PCSC - Interim / Quarterly Report 2018

PRESIDENT CHAIN STORE CORP. AND SUBSIDIARIES

CONSOLIDATED FINANCIAL STATEMENTS AND REVIEW REPORT OF INDEPENDENT ACCOUNTANTS SEPTEMBER 30, 2018 AND 2017

-----------------------------------------------------------------------------------------------------------------------------------For the convenience of readers and for information purposes 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 interpretation of the two versions, the Chinese-language auditors’ report and financial statements shall prevail.

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PRESIDENT CHAIN STORE CORP. AND SUBSIDIARIES CONSOLIDATED FINANCIAL STATEMENTS AND REVIEW REPORT OF INDEPENDENT ACCOUNTANTS SEPTEMBER 30, 2018 AND 2017

Items 1. Cover 2. Contents 3. Review report of financial statements 4. Consolidated balance sheets 5. Consolidated statements of comprehensive income 6. Consolidated statements of changes in equity 7. Consolidated statements of cash flows 8. Notes to the consolidated financial statements (1) History and organization (2) Date of authorization for issuance of the consolidated financial statements and procedures for authorization (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
	1 2 3 ~ 4 5 ~ 6 7 ~ 8 9 10 ~ 11 12 ~ 66 12 12 12 ~ 16 16 ~ 22 22 22 ~ 45 46 ~ 48 49 49 49 49 49 ~ 63 64 65 ~ 66

Items
1. Cover
2. Contents
3. Review report of financial statements
4. Consolidated balance sheets
5. Consolidated statements of comprehensive income
6. Consolidated statements of changes in equity
7. Consolidated statements of cash flows
8. Notes to the consolidated financial statements
(1) History and organization
(2) Date of authorization for issuance of the consolidated financial
statements and procedures for authorization
(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

1
2
3 ~ 4
5 ~ 6
7 ~ 8
9
10 ~ 11
12 ~ 66
12
12
12 ~ 16
16 ~ 22
22
22 ~ 45
46 ~ 48
49
49
49
49
49 ~ 63
64
65 ~ 66

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REVIEW REPORT OF FINANCIAL STATEMENTS

TRANSLATED FROM CHINESE

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

Introduction

We have reviewed the accompanying consolidated balance sheets of President Chain Store Corp. and subsidiaries as at September 30, 2018 and 2017, and the related consolidated statements of comprehensive income for the three-month and nine-month periods then ended, as well as consolidated statements of changes in equity and of cash flows for the nine-month periods then ended, and notes to the consolidated financial statements, including a summary of significant accounting policies. Management is responsible for the preparation and fair presentation of these consolidated financial statements in accordance with “Regulations Governing the Preparation of Financial Reports by Securities Issuers” and International Accounting Standard 34, “Interim Financial Reporting” as endorsed by the Financial Supervisory Commission. Our responsibility is to express a conclusion on these consolidated financial statements based on our reviews.

Scope of Review

Except as explained in the following paragraph, we conducted our reviews in accordance with the Statement of Auditing Standards No. 65 “Review of Financial Information Performed by the Independent Auditor of the Entity” in the Republic of China. A review of consolidated financial statements consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Basis for Qualified Conclusion

As explained in Notes 4(3) and 6(6), the financial statements of certain insignificant consolidated subsidiaries and investments accounted for using the equity method were not reviewed by independent accountants. Those statements reflect total assets of NT$32,900,970 thousand and NT$31,415,936 thousand, constituting 27% and 33% of the consolidated total assets, and total liabilities of NT$16,867,459 thousand and NT$13,117,364 thousand, constituting 20% and 22% of the consolidated total liabilities as at September 30, 2018 and 2017, respectively, and total comprehensive income of

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NT$593,659 thousand, NT$716,436 thousand, NT$1,627,987 thousand and NT$2,025,711 thousand, constituting 20%, 21%, 17% and 22% of the consolidated total comprehensive income for the threemonth and nine-month periods then ended September 30, 2018 and 2017, respectively.

Qualified Conclusion

Except for the adjustments to the consolidated financial statements, if any, as might have been determined to be necessary had the financial statements of certain insignificant consolidated subsidiaries and investments accounted for using the equity method, been reviewed by independent accountants, that we might have become aware of had it not been for the situation described above, based on our reviews, nothing has come to our attention that causes us to believe that the accompanying consolidated financial statements do not present fairly, in all material respects, the consolidated financial position of President Chain Store Corp. and subsidiaries as at September 30, 2018 and 2017, and of its consolidated financial performance for the three-month and nine-month periods then ended and its consolidated cash flows for the nine-month periods then ended in accordance with “Regulations Governing the Preparation of Financial Reports by Securities Issuers” and International Accounting Standard 34, “Interim Financial Reporting” as endorsed by the Financial Supervisory Commission.

Chun-Yuan, Hsiao Chien-Hung, Chou

For and on behalf of PricewaterhouseCoopers, Taiwan November 1, 2018

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

As the financial statements are the responsibility of the management, PricewaterhouseCoopers 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. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS

(Expressed in thousands of New Taiwan dollars)

(The consolidated balance sheets as of September 30, 2018 and 2017 are reviewed, not audited)

Assets	Notes	September 30, 2018 AMOUNT % $ 47,448,483 38 1,060,297 1 5,225,680 4 2,002,468 2 5,229 - 12,792,092 10 1,492,321 1 - - 2,536,350 2 72,562,920 58 85,683 - 979,725 1 - - - - 8,898,840 7 24,863,582 20 1,506,398 1 10,429,227 9 1,638,803 1 3,177,968 3 51,580,226 42 $ 124,143,146 100	December 31, 2017 AMOUNT % $ 35,783,291 26 1,560,025 1 4,868,902 3 28,412,101 20 2,097 - 13,387,122 10 1,417,175 1 - - 2,973,547 2 88,404,260 63 - - - - 1,050,734 1 25,721 - 8,655,722 6 24,982,342 18 1,519,115 1 10,656,713 8 1,409,184 1 3,177,469 2 51,477,000 37 $ 139,881,260 100	September 30, 2017
				AMOUNT % $ 28,311,564 30 1,008,917 1 4,157,156 4 1,960,986 2 40,664 - 12,040,624 13 1,528,930 2 2,610,424 3 2,436,638 3 54,095,903 58 - - - - 1,067,350 1 27,384 - 8,965,060 10 22,749,774 24 1,526,177 2 1,202,322 1 1,385,400 1 2,985,990 3 39,909,457 42 $ 94,005,360 100
Current assets 1100 Cash and cash equivalents 1110 Financial assets at fair value through profit or loss - current 1170 Accounts receivable, net 1200 Other receivables 1220 Current income tax assets 130X Inventories, net 1410 Prepayments 1460 Non-current assets held for sale, net 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 1523 Available-for-sale financial assets - non-current 1543 Financial assets measured at cost - non-current 1550 Investments accounted for using equity method 1600 Property, plant and equipment, net 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	6(1) 6(2) and 12(4) 6(3) and 7 6(6) 6(28) 6(4) 6(2) 6(5) 12(4) 12(4) 6(6) 6(7)(23), 7 and 8 6(8)(30) and 7 6(9) 6(28) 6(10) and 8

(Continued)

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PRESIDENT CHAIN STORE CORP. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS

(Expressed in thousands of New Taiwan dollars)

(The consolidated balance sheets as of September 30, 2018 and 2017 are reviewed, not audited)

					September 30,	2018			December 31, 2017	December 31, 2017		September 30,	2017
	Liabilities and Equity	Notes			AMOUNT	%			AMOUNT	%		AMOUNT	%
	Current liabilities
2100	Short-term borrowings	6(12) and 8		$	7,111,486	6		$	965,180	1	$	1,350,915	1
2110	Short-term notes and bills payable				210,000	-			250,000	-		379,996	-
2130	Contract liabilities - current	6(22)			4,180,681	3			-	-		-	-
2150	Notes payable	7			2,887,943	2			2,066,511	2		1,357,967	1
2170	Accounts payable				21,369,308	17			18,849,947	13		17,644,015	19
2180	Accounts payable - related parties	7			2,592,302	2			2,321,016	2		2,472,632	3
2200	Other payables	6(13)			26,126,851	21			30,980,251	22		22,110,768	24
2230	Current income tax liabilities	6(28)			1,138,797	1			4,834,364	3		850,333	1
2300	Other current liabilities	6(14)			1,767,115	2			5,352,651	4		4,644,881	5
21XX	Total current liabilities				67,384,483	54			65,619,920	47		50,811,507	54
	Non-current liabilities
2527	Contract liabilities - non-current	6(22)			307,670	-			-	-		-	-
2540	Long-term borrowings	6(15) and 8			1,004,980	1			1,105,451	1		969,312	1
2570	Deferred income tax liabilities	6(28)			5,357,729	4			4,652,948	3		179,261	-
2640	Net defined benefit liability	6(16)
	- non-current				4,581,426	4			4,574,800	3		4,250,756	4
2670	Other non-current liabilities	6(17)			4,149,596	4			4,421,731	3		4,277,764	5
25XX	Total non-current liabilities				15,401,401	13			14,754,930	10		9,677,093	10
2XXX	Total liabilities				82,785,884	67			80,374,850	57		60,488,600	64
	Equity attributable to owners of the
	parent
	Share capital	6(18)
3110	Share capital - common stock				10,396,223	8			10,396,223	8		10,396,223	11
	Capital surplus	6(19)
3200	Capital surplus				44,411	-			43,875	-		44,075	-
	Retained earnings	6(20)
3310	Legal reserve				12,293,442	10			9,191,733	7		9,191,733	10
3320	Special reserve				398,859	-			-	-		-	-
3350	Unappropriated retained earnings				9,906,841	8			31,381,290	22		9,156,712	10
	Other equity	6(21)
3400	Other equity interest		(		24,647)	-	(		398,859 ) (	1)		79,774	-
31XX	Equity attributable to owners of
	the parent				33,015,129	26			50,614,262	36		28,868,517	31
36XX	Non-controlling interest				8,342,133	7			8,892,148	7		4,648,243	5
3XXX	Total equity				41,357,262	33			59,506,410	43		33,516,760	36
3X2X	Total liabilities and equity			$	124,143,146	100		$	139,881,260	100	$	94,005,360	100

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

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

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

(Expressed in thousands of New Taiwan dollars) (UNAUDITED)

Items	Notes	For thethree-monthperiods ended September 30 For thenine-monthperiods ended September 30 2018 2017 2018 2017 AMOUNT % AMOUNT % AMOUNT % AMOUNT % $ 63,003,871 100 $ 57,283,454 100 $ 183,181,122 100 $ 165,458,292 100 ( 41,319,909)( 66 ) ( 38,010,634 )( 67)( 120,042,077)( 66 )( 110,580,348 )( 67) 21,683,962 34 19,272,820 33 63,139,045 34 54,877,944 33 ( 15,770,096 ) ( 25 ) ( 13,809,661 ) ( 24 ) ( 46,003,591 ) ( 25 ) ( 39,614,609 ) ( 24 ) ( 2,560,732 ) ( 4 ) ( 2,429,311 ) ( 4 ) ( 7,197,427 ) ( 4 ) ( 6,584,584 ) ( 4 ) 1,146 - - - ( 2,395 ) - - - ( 18,329,682 )( 29) ( 16,238,972 )( 28 )( 53,203,413 )( 29)( 46,199,193 )( 28 ) 3,354,280 5 3,033,848 5 9,935,632 5 8,678,751 5 519,202 1 431,772 1 1,719,877 2 1,194,978 1 ( 29,662 ) - ( 99,420 ) - ( 22,319 ) - ( 153,314 ) - ( 26,773 ) - ( 23,032 ) - ( 105,631 ) - ( 72,565 ) - 103,053 - 556,857 1 317,260 - 1,594,152 1 565,820 1 866,177 2 1,909,187 2 2,563,251 2 3,920,100 6 3,900,025 7 11,844,819 7 11,242,002 7 ( 805,570 )( 1 ) ( 506,650 )( 1 )( 2,852,953 )( 2 )( 1,685,699)( 1 ) 3,114,530 5 3,393,375 6 8,991,866 5 9,556,303 6 $ 3,114,530 5 $ 3,393,375 6 $ 8,991,866 5 $ 9,556,303 6	For thethree-monthperiods ended September 30 For thenine-monthperiods ended September 30 2018 2017 2018 2017 AMOUNT % AMOUNT % AMOUNT % AMOUNT % $ 63,003,871 100 $ 57,283,454 100 $ 183,181,122 100 $ 165,458,292 100 ( 41,319,909)( 66 ) ( 38,010,634 )( 67)( 120,042,077)( 66 )( 110,580,348 )( 67) 21,683,962 34 19,272,820 33 63,139,045 34 54,877,944 33 ( 15,770,096 ) ( 25 ) ( 13,809,661 ) ( 24 ) ( 46,003,591 ) ( 25 ) ( 39,614,609 ) ( 24 ) ( 2,560,732 ) ( 4 ) ( 2,429,311 ) ( 4 ) ( 7,197,427 ) ( 4 ) ( 6,584,584 ) ( 4 ) 1,146 - - - ( 2,395 ) - - - ( 18,329,682 )( 29) ( 16,238,972 )( 28 )( 53,203,413 )( 29)( 46,199,193 )( 28 ) 3,354,280 5 3,033,848 5 9,935,632 5 8,678,751 5 519,202 1 431,772 1 1,719,877 2 1,194,978 1 ( 29,662 ) - ( 99,420 ) - ( 22,319 ) - ( 153,314 ) - ( 26,773 ) - ( 23,032 ) - ( 105,631 ) - ( 72,565 ) - 103,053 - 556,857 1 317,260 - 1,594,152 1 565,820 1 866,177 2 1,909,187 2 2,563,251 2 3,920,100 6 3,900,025 7 11,844,819 7 11,242,002 7 ( 805,570 )( 1 ) ( 506,650 )( 1 )( 2,852,953 )( 2 )( 1,685,699)( 1 ) 3,114,530 5 3,393,375 6 8,991,866 5 9,556,303 6 $ 3,114,530 5 $ 3,393,375 6 $ 8,991,866 5 $ 9,556,303 6
		2018 2017 AMOUNT % AMOUNT $ 63,003,871 100 $ 57,283,454 ( 41,319,909)( 66 ) ( 38,010,634 ) 21,683,962 34 19,272,820 ( 15,770,096 ) ( 25 ) ( 13,809,661 ) ( 2,560,732 ) ( 4 ) ( 2,429,311 ) 1,146 - - ( 18,329,682 )( 29) ( 16,238,972 ) 3,354,280 5 3,033,848 519,202 1 431,772 ( 29,662 ) - ( 99,420 ) ( 26,773 ) - ( 23,032 ) 103,053 - 556,857 565,820 1 866,177 3,920,100 6 3,900,025 ( 805,570 )( 1 ) ( 506,650 ) 3,114,530 5 3,393,375 $ 3,114,530 5 $ 3,393,375	2017
4000 Operating revenue 5000 Operating costs 5900 Gross profit Operating expenses 6100 Selling expenses 6200 General and administrative expenses 6450 Expected credit losses (gains) 6000 Total operating expenses 6900 Operating profit Non-operating income and expenses 7010 Other income 7020 Other gains and losses 7050 Finance costs 7060 Share of profit of associates and joint ventures accounted for using equity method 7000 Total non-operating income and expenses 7900 Profit before income tax 7950 Income tax expense 8000 Profit for the period from continuing operations 8200 Profit for the period	6(22) and 7 6(4)(23) and 7 6(23)(24) 12(2) 6(25) 6(26) 6(27) 6(6) 6(28)

(Continued)

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

(Expressed in thousands of New Taiwan dollars) (UNAUDITED)

Items	Notes	For the three-monthperiods ended September 30 2018 2017 AMOUNT % AMOUNT % $ - - $ - - ( 21,612 ) - - - ( 559 ) - - - 883 - - - ( 21,288) - - - ( 59,980 ) - 9,044 - - - 38,188 - ( 210 ) - - - 8,852 - 3,788 - - - ( 3,488) - ( 51,338) - 47,532 - ($ 72,626) - $ 47,532 - $ 3,041,904 5 $ 3,440,907 6 $ 2,774,097 4 $ 3,086,433 5 340,433 1 306,942 1 $ 3,114,530 5 $ 3,393,375 6 $ 2,725,013 4 $ 3,150,500 5 316,891 1 290,407 1 $ 3,041,904 5 $ 3,440,907 6 $ 2.67 $ 2.97 $ 2.67 $ 2.97	For the three-monthperiods ended September 30 2018 2017 AMOUNT % AMOUNT % $ - - $ - - ( 21,612 ) - - - ( 559 ) - - - 883 - - - ( 21,288) - - - ( 59,980 ) - 9,044 - - - 38,188 - ( 210 ) - - - 8,852 - 3,788 - - - ( 3,488) - ( 51,338) - 47,532 - ($ 72,626) - $ 47,532 - $ 3,041,904 5 $ 3,440,907 6 $ 2,774,097 4 $ 3,086,433 5 340,433 1 306,942 1 $ 3,114,530 5 $ 3,393,375 6 $ 2,725,013 4 $ 3,150,500 5 316,891 1 290,407 1 $ 3,041,904 5 $ 3,440,907 6 $ 2.67 $ 2.97 $ 2.67 $ 2.97	For the three-monthperiods ended September 30 2018 2017 AMOUNT % AMOUNT % $ - - $ - - ( 21,612 ) - - - ( 559 ) - - - 883 - - - ( 21,288) - - - ( 59,980 ) - 9,044 - - - 38,188 - ( 210 ) - - - 8,852 - 3,788 - - - ( 3,488) - ( 51,338) - 47,532 - ($ 72,626) - $ 47,532 - $ 3,041,904 5 $ 3,440,907 6 $ 2,774,097 4 $ 3,086,433 5 340,433 1 306,942 1 $ 3,114,530 5 $ 3,393,375 6 $ 2,725,013 4 $ 3,150,500 5 316,891 1 290,407 1 $ 3,041,904 5 $ 3,440,907 6 $ 2.67 $ 2.97 $ 2.67 $ 2.97	For the nine-monthperiods ended September 30	For the nine-monthperiods ended September 30	For the nine-monthperiods ended September 30	For the nine-monthperiods ended September 30
		2018	% - - - - - - - - - - - - 5 4 1 5 4 1 5 2.67 2.67	2017	2018	2017 % AMOUNT - ($ 509 ) - - - - - - - ( 509) - ( 380,399 ) - 167,897 - - - ( 10,281 ) - ( 9,730) - ( 232,513) - ($ 233,022) 5 $ 9,323,281 4 $ 8,618,381 1 937,922 5 $ 9,556,303 4 $ 8,526,300 1 796,981 5 $ 9,323,281 7.64 $ 7.63 $	2017
		AMOUNT $ - ( 21,612 ) ( 559 ) 883 ( 21,288) ( 59,980 ) - ( 210 ) 8,852 - ( 51,338) ($ 72,626) $ 3,041,904 $ 2,774,097 340,433 $ 3,114,530 $ 2,725,013 316,891 $ 3,041,904 $		AMOUNT $ - - - - - 9,044 38,188 - 3,788 ( 3,488) 47,532 $ 47,532 $ 3,440,907 $ 3,086,433 306,942 $ 3,393,375 $ 3,150,500 290,407 $ 3,440,907 $	AMOUNT $ - ( 9,862 ) 533 49,332 40,003 319,698 - ( 1,117 ) 2,923 - 321,504 $ 361,507 $ 9,353,373 $ 7,944,089 1,047,777 $ 8,991,866 $ 8,394,877 958,496 $ 9,353,373 $			%
Other comprehensive income (loss) 8311 Remeasurements of net actuarial loss on defined benefit plan 8316 Unrealized gain on valuation of equity instruments at fair value through other comprehensive income 8320 Share of other comprehensive income of associates and joint ventures accounted for using equity method that will not be reclassified to profit or loss 8349 Income tax effect that will not be reclassified to profit or loss 8310 Components of other comprehensive income (loss) that will not be reclassified to profit or loss 8361 Exchange differences from translation of foreign operations 8362 Unrealized gain on valuation of available-for-sale financial assets 8367 Unrealized loss on valuation of bond instruments at fair value through other comprehensive income 8370 Share of other comprehensive loss of associates and joint ventures accounted for using equity method, components of other comprehensive loss that will be reclassified to profit or loss 8399 Income tax relating to the components of other comprehensive income that will be reclassified to profit or loss 8360 Components of other comprehensive income (loss) that will be reclassified to profit or loss 8300 Total other comprehensive income (loss) for the period 8500 Total comprehensive income for the period Profit attributable to: 8610 Owners of the parent 8620 Non-controlling interests Comprehensive income attributable to: 8710 Owners of the parent 8720 Non-controlling interests 9750 Basic earnings per share (in dollars) 9850 Diluted earnings per share (in dollars)	6(5) 6(28) 6(21) 6(5) 6(21) 6(21)(28) 6(29) 6(29)							- - - -
								-
								- - - - -
								-
								-
								6
								5 1
								6
								6 -
								6
								8.29
		$		$	$		$	8.27

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

Chairman: Lo, Chih-Hsien

President : Huang, Jui-Tien

Accounting Manager: Kuo, Ying-Chih

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

(Expressed in thousands of New Taiwan dollars) (UNAUDITED)

