PCSC — Interim / Quarterly Report 2019

Nov 22, 2019

PRESIDENT CHAIN STORE CORP. AND SUBSIDIARIES

CONSOLIDATED FINANCIAL STATEMENTS AND REVIEW REPORT OF INDEPENDENT ACCOUNTANTS MARCH 31, 2019 AND 2018

----------------------------------------------------------------------------------------------------------------------------- ------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 MARCH 31, 2019 AND 2018

CONTENTS

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 ~ 53 12 12 12 ~ 14 14 ~ 19 19 19 ~ 39 40 ~ 41 42 42 42 42 42 ~ 51 51 ~ 52 52 ~ 53

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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 March 31, 2019 and 2018, and the related consolidated statements of comprehensive income, of changes in equity and of cash flows for the three-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$43,359,143 thousand and NT$32,773,706 thousand, constituting 25% and 24% of the consolidated total assets, and total liabilities of NT$26,065,598 thousand and NT$19,999,115 thousand, constituting 20% and 27% of the consolidated total liabilities as at March 31, 2019 and 2018, respectively, and total comprehensive income of NT$609,145 thousand and NT$311,951 thousand, constituting 17% and 14% of the consolidated total comprehensive income for the three-month periods then ended.

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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 March 31, 2019 and 2018, and of its consolidated financial performance and its consolidated cash flows for the three-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.

Yi-Chang, Liang Chien-Hung, Chou

For and on behalf of PricewaterhouseCoopers, Taiwan April 29, 2019

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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 March 31, 2019 and 2018 are reviewed, not audited)

Assets	Notes	March 31, 2019 AMOUNT % $ 46,617,325 26 1,417,691 1 4,875,260 3 2,033,344 1 1,478 - 13,403,632 8 1,255,719 1 2,788,821 1 72,393,270 41 85,683 - 957,894 - 9,131,067 5 24,776,937 14 52,501,131 30 1,519,572 1 10,279,428 6 1,762,475 1 3,104,623 2 104,118,810 59 $ 176,512,080 100	December 31, 2018 AMOUNT % $ 48,530,648 38 844,225 1 5,264,573 4 1,535,507 1 1,139 - 15,121,657 12 1,340,225 1 3,004,894 2 75,642,868 59 85,683 - 845,345 1 9,000,580 7 25,292,763 20 - - 1,502,159 1 10,393,880 8 1,727,043 1 3,204,759 3 52,052,212 41 $ 127,695,080 100	March 31, 2018
				AMOUNT % $ 59,114,211 44 1,521,931 1 4,386,947 3 3,147,066 2 2,645 - 12,300,546 9 1,563,322 1 2,809,311 2 84,845,979 62 85,833 - 989,439 1 8,774,817 7 24,622,226 18 - - 1,514,876 1 10,560,417 8 1,625,226 1 3,155,438 2 51,328,272 38 $ 136,174,251 100
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 1470 Other current assets 11XX Total current assets Non-current assets 1510 Financial assets at fair value through profit or loss - non-current 1517 Financial assets at fair value through other comprehensive income - non-current 1550 Investments accounted for using equity method 1600 Property, plant and equipment, net 1755 Right-of-use assets 1760 Investment property, net 1780 Intangible assets 1840 Deferred income tax assets 1900 Other non-current assets 15XX Total non-current assets 1XXX Total assets	6(1) 6(2) 6(3) and 7 6(30) 6(4) 6(2) 6(5) 6(6) 6(7)(28) and 8 6(8) 6(10)(32) and 7 6(11) 6(30) 6(12) 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 March 31, 2019 and 2018 are reviewed, not audited)

Liabilities and Equity	Notes	March 31,2019 AMOUNT % $ 4,376,596 3 - - 3,022,466 2 2,290,148 1 19,590,525 11 2,555,538 2 23,395,381 13 2,168,380 1 11,057,525 6 3,210,993 2 71,667,552 41 233,767 - 692,547 - 5,462,572 3 41,986,388 24 4,726,054 3 4,174,013 2 57,275,341 32 128,942,893 73 10,396,223 6 45,954 - 12,293,442 7 398,859 - 14,972,771 9 307,257 - 38,414,506 22 9,154,681 5 47,569,187 27 $ 176,512,080 100	December 31,2018 March 31,2018 AMOUNT % AMOUNT % $ 7,237,785 6 $ 5,898,726 4 - - 299,991 - 2,843,189 2 3,912,917 3 1,866,610 2 1,762,995 1 20,673,579 16 18,171,249 14 2,475,104 2 2,345,983 2 27,954,181 22 22,273,380 17 1,801,229 1 2,673,886 2 - - - - 3,260,538 3 1,796,507 1 68,112,215 54 59,135,634 44 234,421 - 224,106 - 847,040 1 1,086,925 1 5,386,839 4 5,317,222 4 - - - - 4,732,549 4 4,573,913 3 4,356,989 3 4,098,367 3 15,557,838 12 15,300,533 11 83,670,053 66 74,436,167 55 10,396,223 8 10,396,223 7 45,059 - 44,411 - 12,293,442 10 9,191,733 7 398,859 - - - 12,064,862 9 33,991,497 25 53,605 - ( 994,476) ( 1 ) 35,252,050 27 52,629,388 38 8,772,977 7 9,108,696 7 44,025,027 34 61,738,084 45 $ 127,695,080 100 $ 136,174,251 100
Current liabilities 2100 Short-term borrowings 2110 Short-term notes and bills payable 2130 Contract liabilities - current 2150 Notes payable 2170 Accounts payable 2180 Accounts payable - related parties 2200 Other payables 2230 Current income tax liabilities 2280 Lease liabilities - current 2300 Other current liabilities 21XX Total current liabilities Non-current liabilities 2527 Contract liabilities - non-current 2540 Long-term borrowings 2570 Deferred income tax liabilities 2580 Lease liabilities - non-current 2640 Net defined benefit liability - non-current 2670 Other non-current liabilities 25XX Total non-current liabilities 2XXX Total liabilities Equity attributable to owners of the parent Share capital 3110 Share capital - common stock Capital surplus 3200 Capital surplus Retained earnings 3310 Legal reserve 3320 Special reserve 3350 Unappropriated retained earnings Other equity 3400 Other equity interest 31XX Equity attributable to owners of the parent 36XX Non-controlling interest 3XXX Total equity 3X2X Total liabilities and equity	6(14) and 8 6(24) 7 7 6(15) 6(30) 6(16) 6(24) 6(17) and 8 6(30) 6(18) 6(19) 6(20) 6(21) 6(22) 6(23)

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 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

Notes

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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

Other comprehensive income (loss) 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 that will not be reclassified to profit or loss 8361 Exchange differences from translation of foreign operations 8367 Unrealized loss on valuation of bond instruments at fair value through other comprehensive income 8370 Share of other comprehensive loss of associates and joint ventures accounted for using equity method, components of other comprehensive loss 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)

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)

				(UNAUDITED)
Notes For the three-month period ended March 31, 2018 Balance at January 1, 2018 Adjustments under new standards Adjusted beginning balance Profit for the period Other comprehensive income (loss) for the period 6(23) Total comprehensive income (loss) for the period Non-controlling interest Overdue unclaimed cash dividend transferred to capital surplus Balance at March 31, 2018 For the three-month period ended March 31, 2019 Balance at January 1, 2019 Profit for the period Other comprehensive income for the period 6(23) Total comprehensive income for the period Non-controlling interest Overdue unclaimed cash dividend transferred to capital surplus Adjustment of capital surplus due to associates’ adjustment of capital surplus Disposal of financial instruments designated at fair value through other comprehensive income of associates Balance at March 31, 2019				Equity attributable to own	ers of the parent			Total $ 50,614,262 ( 3,990) 50,610,272 2,537,621 ( 519,041) 2,018,580 - 536 $ 52,629,388 $ 35,252,050 2,907,863 253,652 3,161,515 - 562 333 46 $ 38,414,506	Non-controlling Interest Total equity $ 8,892,148 $ 59,506,410 ( 5,203) ( 9,193) 8,886,945 59,497,217 323,574 2,861,195 ( 106,666) ( 625,707) 216,908 2,235,488 4,843 4,843 - 536 $ 9,108,696 $ 61,738,084 $ 8,772,977 $ 44,025,027 351,779 3,259,642 24,758 278,410 376,537 3,538,052 5,167 5,167 - 562 - 333 - 46 $ 9,154,681 $ 47,569,187
	Share capital - common stock $ 10,396,223 - 10,396,223 - - - - - $ 10,396,223 $ 10,396,223 - - - - - - - $ 10,396,223	Capital surplus $ 43,875 - 43,875 - - - - 536 $ 44,411 $ 45,059 - - - - 562 333 - $ 45,954		Retained earnings Special reserve Unappropriated retained earnings $ - $ 31,381,290 - 25,463 - 31,406,753 - 2,537,621 - 47,123 - 2,584,744 - - - - $ - $ 33,991,497 $ 398,859 $ 12,064,862 - 2,907,863 - - - 2,907,863 - - - - - - - 46 $ 398,859 $ 14,972,771	Other equity interest		Unrealized gain or loss on available- for-sale financial assets $ 507,449 ( 507,449 ) - - - - - - $ - $ - - - - - - - - $ -
			Legal reserve $ 9,191,733 - 9,191,733 - - - - - $ 9,191,733 $ 12,293,442 - - - - - - - $ 12,293,442	Special reserve $ - - - - - - - - $ - $ 398,859 - - - - - - - $ 398,859	Exchange differences from translation of foreign operations ( $ 906,308) - ( 906,308) - ( 564,662) ( 564,662) - - ( $ 1,470,970) ( $ 279,829) - 142,877 142,877 - - - - ($ 136,952)	Unrealized gain or loss on valuation of financial assets at fair value through other comprehensive Income $ - 477,996 477,996 - ( 1,502) ( 1,502) - - $ 476,494 $ 333,434 - 110,775 110,775 - - - - $ 444,209

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

President: Huang, Jui-Tien

Chairman: Lo, Chih-Hsien

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)

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

For the three -month periods ended March 31 Notes 2019 2018 $ 3,901,323 $ 3,960,556 6(2) ( 1,454 ) 3,926 12(2) 1,435 3,122 6(7)(8) 4,416,832 1,476,065 146,650 145,774 6(10) 4,256 4,239 6(29) 306,794 46,543 6(6) ( 128,198 ) ( 117,216 ) 6(28) 3,472 7,784 6(27) ( 196,690 ) ( 147,170 ) ( 572,012 ) 34,168 387,878 478,833 ( 507,676 ) ( 415,365 ) 1,718,025 1,086,576 ( 185,934 ) ( 146,147 ) 216,073 164,236 179,277 ( 22,441 ) ( 1,002,620 ) ( 653,731 ) 423,538 ( 303,516 ) ( 2,884,097 ) ( 4,119,607 ) ( 107,394 ) ( 284,244 ) ( 654 ) ( 121,905 ) ( 6,495 ) ( 887 ) 6,112,329 1,079,593 206,529 160,760 ( 238,423 ) ( 2,762,372 ) ( 35,658 ) ( 46,588 ) 6,044,777 ( 1,568,607 )

(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 Proceeds from disposal of property, plant and equipment Guarantee deposits (paid) received Acquisition of intangible assets Decrease (increase) in other non-current assets Net cash (used in) provided by investing activities CASH FLOWS FROM FINANCING ACTIVITIES (Decrease) increase in short-term borrowings Increase in short-term notes and bills payable Proceeds from long-term borrowings Repayment of long-term borrowings Payments of lease liability Guarantee deposits received Decrease in other non-current liabilities Change in non-controlling interests Net cash (used in) provided by financing activities Effect of foreign exchange rate changes on cash and cash equivalents (Decrease) increase 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.

