PCSC - Interim / Quarterly Report 2020

PRESIDENT CHAIN STORE CORP. AND SUBSIDIARIES

CONSOLIDATED FINANCIAL STATEMENTS AND REVIEW REPORT OF INDEPENDENT ACCOUNTANTS MARCH 31, 2020 AND 2019

-----------------------------------------------------------------------------------------------------------------------------------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, 2020 AND 2019

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 ~ 51
12
12
12
13 ~ 17
17
17 ~ 37
37 ~ 39
39
40
40
40
40 ~ 48
49
50 ~ 51

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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, 2020 and 2019, 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$43,551,889 thousand and NT$43,359,143 thousand, constituting 22% and 25% of the consolidated total assets, and total liabilities of NT$26,671,356 thousand and NT$26,065,598 thousand, constituting 18% and 20% of the consolidated total liabilities as at March 31, 2020 and 2019, respectively, and total comprehensive income of

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NT$309,819 thousand and NT$609,145 thousand, constituting 10% and 17% of the consolidated total comprehensive income for the three-month periods then ended.

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, 2020 and 2019, 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 May 6, 2020

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, 2020 and 2019 are reviewed, not audited)

Assets	Notes	March31,2020 AMOUNT % $ 45,619,316 23 1,682,052 1 4,034,994 2 1,956,561 1 624 - 14,228,358 7 1,396,936 1 3,135,037 2 72,053,878 37 85,565 - 738,846 - 9,392,621 5 26,048,593 14 68,362,249 35 1,502,552 1 10,087,357 5 1,901,412 1 3,657,699 2 121,776,894 63 $ 193,830,772 100	December31,2019 AMOUNT % $ 45,445,395 23 1,696,300 1 5,808,480 3 1,460,354 1 95 - 15,659,112 8 1,195,719 1 2,968,350 1 74,233,805 38 85,565 - 807,115 - 9,255,939 5 26,018,322 13 67,489,612 35 1,506,798 1 10,171,442 5 1,860,217 1 3,699,819 2 120,894,829 62 $ 195,128,634 100	March31,2019
				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
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) and7 6(10) 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, 2020 and 2019 are reviewed, not audited)

					March31,2020				December31,	2019		March31,2019
	Liabilities and Equity	Notes			AMOUNT	%			AMOUNT	%		AMOUNT	%
	Current liabilities
2100	Short-term borrowings	6(14) and 8		$	5,088,654	3		$	6,014,658	3	$	4,376,596	3
2130	Contract liabilities–current	6(24)			3,519,856	2			3,443,383	2		3,022,466	2
2150	Notes payable	7			1,102,302	1			1,214,702	1		2,290,148	1
2170	Accounts payable				20,109,176	10			20,897,055	11		19,590,525	11
2180	Accounts payable–related parties	7			2,665,307	1			2,690,640	1		2,555,538	2
2200	Other payables	6(15)			22,343,806	11			26,596,505	14		23,395,381	13
2230	Current income tax liabilities	6(30)			2,148,247	1			1,410,428	1		2,168,380	1
2280	Lease liabilities–current	7			12,000,591	6			11,932,751	6		11,057,525	6
2300	Other current liabilities	6(16)			3,188,331	2			3,149,591	1		3,210,993	2
21XX	Total current liabilities				72,166,270	37			77,349,713	40		71,667,552	41
	Non-current liabilities
2527	Contract liabilities–non-current	6(24)			434,429	-			448,248	-		233,767	-
2540	Long-term borrowings	6(17) and 8			499,680	-			508,112	-		692,547	-
2570	Deferred income tax liabilities	6(30)			5,567,312	3			5,580,529	3		5,462,572	3
2580	Lease liabilities–non-current	7			57,729,234	30			56,894,287	29		41,986,388	24
2640	Net defined benefit liability	6(18)
	–non-current				4,750,197	3			4,751,607	3		4,726,054	3
2670	Other non–current liabilities	6(19)			4,432,142	2			4,368,820	2		4,174,013	2
25XX	Total non-current liabilities				73,412,994	38			72,551,603	37		57,275,341	32
2XXX	Total liabilities				145,579,264	75			149,901,316	77		128,942,893	73
	Equity attributable to owners of the
	parent
	Share capital	6(20)
3110	Share capital–common stock				10,396,223	5			10,396,223	5		10,396,223	6
	Capital surplus	6(21)
3200	Capital surplus				46,884	-			46,884	-		45,954	-
	Retained earnings	6(22)
3310	Legal reserve				13,314,081	7			13,314,081	7		12,293,442	7
3320	Special reserve				-	-			-	-		398,859	-
3350	Unappropriated retained earnings				15,400,485	8			12,845,880	7		14,972,771	9
	Other equity	6(23)
3400	Other equity interest		(		256,272)	-	(		380,187)	-		307,257	-
31XX	Equity attributable to owners of
	the parent				38,901,401	20			36,222,881	19		38,414,506	22
36XX	Non-controlling interest				9,350,107	5			9,004,437	4		9,154,681	5
3XXX	Total equity				48,251,508	25			45,227,318	23		47,569,187	27
3X2X	Total liabilities and equity			$	193,830,772	100		$	195,128,634	100	$	176,512,080	100

The accompanying notes are an integral part of these consolidated financial statements. Chairman: Lo, Chih–Hsien President: Huang, Jui–Tien Accounting Manager: Kuo, Ying–Chih

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

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

					For the three-monthperiods ended March 31	For the three-monthperiods ended March 31	For the three-monthperiods ended March 31	For the three-monthperiods ended March 31
					2020			2019
	Items	Notes			AMOUNT	%		AMOUNT	%
4000	Operating revenue	6(24) and 7		$	63,049,749	100	$	61,085,396	100
5000	Operating costs	6(4)(25) and 7	(		41,225,438 ) (	65)	(	40,079,469 )(	66 )
5900	Gross profit				21,824,311	35		21,005,927	34
	Operating expenses	6(25)(26)
6100	Selling expenses		(		16,182,978 ) (	26)	(	15,494,236 ) (	25 )
6200	General and administrative expenses		(		2,450,912 ) (	4)	(	2,306,799 ) (		4 )
6450	Expected credit losses		(		44 )	-	(	1,435 )		-
6000	Total operating expenses		(		18,633,934 ) (	30)	(	17,802,470 )(	29 )
6900	Operating profit				3,190,377	5		3,203,457		5
	Non-operating income and expenses
7010	Other income	6(27)			558,698	1		889,862		1
7020	Other gains and losses	6(28)			27,836	-	(	13,400 )		-
7050	Finance costs	6(29)	(		315,863 )	-	(	306,794 )		-
7060	Share of profit of associates and joint ventures	6(6)
	accounted for using equity method				137,994	-		128,198		-
7000	Total non-operating income and expenses				408,665	1		697,866		1
7900	Profit before income tax				3,599,042	6		3,901,323		6
7950	Income tax expense	6(30)	(		714,199 ) (	1)	(	641,681 )(		1 )
8000	Profit for the period from continuing operations				2,884,843	5		3,259,642		5
8200	Profit for the period			$	2,884,843	5	$	3,259,642		5

(Continued)

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

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

Items	Notes
Other comprehensive income (loss) 8316 Unrealized gain (loss) on valuation of equity instruments at fair value through other comprehensive income 8320 Share of other comprehensive (loss) income of associates and joint ventures accounted for using equity method that will not be reclassified to profit or loss 8349 Income tax related to the components of other comprehensive income that will not be reclassified to profit or loss 8310 Components of other comprehensive (loss) income that will not be reclassified to profit or loss 8361 Financial statements translation differences of foreign operations 8367 Unrealized loss on valuation of bond instruments at fair value through other comprehensive income 8370 Share of other comprehensive (loss) income of associates and joint ventures accounted for using equity method that will be reclassified to profit or loss 8360 Components of other comprehensive income that will be reclassified to profit or loss 8300 Total other comprehensive income 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 9850 Diluted earnings per share

Items

Notes

Other comprehensive income (loss)
8316
Unrealized gain (loss) on valuation of equity instruments at
fair value through other comprehensive income
8320
Share of other comprehensive (loss) income of associates
and joint ventures accounted for using equity method that
will not be reclassified to profit or loss
8349
Income tax related to the components of other
comprehensive income that will not be reclassified to
profit or loss
8310
Components of other comprehensive (loss) income that
will not be reclassified to profit or loss
8361
Financial statements translation differences of foreign
operations
8367
Unrealized loss on valuation of bond instruments at fair
value through other comprehensive income
8370
Share of other comprehensive (loss) income of associates
and joint ventures accounted for using equity method that
will be reclassified to profit or loss
8360
Components of other comprehensive income that will
be reclassified to profit or loss
8300
Total other comprehensive income 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
9850
Diluted earnings per share

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)

			Equity attribu	le to owners of the	parent	parent
Share capital – common stock	Capital surplus		Retained earnings		Other equity interest
		Legal reserve	Special reserve	Unappropriated retained earnings	Financial statements translation differences of foreign operations ($ 279,829) - 142,877 142,877 - - - - ($ 136,952) ( $ 869,908) - 191,090 191,090 - - ($ 678,818)	Unrealized gain or loss on valuation of financial assets at fair value through other comprehensive income $333,434 - 110,775 110,775 - - - - $444,209 $ 489,721 - ( 67,175) ( 67,175) - - $ 422,546
$ 10,396,223 - - - - - - - $ 10,396,223 $ 10,396,223 - - - - - $ 10,396,223	$ 45,059 - - - - 562 333 - $ 45,954 $ 46,884 - - - - - $ 46,884	$ 12,293,442 - - - - - - - $ 12,293,442 $ 13,314,081 - - - - - $ 13,314,081	$ 398,859 - - - - - - - $ 398,859 $ - - - - - - $ -	$ 12,064,862 2,907,863 - 2,907,863 - - - 46 $ 14,972,771 $ 12,845,880 2,554,443 - 2,554,443 - 162 $ 15,400,485			$44,025,027 3,259,642 278,410 3,538,052 5,167 562 333 46 $47,569,187 $ 45,227,318 2,884,843 139,423 3,024,266 ( 238`)` 162 $ 48,251,508

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
Gain on valuation of financial assets at fair value through
profit or loss
Expected credit losses

Depreciation expense

Amortization expense
Depreciation on investment property

Finance costs

Share of profit of associates and joint ventures accounted
for using equity method

(Gain) loss on disposal of property, plant and equipment,
net

Gain from lease modification

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
Cash generated from operations
Interest received
Income tax paid
Interest paid
Net cash provided by operating activities

Notes

(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
Acquisition of property, plant and equipment

Proceeds from disposal of property, plant and equipment
Guarantee deposits paid
Acquisition of intangible assets

Other non-current assets
Net cash used in investing activities
CASH FLOWS FROM FINANCING ACTIVITIES
Short-term borrowings

Proceeds from long-term borrowings

Repayment of long-term borrowings

Payments of lease liabilities

Guarantee deposits received

Other non-current liabilities

Change in non-controlling interests
Net cash used in financing activities
Effect of foreign exchange rate changes on cash and cash
equivalents
Increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period

Notes

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

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, 2020 AND 2019

(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 May 6, 2020.