Notes				E	quityattributable to	ners of theparent
	Share capital - common stock $10,396,223 - - - - - - - - - $10,396,223 $ 10,396,223 - 10,396,223 - - - - - - - - $10,396,223	Capital surplus $ 1,158 - - - - - 36 - 42,881 - $ 44,075 $ 43,875 - 43,875 - - - - - - - 536 $ 44,411		Retained earnings			Other equity in	terest	Equity directly related to non-current assets held for sale $ - - - - - - - ( 88,031 ) - - ($ 88,031) $ - - - - - - - - - - - $ -	Total $28,616,278 8,618,381 ( 92,081) 8,526,300 - ( 8,316,978) 36 - 42,881 - $28,868,517 $ 50,614,262 ( 3,990) 50,610,272 7,944,089 450,788 8,394,877 - - ( 25,990,556) - 536 $33,015,129
			Legal reserve $ 8,208,064 - - - 983,669 - - - - - $ 9,191,733 $ 9,191,733 - 9,191,733 - - - 3,101,709 - - - - $12,293,442	Special reserve $ - - - - - - - - - - $ - $ - - - - - - - 398,859 - - - $ 398,859	Unappropriated retained earnings $ 9,839,244 8,618,381 ( 266) 8,618,115 ( 983,669) ( 8,316,978) - - - - $ 9,156,712 $ 31,381,290 25,463 31,406,753 7,944,089 47,123 7,991,212 ( 3,101,709) ( 398,859) ( 25,990,556) - - $ 9,906,841	Exchange differences from translation of foreign operations ($ 186,228) - ( 253,235) ( 253,235) - - - 88,031 - - ($ 351,432) ($ 906,308 ) - ( 906,308) - 417,222 417,222 - - - - - ($ 489,086)	Unrealized gain or loss on valuation of financial assets at fair value through other comprehensive Income $ - - - - - - - - - - $ - $ - 477,996 477,996 - ( 13,557) ( 13,557) - - - - - $ 464,439	Unrealized gain or loss on available- for- sale financial assets $ 357,817 - 161,420 161,420 - - - - - - $ 519,237 $ 507,449 ( 507,449 ) - - - - - - - - - $ -
6(21) 3(1) 6(21)

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

Chairman: Lo, Chih-Hsien

President: Huang, Jui-Tien

Accounting Manager: Kuo, Ying-Chih

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PRESIDENT CHAIN STORE CORP. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS

(Expressed in thousands of New Taiwan dollars)

(UNAUDITED)

				For the nine -month	For the nine -month
				periods ended September		30
	Notes			2018	2017
CASH FLOWS FROM OPERATING ACTIVITIES
Consolidated profit before income tax for the period			$	11,844,819 $	11,242,002
Adjustments to reconcile profit before income tax to net cash
provided by operating activities
Income and expenses having no effect on cash flows
Loss (gain) on valuation of financial assets at fair value	6(2)and
through profit or loss	12(4)			4,964 (		2,277 )
Provision for doubtful accounts	12(4)			-		10,550
Expected credit losses	12(2)			2,395		-
Depreciation on property, plant and equipment	6(7)			4,475,377	3,845,321
Amortization				434,286		265,822
Depreciation on investment property	6(8)			12,717		12,681
Finance costs	6(27)			105,631		72,565
Share of profit of associates and joint ventures accounted	6(6)
for using equity method		(		317,260 ) (	1,594,152 )
Gain on disposal of investments accounted for using the	6(26)and7
equity method		(		59 )		-
Loss on disposal of property, plant and equipment, net	6(26)			6,537		30,343
Interest income	6(25)	(		502,011 ) (		118,601 )
Dividend income	6(25)	(		62,629 ) (		15,674 )
Changes in assets/liabilities relating to operating activities
Net changes in assets relating to operating activities
Financial assets at fair value through profit or loss				494,764 (		158,686 )
Accounts receivable		(		290,004 ) (		382,179 )
Other receivables		(		325,465 ) (		289,400 )
Inventories				595,030		2,796
Prepayments		(		75,146 ) (		141,471 )
Other current assets				493,499		133,480
Net changes in liabilities relating to operating activities
Contract liabilities - current				245,323		-
Accounts payable				2,790,647		189,408
Notes payable				821,432 (		849,146 )
Other payables		(		910,223 ) (		204,653 )
Advance receipts				264,672		226,351
Contract liabilities - non-current		(		38,341 )		-
Net defined benefit liabilities - non-current				6,626 (		15,216 )
Cash generated from operations				20,077,581	12,259,864
Interest received				498,431		124,821
Income tax paid		(		6,027,158 ) (	2,043,879 )
Interest paid		(		105,761 ) (		73,078 )
Dividends received				1,234,288	1,084,105
Net cash provided by operating activities				15,677,381	11,351,833
(Continued)

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PRESIDENT CHAIN STORE CORP. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS

(Expressed in thousands of New Taiwan dollars)

(UNAUDITED)

CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from disposal of investments accounted for using the
equity method

Acquisition of subsidiary

Acquisition of property, plant and equipment

Acquisition of investment property

Proceeds from disposal of property, plant and equipment
Return of capital from available-for-sale financial
assets-non-current
Increase in guarantee deposits paid
Acquisition of intangible assets

Increase in other non-current assets
Net cash provided by (used in) investing activities
CASH FLOWS FROM FINANCING ACTIVITIES
Increase (decrease) in short-term borrowings

(Decrease) increase in short-term notes and bills payable

Increase in long-term borrowings

Repayment of long-term borrowings

Increase in guarantee deposits received

Increase in other non-current liabilities

Change in non-controlling interests
Payment of cash dividends - the company

Payment of cash dividends - subsidiaries
Net cash used in financing activities
Effect of foreign exchange rate changes on cash and cash
equivalents
Increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period

Notes

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

Chairman: Lo, Chih-Hsien

President: Huang, Jui-Tien

Accounting Manager: Kuo, Ying-Chih

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

SEPTEMBER 30, 2018 AND 2017

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

(UNAUDITED)

1. HISTORY AND ORGANIZATION

(1) President Chain Store Corporation (the “Company”) was established on June 10, 1987. The main businesses of the Company and its subsidiaries (collectively referred herein as the “Group”) are managing convenience stores, restaurants, drugstores, department stores, supermarkets and online shopping stores. Business areas include Taiwan, Mainland China, Philippines and Japan. The common shares of the Company have been listed on the Taiwan Stock Exchange since August 22, 1997. Details of the Group’s main operating activities and segment information are provided in Notes 4 and 14.
(2) The Group’s ultimate parent company is Uni-President Enterprises Corp., which holds a 45.4% equity interest in the Company.
DATE OF AUTHORIZATION FOR ISSUANCE OF THE CONSOLIDATED FINANCIAL STATEMENTS AND PROCEDURES FOR AUTHORIZATION

These consolidated financial statements were reported to the Board of Directors on November 1, 2018.

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”)
A. New standards, interpretations and amendments as endorsed by FSC effective from 2018 are as follows:

New Standards, Interpretations and Amendments Amendments to IFRS 2, ‘Classification and measurement of share- based payment transactions’ Amendments to IFRS 4, ‘Applying IFRS 9, Financial instruments with IFRS 4,Insurance contracts’ IFRS 9, ‘Financial instruments’ IFRS 15, ‘Revenue from contracts with customers’ Amendments to IFRS 15, ‘Clarifications to IFRS 15, Revenue from contracts with customers’ Amendments to IAS 7, ‘Disclosure initiative’ Amendments to IAS 12, ‘Recognition of deferred tax assets for unrealized Amendments to IAS 40, ‘Transfers of investment property’ IFRIC 22, ‘Foreign currency transactions and advance consideration’ Annual improvements to IFRSs 2014-2016 cycle - Amendments to IFRS 1,‘First-time adoption of International Financial Reporting Standards’ Annual improvements to IFRSs 2014-2016 cycle - Amendments to IFRS 12,‘Disclosure of interests in other entities’ Annual improvements to IFRSs 2014-2016 cycle - Amendments to IAS 28,‘Investments in associates and joint ventures’	Effective date by International Accounting Standards Board
	January 1, 2018 January 1, 2018 January 1, 2018 January 1, 2018 January 1, 2018 January 1, 2017 January 1, 2017 January 1, 2018 January 1, 2018 January 1, 2018 January 1, 2017 January 1, 2018

New Standards, Interpretations and Amendments
Amendments to IFRS 2, ‘Classification and measurement of share-
based payment transactions’
Amendments to IFRS 4, ‘Applying IFRS 9, Financial instruments
with IFRS 4,Insurance contracts’
IFRS 9, ‘Financial instruments’
IFRS 15, ‘Revenue from contracts with customers’
Amendments to IFRS 15, ‘Clarifications to IFRS 15, Revenue from
contracts with customers’
Amendments to IAS 7, ‘Disclosure initiative’
Amendments to IAS 12, ‘Recognition of deferred tax assets for
unrealized
Amendments to IAS 40, ‘Transfers of investment property’
IFRIC 22, ‘Foreign currency transactions and advance
consideration’
Annual improvements to IFRSs 2014-2016 cycle - Amendments to
IFRS 1,‘First-time adoption of International Financial Reporting
Standards’
Annual improvements to IFRSs 2014-2016 cycle - Amendments to
IFRS 12,‘Disclosure of interests in other entities’
Annual improvements to IFRSs 2014-2016 cycle - Amendments to
IAS 28,‘Investments in associates and joint ventures’

Effective date by International
Accounting Standards Board

January 1, 2018
January 1, 2018
January 1, 2018
January 1, 2018
January 1, 2018
January 1, 2017
January 1, 2017
January 1, 2018
January 1, 2018
January 1, 2018
January 1, 2017
January 1, 2018

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

IFRS 9, “Financial instruments”

(a) Classification of debt instruments is driven by the entity’s business model and the contractual cash flow characteristics of the financial assets, which would be classified as financial asset at fair value through profit or loss, financial asset measured at fair value through other comprehensive income or financial asset measured at amortized cost. Equity instruments would be classified as financial asset at fair value through profit or loss, unless an entity makes an irrevocable election at inception to present in other comprehensive income subsequent changes in the fair value of an investment in an equity instrument that is not held for trading.
(b) The impairment losses of debt instruments are assessed using an “expected credit loss” approach. An entity assesses at each balance sheet date whether there has been a significant increase in credit risk on that instrument since initial recognition to recognize 12-month expected credit losses (“ECL”) or lifetime ECL (interest revenue would be calculated on the gross carrying amount of the asset before impairment losses occurred); or if the instrument that has objective evidence of impairment, interest revenue after the impairment would be calculated on the book value of net carrying amount (i.e. net of credit allowance). The Group shall always measure the loss allowance at an amount equal to lifetime expected credit losses for trade receivables that do not contain a significant financing component.
C. In adopting the new standards endorsed by the FSC effective from 2018, the Group has adopted the modified retrospective approach in IFRS 9 and IFRS 15. The Group also applied transitional provisions of IFRS 15 to incomplete contracts at the date of January 1, 2018. The significant effects of applying the new standards as of January 1, 2018 are summarized below:

Consolidated balance sheet Affected items January 1, 2018 Accounts receivable, net Other current assets Financial assets at fair value through profit or loss - non-current Financial assets at fair value through other comprehensive income - non-current Available-for-sale financial assets - non-current Financial assets at cost - non-current Investment accounted using for equity method Other non-current assets Total affected assets	2017 version IFRSs amount $ 4,868,902 83,535,358 - - 1,050,734 ( 25,721( 8,655,722 41,744,823 $ 139,881,260	Effect of adoption of new standards $ 69,169 56,302 85,833 990,622 1,050,734 ) 25,721) 1,696 - $ 127,167	2018 version IFRSs amount $ 4,938,071 83,591,660 85,833 990,622 - - 8,657,418 41,744,823 $ 140,008,427	Remark
				(a)(b) (a) (c) (d) (c)(d) (c) (e)

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Consolidated balance sheet Affected items January 1, 2018 Current liabilities Other current liabilities Contract liabilities - current Refund liabilities Contract liabilities - non-current Other non-current liabilities Total affected liabilities Share capital Capital surplus Retained earnings Other equity interest ( Non-controlling interest Total affected equity Total affected liabilities and equity	2017 version IFRSs amount $ 60,267,269 5,352,651 ( - - - 14,754,930 ( 80,374,850 10,396,223 43,875 40,573,023 398,859 ) ( 8,892,148 ( 59,506,410 ( $ 139,881,260	Effect of adoption of new standards $ - $ 3,935,358 ) 3,935,358 136,360 346,011 346,011 ) 136,360 - - 25,463 29,453 ) ( 5,203 ) 9,193 ) $ 127,167 $	$	2018 version IFRSs amount 60,267,269 1,417,293 3,935,358 136,360 346,011 14,408,919 80,511,210 10,396,223 43,875 40,598,486 428,312 ) 8,886,945 59,497,217 140,008,427	Remark (f) (f) (a) (f) (f) (b)(c)(e) (c)(e) (b)


			$

Explanation:

(a) Under IFRS 15, if the customer returns a product, the Group is obliged to refund the purchase price. Therefore, a gross contract liability (refund liability) for the expected refunds to customers is recognized as adjustment to revenue. At the same time, the Group has a right to recover the product from the customer where the customer exercises his right of return and recognizes an asset and a corresponding adjustment to cost of sales. The asset is measured by reference to the former carrying amount of the product as the products are not material.

Liabilities in relation to expected sales discounts and allowances were previously presented as accounts receivable - allowance for sales discounts in the balance sheet. As a result of these changes in accounting policies, accounts receivable was increased by $80,058, refund liability increased by $136,360 and other current assets increased by $56,302 on January 1, 2018.

(b) In line with the regulations of IFRS 9 on provision for impairment, accounts receivable was reduced by $10,889, retained earnings and non-controlling interests decreased by $5,686 and $5,203, respectively.
(c) In accordance with IFRS 9, the Group reclassified available-for-sale financial assets and financial assets at cost in the amounts of $60,112 and $25,721, respectively, by increasing financial assets at fair value through profit or loss and retained earnings in the amounts of $85,833 and $22,498, respectively, and decreasing other equity interest in the amount of $22,498.
(d) In accordance with IFRS 9, the Group reclassified available-for-sale financial assets in the amount of $990,622 and made an irrevocable election at initial recognition on equity instruments not held for dealing or trading purpose, by increasing financial assets at fair value through other comprehensive income in the amount of $990,622.

~14~

(e) The Group’s investee accounted for using the equity method made certain reclassifications in accordance with IFRS 9. Accordingly, the Group increased investments accounted for using the equity method and retained earnings in the amounts of $1,696 and $8,651, respectively, and decreased other equity interest in the amount of $6,955.
(f) Presentation of contract liabilities:
In line with IFRS 15 requirements, the Group changed the presentation of certain accounts in the balance sheet as follows:
(i) Under IFRS 15, liabilities in relation to sales of gift certificates and gift cards, and franchise agreements are recognized as contract liabilities, but were previously presented as advance sales receipts in the balance sheet. As of January 1, 2018, the balance amounted to $3,935,358.
(ii) Under IFRS 15, liabilities in relation to the customer loyalty program are recognized as contract liabilities, but were previously presented as deferred revenue in the balance sheet. As of January 1, 2018, the balance amounted to $346,011.
(g) Please refer to Notes 12(4) and 12(5) for other disclosure(s) in relation to the first application of IFRS 9 and IFRS 15.

(2) Effect of new issuances of or amendments to IFRSs as endorsed by the FSC but not yet adopted by the Group New standards, interpretations and amendments endorsed by the FSC effective from 2019 are as follows:

New standards, interpretations and amendments endorsed by the follows:	FSC effective from 2019 are as	FSC effective from 2019 are as
	Effective date by International
New Standards, Interpretations and Amendments	Accounting Standards Board
Amendments to IFRS 9, ‘Prepayment features with negative		January 1, 2019
compensation’
IFRS 16, ‘Leases’		January 1, 2019
Amendments to IAS 19, ‘Plan amendment, curtailment or		January 1, 2019
settlement’
Amendments to IAS 28, ‘Long-term interests in associates and joint		January 1, 2019
ventures’
IFRIC 23, ‘Uncertainty over income tax treatments’		January 1, 2019
Annual improvements to IFRSs 2015-2017 cycle		January 1, 2019
Except for the following, the above standards and interpretations have	no significant impact to the Group’s
financial condition and financial performance based on the Group’s assessment.
IFRS 16,`‘`Leases’

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

~15~

The Group expects to recognize the lease contract of lessees in line with IFRS 16. However, the Group intends not to restate the financial statements of prior period (referred herein as the “modified retrospective approach”), and the effects will be adjusted on January 1, 2019.

(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:

by the FSC are as follows:
New Standards, Interpretations and Amendments Amendments to IFRS 3, ‘Definition of a business’ Amendments to IFRS 10 and IAS 28, ‘Sale or contribution of assets between an investor and its associate or joint venture’ IFRS 17, ‘Insurance contracts’	Effective date by International Accounting Standards Board
	January 1, 2020 To be determined by International Accounting Standards Board January 1, 2021

The above standards and interpretations have no significant impact to the Group’s financial condition and financial performance based on the Group’s assessment. The quantitative impact will be disclosed when the assessment is complete.

4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Except for the compliance statement, basis of preparation, basis of consolidation, and the additional descriptions described below, the other principal accounting policies are in agreement with Note 4 of the consolidated financial statements for the year ended December 31, 2017. These policies have been consistently applied to all the periods presented, unless otherwise stated.

(1) Compliance statement

A. The consolidated financial statements of the Group have been prepared in accordance with the “Regulations Governing the Preparation of Financial Reports by Securities Issuers” and IAS 34, “Interim Financial Reporting” as endorsed by the FSC.
B. The consolidated financial statements should be read together with the consolidated financial statements for the year ended December 31, 2017.

(2) Basis of preparation

A. Except for the following items, the consolidated financial statements have been prepared under the historical cost convention:
(a) Financial assets and financial liabilities at fair value through profit or loss.
(b) Financial assets at fair value through other comprehensive income.
(c) Defined benefit liabilities recognized based on the net amount of pension fund assets less the present value of defined benefit obligations.
B. The preparation of financial statements, in compliance with International Financial Reporting Standards, International Accounting Standards, IFRIC Interpretations, and SIC Interpretations as endorsed by the FSC (collectively referred herein as the “IFRSs”), requires the use of certain critical accounting estimates and the exercise of management’s judgement in applying the Group’s accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the consolidated financial statements are disclosed in Note 5.
C. In adopting IFRS 9 and IFRS 15 effective January 1, 2018, the Group elected to apply modified retrospective approach whereby the cumulative impact of the adoption was recognized as retained earnings or other equity as of January 1, 2018 and the financial statements for the year ended December

~16~

31, 2017 and the third quarter of 2017 were not restated. The financial statements for the year ended December 31, 2017 and the third quarter of 2017 were prepared in compliance with International Accounting Standard 39 (‘IAS 39’), International Accounting Standard 18 (‘IAS 18’) and related financial reporting interpretations. Please refer to Notes 12(4) and (5) for details of significant accounting policies and details of significant accounts.

(3) Basis of consolidation
A. The basis for preparation of consolidated financial statements is as follows:
- (a) The basis for preparation of these consolidated financial statements is consistent with those for the preparation of consolidated financial statements for the year ended December 31, 2017.
- (b) The details of the individual financial statements of the Company’s subsidiaries reviewed or unreviewed by the independent accountants are summarized below:

basis for preparation of consolidated financial statements is as follows: The basis for preparation of these consolidated financial statements is consistent with those for the preparation of consolidated financial statements for the year ended December 31, 2017. The details of the individual financial statements of the Company’s subsidiaries reviewed or unreviewed by the independent accountants are summarized below:	basis for preparation of consolidated financial statements is as follows: The basis for preparation of these consolidated financial statements is consistent with those for the preparation of consolidated financial statements for the year ended December 31, 2017. The details of the individual financial statements of the Company’s subsidiaries reviewed or unreviewed by the independent accountants are summarized below:
Name of the subsidiaries September 30,2018 September 30,2017
Retail Support International Corp. Financial statements were reviewed Financial statements were reviewed
President Chain Store (BVI) Holdings Ltd.	`〃` `〃`
Shan Dong President Yinzuo Commercial Limited	`〃` `〃`
Mech-President Corp.	`〃` `〃`
President Transnet Corp.	`〃` `〃`
President Drugstore Business Corp.	`〃` `〃`
Books.com. Co., Ltd.	`〃` `〃`
Uni-President Cold-Chain Corp.	`〃` `〃`
Uni-President Superior Commissary Corp.	`〃` `〃`
President Pharmaceutical Corp.	`〃` `〃`
Uni-President Department Store Corp.	`〃` `〃`
President Chain Store (Hong Kong) Holdings Limited `〃` Financial statements were unreviewed
Other subsidiaries Financial statements were unreviewed `〃`

(c) The financial statements of the subsidiary, Philippine Seven Corp., for the year ended December 31, 2017 were audited by other independent accountants, and the financial statements of other subsidiaries were audited by the same independent accountants as appointed by the Company.