President: Huang, Jui-Tien

Chairman: Lo, Chih-Hsien

Accounting Manager: Kuo, Ying-Chih

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

MARCH 31, 2019 AND 2018

(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.

2. 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 April 29, 2019.

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 2019 are as follows:

	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’

• (a) 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.

• (b) The Group has elected to apply IFRS 16 by not restating the comparative information (referred herein as the ‘modified retrospective approach’) when applying “IFRSs” effective in 2019 as endorsed by the FSC. Accordingly, the Group increased ‘right-of-use asset’ by $52,750,102, increased ‘lease liability’ by $52,938,613, decreased ‘prepayments’ by $270,440, decreased ‘property, plant and equipment’ by $396,233, decreased ‘long-term prepaid rent’ by $84,482 (recognized as ‘other non-current assets’), and decreased ‘other payables’ by $939,666 with respect to the lease contracts of lessees on January 1, 2019.

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

• i. Reassessment as to whether a contract is, or contains, a lease is not required, instead, the application of IFRS 16 depends on whether or not the contracts were previously identified as leases applying IAS 17 and IFRIC 4.

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

• iii. The accounting for operating leases whose period will end before December 31, 2019 as short-term leases and accordingly, rent expense of $60,023 was recognized in the first quarter of 2019.

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

• (d) The Group calculated the present value of lease liabilities by using the weighted average incremental borrowing interest rate range from 0.88% to 8.54%.

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

Operating lease commitments disclosed by applying IAS 17 as at December 31, 2018 Add: Lease payable recognized under finance lease by applying IAS 17 as at December 31, 2018 Adjustments relating to changes in the index or rate affecting variable lease payments Less: Short-term leases Contracts reassessed as service agreements Leases not yet commenced to which the lessee is committed Total lease contracts amount recognized as lease liabilities by applying IFRS 16 on January 1, 2019 Incremental borrowing interest rate at the date of initial application Lease liabilities recognized as at January 1, 2019 by applying IFRS 16

$ 69,815,079 6,962 496,223 ( 109,383) ( 132,797) ( 14,328,676) $ 55,747,408 0.88%~8.54% $ 52,938,613

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

None.

• (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 IAS 1 and IAS 8, ‘Disclosure Initiative-Definition of Material’ 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 January 1, 2020 To be determined by International Accounting Standards Board January 1, 2021

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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, 2018. 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, 2018.

• (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.

(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, 2018.

• (b) The details of the individual financial statements of the Company’s subsidiaries reviewed or unreviewed by the independent accountants are summarized below:

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Name of the subsidiaries	March 31,2019	March 31,2018
Retail Support International Corp. 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. President Chain Store (Hong Kong) Holdings Limited President Pharmaceutical Corp. Uni-Wonder Corp. Uni-President Superior Commissary Corp. Uni-President Department Store Corp. Other subsidiaries	Financial statements were reviewed 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 Financial statements were unreviewed 〃 〃	Financial statements were reviewed 〃 〃 〃 〃 〃 〃 〃 〃 〃 Financial statements were unreviewed Financial statements were reviewed 〃 Financial statements were unreviewed

• (c) The financial statements of the subsidiary, Philippine Seven Corp., for the year ended December 31, 2018 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 The Company 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. Capital Inventory Services Corp. President Yilan Art and Culture Corp. Cold Stone Creamery Taiwan Ltd. President Chain Store Corporation Insurance Brokers Co., Ltd. 21 Century Enterprise Co., Ltd. President Being 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 Enterprise management consultancy Art and cultural exhibition Sales of ice cream Life and property insurance Restaurant and sales of goods Sports and entertainment business	Ownership (%)	Ownership (%)	March 31,2018 100.00 92.20 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00	Description
			March 31,2019 100.00 92.20 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00	December 31, 2018 100.00 92.20 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

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Name of investor The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company President Chain Store (BVI) Holdings Ltd. President Chain Store (BVI) Holdings Ltd. PCSC (China) Drugstore Limited Wisdom Distribution Service Corp. Wisdom Distribution Service Corp. Uni-President Cold- Chain Corp. Uni-President Cold- Chain Corp. Retail Support International Corp.	Name of subsidiary Uni-President Oven Bakery Corp. President Chain Store Tokyo Marketing Corp. ICASH Corp. Uni-President Superior Commissary Corp. Q-ware Systems & Services Corp. President Information Corp. Mech-President Corp. President Pharmaceutical Corp. President Collect Services Co., Ltd. Uni-President Department Store Corp. President Transnet Corp. Uni-President Cold-Chain Corp. Uni-Wonder Corp. (Formerly Known as “President Starbucks Coffee Corp.”) Duskin Serve Taiwan Co. Afternoon Tea Taiwan Co., Ltd. Books.com. Co., Ltd. Retail Support International Corp. President Chain Store (Labuan) Holdings Ltd. President Chain Store (Hong Kong) Holdings Limited President Cosmed Chain Store (Shen Zhen) Co., Ltd. President Logistics International Corp. Vision Distribution Service Corp. President Logistics International Corp. Uni-President Logistics (BVI) Holdings Limited Retail Support Taiwan Corp.	Main business activities 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 Room-temperature logistics and warehousing	Ownership (%)	Ownership (%)	March 31,2018 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 51.00	Description
			March 31,2019 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 - 50.03 25.00 100.00 100.00 100.00 20.00 - 25.00 100.00 51.00	December 31, 2018 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 51.00
						(a) (b) (c)

~16~

Name of investor Retail Support International Corp. Retail Support Taiwan Corp. President Logistics International Corp. 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 President Chain Store (Hong Kong) Holdings Limited	Name of subsidiary President Logistics International Corp. President Logistics International Corp. Chieh-Shuen Logistics International Corp. 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. President Chain Store (Zhejiang) Ltd.	Main business activities Trucking Trucking Trucking 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 Operation of chain store	Ownership (%)	Ownership (%)	March 31,2018 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 40.00 100.00 100.00 100.00 100.00	Description
			March 31,2019 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, 2018 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 40.00 100.00 100.00 100.00 100.00
						(d)

~17~

Name of investor 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 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 Sales of cosmetics and medicine Logistics and warehousing Logistics and warehousing Trade of food and commodities Logistics and warehousing Professional investment Supermarkets	Ownership (%)	Ownership (%)	March 31,2018 - 50.00 100.00 100.00 50.00 100.00 15.00	Description
			March 31,2019 100.00 50.00 100.00 100.00 50.00 100.00 15.00	December 31, 2018 100.00 50.00 100.00 100.00 50.00 100.00 15.00
						(e)

  - (a) The Company liquidated the subsidiary, Afternoon Tea Taiwan Corp., Limited, and the process of cancellation of registration has been completed in February 2019.

  - (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, Vision Distribution Service Corp., and the process of cancellation of registration has been completed in February 2019.

  - (d) The Company liquidated the subsidiary, PCSC (Chengdu) Hypermarket Limited, and the process of cancellation of registration has been completed in March 2019.

  - (e) 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) Leasing arrangements (lessor) operating leases

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

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

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

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

~18~

Lease payments are comprised of the following:

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

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

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

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

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

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

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

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

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

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

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, 2018.

6. DETAILS OF SIGNIFICANT ACCOUNTS

• (1) Cash and cash equivalents

AILS OF SIGNIFICANT ACCOUNTS Cash and cash equivalents
	March 31, 2019	December 31, 2018	March 31, 2018
Cash on hand and petty cash	$ 1,553,036	$ 1,958,556	$ 1,150,966
Checking accounts and demand		12,560,158	12,395,613
deposits	11,431,429
Cash equivalents
Time deposits	26,329,892	25,867,905	37,358,899
Short-term financial instruments	7,302,968	8,144,029	8,208,733
	$ 46,617,325	$ 48,530,648	$ 59,114,211

• 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

Current items: Beneficiary certificates Valuation adjustment Non-current items: Unlisted stocks Valuation adjustment	March 31, 2019 $ 1,417,530 161 $ 1,417,691 $ 275,403 ( 189,720) ( $ 85,683	December 31,2018 $ 844,170 55 $ 844,225 $ 275,403 189,720) ( $ 85,683	March 31,2018
			$ 1,520,295 1,636 $ 1,521,931 $ 275,554 189,721) $ 85,833

• A. The Group recognized net profit or loss of $1,454 and ($2,609) in relation to financial assets at fair value through profit or loss for the three-month periods ended March 31, 2019 and 2018, respectively.

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

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

• (3) Accounts receivable

Accounts receivable
	March 31, 2019	December 31, 2018	March 31, 2018
Accounts receivable	$ 4,926,942	$ 5,320,037	$ 4,435,645
Less: Allowance for doubtful accounts	(51,682)	(55,464)		(48,698)
	$ 4,875,260	$ 5,264,573	$ 4,386,947
A. The ageing analysis of accounts receivable that were past due but not impaired is as follows: March 31, 2019 December 31, 2018 March 31, 2018 Not past due $ 4,794,181 $ 5,144,165 $ 4,282,527 Up to 90 days 120,574 149,698 131,753 91 to 180 days 11,927 18,175 19,388 181 to 365 days 217 2,917 1,977 Over 365 days 43 5,082 - $ 4,926,942 $ 5,320,037 $ 4,435,645
	March 31, 2019	December 31, 2018		March 31, 2018
	$ 4,794,181	$ 5,144,165		$ 4,282,527
	120,574	149,698		131,753
	11,927	18,175		19,388
	217	2,917		1,977
	43	5,082		-
	$ 4,926,942	$ 5,320,037		$ 4,435,645

• 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.

• B. Accounts receivable of the Group pledging to others is provided in Note 8.

• C. As at March 31, 2019, December 31, 2018 and March 31, 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 Group’s accounts receivable were $4,875,260, $5,264,573, and $4,386,947, respectively.

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

~20~

(4) Inventories

nventories
Raw materials and work in process Merchandise and finished goods Raw materials and work in process Merchandise and finished goods Raw materials and work in process Merchandise and finished goods	March 31, 2019
	Cost Allowance for valuation loss $ 65,784 $ - 13,439,491 ( 101,643) $ 13,505,275 ($ 101,643) December 31, 2018		Book value $ 65,784 13,337,848 $ 13,403,632
	Cost Allowance for valuation loss $ 65,446 $ - 15,151,897 ( 95,686) $ 15,217,343 ($ 95,686) March 31, 2018		Book value $ 65,446 15,056,211 $ 15,121,657
	Cost $ 73,518 12,322,436 ( $ 12,395,954	Allowance for valuation loss $ - 95,408) $ 95,408)	Book value $ 73,518 12,227,028 $ 12,300,546

The cost of inventories recognized as expenses for the period:

Cost of goods sold Loss on decline in market value Gain on reversal of valuation of inventories Spoilage Others	For the three-month period ended March 31, 2019 For the three-month period ended March 31, 2018 $ 39,508,537 $ 37,981,884 5,957 - - ( 40,383) 495,878 447,809 69,097 57,196 $ 40,079,469 $ 38,446,506

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 period ended March 31, 2018.