3. APPLICATION OF NEW STANDARDS, AMENDMENTS AND INTERPRETATIONS

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

New standards, interpretations and amendments endorsed by FSC effective from 2020 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 9, IAS 39 and IFRS 7, ‘Interest rate benchmark reform’	Effective date by International Accounting Standards Board
	January 1, 2020 January 1, 2020 January 1, 2020

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

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

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

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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, 2019. 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, 2019.

(2) Basis of preparation

A. Except for the following items, the consolidated financial statements have been prepared under the historical cost convention:
(a) Financial assets at fair value through profit or loss.
(b) Financial assets at fair value through other comprehensive income.
(c) Defined benefit liabilities recognized based on the net amount of pension fund assets less the present value of defined benefit obligations.
B. The preparation of financial statements, in 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, 2019.
(b) The details of the individual financial statements of the Company’s subsidiaries reviewed or unreviewed by the independent accountants are summarized below:

Name of the subsidiaries	March 31,2020	March 31,2019
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	Financial statements were reviewed `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃`	Financial statements were reviewed `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃`

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Name of the subsidiaries March 31, 2020 March 31, 2019 President Pharmaceutical Corp.[Financial statements ] Financial statements were reviewed were reviewed Uni-Wonder Corp. 〃〃 Other subsidiaries[Financial statements ] Financial statements were unreviewed were unreviewed

(c) The financial statements of the subsidiary, Philippine Seven Corp., for the year ended December 31, 2019 were audited by other independent accountants, and the financial statements of other subsidiaries were audited by the same independent accountants as that 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 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 Marketing Consultant Corp. President Lanyang Art Corporation Cold Stone Creamery Taiwan Ltd. President Chain Store Corporation Insurance Brokers Co., Ltd. 21 Century Co., Ltd. President Being Corp. 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 Service Corp. Uni-President Department Store 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 Operation of chain restaurants Sports and entertainment business Bread and pastry retailer Enterprise management consultancy Electronic ticketing and electronic payment 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	Ownership (%)	Ownership (%)	March 31, 2019 100.00 92.20 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 90.00 86.76 86.00 80.87 73.74 70.00 70.00	Description
			March 31, 2020 100.00 92.20 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 90.00 86.76 86.00 80.87 73.74 70.00 70.00	December 31, 2019 100.00 92.20 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 90.00 86.76 86.00 80.87 73.74 70.00 70.00

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Name of investor 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. Uni-President Cold- Chain Corp. Uni-President Cold- Chain Corp. Retail Support International Corp. 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	Name of subsidiary President Transnet Corp. Uni-President Cold-Chain Corp. Uni-Wonder Corp. Duskin Serve 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. President Logistics International Corp. Uni-President Logistics (BVI) Holdings Limited Retail Support Taiwan Corp. President Logistics International Corp. President Logistics International Corp. Chieh Shun Logistics International Corp. Books.com. (BVI) Ltd. Beijing Bokelai Customer Co. Tong Ching Corporation President Pharmaceutical (Hong Kong) Holdings Limited President (Shanghai) Health Product Trading Company Ltd. Philippine Seven Corporation Convenience Distribution Inc.	Main business activities Delivery service Low-temperature logistics and warehousing Coffee chain store Cleaning instruments leasing and selling Retail business without shop Room-temperature logistics and warehousing Professional investment Professional investment Wholesale of merchandise Trucking Trucking Professional investment Room-temperature logistics and warehousing 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, warehousing and retail	Ownership (%)	Ownership (%)	March 31, 2019 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 49.00 6.00 100.00 100.00 100.00 60.00 100.00 100.00 52.22 100.00	Description
			March 31, 2020 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 49.00 6.00 100.00 100.00 100.00 60.00 100.00 100.00 52.22 100.00	December 31, 2019 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 49.00 6.00 100.00 100.00 100.00 60.00 100.00 100.00 52.22 100.00
						(a)

~15~

Name of investor 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 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 Store Sites Holding, 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 Shanghai Cold Stone Ice Cream Corporation Ltd. President Chain Store (Taizhou) Ltd. President Chain Store (Zhejiang) Ltd. Beauty Wonder (Zhejiang) Trading Co.,Ltd. Zhejiang Uni-Champion Logistics Development Co., Ltd. President Logistic ShanDong Co., Ltd. Shanghai President Chain Store Corporation Trade Co., Ltd. Zhejiang Uni-Champion Logistics Development Co., Ltd. Ren Hui Holding Co., Ltd. Shan Dong President Yinzuo Commercial Limited	Main business activities Professional investment Professional investment Operation of chain store Logistics and warehousing Professional investment Supermarkets Sales of ice cream Logistics and warehousing Operation of chain store Sales of cosmetics and medicine Logistics and warehousing Logistics and warehousing Trade of food and commodities Logistics and warehousing Professional investment Supermarkets	Ownership (%)	Ownership (%)	March 31, 2019 100.00 7.80 100.00 100.00 100.00 40.00 100.00 100.00 100.00 100.00 50.00 100.00 100.00 50.00 100.00 15.00	Description
			March 31, 2020 100.00 7.80 100.00 100.00 - 40.00 100.00 100.00 100.00 100.00 50.00 100.00 - 50.00 100.00 15.00	December 31, 2019 100.00 7.80 100.00 100.00 - 40.00 100.00 100.00 100.00 100.00 50.00 100.00 - 50.00 100.00 15.00
						(b) (c)

(a) As the Company controls the financial and operating policies of Retail Support International Corp., the latter is included as a subsidiary in the consolidated financial statements.
(b) The Company liquidated the subsidiary, PCSC Restaurant (Cayman) Holdings Limited, and the process of cancellation of registration has been completed in September 2019.
(c) The Company liquidated the subsidiary, Shanghai President Chain Store Corporation Trade Co., Ltd., and the process of cancellation of registration has been completed in May 2019.

~16~

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) Employee benefits

Defined benefit plans

Pension cost for the interim period is calculated on a year-to-date basis by using the pension cost rate derived from the actuarial valuation at the end of the prior financial year, adjusted for significant market fluctuations since that time and for significant curtailments, settlements, or other significant one-off events. And, the related information is disclosed accordingly.

(5) Income tax
A. The interim period income tax expense is recognized based on the estimated average annual effective income tax rate expected for the full financial year applied to the pretax income of the interim period, and the related information is disclosed accordingly.
B. If a change in tax rate is enacted or substantively enacted in an interim period, the Group recognizes the effect of the change immediately in the interim period in which the change occurs. The effect of the change on items recognized outside profit or loss is recognized in other comprehensive income or equity while the effect of the change on items recognized in profit or loss is recognized in profit or loss.

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, 2019.

6. DETAILS OF SIGNIFICANT ACCOUNTS

(1) Cash and cash equivalents

e year ended December 31, 2019. AILS OF SIGNIFICANT ACCOUNTS Cash and cash equivalents
	March 31, 2020	December 31, 2019	March 31, 2019
Cash on hand and petty cash	$ 1,091,164	$ 1,680,411	$ 1,553,036
Checking accounts and demand deposits
	10,586,880	9,606,131	11,431,429

Cash equivalents
Time deposits	27,290,228	26,620,058	26,329,892
Short-term financial instruments	6,651,044	7,538,795	7,302,968
	$ 45,619,316	$ 45,445,395	$ 46,617,325

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.

~17~

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

	March 31, 2020	December 31,2019	March 31, 2019
Financial assets mandatorily
measured at fair value
through profit or loss
Current items:
Beneficiary certificates	$ 1,681,688	$ 1,696,276	$ 1,417,530
Valuation adjustment	364	24	161
	$ 1,682,052	$ 1,696,300	$ 1,417,691

Non-current items:
Unlisted stocks	$ 275,285	$ 275,285	$ 275,403
Valuation adjustment	( 189,720)	( 189,720)	( 189,720)
	$ 85,565	$ 85,565	$ 85,683

A. The Group recognized net profit of $2,311 and $1,454 in relation to financial assets at fair value through profit or loss for the three-month periods ended March 31, 2020 and 2019, respectively.
B. No financial assets at fair value through profit or loss of the Group were pledged to others.
C. Information relating to credit risk is provided in Note 12(2).
(3) Accounts receivable

Accounts receivable
	March 31, 2020	December 31, 2019	March 31, 2019
Accounts receivable	$ 4,090,710	$ 5,864,309	$ 4,926,942
Less: Allowance for doubtful accounts		55,829) (
	( 55,716) (		51,682 )
	$ 4,034,994	$ 5,808,480	$ 4,875,260
A. The ageing analysis of accounts receivable that were past due but not impaired is March 31, 2020 December 31, 2019 Not past due $ 3,777,401 $ 5,508,376 Up to 90 days 299,124 335,189 91 to 180 days 13,200 18,625 181 to 365 days 985 63 Over 365 days - 2,056 $ 4,090,710 $ 5,864,309			as follows:
	March 31, 2020	December 31, 2019	March 31, 2019
	$ 3,777,401	$ 5,508,376	$ 4,794,181
	299,124	335,189	120,574
	13,200	18,625	11,927
	985	63	217
	-	2,056	43
	$ 4,090,710	$ 5,864,309	$ 4,926,942

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. As of March 31, 2020, December 31,2019 and March,31 2019, accounts receivable was all from contracts with customers. And as of January 1, 2019, the balance of receivables from contracts with customers amounted to $5,264,573.
C. As at March 31, 2020, December 31, 2019 and March 31, 2019, without taking into account any collateral held or other credit enhancements, the maximum exposure to credit risk in respect of the amount that best represents the Group’s accounts receivable were $4,034,994, $5,808,480, and $4,875,260, respectively.
D. Information relating to credit risk is provided in Note 12(2).

~18~

(4) Inventories

Inventories
		March 31, 2020
		Allowance for
	Cost	valuation loss	Book value
Raw materials and work in process	$ 76,276	$ -	$ 76,276
Merchandise and finished goods	14,267,692 (	115,610)	14,152,082

	$ 14,343,968 (	$ 115,610)	$ 14,228,358


		December 31, 2019
		Allowance for
	Cost	valuation loss	Cost
Raw materials and work in process	$ 71,106	$ -	$ 71,106
Merchandise and finished goods	15,712,547 (	124,541)	15,588,006
	$ 15,783,653 (	$ 124,541)	$ 15,659,112

		March 31, 2019
		Allowance for
	Cost	valuation loss	Book value
Raw materials and work in process	$ 65,784	$ -	$ 65,784
Merchandise and finished goods	13,439,491 (	101,643)	13,337,848

	$ 13,505,275 (	$ 101,643)	$ 13,403,632

The cost of inventories recognized as expenses for the period:

	For the three-month	For the three-month period ended March 31, 2019
	period ended
	March 31, 2020
Cost of goods sold and service costs	$ 40,565,276	$ 39,508,537
(Gain on reversal) loss on valuation of inventories ( 8,931)		5,957
Spoilage	592,958	495,878
Others	76,135	69,097
	$ 41,225,438	$ 40,079,469

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, 2020.