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

Name of investor The Company The Company The Company The Company The Company	Name of subsidiary President Chain Store (BVI) Holdings Ltd. PCSC (China) Drugstore Limited Wisdom Distribution Service Corp. President Drugstore Business Corp. Ren-Hui Investment Corp.	Main business activities Professional investment Professional investment Logistics and storage of publication and e-commerce Sales of cosmetics, medicine and daily items Professional investment	Ownership (%)	Ownership (%)	September 30,2017 100.00 92.20 100.00 100.00 100.00	Description
			September 30,2018 100.00 92.20 100.00 100.00 100.00	December 31, 2017 100.00 92.20 100.00 100.00 100.00

~17~

Main business activities Enterprise management consultancy Art and cultural exhibition	Ownership (%)	Ownership (%)	Description
	September 30,2018 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 90.00 86.76 86.00 80.87 73.74 70.00 70.00 70.00 60.00 60.00 51.00 51.00 50.03 25.00 100.00 100.00 100.00 20.00 60.00 25.00 100.00	December 31, 2017 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 90.00 86.76 86.00 80.87 73.74 70.00 70.00 70.00 60.00 60.00 51.00 51.00 50.03 25.00 100.00 100.00 100.00 20.00 60.00 25.00 100.00
			(a) (b)
Sales of ice cream
Life and property insurance Restaurant and sales of goods Sports and entertainment business Bread and pastry retailer Enterprise management consultancy Electronic ticketing Fresh food manufacture Information software services Enterprise information management and consultancy Gas station, installment and maintenance of elevators Sales of various health care products, cosmetics, and pharmaceuticals Collection agent Department stores Delivery service Low-temperature logistics and warehousing Coffee chain store Cleaning instruments leasing and selling Operation of restaurants Retail business without shop Room-temperature logistics and warehousing Professional investment Professional investment Wholesale of merchandise Trucking Publishing Trucking Professional investment

~18~

Name of investor Retail Support International Corp. Retail Support International Corp. Retail Support Taiwan Corp. President Logistics International Corp. Duskin Serve Taiwan Co. Books.com. Co., Ltd. Books.com. (BVI) Ltd. Mech-President Corp. President Pharmaceutical Corp. President Pharmaceutical (Hong Kong) Holdings Limited President Chain Store (Labuan) Holdings Ltd. Philippine Seven Corporation President Chain Store (Hong Kong) Holdings Limited President Chain Store (Hong Kong) Holdings Limited President Chain Store (Hong Kong) Holdings Limited President Chain Store (Hong Kong) Holdings Limited President Chain Store (Hong Kong) Holdings Limited President Chain Store (Hong Kong) Holdings Limited President Chain Store (Hong Kong) Holdings Limited President Chain Store (Hong Kong) Holdings Limited	Name of subsidiary Retail Support Taiwan Corp. President Logistics International Corp. President Logistics International Corp. Chieh-Shuen Logistics International Corp. Duskin China (BVI) Holdings Limited Books.com. (BVI) Ltd. Bejing Bokelai Customer Co. President Jing Corp. President Pharmaceutical (Hong Kong) Holdings Limited President (Shanghai) Health Product Trading Company Ltd. Philippine Seven Corporation Convenience Distribution Inc. PCSC (China) Drugstore Limited President Chain Store (Shanghai) Ltd. Shanghai President Logistics Co., Ltd. PCSC Restaurant (Cayman) Holdings Limited Shan Dong President Yinzuo Commercial Limited PCSC (Chengdu) Hypermarket Limited Shanghai Cold Stone Ice Cream Corporation Ltd. President Chain Store (Taizhou) Ltd.	Main business activities Room-temperature logistics and warehousing Trucking Trucking Trucking Professional investment Professional investment Enterprise information consulting, network technology development and services Gas station Sales of various health care products, cosmetics, and pharmaceuticals Sales of various health care products, cosmetics, and pharmaceuticals Operation of chain store Logistics and warehosuing Professional investment Operation of chain store Logistics and warehousing Professional investment Supermarkets Retail hypermarket Sales of ice cream Logistics and warehousing	Ownership (%)	Ownership (%)	September 30,2017 51.00 49.00 6.00 100.00 100.00 100.00 100.00 60.00 100.00 100.00 52.22 100.00 7.80 100.00 100.00 100.00 40.00 100.00 100.00 100.00	Description
			September 30,2018 51.00 49.00 6.00 100.00 - 100.00 100.00 60.00 100.00 100.00 52.22 100.00 7.80 100.00 100.00 100.00 40.00 100.00 100.00 100.00	December 31, 2017 51.00 49.00 6.00 100.00 - 100.00 100.00 60.00 100.00 100.00 52.22 100.00 7.80 100.00 100.00 100.00 40.00 100.00 100.00 100.00
						(c)

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Name of investor President Chain Store (Hong Kong) Holdings Limited President Chain Store (Hong Kong) Holdings Limited Shanghai President Logistics Co., Ltd. Shanghai President Logistics Co., Ltd. PCSC Restaurant (Cayman) Holdings Limited Uni-President Logistics (BVI) Holdings Limited Ren-Hui Investment Corp Ren-Hui Holdings Co., Ltd.	Name of subsidiary President Chain Store (Zhejiang) Ltd. Beauty Wonder (Zhejiang) Trading Co.,Ltd. Zhejiang Uni-Champion Logistics Development Co., Ltd. President Logistic ShanDong Co., Ltd. Shanghai President Chain Store Corporation Trade Co., Ltd. Zhejiang Uni-Champion Logistics Development Co., Ltd. Ren Hui Holding Co., Ltd Shan Dong President Yinzuo Commercial Limited .	Main business activities Operation of chain store Sales of cosmetics and medicine Logistics and warehousing Logistics and warehousing Trade of food and commodities Logistics and warehousing Professional investment Retail hypermarket	Ownership (%)	Ownership (%)	September 30,2017 100.00 - 50.00 100.00 100.00 50.00 100.00 15.00	Description
			September 30,2018 100.00 100.00 50.00 100.00 100.00 50.00 100.00 15.00	December 31, 2017 100.00 - 50.00 100.00 100.00 50.00 100.00 15.00
						(d)

  - (a) The Company acquired an additional 30% shares of Uni-Wonder Corp. (formerly known as “President Starbucks Coffee Corp.”), in December 2017 having control over it. Please refer to Note 6(6)D.

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

  - (c) The Company liquidated the subsidiary, Duskin China (BVI) Holdings Limited, and the process of cancellation of registration has been completed in January 2018.

  - (d) The subsidiary of the Company was established in June 2018.

C. Subsidiaries not included in the consolidated financial statements: None.
D. Adjustments for subsidiaries with different balance sheet dates: None.
E. Significant restrictions: None.
F. Subsidiaries that have non-controlling interests that are material to the Group: None.
(4) Financial assets at fair value through profit or loss
A. Financial assets at fair value through profit or loss are financial assets that are not measured at amortized cost or fair value through other comprehensive income.
B. On a regular way purchase or sale basis, financial assets at fair value through profit or loss are recognized and derecognized using settlement date accounting.
C. At initial recognition, the Group measures the financial assets at fair value and recognizes the transaction costs in profit or loss. The Group subsequently measures the financial assets at fair value, and recognizes the gain or loss in profit or loss.
D. The Group recognizes the dividend income when the right to receive payment is established, future economic benefits associated with the dividend will flow to the Group and the amount of the dividend can be measured reliably.

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

A. Financial assets at fair value through other comprehensive income comprise equity securities which are not held for trading, and for which the Group has made an irrevocable election at initial recognition to recognize changes in fair value in other comprehensive income and debt instruments which meet all of the following criteria:
(a) The objective of the Group’s business model is achieved both by collecting contractual cash flows and selling financial assets; and
(b) The assets’ contractual cash flows represent solely payments of principal and interest.
B. On a regular way purchase or sale basis, financial assets at fair value through other comprehensive income are recognized and derecognized using settlement date accounting.
C. At initial recognition, the Group measures the financial assets at fair value plus transaction costs. The Group subsequently measures the financial assets at fair value:
(a) The changes in fair value of equity investments that were recognized in other comprehensive income are reclassified to retained earnings and are not reclassified to profit or loss following the derecognition of the investment. Dividends are recognized as revenue when the right to receive payment is established, future economic benefits associated with the dividend will flow to the Group and the amount of the dividend can be measured reliably.
(b) Except for the recognition of impairment loss, interest income and gain or loss on foreign exchange which are recognized in profit or loss, the changes in fair value of debt instruments are taken through other comprehensive income. When the financial asset is derecognized, the cumulative gain or loss previously recognized in other comprehensive income is reclassified from equity to profit or loss.

(6) Accounts and notes receivable

A. Accounts and notes receivable entitle the Group a legal right to receive consideration in exchange for transferred goods or rendered services.
B. The short-term accounts and notes receivable without bearing interest are subsequently measured at initial invoice amount as the effect of discounting is immaterial.
(7) 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.
(8) Income tax
A. The interim period income tax expense is recognized based on the estimated average annual effective income tax rate expected for the full financial year applied to the pretax income of the interim period, and the related information is disclosed accordingly.
B. If a change in tax rate is enacted or substantively enacted in an interim period, the Group recognizes the effect of the change immediately in the interim period in which the change occurs. The effect of the change on items recognized outside profit or loss is recognized in other comprehensive income or equity while the effect of the change on items recognized in profit or loss is recognized in profit or loss.

(9) Revenue recognition

A. Sale of goods
(a) The Group operates a chain of retail stores. Revenue from the sale of goods is recognized when the Group sells a product to the customer.
(b) Payment of the transaction price is due immediately when the customer purchases the furniture. It is the Group’s policy to sell its products to the end customer with a right of return. Therefore, a refund liability and a right to the returned goods (included in other current assets) are recognized for the products expected to be returned. Accumulated experience is used to estimate such returns using the expected value method. Because the number of products returned has been steady for years, it is

~21~

highly probable that a significant reversal in the cumulative revenue recognized will not occur. The validity of this assumption and the estimated amount of returns are reassessed at each reporting date.

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

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

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

There were no significant changes during the period. Please refer to Note 5 of the consolidated financial statements for the year ended December 31, 2017.

6. DETAILS OF SIGNIFICANT ACCOUNTS

(1) Cash and cash equivalents

e year ended December 31, 2017. AILS OF SIGNIFICANT ACCOUNTS Cash and cash equivalents
	September 30, 2018	December 31, 2017	September 30, 2017
Cash on hand and petty cash	$ 1,585,137	$ 1,791,733	$ 893,257
Checking accounts and demand deposits	12,118,990
		14,483,269	9,862,679
Cash equivalents
Time deposits	24,997,235	10,178,300	8,913,671
Short-term financial instruments	8,747,121	9,329,989	8,641,957
	$ 47,448,483	$ 35,783,291	$ 28,311,564

A. The Group transacts with a variety of financial institutions, all with high credit quality, to disperse credit risk, so it considers the probability of counterparty default as remote.
B. Information about time deposits provided as security for performance guarantees and reclassified as “Other non-current assets – guarantee deposits paid” is provided in Note 8.

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

nancial assets at fair value through profit or loss
	September 30, 2018
Current items:
Beneficiary certificates	$ 1,059,699
Valuation adjustment	598
	$ 1,060,297

Non-current items:
Unlisted stocks	$ 275,403
Valuation adjustment (	189,720)
	$ 85,683

A. The Group recognized valuation loss of $4,964 and disposal gain of $8,118 in relation to financial assets at fair value through profit or loss for the nine-month period ended September 30, 2018.
B. No financial assets at fair value through profit or loss of the Group were pledged to others.
C. Information relating to credit risk is provided in Note 12(2).
D. Information on December 31, 2017 and September 30, 2017 is provided in Note 12(4).
(3) Accounts receivable

Accounts receivable
	September 30, 2018	December 31, 2017	September 30, 2017
Accounts receivable	$ 5,267,673	$ 5,010,640	$ 4,281,811
Less: Allowance for sales returns and discounts	- ( 93,267 ) ( 71,355 )
Allowance for uncollectible accounts (	41,993 ) (		53,300)
		48,471) (
	$ 5,225,680	$ 4,868,902	$ 4,157,156
A. The ageing analysis of accounts receivable that were past due but not impaired is as follows: September 30, 2018 Not past due $ 5,097,632 Up to 90 days 150,856 91 to 180 days 13,379 181 to 365 days 5,330 Over 365 days 476 $ 5,267,673
			September 30, 2018
			$ 5,097,632
			150,856
			13,379
			5,330
			476
			$ 5,267,673

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

The above aging analysis was based on past due date. Information on December 31, 2017 and September 30, 2017 is provided in Note 12(4).

B. No accounts receivable of the Group were pledged to others.
C. As at September 30, 2018, December 31, 2017 and September 30, 2017, without taking into account any collateral held or other credit enhancements, the maximum exposure to credit risk in respect of the amount that best represents the Group’s accounts receivable were $5,225,680, $4,868,902, and $4,157,156, respectively.
D. Information relating to credit risk is provided in Note 12(2).

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(4) Inventories

Inventories
	September 30, 2018
		Allowance for
	Cost	valuation loss	Book value
Raw materials and work in process	$ 66,676	$ -	$ 66,676
Merchandise and finished goods	12,811,328 (	85,912)	12,725,416
	$ 12,878,004 (	$ 85,912)	$ 12,792,092

	December 31, 2017	December 31, 2017
		Allowance for
	Cost	valuation loss	Book value
Raw materials and work in process	$ 78,013	$ -	$ 78,013
Merchandise and finished goods	13,444,900 (	135,791)	13,309,109
	$ 13,522,913 (	$ 135,791)	$ 13,387,122

	September 30, 2017
		Allowance for
	Cost	valuation loss	Book value
Raw materials and work in process	$ 87,360	$ -	$ 87,360
Merchandise and finished goods	12,083,442 (	130,178)	11,953,264
	$ 12,170,802 (	$ 130,178)	$ 12,040,624

The cost of inventories recognized as expenses for the period:

	For the three-month	For the three-month
	period ended	period ended
	September 30, 2018	September 30, 2017
Cost of goods sold	$ 40,832,068	$ 37,558,680
Gain on reversal of valuation of inventories ( 1,206 ) ( 3,157)
Spoilage	420,157	395,026
Others	68,890	60,085
	$ 41,319,909	$ 38,010,634

	For the nine-month	For the nine-month
	period ended	period ended
	September 30, 2018	September 30, 2017
Cost of goods sold	$ 118,604,022	$ 109,316,329
Gain on reversal of valuation of inventories ( 49,879 ) ( 133,200)
Spoilage	1,290,943	1,216,643
Others	196,991	180,576
	$ 120,042,077	$ 110,580,348

The Group reversed a previous inventory write-down because the Group sold and scrapped certain inventories which were previously provided with allowance for the three-month and nine-month periods ended September 30, 2018 and 2017, respectively.

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

Financial assets at fair value through other comprehensive income-non-current
	September 30, 2018
Debt instruments
Government bonds	$ 199,921
Valuation adjustment	1,203
	201,124
Equity instruments
Listed stocks	265,606
Unlisted stocks	4,348
	269,954
Valuation adjustment	508,647
	778,601
	$ 979,725

A.The Group has elected to classify the listed and unlisted stocks that are considered to be strategic investments and steady dividend income as financial assets at fair value through other comprehensive income. The fair value of such investments amounted to $778,601 as at September 30, 2018.
B. Amounts recognized in profit or loss and other comprehensive income in relation to the financial assets at fair value through other comprehensive income are listed below:

at fair value through other comprehensive income are listed below:
	For the three-month
	period ended
	September 30, 2018
Equity instruments at fair value through other comprehensive income
Fair value change recognized in other comprehensive income		($ 21,612)

Debt instruments at fair value through other comprehensive income
Fair value change recognized in other comprehensive income		($ 210)
Interest income recognized in profit or loss		$ 590

		For the nine-month
		period ended
	September 30, 2018
Equity instruments at fair value through other comprehensive income
Fair value change recognized in other comprehensive income		($ 9,862)

Debt instruments at fair value through other comprehensive income
Fair value change recognized in other comprehensive income		($ 1,117)
Interest income recognized in profit or loss		$ 1,769

C. As at September 30, 2018, without taking into account any collateral held or other credit enhancements, the maximum exposure to credit risk in respect of the amount that best represents the financial assets at fair value through other comprehensive income held by the Group was $979,725.

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D. No financial assets at fair value through other comprehensive income of the Group were pledged to others.
E. Information relating to credit risk is provided in Note 12(2).
F. Information on December 31, 2017 and September 30, 2017 is provided in Note 12(4).
(6) Investments accounted for using the equity method

nvestments accounted for using the equity	method
	September 30, 2018	December 31, 2017	September 30, 2017
Associates
PresiCarre Corp.	$ 5,459,859	$ 5,198,249	$ 5,155,678
President Fair Development Corp.	1,971,517	1,954,089	1,904,696
Uni-President Development Corp.	741,352	750,774	738,763
President International Development
Corp.	463,287	466,885	465,699
Tung Ho Development Corp.	117,847	123,504	126,013
Uni-President Organics Corp., etc.	55,194	64,989	58,928
	8,809,056	8,558,490	8,449,777
Joint ventures
Uni-Wonder Corp.	$ -	$ -	$ 419,730
Mister Dount Taiwan Corp., Ltd.	89,784	97,232	95,553
	89,784	97,232	515,283
	$ 8,898,840	$ 8,655,722	$ 8,965,060

A. The Group’s investments accounted for using the equity method are based on the unreviewed financial statements of investees.
B. The investments in associates or joint ventures are not significant to the Group. The details of the Group’s share of the operating results in the aforementioned investments are as follows:
(a) The Group’s share of the operating results in all individually immaterial associates is summarized below:

below:
	For the three-month	For the three-month
	period ended	period ended
	September 30, 2018	September 30, 2017
Total comprehensive income	$ 111,045	$ 114,373

	For the nine-month	For the nine-month
	period ended	period ended
	September 30, 2018	September 30, 2017
Total comprehensive income	$ 315,339	$ 259,622

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(b) The Group’s share of the operating results in all individually immaterial joint ventures is summarized below:

below:
	For the three-month	For the three-month
	period ended	period ended
	September 30, 2018	September 30, 2017
Total comprehensive income	$ 301	$ 446,272

	For the nine-month	For the nine-month
	period ended	period ended
	September 30, 2018	September 30, 2018
Total comprehensive income	$ 5,377	$ 1,324,249

C. In December 2017, the Group disposed 30% shares of its joint venture – President Coffee (Cayman) Holdings Ltd. for a cash consideration of $25,642,728 to Starbucks EMEA Holdings Ltd. (shown as ‘other receivables’ as at December 31, 2017), which was collected in February, 2018.
－
D. The Group originally held 30% shares of its joint venture using the equity method Uni-Wonder Corp. (formerly known as “President Starbucks Coffee Corp.”). In December 2017, the Group acquired an additional 30% shares of Uni-Wonder Corp. for a cash consideration of $3,226,806, (shown as ‘other payables’ as at December 31, 2017) and obtained control over Uni-Wonder Corp. Relevant cash consideration was fully paid in February, 2018.
E. In August 2018, the Group disposed 0.02% shares of its investments accounted for using equity method – Grand Bills Finance Corp. to Kai Yu Investment Co., Ltd.. Information about disposal proceeds and disposal gain or loss are provided in Note 7(3) e.

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(7) Property, plant and equipment

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

Land	Buildings	Transportation equipment	Office equipment	Leasehold improvements	Others	Total
$ 2,273,584	$ 4,296,089	$ 6,343,845	$ 20,180,016	$ 17,259,683	$ 9,456,005	$ 59,809,222

16,366) (	1,800,537 ) (	4,046,383 ) (	13,384,193) (	10,568,380 ) (	5,011,021) (	34,826,880 )
$ 2,257,218	$ 2,495,552	$ 2,297,462	$ 6,795,823	$ 6,691,303	$ 4,444,984	$ 24,982,342


$ 2,257,218	$ 2,495,552	$ 2,297,462	$ 6,795,823	$ 6,691,303	$ 4,444,984	$ 24,982,342
-	13,909	239,501	1,379,191	1,427,439	1,579,341	4,639,381
- (	38 ) (	14,804 ) (	22,133 ) (	16,111 ) (	6,487) (	59,573)
-	5,742	111,428	149,579	16,394 (	279,438)	3,705
- (	140,694 ) (	419,216 ) (	1,711,202 ) (	1,287,079 ) (	917,186) (	4,475,377)
1,245) (	5,858 ) (	5,459 ) (	17,324) (	70,569 ) (	126,441) (	226,896)
$ 2,255,973	$ 2,368,613	$ 2,208,912	$ 6,573,934	$ 6,761,377	$ 4,694,773	$ 24,863,582
$ 2,272,339	$ 4,297,135	$ 6,468,910	$ 20,786,304	$ 17,904,068	$ 9,689,631	$ 61,418,387

16,366) (	1,928,522 ) (	4,259,998 ) (	14,212,370) (	11,142,691 ) (	4,994,858) (	36,554,805)
$ 2,255,973	$ 2,368,613	$ 2,208,912	$ 6,573,934	$ 6,761,377	$ 4,694,773	$ 24,863,582

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Land		Transportation equipment	Office equipment	Leasehold improvements	Others	Total
$ 2,246,915	$ 4,049,783	$ 5,833,407	$ 18,856,770	$ 12,857,463	$ 8,330,108	$ 52,174,446
						29,845,155)
16,520 ) (	1,622,614 ) (	3,721,333 ) (	12,428,793) (	7,790,593 ) (	4,265,302) (
$ 2,230,395	$ 2,427,169	$ 2,112,074	$ 6,427,977	$ 5,066,870	$ 4,064,806	$ 22,329,291
						$ 22,329,291
$ 2,230,395	$ 2,427,169	$ 2,112,074	$ 6,427,977	$ 5,066,870	$ 4,064,806
-	116,025	534,868	1,457,658	1,185,636	1,539,312	4,833,499
- (	1,698 ) (	18,174 ) (	62,645 ) (	58,499 ) (	2,459) (	143,475)
28,822	56,820	86,688	74,327	116,088 (	464,545) (	101,800)
- (	135,756 ) (	429,393 ) (	1,588,794 ) (	902,515 ) (	788,863) (	3,845,321)
2,201 ) (	1,852 ) (	3,647 ) (	3,541) (	101,000 ) (	210,179) (	322,420)
$ 2,257,016	$ 2,460,708	$ 2,282,416	$ 6,304,982	$ 5,306,580	$ 4,138,072	$ 22,749,774
$ 2,273,536	$ 4,203,680	$ 6,247,829	$ 19,206,154	$ 13,387,184	$ 8,809,499	$ 54,127,882
						31,378,108 )
16,520 ) (	1,742,972 ) (	3,965,413 ) (	12,901,172) (	8,080,604 ) (	4,671,427) (
$ 2,257,016	$ 2,460,708	$ 2,282,416	$ 6,304,982	$ 5,306,580	$ 4,138,072	$ 22,749,774

B. Information on reversal of impairment loss on property, plant and equipment is provided in Note 6(11).

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

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(8) Investment property

2018 January 1, 2018 Depreciation charge September 30, 2018 2017 January 1, 2017 Additions Reclassifications Depreciation charge September 30, 2017	Land $ 1,059,538 - ( $ 1,059,538 Land $ 902,270 132,700 28,047 - ( $ 1,063,017	Buildings $ 459,577 12,717) ( $ 446,860 Buildings $ 456,919 15,619 3,303 12,681) ( $ 463,160	Total $ 1,519,115 12,717) $ 1,506,398 Total $ 1,359,189 148,319 31,350 12,681) $ 1,526,177

The fair value of the investment property held by the Group ranged from $3,608,300 to $4,186,928 over the period from September 30, 2017 to September 30, 2018, which was assessed based on recent settlement prices of similar and comparable properties, as well as the reports of independent appraisers, which is categorized within Level 3 in the fair value hierarchy.

