenue from collection services Subsidiaries Sister companies Associates Ultimate parent company Subsidiaries Sister companies Associates Other related parties	For the year ended December 31,2020	For the year ended December 31,2019
	502,161 $ 4,471,967 9 4,974,137 $ For the year ended December31,2020 16,248,126 $ 5,448,084 4,406,082 163,984 862,931 27,129,207 $	329,669 $ 3,649,408 - 3,979,077 $ For the year ended December31,2019 15,787,494 $ 4,833,834 3,778,725 199,924 911,260 25,511,237 $

B. Purchases (net of purchase rebate)

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

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

C. Non-operating income

Non-operating income
Ultimate parent company Subsidiaries Sister companies Associates Other related parties	For the year ended December31,2020	For the year ended December31,2019
	39,005 $ 947,365 6,121 20,046 39,696 1,052,233 $	36,890 $ 920,099 6,822 15,721 28,052 1,007,584 $

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D. Receivables (payables) from related parties

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Other receivables December 31, 2020 December 31, 2019
Ultimate parent company $ 204,204 $ 67,315
Subsidiaries 1,701,554 1,281,796
Sister companies 198,598 103,664
Associates 4,235 3,951
Other related parties 119 766
$ 2,108,710 $ 1,457,492
Notes payable and accounts payable December 31, 2020 December 31, 2019
Ultimate parent company $ 425,203 $ 417,554
Subsidiaries 13,216,850 12,316,674
Sister companies 38,247 43,846
Associates 24,196 26,488
Other related parties 903 1,293
$ 13,705,399 $ 12,805,855
----- End of picture text -----

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

－ E. Leasing arrangements lessee

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

(b) Acquisition of right-of-use assets

Ultimate parent company Subsidiaries Associates Other related parties Total	For the year ended December 31,2020 - $ 7,636 43,535 11,686 62,857 $	For the year ended December 31,2019 2,234 $ 31,487 12,157 513,952 559,830 $

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

• (c) Lease liabilities

use assets by $126,887. Lease liabilities
Ultimate parent company Subsidiaries Associates Sister companies Other related parties Total	December31,2020	December31,2019
	1,607 $ 63,709 55,055 49,505 462,544 632,420 $	2,798 $ 71,257 17,667 44,681 511,921 648,324 $

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F. Property transaction

Acquisition of financial assets

Subsidiary				For the year ended December 31,2019
	Accounts	No. of shares	Objects	Consideration
	Investments accounted for using equity method	20,000,000	ICASH Corp.	200,000 $

There was no property transaction for the year ended December 31, 2020.

(4) Key management compensation

Key management compensation
Other short-term employee benefits	For the year ended December 31,2020	For the year ended December 31,2019
	296,923 $	288,543 $

8. PLEDGED ASSETS

None.

9. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNIZED CONTRACT COMMITMENTS

None.

10. SIGNIFICANT DISASTER LOSS

None.

11. SIGNIFICANT EVENTS AFTER THE BALANCE SHEET DATE

None.

12. OTHERS

(1) Capital management

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

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(2) Financial instruments

A. Financial instruments by category

Financial assets Financial assets at fair value through profit or loss Financial assets mandatorily measured 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 deposit paid Financial liabilities Financial liabilities at amortized cost Short-term borrowings Short-term notes and bills payable Notes payable Accounts payable Other payables Guarantee deposit received Lease liabilities	December 31,2020 85,523 $ 959,827 $ 10,997,277 $ 592,746 3,052,702 963,764 1,491,661 17,098,150 18,143,500 $ 3,100,000 $ 3,399,147 5,456,229 10,616,541 15,594,702 2,964,161 41,130,780 50,849,317 $ 91,980,097 $	December 31,2019
		85,565 $
		807,115 $
		10,697,878 $ 591,655 2,274,167 826,748 1,372,992
		15,763,440
		16,656,120 $
		5,000,000 $ - 5,449,853 9,752,474 17,134,279 2,730,126
		40,066,732
		44,730,617 $
		84,797,349 $

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

B. Risk management policies

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

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

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

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C. Significant financial risks and degrees of financial risks