~19~

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

	March 31, 2020	December 31, 2019	March 31, 2019
Debt instruments
Government bonds	$ -	$ -	$ 199,975
Valuation adjustment	-	-	388
	-	-	200,363
Equity instruments
Listed stocks	265,606	265,606	265,606
Unlisted stocks	4,348	4,348	4,348
	269,954	269,954	269,954
Valuation adjustment	468,892	537,161	487,577
	738,846	807,115	757,531
	$ 738,846	$ 807,115	$ 957,894

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 $738,846, $807,115 and $757,531 as at March 31, 2020, December 31, 2019 and March 31, 2019, 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:

air value through other comprehensive income are listed below:
	For the three-month	For the three-month
	period ended	period ended
	March 31, 2020	March 31, 2019
Equity instruments at fair value through other comprehensive income
Fair value change recognized in other comprehensive income (	$ 68,269)	$ 112,917

Debt instruments at fair value through other comprehensive income
Fair value change recognized in other comprehensive income	$ -	($ 395)
Interest income recognized in profit or loss	$ -	$ 590

C. As at March 31, 2020, December 31, 2019 and March 31, 2019, without taking into account any collateral held or other credit enhancements, the maximum exposure to credit risk in respect of the amount that best represents the financial assets at fair value through other comprehensive income held by the Group was $738,846, $807,115, and $957,894, 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).

~20~

(6) Investments accounted for using the equity method

	March 31, 2020	December 31, 2019	March 31, 2019
Associates
PresiCarre Corp.	$ 5,845,102	$ 5,723,198	$ 5,617,205
President Fair Development Corp.	2,050,547	2,039,406	1,995,044
Uni-President Development Corp.	766,890	764,191	760,430
President International Development
Corp.	468,165	459,696	469,688
Tung Ho Development Corp.	100,617	106,384	112,705
Uni-President Organics Corp.	44,822	41,430	42,695
President Technology Corp.	20,665	20,866	20,160
	9,296,808	9,155,171	9,017,927
Joint ventures
Mister Donut Taiwan Corp., Ltd.	$ 95,813	$ 100,768	$ 113,140
	$ 9,392,621	$ 9,255,939	$ 9,131,067

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

below:
	For the three-month	For the three-month
	period ended	period ended
	March 31, 2020	March 31, 2019
Total comprehensive income	$ 141,473	$ 124,847

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

below:
	For the three-month	For the three-month
	period ended	period ended
	March 31, 2020	March 31, 2019
Total comprehensive (loss) income (	$ 4,955)	$ 5,261

~21~

(7) Property, plant and equipment

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

Land			2020			Total
	Buildings	Transportation equipment	Operating equipment	Leasehold improvements	Others
$ 2,254,656	$ 4,788,540	$ 6,648,230	$ 22,280,204	$ 19,092,068	$ 10,972,281	$ 66,035,979
( 16,367) (	2,182,810 )	( 4,554,359)	( 14,479,044)	( 12,277,549)	(6,507,528)	( 40,017,657)
$ 2,238,289	$ 2,605,730	$ 2,093,871	$ 7,801,160	$ 6,814,519	$ 4,464,753	$ 26,018,322

$ 2,238,289	$ 2,605,730	$ 2,093,871	$ 7,801,160	$ 6,814,519	$ 4,464,753	$ 26,018,322
-	306	81,721	642,950	561,702	392,936	1,679,615
-	-	( 1,651) ( 9,375) ( 19,946) ( 1,222 )				( 32,194 )
-	1,138	51,015 11,428 110,777 ( 181,123 ) ( 6,765 )
- (	50,590 )	( 125,748) ( 591,207) ( 507,206) ( 359,326 ) ( 1,634,197 )
175 (	1,003)	( 362)	( 4,347)	8,607	20,742	23,812
$ 2,238,464	$ 2,555,581	$ 2,098,846	$ 7,850,609	$ 6,968,633	$ 4,336,460	$ 26,048,593
$ 2,254,830	$ 4,789,196	$ 6,700,368	$ 22,597,919	$ 19,592,801	$ 11,196,962	$ 67,132,076
( 16,366) (	2,233,615 )	( 4,601,522)	( 14,747,310)	( 12,624,168)	( 6,860,502 )	( 41,083,483 )
$ 2,238,464	$ 2,555,581	$ 2,098,846	$ 7,850,609	$ 6,968,633	$ 4,336,460	$ 26,048,593

~22~

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

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

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

~23~

`－` (8) Leasing arrangements lessee

A. The Group leases various assets including land, buildings, transportation equipment, etc. Rental contracts are typically made for periods of 1 to 41 years. Lease terms are negotiated on an individual basis and contain a wide range of different terms and conditions. The lease agreements do not impose covenants, but leased assets may not be used as security for borrowing purposes.
B. The carrying amount of right-of-use assets and the depreciation charge are as follows:

Land Buildings Machinery and equipment Other equipment Land Buildings Machinery and equipment Other equipment	March 31, 2020 December 31, 2019 March 31, 2019 Carrying amount Carrying amount Carrying amount $ 642,203 $ 677,359 $ 759,016 67,601,383 66,682,465 51,227,078 63,147 72,211 90,993 55,516 57,577 424,044 $ 68,362,249 $ 67,489,612 $ 52,501,131 For the three-month period ended March 31, 2020 For the three-month period ended March 31, 2019 Depreciationcharge Depreciationcharge $ 35,682 $ 29,269 3,042,420 2,850,430 9,064 12,169 6,079 27,827 $ 3,093,245 $ 2,919,695	March 31, 2020 December 31, 2019 March 31, 2019 Carrying amount Carrying amount Carrying amount $ 642,203 $ 677,359 $ 759,016 67,601,383 66,682,465 51,227,078 63,147 72,211 90,993 55,516 57,577 424,044 $ 68,362,249 $ 67,489,612 $ 52,501,131 For the three-month period ended March 31, 2020 For the three-month period ended March 31, 2019 Depreciationcharge Depreciationcharge $ 35,682 $ 29,269 3,042,420 2,850,430 9,064 12,169 6,079 27,827 $ 3,093,245 $ 2,919,695

		Depreciationcharge
		$ 29,269 2,850,430 12,169 27,827
		$ 2,919,695

C. For the three-month periods ended March 31, 2020 and 2019, the additions to right-of-use assets were $4,448,312 and $2,693,894, respectively.
D. The information on income and expense accounts relating to lease contracts is as follows:

Items affecting profit or loss Interest expense on lease liabilities Expense on short-term lease contracts Expense on leases of low-value assets Expense on variable lease payments Gain on sublease of right-of-use assets Gain from lease modification	For the three-month period ended March 31, 2020 $ 287,975 116,655 20,773 139,287 137,655 18,161	For the three-month period ended March 31, 2019
		$ 271,393 60,908 15,328 110,240 107,694 -

E. For the three-month periods ended March 31, 2020 and 2019, the Group’s total cash outflow for leases were $3,495,081 and $3,420,321, respectively.

~24~

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%~3.81% 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 $1,393 and $1,102 at March 31, 2020 and 2019, respectively.
G. The Group’s leases not yet commenced to which the lessee is committed are business premises for the lessees, and the lease liabilities undiscounted as at March 31, 2020, December 31, 2019 and March 31, 2019 amounted to $2,583,972, $2,597,780 and $14,559,917, respectively.

`－` (9) Leasing arrangements lessor

A. The Group leases various assets including land, buildings, machinery and equipment, etc. Rental contracts are typically made for periods of 1 and 35 years. Lease terms are negotiated on an individual basis and contain a wide range of different terms and conditions.
B. Information on profit or loss in relation to lease contracts is as follows:

Rental revenue Rental revenue from variable lease payments	For the three-month period ended March 31, 2020 $ 345,827 $ 257,154	For the three-month period ended March 31, 2019
		$ 367,922 $ 287,673

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

Current year Within 1 year 1~2 years 2~3 years 3~4 years 4~5 years Over 5 years Total	March 31, 2020 $ 257,143 277,599 204,492 133,006 59,318 51,266 105,683 $ 1,088,507	December 31, 2019 $ - 256,072 206,455 148,086 90,464 60,519 158,193 $ 919,789	March 31, 2019
			$ 367,922 706,035 392,304 156,089 91,287 49,005 21,259
			$ 1,783,901

The above maturity analysis was based on the period ended December 31.

~25~

(10) Investment property

nvestment property
At January 1 Depreciation charge At March 31 At January 1 Depreciation charge Transfer At March 31		2020
	Land $ 1,078,295 - ( $ 1,078,295	Buildings $ 428,503 4,246) ( $ 424,257 2019
	Land $ 1,059,538 - ( 18,757 $ 1,078,295

The fair value of the investment property held by the Group ranged from $4,027,091 to $4,125,700 as at March 31, 2020, December 31, 2019, and March 31, 2019, 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.

(11) Intangible assets

Intangible assets
Software At January 1 Cost $ 1,853,119 Accumulated amortization and impairment (1,375,833 ) $ 477,286 Opening net book amount as of January 1 $ 477,286 Additions 23,938 Transfer 1,468 Amortization expenses ( 50,562 ) Net exchange differences ( 34 ) Closing net book amount as of March 31 $ 452,096 At March 31 Cost $ 1,875,872 Accumulated amortization and impairment (1,423,776 ) $ 452,096	Software		2020			Total
		Goodwill	License agreement and customer list		Others
	$ 1,853,119	$ 2,202,925	$ 7,524,890		$ 493,171	$12,074,105
						1,902,663 )
	1,375,833 )	- (	388,319)	(	138,511) (
	$ 477,286	$ 2,202,925	$ 7,136,571		$ 354,660	$ 10,171,442
						$ 10,171,442
	$ 477,286	$ 2,202,925	$ 7,136,571		$ 354,660
	23,938	-	-		4,518	28,456
	1,468	-	-	( 2,404) ( 936)
		- ( 48,540 )		( 12,950) ( 112,052)
	34 )	453	-		28	447
	$ 452,096	$ 2,203,378	$ 7,088,031		$ 343,852	$ 10,087,357
	$ 1,875,872	$ 2,203,378	$ 7,524,890		$ 495,061	$ 12,099,201
						2,011,844 )
	1,423,776 )	- (	436,859)	(	151,209) (
	$ 452,096	$ 2,203,378	$ 7,088,031		$ 343,852	$ 10,087,357

~26~

Software		2019		Total
	Goodwill	License agreement and customer list	Others
$ 1,648,652	$ 2,204,284	$ 7,524,890	$ 469,957	$ 11,847,783

1,164,405 )	- (	194,160) (	95,338) (	1,453,903 )
$ 484,247	$ 2,204,284	$ 7,330,730	$ 374,619	$ 10,393,880

$ 484,247	$ 2,204,284	$ 7,330,730	$ 374,619	$ 10,393,880
4,259	-	-	-	4,259
-	-	- ( 1,111 ) ( 1,111 )
	- ( 48,540 ) ( 10,163 ) ( 122,592 )
2,655	194	-	2,143	4,992
$ 427,272	$ 2,204,478	$ 7,282,190	$ 365,488	$ 10,279,428
$ 1,657,709	$ 2,204,478	$ 7,524,890	$ 468,859	$ 11,855,936

1,230,437 )	- (	242,700) (	103,371) (	1,576,508 )
$ 427,272	$ 2,204,478	$ 7,282,190	$ 365,488	$ 10,279,428

Amortization expenses on intangible assets are recognized as operating expenses.