(9) Intangible assets

ntangible assets
At January 1, 2018 Cost Accumulated amortization and impairment ( 2018 Opening net book amount as of January 1 Additions Reclassifications ( Amortization expenses ( Net exchange differences Closing net book amount as of September 30 At September 30, 2018 Cost Accumulated amortization and impairment (	Software	Goodwill	License agreement and customer list		Others	Total
	$ 1,568,017	$ 2,202,519	$ 7,524,890		$ 405,998	$ 11,701,424

	975,791 )	-	-	(	68,920 ) (	1,044,711)
	$ 592,226	$ 2,202,519	$ 7,524,890		$ 337,078	$ 10,656,713

	$ 592,226	$ 2,202,519	$ 7,524,890		$ 337,078	$ 10,656,713
	101,546	-	-		22,606	124,152
	303 )	-	-	(	686 ) (	989 )
	184,705 )	- (	145,620 )	(	22,712 ) (	353,037 )
	920	1,414	-		54	2,388
	$ 509,684	$ 2,203,933	$ 7,379,270		$ 336,340	$ 10,429,227
	$ 1,588,354	$ 2,203,933	$ 7,524,890		$ 422,480	$ 11,739,657

	1,078,670 )	- (	145,620)	(	86,140 ) (	1,310,430)
	$ 509,684	$ 2,203,933	$ 7,379,270		$ 336,340	$ 10,429,227

~30~

Software	Goodwill	License agreement and customer list	Others	Total
$ 1,368,689	$ 378,673	$ -	$ 160,300	$ 1,907,662
				831,486)
774,768 )	-	- (	56,718) (
$ 593,921	$ 378,673	$ -	$ 103,582	$ 1,076,176
				$ 1,076,176
$ 593,921	$ 378,673	$ -	$ 103,582
128,982	-	-	179,666	308,648
29 )	-	-	- (	29 )
-	-	-	4,301	4,301
161,783 )	-	- (	21.058 ) (	182,841 )
1,202 ) (	1,795 )	- (	936 ) (	3,933)
$ 559,889	$ 376,878	$ -	$ 265,555	$ 1,202,322
$ 1,490,901	$ 376,878	$ -	$ 349,150	$ 2,216,929
				1,014,607)
931,012 )	-	- (	83,595 ) (
$ 559,889	$ 376,878	$ -	$ 265,555	$ 1,202,322

Amortization expenses on intangible assets are recognized as operating expenses.

(10) Other non-current assets

Other non-current assets
	September 30, 2018	December 31, 2017	September 30, 2017
Guarantee deposits paid	$ 2,698,348	$ 2,656,420	$ 2,417,423
Others	479,620	521,049	568,567
	$ 3,177,968	$ 3,177,469	$ 2,985,990

(11) Impairment of non-financial assets

A. No impairment loss was recognized for the nine-month periods ended September 30, 2018 and 2017 .
B. Goodwill is allocated to the Group’s cash-generating units based on operating segments. The recoverable amount of all cash-generating units has been determined based on value-in-use calculations, which use pre-tax cash flow projections based on five-year financial budgets approved by the management. The Group performs impairment testing annually.

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(12) Short-term borrowings

Type of borrowings Bank borrowings Credit loan Type of borrowings Bank borrowings Credit loan Type of borrowings Bank borrowings Credit loan	September 30, 2018 $ 7,111,486 December 31, 2017 $ 965,180 September 30, 2017 $ 1,350,915	Interest rate range 0.67%~4.75% Interest rate range 0.94%~4.35% Interest rate range 0.95%~4.35%	Collateral
			None Collateral
			None Collateral
			None

There was no capitalization of borrowing costs for the nine-month periods ended September 30, 2018 and 2017. Relevant interest expense on borrowings is recognized as “finance costs”.

(13) Other payables

Store collections Wages, salaries and bonus payable Sales receipt on behalf of others Incentive bonus payable to franchisees Rent payable Employees’ compensation and remuneration for directors and supervisors Payables for acquisition of property, plant and equipment Payables for labor and health insurance Payables for equity investments (See Note 6(6)D) Others	September 30, 2018 $ 12,853,999 4,982,193 883,571 951,915 831,416 685,271 374,747 240,450 - 4,323,289 $ 26,126,851	December 31, 2017 $ 11,947,975 4,399,047 1,134,831 930,996 803,066 1,612,325 1,071,524 240,769 3,226,806 5,612,912 $ 30,980,251	September 30, 2017
			$ 9,033,295 4,579,889 1,085,794 843,294 695,259 664,035 541,255 229,558 - 4,438,389 $ 22,110,768

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(14) Other current liabilities

Advance receipts of deposits in icash cards Current portion of long-term liabilities Advance receipts of members’ deposits Advance receipts for gift certificates Advance receipts for gift cards Advance receipts for franchise fee Others	September 30, 2018 $ 1,166,675 298,772 - - - - 301,668 $ 1,767,115	December 31, 2017 $ 1,064,779 273,754 1,059,753 1,240,616 737,431 231,312 745,006 $ 5,352,651	September 30, 2017 $ 1,020,589 190,210 413,064 1,213,754 784,802 232,506 789,956 $ 4,644,881

Advance receipts of members’ deposits, gift certificates, gift cards, and franchise fee are recognized as contract liabilities in accordance with IFRS 15 from January 1, 2018. Please refer to Notes 3(1) C and 6(22). - (15) Long term borrowings

Type of borrowings Long-term bank borrowings Credit loan Secured borrowings Less: Current portion Type of borrowings Long-term bank borrowings Credit loan Secured borrowings Less: Current portion Type of borrowings Long-term bank borrowings Credit loan Secured borrowings Less: Current portion	Interest rate range 0.84%~4.44% 1.79%~1.96% Interest rate range 0.85%~3.643% 1.77%~1.98% Interest rate range 0.88%~3.19% 1.77%~2.16%	Collateral None Property, plant and equipment Collateral None Property, plant and equipment ( Collateral None Property, plant and equipment (	September 30, 2018 $ 874,987 428,765 1,303,752 ( 298,772) $ 1,004,980 December 31, 2017 $ 1,018,506 360,699 1,379,205 273,754) $ 1,105,451 September 30, 2017 $ 841,225 318,297 1,159,522 190,210) $ 969,312

There was no capitalization of borrowing costs for the nine-month periods ended September 30, 2018 and 2017. Relevant interest expense on borrowings is recognized as “finance costs”.

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(16) Pensions

A. The Company and its domestic subsidiaries operate a defined benefit pension plan, in accordance with the Labor Standards Law, which covers all regular employees’ service years prior to the enforcement of the Labor Pension Act on July 1, 2005 and service years thereafter of employees who chose to continue to be subject to the pension mechanism under the Labor Standards Law. Under the defined benefit pension plan, two units are accrued for each year of service for the first 15 years and one unit for each additional year thereafter, subject to a maximum of 45 units. Pension benefits are based on the number of units accrued and the average monthly salaries and wages of the last six months prior to retirement. The Company and its domestic subsidiaries contributes monthly an amount equal to 2%-8% of employees’ monthly salaries and wages to a retirement fund at the Bank of Taiwan, the trustee, under the name of the independent retirement fund committee. Also, the Company and its domestic subsidiaries would assess the balance in the aforementioned labor pension reserve account by December 31, every year. If the account balance is not enough to pay the pension calculated by the aforementioned method to the employees expected to qualify for retirement in the following year, the Company and its domestic subsidiaries will make contribution for the deficit by next March. Furthermore, the subsidiary, Philippine Seven Corporation, operates an employer matching pension plan, under which the employer contributes the same amount as employees to the employee’s individual pension accounts.
For the aforementioned pension plan, the Group recognized pension costs of $42,262, $39,341, $120,369, and $116,621 for the three-month and nine-month periods ended September 30, 2018 and 2017, respectively.
B. Effective July 1, 2005, the Company and its domestic subsidiaries have established a defined contribution pension plan (the “New Plan”) under the Labor Pension Act (the “Act”), covering all regular employees with R.O.C. nationality. Under the New Plan, the Company and its domestic subsidiaries contribute monthly an amount based on 6% of the employees’ monthly salaries and wages to the employees’ individual pension accounts at the Bureau of Labor Insurance. The benefits accrued are paid monthly or in lump sum upon termination of employment.
(a) The Company’s mainland China subsidiaries have a defined contribution plan. Monthly contributions to an independent fund administered by the government in accordance with the pension regulations in the People’s Republic of China (PRC) are based on certain percentage of employees’ monthly salaries and wages. The contribution percentage for the nine-month periods ended September 30, 2018 and 2017 was 14%~20% and 14%~24%, respectively. Other than the monthly contributions, the Group has no further obligations.
(b) The pension costs under the defined contribution pension plans of the Group for the three-month and nine-month periods ended September 30, 2018 and 2017 were $231,124, $210,312, $691,341 and $614,208, respectively.

(17) Other non-current liabilities

Guarantee deposit received Decommissioning liability Deferred income Others	September 30, 2018 $ 3,385,268 412,680 16,338 335,310 $ 4,149,596	December 31, 2017 $ 3,355,171 392,807 365,868 307,885 $ 4,421,731	September 30, 2017
			$ 3,350,156 389,554 313,044 225,010 $ 4,277,764

(18) Share capital

As of September 30, 2018, 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 1,039,622,255 as of September 30, 2018 and January 1, 2018.

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(19) Capital surplus

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

(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 a legal reserve. The Company may then set aside or reserve a certain amount as special reverse according to the relevant regulations. The appropriation of the remaining earnings and prior years’ unappropriated retained earnings should be proposed by the Board of Directors and voted on by the shareholders at the shareholders’ meeting. The dividends and bonus to be distributed to shareholders may be 50%-100% of the total distributable amount, and 50%-100% of dividends are to be distributed as cash dividends, and the remaining undistributed amount to be set aside as unappropriated retained earnings.
B. Except for covering accumulated deficit or issuing new stocks or cash to shareholders in proportion to their share ownership, the legal reserve shall not be used for any other purpose. The use of the legal reserve for the issuance of stocks or cash to shareholders in proportion to their share ownership is permitted, provided that the distribution of the reserve is limited to the portion in excess of 25% of the Company’s paid-in capital.
C. In accordance with the regulations, the Company shall set aside a special reserve for the debit balance on other equity items at the balance sheet date before distributing earnings. When the debit balance on other equity items is reversed subsequently, the reversed amount should be included in the distributable earnings.
D. The appropriations for 2017 and 2016 were resolved by the shareholders on June 12, 2018 and June 13, 2017, respectively, as follows:

017, respectively, as follows:
Legal reserve Special reserve Cash dividends - retained earnings	2017 Dividends per share Amount (in dollars) $ 3,101,709 398,859 25,990,556 $ 25.00
	Amount $ 3,101,709 398,859 25,990,556	Amount $ 983,669 - 8,316,978
			$ 8.00

E. See Note 6(24) for information on employees’ compensation and directors’ and supervisors’ remuneration.

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(21) Other equity items

For the nine-month period ended September 30, 2018

	For the nine-monthperiod ended September 30, 2018
At January 1, 2018 Adjustments under new standards Adjusted beginning balance Revaluation: –Group –Associates Revaluation-tax Currency translation differences: –Group –Associates At September 30, 2018 At January 1, 2017 Revaluation: –Group –Associates Revaluation-tax Currency translation differences: –Group –Associates At September 30, 2017	Exchange differences from translation of foreign operations Unrealized gains/(losses) on valuation of financial assets at fair value through other comprehensive income Unrealized gains/(losses) on available- for-sale financial assets Total ($ 906,308) $ - $ 507,449 ($ 398,859) - 477,996 ( 507,449) ( 29,453) ( 906,308) 477,996 - ( 428,312) - ( 10,979 ) - ( 10,979) - ( 1,615 ) - ( 1,615) - ( 963 ) - ( 963) 412,160 - - 412,160 5,062 - - ( 5,062) ($ 489,086) $ 464,439 $ - ($ 24,647) For the nine-monthperiod ended September 30, 2017 Exchange differences from translation of foreign operations Unrealized gains/(losses) on available-for-sale financial assets Equity directly related to non- current assets held for sale Total ($ 186,228) $ 357,817 $ -($ 171,589) - 167,897 - 167,897 - ( 3,253 - 3,253 - ( 9,730) - ( 9,730) ( 151,670) - ( 88,031) ( 239,701) ( 13,534) - - ( 13,534) ($ 351,432) $ 519,237 ($ 88,031) $ 79,774
	Exchange differences from translation of foreign operations Unrealized gains/(losses) on available-for-sale financial assets ($ 186,228) $ 357,817 - 167,897 - ( 3,253 - ( 9,730) ( 151,670) - ( 13,534) - ($ 351,432) $ 519,237

For the nine-monthperiod ended September 30, 2018

At January 1, 2018
Adjustments under new
standards
Adjusted beginning balance
Revaluation:
–Group
–Associates
Revaluation-tax
Currency translation
differences:
–Group
–Associates
At September 30, 2018
At January 1, 2017
Revaluation:
–Group
–Associates
Revaluation-tax
Currency translation
differences:
–Group
–Associates
At September 30, 2017

Exchange
differences
from
translation of
foreign
operations
Unrealized
gains/(losses)
on valuation of
financial assets
at fair value
through other
comprehensive
income

Unrealized
gains/(losses)
on available-
for-sale
financial
assets
Total
($ 906,308)
$ - $ 507,449 ($ 398,859)
-

477,996
(
507,449)
(
29,453)
(
906,308)
477,996
- ( 428,312)
-
(
10,979 )
- (
10,979)
-
(
1,615 )
-
(
1,615)
-
(
963 )
- (
963)
412,160
-
-
412,160
5,062
-

-
(
5,062)
($ 489,086)
$ 464,439
$ -
($ 24,647)
For the nine-monthperiod ended September 30, 2017
Exchange
differences
from
translation of
foreign
operations
Unrealized
gains/(losses) on
available-for-sale
financial assets
Equity directly
related to non-
current assets
held for sale
Total
($ 186,228)
$ 357,817 $ -($ 171,589)
-
167,897
-
167,897
-
(
3,253
-
3,253
-
(
9,730)
- (
9,730)
(
151,670)
- (
88,031) ( 239,701)
(
13,534)
-

-
(
13,534)
($ 351,432)
$ 519,237
($ 88,031)
$ 79,774

Exchange
differences
from
translation of
foreign
operations
Unrealized
gains/(losses) on
available-for-sale
financial assets
($ 186,228)
$ 357,817
-
167,897
-
(
3,253
-
(
9,730)
(
151,670)
-
(
13,534)
-

($ 351,432)
$ 519,237

~36~

(22) Operating revenue

Revenue from contracts with customers	For the three-month period ended September 30, 2018 $ 63,003,871	For the nine-month period ended September 30, 2018 $ 183,181,122

A. Disaggregation of revenue from contracts with customers

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

For the three-month period ended September 30, 2018	Convenience stores $ 40,026,462 ( 156,911) 39,869,551 $ 39,733,764 135,787 $ 39,869,551 Convenience stores $ 116,082,016 ( 472,021) 115,609,995 $ 115,216,740 393,255 $ 115,609,995	Retail business group $ 17,931,643 ( 559,846) 17,371,797 $ 14,514,588 2,857,209 $ 17,371,797 Retail business group $ 52,807,216 ( 1,702,175) 51,105,041 $ 42,667,809 8,437,232 $ 51,105,041	Logistics business group $ 3,893,815 ( 3,332,305) 561,510 $ 501,813 59,697 $ 561,510 Logistics business group $ 11,397,460 ( 9,877,959) 1,519,501 $ 1,345,547 173,954 $ 1,519,501	Others $ 6,888,547 ( 1,687,534) 5,201,013 $ 5,158,358 42,655 $ 5,201,013 Others $ 19,893,535 ( 4,946,950) 14,946,585 $ 14,486,952 459,633 $ 14,946,585	Total
Total segment revenue Inter-segment revenue Revenue from external customer contracts Timing of revenue recognition –At a point in time –Over time For the nine-month period ended September 30, 2018 Total segment revenue Inter-segment revenue Revenue from external customer contracts Timing of revenue recognition –At a point in time –Over time					$ 68,740,467 ( 5,736,596)
					63,003,871
					$ 59,908,523 3,095,348
					$ 63,003,871
					Total
					$ 200,180,227 ( 16,999,105)
					183,181,122
					$ 173,717,048 9,464,074
					$ 183,181,122

B. Contract liabilities

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

Contract liabilities – advance receipts of gift certificates and gift cards Contract liabilities – members’ deposits Contract liabilities – franchise fee Contract liabilities – customer loyalty programs Contract liabilities – others	September 30, 2018
	$ 2,293,903 1,389,884 225,511 307,670 271,383 $ 4,488,351

~37~

Contract liabilities- current Contract liabilities- non-current	September 30, 2018
	$ 4,180,681 307,670 $ 4,488,351

  - (b) Revenues recognized that were included in the contract liabilities balance at the beginning was $1,211,462 for the nine-month period ended September 30, 2018.

C. Related disclosures on operating revenue for the three-month and nine-month periods ended September 30, 2017 are provided in Note 12(5) B.
(23) Expenses by nature

Cost of goods sold Employee benefit expense Incentive bonuses for franchisees Operating lease payments Depreciation and amortization Utilities expense Other costs and expenses Total operating costs and operating expenses Cost of goods sold Employee benefit expense Incentive bonuses for franchisees Operating lease payments Depreciation and amortization Utilities expense Other costs and expenses Total operating costs and operating expenses	For the three-month period ended September 30, 2018 $ 36,999,432 6,333,106 5,453,500 3,097,938 1,659,007 1,207,632 4,898,976 $ 59,649,591 For the nine-month period ended September 30, 2018 $ 107,255,010 19,046,933 15,780,408 9,127,248 4,909,663 3,121,900 14,004,328 $ 173,245,490	For the three-month period ended September 30, 2017
		$ 33,549,049 5,872,275 5,303,096 2,654,295 1,399,641 1,064,208 4,407,042 $ 54,249,606 For the nine-month period ended September 30, 2017
		$ 97,870,679 16,947,054 14,703,950 7,864,829 4,111,143 2,842,537 12,439,349 $ 156,779,541

~38~

(24) Employee benefit expense

Wages and salaries Labor and health insurance fees Pension costs Other personnel expenses Wages and salaries Labor and health insurance fees Pension costs Other personnel expenses	For the three-month period ended September 30, 2018 $ 5,206,845 476,902 273,386 375,973 $ 6,333,106 For the nine-month period ended September 30, 2018 $ 15,705,118 1,466,361 811,710 1,063,744 $ 19,046,933	For the three-month period ended September 30, 2017 $ 4,857,396 419,863 249,653 345,363 $ 5,872,275 For the nine-month period ended September 30, 2017 $ 13,965,626 1,279,693 730,829 970,906 $ 16,947,054

A. According to the Articles of Incorporation of the Company, a ratio of distributable profit of the current year, after covering accumulated losses, shall be distributed as employees’ compensation and directors’ and supervisors’ remuneration. The ratio shall not be lower than 2% for employees’ compensation and shall not be higher than 2% for directors’ and supervisors’ remuneration.
B. For the three-month periods ended September 30, 2018 and 2017 and nine-month periods ended September 30, 2018 and 2017, employees’ compensation was accrued at $152,451 and $156,787, $453,116 and $447,662 respectively; while directors’ and supervisors’ remuneration was accrued at $50,933, $52,382, $151,384 and $149,562, respectively.

The employees’ compensation and directors’ and supervisors’ remuneration were estimated and accrued based on 4.37% and 1.46% of distributable profit of the current period for the nine-month period ended September 30, 2018, respectively.

Employees’ compensation and directors’ and supervisors’ remuneration for 2017 as resolved by the Board of Directors were in agreement with those amounts recognized in the 2017 financial statements.