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

Debt instruments Government bonds Valuation adjustment	March 31, 2019 $ 199,975 388 200,363	December 31, 2018 $ 199,948 783 200,731	March 31, 2018 $ 199,866 1,760 201,626

~21~

Equity instruments Listed stocks Unlisted stocks Valuation adjustment	March 31, 2019 $ 265,606 4,348 269,954 487,577 757,531 $ 957,894	December 31, 2018 $ 265,606 4,348 269,954 374,660 644,614 $ 845,345	March 31, 2018 $ 265,606 4,348 269,954 517,859 787,813 $ 989,439

• 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 $757,531, $644,614, and $787,813 as at March 31, 2019, December 31, 2018 and March 31, 2018, respectively.

• 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:

Equity instruments at fair value through other comprehensive income Fair value change recognized in other comprehensive income Debt instruments at fair value through other comprehensive income Fair value change recognized in other comprehensive income Interest income recognized in profit or loss	For the three-month period ended March 31, 2019 $ 112,917 ($ 395) $ 590	For the three-month period ended March 31,2018
		($ 650) ($ 560) $ 590

• C. As at March 31, 2019, December 31, 2018 and March 31, 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 $957,894, $845,345, and $989,439, respectively.

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

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

~22~

(6) Investments accounted for using the equity method

Associates PresiCarre Corp. President Fair Development Corp. Uni-President Development Corp. President International Development Corp. Tung Ho Development Corp. Others Joint ventures Mister Dount Taiwan Corp., Ltd.	March 31, 2019 $ 5,617,205 1,995,004 760,430 469,688 112,705 62,855 9,017,927 $ 113,140 $ 9,131,067	December 31, 2018 $ 5,518,380 1,984,125 753,904 461,328 114,755 60,209 8,892,701 $ 107,879 $ 9,000,580	March 31, 2018
			$ 5,289,180 1,962,610 751,964 476,135 121,136 69,160 8,670,185 $ 104,632 $ 8,774,817

• 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:
Total comprehensive income	For the three-month period ended March 31, 2019 $ 124,847	For the three-month period ended March 31, 2018
		$ 110,000

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

below:
Total comprehensive income	For the three-month period ended March 31, 2019 $ 5,261	For the three-month period ended March 31, 2018
		$ 7,400

• 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.

~23~

(7) Property, plant and equipment

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

At January 1, 2019 Cost Accumulated depreciation and impairment 2019 Opening net book amount as of January 1 Effect of adoption of IFRS 16 Adjusted beginning balance Additions Disposals Reclassifications Depreciation charge Net exchange differences Closing net book amount as of March 31 At March 31, 2019 Cost Accumulated depreciation and impairment	Land Buildings $ 2,273,117 $ 4,723,111 ( 16,367) ( 1,980,005 ) $ 2,256,750 $ 2,743,106 $ 2,256,750 $ 2,743,106 - - $ 2,256,750 $ 2,743,106 - 46,652 - - ( 18,757) 579 - ( 50,181 ) 81 4,282 $ 2,238,074 $ 2,744,438 $ 2,254,440 $ 4,773,264 ( 16,366) ( 2,028,826 ) $ 2,238,074 $ 2,744,438	Transportation equipment $ 6,612,878 ( 4,345,461) $ 2,267,417 $ 2,267,417 - $ 2,267,417 18,366 ( 7,781) 48,716 ( 129,994) 2,478 $ 2,199,202 $ 6,626,107 ( 4,426,905) $ 2,199,202	Office equipment $ 21,159,733 ( 14,386,751) $ 6,772,982 $ 6,772,982 - $ 6,772,982 506,924 ( 26,842) 1,587 ( 541,770) 19,107 $ 6,731,988 $ 21,293,950 ( 14,561,962) $ 6,731,988	Leasehold improvements Others Total $ 18,345,784 $ 9,627,520 $ 62,742,143 ( 11,375,011) (5,345,785) ( 37,449,380 ) $ 6,970,773 $ 4,281,735 $ 25,292,763 $ 6,970,773 $ 4,281,735 $ 25,292,763 ( 387,770) ( 8,463) ( 396,233 ) $ 6,583,003 $ 4,273,272 $ 24,896,530 463,933 320,184 1,356,059 ( 8,728) 9,184 ( 34,167 ) 63,433 ( 74,029) 21,529 ( 452,376) ( 322,816) ( 1,497,137 ) 9,133 ( 958) 34,123 $ 6,658,398 $ 4,204,837 $ 24,776,937 $ 18,049,100 $ 9,858,057 $ 62,854,918 ( 11,390,702) (5,653,220) ( 38,077,981) $ 6,658,398 $ 4,204,837 $ 24,776,937

~24~

At January 1, 2018 Cost Accumulated depreciation and impairment ( 2018 Opening net book amount as of January 1 Additions Disposals Reclassifications Depreciation charge Net exchange differences ( Closing net book amount as of March 31 At March 31,2018 Cost Accumulated depreciation and impairment (	Land $ 2,273,584 16,366) $ 2,257,218 $ 2,257,218 - - - - 1,538) $ 2,255,680 $ 2,272,046 16,366) $ 2,255,680	Buildings $ 4,296,089 ( 1,800,537 ) ( $ 2,495,552 $ 2,495,552 6,482 - ( ( 240) ( 48,092 ) ( 291 ( $ 2,453,993 $ 4,290,907 ( 1,836,914 ) ( $ 2,453,993	Transportation equipment Office equipment Leasehold improvements Others Total $ 6,343,845 $ 20,180,016 $ 17,259,683 $ 9,456,005 $ 59,809,222 4,046,383 ) ( 13,384,193) ( 10,568,380) (5,011,021) ( 34,826,880 ) $ 2,297,462 $ 6,795,823 $ 6,691,303 $ 4,444,984 $ 24,982,342 $ 2,297,462 $ 6,795,823 $ 6,691,303 $ 4,444,984 $ 24,982,342 7,263 540,522 431,377 387,864 1,373,508 5,592 ) ( 10,618 ) ( 12,033 ) ( 3,598) ( 31,841) 63,408 33,211 1,372 ( 89,201) 8,550 139,268 ) ( 559,738 ) ( 419,549 ) ( 309,418) ( 1,476,065) 5,597 ) 8,329 ( 84,013) ( 151,740) ( 234,268) $ 2,217,676 $ 6,807,529 $ 6,608,457 $ 4,278,891 $ 24,622,226 $ 6,378,570 $ 20,463,001 $ 17,272,073 $ 9,338,398 $ 60,014,995 4,160,894 ) ( 13,655,472) ( 10,663,616) ( 5,059,507) ( 35,392,769) $ 2,217,676 $ 6,807,529 $ 6,608,457 $ 4,278,891 $ 24,622,226	Total
		(

B. Information on reversal of impairment loss on property, plant and equipment is provided in Note 6(13).

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

~25~

－ (8) Leasing arrangements lessee

Effective 2019

• A. The Group leases various assets including land, buildings, machinery and equipment, etc.. Rental contracts are typically made for periods of 1 to 30 years. Lease terms are negotiated on an individual basis and contain a wide range of different terms and conditions. The lease agreements do not impose covenants, but leased assets may not be used as security for borrowing purposes.

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

The carrying amount of right-of-use assets	and the depreciation charge are	as follows:
Land Buildings Machinery and equipment Other equipment	March31,2019 Carryingamount $ 759,016 51,227,078 90,993 424,044 $ 52,501,131	For the three-month period ended March31,2019
		Depreciation charge
		$ 29,269 2,850,430 12,169 27,827
		$ 2,919,695

• C. For the three-month period ended March 31, 2019, the additions to right-of-use assets were $2,693,894.

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

Items affecting profit or loss Interest expense on lease liabilities Expense on short-term lease contracts Expense on leases of low-value assets Expense on variable lease payments Gain or loss on sale and leaseback transactions	For the three-month period ended March31,2019
	$ 271,393 60,908 15,328 110,240 107,694

• E. For the three-month period ended March 31, 2019, the Group’s total cash outflow for leases was $3,420,321.

• F. Variable lease payments

• (a) Some of the Group’s lease contracts contain variable lease payment terms that are linked to sales generated from a store or department store counter. For the above-mentioned stores, up to 3.26% of lease payments are on the basis of variable payment terms and are accrued based on the sales amount. Variable payment terms are used for a variety of reasons. Various lease payments that depend on sales are recognized in profit or loss in the period in which the event or condition that triggers those payments occurs.

• (b) A 1% increase in the aggregate sales amount of all stores with such variable lease contracts would increase total lease payments by approximately $1,102.

• G. The Group’s leases not yet commenced to which the lessee is committed are business premises for the lessees, and the lease liabilities undiscounted amount for the three-month period ended March 31, 2019 is $14,559,917.

~26~

(9) Leasing arrangements – lessor

Effective 2019

• A. The Group leases various assets including land, buildings, machinery and equipment, etc.. Rental contracts are typically made for periods of 1 and 16 years. Lease terms are negotiated on an individual basis and contain a wide range of different terms and conditions.

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

nformation on profit or loss in relation to lease	contracts is as follows:
Rental revenue Rental revenue from variable lease payments	For the three-month period ended March 31, 2019	For the three-month period ended March 31, 2018
	$ 367,922 $ 287,673	$ 350,082
		$ 314,035

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

2019 2020 2021 2022 2023 2024 After 2025 Total	March31,2019
	$ 367,922 706,035 392,304 156,089 91,287 49,005 21,259
	$ 1,783,901

(10) Investment property

2024 After 2025 Total Investment property		$		49,005 21,259 1,783,901
2019 January 1, 2019 Depreciation charge Reclassifications March 31, 2019 2018 January 1, 2018 Depreciation charge March 31, 2018	Land	Buildings $ 442,621 ( 4,256) 2,912 $ 441,277 Buildings $ 459,577 ( 4,239) $ 455,338		Total $ 1,502,159 ( 4,256) 21,669 $ 1,519,572 Total $ 1,519,115 4,239) $ 1,514,876
	$ 1,059,538 - 18,757 $ 1,078,295 Land
		(	(
	$ 1,059,538 - $ 1,059,538

The fair value of the investment property held by the Group ranged from $4,026,774 to $4,099,402 at March 31, 2019, December 31, 2018, and March 31, 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.