(12) Other non-current assets

Guarantee deposits paid Others	March 31, 2020 $ 2,970,371 687,328 $ 3,657,699	December 31, 2019 $ 2,911,887 787,932 $ 3,699,819	March 31, 2019 $ 2,796,768 307,855 $ 3,104,623

(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, 2020 and 2019.
B. The Group performs impairment testing annually. The recoverable amount has been determined based on value-in-use calculations. These calculations use pre-tax cash flow projections based on financial budgets approved by the management covering a five-year period. The recoverable amount calculated using the value-in-use exceeded their carrying amount for the quarter ended December 31, 2019, so goodwill was not impaired. The key assumptions used for value-in-use calculations is provided in Note 6(13) in the consolidated financial statements for the year ended December 31, 2019.

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(14) 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, 2020 $ 5,088,654 December 31, 2019 $ 6,014,658 March 31, 2019 $ 4,376,596	Interest rate range 0.65%~5.75% Interest rate range 0.65%~5.75% Interest rate range 0.65%~6.00%	Collateral
			None Collateral
			None Collateral
			None

There was no capitalization of borrowing costs for the three-month periods ended March 31, 2020 and 2019. 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 Employees’ compensation and remuneration for directors and supervisors Incentive bonus payable to franchisees Payables for acquisition of property, plant and equipment Payables for labor and health insurance Rent payable Others Other current liabilities Advance receipts for gift certificates Advance receipts of deposits in ICASH cards Current portion of long-term liabilities Others	March 31, 2020 $ 11,633,453 3,044,579 1,317,242 1,089,679 976,933 491,444 238,341 62,494 3,489,641 $ 22,343,806 March 31, 2020 $ 1,342,457 1,321,003 222,408 302,463 $ 3,188,331	December 31, 2019 $ 11,453,224 5,206,353 1,345,877 872,361 1,158,473 1,364,370 248,584 66,133 4,881,130 $ 26,596,505 December 31, 2019 $ 1,351,370 1,298,919 221,888 277,414 $ 3,149,591	March 31, 2019 $ 12,419,956 3,586,976 936,656 536,858 772,471 519,701 240,713 57,645 4,324,405 $ 23,395,381 March 31, 2019 $ 1,308,768 1,230,798 393,711 277,716 $ 3,210,993

(16) Other current liabilities

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- (17) Long term borrowings

Type of borrowings Long-term bank borrowings Credit loan Secured borrowings Less: Current portion Type of borrowings Long-term bank borrowings Credit loan Secured borrowings Less: Current portion Type of borrowings Long-term bank borrowings Credit loan Secured borrowings Less: Current portion	Interest rate range 4.931%~4.98% 1.68%~1.94% Interest rate range 4.88%~5.32% 1.67%~1.96% Interest rate range 0.79%~6.776% 1.73%~1.96%	Collateral None Property, plant and equipment ( Collateral None Property, plant and equipment ( Collateral None Property, plant and equipment (	March 31, 2020 $ 267,737 454,351 722,088 222,408) $ 499,680 December 31, 2019 $ 292,288 437,712 730,000 221,888) $ 508,112 March 31, 2019 $ 642,396 443,862 1,086,258 393,711) $ 692,547

There was no capitalization of borrowing costs for the three-month periods ended March 31, 2020 and 2019. Relevant interest expense on borrowings is recognized as “finance costs”.

(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 insufficient to pay the pension calculated by the aforementioned method to the employees expected to qualify for retirement in the following year, the Company and its domestic subsidiaries will make contributions for the deficit by next March. Also, the subsidiary, Philippine Seven Corporation has defined benefit pension plan.

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For the aforementioned pension plan, the Group recognized pension costs of $32,925 and $33,801 for the three-month periods ended March 31, 2020 and 2019, 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, 2020 and 2019 were 14%~20%. Other than the monthly contributions, the Group has no further obligations.
(b) The pension costs under the defined contribution pension plans of the Group for the three-month periods ended March 31, 2020 and 2019 were $234,942 and $236,308, respectively.

(19) Other non-current liabilities

Guarantee deposit received Provision for decommissioning liability Deferred income Others	March 31, 2020 $ 3,600,244 528,475 20,186 283,237 $ 4,432,142	December 31, 2019 $ 3,560,485 508,707 17,285 282,343 $ 4,368,820	March 31, 2019 $ 3,419,854 462,148 15,166 276,845 $ 4,174,013

(20) Share capital

As of March 31, 2020, the Company’s authorized capital was $10,500,000, consisting of 1,050,000,000 shares of ordinary stock, and the paid-in capital was $10,396,223 with a par value of $10 (in dollars) per share. All proceeds from shares issued have been collected. The number of the Company’s outstanding ordinary shares was both 1,039,622,255 as of March 31, 2020 and January 1, 2020.

(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.

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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 2019 and 2018 were resolved by the Board of Directors and by the shareholders on February 27, 2020 and June 12, 2019, respectively, as follows:

Legal reserve Special reserve Cash dividends	2019 2018 Dividends per share Dividends per share Amount (in dollars) Amount (in dollars) $ 1,055,147 $ 1,020,639 380,187 ( 398,859) 9,356,600 $ 9.00 9,148,676 $ 8.80	2019 2018 Dividends per share Dividends per share Amount (in dollars) Amount (in dollars) $ 1,055,147 $ 1,020,639 380,187 ( 398,859) 9,356,600 $ 9.00 9,148,676 $ 8.80
	Amount $ 1,055,147 380,187 9,356,600
		$ 8.80

As of May 6, 2020, the appropriations for 2019 has not been resolved by the stockholders.

(23) Other equity items

					2020
				Unrealized gains (losses)
					on valuation of
		Financial			financial assets
		statements			at fair value
		translation			through other
		differences of			comprehensive
		foreign operations			income		Total
At January 1	($	869,908)		$	489,721	($	380,187)
Revaluation:
–Group			-	(	68,269)	(	68,269)
–Associates			-	(	1,476)	(	1,476)
Revaluation-tax			-		2,570		2,570
Currency translation
differences:
–Group		191,090			-		191,090
At March 31	($	678,818)		$	422,546	($	256,272)

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2019

Financial statements translation differences of foreign operations At January 1 ($ 279,829) Revaluation: –Group - –Associates - Revaluation-tax - Currency translation differences: –Group 143,075 –Associates ( 198) At March 31 ($ 136,952)	Unrealized gains (losses) on valuation of financial assets at fair value through other comprehensive income $ 333,434 112,522 2,108 ( 3,855) - - $ 444,209	Total $ 53,605 112,522 2,108 ( 3,855) 143,075 ( 198) $ 307,257

(24) Operating revenue

Revenue from contracts with customers	For the three-month period ended March 31, 2020 $ 63,049,749	For the three-month period ended March 31, 2019 $ 61,085,396

A. Disaggregation of revenue from contracts with customers

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

For the three-month period ended March 31, 2020	Convenience stores $ 38,888,816 205,258 $ 39,094,074 Convenience stores $ 37,652,384 122,235 $ 37,774,619	Retail business group $ 15,008,085 3,517,739 $ 18,525,824 Retail business group $ 14,930,531 2,873,172 $ 17,803,703	Logistics business group $ 169,350 362,238 $ 531,588 Logistics business group $ 481,624 52,968 $ 534,592	Others $ 4,736,681 161,582 $ 4,898,263 Others $ 4,756,022 216,460 $ 4,972,482	Total $ 58,802,932 4,246,817 $ 63,049,749 Total $ 57,820,561 3,264,835 $ 61,085,396
Timing of revenue recognition –At a point in time –Over time For the three-month period ended March 31, 2019 Timing of revenue recognition –At a point in time –Over time

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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 Contract liabilities– current Contract liabilities– non-current	March 31, 2020 $ 1,860,655 793,921 458,435 500,668 340,606 $ 3,954,285 March 31, 2020 $ 3,519,856 434,429 $ 3,954,285	December 31, 2019 $ 1,786,894 793,115 444,470 503,861 363,291 $ 3,891,631 December 31, 2019 $ 3,443,383 448,248 $ 3,891,631	March 31, 2019 $ 1,346,265 886,354 333,635 327,892 362,087 $ 3,256,233 March 31, 2019 $ 3,022,466 233,767 $ 3,256,233	January 1, 2019 $ 1,392,390 764,782 230,812 344,970 344,656
				$ 3,077,610
				January 1, 2019 $ 2,843,189 234,421 $ 3,077,610

(b) Revenues recognized that were included in the contract liabilities balance at the beginning were $1,979,686 and $1,385,982 for the three-month periods ended March 31, 2020 and 2019, respectively.

(25) Expenses by nature

Net cost of goods sold Employee benefit expense Incentive bonuses for franchisees Depreciation and amortization Utilities expense Operating lease payments Other costs and expenses Total operating costs and operating expenses	For the three-month period ended March 31, 2020 $ 36,767,683 6,546,661 5,396,483 4,865,331 1,048,261 276,715 4,958,238 $ 59,859,372	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

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(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, 2020 $ 5,413,344 506,446 267,867 359,004 $ 6,546,661	For the three-month period ended March 31, 2019 $ 5,273,841 520,799 270,109 339,948
		$ 6,404,697

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, 2020 and 2019, employees’ compensation was accrued at $139,663 and $150,828, respectively; while directors’ and supervisors’ remuneration was accrued at $46,661 and $50,391, 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, 2020, respectively.