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

~39~

(25) Other income

Other income
		For the three-month			For the three-month
		period ended			period ended
		September 30, 2018			September 30, 2017
Grants income	$	158,607			$	150,538
Interest income		167,144				36,458
Rental revenue		32,884				41,285
Dividend income		1,961				-
Others		158,606				203,491
	$	519,202			$	431,772
		For the nine-month			For the nine-month
		period ended			period ended
		September 30, 2018			September 30, 2017
Grants income	$	464,183			$	439,403
Interest income		502,011				118,601
Rental revenue		100,942				124,709
Dividend income		62,629				15,674
Others		590,112				496,591
	$	1,719,877			$	1,194,978
Other gains and losses
		For the three-month			For the three-month
		period ended			period ended
		September 30, 2018			September 30, 2017
Gain on disposal of investments	$	5,026			$	1,463
Gain (loss) on disposal of property, plant and		3,502		(		17,391 )
equipment
Other gains and losses	(	38,190	)	(		83,492)
	($	29,662	)	($		99,420)
		For the nine-month			For the nine-month
		period ended			period ended
		September 30, 2018			September 30, 2017
Gain on disposal of investments	$	8,177			$	3,113
Loss on disposal of property, plant and equipment	(	6,537	)	(		30,343 )
Other gains and losses	(	23,959	)	(		126,084)
	($	22,319	)	($		153,314)

(26) Other gains and losses

~40~

(27) Finance costs

Interest expense

Interest expense

Income tax
A. Income tax expense
(a)Components of income tax expense:

Current tax:
Current tax on profits for the period
Tax on undistributed surplus earnings
Over provision of prior year’s income tax

Total current tax
Deferred tax:
Origination and reversal of temporary differences
Impact of change in tax rate
Total deferred tax
Income tax expense

Current tax:
Current tax on profits for the period
Tax on undistributed surplus earnings
Over provision of prior year’s income tax

Total current tax
Deferred tax:
Origination and reversal of temporary differences
Impact of change in tax rate
Total deferred tax
Income tax expense

For the three-month
period ended
September 30, 2018
For the three-month
period ended
September 30, 2017
$ 26,773
$ 23,032
For the nine-month
period ended
September 30, 2018
For the nine-month
period ended
September 30, 2017
$ 105,631
$ 72,565
For the three-month
period ended
September 30, 2018
For the three-month
period ended
September 30, 2017
$ 794,850
$ 509,619
-
7
(
2,369)
(
119)
792,481
509,507
13,089 ( 2,857)
-
-
13,089
( 2,857)
$ 805,570
$ 506,650
For the nine-month
period ended
September 30, 2018
For the nine-month
period ended
September 30, 2017
$ 2,195,664
$ 1,686,734
135,163
11,626
(
2,369)
(
1,662)
2,328,458
1,696,698
(
115,809 ) (
10,999)
640,304
-
524,495
(
10,999)
$ 2,852,953
$ 1,685,699

(28) Income tax

A. Income tax expense

~41~

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

For the three-month
period ended
September 30, 2018
Fair value gains/losses on available-for-sale
financial assets
$ -
Changes in fair value of financial assets at fair
value through other comprehensive income
(
833)
Impact of change in tax rate
-
($ 833)

For the nine-month
period ended
September 30, 2018
Fair value gains/losses on available-for-sale
financial assets
$ -
Changes in fair value of financial assets at fair
value through other comprehensive income
(
2,355)
Impact of change in tax rate
(
46,977)
($ 49,332)

For the three-month
period ended
September 30, 2017
$ 3,488
-
-

$ 3,488
For the nine-month
period ended
September 30, 2017
$ 9,730
-
-

$ 9,730

B. The Company’s income tax returns through tax year 2015 have been assessed and approved by the Tax Authority.
C. Under the amendments to the Income Tax Act which was promulgated by the President of the Republic of China on February 7, 2018, the Company’s applicable income tax rate was raised from 17% to 20% effective from January 1, 2018. The Group has assessed the impact of the change in income tax rate.
(29) Earnings per share

For the three-month period ended September 30, 2018	For the three-month period ended September 30, 2018	For the three-month period ended September 30, 2018
Amount after tax $ 2,774,097 $ 2,774,097 - $ 2,774,097	Weighted average number of ordinary shares outstanding (shares in thousands) 1,039,622 1,039,622 425 1,040,047	Earnings per share (in dollars)
		$ 2.67
		$ 2.67

~42~

For the three-month period ended September 30, 2017

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

Amount after tax $ 3,086,433 $ 3,086,433 - $ 3,086,433	Weighted average number of ordinary shares outstanding (shares in thousands) 1,039,622 1,039,622 616 1,040,238	Earnings per share (in dollars) $ 2.97 $ 2.97

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	For the nine-month period ended September 30, 2018 Amount Weighted average number of ordinary shares outstanding Earnings per share after tax (shares in thousands) (in dollars) $ 7,944,089 1,039,622 $ 7.64 $ 7,944,089 1,039,622 - 2,040 $ 7,944,089 1,041,662 $ 7.63 For the nine-month period ended September 30, 2017 Amount Weighted average number of ordinary shares outstanding Earnings per share after tax (shares in thousands) (in dollars) $ 8,618,381 1,039,622 $ 8.29 $ 8,618,381 1,039,622 - 2,265 $ 8,618,381 1,041,887 $ 8.27	For the nine-month period ended September 30, 2018 Amount Weighted average number of ordinary shares outstanding Earnings per share after tax (shares in thousands) (in dollars) $ 7,944,089 1,039,622 $ 7.64 $ 7,944,089 1,039,622 - 2,040 $ 7,944,089 1,041,662 $ 7.63 For the nine-month period ended September 30, 2017 Amount Weighted average number of ordinary shares outstanding Earnings per share after tax (shares in thousands) (in dollars) $ 8,618,381 1,039,622 $ 8.29 $ 8,618,381 1,039,622 - 2,265 $ 8,618,381 1,041,887 $ 8.27
	Amount after tax $ 8,618,381 $ 8,618,381 - $ 8,618,381	Weighted average number of ordinary shares outstanding (shares in thousands) 1,039,622 1,039,622 2,265 1,041,887

~43~

(30) Operating leases

Lessor

A. The Group leases its investment property and shopping centres to others under operating lease agreements on terms between 2 and 12 years. The future aggregate minimum lease payments receivable under non-cancellable operating leases are as follows:

Less than one year Over one year but less than five years Over five years	September 30, 2018 $ 93,273 248,312 25,933 $ 367,518	December 31, 2017 $ 94,376 292,261 51,674 $ 438,311	September 30, 2017
			$ 92,612 293,773 44,227 $ 430,612

Lessee

A. The Group leases business premises for its stores. The lease terms are between 1 and 20 years, and certain lease agreements are renewable at the end of the lease period. Rents are paid in accordance with the agreements. Some leases incur additional rent expenses based on the operating revenue of stores or changes in local price indices. Rental expenses recognized in profit and loss for the three-month and nine-month periods ended September 30, 2018 and 2017 are as follows:

	For the three-month	For the three-month
	period ended	period ended
	September 30, 2018	September 30, 2017
Rental expenses	$ 3,017,356	$ 2,525,588
Contingent rents	$ 80,582	$ 128,707
	For the nine-month	For the nine-month
	period ended	period ended
	September 30, 2018	September 30, 2017
Rental expenses	$ 8,840,610	$ 7,578,184
Contingent rents	$ 286,638	$ 286,645
The future aggregate minimum lease payments under non-cancellable operating		leases are as follows:

Less than one year Over one year but less than five years Over five years	September 30, 2018 $ 10,036,360 34,992,504 13,208,573 $ 58,237,437	December 31, 2017 $ 9,765,924 30,324,865 15,732,948 $ 55,823,737	September 30, 2017
			$ 8,775,133 28,569,702 14,679,303 $ 52,024,138

B. The Group has sub-leased certain business premises to others. Sublease revenues recognized in profit and loss for the three-month and nine-month periods ended September 30, 2018 and 2017 are as follows:

Sublease revenues Contingent rents	For the three-month period ended September 30, 2018 $ 91,966 $ 284,559	For the three-month period ended September 30, 2017 $ 100,809
		$ 270,988

~44~

Sublease revenues Contingent rents	For the nine-month period ended September 30, 2018 $ 209,120 $ 855,611	For the nine-month period ended September 30, 2017 $ 203,304 $ 849,020

In accordance with non-cancellable sub-lease agreements as of September 30, 2018, sub-lease payments totalling $390,854 are expected to be collected between 2018 and 2028.

(31) Supplemental cash flow information

Investing activities with partial cash payments

Purchase of property, plant and equipment Add: Opening balance of payable on equipment Less: Ending balance of payable on equipment ( Cash paid during the period	For the nine-month period ended September 30, 2018 $ 4,639,381 1,071,524 374,747) ( $ 5,336,158	For the nine-month period ended September 30, 2017 $ 4,833,499 883,723 541,255) $ 5,175,967

(32)Changes in liabilities from financing activities

January 1, 2018 Changes in cash flow from financing activities Impact of changes in foreign exchange rate Changes in other non-cash items September 30, 2018	Short-term borrowings $ 965,180 6,146,306 ( - ( - ( $ 7,111,486	Long-term borrowings $ 1,105,451 43,052) ( 32,401) 25,018) $ 1,004,980	Short-term notes and bills payable $ 250,000 40,000) - - $ 210,000	Other non- current liabilities- guarantee deposits received $ 3,355,172 30,096 - - ( $ 3,385,268	Other non- current liabilities- other $ 1,066,559 43,780 - ( 346,011) ( $ 764,328	Liabilities from financing activities- gross $ 6,742,362 6,137,130 32,401) 371,029) $ 12,476,062

~45~

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 September 30, 2018.

(2) Names of related parties and relationship

Names of related parties Relationship with the Group Uni-President Enterprises Corp. Ultimate parent company Uni-President Organics Corp. Investees of the Group accounted for using the equity method Mister Donut Taiwan Co., Ltd. 〃 Hefei President Enterprises Co., Ltd. Subsidiaries of ultimate parent company Uni-President (Kunshan) Trading Co., Ltd. 〃 Presco Netmarketing Inc. 〃 Tung Ang Enterprises Corp. 〃 President Packaging Corp. 〃 President Tokyo Crorp. 〃 Tait Marketing & Distribution Co., Ltd. 〃 Lien-Bo Enterprises Corp. 〃 Shanghai Songjiang President Enterprises Co., 〃

Mister Donut Taiwan Co., Ltd. Hefei President Enterprises Co., Ltd. Uni-President (Kunshan) Trading Co., Ltd. Presco Netmarketing Inc. Tung Ang Enterprises Corp. President Packaging Corp. President Tokyo Crorp. Tait Marketing & Distribution Co., Ltd. Lien-Bo Enterprises Corp. Shanghai Songjiang President Enterprises Co., Ltd. Kuang Chuan Dairy Corp.

Investees of ultimate parent company accounted for using the equity method 〃 Investees of subsidiaries of ultimate parent company accounted for using the equity method 〃 The Company is a director of Koasa Yamako Corp.

Weilih Food Industrial Co., Ltd. Kang Na Hsiung Enterprises Co., Ltd.

Tung Chan Enterprises Corp. Koasa Yamako Corp.

(3)Significant related party transactions and balances

A. Operating revenue

Sales of goods Ultimate parent Associates Sister companies Other related parties Sales of services Ultimate parent Associates Sister companies Other related parties	For the three-month period ended September 30, 2018 $ 144,231 40,018 84,585 18,690 2,386 9,159 3,006 1,632 $ 303,707	For the three-month period ended September 30, 2017 $ 141,580 279,840 61,589 25,630 1,904 29,415 2,920 911 $ 543,789

~46~

Sales of goods Ultimate parent Associates Sister companies Other related parties Sales of services Ultimate parent Associates Sister companies Other related parties	For the nine-month period ended September 30, 2018 $ 432,424 112,296 221,544 54,847 8,323 28,744 8,331 3,890 $ 870,399	For the nine-month period ended September 30, 2017 $ 410,490 856,480 185,526 54,145 5,898 115,719 8,679 2,242 $ 1,639,179

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

B. Purchases

Ultimate parent Associates Sister companies Other related parties	For the three-month period ended September 30, 2018 $ 4,102,705 64,002 1,048,756 547,714 $ 5,763,177	For the three-month period ended September 30, 2017 $ 4,006,148 94,997 1,171,184 264,771 $ 5,537,100

Ultimate parent Associates Sister companies Other related parties	For the nine-month period ended September 30, 2018 $ 11,575,196 216,120 3,004,620 1,595,650 $ 16,391,586	For the nine-month period ended September 30, 2017 $ 11,255,900 343,577 3,091,578 708,254 $ 15,399,309

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

C. Receivables from related parties

Receivables from related parties
Ultimate parent Associates Sister companies Other related parties	September 30, 2018 $ 102,639 77,131 52,548 5,964 $ 238,282	December 31, 2017 $ 190,171 68,686 72,400 8,725 $ 339,982	September 30, 2017
			$ 156,787 175,900 48,535 3,148 $ 384,370

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

~47~

D. Payables to related parties

Ultimate parent Associates Sister companies Other related parties	September 30, 2018 $ 1,667,232 53,954 489,768 399,671 $ 2,610,625	December 31, 2017 $ 1,558,451 68,577 406,713 327,697 $ 2,361,438	September 30, 2017 $ 1,678,659 106,548 496,905 209,534 $ 2,491,646

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

E. Property transactions

(a)Acquisition of property, plant and equipment and investment property:

E. Property transactions (a)Acquisition of property, plant and equipment and investment property:
Accounts For the three-month period ended September 30, 2018 Associates Property, plant and equipment $ 16,944 Accounts For the three-month period ended September 30, 2017 Sister companies Property, plant and equipment $ - Investment property - $ - (b)Disposal of financial assets: Accounts No. of shares Objects Sister companies Investments accounted for using equity method 108,160 Grand Bills Finance Corp. Key management compensation For the three-month period ended September 30, 2018 Salaries and other short-term employee benefits $ 164,017 For the nine-month period ended September 30, 2018 Salaries and other short-term employee benefits $ 513,773	For the nine-month period ended September 30, 2018 $ 16,944 For the nine-month period ended September 30, 2017 $ 32,215 179,669 $ 211,884 For the nine-month period ended September 30, 2018 Proceeds Gain $ 1,828 $ 59 For the three-month period ended September 30, 2017 $ 152,219 For the nine-month period ended September 30, 2017 $ 461,832	For the nine-month period ended September 30, 2018
		$ 16,944
		For the nine-month period ended September 30, 2017 $ 32,215 179,669
		$ 211,884

(4) Key management compensation

~48~

8. PLEDGED ASSETS

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

Pledged asset		Book value	September 30, 2017 $ 368,869 193,529 462,658 49,665 $ 1,074,721	Purpose
	September 30, 2018 $ 128,643 54,059 569,619 40,765 $ 793,086	December 31, 2017 $ 368,869 187,884 493,134 49,665 $ 1,099,552
Land Buildings Transportation equipment Pledged time deposits (Recognized as “Other non-current assets – guarantee deposits paid ”)				Long-term and short-term borrowings and guarantee facilities Long-term and short-term borrowings and guarantee facilities Long-term borrowings and long-term installment payable Performance guarantee

SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNIZED CONTRACT COMMITMENTS

None.

10. SIGNIFICANT DISASTER LOSS

None.

11. SIGNIFICANT EVENTS AFTER THE BALANCE SHEET DATE

None.

12. OTHERS

(1) Capital management

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

~49~

(2) Financial instruments

A. Financial instruments by category

Financial assets Financial assets at fair value through profit or loss Financial assets at fair value through profit or loss Financial assets held for trading Financial assets at fair value through other comprehensive income Designation of equity instrument Qualifying equity instrument Available-for-sale financial assets Financial assets measured at cost Financial assets at amortized cost/Loans and receivables Cash and cash equivalents Accounts receivable, net Other receivables 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 Long-term borrowings (including current portion) Guarantee deposit received	September 30, 2018 $ 1,145,980 - 778,601 201,124 - - 47,448,483 5,225,680 2,002,468 2,698,348 $ 59,500,684 $ 7,111,486 210,000 2,887,943 23,961,610 26,126,851 1,303,752 3,385,268 $ 64,986,910	December 31, 2017 $ - 1,560,025 - - 1,050,734 25,721 35,783,291 4,868,902 28,412,101 2,656,420 $ 74,357,194 $ 965,180 250,000 2,066,511 21,170,963 30,980,251 1,379,205 3,355,171 $ 60,167,281	September 30, 2017 $ - 1,008,917 - - 1,067,350 27,384 28,311,564 4,157,156 1,960,986 2,417,423 $ 38,950,780 $ 1,350,915 379,996 1,357,967 20,116,647 22,110,768 1,159,522 3,350,156 $ 49,825,971

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B. Risk management policies

(a) The Group’s risk management and hedging policies mainly focus on hedging business risk. The Group also establishes hedge positions when trading derivative financial instruments. The choice of instruments should hedge risks relating to interest expense, assets or liabilities arising from business operations.
(b) For managing derivative instruments, the treasury department is responsible for managing trading positions of derivative instruments and assesses market values periodically. If transactions and gains (losses) are abnormal, the treasury will respond accordingly and report to the Board of Directors immediately.
(c)There is no related transaction about derivative financial instruments that are used to hedge certain exchange rate risk.

C. Significant financial risks and degrees of financial risks

(a)Market risk

Foreign exchange risk

I. The Group operates internationally and is exposed to foreign exchange risk arising from of the Company and its subsidiaries used in various functional currency, the transactions primarily with respect to the USD and RMB. Exchange risk arises from future commercial transactions and recognized assets and liabilities.
II. Management has set up a policy to require group companies to manage their foreign exchange risk against their functional currencies.
III. The Company’s and certain subsidiaries’ functional currency is the New Taiwan dollar (NTD), and for other certain subsidiaries, the functional currency is the Renminbi (RMB). The details of assets and liabilities denominated in foreign currencies whose values would be materially affected by exchange rate fluctuations are as follows:

	(Foreign currency: functional currency) Financial assets Monetary items USD: NTD RMB:NTD JPY:NTD HKD:NTD Non-monetary items JPY: NTD Financial liabilities Monetary items USD: NTD JPY: NTD HKD:NTD ERU:NTD	September 30, 2018 Foreign currency amount (In thousands) Exchange rate Book value (NTD) $ 1,488 30.5250 $ 45,421 1,560 4.4440 6,933 28,540 0.2692 7,683 2,290 3.8995 8,930 $ 831,600 0.2692 $ 223,867 $ 4,997 30.5250 $ 152,533 91,209 0.2692 24,553 1 3.8995 4 761 35.4800 27,000	September 30, 2018 Foreign currency amount (In thousands) Exchange rate Book value (NTD) $ 1,488 30.5250 $ 45,421 1,560 4.4440 6,933 28,540 0.2692 7,683 2,290 3.8995 8,930 $ 831,600 0.2692 $ 223,867 $ 4,997 30.5250 $ 152,533 91,209 0.2692 24,553 1 3.8995 4 761 35.4800 27,000	December 31, 2017	December 31, 2017	Book value (NTD) $ 107,434 2,318,907 27,667 16,795 $ 235,640 $ 2,970,465 16,788 - -
		Foreign currency amount (In thousands) $ 1,488 1,560 28,540 2,290 $ 831,600 $ 4,997 91,209 1 761	Exchange rate 30.5250 4.4440 0.2692 3.8995 0.2692 30.5250 0.2692 3.8995 35.4800	Foreign currency amount (In thousands) $ 3,610 507,009 104,720 4,410 $ 891,900 $ 99,814 63,542 - -	Exchange rate 29.7600 4.5737 0.2642 3.8085 0.2642 29.7600 0.2642 - -

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(Foreign currency: functional currency) Financial assets Monetary items USD: NTD RMB:NTD JPY:NTD HKD:NTD Non-monetary items JPY: NTD Financial liabilities Monetary items USD: NTD JPY: NTD RMB:NTD HKD:NTD ERU:NTD	September 30, 2017 Foreign currency amount (In thousands) Exchange rate Book value (NTD) $ 1,397 30.2600 $ 42,273 930 4.5485 4,230 134,798 0.2691 36,274 4,166 3.8740 16,139 $ 951,000 0.2691 $ 255,914 $ 947 30.2600 $ 28,656 76,525 0.2691 20,593 265 4.5485 1,205 2 3.8740 8 39 35.7500 1,394	September 30, 2017 Foreign currency amount (In thousands) Exchange rate Book value (NTD) $ 1,397 30.2600 $ 42,273 930 4.5485 4,230 134,798 0.2691 36,274 4,166 3.8740 16,139 $ 951,000 0.2691 $ 255,914 $ 947 30.2600 $ 28,656 76,525 0.2691 20,593 265 4.5485 1,205 2 3.8740 8 39 35.7500 1,394
	Foreign currency amount (In thousands) $ 1,397 930 134,798 4,166 $ 951,000 $ 947 76,525 265 2 39	Exchange rate 30.2600 4.5485 0.2691 3.8740 0.2691 30.2600 0.2691 4.5485 3.8740 35.7500

IV. Total exchange loss (gain), including realized and unrealized from significant foreign exchange variations on monetary items held by the Group amounted to ($5,840), $1,456, $57,173 and $3,142 for the three-month and nine-month periods ended September 30, 2018 and 2017, respectively.
V. Analysis of foreign currency market risk arising from significant foreign exchange variation: Foreign exchange risk with respect to USD primarily arises from the exchange gain or loss resulting from foreign currency translation of cash and cash equivalents and accounts payable denominated in USD. As of September 30, 2018 and 2017, if the NTD:USD exchange rate appreciates/depreciates by 5% with all other factors remaining constant, the Group’s profit for the nine-month periods ended September 30, 2018 and 2017 would increase/decrease by $5,356 and $681, respectively. Foreign exchange risk with respect to JPY primarily arises from the exchange gain or loss resulting from foreign currency translation of cash and cash equivalents, financial assets at fair value through other comprehensive income - non-current and accounts payable denominated in JPY. If the NTD:JPY exchange rate appreciates/depreciates by 5%, with all other factors remaining constant, the Group’s profit for the nine-month periods ended September 30, 2018 and 2017 would increase/decrease by $10,349 and $13,580, respectively.