(a) Market risk

Foreign exchange risk

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

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

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

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

December 31, 2020
Foreign currency
amount Exchange Book value
(Foreign currency: functional currency) (In thousands) rate (NTD)
Financial assets
Non-monetary items
JPY: NTD $ 861,900 0.2763 $ 238,143
Investments accounted for using equity
method
USD: NTD 883,748 28.4800 25,169,157
December 31, 2019
Foreign currency
amount Exchange Book value
(Foreign currency: functional currency) (In thousands) rate (NTD)
Financial assets
Non-monetary items
JPY: NTD $ 907,500 0.2760 $ 250,470
Investments accounted for using equity
method
USD: NTD 881,028 29.9800 26,413,228
----- End of picture text -----

• IV. The total exchange gain (loss), including realized and unrealized arising from significant foreign exchange variation on the monetary items held by the Company amounted to $160 and ($54) 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 investments accounted for using equity method denominated in USD. If the NTD:USD exchange rate appreciates/depreciates by 5% with all other factors remaining constant, the Company’s comprehensive income for the years ended December 31, 2020 and 2019 would increase/decrease by $1,258,458 and

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$1,320,661, respectively. Foreign exchange risk with respect to JPY primarily arises from the exchange gain or loss resulting from foreign currency translation of financial assets at fair value through other comprehensive income – non-current denominated in JPY. If the NTD:JPY exchange rate appreciates/depreciates by 5%, with all other factors remaining constant, the Company’s comprehensive income for the years ended December 31, 2020 and 2019 would increase/decrease by $11,907 and $12,524, respectively.

Price risk

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

• II. The Company’s investments in equity securities comprise shares issued by the domestic companies. The prices of equity securities would change due to change of the future value of investee companies. If the prices of these equity securities increase/decrease by 5%, with all other variables held constant, the post-tax profit for the years ended December 31, 2020 and 2019 would have increased/decreased by $4,276 and $4,278, respectively, as a result of gains/losses on equity securities classified as at fair value through profit or loss. Other components of equity would have increased/decreased by $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

The Company’s interest rate risk arises from short-term borrowings. Borrowings issued at fixed rates expose the Company to fair value interest rate risk.

(b) Credit risk

• I. Credit risk refers to the risk of financial loss to the Company arising from default by the clients or counterparties of financial instruments on the contract obligations. The main factor is that counterparties could not repay in full the accounts receivable based on the agreed terms.

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

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

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

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• V. The Company operates a chain of retail stores, thus the ratio of accounts receivable to total asset is low and the probability that accounts receivable cannot be received is low. For accounts receivable from other transactions, the Company manages individually and follow up regularly. The Company assesses credit impairment loss immaterial at December 31, 2020 and 2019.

• VI. The Company 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 Company invests surplus cash in interest bearing current accounts, time deposits, money market fund and marketable securities, and chooses instruments with appropriate maturities or sufficient liquidity to provide sufficient headroom as determined by the aforementioned forecasting. The Company held no money market funds at December 31, 2020 and 2019, respectively.

• III. The Company has undrawn borrowing facilities beyond one year of $9,547,456 and $9,096,726 as of December 31, 2020 and 2019, respectively.

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

Non-derivative financial liabilities:

Non-derivative financial liabilities:
Less than Between 1 year 1 and 2 years Short-term borrowings 3,100,464 $ - $ Short-term notes and bills payable 3,399,147 - Lease liabilities 8,132,305 7,984,192 December 31, 2020	Between 2 and3 years - $ - 7,557,734	Over3 years
		- $ - 30,975,210

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Non-derivative financial liabilities:

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

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

• (3) Fair value information

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

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

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

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

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

• C. Financial instruments not measured at fair value

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

values.
Financial assets: Guarantee deposit paid Financial liabilities: Guarantee deposit received		December	31,2020
	Book value 1,491,661 $ 2,964,161 $		Fair value
		Level 1 - $ - $	Level 2 - $ - $	Level 3
				1,479,677 $
				2,945,348 $

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

December 31, 2019
Fair value
Book value Level 1 Level 2 Level 3
Financial assets:
Guarantee deposit paid $ 1,372,992 $ - $ - $ 1,352,512
Financial liabilities:
Guarantee deposit received $ 2,730,126 $ - $ - $ 2,701,736
----- End of picture text -----

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

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

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

follows:
December 31,2020 Assets Recurring fair value measurements Financial assets at fair value through profit or loss Equity securities Financial assets at fair value through other comprehensive income Equity securities December 31,2019 Assets Recurring fair value measurements Financial assets at fair value through profit or loss Equity securities Financial assets at fair value through other comprehensive income Equity securities	Level 1 - $ 955,479 955,479 $ Level 1 - $ 802,767 802,767 $	Level 2 - $ - - $ Level 2 - $ - - $	Level 3 85,523 $ 4,348 89,871 $ Level 3 85,565 $ 4,348 89,913 $	Total
				85,523 $
				959,827
				1,045,350 $
				Total
				85,565 $
				807,115
				892,680 $

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

• I. The instruments the Company used market quoted prices as their fair values (that is, Level

  • 1) are listed below by characteristics:

Listed shares

Market quoted price

Closing price

~59~

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

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

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

~60~

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

(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.