~27~

(11) Intangible assets

Intangible assets
At January 1, 2019 Cost Accumulated amortization and impairment ( 2019 Opening net book amount as of January 1 Additions Reclassifications Amortization expenses ( Net exchange differences Closing net book amount as of March 31 At March 31, 2019 Cost Accumulated amortization and impairment ( 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 March 31 At Maarch 31, 2018 Cost Accumulated amortization and impairment (	Software $ 1,648,652 1,164,405 ) $ 484,247 $ 484,247 4,259 - 63,889 ) 2,655 $ 427,272 $ 1,657,709 1,230,437) $ 427,272 Software $ 1,568,017 975,791 ) $ 592,226 $ 592,226 21,824 - 61,963 ) 887 $ 552,974 $ 1,536,534 983,380 ) $ 552,974		Goodwill $ 2,204,284 - ( $ 2,204,284 $ 2,204,284 - - - ( 194 $ 2,204,478 $ 2,204,478 - ( $ 2,204,478 Goodwill $ 2,202,519 - $ 2,202,519 $ 2,202,519 - - - ( 1,211 ) $ 2,201,308 $ 2,201,308 - ( $ 2,201,308	License agreement and customer list $ 7,524,890 194,160) $ 7,330,730 $ 7,330,730 - - 48,540 ) - $ 7,282,190 $ 7,524,890 242,700) $ 7,282,190 License agreement and customer list $ 7,524,890 - $ 7,524,890 $ 7,524,890 - - 48,540 ) - $ 7,476,350 $ 7,524,890 48,540) $ 7,476,350	( ( (	Others $ 469,957 95,338) ( $ 374,619 $ 374,619 - 1,111 ) ( 10,163 ) ( 2,143 $ 365,488 $ 468,859 103,371) ( $ 365,488 Others $ 405,998 68,920) ( $ 337,078 $ 337,078 - 567 7,846) ( 14) ( $ 329,785 $ 401,130 71,345) ( $ 329,785	Total $ 11,847,783 1,453,903) $ 10,393,880 $ 10,393,880 4,259 1,111 ) 122,592 ) 4,992 $ 10,279,428 $ 11,855,936 1,576,508) $ 10,279,428 Total $ 11,701,424 1,044,711) $ 10,656,713 $ 10,656,713 21,824 567 118,349 ) 338) $ 10,560,417 $ 11,663,682 1,103,265) $ 10,560,417
		(			( ( ( ( (

Amortization expenses on intangible assets are recognized as operating expenses.

~28~

(12) Other non-current assets

Other non-current assets
Guarantee deposits paid Others	March 31, 2019 $ 2,796,768 307,855 $ 3,104,623	December 31, 2018 $ 2,766,913 437,846 $ 3,204,759	March 31, 2018
			$ 2,639,129 516,309 $ 3,155,438

(13) Impairment of non-financial assets

• A. There were no impairment loss nor reversal of impairment loss recognized for the three-month periods ended March 31, 2019 and 2018.

• 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.

(14) Short-term borrowings

Short-term borrowings
Type of borrowings Bank borrowings Credit loan Type of borrowings Bank borrowings Credit loan Type of borrowings Bank borrowings Credit loan	March 31, 2019 $ 4,376,596 December 31, 2018 $ 7,237,785 March 31, 2018 $ 5,898,726	Interest rate range 0.65%~6.00% Interest rate range 0.65%~7.00% Interest rate range 0.71%~4.35%	Collateral
			None Collateral
			None Collateral
			None

There was no capitalization of borrowing costs for the three-month periods ended March 31, 2019 and 2018. Relevant interest expense on borrowings is recognized as “finance costs”.

(15) Other payables

Store collections Wages, salaries and bonus payable Sales receipt on behalf of others Incentive bonus payable to franchisees Employees’ compensation and remuneration for directors and supervisors Payables for acquisition of property, plant and equipment Payables for labor and health insurance Rent payable Others	March 31, 2019 $ 12,419,956 3,586,976 936,656 772,471 536,858 519,701 240,713 57,645 4,324,405 $ 23,395,381	December 31, 2018 $ 12,750,758 5,033,232 1,176,154 1,047,674 879,671 914,557 238,255 848,049 5,065,831 $ 27,954,181	March 31, 2018 $ 10,108,950 3,057,090 951,825 994,581 1,387,488 452,855 230,186 809,401 4,281,004 $ 22,273,380

~29~

(16) Other current liabilities

(17)

March 31, 2019 December 31, 2018 March 31, 2018 Advance receipts for gift certificates $ 1,308,768 $ 1,338,984 $ - Advance receipts of deposits in icash cards 1,230,798 1,199,455 1,126,542 Current portion of long-term liabilities 393,711 335,860 285,197 Others 277,716 386,239 384,768 $ 3,210,993 $ 3,260,538 $ 1,796,507 Long-term borrowings Type of borrowings Interest rate range Collateral March 31, 2019 Long-term bank borrowings Credit loan 0.79%~6.776% None $ 642,396 Secured borrowings 1.73%~1.96% Transportation equipment 443,862 1,086,258 Less: Current portion ( 393,711) $ 692,547 Type of borrowings Interest rate range Collateral December 31, 2018 Long-term bank borrowings Credit loan 0.80%~6.298% None $ 741,157 Secured borrowings 1.75%~1.96% Transportation equipment 441,743 1,182,900 Less: Current portion ( 335,860) $ 847,040 Type of borrowings Interest rate range Collateral March 31, 2018 Long-term bank borrowings Credit loan 0.85%~3.643% None $ 997,064 Secured borrowings 1.77%~2.24% Property, plant and equipment 375,058 1,372,122 Less: Current portion ( 285,197) $ 1,086,925

There was no capitalization of borrowing costs for the three-month periods ended March 31, 2019 and 2018. Relevant interest expense on borrowings is recognized as “finance costs”.

~30~

(18) 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 $33,801, and $39,143 for the three-month periods ended March 31, 2019 and 2018, 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 three-month periods ended March 31, 2019 and 2018 was 14%~20% and 14%~25%, 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 periods ended March 31, 2019 and 2018 were $236,308, and $226,103, respectively.

(19) Other non-current liabilities

Other non-current liabilities
Guarantee deposit received Decommissioning liability Others	March 31, 2019 $ 3,419,854 462,148 292,011 $ 4,174,013	December 31, 2018 $ 3,413,265 421,966 521,758 $ 4,356,989	March 31, 2018
			$ 3,384,281 399,620 314,466 $ 4,098,367

(20) Share capital

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

~31~

(21) 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.

• (22) 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 2018 and 2017 were resolved by the shareholders on February 27, 2019 and June 12, 2018, respectively, as follows:

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

• As of April 29, 2019, the distribution of dividends for 2018 has not been resolved during the stockholders’ meeting.

• E. See Note 6(26) for information on employees’ compensation and directors’ and supervisors’ remuneration.

~32~

(23) Other equity items

For the three-month period ended March 31, 2019

At January 1, 2019 Revaluation: –Group –Associates Revaluation-tax Currency translation differences: –Group –Associates At March 31, 2019 At January 1, 2018 Adjustments under new standards Adjusted beginning balance Revaluation: –Group –Associates Revaluation-tax Currency translation differences: –Group –Associates At March 31, 2018	Exchange differences from translation of foreign operations	Exchange differences from translation of foreign operations	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 valuation of financial assets at fair value through other comprehensive income	Total
		For the
	Exchange differences from translation of foreign operations ($ 906,308) - ( 906,308) - - - ( 564,616) ( 46) ($ 1,470,970)		Unrealized gains/(losses) on valuation of financial assets at fair value through other comprehensive income $ - 477,996 477,996 ( 1,210) 220 ( 512) - - $ 476,494			Unrealized gains/(losses) on available- for-sale financial assets Total $ 507,449 ($ 398,859) ( 507,449) ( 29,453) - ( 428,312) - ( 1,210) - 220 - ( 512) - ( 564,616) - ( 46) $ - ($ 994,476)

~33~

(24) Operating revenue

For the three-month period For the three-month period ended March 31, 2019 ended March 31, 2018 Revenue from contracts with customers $ 61,085,396 $ 58,947,745

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 March 31, 2019 Total segment revenue Inter-segment revenue ( Revenue from external customer contracts Timing of revenue recognition –At a point in time –Over time For the three-month period ended March 31, 2018 Total segment revenue Inter-segment revenue ( Revenue from external customer contracts Timing of revenue recognition –At a point in time –Over time	Convenience stores $ 37,928,275 153,656) $ 37,774,619 $ 37,652,384 122,235 $ 37,774,619 Convenience stores $ 37,154,144 164,273) $ 36,989,871 $ 36,865,634 124,237 $ 36,989,871	Retail business group $ 18,367,827 ( 564,124) ( $ 17,803,703 $ 14,930,531 2,873,172 $ 17,803,703 Retail business group $ 17,244,823 ( 597,690) $ 16,647,133 $ 13,765,189 2,881,944 $ 16,647,133	Logistics business group $ 3,750,790 3,216,198) ( $ 534,592 $ 481,624 52,968 $ 534,592 Logistics business group $ 3,650,418 ( 3,178,248) $ 472,170 $ 418,153 54,017 $ 472,170	Others $ 6,641,539 1,669,057) ( $ 4,972,482 $ 4,756,022 216,460 $ 4,972,482 Others $ 6,438,162 ( 1,599,591) $ 4,838,571 $ 4,636,992 201,579 $ 4,838,571	Total $ 66,688,431 5,603,035) $ 61,085,396 $ 57,820,561 3,264,835 $ 61,085,396 Total $ 64,487,547 ( 5,539,802)
					$ 58,947,745 $ 55,685,968 3,261,777 $ 58,947,745

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	March 31, 2019 $ 1,346,265 886,354 333,635 327,892 362,087 $ 3,256,233	December 31, 2018 $ 1,392,390 764,782 230,812 344,970 344,656 $ 3,077,610	March 31, 2018 $ 2,193,524 1,215,948 225,547 315,176 186,828 $ 4,137,023

~34~

Contract liabilities- current Contract liabilities- non-current	March 31, 2019 $ 3,022,466 233,767 $ 3,256,233	December 31, 2018 $ 2,843,189 234,421 $ 3,077,610	March 31, 2018 $ 3,912,917 224,106
			$ 4,137,023

(b) Revenues recognized that were included in the contract liabilities balance at the beginning was $1,385,982 and $722,737 for the three-month period ended March 31, 2018.

(25) Expenses by nature

Expenses by nature
Cost of goods sold Employee benefit expense Incentive bonuses for franchisees Depreciation and amortization Utilities expense Operating lease payments Other costs and expenses Total operating costs and operating expenses		For the three-month period ended March 31, 2019 $ 35,703,795 6,404,697 5,126,513 4,563,482 986,911 186,476 4,910,065 $ 57,881,939	For the three-month period ended March 31, 2018
			$ 34,219,005 6,355,415 5,025,623 1,621,839 875,880 3,009,883 4,504,302 $ 55,611,947

(26) Employee benefit expense

Wages and salaries Labor and health insurance fees Pension costs Other personnel expenses	For the three-month period ended March 31, 2019 $ 5,273,841 520,799 270,109 339,948 $ 6,404,697	For the three-month period ended March 31, 2018 $ 5,272,559 483,132 265,246 334,478 $ 6,355,415

• 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 March 31, 2019 and 2018, employees’ compensation was accrued at $150,828 and $149,600, respectively; while directors’ and supervisors’ remuneration was accrued at $50,391 and $49,980, 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 three-month period ended March 31, 2019, respectively.