Price risk

I. The Group’s equity securities, which are exposed to price risk, are the held financial assets at fair value through profit or loss, financial assets at fair value through other comprehensive income and available-for-sale financial assets. To manage its price risk arising from investments in equity securities, the Group diversifies its portfolio. Diversification of the portfolio is done in accordance with the limits set by the Group.
II. The Group’s investments in equity securities comprise shares and open-ended funds issued by the domestic companies. The prices of equity securities would change due to change of the future value of investee companies. If the prices of these equity securities increase / decrease by 5%, and open-ended funds increase / decrease by 0.25%, with all other variables held constant, the post-tax profit for the nine-month periods ended September 30, 2018 and 2017 would have increased/decreased by $6,935 and $2,506, respectively, as a result of gains/losses on equity securities and open-ended funds classified as at fair value through profit or loss. Other components of equity would have increased/decreased by $38,930 and $40,028, respectively, as a result of other comprehensive income classified as equity investment at fair value through other comprehensive income and available-for-sale equity investment.

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Cash flow and fair value interest rate risk

I. The Group’s interest rate risk arises from long-term borrowings. Borrowings issued at variable rates expose the Group to cash flow interest rate risk, which are partially offset by cash and cash equivalents held at variable rates. Borrowings issued at fixed rates expose the Group to fair value interest rate risk. During the nine-month periods ended September 30, 2018 and 2017, the Group’s borrowings at variable rate were mainly denominated in New Taiwan dollars and Philippine Peso.
II. If the borrowing interest rate had increased/decreased by 0.25% with all other variables held constant, profit, net of tax for the nine-month periods ended September 30, 2018 and 2017 would have increased/decreased by $2,634 and $2,524, respectively. The main factor is that changes in interest expense result in floating-rate borrowings.
III. If the government bond yield rate had increased/decreased by 0.25% with all other variables held constant, other comprehensive income for the nine-month periods ended September 30, 2018 and 2017 would have decreased by $385 and $860 or increased by $356 and $886, respectively. The main factor is that changes in market interest rates would affect the fair value of fixed interest rate bond investments held by the Group classified as financial assets at fair value through other comprehensive income.
(b) Credit risk
I. Credit risk refers to the risk of financial loss to the Group arising from default by the clients or counterparties of financial instruments on the contract obligations. The main factor is that counterparties could not repay in full the accounts receivable based on the agreed terms, and the contract cash flows of debt instruments stated at amortized cost, at fair value through profit or loss and at fair value through other comprehensive income.
II. The Group manages their credit risk taking into consideration the entire group’s concern. For banks and financial institutions, only independently rated parties with a minimum rating of 'A' are accepted.
III. The Group operates a chain of retail stores, thus the ratio of accounts receivable to total asset is low. The Group classifies customers’ accounts receivable in accordance with credit rating of customer. The Group applies the simplified approach using provision matrix to estimate expected credit loss under the provision matrix basis and using the forecast ability to adjust historical and timely information to assess the default possibility of accounts receivable. Movements in relation to the group applying the simplified approach to provide loss allowance for accounts receivable are as follows:

are as follows:
	September 30, 2018
	Accounts receivable
At January 1_IAS 39	$	48,471
Adjustments under new standards		10,889
At January 1_IFRS 9		59,360
Provision for impairment		2,395
Reversal of impairment	(	1,908)
Write-offs	(	16,244)
Effect of foreign exchange	(	1,610)
At September 30	$	41,993

IV. The Group’s investment in debt instrument is the government bond, which was issued by R.O.C, the risk of expected credit loss is low. The Group has no unrecognized allowance for investment in debt instrument at fair value through other comprehensive income for the nine-month period ended September 30, 2018.

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V. The Group has no written-off financial assets that are still under recourse procedures on September 30, 2018.
VI. Credit risk information for the nine-month period ended September 30, 2017 is provided in Note 12(4).

(c) Liquidity risk

I. Cash flow forecasting is performed by the operating entities of the Group and aggregated by the Group’s finance department. It monitors rolling forecasts of liquidity requirements to ensure the Group has sufficient cash to meet operational needs, while maintaining sufficient headroom on its undrawn committed borrowing facilities, at all times, so that the Group does not breach borrowing limits or covenants on any of its borrowing facilities. Such forecasting takes into consideration the Group’s debt financing plans, covenant compliance, and compliance with internal balance sheet ratio targets.
II. The Group invests surplus cash in interest bearing current accounts, time deposits, money market fund and marketable securities, and chooses instruments with appropriate maturities or sufficient liquidity to provide sufficient headroom as determined by the aforementioned forecasting. The Group held money market funds of $1,060,297, $1,560,025 and $1,008,917 as at September 30, 2018, December 31, 2017, and September 30, 2017, respectively, which are expected to readily generate cash inflows for the purpose of managing liquidity risk.
III. The Group has undrawn borrowing facilities of $14,141,400, $11,302,389 and $8,966,539 as of September 30, 2018, December 31, 2017 and September 30, 2017, respectively.
IV. The table below analyses the Group’s non-derivative financial liabilities into relevant maturity groupings based on the remaining period at the balance sheet date to the contractual maturity date for non-derivative financial liabilities. The amounts disclosed in the table are the contractual undiscounted cash flows.

Non-derivative financial liabilities:

undiscounted cash flows. Non-derivative financial liabilities:
September 30, 2018 Short-term borrowings Short-term notes and bills payable Notes payable Accounts payable Other payables Long-term borrowings (including current portion) Non-derivative financial liabilities: December 31, 2017 Short-term borrowings Short-term notes and bills payable Notes payable Accounts payable Other payables Long-term borrowings (including current portion)	Less than 1 year Between 1 and 2 years Between 2 and 3 years $ 7,182,700 $ - $ - 210,000 - - 2,887,943 - - 23,961,610 - - 26,126,851 - - 329,806 474,874 102,157 Less than 1 year Between 1 and 2 years Between 2 and 3 years $ 986,476 $ - $ - 250,000 - - 2,066,511 - - 21,170,963 - - 30,980,251 - - 304,830 510,498 95,568	Over 3 years
		$ - - - - - 465,545 Over 3 years
		$ - - - - - 554,210

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Non-derivative financial liabilities:

Non-derivative financial liabilities:
September 30, 2017 Short-term borrowings Short-term notes and bills payable Notes payable Accounts payable Other payables Long-term borrowings (including current portion)	Less than 1 year Between 1 and 2 years Between 2 and 3 years $ 1,387,349 $ - $ - 379,996 - - 1,357,967 - - 20,116,647 - - 22,110,768 - - 209,647 495,186 82,129	Over 3 years
		$ - - - - - 433,039

(3) Fair value information

A. The different levels of the inputs used in valuation techniques to measure the fair value of financial and non-financial instruments are defined as follows:
Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date. A market is regarded as active where a market in which transactions for the asset or liability take place with sufficient frequency and volume to provide pricing information on an ongoing basis. The fair value of the Group’s investment in listed stocks, beneficiary certificates and on-the-run Taiwan central government bonds is included in Level 1.
Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.
Level 3: Unobservable inputs for the asset or liability. The fair value of the Group’s investment in equity investments without an active market is included in Level 3.
B. Fair value information of the Group’s investment property at cost is provided in Note 6(8).
C. Financial instruments not measured at fair value
(a) Except for those listed in the table below, the carrying amounts of cash and cash equivalents, accounts receivable, other receivables, short-term borrowings, notes payable, accounts payable and other payables are approximate to their fair values.

	September 30, 2018	September 30, 2018
Book value $ 2,698,348 $ 3,385,268		Fair value
	Level 1 Level 2 $ - $ - $ - $ - December 31, 2017		Level 3 $ 2,677,997 $ 3,355,502
Book value $ 2,656,420 $ 3,355,171		Fair value
	Level 1 $ - $ -	Level 2 $ - $ -	Level 3 $ 2,639,566 $ 3,327,231

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Financial assets: Guarantee deposit paid Financial liabilities: Guarantee deposit received			September 30, 2017	September 30, 2017
	Book value $ 2,417,423 $ 3,350,156			Fair value
			Level 1 $ - $ -	Level 2 $ - $ -	Level 3 $ 2,401,441 $ 3,319,094

(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 September 30, 2018 Level 1 Level 2 Assets Recurring fair value measurements Financial assets at fair value through profit or loss Open-ended funds $ 1,060,297 $ - Equity securities - - 1,060,297 - Financial assets at fair value through other comprehensive income Equity securities 774,253 - Debt securities 201,124 - 975,377 - $ 2,035,674 $ - December 31, 2017 Level 1 Level 2 Assets Recurring fair value measurements Financial assets at fair value through profit or loss Open-ended funds $ 1,560,025 $ - Available-for-sale financial assets Equity securities 784,115 - Government bond 202,159 - 986,274 - $ 2,546,299 $ -	information is as Level 3 $ - 85,683 85,683 4,348 - 4,348 $ 90,031 Level 3 $ - 64,460 - 64,460 $ 64,460	follows: Total $ 1,060,297 85,683 1,145,980 778,601 201,124 979,725 $ 2,125,705 Total $ 1,560,025 848,575 202,159 1,050,734 $ 2,610,759

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September 30, 2017 Assets Recurring fair value measurements Financial assets at fair value through profit or loss Open-ended funds Available-for-sale financial assets Equity securities Government bond	Level 1 $ 1,008,917 800,567 202,323 1,002,890 $ 2,011,807	Level 2 $ - - - - $ -	Level 3 $ - 64,460 - 64,460 $ 64,460	Total $ 1,008,917
				865,027 202,323 1,067,350 $ 2,076,267

(b) The methods and assumptions the Group used to measure fair value are as follows:
I. The instruments the Group used market quoted prices as their fair values (that is, Level 1) are listed below by characteristics:

Listed shares Open-ended fund Government bond Market quoted price Closing price Net asset value Closing price

II. Except for financial instruments with active markets, the fair value of other financial instruments is measured using valuation techniques or by reference to counterparty quotes. The fair value of financial instruments measured using valuation techniques can be referred to current fair value of instruments with similar terms and characteristics in substance, by discounted cash flow method or other valuation methods, including calculations by applying models using market information available at the consolidated balance sheet date.
E. For the nine-month periods ended September 30, 2018 and 2017, there was no transfer between Level 1 and Level 2.
F. For the nine-month periods ended September 30, 2018 and 2017, there was no significant transfer in or out of Level 3.
G. The Group is in charge of valuation procedures for fair value measurements being categorized within Level 3, which to verify the independent fair value of financial instruments. Such assessments are to ensure the valuation results are reasonable by applying independent information to compare the results to current market conditions, confirming the information resources are independent, reliable and in line with other resources, and represented as the exercisable price, and frequently making any other necessary adjustments to the fair value. Investment property is assessed by independent appraisers or based on recent closing prices of similar property in the neighbouring area.
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:

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Non-derivative equity instrument: Unlisted shares Non-derivative equity instrument: Unlisted shares Non-derivative equity instrument: Unlisted shares	Fair value at September 30, 2018 $ 90,031 Fair value at December 31, 2017 $ 64,460 Fair value at September 30, 2017 $ 64,460	Valuation technique Market comparable companies Net asset value Valuation technique Net asset value Valuation technique Net asset value	Significant unobservable input Price to book ratio multiplier Net asset value Significant unobservable input Net asset value Significant unobservable input Net asset value	Range (weighted average) 2.21 - Range (weighted average) - Range (weighted average) -	Relationship of inputs to fair value
					The higher the multiplier, the higher the fair value The higher the net asset value, the higher the fair value Relationship of inputs to fair value The higher the net asset value, the higher the fair value Relationship of inputs to fair value The higher the net asset value, the higher the fair value

I. The Group has carefully assessed the valuation models and assumptions used to measure fair value. However, the use of different valuation models or assumptions may result in different measurements. If net assets from financial assets and liabilities categorized within Level 3 had increased or decreased by 1%, other comprehensive income would not have been significantly impacted as of September 30, 2018, December 31, 2017, and September 30, 2017.

(4) Effects on initial application of IFRS 9 and information on application of IAS 39 in 2017

A. Summary of significant accounting policies adopted in the third quarter of 2017:
(a) Financial assets at fair value through profit or loss
- I. They are financial assets held for trading. Financial assets are classified in this category of held for trading if acquired principally for the purpose of selling in the short-term.
- II. 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.
- III. Financial assets at fair value through profit or loss are initially recognized at fair value. Related transaction costs are expensed in profit or loss. These financial assets are subsequently remeasured and stated at fair value, and any changes in the fair value of these financial assets are recognized in profit or loss.

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(b) Available for sale financial assets
I. They are non-derivatives that are either designated in this category or not classified in any of the other categories.
II. On a regular way purchase or sale basis, available-for-sale financial assets are recognized and derecognized using trade date accounting.
III. They are initially recognized at fair value plus transaction costs. These financial assets are subsequently remeasured and stated at fair value, and any changes in the fair value of these financial assets are recognized in other comprehensive income. Investments in equity instruments that do not have a quoted market price in an active market and whose fair value cannot be reliably measured or derivatives that are linked to and must be settled by delivery of such unquoted equity instruments are presented in ‘ financial assets measured at cost’.
(c) Loans and receivables
Accounts receivable are loans and receivables originated by the entity. They are created by the entity by selling goods or providing services to customers in the ordinary course of business. They are initially recognized at fair value and subsequently measured at amortized cost using the effective interest method, less provision for impairment. However, short-term accounts receivable without bearing interest are subsequently measured at initial invoice amount as the effect of discounting is immaterial.
(d) Impairment of financial assets
I. The Group assesses at each balance sheet date whether there is objective evidence that a financial asset or a group of financial assets is impaired as a result of one or more events that occurred after the initial recognition of the asset (a ‘loss event’) and that loss event (or events) has an impact on the estimated future cash flows of the financial asset or group of financial assets that can be reliably estimated.
II. The criteria that the Group uses to determine whether there is objective evidence of an impairment loss is as follows:
- (i) Significant financial difficulty of the issuer or debtor;
- (ii) A breach of contract, such as a default or delinquency in interest or principal payments;
- (iii) A significant or prolonged decline in the fair value of an investment in an equity instrument below its cost.
III. When the Group assesses that there has been objective evidence of impairment and an impairment loss has occurred, accounting for impairment is made as follows according to the category of financial assets:
- (i) Financial assets at amortized cost
  - The amount of the impairment loss is measured as the difference between the asset’s carrying amount and the present value of estimated future cash flows discounted at the financial asset’s original effective interest rate, and is recognized in profit or loss. If, in a subsequent period, the amount of the impairment loss decreases and the decrease can be related objectively to an event occurring after the impairment loss was recognized, the previously recognized impairment loss is reversed through profit or loss to the extent that the carrying amount of the asset does not exceed its amortized cost that would have been at the date of reversal had the impairment loss not been recognized previously. Impairment loss is recognized and reversed by adjusting the carrying amount of the asset through the use of an impairment allowance account.
- (ii) Financial assets at cost
  - The amount of the impairment loss is measured as the difference between the asset’s carrying amount and the present value of estimated future cash flows discounted at current market return rate of similar financial asset, and is recognized in profit or loss. Impairment loss recognized for this category shall not be reversed subsequently. Impairment loss is recognized by adjusting the carrying amount of the asset through the use of an impairment allowance account.

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(iii) Available-for-sale financial assets

The amount of the impairment loss is measured as the difference between the asset’s acquisition cost and current fair value, less any impairment loss on that financial asset previously recognized in profit or loss, and is reclassified from ‘other comprehensive income’ to ‘profit or loss’. Impairment loss of an investment in an equity instrument recognized in profit or loss shall not be reversed through profit or loss. Impairment loss is recognized and reversed by adjusting the carrying amount of the asset through the use of an impairment allowance account.

B. The reconciliations of carrying amount of financial assets transferred from December 31, 2017, IAS 39, to January 1, 2018, IFRS 9, were as follows:

								Available-for		Available-for
								sale-equity		sale-liability											Effects
					Measured at			Measured at		Measured at
		Accounts receivable,				fair value through profit or loss –		fair value through other comprehensive		fair value through other comprehensive		Measured at amortized					Retained				Other		Non- controlling
			net		non current			income-equity	income-liability				cost		Total		earnings				equity		interest
IAS 39		$	4,868,902		$	-		$ 848,575	$	202,159		$	25,721		$ 5,945,357		$	-		$		-	$		-
Transferred into and
measured at fair value
through profit or loss				-		85,833	(	60,112)		-	(		25,721)			-		22,498	(		22,498)				-
Recognized the IFRS 9
effects through
investment accounted
for using equity method				-		-		-		-			-			-		8,651	(		6,955)				-
Impairment loss
adjustment	(		10,889)			-		-		-			-	(	10,889)		(	5,686)				-	(	5,203)
IFRS 9		$	4,858,013		$	85,833		$ 788,463	$	202,159		$	-		$ 5,934,468		$	25,463	($		29,453 )		($	5,203)

(a) Under IAS 39, because the cash flows of debt instruments, which were classified as available-for-sale financial assets, amounting to $202,159, met the condition that it is intended to settle the principal and interest on the outstanding principal balance, and the Group held these assets for the purpose of receiving cash inflow and sale, thus were reclassified as “financial assets at fair value through other comprehensive income (debt instruments)” on initial application of IFRS 9.
(b) Under IAS 39, the equity instruments, which were classified as available-or-sale financial assets and financial assets at cost, amounting to $60,112 and $25,721, respectively, were reclassified as “financial assets at fair value through profit or loss (equity instruments)”, increased retained earnings and decreased other equity interest in the amounts of $22,498 and $22,498, respectively, under IFRS 9.
(c) The Group’s investee accounted for using the equity method expects to make certain reclassifications in accordance with IFRS 9. Accordingly, the Group was expected to increase investments accounted for using the equity method and retained earnings in the amount of $1,696 and $8,651, respectively, and decrease other equity interest in the amount of $6,955.
(d) The Group’s accounts receivable for impairment and provision which were impaired under IAS 39, is converted to expected credit losses under IFRS 9. In line with the regulation of IFRS 9 on provision for impairment, accounts receivable were reduced by $10,889, decreased retained earnings and noncontrolling interests in the amounts of $5,686 and $5,203, respectively.

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C. The significant accounts as of December 31, 2017 and for the nine-month period ended September 30, 2017 are as follows:
(a) Financial assets at fair value through profit or loss

Financial assets held for trading Open-ended fund Valuation adjustment of financial assets held for trading	December 31, 2017 $ 1,554,463 5,562 $ 1,560,025	September 30, 2017 $ 1,002,568 6,349 $ 1,008,917

The Group recognized net gain of $1,656 and $5,390 on financial assets held for trading for the three-month and nine-month periods ended September 30, 2017, respectively.

(b) Available-for-sale financial assets - non-current

Listed stocks Unlisted stocks Government bonds Valuation adjustment	December 31, 2017 $ 265,606 41,963 199,840 507,409 543,325 $ 1,050,734	September 30, 2017 $ 265,606 41,962 199,813 507,381 559,969 $ 1,067,350

  - I. The Group recognized $38,188 and $167,897 in other comprehensive gain in relation to fair value changes for the three-month and nine-month periods ended September 30, 2017, respectively.

  - II. The counterparties of the Group’s investments in debt instruments have good credit quality.

(c) Financial assets at cost
- I. According to the Group’s intention, its investment objectives should be classified as ‘availablefor-sale financial assets’. However, as the investment objectives are not traded in active market, and no sufficient industry information of companies similar to their financial information cannot be obtained, the fair value of the investment objectives cannot be measured reliably. The Group classified those stocks as ‘financial assets measured at cost’.
- II. As of December 31, 2017 and September 30, 2017, no financial assets measured at cost held by the Group were pledged to others.
D. Credit risk information as of December 31, 2017 and for the nine-month period ended September 30, 2017 are as follows:
(a) Credit risk refers to the risk of financial loss to the Group arising from default by the clients or counterparties of financial instruments on the contract obligations. Credit risk arises from cash and cash equivalents, and deposits with banks and financial institutions, as well as credit outstanding receivables. For banks and financial institutions, only independently rated parties with a minimum rating of 'A' are accepted.
(b) For the nine-month period ended September 30, 2017, no credit limits were exceeded during the reporting periods, and management does not expect any significant losses from non-performance by these counterparties.
(c) The Group’s accounts receivable that are neither past due nor impaired are fully performing in line with the credit standards prescribed based on counterparties’ industrial characteristics, scale of business and profitability.

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(d) The ageing analysis of financial assets that were past due but not impaired is as follows:

	December 31, 2017	September 30, 2017
Up to 90 days	$ 119,587	$ 86,420
91 to 180 days	11,421	10,608
181 to 365 days	2,062	1,537
Over 365 days	11	-
	$ 133,081	$ 98,565

(e) Movements in the provision for impairment of accounts receivable for the nine-month period ended September 30, 2017 are as follows:

ended September 30, 2017 are as follows:
		For the nine-month
		period ended
		September 30, 2017
At January 1		$ 112,649
Provision for impairment		16,017
Write-offs	(	69,899 )
Reversal of impairment	(	5,467)
At September 30		$ 53,300

(5) Effects of initial application of IFRS 15 and information on application of IAS 11 and IAS 18 in 2017

A. The significant accounting policies applied on revenue recognition for the nine-month period ended September 30, 2017 are set out below:
(a) Sales of goods
- I. The Group’s revenue is measured at the fair value of the consideration received or receivable taking into account of business tax, returns, rebates and discounts for the sale of goods to external customers in the ordinary course of the Group’s activities. Revenue arising from the sales of goods is recognized when the Group has delivered the goods to the customer, the amount of sales revenue can be measured reliably and it is probable that the future economic benefits associated with the transaction will flow to the entity.
- II. The Group offers customers volume discounts and right of return for defective products. The Group estimates such discounts and returns based on historical experience. Allowance for such liabilities are recorded when the sales are recognized.
- III. The Group has customer loyalty programs where the Group grants loyalty award credits (such as ‘points’; the award credits can be used to exchange for free or discounted goods) to customers as part of a sales transaction. The fair value of the consideration received or receivable in respect of the initial sale shall be allocated between the initial sale of goods and the award credits. The amount of proceeds allocated to the award credits is measured by reference to the fair value of goods that can be redeemed by using the award credits and the proportion of award credits that are expected to be redeemed by customers. The Group recognizes the deferred portion of the proceeds allocated to the award credits as revenue only when it has fulfilled its obligations in respect of the award credits.
(b) Sales of services

The Group provides delivering services. Revenue from delivering services is recognized when the services is completed and the outcome of services provided can be estimated reliably. If the outcome of a service contract cannot be estimated reliably, contract revenue should be recognized only to the extent that contract costs incurred are likely to be recoverable.