14. SEGMENT INFORMATION

None.

~61~

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

PRESIDENT CHAIN STORE CORP. STATEMENT OF CASH AND CASH EQUIVALENTS

DECEMBER 31, 2020

Statement 1 Item Petty cash in store Demand deposits and checking accounts Cash equivalents Time deposits – New Taiwan dollar Short-term financial instruments	Expressed in thousands of NTD Description Amount $ 1,081,157 6,216,162 Due dates are March 2021, and interest rates are at 0.55%. 500,000 Due dates are within one month, and interest rates are at 0.2%~0.21%. 3,199,958 $ 10,997,277

Statement 1

PRESIDENT CHAIN STORE CORP. STATEMENT OF INVENTORIES DECEMBER 31, 2020

Statement 2 Item	Description	Amount Cost Market value $ 8,907,312 $ 10,418,436 ( 15,379) $ 8,891,933	Expressed in thousands of NTD Footnote
		Cost $ 8,907,312 ( 15,379) $ 8,891,933
Merchandise Less: Allowance for valuation loss			The net realizable value is the market value.

Statement 2

PRESIDENT CHAIN STORE CORP.

STATEMENT OF CHANGES IN FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME – NON-CURRENT FOR THE YEAR ENDED DECEMBER 31, 2020

Statement 3 Name Listed stocks President Securities Corp. Duskin Co., Ltd. Unlisted stocks Koasa Yamako Corp. Subtotal Valuation adjustment	Balance as of January 1, 2020 Number of shares Book value 38,221,259 $ 140,534 300,000 125,072 650,000 4,348 269,954 537,161 $ 807,115	Additions Number of shares Amount 764,425 $ - - - - - - 152,712 $ 152,712	Decreases Number of shares Amount - $ - - - - - - - $ -	Expressed in thousands of NTD Balance as of December 31, 2020 Number of shares Book value Collateral 38,985,684 $ 140,534 None 300,000 125,072 〃 650,000 4,348 〃 269,954 689,873 $ 959,827	Expressed in thousands of NTD Balance as of December 31, 2020 Number of shares Book value Collateral 38,985,684 $ 140,534 None 300,000 125,072 〃 650,000 4,348 〃 269,954 689,873 $ 959,827
	Number of shares 38,221,259 300,000 650,000	Number of shares 764,425 - -	Number of shares - - -	Number of shares 38,985,684 300,000 650,000
					None 〃 〃

Statement 3

PRESIDENT CHAIN STORE CORP.

STATEMENT OF CHANGES IN FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS – NON-CURRENT FOR THE YEAR ENDED DECEMBER 31, 2020

Statement 4 Name Unlisted stocks PK Venture Capital Corp. Kaohsiung Rapid Transit Corp. Career Consulting Co. Ltd President Investment Trust Corp. Subtotal Valuation adjustment	Balance as of January 1, 2020 Number of shares Book value 321,300 $ 33,685 2,572,127 203,714 837,753 14,546 2,667,600 22,800 274,745 ( 189,180) $ 85,565	Additions Number of shares Amount - $ - - - - - - - - - $ -	Additions Number of shares Amount - $ - - - - - - - - - $ -	Decreases Amount Number of shares (Note) - $ - - - - ( 42) - - ( 42) - ($ 42)	Expressed in thousands of NTD Balance as of December 31, 2020 Number of shares Book value Collateral 321,300 $ 33,685 None 2,572,127 203,714 〃 837,753 14,504 〃 2,667,600 22,800 〃 274,703 ( 189,180) $ 85,523
	Number of shares 321,300 2,572,127 837,753 2,667,600	Number of shares - - - -
			$ - - - -
			- -
			$ -

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

Statement 4

PRESIDENT CHAIN STORE CORP.