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

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

(27) Other income

Interest income Grants income Rental revenue Others	For the three-month period ended March 31, 2020 $ 166,841 178,615 69,218 144,024 $ 558,698	For the three-month period ended March 31, 2019 $ 196,690 153,579 73,061 466,532 $ 889,862

(28) Other gains and losses

Gain (loss) on disposal of property, plant and equipment Gain from lease modification Other losses (	For the three-month period ended March 31, 2020 For the three-month period ended March 31, 2019 $ 19,318 ($ 3,472) 18,161 - 9,643) ( 9,928) $ 27,836 ($ 13,400)

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(29) Finance costs

Finance costs
For the three-month period ended March 31, 2020 For the three-month period ended March 31, 2019 Interest expense $ 315,863 $ 306,794 Income tax A. Income tax expense (a) Components of income tax expense: For the three-month period ended March 31, 2020 For the three-month period ended March 31, 2019 Current tax: Current tax on profits for the period $ 766,040 $ 603,867 Under provision of prior year’s income tax 1 1,368 Total current tax 766,041 605,235 Deferred tax: Origination and reversal of temporary differences ( 51,842) 36,446 Total deferred tax ( 51,842) 36,446 Income tax expense $ 714,199 $ 641,681 (b) The income tax charge relating to the components of other comprehensive income is as follows: For the three-month period ended March 31, 2020 For the three-month period ended March 31, 2019 Changes in fair value of financial assets at fair value through other comprehensive income ($ 2,570) $ 3,855		For the three-month period ended March 31, 2019 306,794 For the three-month period ended March 31, 2019
	$
		$ 603,867 1,368
		605,235
		36,446
		36,446
		$ 641,681

(30) Income tax
A. Income tax expense

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

(31) Earnings per share

Basic earnings per share Profit attributable to ordinary shareholders of the parent Diluted earnings per share Profit attributable to ordinary shareholders of the parent Assumed conversion of all dilutive potential ordinary shares Employees’ compensation Shareholders of the parent plus assumed conversion of all dilutive potential ordinary shares	For the three-month period ended March 31, 2020 Amount Weighted average number of ordinary shares outstanding Earnings per share after tax (shares in thousands) (in dollars) $ 2,554,443 1,039,622 $ 2.46 $ 2,554,443 1,039,622 - 1,766 $ 2,554,443 1,041,388 $ 2.45	For the three-month period ended March 31, 2020 Amount Weighted average number of ordinary shares outstanding Earnings per share after tax (shares in thousands) (in dollars) $ 2,554,443 1,039,622 $ 2.46 $ 2,554,443 1,039,622 - 1,766 $ 2,554,443 1,041,388 $ 2.45
	Amount after tax $ 2,554,443 $ 2,554,443 - $ 2,554,443	Weighted average number of ordinary shares outstanding (shares in thousands) 1,039,622 1,039,622 1,766 1,041,388

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For the three-month period ended March 31, 2019

Basic earnings per share Profit attributable to ordinary shareholders of the parent Diluted earnings per share Profit attributable to ordinary shareholders of the parent Assumed conversion of all dilutive potential ordinary shares Employees’ compensation Shareholders of the parent plus assumed conversion of all dilutive potential ordinary shares	Amount after tax $ 2,907,863 $ 2,907,863 - $ 2,907,863	Weighted average number of ordinary shares outstanding (shares in thousands) 1,039,622 1,039,622 1,710 1,041,332	Earnings per share (in dollars) $ 2.80 $ 2.79

(32)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, 2020 $ 1,679,615 1,364,370 ( 491,444) $ 2,552,541	For the three-month period ended March 31, 2019 $ 1,356,059 914,557 ( 519,701) $ 1,750,915

(33) Changes in liabilities from financing activities

2020

Short-term borrowings At January 1 $ 6,014,658 Changes in cash flow from financing activities ( 926,004) Interest paid (Note) - Impact of changes in foreign exchange rate - Changes in other non-cash items - At March 31 $ 5,088,654	Long-term borrowings Lease liabilities $ 508,112 $ 68,827,038 ( 10,070) ( 2,930,391) - ( 287,975) 1,457 628 181 4,120,525 $ 499,680 $ 69,729,825	Guarantee deposits received $ 3,560,485 39,759 - - - $ 3,600,244	Other non- current liabilities Liabilities from financing activities- gross $ 808,335 $ 79,718,628 3,795 ( 3,822,911 ) - ( 287,975 ) - 2,085 19,768 4,140,474 $ 831,898 $ 79,750,301

Note: Presented in cash flows from operating activities.

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2019

Short-term borrowings Long-term borrowings Lease liabilities At January 1 $ 7,237,785 $ 847,040 $ 52,938,613 Changes in cash flow from financing activities ( 2,861,189) ( 98,340) ( 3,148,928) Interest paid (Note) - - ( 271,393) Impact of changes in foreign exchange rate - 1,698 90,884 Changes in other non-cash items - ( 57,851) 3,434,737 At March 31 $ 4,376,596 $ 692,547 $ 53,043,913	Guarantee deposits received Liabilities from financing activities- gross $ 3,413,265 $ 64,436,703 6,589 ( 6,101,868) - ( 271,393) - 92,582 - 3,376,886 $ 3,419,854 $ 61,532,910

Note: Presented in cash flows from operating activities.

7. RELATED PARTY TRANSACTIONS

(1) Parent and ultimate controlling party

The Company’s parent company and the Group’s ultimate parent company is Uni-President Enterprises Corp. which holds a 45.4% equity interest in the Company as of March 31, 2020.

(2) Names of related parties and relationship

Names of related parties Relationship with the Group Uni-President Enterprises Corp. Ultimate parent company Mister Donut Taiwan Co., Ltd. Investee of the Company accounted for using the equity method

President Fair Development Corp. Uni-President Development Corp. Presco Netmarketing Inc Tait Marketing & Distribution Co., Ltd. Tung Ang Enterprises Corp. Lien-Bo Enterprises Corp. President Packaging Corp. President Tokyo Corp. Shanghai Songjiang President Enterprises Co., Ltd. Kai Ya Food Co., Ltd. Kuang Chuan Dairy Corp.

Weilih Food Industrial Co., Ltd. Prince Housing Development Corp. Tung Chan Enterprises Corp.

Koasa Yamako Corp.

〃

`〃`

Subsidiary of ultimate parent company 〃〃〃〃

〃

`〃`

Sub-subsidiary of ultimate parent company Investee of ultimate parent company accounted for using the equity method

〃

〃

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

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(3) Significant related party transactions and balances

A. Operating revenue

Operating revenue
Sales of goods Ultimate parent company Associates Sister companies Other related parties Sales of services Ultimate parent company Associates Sister companies Other related parties	For the three-month period ended March 31, 2020 $ 143,319 34,103 82,374 15,884 4,547 19,619 3,363 1,159 $ 304,368	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

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

B. Purchases

Purchases
Ultimate parent company Associates Sister companies Other related parties	For the three-month period ended March 31, 2020 $ 3,957,927 53,048 1,180,009 544,989 $ 5,735,973	For the three-month period ended March 31, 2019
		$ 3,877,405 71,263 953,065 518,899
		$ 5,420,632

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

C. Receivables from related parties

Accounts receivable Ultimate parent company Associates Sister companies Other related parties	March 31, 2020 $ 147,799 56,484 42,484 3,344 $ 250,111	December 31, 2019 $ 245,123 64,598 81,774 4,289 $ 395,784	March 31, 2019 $ 157,875 66,486 42,091 4,350 $ 270,802

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.

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D. Payables to related parties

Notes payable and accounts payable Ultimate parent company Associates Sister companies Other related parties	March 31, 2020 $ 1,792,628 32,577 563,947 309,038 $ 2,698,190	December 31, 2019 $ 1,765,350 65,907 583,883 348,524 $ 2,763,664	March 31, 2019 $ 1,722,309 60,604 448,433 358,115 $ 2,589,461

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

`－` E. Leasing arrangements lessee

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

(b) Lease liabilities

Ultimate parent company Associates Sister companies Other related parties	March 31, 2020 $ 117,474 445,314 288,094 511,971 $ 1,362,853	December 31, 2019 $ 128,016 546,049 294,591 524,690 $ 1,493,346	March 31, 2019 $ 67,173 825,898 318,804 39,084 $ 1,250,959

(4) Key management compensation

Short-term employee benefits

For the three-month period ended March 31, 2020 $ 173,827	For the three-month period ended March 31, 2019
	$ 179,085

8. PLEDGED ASSETS

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

Pledged asset		Book value	March 31, 2019 Purpose $ 128,643 Long-term and short-term borrowings and guarantee facilities 26,122 Long-term and short-term borrowings and guarantee facilities 589,852 Long-term borrowings and long-term installment payable 55,615 Performance guarantee $ 800,232
	March 31, 2020 $ 128,643 39,460 616,853 61,456 $ 846,412	December 31, 2019 $ 128,643 42,130 591,493 61,925 $ 824,191
Land Buildings Transportation equipment Pledged time deposits (Recognized as “Other non-current assets – guarantee deposits paid ”)

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9. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNIZED CONTRACT COMMITMENTS

None.

10. SIGNIFICANT DISASTER LOSS

None.

11. SIGNIFICANT SUBSEQUENT EVENTS

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.

(2)Financial instruments

A. Financial instruments by category

ancial instruments Financial instruments by category
Financial assets Financial assets at fair value through profit or loss Financial assets mandatorily measured at fair value through profit or loss Financial assets at fair value through other comprehensive income Designation of equity instrument Qualifying debt instrument Financial assets at amortized cost Cash and cash equivalents Accounts receivable, net Other receivables Other current assets (Note) Guarantee deposits paid Other non-current assets (Note) Financial liabilities Financial liabilities at amortized cost Short-term borrowings Notes payable Accounts payable (including related party) Other payables Long-term borrowings (including current portion) Guarantee deposits received Lease liabilities	March 31, 2020 $ 1,767,617 $ 738,846 - 738,846 $ 45,619,316 4,034,994 1,956,561 2,270,978 2,970,371 30,461 56,882,681 $ 59,389,144 $ 5,088,654 1,102,302 22,774,483 22,343,806 722,088 3,600,244 55,631,577 $ 69,729,825 $ 125,361,402		December 31, 2019 $ 1,781,865 $ 807,115 - 807,115 $ 45,445,395 5,808,480 1,460,354 2,172,863 2,911,887 40,351 57,839,330 $ 60,428,310 $ 6,014,658 1,214,702 23,587,695 26,596,505 730,000 3,560,485 61,704,045 $ 68,827,038 $ 130,531,083	March 31, 2019 $ 1,503,374 $ 757,531 200,363 957,894 $ 46,617,325 4,875,260 2,033,344 1,980,174 2,796,768 37,843 58,340,714 $ 60,801,982 $ 4,376,596 2,290,148 22,146,063 23,395,381 1,086,258 3,419,854 56,714,300 $ 53,043,913 $ 109,758,213

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

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B. Risk management policies

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

C. Significant financial risks and degrees of financial risks

(a)Market risk

Foreign exchange risk

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

March 31, 2020 Foreign currency amount (In thousands) Exchange rate Book value (NTD) $ 1,391 30.2250 $ 42,043 190 4.2677 811 27,771 0.2788 7,743 447 3.8995 1,743 656 33.2400 21,805 $ 852,300 0.2788 $ 237,621 $ 6,554 30.2250 $ 198,095 1,024 4.2677 4,370 111,041 0.2788 30,958	March 31, 2020 Foreign currency amount (In thousands) Exchange rate Book value (NTD) $ 1,391 30.2250 $ 42,043 190 4.2677 811 27,771 0.2788 7,743 447 3.8995 1,743 656 33.2400 21,805 $ 852,300 0.2788 $ 237,621 $ 6,554 30.2250 $ 198,095 1,024 4.2677 4,370 111,041 0.2788 30,958	December 31, 2019	December 31, 2019	Book value (NTD)
Foreign currency amount (In thousands) $ 1,391 190 27,771 447 656 $ 852,300 $ 6,554 1,024 111,041	Exchange rate 30.2250 4.2677 0.2788 3.8995 33.2400 0.2788 30.2250 4.2677 0.2788	Foreign currency amount (In thousands) $ 792 900 43,340 766 273 $ 907,500 $ 3,610 996 52,532	Exchange rate 29.9800 4.3055 0.2760 3.8478 33.5900 0.2760 29.9800 4.3055 0.2760
				$ 23,744 3,875 11,962 2,947 9,170 $ 250,470 $ 108,228 4,288 14,499