~62~

B. The revenue recognized by using above accounting policies for the nine-month period ended September 30, 2017 are as follows:

30, 2017 are as follows:
Sales revenue Service revenue Other operating revenue Total	For the three-month period ended September 30, 2017 $ 50,843,469 3,211,338 3,228,647 $ 57,283,454	For the nine-month period ended September 30, 2017
			$ 147,389,557 9,525,969 8,542,766
			$ 165,458,292

C. The effects and description of current balance sheet items if the Group continues adopting above accounting policies are as follows (no significant effects on current comprehensive income statement):

Balance sheet items Accounts receivable, net Other current assets Other current liabilities Contract liabilities-current Contract liabilities-non-current Other non-current liabilities	Description (a) (a) (a)(b) (b) (b) (b)			September30,2018	September30,2018
			Balance by using IFRS 15 $ 5,225,680 2,536,350 1,767,115 4,180,681 307,670 4,149,596	Balance by using previous accounting policies $ 5,167,023 2,503,464 5,856,253 - - 4,457,266	Effects from changes in accounting policy $ 58,657 32,886 ( 4,089,138) 4,180,681 307,670 ( 307,670)

(a) Under IFRS 15, liability in relation to expected discounts and refunds to customers is recognized as refund liability in the amount of $91,543. At the same time, the Group has a right to recover the product from the customer where the customer exercises his right of return and recognizes as current asset (shown as ‘other current assets’) in the amount of $32,886. But were previously presented as accounts receivable - allowance for sales discounts in the balance sheet.

(b) Under IFRS 15, liabilities in relation to sales of gift certificates, gift cards, and franchise agreements are recognized as contract liabilities, but were previously presented as advance sales receipts in the balance sheet. As of September 30, 2018, the balance amounted to $4,180,681. Liabilities in relation to the customer loyalty program are recognized as contract liabilities, but were previously presented as deferred revenue in the balance sheet. As of September 30, 2018, the balance amounted to $307,670 and was presented as non-current liability.

~63~

13. SUPPLEMENTARY DISCLOSURES

(1) Significant transactions information

A. Loans to others: None.
B. Provision of endorsements and guarantees to others: None.
C. Holding of marketable securities at the end of the period (not including subsidiaries, associates and joint ventures): Please refer to Table 1.
D. Acquisition or sale of the same security with the accumulated cost reaching $300 million or 20% of the Company’s paid-in capital: Please refer to Table 2.
E. Acquisition of real estate reaching $300 million or 20% of paid-in capital or more: None.
F. Disposal of real estate reaching $300 million or 20% of paid-in capital or more: None.
G. Purchases or sales of goods from or to related parties reaching $100 million or 20% of paid-in capital or more: Please refer to Table 3.
H. Receivables from related parties reaching $100 million or 20% of paid-in capital or more: Please refer to Table 4.
I. Trading in derivative instruments undertaken during the reporting periods: None.
J. Significant inter-company transactions during the reporting periods: Please refer to Table 5.

(2) Information on investees

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

(3) Information on investments in Mainland China

A. Basic information: Please refer to Table 7.
B. Significant transactions, either directly or indirectly through a third area, with investee companies in the Mainland Area: None.

~64~

14. SEGMENT INFORMATION

(1) General information

Management has determined the reportable operating segments based on reports reviewed by the Chief Operating Decision-Maker and used to make strategic decisions.

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

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

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

(2) Measurement of segment information

The Chief Operating Decision-Maker evaluates the performance of the operating segments based on operating revenue and profit before income tax, which are the basis for measuring performance.

~65~

(3) Segment information

The segment information provided to the Chief Operating Decision-Maker for the reportable segments is as follows:

External revenue (net) Internal department revenue Total segment revenue Segment income (loss)		For the nine-month period ended September 30, 2018	For the nine-month period ended September 30, 2018	For the nine-month period ended September 30, 2018	For the nine-month period ended September 30, 2018		Total $ 183,181,122 - $ 183,181,122 $ 11,844,819
	Convenience stores $ 115,609,995 472,021 $ 116,082,016 $ 9,764,283	Retail business group $ 51,105,041 1,702,175 $ 52,807,216 $ 2,544,598	Logistics business group $ 1,519,501 9,877,959 $ 11,397,460 $ 917,466		Other operating segments Adjustment and elimination $ 14,946,585($ -) 4,946,950 ( 16,999,105) $ 19,893,535 ($ 16,999,105) $ 1,632,146 ($ 3,013,674)

External revenue (net) Internal department revenue Total segment revenue Segment income (loss)		For the nine-month period ended September 30, 2017	For the nine-month period ended September 30, 2017	For the nine-month period ended September 30, 2017	For the nine-month period ended September 30, 2017	For the nine-month period ended September 30, 2017		Total $ 165,458,292 - $ 165,458,292 $ 11,242,002
	Convenience stores $ 108,136,539 445,483 $ 108,582,022 $ 9,646,747	Retail business group $ 48,189,308 1,670,724 $ 49,860,032 $ 2,356,320	Logistics business group $ 2,050,431 9,621,531 $ 11,671,962 $ 894,534		Other operating segments $ 7,082,014 4,501,676 $ 11,583,690 $ 2,373,658	Adjustment and elimination $ - ( 16,239,414) ($ 16,239,414) ($ 4,029,257)

(4) Reconciliation of segment income (loss)

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

~66~

Table 1

Expressed in thousands of NTD (Except as otherwise indicated)

PRESIDENT CHAIN STORE CORP. AND SUBSIDIARIES

Holding of marketable securities at the end of the period (not including subsidiaries, associates and joint ventures) September 30, 2018

Securities held by	Type and name of securities	Relationship with the securities issuer	General ledger account		As of September 30,2018	As of September 30,2018		Footnote
				Number of shares	Book value	Ownership (%)	Fair value
President Chain Store Corp. President Chain Store Corp. President Chain Store Corp. President Chain Store Corp. Mech-President Corp. President Chain Store Corp. President Chain Store Corp. President Chain Store Corp. Books.com. Co., Ltd. Chieh-Shuen Logistics International Corp. Chieh-Shuen Logistics International Corp. Uni-Wonder Corp. Uni-Wonder Corp. Uni-Wonder Corp. President Information Corp. President Information Corp. President Logistics International Corp. President Logistics International Corp. President Pharmaceutical Corp. Retail Support Taiwan Corp. Zhejiang Uni-Champion Logistics Development Co., Ltd. Shan Dong President Yinzuo Commercial Limited Q-ware Systems & Services Corp. ICASH 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. Open ended funds: Jih Sun Money Market Fund UPAMC James Bond Money Market Fund Eastspring Investments Well Pool Money Market Fund FSITC Taiwan Money Market Fund Taishin 1699 Money Market Fund Union Money Market Fund Jih Sun Money Market Fund Prudential Financial Money Market Fund UPAMC James Bond Money Market Fund Eastspring Investments Well Pool Money Market Fund Jih Sun Money Market Fund FSITC Money Market Fund CIFM RMB Money Market Fund HSBC Jintrust Money Market Fund Eastspring Investments Well Pool Money Market Fund Bond: Government bond	Director of President Investment Trust Corp. None `〃` Director of PK Venture Capital Corp. None Investees of Uni-President Enterprises Corp. under the equity method None Director of Koasa Yamako Corp. None `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` 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 `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` Financial assets at fair value through other comprehensive income - non-current	2,667,600 837,753 2,572,127 321,300 9 38,221,259 300,000 650,000 676,924 1,200,142 1,621,657 3,276,991 6,671,460 12,909,791 9,211,527 8,109,831 1,950,236 5,380,783 1,872,529 67,163 - 6,048,919 19,312,218 -	45,298 $ 14,663 25,722 - - 550,386 223,867 4,348 10,002 $ 20,002 22,003 50,000 90,000 170,000 136,106 127,932 32,503 73,008 27,668 11,950 208 26,881 262,034 201,124 $	7.60 5.37 0.92 6.67 - 2.75 0.56 10.00 - - - - - - - - - - - - - - - -	45,298 $ 14,663 25,722 - - 550,386 223,867 4,348 10,002 $ 20,002 22,003 50,000 90,000 170,000 136,106 127,932 32,503 73,008 27,668 11,950 208 26,881 262,034 201,124 $

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 nine-month period ended September 30, 2018

Table 2 Investor	Type and name of securities	General ledger account	Counterparty	Relationship with the investor	Balance as at January1,2018	Balance as at January1,2018	Addi	tion		Disposal	Disposal		Other increase (decrease)	Other increase (decrease)	Expressed in thousands of NTD (Except as otherwise indicated) Balance as at September 30,2018	Expressed in thousands of NTD (Except as otherwise indicated) Balance as at September 30,2018
					Number of shares	Amount	Number of shares	Amount	Number of shares	Selling price	Book value	Gain (loss) on disposal	Number of shares	Amount	Number of shares	Amount
Books.com. Co., Ltd. Books.com. Co., Ltd. Chieh-Shuen Logistics International Corp. Uni-Wonder Corp. Uni-Wonder Corp. Uni-Wonder Corp. Uni-Wonder Corp. Uni-Wonder Corp. President Drugstore Business Corp. President Drugstore Business Corp. President Information Corp. President Logistics International Corp. President Pharmaceutical Corp. Q-ware Systems & Services Corp.	Open ended funds: Jih Sun Money Market Fund Yuanta De-Li Money Market Fund Eastspring Investments Well Pool Money Market Fund FSITC Taiwan Money Market Fund Nomura Taiwan Money Market Fund Union Money Market Fund Allianz Global Investors Taiwan Money Market Fund Taishin 1699 Money Market Fund Jih Sun Money Market Fund FSITC Taiwan Money Market Fund Jih Sun Money Market Fund Eastspring Investments Well Pool Money Market Fund Jih Sun Money Market Fund Eastspring Investments Well Pool Money Market Fund	Note 1 `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃`	Not applicable `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃`	Not applicable `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃`	1,358,373 - 5,250,222 13,151,752 12,328,480 6,855,158 2,408,497 3,718,301 - - 9,323,901 2,810,047 5,968,302 17,449,813	20,005 $ - 71,007 200,000 200,000 90,000 30,000 50,000 - - 137,318 38,004 87,898 236,000	88,163,118 20,071,229 44,185,663 42,667,230 36,925,142 38,764,002 24,840,292 44,539,009 65,155,152 67,577,946 32,186,208 38,368,093 46,230,899 145,516,950	1,300,000 $ 440,000 598,500 650,000 600,000 510,000 310,000 600,000 961,000 1,030,000 474,800 520,000 682,000 1,972,000	88,844,567 20,071,229 47,814,228 52,541,991 49,253,622 32,709,369 27,248,789 41,585,850 65,155,152 67,577,946 32,298,582 35,797,357 50,326,672 143,654,545	1,310,521 $ 440,103 647,640 800,578 800,363 430,369 340,170 560,180 961,135 1,030,188 476,370 485,081 742,450 1,946,928	1,310,000 $ 440,000 647,500 800,000 800,000 430,000 340,000 560,000 961,000 1,030,000 476,095 485,000 742,208 1,946,000	521 $ 103 140 578 363 369 170 180 135 188 275 81 242 928	- - - - - - - - - - - - - -	3) ($ - 4) ( - - - - - - - 83 3 22) ( 34	676,924 - 1,621,657 3,276,991 - 12,909,791 - 6,671,460 - - 9,211,527 5,380,783 1,872,529 19,312,218	10,002 $ - 22,003 50,000 - 170,000 - 90,000 - - 136,106 73,008 27,668 262,034

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

Table 2  Page 1

Table 3

PRESIDENT CHAIN STORE CORP. AND SUBSIDIARIES

Purchases or sales of goods from or to related parties reaching $100 million or 20% of paid-in capital or more For the nine-month period ended September 30, 2018

Expressed in thousands of NTD (Except as otherwise indicated)

Purchaser/seller	Counterparty	Relationship with the counterparty			Transaction		Differences in transaction terms compared to third party transactions	Differences in transaction terms compared to third party transactions	Notes/accounts	receivable(payable)	Footnote
			Purchases(sales)	Amount	Percentage of total purchases (sales)	Credit term	Unitprice	Credit term	Balance	Percentage of total notes/accounts receivable(payable)
President Chain Store Corp. Capital Inventory Services Corp. Chieh-Shuen Logistics International Corp. Duskin Serve Taiwan Co. Uni-Wonder Corp. President Information Corp. President Logistics International Corp.	Uni-President Enterprises Corp. Uni-President Superior Commissary Corp. Tung Ang Enterprises Corp. Lien-Bo Enterprises Corp. Kuang Chuan Dairy Corp. Q-ware Systems & Services Corp. Tait Marketing & Distribution Co., Ltd. Vision Distribution Service Corp. President Packaging Corp. Weilih Food Industrial Co., Ltd. President Transnet Corp. 21 Century Enterprise Co., Ltd. Mister Donut Taiwan Corp., Ltd. President Chain Store Corp. President Transnet Corp. President Logistics International Corp. President Chain Store Corp. Uni-President Enterprises Corp. Tung Chan Enterprise Corp. Retail Support International Corp. President Chain Store Corp. Retail Support International Corp.	Ultimate parent company Subsidiary Sister company `〃` Other related party Subsidiary Sister company Subsidiary Sister company Other related party Subsidiary `〃` Associate Parent company Subsidiary of President Chain Store Corp. Parent company `〃` Ultimate parent company Other related party Subsidiary of President Chain Store Corp. Parent company `〃`	Purchases `〃` `〃` `〃` `〃` `〃` `〃` Purchases returns Purchases `〃` `〃` `〃` `〃` Service revenue Delivery revenue `〃` Service revenue Purchases `〃` `〃` Service revenue Delivery revenue	11,242,100 $ 2,685,815 1,488,984 505,513 310,542 476,390 283,320 149,679) ( 225,607 212,923 188,357 166,748 118,279 125,901) ( 534,796) ( 735,185) ( 193,898) ( 188,689 735,669 147,267 530,372) ( 565,355) (	15 4 2 1 - 1 - - - - - - - 69) ( 40) ( 55) ( 22) ( 6 24 5 65) ( 24) (	Net 30~40 days from the end of the month when invoice is issued Net 45 days from the end of the month when invoice is issued Net 30 days from the end of the month when invoice is issued Net 10~54 days from the end of the month when invoice is issued Net 30~65 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 20~70 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 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 60 days from the end of the month when invoice is issued Net 30~60 days from the end of the month when invoice is issued Net 55~60 days from the end of the month when invoice is issued Net 60 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 15~60 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 29 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 20 days from the end of the month when invoice is issued	No significant differences `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃`	No significant differences `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃`	1,237,906) ($ 660,003) ( 167,232) ( 111,104) ( 111,148) ( 99,426) ( 90,254) ( - 51,036) ( 72,578) ( 17,889) ( 31,211) ( 24,310) ( 33,887 131,237 84,141 42,359 41,921) ( 88,851) ( 20,702) ( 223,443 65,180	7) ( 4) ( 1) ( 1) ( 1) ( 1) ( 1) ( - - - - - - 65 60 38 23 6) ( 13) ( 3) ( 68 23

Table 3  Page 1

Expressed in thousands of NTD (Except as otherwise indicated)

Table 3

PRESIDENT CHAIN STORE CORP. AND SUBSIDIARIES

Purchases or sales of goods from or to related parties reaching $100 million or 20% of paid-in capital or more For the nine-month period ended September 30, 2018

Purchaser/seller	Counterparty	Relationship with the counterparty			Transaction		Differences in transaction terms compared to third party transactions	Differences in transaction terms compared to third party transactions	Notes/accounts	receivable(payable)	Footnote
			Purchases(sales)	Amount	Percentage of total purchases (sales)	Credit term	Unitprice	Credit term	Balance	Percentage of total notes/accounts receivable(payable)
Uni-President Superior Commissary Corp. President Transnet Corp. Retail Support Taiwan Corp. Q-ware Systems & Services Corp. Wisdom Distribution Service Corp. President Drugstore Business Corp. President Pharmaceutical Corp. 21 Century Enterprise Co., Ltd. Vision Distribution Service Corp. Retail Support International Corp. Uni-President Cold-Chain Corp. Zhejiang Uni-Champion Logistics Development Co., Ltd. Shanghai President Logistic Co., Ltd.	Uni-President Cold-Chain Corp. Wisdom Distribution Service Corp. Chieh-Shuen Logistics International Corp. President Chain Store Corp. President Chain Store Corp. Chieh-Shuen Logistics International Corp. Retail Support International Corp. President Chain Store Corp. Books.com. Co., Ltd. President Logistics International Corp. President Pharmaceutical Corp. President Drugstore Business Corp. President Chain Store Corp. President Chain Store Corp. President Logistics International Corp. Retail Support Taiwan Corp. Uni-Wonder Corp. President Logistics International Corp. Shanghai President Logistic Co., Ltd. Zhejiang Uni-Champion Logistics Development Co., Ltd.	Subsidiary of President Chain Store Corp. `〃` Subsidiary Parent company `〃` Subsidiary of President Chain Store Corp. Parent company `〃` Subsidiary of President Chain Store Corp. `〃` `〃` `〃` Parent company `〃` Subsidiary `〃` Subsidiary of President Chain Store Corp. `〃` Parent company Subsidiary	Delivery revenue `〃` Service cost Sales revenue Sales revenue Service cost Delivery revenue Service revenue `〃` Service cost Purchases Sales revenue `〃` Sales returns Service cost `〃` Delivery revenue Service cost Delivery revenue Service cost	780,144) ($ 799,429) ( 735,185 2,685,815) ( 188,357) ( 534,796 228,566) ( 476,390) ( 214,099) ( 799,429 524,487 524,487) ( 166,748) ( 149,679 565,355 228,566 147,267) ( 780,144 151,181) ( 151,181	33) ( 33) ( 32 99) ( 43) ( 8 84) ( 69) ( 9) ( 44 7 36) ( 28) ( - 42 17 7) ( 38 29) ( 35	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 45 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 40 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 40 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 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 30~60 days from the end of the month when invoice is issued Net 30~60 days from the end of the month when invoice is issued Net 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 29 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 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 `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃`	93,149 $ 91,709 84,141) ( 660,003 17,889 131,237) ( 27,238 99,426 27,381 91,709) ( 28,528) ( 28,528 31,211 - 65,180) ( 27,238) ( 20,702 93,149) ( 54,099 54,099) (	33 33 49) ( 98 1 8) ( 80 79 4 34) ( 1) ( 5 31 - 46) ( 19) ( 7 2) ( 42 42) (

Table 3  Page 2

Table 4

Expressed in thousands of NTD (Except as otherwise indicated)

PRESIDENT CHAIN STORE CORP. AND SUBSIDIARIES

Receivables from related parties reaching $100 million or 20% of paid-in capital or more September 30, 2018

Creditor	Counterparty	Relationship with the counterparty	Balance as of September 30,2018	Turnover rate	Overdue r	eceivables	Amount collected subsequent to the balance sheet date	Allowance for doubtful accounts
					Amount	Action taken
President Information Corp. Uni-President Superior Commissary Corp. Chieh-Shuen Logistics International Corp.	President Chain Store Corp. President Chain Store Corp. President Transnet Corp.	Parent company `〃` Subsidiary of President Chain Store Corp.	223,443 $ 660,003 131,237	3.37 5.86 5.20	- $ - -	None `〃` `〃`	75,219 $ 345,981 43,486	- $ - -

Table 4  Page 1

Table 5

PRESIDENT CHAIN STORE CORP. AND SUBSIDIARIES

Significant inter-company transactions during the reporting period

For the nine-month period ended September 30, 2018

Expressed in thousands of NTD (Except as otherwise indicated)