STATEMENT OF CHANGES IN INVESTMENTS ACCOUNTED FOR USING EQUITY METHOD FOR THE YEAR ENDED DECEMBER 31, 2020

Statement 5 Expressed in thousands of NTD

Name President Chain Store (BVI) Holdings Ltd. President Drugstore Business Corp. President Transnet Corp. Mech-President Corp. President Pharmaceutical Corp. Uni-President Department Store Corp. Uni-President Superior Commissary Corp. Uni-President Cold-Chain Corp. President Information Corp. Q-ware Systems & Services Corp. Wisdom Distribution Service Corp. Books.com. Co., Ltd.		Balance as of January 1, 2020 Number of shares Amount 171,589,586 $ 26,348,522 78,520,000 1,432,449 103,496,399 1,634,536 55,858,815 702,347 22,121,962 743,725 27,999,999 543,179 48,519,890 484,058 23,605,042 679,859 25,714,475 493,788 24,382,921 390,054 10,847,421 454,125 9,999,999 398,293	Additions (Note 1) Number of shares Amount - $ - - 287,519 - 632,919 - 121,165 - 83,608 - 156,806 - 40,794 19,329,934 233,876 - 74,456 - 73,862 - 306,530 - 204,945	Decreases	(Note 2) Amount ($ 140,337) - - - - - - - - - - -	Other Adjustments (Note 3)	Balances	as of December 31, 2020 Percentage of ownership Amount 100.00 $ 25,102,119 100.00 1,445,303 70.00 1,882,686 80.87 747,097 73.74 699,003 70.00 530,898 90.00 526,475 60.00 910,506 86.00 499,116 86.76 392,745 100.00 516,295 50.03 412,559	Market price or Equity of subsidiaries and Associates Unit price Total price $ 146.29 $ 25,102,115 18.41 1,445,303 18.01 1,863,844 13.37 747,097 24.42 540,204 18.96 530,898 10.85 526,475 20.92 898,181 15.18 390,275 15.57 379,592 47.60 516,295 41.26 412,559	Collateral
		Number of shares 171,589,586 78,520,000 103,496,399 55,858,815 22,121,962 27,999,999 48,519,890 23,605,042 25,714,475 24,382,921 10,847,421 9,999,999	Number of shares - - - - - - - 19,329,934 - - - -	Number of shares		Amount	Number of shares	Percentage of ownership 100.00 100.00 70.00 80.87 73.74 70.00 90.00 60.00 86.00 86.76 100.00 50.03	Unit price $ 146.29 18.41 18.01 13.37 24.42 18.96 10.85 20.92 15.18 15.57 47.60 41.26
				- - - - - - - - - - - -		($ 1,106,066) ( 274,665) ( 384,769) ( 76,415) ( 128,330) ( 169,087) 1,623 ( 3,229) ( 69,128) ( 71,171) ( 244,360) ( 190,679)	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			None 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃

Statement 5, Page 1

Name 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. 21 Century Co., Ltd. President Collect Service Corp., etc.		Balance as of January 1, 2020 Number of shares Amount 10,199,999 $ 201,317 70,000,000 567,243 72,000,000 764,191 21,382,674 5,164,559 6,429,999 178,147 145,172,360 5,723,198 190,000,000 2,039,406 44,100,000 459,696 10,000,000 86,391 - 628,458 $ 50,117,541	Additions (Note 1) Number of shares Amount - $ 82,001 - 14,687 - 21,649 - 294,258 - 54,894 - 381,499 - 45,394 - 18,992 - 43,239 - 191,768 $ 3,364,861	Decreases	(Note 2) Amount - - - - - - - - - ( 132,201) ($ 272,538)	Other Adjustments (Note 3)	Balances	as of December 31, 2020 Percentage of ownership Amount 51.00 $ 208,040 100.00 580,833 20.00 757,759 60.00 5,078,516 25.00 171,835 19.50 5,434,309 19.00 2,084,800 3.33 445,096 100.00 131,869 -553,006 $ 49,110,865	Market price or Equity of subsidiaries and Associates Unit price Total price $ 20.40 $ 208,040 8.30 580,833 10.52 757,760 289.40 6,188,232 25.33 162,848 49.47~57.71 7,181,265~ 8,377,590 10.06 1,912,267 10.38 457,787 13.19 131,869 - 553,100	Collateral
		Number of shares 10,199,999 70,000,000 72,000,000 21,382,674 6,429,999 145,172,360 190,000,000 44,100,000 10,000,000 -	Number of shares - - - - - - - - - -	Number of shares - - - - - - - - - -		Amount	Number of shares	Percentage of ownership 51.00 100.00 20.00 60.00 25.00 19.50 19.00 3.33 100.00 -	Unit price $ 20.40 8.30 10.52 289.40 25.33 49.47~57.71 10.06 10.38 13.19 -
						($ 75,278) ( 1,097) ( 28,081) ( 380,301) ( 61,206) ( 670,388) - ( 33,592) 2,239 (135,019)	10,199,999 70,000,000 72,000,000 21,382,674 6,429,999 145,172,360 190,000,000 44,100,000 10,000,000 -			None 〃 〃 〃 〃 〃 〃 〃 〃 〃
						($ 4,098,999)