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(Foreign currency: functional currency) Financial assets Monetary items USD: NTD RMB: NTD JPY: NTD HKD: NTD EUR: NTD Non-monetary items JPY: NTD Financial liabilities Monetary items USD: NTD RMB: NTD JPY: NTD	March 31, 2019	March 31, 2019	Book value (NTD) $ 28,601 2,296 11,955 8,555 17,270 $ 219,996 $ 106,822 6,369 55,627
	Foreign currency amount (In thousands) $ 928 500 42,956 2,179 499 $ 790,500 $ 3,466 1,387 199,882	Exchange rate 30.8200 4.5917 0.2783 3.9261 34.6100 0.2783 30.8200 4.5917 0.2783

IV. Total exchange gain, including realized and unrealized arising from significant foreign exchange variations on monetary items held by the Group amounted to $2,620 and $606 for the threemonth periods ended March 31, 2020 and 2019, respectively.
V. Analysis of foreign currency market risk arising from significant foreign exchange variation: Foreign exchange risk with respect to USD primarily arises from the exchange gain or loss resulting from foreign currency translation of cash and cash equivalents, accounts receivable and accounts payable denominated in USD. If the NTD:USD exchange rate appreciates/depreciates by 5% with all other factors remaining constant, the Group’s profit for the three-month periods ended March 31, 2020 and 2019 would increase/decrease by $7,803 and $3,911, respectively. Foreign exchange risk with respect to JPY primarily arises from the exchange gain or loss resulting from foreign currency translation of cash, 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 comprehensive income for the three-month periods ended March 31, 2020 and 2019 would increase/decrease by $10,720 and $8,817, 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 and financial assets at fair value through other comprehensive income. To manage its price risk arising from investments in equity securities, the Group diversifies its portfolio. Diversification of the portfolio is done in accordance with the limits set by the Group.
II. The Group’s investments in equity securities comprise shares and open-ended funds issued by the domestic companies. The prices of equity securities would change due to change of the future value of investee companies. If the prices of these equity securities increase/decrease by 5%, and open-ended funds increase/decrease by 0.25%, with all other variables held constant, the posttax profit for the three-month periods ended March 31, 2020 and 2019 would have increased/decreased by $8,483 and $7,828, 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 $36,942 and $37,877, respectively, as a result of other comprehensive income classified as equity investment at fair value through other comprehensive income.

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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, 2020 and 2019, the Group’s borrowings at variable rate were mainly denominated in New Taiwan dollars and Philippine Peso.
II. If the borrowing interest rate had increased/decreased by 0.25% with all other variables held constant, the post-tax profit, net of tax for the three-month periods ended March 31, 2020 and 2019 would have increased/decreased by $1,805 and $2,216, respectively. The main factor is that changes in interest expense result in floating-rate borrowings.
(b) Credit risk
I. Credit risk refers to the risk of financial loss to the Group arising from default by the clients or counterparties of financial instruments on the contract obligations. The main factor is that counterparties could not repay in full 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 adopts management of credit risk, whereby the default occurs when the contract payments are past due over 90 days.
IV. The Group assess whether there has been a significant increase in credit risk on that instrument since initial recognition if the contract payments were past due over 30 days based on the terms.
V. The Group operates a chain of retail stores, thus the ratio of accounts receivable to total asset is low, and the probability that accounts receivable can not be received is low. For accounts receivable from other transactions, the Group manages individually and follow up regularly. The Group classifies customers’ accounts receivable in accordance with credit rating of customer. The Group applies the simplified approach to estimate expected credit loss to assess the default possibility of accounts receivable. Movements in relation to the group applying the simplified approach to provide loss allowance for accounts receivable are as follows:

			2020
		Accounts receivable
At January 1		$	55,289
Provision for impairment			44
Write-offs	(		398)
Effect of foreign exchange			241
At March 31		$	55,716
			2019
		Accounts receivable
At January 1		$	55,464
Provision for impairment			1,435
Reversal of impairment	(		2,979)
Write-offs	(		18)
Effect of foreign exchange	(		2,220)
At March 31		$	51,682

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VI. 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 period ended March 31, 2019. The Group did not hold debt instrument at fair value through other comprehensive income for the three-month period ended March 31, 2020.
VII. The Group has no written-off financial assets that are still under recourse procedures on March 31, 2020, December 31, 2019 and March 31, 2019.
(c) Liquidity risk
I. Cash flow forecasting is performed by the operating entities of the Group and aggregated by the Group’s finance department. It monitors rolling forecasts of liquidity requirements to ensure the Group has sufficient cash to meet operational needs, while maintaining sufficient headroom on its undrawn committed borrowing facilities, at all times, so that the Group does not breach borrowing limits or covenants on any of its borrowing facilities. Such forecasting takes into consideration the Group’s debt financing plans, covenant compliance, and compliance with internal balance sheet ratio targets.
II. The Group invests surplus cash in interest bearing current accounts, time deposits, money market fund and marketable securities, and chooses instruments with appropriate maturities or sufficient liquidity to provide sufficient headroom as determined by the aforementioned forecasting. The Group held money market funds of $1,682,052, $1,696,300 and $1,417,691 as at March 31, 2020, December 31, 2019, and March 31, 2019, respectively, which are expected to readily generate cash inflows for the purpose of managing liquidity risk.
III. The Group has undrawn borrowing facilities of $20,983,973, $12,597,913 and $16,523,428 as of March 31, 2020, December 31, 2019 and March 31, 2019, respectively.
IV. The table below analyses the Group’s non-derivative financial liabilities into relevant maturity groupings based on the remaining period at the balance sheet date to the contractual maturity date for non-derivative financial liabilities. Except for notes payable, accounts payable and other payables, whose contractual undiscounted cash flows are about to book value, maturing within one-year, the amounts disclosed in the table are the contractual undiscounted cash flows.

Non-derivative financial liabilities:

March 31, 2020 Short-term borrowings Lease liabilities Long-term borrowings (including current portion) Non-derivative financial liabilities: December 31, 2019 Short-term borrowings Lease liabilities Long-term borrowings (including current portion)	Less than 1 year Between 1 and 2 years Between 2 and 3 years Over 3 years $ 5,102,321 $ - $ - $ - 13,174,667 13,278,391 12,040,292 37,374,186 243,913 125,485 101,337 300,066 Less than 1 year Between 1 and 2 years Between 2 and 3 years Over 3 years $ 6,020,015 $ - $ - $ - 12,331,925 12,256,464 10,678,168 37,312,481 244,733 122,071 99,136 316,524	Over 3 years

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Non-derivative financial liabilities: March 31, 2019 Short-term borrowings Lease liabilities Long-term borrowings (including current portion)	Less than 1 year $ 4,407,221 11,492,862 427,955	Between 1 and 2 years $ - 10,369,927 223,668	Between 2 and 3 years $ - 9,651,856 199,642	Over 3 years $ - 24,637,814 301,685

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

(3)Fair value information

A. The different levels of the inputs used in valuation techniques to measure the fair value of financial and non-financial instruments are defined as follows:
Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date. A market is regarded as active where a market in which transactions for the asset or liability take place with sufficient frequency and volume to provide pricing information on an ongoing basis. The fair value of the Group’s investment in listed stocks, beneficiary certificates and on-the-run Taiwan central government bonds is included in Level 1.
Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.
Level 3: Unobservable inputs for the asset or liability. The fair value of the Group’s investment in equity investments without an active market is included in Level 3.
B. Fair value information of the Group’s investment property at cost is provided in Note 6(10).
C. Financial instruments not measured at fair value
(a) Except for those listed in the table below, the carrying amounts of cash and cash equivalents, accounts receivable, other receivables, short-term borrowings, notes payable, accounts payable, other payables and long-term borrowings are approximate to their fair values.

Financial assets: Guarantee deposits paid Financial liabilities: Guarantee deposits received		March	31, 2020
	Book value $ 2,970,371 $ 3,600,244		Fair value
		Level 1 $ - $ -	Level 2 $ - $ -	Level 3 $ 2,958,741 $ 3,584,064

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December 31, 2019	December 31, 2019
	Fair value
Level 1 Level 2 $ - $ - $ - $ - March 31, 2019		Level 3 $ 2,887,439 $ 3,530,355
	Fair value
Level 1 $ - $ -	Level 2 $ - $ -	Level 3 $ 2,776,877 $ 3,389,941

(b) Guarantee deposits paid/received are measured at fair value, which is calculated based on the discounted future cash flow.
D. The related information for financial and non-financial instruments measured at fair value by level on the basis of the nature, characteristics and risks of the assets and liabilities is as follows:
(a) Classification according to the nature of assets and liabilities, relevant information is as follows:

March 31, 2020 Assets Recurring fair value measurements Financial assets at fair value through profit or loss Beneficiary certificates Equity securities Financial assets at fair value through other comprehensive income Equity securities	Level 1 $ 1,682,052 - 1,682,052 734,498 734,498 $ 2,416,550	Level 2 $ - - - - - $ -	Level 3 $ - 85,565 85,565 4,348 4,348 $ 89,913	Total $ 1,682,052 85,565 1,767,617 738,846 738,846 $ 2,506,463

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December 31, 2019 Assets Recurring fair value measurements Financial assets at fair value through profit or loss Beneficiary certificates Equity securities Financial assets at fair value through other comprehensive income Equity securities March 31, 2019 Assets Recurring fair value measurements Financial assets at fair value through profit or loss Beneficiary certificates Equity securities Financial assets at fair value through other comprehensive income Equity securities Debt securities	Level 1 $ 1,696,300 - 1,696,300 802,767 802,767 $ 2,499,067 Level 1 $ 1,417,691 - 1,417,691 753,183 200,363 953,546 $ 2,371,237	Level 2 $ - - - - - $ - Level 2 $ - - - - - - $ -	Level 3 $ - 85,565 85,565 4,348 4,348 $ 89,913 Level 3 $ - 85,683 85,683 4,348 - 4,348 $ 90,031	Total $ 1,696,300 85,565 1,781,865 807,115 807,115 $ 2,588,980 Total $ 1,417,691 85,683 1,503,374 757,531 200,363 957,894 $ 2,461,268

(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:

Market quoted price	Listed shares Closing price	Open-ended fund Net asset value	Government bond
			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, 2020 and 2019, there was no transfer between Level 1 and Level 2.
F. For the three-month periods ended March 31, 2020 and 2019, there was no significant transfer in or out of Level 3.
G. The Group is in charge of valuation procedures for fair value measurements being categorized within Level 3, which to verify the independent fair value of financial instruments. Such assessments are to

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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:

Non-derivative equity instrument: Unlisted shares Non-derivative equity instrument: Unlisted shares Non-derivative equity instrument: Unlisted shares	Fair value at March 31, 2020 $ 89,913 Fair value at December 31, 2019 $ 89,913 Fair value at March 31, 2019 $ 90,031	Valuation technique Market comparable companies Net asset value Valuation technique Market comparable companies Net asset value Valuation technique Market comparable companies Net asset value	Significant unobservable input Price to book ratio multiplier Net asset value Significant unobservable input Price to book ratio multiplier Net asset value Significant unobservable input Price to book ratio multiplier Net asset value	Range (weighted average) 2.94 - Range (weighted average) 2.94 - Range (weighted average) 2.61 -	Relationship of inputs to fair value
					The higher the multiplier, the higher the fair value The higher the net asset value, the higher the fair value Relationship of inputs to fair value
					The higher the multiplier, the higher the fair value The higher the net asset value, the higher the fair value Relationship of inputs to fair value
					The higher the multiplier, the higher the fair value The higher the net asset value, the higher the fair value

I. The Group has carefully assessed the valuation models and assumptions used to measure fair value. However, the use of different valuation models or assumptions may result in different measurements. If valuation assumptions from financial assets and liabilities categorized within Level 3 had increased or decreased by 1%, net income or other comprehensive income would not have been significantly impacted for the three-month periods ended March 31, 2020 and 2019.