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

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

~35~

(27) Other income

Grants income Interest income Rental revenue Others	For the three-month period ended March 31, 2019 $ 153,579 196,690 73,061 466,532 $ 889,862	For the three-month period ended March 31, 2018 $ 173,985 147,170 36,047 178,914 $ 536,116

(28) Other gains and losses

Gain on disposal of investments (Note 6(6)) Loss on disposal of property, plant and equipment Other gains and losses Finance costs Interest expense Income tax A. Income tax expense (a) Components of income tax expense: Current tax: Current tax on profits for the period 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 March 31, 2019 For the three-month period ended March 31, 2018 $ - $ 1,317 ( 3,472) ( 7,784) ( 9,928) 24,436 ($ 13,400) $ 17,969 For the three-month period ended March 31, 2019 For the three-month period ended March 31, 2018 $ 306,794 $ 46,543 For the three-month period ended March 31, 2019 For the three-month period ended March 31, 2018 $ 603,867 $ 601,347 1,368 - 605,235 601,347 36,446( 142,290 ) - 640,304 36,446 498,014 $ 641,681 $ 1,099,361

(29) Finance costs

(30) Income tax

~36~

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

Changes in fair value of financial assets at fair value through other comprehensive income Impact of change in tax rate	For the three-month period ended March 31, 2019 For the three-month period ended March 31, 2018 $ 3,855 ($ 2,805) - ( 46,977) $ 3,855 ($ 49,782)	For the three-month period ended March 31, 2018

• B. The Company’s income tax returns through tax year 2016 have been assessed and approved by the Tax Authority.

• (31) Earnings per share

Authority. Earnings per share
		For the three-month period ended March			31, 2019
			Weighted average
			number of ordinary		Earnings
		Amount	shares outstanding		per share
		after tax	(shares in thousands)	(in dollars)
Basic earnings per share
Profit attributable to ordinary shareholders of
the parent	$	2,907,863	1,039,622	$	2.80
Diluted earnings per share
Profit attributable to ordinary shareholders of
the parent	$	2,907,863	1,039,622
Assumed conversion of all dilutive potential
ordinary shares
Employees’ compensation		-	1,710
Shareholders of the parent plus assumed
conversion of all dilutive potential ordinary
shares	$	2,907,863	1,041,332	$	2.79
		For the three-month period ended March			31, 2018
			Weighted average
			number of ordinary		Earnings
		Amount	shares outstanding		per share
		after tax	(shares in thousands)	(in dollars)
Basic earnings per share
Profit attributable to ordinary shareholders of the parent	$	2,537,621	1,039,622	$	2.44
Diluted earnings per share
Profit attributable to ordinary shareholders of the parent	$	2,537,621	1,039,622
Assumed conversion of all dilutive potential
ordinary shares
Employees’ compensation		-	2,838
Shareholders of the parent plus assumed
conversion of all dilutive potential ordinary shares	$	2,537,621	1,042,460	$	2.43

(32) Operating leases

Lessor

A. The Group leases its investment property and shopping centres to others under operating lease agreements on terms between 2 and 10 years. The future aggregate minimum lease payments receivable

~37~

under non-cancellable operating leases are as follows:

Less than one year Over one year but less than five years Over five years	December 31, 2018 $ 90,898 224,263 6,195 $ 321,356	March 31, 2018 $ 93,898 277,573 43,094 $ 414,565

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 period ended March 31, 2018 are as follows:

ended March 31, 2018 are as follows:
			For the three-month
				period ended
				March 31, 2018
Rental expenses			$	2,917,548
Contingent rents			$	92,335
The future aggregate minimum lease payments under		non-cancellable operating leases are as follows:
		December 31, 2018		March 31, 2018
Less than one year	$	10,955,633	$	9,736,659
Over one year but less than five
years		36,200,668		30,872,897
Over five years		22,658,778		15,598,100
	$	69,815,079	$	56,207,656

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

• B. The Group has sub-leased certain business premises to others. Sublease revenues recognized in profit and loss for the three-month period ended March 31, 2018 are as follows:

and loss for the three-month period ended March 31, 2018 are as follows:
Sublease revenues Contingent rents	For the three-month period ended March 31, 2018 $ 60,408
	$ 283,640

In accordance with non-cancellable sub-lease agreements as of March 31, 2018, sub-lease payments totalling $528,365 are expected to be collected between 2018 and 2029.

~38~

(33) 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 three-month period ended March 31, 2019 $ 1,356,059 914,557 519,701) ( $ 1,750,915	For the three-month period ended March 31, 2018 $ 1,373,508 1,071,524 452,855) $ 1,992,177

(34) Changes in liabilities from financing activities

														Guarantee	Guarantee			Liabilities
			Short-term			Long-term				Lease				deposits				from financing
			borrowings			borrowings				liabilities				received			activities-gross
January 1, 2019		$	7,237,785		$	847,040			$	52,938,613			$		3,413,265		$	64,436,703
Changes in cash flow
from financing activities		(	2,861,189)		(	98,340)			(		3,420,321)				6,589		(	6,373,261)
Impact of changes in foreign exchange rate				-			1,698					90,884			-			92,582
Changes in other non-cash
items				-	(	57,851)					3,434,737				-			3,376,886
March 31, 2019		$	4,376,596		$	692,547			$	53,043,913			$		3,419,854		$	61,532,910
				Short-term								Guarantee						Liabilities
		Short-term			notes		Long-term					deposits						from financing
		borrowings			payables		borrowings					received			Other			activities-gross
January 1, 2018	$		965,180	$	250,000		$	1,105,451			$	3,355,171		$	1,066,560		$	6,742,362
Changes in cash flow
from financing activities			4,933,546			49,991			32,945			29,110		(	6,463	)		5,039,129
Impact of changes in foreign exchange rate			-			-	(		40,028		)		-		-		(	40,028	)
Changes in other non-
cash items			-			-	(		11,443		)		-	(	346,011	)	(	357,454	)
March 31, 2018	$		5,898,726	$	299,991		$	1,086,925			$	3,384,281		$	714,086		$	11,384,009

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7. RELATED PARTY TRANSACTIONS

(1) Parent and ultimate controlling party

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

(2) Names of related parties and relationship

Names of related parties Uni-President Enterprises Corp. Mister Donut Taiwan Co., Ltd.

Tait Marketing & Distribution Co., Ltd. Tung Ang Enterprises Corp. Lien-Bo Enterprises Corp. President Packaging Corp. President Tokyo Crorp. Kuang Chuan Dairy Corp.

Weilih Food Industrial Co., Ltd. Tung Chan Enterprises Corp. Koasa Yamako Corp.

Relationship with the Group Ultimate parent company Investees of the Company accounted for using the equity method Subsidiaries of ultimate parent company 〃 〃 〃 〃 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.

(3) Significant related party transactions and balances

A. Operating revenue

ificant related party transactions and balances 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 March 31, 2019 $ 147,185 37,625 67,691 19,225 2,309 14,082 2,471 1,547 $ 292,135	For the three-month period ended March 31, 2018
		$ 142,050 37,902 63,789 18,176 2,368 7,603 2,639 1,337 $ 275,864

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

~40~

B. Purchases

Purchases
Ultimate parent Associates Sister companies Other related parties	For the three-month period ended March 31, 2019 $ 3,877,405 71,263 953,065 518,899 $ 5,420,632	For the three-month period ended March 31, 2018
		$ 3,538,542 82,857 953,554 479,714 $ 5,054,667

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

C. Receivables from related parties

Ultimate parent Associates Sister companies Other related parties	March 31, 2019 $ 157,875 66,486 42,091 4,350 $ 270,802	December 31, 2018 $ 201,321 73,101 85,384 4,722 $ 364,528	March 31, 2018 $ 149,638 53,511 49,231 5,489 $ 257,869

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

D. Payables to related parties

Ultimate parent Associates Sister companies Other related parties	March 31, 2019 $ 1,722,309 60,604 448,433 358,115 $ 2,589,461	December 31, 2018 $ 1,631,289 63,739 442,907 370,822 $ 2,508,757	March 31, 2018 $ 1,563,339 70,286 448,647 279,751 $ 2,362,023

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

(4) Key management compensation

Salaries and other short-term employee benefits

For the three-month period ended March 31, 2019 $ 179,085	For the three-month period ended March 31, 2018 $ 189,512

~41~

8. PLEDGED ASSETS

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

				Book value
Pledged asset		March 31, 2019	December 31, 2018			March 31, 2018	Purpose
Accounts receivable	$	-	$	20,000	$	-	Performance guarantee
Land		128,643		128,643		314,492	Long-term and short-term
							borrowings and guarantee
							facilities
Buildings		26,122		50,230		71,388	Long-term and short-term
							borrowings and guarantee
							facilities
Transportation		589,852		586,353		513,622	Long-term borrowings and
equipment							long-term installment
							payable
Pledged time deposits
(Recognized as
“Other non-current
assets – guarantee
deposits paid ”)		55,615		56,495		49,665	Performance guarantee
	$	800,232	$	821,721	$	949,167

9. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNIZED CONTRACT COMMITMENTS

None.

10. SIGNIFICANT DISASTER LOSS

None.

11. SIGNIFICANT EVENTS AFTER THE BALANCE SHEET DATE

None.

12. OTHERS

(1) Capital management

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

~42~

(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 at fair value through other comprehensive income Designation of equity instrument Qualifying equity instrument 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	March 31, 2019 $ 1,503,374 757,531 200,363 957,894 46,617,325 4,875,260 2,033,344 2,796,768 56,322,697 $ 58,783,965 $ 4,376,596 - 2,290,148 22,146,063 23,395,381 1,086,258 3,419,854 $ 56,714,300	December 31, 2018 $ 929,908 644,614 200,731 845,345 48,530,648 5,264,573 1,535,507 2,766,913 58,097,641 $ 59,872,894 $ 7,237,785 - 1,866,610 23,148,683 27,954,181 1,182,900 3,413,265 $ 64,803,424	March 31, 2018 $ 1,607,764 787,813 201,626 989,439 59,114,211 4,386,947 3,147,066 2,639,129 69,287,353 $ 71,884,556 $ 5,898,726 299,991 1,762,995 20,517,232 22,273,380 1,372,122 3,384,281 $ 55,508,727

• 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.