Note 1: The additions this year includes recognized gains on investments of $3,364,861 and stock dividends of $19,329,934. Note 2: The decreases this year includes recognized losses on investments of ($272,538). Note 3: Other adjustments are cash dividends of ($2,951,728), financial statements translation differences of foreign operations of ($1,103,360), loss on remeasurement of defined benefit plan of ($40,863), changes in fair value of financial assets at fair value through other comprehensive income of ($3,048).

Statement 5, Page 2

PRESIDENT CHAIN STORE CORP. STATEMENT OF CHANGES IN PROPERTY, PLANT AND EQUIPMENT FOR THE YEAR ENDED DECEMBER 31, 2020

Statement 6

Expressed in thousands of NTD

Item Cost Land Buildings Operating equipment Leasehold improvements Others Accumulated depreciation Buildings ( Operating equipment ( Leasehold improvements ( Others ( ( Accumulated impairment ( Book value	Balance as of January 1,2020 $ 1,545,466 968,199 14,367,788 8,649,472 26,594 25,557,519 350,358 ) ( 9,160,852 ) ( 5,464,942 ) ( 9,451 ) ( 14,985,603 ) 94,213 ) $ 10,477,703	Additions Disposals $ - $ - - - 2,811,974 ( 1,188,277 ) 1,538,959 ( 549,890 ) 2,613 ( 593 ) ( $ 4,353,546 ($ 1,738,760 ) $ 19,153 ) $ - 1,536,123 ) 1,175,152 973,955 ) 494,441 657 ) 594 $ 2,529,888 )$ 1,670,187 $ - $ 944	Transfer $ - - - 13,806 13,806 ) $ - $ - ( - ( - ( - ( $ - ( $ - (	Balance as of December 31, 2020 $ 1,545,466 968,199 15,991,485 9,652,347 14,808 28,172,305 369,511 ) 9,521,823 ) 5,944,456 ) 9,514 ) 15,845,304 ) 93,269 ) $ 12,233,732	Collateral None 〃 〃 〃 〃 〃 〃 〃 〃	Footnote

Statement 6

PRESIDENT CHAIN STORE CORP.

STATEMENT OF CHANGES IN RIGHT-OF-USE ASSETS

FOR THE YEAR ENDED DECEMBER 31, 2020

Statement 7

Expressed in thousands of NTD

Item Buildings Costs Accumulated depreciation ( Book value	Balance as of January 1, 2020 $ 50,789,295 6,415,803 ) ( $ 44,373,492	Additions Disposals $ 14,667,833 ( $ 2,930,798 ) 7,442,319 ) 1,608,445 ( $ 7,225,514 ( $ 1,322,353 )	Balance as of December 31, 2020 $ 62,526,330 12,249,677 ) $ 50,276,653	Footnote

Statement 7

PRESIDENT CHAIN STORE CORP. STATEMENT OF SHORT-TERM BORROWINGS

DECEMBER 31, 2020

Statement 8 Expressed in thousands of NTD

Type of borrowings	Explanation	Balance as of December 31, 2020 $ 600,000 2,100,000 400,000 $ 31,000,000	Contract period 2020/12/24~2021/1/22 2020/12/7~2021/1/6 2020/12/24~2021/1/22	Interest rate range 0.49% 0.49% 0.49%	Collateral None 〃 〃	Footnote
Credit loan 〃 〃	HSBC Limited MUFG Bank, Ltd. MUFG Bank, Ltd.