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13. SUPPLEMENTARY DISCLOSURES

(1) Significant transactions information

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

(2) Information on investees

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

(3) Information on investments in Mainland China

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

(4) Major shareholders information

List of shareholders holding more than 5% (inclusive) of shares: Please refer to Table 8.

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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:

	For the three-month period ended March 31, 2020	For the three-month period ended March 31, 2020	For the three-month period ended March 31, 2020
Convenience stores $ 39,094,074 169,240 $ 39,263,314 $ 3,009,616	Retail business group Logistics business group Other operating segments Adjustment and elimination $ 18,525,824 $ 531,588 $ 4,898,263($ -) 618,587 3,334,319 1,849,714 ( 5,971,860) $ 19,144,411 $ 3,865,907 $ 6,747,977 ($ 5,971,860) $ 714,797 $ 340,126 ($ 3,137) ($ 462,360) 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 Adjustment and elimination $ 4,972,482($ -) 1,669,057 ( 5,603,035) $ 6,641,539 ($ 5,603,035) $ 1,010,955 ($ 1,506,958)

(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

Expressed in thousands of NTD (Except as otherwise indicated)

PRESIDENT CHAIN STORE CORP. AND SUBSIDIARIES

Holding of marketable securities at the end of the period (not including subsidiaries, associates and joint ventures) March 31, 2020

Securities held by	Type and name of securities	Relationship with the securities issuer	General ledger account		As of March	31,2020		Footnote
				Number of shares	Book value	Ownership (%)	Fair value
President Chain Store Corp. President Chain Store Corp. President Chain Store Corp. President Chain Store Corp. Mech-President Corp. President Chain Store Corp. President Chain Store Corp. President Chain Store Corp. Books.com. Co., Ltd. Chieh Shun Logistics International Corp. Chieh Shun Logistics International Corp. Uni-Wonder Corp. Uni-Wonder Corp. Uni-Wonder Corp. Uni-Wonder Corp. Uni-Wonder Corp. Uni-Wonder Corp. President Information Corp. President Information Corp. President Information Corp. President Logistics International Corp. President Logistics International Corp. President Pharmaceutical Corp. President Pharmaceutical Corp. Q-ware Systems & Services Corp. Q-ware Systems & Services Corp.	Stock: President Investment Trust Corp. Career Consulting Co. Ltd. Kaohsiung Rapid Transit Corp. PK Venture Capital Corp. Yamay International Development Corp. President Securities Corp. Duskin Co., Ltd. Koasa Yamako Corp. Beneficiary certificates: Jih Sun Money Market Fund Taishin 1699 Money Market Fund UPAMC James Bond Money Market Fund Prudential Financial Money Market Fund Allianz Global Investors Taiwan Money Market Fund FSITC Taiwan Money Market Fund Union Money Market Fund Nomura money market fund Taishin 1699 Money Market Fund Prudential Financial Money Market Fund Jih Sun Money Market Fund Union Money Market Fund Taishin 1699 Money Market Fund UPAMC James Bond Money Market Fund Jih Sun Money Market Fund Taishin 1699 Money Market Fund Eastspring Investments Well Pool Money Market Fund Jih Sun Money Market Fund	Director of President Investment Trust Corp. None `〃` Director of PK Venture Capital Corp. None Investee of Uni-President Enterprises Corp. under the equity method None Director of Koasa Yamako Corp. None `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃`	Financial assets at fair value through profit or loss`－` non-current `〃` `〃` `〃` `〃` Financial assets at fair value through other comprehensive income`－`non-current `〃` `〃` Financial assets at fair value through profit or loss`－`current `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃`	2,667,600 837,753 2,572,127 321,300 9 38,221,259 300,000 650,000 14,771,288 8,199,435 3,126,256 18,235,209 15,877,552 11,700,392 7,535,057 5,487,805 5,145,999 682,660 8,525,048 1,508,827 1,544,006 119,181 499,153 2,391,595 2,705,944 7,388,083	45,298 $ 14,546 25,721 - - 496,877 237,621 4,348 220,067 $ 111,535 52,517 290,000 200,000 180,000 100,000 90,000 70,000 10,856 127,009 20,024 21,003 2,002 7,437 32,532 37,000 110,070	7.60 5.37 0.92 6.67 - 2.79 0.59 10.00 - - - - - - - - - - - - - - - - - -	45,298 $ 14,546 25,721 - - 496,877 237,621 4,348 220,067 $ 111,535 52,517 290,000 200,000 180,000 100,000 90,000 70,000 10,856 127,009 20,024 21,003 2,002 7,437 32,532 37,000 110,070

Table 1  Page 1

Table 2

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, 2020

Expressed in thousands of NTD (Except as otherwise indicated)

Investor	Type and name of securities	General ledger account	Counterparty	Relationship with the investor	Balance January1	as at ,2020	Add	ition		Disposal	Disposal		Other increa	se(decrease)	Balance as at M	arch 31,2020
					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. Chieh Shun Logistics International Corp. Uni-Wonder Corp. Q-ware Systems & Services Corp.	Beneficiary certificates: Jih Sun Money Market Fund Taishin 1699 Money Market Fund FSITC Taiwan Money Market Fund Eastspring Investments Well Pool Money Market Fund	Note `〃` `〃` `〃`	Not applicable `〃` `〃` `〃`	Not applicable `〃` `〃` `〃`	1,344,764 6,846,847 19,527,436 19,990,627	20,005 $ 93,009 300,000 273,000	52,393,689 24,455,103 23,409,876 35,857,504	780,000 $ 332,500 360,000 490,000	38,967,165 23,102,515 31,236,920 53,142,187	580,201 $ 314,058 480,239 726,240	580,000 $ 313,975 480,000 726,000	201 $ 83 239 240	- - - -	62 $ 1 - -	14,771,288 8,199,435 11,700,392 2,705,944	220,067 $ 111,535 180,000 37,000

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

Table 2  Page 1

Table 3

PRESIDENT CHAIN STORE CORP. AND SUBSIDIARIES

Purchases or sales of goods from or to related parties reaching $100 million or 20% of paid-in capital or more For the three-month period ended March 31, 2020

Expressed in thousands of NTD (Except as otherwise indicated)

Purchaser/seller	Counterparty	Relationship with the counterparty			Transaction		Differences in t compared t transa	ransaction terms o third party ctions	Notes/accounts	receivable(payable)	Footnote
			Purchases(sales)	Amount	Percentage of total purchases (sales)	Credit term	Unitprice	Credit term	Balance	Percentage of total notes/accounts receivable(payable)
President Chain Store Corp. Chieh Shun 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 Transnet Corp. Kuang Chuan Dairy Corp. 21 Century Co., Ltd. Kai Ya Food Co., Ltd. Q-ware Systems & Services Corp. President Transnet Corp. President Logistics International Corp. Chieh Shun Logistics International Corp. President Chain Store Corp. Tung Chan Enterprise Corp. President Chain Store Corp. Chieh Shun 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 `〃` Subsidiary Other related party Subsidiary Sister company Subsidiary Subsidiary of President Chain Store Corp. Parent company Subsidiary of President Chain Store Corp. Parent company 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 Sales revenue Purchases Service revenue Service cost Delivery revenue `〃` `〃` Service cost `〃` `〃`	3,821,691 $ 952,554 475,692 146,861 104,322 126,949 153,422 127,686 141,793 179,948) ( 269,568) ( 179,948 104,322) ( 239,211 228,678) ( 269,568 188,304) ( 266,536) ( 267,988) ( 188,304 266,536 267,988	15 4 2 1 0 0 1 0 1 39) ( 58) ( 7 64) ( 21 67) ( 36 24) ( 33) ( 34) ( 48 37 43	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 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 40 days from the end of the month when invoice is issued Net 20 days from the end of the month when invoice is issued Net 40 days from the end of the month when invoice is issued Net 60 days from the end of the month when invoice is issued Net 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 `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` 〃〃〃〃 `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃`	1,352,990) ($ 648,010) ( 193,858) ( 86,255) ( 40,178) ( 128,421) ( 70,290) ( 89,332) ( 92,811) ( 71,413 93,543 71,413) ( 40,178 64,418) ( 179,706 93,543) ( 65,177 95,423 94,033 65,177) ( 95,423) ( 94,033) (	9) ( 4) ( 1) ( 1) ( - 1) ( - 1) ( 1) ( 42 55 5) ( 3 12) ( 64 37) ( 23 34 34 48) ( 2) ( 28) (

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, 2020

Expressed in thousands of NTD (Except as otherwise indicated)

Purchaser/seller	Counterparty	Relationship with the counterparty			Transaction		Differences in t compared t transa	ransaction terms o third party ctions	Notes/accounts	receivable(payable)	Footnote
			Purchases(sales)	Amount	Percentage of total purchases (sales)	Credit term	Unitprice	Credit term	Balance	Percentage of total notes/accounts receivable(payable)
Q-ware Systems & Services Corp. President Drugstore Business Corp. President Pharmaceutical Corp. Uni-President Superior Commissary Corp. 21 Century Co., Ltd.	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 `〃` `〃`	141,793) ($ 134,666 134,666) ( 952,554) ( 153,422) (	63) ( 5 35) ( 100) ( 50) (	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 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	No significant differences `〃` `〃` `〃` `〃`	No significant differences `〃` `〃` `〃` `〃`	92,811 $ 38,336) ( 38,336 648,010 70,290	74 2) ( 10 100 51

Table 3  Page 2

Table 4

Expressed in thousands of NTD (Except as otherwise indicated)

PRESIDENT CHAIN STORE CORP. AND SUBSIDIARIES

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

Creditor	Counterparty	Relationship with the counterparty	Balance as of March 31,2020	Turnover rate	Overdue r	eceivables	Amount collected subsequent to the balance sheet date	Allowance for doubtful accounts
					Amount	Action taken
President Information Corp. Uni-President Superior Commissary Corp.	President Chain Store Corp. President Chain Store Corp.	Parent company `〃`	179,706 $ 648,010	6.01 5.79	- $ -	none `〃`	6,441 $ 305,667	- $ -