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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 ERU:NTD Non-monetary items JPY: NTD Financial liabilities Monetary items USD: NTD JPY:NTD RMB:NTD (Foreign currency: functional currency) Financial assets Monetary items USD: NTD RMB:NTD JPY:NTD HKD:NTD ERU:NTD Non-monetary items JPY: NTD Financial liabilities Monetary items USD: NTD JPY: NTD	March 31, 2019 Foreign currency amount (In thousands) Exchange rate Book value (NTD) $ 928 30.8200 $ 28,601 500 4.5917 2,296 42,956 0.2783 11,955 2,179 3.9261 8,555 499 34.6100 17,270 $ 790,500 0.2783 $ 219,996 $ 3,466 30.8200 $ 106,822 199,882 0.2783 55,627 1,387 4.5917 6,369	March 31, 2019 Foreign currency amount (In thousands) Exchange rate Book value (NTD) $ 928 30.8200 $ 28,601 500 4.5917 2,296 42,956 0.2783 11,955 2,179 3.9261 8,555 499 34.6100 17,270 $ 790,500 0.2783 $ 219,996 $ 3,466 30.8200 $ 106,822 199,882 0.2783 55,627 1,387 4.5917 6,369	December 31, 2018 Foreign currency amount (In thousands) Exchange rate Book value (NTD) $ 739 30.7150 $ 22,698 1,742 4.4654 7,779 8,522 0.2782 2,371 - - - - - - $ 721,500 0.2782 $ 200,721 $ 3,745 30.7150 $ 115,028 80,786 0.2782 22,475 1,152 4.4654 5,144 March 31, 2018	December 31, 2018 Foreign currency amount (In thousands) Exchange rate Book value (NTD) $ 739 30.7150 $ 22,698 1,742 4.4654 7,779 8,522 0.2782 2,371 - - - - - - $ 721,500 0.2782 $ 200,721 $ 3,745 30.7150 $ 115,028 80,786 0.2782 22,475 1,152 4.4654 5,144 March 31, 2018	December 31, 2018 Foreign currency amount (In thousands) Exchange rate Book value (NTD) $ 739 30.7150 $ 22,698 1,742 4.4654 7,779 8,522 0.2782 2,371 - - - - - - $ 721,500 0.2782 $ 200,721 $ 3,745 30.7150 $ 115,028 80,786 0.2782 22,475 1,152 4.4654 5,144 March 31, 2018
	Foreign currency amount (In thousands) $ 928 500 42,956 2,179 499 $ 790,500 $ 3,466 199,882 1,387	Exchange rate 30.8200 4.5917 0.2783 3.9261 34.6100 0.2783 30.8200 0.2783 4.5917	Foreign currency amount (In thousands) $ 739 1,742 8,522 - - $ 721,500 $ 3,745 80,786 1,152
			Foreign currency amount (In thousands) $ 3,881 1,090 47,807 7,320 801 $ 809,100 $ 4,194 91,022	Exchange rate 29.1050 4.6379 0.2739 3.7082 35.8700 0.2739 29.1050 0.2739	Book value (NTD)
					$ 112,957 5,055 13,094 27,144 28,732 $ 221,612 $ 122,066 24,931

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• IV. Total exchange gain, including realized and unrealized from significant foreign exchange variations on monetary items held by the Group amounted to $606 and $47,970 for the three-month periods ended March 31, 2019 and 2018, respectively.

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

• Foreign exchange risk with respect to USD primarily arises from the exchange gain or loss resulting from foreign currency translation of cash and cash equivalents, accounts receivable and accounts payable denominated in USD. As of March 31, 2019 and 2018, if the NTD:USD exchange rate appreciates/depreciates by 5% with all other factors remaining constant, the Group’s profit for the three-month periods ended March 31, 2019 and 2018 would increase/decrease by $3,911 and $455, 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, accounts receivable, 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 three-month periods ended March 31, 2019 and 2018 would increase/decrease by $8,817 and $10,489, 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 three-month periods ended March 31, 2019 and 2018 would have increased/decreased by $7,828 and $8,096, 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 $37,877 and $39,391, 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.

Cash flow and fair value interest rate risk

• I. The Group’s interest rate risk arises from short-term borrowings and long-term borrowings. Borrowings issued at variable rates expose the Group to cash flow interest rate risk, which are partially offset by cash and cash equivalents held at variable rates. Borrowings issued at fixed rates expose the Group to fair value interest rate risk. During the three-month periods ended March 31, 2019 and 2018, 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 three-month periods ended March 31, 2019 and 2018 would have increased/decreased by $2,216 and $2,680, 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 three-month periods ended March 31, 2019 and 2018 would have decreased by $126 and $621 or increased by $122 and $624, 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.

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(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 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:

At January 1 Provision for impairment Reversal of impairment Write-offs Effect of foreign exchange At March 31 At January 1_IAS 39 Adjustments under new standards At January 1_IFRS 9 Provision for impairment Reversal of impairment Write-offs Effect of foreign exchange At March 31	2019 Accounts receivable $ 55,464 1,435 ( 2,979) ( 18) ( 2,220) $ 51,682 2018 Accounts receivable $ 48,471 10,889 59,360 3,122 ( 1,678) ( 11,115) ( 991) $ 48,698

• 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 three-month periods ended March 31, 2019 and 2018.

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

• (c) Liquidity risk

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

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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 $1,417,691, $844,225 and $1,521,931 as at March 31, 2019, December 31, 2018, and March 31, 2018, respectively, which are expected to readily generate cash inflows for the purpose of managing liquidity risk.

• III. The Group has undrawn long-term borrowings facilities of $16,523,428, $14,006,462 and $15,586,976 as of March 31, 2019, December 31, 2018, and March 31, 2018, 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:
March 31, 2019 Short-term borrowings Notes payable Accounts payable Other payables Lease liability Long-term borrowings (including current portion) Non-derivative financial liabilities: December 31, 2018 Short-term borrowings Notes payable Accounts payable Other payables Long-term borrowings (including current portion) Non-derivative financial liabilities: March 31, 2018 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 $ 4,407,221 2,290,148 22,146,063 23,395,381 11,492,862 427,955 Less than 1 year $ 7,286,725 1,866,610 23,148,683 27,954,181 372,094 Less than 1 year $ 6,026,212 299,991 1,762,995 20,517,232 22,273,380 316,437	Between 1 and 2 years $ - - - - 10,369,927 223,668 Between 1 and 2 years $ - - - - 264,270 Between 1 and 2 years	Between 2 and 3 years $ - - - - 9,651,856 199,642 Between 2 and 3 years $ - - - - 189,983 Between 2 and 3 years $ - - - - - 96,052	Over 3 years $ - - - - 24,637,814 301,685 Over 3 years
				$ - - - - 407,867 Over 3 years
		$ - - - - - 514,058		$ - - - - - 515,016

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(3)Fair value information

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

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

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

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

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

• C. Financial instruments not measured at fair value

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

Financial assets: Guarantee deposit paid Financial liabilities: Guarantee deposit received Financial assets: Guarantee deposit paid Financial liabilities: Guarantee deposit received Financial assets: Guarantee deposit paid Financial liabilities: Guarantee deposit received		March 31, 2019	March 31, 2019
	Book value $ 2,796,768 $ 3,419,854		Fair value
		Level 1 Level 2 $ - $ - $ - $ - December 31, 2018		Level 3
				$ 2,776,877
				$ 3,389,941
	Book value $ 2,766,913 $ 3,413,265		Fair value
		Level 1 Level 2 $ - $ - $ - $ - March 31, 2018		Level 3
				$ 2,748,262
				$ 3,384,951
	Book value $ 2,639,129 $ 3,384,281		Fair value
		Level 1 $ - $ -	Level 2 $ - $ -	Level 3
				$ 2,623,753
				$ 3,360,372

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

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

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

March 31, 2019 Assets Recurring fair value measurements Financial assets at fair value through profit or loss Open-ended funds Equity securities Financial assets at fair value through other comprehensive income Equity securities Debt securities December 31, 2018 Assets Recurring fair value measurements Financial assets at fair value through profit or loss Open-ended funds Equity securities Financial assets at fair value through other comprehensive income Equity securities Debt securities March 31, 2018 Assets Recurring fair value measurements Financial assets at fair value through profit or loss Open-ended funds Equity securities Financial assets at fair value through other comprehensive income Equity securities Debt securities	Level 1 $ 1,417,691 - 1,417,691 753,183 200,363 953,546 $ 2,371,237 Level 1 $ 844,225 - 844,225 640,266 200,731 840,997 $ 1,685,222 Level 1 $ 1,521,931 - 1,521,931 783,465 201,626 985,091 $ 2,507,022	Level 2 $ - - - - - - $ - Level 2 $ - - - - - - $ - Level 2 $ - - - - - - $ -	Level 3 $ - 85,683 85,683 4,348 - 4,348 $ 90,031 Level 3 $ - 85,683 85,683 4,348 - 4,348 $ 90,031 Level 3 $ - 85,833 85,833 4,348 - 4,348 $ 90,181	Total $ 1,417,691 85,683 1,503,374 757,531 200,363 957,894 $ 2,461,268 Total $ 844,225 85,683 929,908 644,614 200,731 845,345 $ 1,775,253 Total $ 1,521,931 85,833 1,607,764 787,813 201,626 989,439 $ 2,597,203

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• (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 three-month periods ended March 31, 2019 and 2018, there was no transfer between Level 1 and Level 2.

• F. For the three-month periods ended March 31, 2019 and 2018, 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:

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

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Non-derivative equity instrument: Unlisted shares Non-derivative equity instrument: Unlisted shares	Fair value at December 31, 2018 $ 90,031 Fair value at March 31, 2018 $ 90,181	Valuation technique Market comparable companies 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	Range (weighted average) 2.61 - 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

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 March 31, 2019, December 31, 2018 and March 31, 2018.

13. SUPPLEMENTARY DISCLOSURES

(1) Significant transactions information

• A. Loans to others: None.

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

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

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

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

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

• 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.

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(2) Information on investees

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

(3) Information on investments in Mainland China

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

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

14. SEGMENT INFORMATION

(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.

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(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 three-month period ended March 31, 2019	For the three-month period ended March 31, 2019	For the three-month period ended March 31, 2019	For the three-month period ended March 31, 2019
	Convenience stores $ 37,774,619 153,656 $ 37,928,275 $ 3,250,231	Retail business group $ 17,803,703 564,124 $ 18,367,827 $ 829,283	Logistics business group $ 534,592 3,216,198 $ 3,750,790 $ 317,812	Other operating segments $ 4,972,482 1,669,057 $ 6,641,539 $ 1,010,955	Adjustment and elimination $ - ( 5,603,035) ($ 5,603,035) $ 1,506,958)	Total $ 61,085,396 - $ 61,085,396 $ 3,901,323

External revenue (net) Internal department revenue Total segment revenue Segment income (loss)		For the three-month period ended March 31, 2018	For the three-month period ended March 31, 2018	For the three-month period ended March 31, 2018	For the three-month period ended March 31, 2018
	Convenience stores $ 36,989,871 164,273 $ 37,154,144 $ 3,223,754	Retail business group $ 16,647,133 597,690 $ 17,244,823 $ 810,863	Logistics business group $ 472,170 3,178,248 $ 3,650,418 $ 275,173	Other operating segments $ 4,838,571 1,599,591 ( $ 6,438,162 ( $ 592,016	Adjustment and elimination $ - 5,539,802) $ 5,539,802) $ 941,250)	Total $ 58,947,745 - $ 58,947,745 $ 3,960,556

(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.