Statement 8

PRESIDENT CHAIN STORE CORP. STATEMENT OF SHORT-TERM NOTES AND BILLS PAYABLE DECEMBER 31, 2020

Statement 9 Expressed in thousands of NTD

Item Commercial paper payable 〃	Guarantee/Accepting agency Sumitomo Mitsui Banking Corporation Sumitomo Mitsui Banking Corporation	Period of contract 2020/12/7~2021/1/6 2020/12/24~2021/1/22	Range of interest rate 0.408% 0.408%			Amount	Book value $ 2,399,392 999,755 $ 3,399,147	Footnote
					Issue amount Discount of short-term transactions Instruments $ 2,400,000 ($ 608) 1,000,000 ( 245) $ 3,400,000 ($ 853)
								Note 〃

Note: The commercial paper was issued and secured by Sumitomo Mitsui Banking Corporation and International Bills Finance Corporation.

Statement 9

PRESIDENT CHAIN STORE CORP. STATEMENT OF LEASE LIABILITIES DECEMBER 31, 2020

Statement 10 Expressed in thousands of NTD

Item Buildings 〃	Summary Current Non-Current	Lease period 2007/1/1~2040/3/26 2007/1/1~2040/3/26	Discount rate range 0.74%~1.03% 〃		Balance as of December 31, 2020 $ 7,566,006 43,283,311 $ 50,849,317	Footnote

Statement 10

PRESIDENT CHAIN STORE CORP. STATEMENT OF OPERATING REVENUE

FOR THE YEAR ENDED DECEMBER 31, 2020

Statement 11 Item Revenue from contracts with customers	Amount $ 168,147,856	Expressed in thousands of NTD Footnote Revenue are from sales of general merchandise such as food, cans, beverages and daily commodities, etc., and commission revenue from collections, etc.

Statement 11

PRESIDENT CHAIN STORE CORP. STATEMENT OF OPERATING COSTS

FOR THE YEAR ENDED DECEMBER 31, 2020

Statement 12

Expressed in thousands of NTD

Item Inventory at beginning of the year Inventory purchased Compensation for damaged merchandise ( Promotion income ( Inventory at end of the year ( Others Operating costs	Amount $ 8,036,366 109,936,949 363,966 ) 586,759 ) 8,891,933 ) 3,460,156 $ 111,590,813

Statement 12

PRESIDENT CHAIN STORE CORP. STATEMENT OF SELLING EXPENSES

FOR THE YEAR ENDED DECEMBER 31, 2020

Statement 13

Expressed in thousands of NTD

Item Incentive bonuses for franchisees Wages and salaries Utilities expense Depreciation Other expenses	Amount $ 22,732,406 3,730,537 2,258,412 9,947,396 6,258,187 $ 44,926,938

Statement 13

PRESIDENT CHAIN STORE CORP.

STATEMENT OF EMPLOYEE BENEFIT, DEPRECIATION AND AMORTIZATION EXPENSES BY FUNCTION FOR THE YEARS ENDED DECEMBER 31, 2020 AND 2019

Statement 14 Expressed in thousands of NTD

Statement 14					Expressed in thousands of NTD	Expressed in thousands of NTD
By function Bynature		2020			2019
	Classified as operating costs	Classified as operating expenses	Total	Classified as operating costs	Classified as operating expenses	Total
Employee benefit expense
Wages and salaries	$ -	$ 5,949,019	$ 5,949,019	$ -	$ 5,870,712	$ 5,870,712
Labor and health insurance fees	-	484,022	484,022	-	477,863	477,863
Pension costs	-	262,184	262,184	-	268,017	268,017
Directors’ remuneration	-	191,433	191,433	-	199,553	199,553
Supervisors’ remuneration	-	-	-	-	-	-
Other employee benefit expenses	-	316,415	316,415	-	346,301	346,301
Depreciation	-	9,972,207	9,972,207	-	8,986,348	8,986,348
Amortization	-	25,898	25,898	-	55,700	55,700

Note1: As of December 31, 2020, and 2019, the Company had 8,500 and 8,430 employees (including part-timers), including 10 directors, respectively.

Note2: For the years ended December 31, 2020 and 2019, the Company’s average employee benefit expense was $826 and $827, respectively; while average wages and salaries was $701 and $697, respectively. For the year ended December 31, 2020, the Company’s change in average wages and salaries was 0.57%.

Note3: Wages and salaries of the Company is based on the principle of equal pay for equal work. Salaries adjustment and benefit distribution are based on the content of the employee’s position, performance and contribution, and regularly review the overall benefit of employees every year to ensure that the competitiveness of labor market.

Note4: The Company set up an audit committee, so there is no supervisor's remuneration.

Statement 14