Transaction

Number	Companyname	Counterparty	Relationship	General ledger account	Amount	Transaction terms	Percentage of consolidated total operating revenues or total assets
`0` `0` `1` `1` `2` `3` `4` `5` `6` `6` `6` `7` `7` `7` `8` `9` `10` `11` `11` `12` `13` `14` `15`	President Chain Store Corp. President Chain Store Corp. President Information Corp. President Information Corp. Q-ware Systems & Services Corp. Duskin Serve Taiwan Co. Uni-President Cold-Chain Corp. Capital Inventory Services Corp. Chieh-Shuen Logistics International Corp. Chieh-Shuen Logistics International Corp. Chieh-Shuen Logistics International Corp. President Logistics International Corp. President Logistics International Corp. President Logistics International Corp. Retail Support International Corp. President Pharmaceutical Corp. Zhejiang Uni-Champion Logistics Development Co., Ltd. Uni-President Superior Commissary Corp. Uni-President Superior Commissary Corp. 21 Century Enterprise Co., Ltd. Wisdom Distribution Service Corp. Retail Support Taiwan Corp. Vision Distribution Service Corp.	Books.com. Co., Ltd. President Transnet Corp. President Chain Store Corp. President Chain Store Corp. President Chain Store Corp. President Chain Store Corp. President Chain Store Corp. President Chain Store Corp. President Logistics International Corp. President Transnet Corp. President Transnet Corp. Retail Support International Corp. Uni-President Cold-Chain Corp. Wisdom Distribution Service Corp. Uni-Wonder Corp. President Drugstore Business Corp. Shanghai President Logistic Co., Ltd. President Chain Store Corp. President Chain Store Corp. President Chain Store Corp. Books.com. Co., Ltd. Retail Support International Corp. President Chain Store Corp.	Parent company to subsidiary Parent company to subsidiary Subsidiary to parent company Subsidiary to parent company Subsidiary to parent company Subsidiary to parent company Subsidiary to parent company Subsidiary to parent company Subsidiary to 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 Subsidiary to subsidiary Subsidiary to subsidiary Subsidiary to parent company	Other operating income Other operating income Accounts receivable Service revenue Service revenue Service revenue Other operating income Service revenue Delivery revenue Delivery revenue Accounts receivable Delivery revenue Delivery revenue Delivery revenue Sales revenue Sales revenue Sales revenue Accounts receivable Sales revenue Sales revenue Service revenue Delivery revenue Sales returns	129,077) ($ 131,810) ( 223,443 530,372) ( 476,390) ( 193,898) ( 260,362) ( 125,901) ( 735,185) ( 534,796) ( 131,237 565,355) ( 780,144) ( 799,429) ( 147,267) ( 524,487) ( 151,181) ( 660,003 2,685,815) ( 166,748) ( 214,099) ( 228,566) ( 149,679	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 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 15-60 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 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 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 29 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 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 30-60 days from the end of the month when invoice is issued Net 30 days from the end of the month when invoice is issued Net 15-20 days from the end of the month when invoice is issued Net 30-60 days from the end of the month when invoice is issued	0.07 0.07 0.18 0.29 0.26 0.11 0.14 0.07 0.40 0.29 0.11 0.31 0.43 0.44 0.08 0.29 0.08 0.53 1.47 0.09 0.12 0.13 0.08

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

Table 5  Page 1

Table 6

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 nine-month period ended September 30, 2018

Investor	Investee	Location	Main business activities	Initial invest	ment amount	Shares held	as atSeptembere30,2018	as atSeptembere30,2018	Net profit (loss) of the investee for the nine- month period ended September30,2018	Investment income (loss) recognized by the Company for the nine- month period ended September30,2018	Footnote
				Balance as at September 30, 2018	Balance as at December 31, 2017	Number of shares	Ownership (%)	Bookvalue
President Chain Store Corp. President Chain Store Corp. President Chain Store Corp. President Chain Store Corp. President Chain Store Corp. President Chain Store Corp. President Chain Store Corp. President Chain Store Corp. President Chain Store Corp. President Chain Store Corp. President Chain Store Corp. President Chain Store Corp. President Chain Store Corp. President Chain Store Corp. President Chain Store Corp. President Chain Store Corp. President Chain Store Corp. President Chain Store Corp. President Chain Store Corp. President Chain Store Corp. President Chain Store Corp. President Chain Store Corp. President Chain Store Corp. President Chain Store Corp. President Chain Store Corp. President Chain Store Corp. President Chain Store Corp. President Chain Store Corp.	President Chain Store (BVI) Holdings Ltd. President Drugstore Business Corp. President Transnet Corp. Mech-President Corp. President Pharmaceutical Corp. Uni-President Department Store Corp. Uni-President Superior Commissary Corp. Uni-President Cold-Chain Corp. President Information Corp. Q-ware Systems & Services Corp. Wisdom Distribution Service Corp. Books.com. Co., Ltd. President Yilan Art and Culture Corp. Duskin Serve Taiwan Co. 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 Inventory Services Corp. PCSC (China) Drugstore Limited President Chain Store Corporation Insurance Brokers Co., Ltd. Cold Stone Creamery Taiwan Ltd. President Being Corp.	British Virgin Islands Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan British Virgin Islands Taiwan Taiwan Taiwan	Professional investment Sales of cosmetics, medicines and daily items Delivery service Gas station, installment and maintenance of elevators Sales of various health care products, cosmetics, and pharmaceuticals Department stores Fresh food manufacture Low-temperature logistics and warehousing Enterprise information management and consultancy Information software services Logistics and storage of publication and e-commerce Retail business without shop Art and cultural exhibition Cleaning instruments leasing and selling Electronic ticketing services Construction, development and operatio of an MRT station Coffee chain store Room-temperature logistics and warehousing Management of retail department store Operation of shopping mall, department store, international trade, etc. Professional investment Management of entertainment business Professional investment Enterprise management consultancy Professional investment Life and property insurance Sales of ice cream Sports and entertainment business	6,712,138 $ 288,559 711,576 904,475 330,216 840,000 520,141 237,437 320,741 332,482 50,000 100,400 200,000 102,000 500,000 720,000 3,286,206 91,414 7,112,028 3,191,700 500,000 861,696 637,231 9,506 277,805 213,000 170,000 170,000	6,712,138 $ 288,559 711,576 904,475 330,216 840,000 520,141 237,437 320,741 332,482 50,000 100,400 200,000 102,000 500,000 720,000 3,286,206 91,414 7,112,028 3,191,700 500,000 861,696 637,231 9,506 277,805 213,000 170,000 170,000	171,589,586 78,520,000 103,496,399 55,858,815 22,121,962 27,999,999 48,519,890 23,605,042 25,714,475 24,382,921 10,847,421 9,999,999 20,000,000 10,199,999 50,000,000 72,000,000 21,382,674 6,429,999 130,801,027 190,000,000 44,100,000 19,930,000 6,500,000 2,500,000 8,746,008 1,500,000 12,244,390 1,500,000	100.00 100.00 70.00 80.87 73.74 70.00 90.00 60.00 86.00 86.76 100.00 50.03 100.00 51.00 100.00 20.00 60.00 25.00 19.50 19.00 3.33 12.46 100.00 100.00 92.20 100.00 100.00 100.00	25,410,397 $ 1,347,517 1,460,945 678,401 728,646 512,260 473,603 628,991 484,392 360,568 429,816 370,794 231,250 180,767 370,453 741,352 5,209,524 166,937 5,459,859 1,971,517 463,287 117,847 83,725 53,604 63,953 22,791 7,496) ( 43,498) (	400,228 $ 260,213 381,564 77,807 200,401 255,371 18,515 297,252 62,237 61,461 195,379 324,976 597 103,685 19,298 53,334 505,899 165,263 1,334,180 91,721 540,562 44,280) ( 8,793 21,672 955 6,634 16,403 16,689	400,228 $ 260,213 266,932 62,923 143,601 178,760 16,664 178,180 53,524 53,323 195,379 162,565 598 52,859 19,298 10,667 98,194 41,332 261,610 17,427 19,197 5,657) ( 8,792 21,672 881 6,634 16,043 16,689	Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Note 1 Subsidiary Subsidiary Note 1 Note 1 Note 1 Note 1 Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary

Table 6  Page 1

Table 6

PRESIDENT CHAIN STORE CORP. AND SUBSIDIARIES

Names, locations and other information of investee companies (not including investees in Mainland China) For the nine-month period ended September 30, 2018

Expressed in thousands of NTD (Except as otherwise indicated)

Investor	Investee	Location	Main business activities	Initial invest	ment amount	Shares held	as atSeptembere30,2018	as atSeptembere30,2018	Net profit (loss) of the investee for the nine- month period ended September30,2018	Investment income (loss) recognized by the Company for the nine- month period ended September30,2018	Footnote
				Balance as at September 30, 2018	Balance as at December 31, 2017	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. Books.com. Co., Ltd. Mech-President Corp. President Chain Store (Hong Kong) Holdings Limited President Chain Store (Hong Kong) Holdings Limited President Chain Store (BVI) Holdings Ltd. President Chain Store (BVI) Holdings Ltd. President Chain Store (Labuan) Holdings Ltd. President Logistics International Corp. President Pharmaceutical Corp. Ren-Hui Investment Corp. Ren-Hui Investment Corp. Ren-Hui Investment Corp. Ren-Hui Investment Corp. Ren-Hui Investment Corp. Ren-Hui Investment Corp. Ren-Hui Investment Corp. Ren-Hui Investment Corp.	21 Century Enterprise Co., Ltd. President Chain Store Tokyo Marketing Corp. Uni-President Oven Bakery Corp. President Collect Services Co., Ltd. Afternoon Tea Taiwan Co., Ltd. Mister Donut Taiwan Corp., Ltd. Uni-President Organics Corp. President Technology Corp. Grand Bills Finance Corp. Books.com. (BVI) Ltd. President Jing Corp. PCSC Restaurant (Cayman) Holdings Limited PCSC (China) Drugstore Limited President Chain Store (Hong Kong) Holdings Limited President Chain Store (Labuan) Holdings Ltd. Philippine Seven Corp. Chieh-Shuen Logistics International Corp. President Pharmaceutical (Hong Kong) Holdings Limited Books.com. Co., Ltd. Uni-President Department Store Corp. Mech-President Corp. President Information Corp. President Transnet Corp. Q-ware Systems & Services Corp. Duskin Serve Taiwan Co. President Pharmaceutical Corp.	Taiwan Japan Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan British Virgin Islands Taiwan Cayman Islands British Virgin Islands Hong Kong Malaysia Philippines Taiwan Hong Kong Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan	Operation of chain restaurants Enterprise management consultancy Bread and pastry retailer Collection agent Operation of restaurants Bakery retailer Health care products and organic food Software development and call center service Securities trading Professional investment Gas station Professional investment Professional investment Professional investment Professional investment Operation of chain stores Trucking Sales of various health care products, cosmetics, and pharmaceuticals Retail business without shop Department stores Gas station, installment and maintenance of elevators Enterprise information management and consultancy Delivery service Information software services Cleaning instruments leasing and selling Sales of various health care products, cosmetics, and pharmaceuticals	160,680 $ 35,648 391,300 10,500 147,900 200,000 47,190 7,500 1,050 1,478 9,600 158,977 22,589 4,754,480 890,211 889,356 180,000 178,024 - - - - - - - -	160,680 $ 35,648 391,300 10,500 147,900 200,000 47,190 7,500 1,050 1,478 9,600 158,977 22,589 4,754,480 890,211 889,356 180,000 89,415 - - - - - - - -	10,000,000 9,800 6,511,963 1,049,999 14,789,999 7,500,049 1,833,333 750,000 - 500 960,000 8,880,000 740,000 134,603,354 29,163,337 394,970,516 26,670,000 5,935,900 1 1 1 1 1 1 1 1	100.00 100.00 100.00 70.00 51.00 50.00 36.67 15.00 - 100.00 60.00 100.00 7.80 100.00 100.00 52.22 100.00 100.00 - - - - - - - -	31,657 $ 84,155 20,825) ( 56,782 41,847 89,784 37,716 17,478 - 590 24,034 30,802 5,410 4,205,389 1,945,923 1,945,179 309,329 79,331 - - - - - - - -	22,155 $ 11,082 11,308) ( 61,241 136) ( 12,141 18,454 12,349 338,008 1 13,057 138) ( 955 154,197 204,730 419,809 18,365 22,299) ( 324,976 255,371 77,807 62,237 381,564 61,461 103,685 200,401	22,156 $ 11,066 11,355) ( 42,868 70) ( 5,377 6,723 1,849 67 - 7,834 138) ( 75 154,197 204,730 218,780 18,365 22,299) ( - - - - - - - -	Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Note 1 Note 1 Note 1 Note 1 Subsidiary of a subsidiary Subsidiary of a subsidiary Subsidiary of a subsidiary Subsidiary of a subsidiary Subsidiary of a subsidiary Subsidiary of a subsidiary Subsidiary of a subsidiary Subsidiary of a subsidiary Subsidiary of a subsidiary Subsidiary of a subsidiary Subsidiary of a subsidiary Subsidiary of a subsidiary Subsidiary of a subsidiary Subsidiary of a subsidiary Subsidiary of a subsidiary Subsidiary of a subsidiary Subsidiary of a subsidiary

Table 6  Page 2

Table 6

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 nine-month period ended September 30, 2018

Investor	Investee	Location	Main business activities	Initial invest	ment amount	Shares held	as atSeptembere30,2018	as atSeptembere30,2018	Net profit (loss) of the investee for the nine- month period ended September30,2018	Investment income (loss) recognized by the Company for the nine- month period ended September30,2018	Footnote
				Balance as at September 30, 2018	Balance as at December 31, 2017	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. Retail Support International Corp. Retail Support International Corp. Retail Support Taiwan Corp. Uni-President Cold-Chain Corp. Uni-President Cold-Chain Corp. Wisdom Distribution Service Corp. Wisdom Distribution Service Corp. Philippine Seven Corp. Philippine Seven Corp.	Mister Donut Taiwan Corp., Ltd. Uni-President Superior Commissary Corp. Uni-President Cold-Chain Corp. Retail Support International Corp. President Collect Services Co., Ltd. Afternoon Tea Taiwan Co., Ltd. Ren Hui Holding Co., Ltd. Retail Support Taiwan Corp. President Logistics International Corp. President Logistics International Corp. President Logistics International Corp. Uni-President Logistics (BVI) Holdings Limited President Logistics International Corp. Vision Distribution Service Corp. Convenience Distribution Inc. Store Sites Holding, Inc.	Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan British Virgin Islands Taiwan Taiwan Taiwan Taiwan British Virgin Islands Taiwan Taiwan Philippines Philippines	Bakery retailer Fresh food manufacture Low-temperature logistics and warehousing Room-temperature logistics and warehousing Collection agent Operation of restaurants Professional investment Room-temperature logistics and warehousing Trucking Trucking Trucking Professional investment Trucking Publishing Industry Logistics and warehousing Professional investment	- $ - - - - - 60,374 15,300 44,975 5,425 23,850 87,994 18,850 60,000 25,421 27,535	- $ - - - - - 60,374 15,300 44,975 5,425 23,850 87,994 18,850 60,000 25,421 27,535	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 6,000,000 4,500,000 40,000	- - - - - - 100.00 51.00 49.00 6.00 25.00 100.00 20.00 60.00 100.00 40.00	- $ - - - - - 71,258 69,011 151,275 18,523 77,181 109,143 61,475 47,775 25,421 27,535	12,141 $ 18,515 297,252 165,263 61,241 136) ( 5,443 34,883 55,674 55,674 55,674 13,285 55,674 30,258) ( 8,891 966	- $ - - - - - 5,443 17,791 27,280 3,212 13,918 13,285 10,865 18,155) ( - -	Note 1 Subsidiary of a subsidiary Subsidiary of a subsidiary Subsidiary of a subsidiary Subsidiary of a subsidiary Subsidiary of a subsidiary Subsidiary of a subsidiary Subsidiary of a subsidiary Subsidiary of a subsidiary Subsidiary of a subsidiary Subsidiary of a subsidiary Subsidiary of a subsidiary Subsidiary of a subsidiary Subsidiary of a subsidiary Subsidiary of a subsidiary Note 1

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

Table 6  Page 3

Table 7

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

For the nine-month period ended September 30, 2018

Expressed in thousands of NTD (Except as otherwise indicated)

Investee in Mainland China	Main business activities	Paid-in capital	Investment method	Accumulated amount of remittance from Taiwan to Mainland China as of January1,2018	Amount remitted from Taiwan to Mainland China/ Amount remitted back to Taiwan for the nine-month period ended September 30,2018	Amount remitted from Taiwan to Mainland China/ Amount remitted back to Taiwan for the nine-month period ended September 30,2018	Accumulated amount of remittance from Taiwan to Mainland China as of September 30, 2018	Net income of investee for the nine-month period ended September 30, 2018	Ownership held by the Company (direct or indirect)	Investment income (loss) recognized by the Company for the nine- month period ended September 30,2018	Book value of investments in Mainland China as of September 30,2018	Accumulated amount of investment income remitted back to Taiwan as of September 30,2018	Footnote
					Remitted to Mainland China	Remitted back to Taiwan
Shanghai President Chain Store Corporation Trade Co., Ltd. President Cosmed Chain Store (Shen Zhen) Co., Ltd. President Chain Store (Shanghai) Ltd. Shanghai President Logistic Co., Ltd. Shanghai Cold Stone Ice Cream Corporation PCSC (Chengdu) Hypermarket Limited Shan Dong President Yinzuo Commercial Limited President (Shanghai) Health Product Trading Company Ltd. Zhejiang Uni-Champion Logistics Development Co., Ltd. Bejing Bokelai Customer Co. President Chain Store (Taizhou) Ltd. President Logistic ShanDong Co., Ltd. President Chain Store (Zhejiang) Ltd. Beauty Wonder (Zhejiang) Trading Co.,Ltd.	Trade of food and commodities Wholesale of merchandise Operation of chain stores Logistics and warehousing Sales of ice cream Retail hypermarket Supermarkets Sales of various health care products, cosmetics, and pharmaceuticals Logistics and warehouse Enterprise information consulting, network technology development and services Logistics and warehousing Logistics and warehousing Operation of chain stores Sales of cosmetics and daily items	271,062 $ 444,401 2,222,005 61,050 988,986 586,609 266,641 174,015 177,760 458 266,641 222,201 622,161 133,320	Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1	157,832 $ 287,463 2,358,895 61,050 999,359 542,623 124,492 85,135 173,691 - 266,641 222,201 269,136 -	- $ - - - - - - 88,880 - - - - 365,323 133,320	- $ - - - - - - - - - - - - -	157,832 $ 287,463 2,358,895 61,050 999,359 542,623 124,492 174,015 173,691 - 266,641 222,201 634,459 133,320	18 $ 1,018 105,949) ( 54,632 4,497) ( 5,589) ( 44,166 24,671) ( 25,482 - 13,937 2,901 80,243) ( 14,221) (	100.00 100.00 100.00 100.00 100.00 100.00 55.00 73.74 80.00 50.03 100.00 100.00 100.00 100.00	19 $ 1,018 102,792) ( 49,706 4,497) ( 5,920) ( 22,715 18,192) ( 23,024 - 13,928 3,165 80,119) ( 14,428) (	30,704 $ 68,571 119,981 391,522 47,266 70,133 199,190 32,139 163,197 17 317,794 196,168 459,977 119,355	- $ - - - - - - 56,542 13,860 - - - - -	Note 3 Note 3 Note 3 Note 3 Note 3 Note 3 Note 2 Note 3 Note 3 Note 3 Note 3 Note 3 Note 3 Note 3

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: These amounts are based solely on their unreviewed financial statements.

Companyname	Accumulated amount of remittance from Taiwan to Mainland China as of September 30,2018	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.	4,705,064 $ 174,015 90,581 52,603	52,603 $ 8,436,313 174,015 90,581	80,000 $ 24,814,357 467,065 616,837

Table 7  Page 1

AI assistant

PCSC — Interim / Quarterly Report 2018

52232_rns_2018-11-27_2ac0655f-9bce-484a-bb19-98cade30400a.pdf

PRESIDENT CHAIN STORE CORP. AND SUBSIDIARIES

PRESIDENT CHAIN STORE CORP. AND SUBSIDIARIES CONSOLIDATED FINANCIAL STATEMENTS AND REVIEW REPORT OF INDEPENDENT ACCOUNTANTS SEPTEMBER 30, 2018 AND 2017

CONTENTS

REVIEW REPORT OF FINANCIAL STATEMENTS

TRANSLATED FROM CHINESE

Introduction

Scope of Review

Basis for Qualified Conclusion

Qualified Conclusion

PRESIDENT CHAIN STORE CORP. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS

PRESIDENT CHAIN STORE CORP. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS

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

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

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

PRESIDENT CHAIN STORE CORP. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS

PRESIDENT CHAIN STORE CORP. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS

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

SEPTEMBER 30, 2018 AND 2017

1. HISTORY AND ORGANIZATION

3. APPLICATION OF NEW STANDARDS, AMENDMENTS AND INTERPRETATIONS

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

4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(1) Compliance statement

(2) Basis of preparation

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

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

(6) Accounts and notes receivable

(9) Revenue recognition

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

6. DETAILS OF SIGNIFICANT ACCOUNTS

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

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

(7) Property, plant and equipment

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

(8) Investment property

(9) Intangible assets

(10) Other non-current assets

(12) Short-term borrowings

(13) Other payables

(14) Other current liabilities

(16) Pensions

(17) Other non-current liabilities

(18) Share capital

(19) Capital surplus

(20) Retained earnings

(21) Other equity items

(22) Operating revenue

A. Disaggregation of revenue from contracts with customers

B. Contract liabilities

(24) Employee benefit expense

(25) Other income

(26) Other gains and losses

(27) Finance costs

(28) Income tax

A. Income tax expense

For the three-month period ended September 30, 2017

(30) Operating leases

Lessor

Lessee

(31) Supplemental cash flow information

7. RELATED PARTY TRANSACTIONS

(1) Parent and ultimate controlling party

(2) Names of related parties and relationship

(3)Significant related party transactions and balances

A. Operating revenue

B. Purchases

C. Receivables from related parties

D. Payables to related parties

8. PLEDGED ASSETS

10. SIGNIFICANT DISASTER LOSS

11. SIGNIFICANT EVENTS AFTER THE BALANCE SHEET DATE

12. OTHERS

(1) Capital management

(2) Financial instruments

A. Financial instruments by category

B. Risk management policies

C. Significant financial risks and degrees of financial risks

PCSC Interim / Quarterly Report 2018