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Table 1

PRESIDENT CHAIN STORE CORP. AND SUBSIDIARIES

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

Expressed in thousands of NTD (Except as otherwise indicated)

Securitiesheld by	Typeandname ofsecurities	Relationship with the securitiesissuer	General ledger account		As of March	31,2019		Footnote
				Number ofshares	Bookvalue	Ownership (%)	Fairvalue
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. Uni-Wonder Corp. President Information Corp. President Information Corp. President Logistics International Corp. President Pharmaceutical Corp. Retail Support Taiwan Corp. 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: Yuanta De-Li Money Market Fund Taishin 1699 Money Market Fund UPAMC James Bond Money Market Fund FSITC Taiwan Money Market Fund Allianz Global Investors Taiwan Money Market Fund Union Money Market Fund Taishin 1699 Money Market Fund Prudential Financial Money Market Fund Jih Sun Money Market Fund Taishin 1699 Money Market Fund Taishin 1699 Money Market Fund FSITC 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 7,975,758 4,140,516 299,328 13,073,519 23,945,022 9,848,037 11,828,720 1,372,536 2,366,198 1,959,368 2,279,818 14,088 23,530,040 -	45,298 $ 14,663 25,722 - - 533,187 219,996 4,348 130,028 $ 56,006 5,001 200,000 300,000 130,000 160,000 21,707 35,051 26,503 30,838 2,513 320,044 200,363 $	7.60 5.37 0.92 6.67 - 2.75 0.56 10.00 - - - - - - - - - - - - - -	45,298 $ 14,663 25,722 - - 533,187 219,996 4,348 130,028 $ 56,006 5,001 200,000 300,000 130,000 160,000 21,707 35,051 26,503 30,838 2,513 320,044 200,363 $

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 three-month period ended March 31, 2019

Table 2 Investor	Type and name of securities	General ledger account	Counterparty	Relationship with the investor	Balance January1	as at ,2019	Addi	tion		Dispos	al		Other increa	se(decrease)	Expressed in (Except as o Balance as at M	thousands of NTD therwise indicated) arch 31,2019
					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. Uni-Wonder Corp. Uni-Wonder Corp. Uni-Wonder Corp. Uni-Wonder Corp. Q-ware Systems & Services Corp.	Open ended funds: Yuanta De-Li Money Market Fund FSITC Taiwan Money Market Fund Allianz Global Investors Taiwan Money Market Fund Union Money Market Fund Taishin 1699 Money Market Fund Eastspring Investments Well Pool Money Market Fund	Note 1 〃 〃 〃 〃 〃	Not applicable 〃 〃 〃 〃 〃	Not applicable 〃 〃 〃 〃 〃	1,843,148 - 3,996,323 15,170,478 2,220,988 16,121,671	30,008 $ - 50,000 200,000 30,000 219,000	43,579,059 29,426,771 47,900,434 19,702,110 37,715,891 54,800,322	710,000 $ 450,000 600,000 260,000 510,000 745,000	37,446,449 16,353,252 27,951,735 25,024,551 28,108,159 47,391,953	610,218 $ 250,129 350,155 330,171 380,087 644,244	610,000 $ 250,000 350,000 330,000 380,000 644,000	218 $ 129 155 171 87 244	- - - - - -	20 $ - - - - 44	7,975,758 13,073,519 23,945,022 9,848,037 11,828,720 23,530,040	130,028 $ 200,000 300,000 130,000 160,000 320,044

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 three-month period ended March 31, 2019

Expressed in thousands of NTD (Except as otherwise indicated)

Purchaser/seller	Counterparty	Relationship with the counterparty			Transaction		Differences in t compared t transa	ransaction terms o third party ctions	Notes/accounts	receivable (payable)	Footnote
			Purchases (sales)	Amount	Percentage of total purchases (sales)	Credit term	Unit price	Credit term	Balance	Percentage of total notes/accounts receivable (payable)
President Chain Store Corp. Chieh-Shuen Logistics International Corp. President Transnet Corp. Uni-Wonder Corp. President Information Corp. President Logistics International Corp. Retail Support International Corp. Uni-President Cold-Chain Corp. Wisdom Distribution Service Corp.	Uni-President Enterprises Corp. Uni-President Superior Commissary Corp. Tung Ang Enterprises Corp. Lien-Bo Enterprises Corp. President Packaging Corp. Kuang Chuan Dairy Corp. 21 Century Enterprise Co., Ltd. Q-ware Systems & Services Corp. President Transnet Corp. President Logistics International Corp. Chieh-Shuen Logistics International Corp. Tung Chan Enterprise Corp. President Chain Store Corp. Chieh-Shuen Logistics International Corp. Retail Support International Corp. Uni-President Cold-Chain Corp. Wisdom Distribution Service Corp. President Logistics International Corp. President Logistics International Corp. President Logistics International Corp.	Ultimate parent company Subsidiary Sister company 〃 〃 Other related party Subsidiary 〃 Subsidiary of President Chain Store Corp. Parent company Subsidiary of President Chain Store Corp. Other related party Parent company Subsidiary Parent company Subsidiary of President Chain Store Corp. 〃 Subsidiary Subsidiary of President Chain Store Corp. 〃	Purchases 〃 〃 〃 〃 〃 〃 〃 Delivery revenue 〃 Service cost Purchases Service revenue Service cost Delivery revenue 〃 〃 Service cost 〃 〃	3,737,231 $ 855,237 426,806 161,453 106,682 115,758 110,082 158,584 177,262) ( 237,299) ( 177,262 139,896 184,653) ( 237,299 180,438) ( 244,202) ( 258,797) ( 180,438 244,202 258,797	15 3 2 1 - - - 1 41) ( 55) ( 8 14 67) ( 33 24) ( 32) ( 34) ( 48 35 44	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 15~60 days from the end of the month when invoice is issued Net 30~65 days from the end of the month when invoice is issued Net 30~60 days from the end of the month when invoice is issued Net 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 40 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 45 days from the end of the month when invoice is issued Net 20 days from the end of the month when invoice is issued Net 20 days from the end of the month when invoice is issued Net 20 days from the end of the month when invoice is issued Net 20 days from the end of the month when invoice is issued Net 20 days from the end of the month when invoice is issued Net 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	No significant differences 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃	No significant differences 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃	1,228,201) ($ 609,118) ( 153,547) ( 112,451) ( 58,551) ( 118,969) ( 40,208) ( 102,674) ( 110,959 83,933 110,959) ( 35,591) ( 176,830 83,933) ( 63,993 87,952 90,208 63,993) ( 87,952) ( 90,208) (	8) ( 4) ( 1) ( 1) ( - 1) ( - 1) ( 56 42 8) ( 7) ( 64 36) ( 24 56 33 44) ( 2) ( 35) (

Table 3  Page 1

Table 3

PRESIDENT CHAIN STORE CORP. AND SUBSIDIARIES

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

Expressed in thousands of NTD (Except as otherwise indicated)

Purchaser/seller	Counterparty	Relationship with the counterparty			Transaction		Differences in t compared t transa	ransaction terms o third party ctions	Notes/accounts	receivable (payable)	Footnote
			Purchases (sales)	Amount	Percentage of total purchases (sales)	Credit term	Unit price	Credit term	Balance	Percentage of total notes/accounts receivable (payable)
Q-ware Systems & Services Corp. President Drugstore Business Corp. President Pharmaceutical Corp. 21 Century Enterprise Co., Ltd. Uni-President Superior Commissary Corp.	President Chain Store Corp. President Pharmaceutical Corp. President Drugstore Business Corp. President Chain Store Corp. President Chain Store Corp.	Parent company Subsidiary of President Chain Store Corp. 〃 Parent company 〃	Service revenue Purchases Sales revenue 〃 〃	158,584) ($ 172,670 172,670) ( 110,082) ( 855,237) (	69) ( 7 41) ( 45) ( 99) (	Net 40 days from the end of the month when invoice is issued Net 70 days from the end of the month when invoice is issued Net 70 days from the end of the month when invoice is issued Net 30~60 days from the end of the month when invoice is issued Net 45 days from the end of the month when invoice is issued	No significant differences 〃 〃 〃 〃	No significant differences 〃 〃 〃 〃	102,674 $ 59,473) ( 59,473 40,208 609,118	78 3) ( 14 44 100

Table 3  Page 2

PRESIDENT CHAIN STORE CORP. AND SUBSIDIARIES

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

		March 31, 2019
Table 4 Creditor	Counterparty	Relationship with the counterparty	Balance as of Marchr 31,2019	Turnover rate	Overdue r	eceivables	Expressed in thousands of NTD (Except as otherwise indicated) Amount collected subsequent to the balance sheet date Allowance for doubtful accounts
					Amount	Action taken
President Information Corp. Q-ware Systems & Services Corp. Uni-President Superior Commissary Corp. Chieh-Shuen Logistics International Corp.	President Chain Store Corp. President Chain Store Corp. President Chain Store Corp. President Transnet Corp.	Parent company 〃 〃 Subsidiary of President Chain Store Corp.	176,830 $ 102,674 609,118 110,959	3.52 6.05 5.56 5.91	- $ - - -	None 〃 〃 〃	27,982 $ 33,435 291,456 61,181	- $ - - -

Table 4  Page 1

Table 5

PRESIDENT CHAIN STORE CORP. AND SUBSIDIARIES

Significant inter-company transactions during the reporting periods

For the three-month period ended March 31, 2019

Expressed in thousands of NTD (Except as otherwise indicated)

Transaction

						Transaction
Number	Companyname	Counterparty	Relationship	General ledgeraccount	Amount	Transactionterms	Percentage of consolidated total operating revenues ortotalassets
1 1 2 2 3 3 4 5 5 5 6 6 6 7	President Information Corp. President Information Corp. Q-ware Systems & Services Corp. Q-ware Systems & Services Corp. Uni-President Superior Commissary Corp. Uni-President Superior Commissary Corp. 21 Century Enterprise Co., Ltd. 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. President Pharmaceutical 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 Transnet Corp. President Transnet Corp. President Logistics International Corp. Retail Support International Corp. Uni-President Cold-Chain Corp. Wisdom Distribution Service Corp. President Drugstore Business Corp.	Subsidiary to parent company Subsidiary to parent company Subsidiary to parent company Subsidiary to parent company Subsidiary to parent company Subsidiary to parent company Subsidiary to parent company Subsidiary to subsidiary Subsidiary to subsidiary Subsidiary to subsidiary Subsidiary to subsidiary Subsidiary to subsidiary Subsidiary to subsidiary Subsidiary to subsidiary	Accounts receivable Service revenue Accounts receivable Service revenue Accounts receivable Sales revenue Sales revenue Accounts receivable Delivery revenue Delivery revenue Delivery revenue Delivery revenue Delivery revenue Sales revenue	176,830 $ 184,653) ( 102,674 158,584) ( 609,118 855,237) ( 110,082) ( 110,959 177,262) ( 237,299) ( 180,438) ( 244,202) ( 258,797) ( 172,670) (	Net 45 days from the end of the month when invoice is issued Net 45 days from the end of the month when invoice is issued Net 40 days from the end of the month when invoice is issued Net 40 days from the end of the month when invoice is issued Net 45 days from the end of the month when invoice is issued Net 45 days from the end of the month when invoice is issued Net 30~60 days from the end of the month when invoice is issued Net 40 days from the end of the month when invoice is issued Net 40 days from the end of the month when invoice is issued Net 20 days from the end of the month when invoice is issued Net 20 days from the end of the month when invoice is issued Net 20 days from the end of the month when invoice is issued Net 20 days from the end of the month when invoice is issued Net 70 days from the end of the month when invoice is issued	0.10 0.30 0.06 0.26 0.35 1.40 0.18 0.06 0.29 0.39 0.30 0.40 0.42 0.28

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 three-month period ended March 31, 2019

Investor	Investee	Location	Mainbusiness activities	Initial invest	ment amount	Shareshel	d as atMarc	h31,2019	Net profit (loss) of the investee for the three- month period ended March31,2019	Investment income (loss) recognized by the Company for the three- month period ended March31,2019	Footnote
				Balance as at March31,2019	Balance as at December 31, 2018	Numberofshares	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 operation of an MRT station Coffee chain store Room-temperature logistics and warehousing Management of retail department store Operation of shopping mall, department store, international trade, etc. Professional investment Management of entertainment business Professional investment Enterprise management consultancy Professional investment Life and property insurance Sales of ice cream Sports and entertainment business	6,712,138 $ 288,559 711,576 904,475 330,216 840,000 520,141 237,437 320,741 332,482 50,000 100,400 20,000 102,000 500,000 720,000 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 20,000 102,000 500,000 720,000 3,286,206 91,414 7,112,028 3,191,700 500,000 861,696 637,231 9,506 277,805 213,000 170,000 170,000	171,589,586 78,520,000 103,496,399 55,858,815 22,121,962 27,999,999 48,519,890 23,605,042 25,714,475 24,382,921 10,847,421 9,999,999 2,000,000 10,199,999 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	26,395,462 $ 1,437,369 1,650,507 716,369 806,427 618,619 451,276 705,076 509,732 389,665 563,995 467,768 51,420 213,031 370,184 760,430 5,368,991 189,357 5,617,205 1,995,044 469,688 112,705 83,969 64,647 67,139 22,563 8,463) ( 39,009) (	407,430 $ 69,530 188,578 27,319 66,811 74,963 18,204) ( 96,440 23,759 19,272 57,603 99,605 92 35,770 14,505 32,629 171,242 58,259 521,364 57,471 371,557 16,448) ( 73 5,406 350 245) ( 966 3,722	407,430 $ 69,530 132,020 22,093 49,586 52,474 16,383) ( 57,868 20,433 16,721 57,603 49,833 92 18,243 14,505 6,526 79,467 14,527 98,825 10,920 6,070 2,050) ( 73 5,406 322 245) ( 992 3,721	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

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 three-month period ended March 31, 2019

Investor	Investee	Location	Mainbusiness activities	Initial invest	ment amount	Shareshel	d as atMarc	h31,2019	Net profit (loss) of the investee for the three- month period ended March31,2019	Investment income (loss) recognized by the Company for the three- month period ended March31,2019	Footnote
				Balance as at March31,2019	Balance as at December 31, 2018	Numberofshares	Ownership (%)	Bookvalue
President Chain Store Corp. President Chain Store Corp. President Chain Store Corp. President Chain Store Corp. President Chain Store Corp. President Chain Store Corp. President Chain Store Corp. President Chain Store Corp. Books.com. Co., Ltd. Mech-President Corp. President Chain Store (Hong Kong) Holdings Limited President Chain Store (Hong Kong) Holdings Limited President Chain Store (BVI) Holdings Ltd. President Chain Store (BVI) Holdings Ltd. President Chain Store (Labuan) Holdings Ltd. President Logistics International Corp. President Pharmaceutical Corp. Ren-Hui Investment Corp. Ren-Hui Investment Corp. Ren-Hui Investment Corp. Ren-Hui Investment Corp. Ren-Hui Investment Corp. Ren-Hui Investment Corp. Ren-Hui Investment Corp. 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. Books.com. (BVI) Ltd. President Jing Corp. PCSC Restaurant (Cayman) Holdings Limited PCSC (China) Drugstore Limited President Chain Store (Labuan) Holdings Ltd. President Chain Store (Hong Kong) Holdings Limited Philippine Seven Corp. Chieh-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 British Virgin Islands Taiwan Cayman Islands British Virgin Islands Malaysia Hong Kong 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 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 - 200,000 47,190 7,500 1,478 9,600 160,513 22,807 898,814 4,800,428 897,950 180,000 178,024 - - - - - - - -	160,680 $ 35,648 391,300 10,500 147,900 200,000 47,190 7,500 1,478 9,600 160,513 22,807 898,814 4,800,428 897,950 180,000 178,024 - - - - - - - -	10,000,000 9,800 6,511,963 1,049,999 - 7,500,049 1,833,333 750,000 500 960,000 8,880,000 740,000 29,163,337 134,603,354 394,970,516 26,670,000 5,935,900 1 1 1 1 1 1 1 1	100.00 100.00 100.00 70.00 - 50.00 36.67 15.00 100.00 60.00 100.00 7.80 100.00 100.00 52.22 100.00 100.00 - - - - - - - -	45,399 $ 76,863 28,136) ( 88,438 - 113,140 42,695 20,160 592 27,998 32,081 5,680 2,254,595 4,376,156 2,253,867 315,369 72,841 - - - - - - - -	10,876 $ 532 1,304 21,168 - 14,389 10,553 7,913) ( - 3,325 40 350 35,892 120,435 65,873 4,931 1,549) ( 99,605 74,963 27,319 23,759 188,578 19,272 35,770 66,811	10,875 $ 508 1,303 14,818 - 5,261 3,833 1,187) ( - 1,995 40 27 35,892 152,101 35,893 4,931 1,549) ( - - - - - - - -	Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Note 1 Note 1 Note 1 Subsidiary of a subsidiary Subsidiary of a subsidiary Subsidiary of a subsidiary Subsidiary of a subsidiary Subsidiary of a subsidiary Subsidiary of a subsidiary Subsidiary of a subsidiary Subsidiary of a subsidiary Subsidiary of a subsidiary Subsidiary of a subsidiary Subsidiary of a subsidiary Subsidiary of a subsidiary Subsidiary of a subsidiary Subsidiary of a subsidiary Subsidiary of a subsidiary Subsidiary of a subsidiary 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 three-month period ended March 31, 2019

Investor	Investee	Location	Mainbusiness activities	Initial invest	ment amount	Shareshel	d as atMarc	h31,2019	Net profit (loss) of the investee for the three- month period ended March31,2019	Investment income (loss) recognized by the Company for the three- month period ended March31,2019	Footnote
				Balance as at March31,2019	Balance as at December 31, 2018	Numberofshares	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 - 26,390 28,584	- $ - - - - - 60,374 15,300 44,975 5,425 23,850 87,994 18,850 - 26,390 28,584	1 1 1 1 1 - 2,000,000 2,871,300 9,481,500 1,161,000 4,837,500 2,990 3,870,000 - 4,500,000 40,000	- - - - - - 100.00 51.00 49.00 6.00 25.00 100.00 20.00 - 100.00 40.00	- $ - - - - - 71,196 80,074 170,373 20,862 86,925 113,481 69,513 - 26,390 28,584	14,389 $ 18,204) ( 96,440 58,259 21,168 - 155) ( 11,100 17,742 17,742 17,742 6,763 17,742 - 5,940 338	- $ - - - - - 155) ( 5,661 8,694 1,065 4,436 6,763 3,521 - - -	Note 1 Subsidiary of a subsidiary Subsidiary of a subsidiary Subsidiary of a subsidiary Subsidiary of a subsidiary Subsidiary of a subsidiary Subsidiary of a subsidiary Subsidiary of a subsidiary Subsidiary of a subsidiary Subsidiary of a subsidiary Subsidiary of a subsidiary Subsidiary of a subsidiary Subsidiary of a subsidiary Subsidiary of a subsidiary Subsidiary of a subsidiary Subsidiary of a subsidiary

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

Table 6  Page 3

Table 7

PRESIDENT CHAIN STORE CORP. AND SUBSIDIARIES Information on investments in Mainland China For the three-month period ended March 31, 2019

Expressed in thousands of NTD (Except as otherwise indicated)

Investee in MainlandChina	Main business activities	Paid-in capital	Investment method	Accumulated amount of remittance from Taiwan to Mainland China as ofJanuary1,2019	Amount remitted from Taiwan to Mainland China/ Amount remitted back to Taiwan for the three-month period ended March 31,2019	Amount remitted from Taiwan to Mainland China/ Amount remitted back to Taiwan for the three-month period ended March 31,2019	Accumulated amount of remittance from Taiwan to Mainland China as of March 31, 2019	Net income of investee for the three-month period ended March 31, 2019	Ownership held by the Company (direct or indirect)	Investment income (loss) recognized by the Company for the three- month period ended March 31,2019	Book value of investments in Mainland China as of March 31,2019	Accumulated amount of investment income remitted back to Taiwan as of March 31, 2019	Footnote
					Remitted to Mainland China	Remitted back to Taiwan
Shanghai President Chain Store Corporation Trade Co., Ltd. President Cosmed Chain Store (Shen Zhen) Co., Ltd. President Chain Store (Shanghai) Ltd. Shanghai President Logistic Co., Ltd. Shanghai Cold Stone Ice Cream Corporation PCSC (Chengdu) Hypermarket Limited Shan Dong President Yinzuo Commercial Limited President (Shanghai) Health Product Trading Company Ltd. Zhejiang Uni-Champion Logistics Development Co., Ltd. Bejing Bokelai Customer Co. President Chain Store (Taizhou) Ltd. President Logistic ShanDong Co., Ltd. President Chain Store (Zhejiang) Ltd. Beauty Wonder (Zhejiang) Trading Co.,Ltd.	Trade of food and commodities Wholesale of merchandise Operation of chain stores Logistics and warehousing Sales of ice cream Retail hypermarket Supermarkets Sales of various health care products, cosmetics, and pharmaceuticals Logistics and warehousing Enterprise information consulting, network technology development and services Logistics and warehousing Logistics and warehousing Operation of chain stores Sales of cosmetics and daily items	273,682 $ 459,171 2,295,855 61,640 1,021,856 - 275,503 179,799 183,668 462 275,503 229,586 642,839 137,751	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	159,357 $ 290,241 2,381,692 61,640 1,009,017 547,867 125,695 179,799 177,329 - 282,809 229,586 640,591 144,239	- $ - - - - - - - - - - - - -	- $ - - - - - - - - - - - - -	159,357 $ 290,241 2,381,692 61,640 1,009,017 547,867 125,695 179,799 177,329 - 282,809 229,586 640,591 144,239	30 $ 351 133,164 25,013 12) ( 577) ( 2,753) ( 1,393) ( 13,939 - 14,855 171 29,357) ( 6,499) (	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	41 $ 351 106,937 25,013 12) ( 580) ( 1,302) ( 1,027) ( 10,863 - 14,855 628 29,168) ( 6,513) (	32,013 $ 72,048 177,615 457,290 48,965 - 198,547 28,621 175,291 17 355,386 206,648 395,305 110,308	- $ - - - - - - 56,929 13,994 - - - - -	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 March 31,2019	Investment amount approved by the Investment Commission of the Ministry of Economic Affairs (MOEA)	Ceiling on investments in Mainland China imposed by the Investment Commission of MOEA
President Chain Store Corp. President Pharmaceutical Corp. Uni-President Cold-Chain Corp. Ren-Hui Investment Corp.	4,750,534 $ 179,799 91,456 53,112	91,456 53,112 179,799 8,517,844 $	28,541,512 $ 526,696 692,747 80,000

Table 7  Page 1