Table 4  Page 1

PRESIDENT CHAIN STORE CORP. AND SUBSIDIARIES

Significant inter-company transactions during the reporting periods

For the three-month period ended March 31, 2020

Table 5 Number	Companyname	Counterparty	Relationship			Transaction Expressed in thousands of NTD (Except as otherwise indicated)	Transaction Expressed in thousands of NTD (Except as otherwise indicated)
				General ledger account	Amount	Transaction terms	Percentage of consolidated total operating revenues or total assets
`1` `1` `2` `3` `3` `4` `5` `6` `6` `7` `7` `7` `8`	President Information Corp. President Information Corp. Q-ware Systems & Services Corp. Uni-President Superior Commissary Corp. Uni-President Superior Commissary Corp. 21 Century Co., Ltd. President Transnet Corp. Chieh Shun Logistics International Corp. Chieh Shun Logistics International Corp. President Logistics International Corp. President Logistics International Corp. President Logistics International Corp. President 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 Logistics International Corp. President Transnet Corp. Uni-President Cold-Chain Corp. Wisdom Distribution Service Corp. Retail Support International 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 parent company Subsidiary to subsidiary	Accounts receivable Service revenue Service revenue Accounts receivable Sales revenue Sales revenue Sales revenue Delivery revenue Delivery revenue Delivery revenue Delivery revenue Delivery revenue Sales revenue	179,706 $ 228,678) ( 141,793) ( 648,010 952,554) ( 153,422) ( 104,322) ( 269,568) ( 179,948) ( 266,536) ( 267,988) ( 188,304) ( 134,666) (	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 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 60 days from the end of the month when invoice is issued Net 20 days from the end of the month when invoice is issued Net 40 days from the end of the month when invoice is issued Net 20 days from the end of the month when invoice is issued Net 20 days from the end of the month when invoice is issued Net 20 days from the end of the month when invoice is issued Net 70 days from the end of the month when invoice is issued	0.09 0.36 0.22 0.33 1.51 0.24 0.17 0.43 0.29 0.42 0.43 0.30 0.21

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, 2020

Investor	Investee	Location	Mainbusinessactivities	Initial invest	ment amount	Shareshel	dasat March	31,2020	Net profit (loss) of the investee for the three- month period ended March 31,2020	Investment income (loss) recognized by the Company for the three- month period ended March 31,2020	Footnote
				Balance as at March 31,2020	Balance as at December 31, 2019	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 Corp.	President Chain Store (BVI) Holdings Ltd. President Drugstore Business Corp. President Transnet Corp. Mech-President Corp. President Pharmaceutical Corp. Uni-President Department Store Corp. Uni-President Superior Commissary Corp. Uni-President Cold-Chain Corp. President Information Corp. Q-ware Systems & Services Corp. Wisdom Distribution Service Corp. Books.com. Co., Ltd. President Lanyang Art Corporation Duskin Serve Taiwan Co., Ltd. ICASH Corp. Uni-President Development Corp. Uni-Wonder Corp. Retail Support International Corp. Presicarre Corp. President Fair Development Corp. President International Development Corp. Tung Ho Development Corp. Ren-Hui Investment Corp. Capital Marketing Consultfant Corp. PCSC (China) Drugstore Limited President Chain Store Corporation Insurance Brokers Co., Ltd. Cold Stone Creamery Taiwan Ltd. President Being Corp. 21 Century Co., Ltd.	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 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 and electronic payment Construction, development and operation of an MRT station Coffee chain store Room-temperature logistics and warehousing Management of retail department store Operation of shopping mall, department store, international trade, etc. Professional investment Management of entertainment business Professional investment Enterprise management consultancy Professional investment Life and property insurance Sales of ice cream Sports and entertainment business Operation of chain restaurants	6,712,138 $ 288,559 711,576 904,475 330,216 840,000 520,141 237,437 320,741 332,482 50,000 100,400 20,000 102,000 700,000 720,000 3,286,206 91,414 7,112,028 3,191,700 500,000 861,696 637,231 9,506 277,805 213,000 170,000 170,000 160,680	6,712,138 $ 288,559 711,576 904,475 330,216 840,000 520,141 237,437 320,741 332,482 50,000 100,400 20,000 102,000 700,000 720,000 3,286,206 91,414 7,112,028 3,191,700 500,000 861,696 637,231 9,506 277,805 213,000 170,000 170,000 160,680	171,589,586 78,520,000 103,496,399 55,858,815 22,121,962 27,999,999 48,519,890 23,605,042 25,714,475 24,382,921 10,847,421 9,999,999 2,000,000 10,199,999 70,000,000 72,000,000 21,382,674 6,429,999 145,172,360 190,000,000 44,100,000 19,930,000 6,500,000 2,500,000 8,746,008 1,500,000 12,244,390 1,500,000 10,000,000	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 92.20 100.00 100.00 100.00 100.00	26,531,209 $ 1,458,626 1,796,804 695,146 773,618 574,034 490,109 738,279 531,233 405,470 521,953 450,489 25,098 221,508 575,414 766,890 5,219,034 193,229 5,845,101 2,050,547 468,165 100,617 78,252 74,492 64,331 30,869 7,263 37,100) ( 96,018	8,376) ($ 26,176 231,810 8,905) ( 41,875 44,077 6,723 98,341 43,541 17,768 67,828 104,329 22) ( 39,592 8,171 13,493 129,624 60,635 641,720 58,625 119,775 40,021) ( 2,224) ( 7,778 198 3,301 1,130 3,637) ( 9,627	8,376) ($ 26,176 162,268 7,201) ( 29,758 30,854 6,051 58,941 37,445 15,415 67,828 52,196 22) ( 20,191 8,171 2,699 54,475 15,082 121,903 11,141 9,782 5,767) ( 2,224) ( 7,091 183 3,301 1,130 3,367) ( 9,627	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 Subsidiary

Table 6  Page 1

PRESIDENT CHAIN STORE CORP. AND SUBSIDIARIES

Names, locations and other information of investee companies (not including investees in Mainland China) For the three-month period ended March 31, 2020

Table 6 Investor	Investee	Location	Mainbusinessactivities	Initial invest	ment amount	Shareshel	dasat March	31,2020	Net profit (loss) of the investee for the three- month period ended March 31,2020	Investment income (loss) recognized by the Company for the three- month period ended March 31,2020 Expressed in tho (Except as other	Footnote usands of NTD wise indicated)
				Balance as at March 31,2020	Balance as at December 31, 2019	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. Books.com. Co., Ltd. Mech-President Corp. President Chain Store (Hong Kong) Holdings Limited President Chain Store (BVI) Holdings Ltd. President Chain Store (BVI) Holdings Ltd. President Chain Store (Labuan) Holdings Ltd. President Logistics International Corp. President Pharmaceutical Corp. Ren-Hui Investment Corp. Ren-Hui Investment Corp. Ren-Hui Investment Corp. Ren-Hui Investment Corp. Ren-Hui Investment Corp. Ren-Hui Investment Corp. Ren-Hui Investment Corp. Ren-Hui Investment Corp. Ren-Hui Investment Corp. Ren-Hui Investment Corp. Ren-Hui Investment Corp.	President Chain Store Tokyo Marketing Corp. Uni-President Oven Bakery Corp. President Collect Service Corp. Mister Donut Taiwan Corp., Ltd. Uni-President Organics Corp. President Technology Corp. Books.com. (BVI) Ltd. Tong Ching Corporation PCSC (China) Drugstore Limited President Chain Store (Labuan) Holdings Ltd. President Chain Store (Hong Kong) Holdings Limited Philippine Seven Corp. Chieh Shun Logistics International Corp. President Pharmaceutical (Hong Kong) Holdings Limited Books.com. Co., Ltd. Uni-President Department Store Corp. Mech-President Corp. President Information Corp. President Transnet Corp. Q-ware Systems & Services Corp. Duskin Serve Taiwan Co., Ltd. President Pharmaceutical Corp. Mister Donut Taiwan Corp., Ltd. Uni-President Superior Commissary Corp. Uni-President Cold-Chain Corp.	Japan Taiwan Taiwan Taiwan Taiwan Taiwan British Virgin Islands Taiwan British Virgin Islands Malaysia Hong Kong Philippines Taiwan Hong Kong Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan	Enterprise management consultancy Bread and pastry retailer Collection agent Bakery retailer Health care products and organic food Software development and call center service Professional investment Gas station Professional investment Professional investment Professional investment 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 Bakery retailer Fresh food manufacture Low-temperature logistics and warehousing	35,648 $ 391,300 10,500 200,000 47,190 7,500 1,478 9,600 22,367 881,462 4,707,753 880,615 180,000 178,024 - - - - - - - - - - -	35,648 $ 391,300 10,500 200,000 47,190 7,500 1,478 9,600 22,367 881,462 4,707,753 880,615 180,000 178,024 - - - - - - - - - - -	9,800 6,511,963 1,049,999 7,500,049 1,833,333 750,000 500 960,000 740,000 29,163,337 134,603,354 394,970,516 26,670,000 5,935,900 1 1 1 1 1 1 1 1 1 1 1	100.00 100.00 70.00 50.00 36.67 15.00 100.00 60.00 7.80 100.00 100.00 52.22 100.00 100.00 - - - - - - - - - - -	86,265 $ 59,768) ( 101,819 95,813 44,822 20,666 567 25,593 5,442 2,566,751 4,039,780 2,565,837 340,256 56,271 - - - - - - - - - - -	3,645 $ 14,942) ( 25,138 9,910) ( 9,336 1,336) ( 26) ( 1,438 198 17,376 126,737) ( 61,481 13,681 4,498) ( 104,329 44,077 8,905) ( 43,541 231,810 17,768 39,592 41,875 9,910) ( 6,723 98,341	3,624 $ 14,942) ( 17,597 4,955) ( 3,391 200) ( 26) ( 863 15 17,376 126,737) ( 17,376 13,681 4,498) ( - - - - - - - - - - -	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 Note 1 Subsidiary of a subsidiary Subsidiary of a subsidiary

Table 6  Page 2

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, 2020

Table 6 Investor	Investee	Location	Mainbusinessactivities	Initial invest	ment amount	Shareshel	dasat March	31,2020	Net profit (loss) of the investee for the three- month period ended March 31,2020	Investment income (loss) recognized by the Company for the three- month period ended March 31,2020 Expressed in tho (Except as other	Footnote usands of NTD wise indicated)
				Balance as at March 31,2020	Balance as at December 31, 2019	Numberofshares	Ownership (%)	Bookvalue
Ren-Hui Investment Corp. Ren-Hui Investment Corp. Ren-Hui Investment Corp. Retail Support International Corp. Retail Support International Corp. Retail Support Taiwan Corp. Uni-President Cold-Chain Corp. Uni-President Cold-Chain Corp. Wisdom Distribution Service Corp. Philippine Seven Corp. Philippine Seven Corp.	Retail Support International Corp. President Collect Service Corp. Ren Hui Holding Co., Ltd. Retail Support Taiwan Corp. President Logistics International Corp. President Logistics International Corp. President Logistics International Corp. Uni-President Logistics (BVI) Holdings Limited President Logistics International Corp. Convenience Distribution Inc. Store Sites Holding, Inc.	Taiwan Taiwan British Virgin Islands Taiwan Taiwan Taiwan Taiwan British Virgin Islands Taiwan Philippines Philippines	Room-temperature logistics and warehousing Collection agent Professional investment Room-temperature logistics and warehousing Trucking Trucking Trucking Professional investment Trucking Logistic, warehousing and retail Professional investment	- $ - 60,374 15,300 44,975 5,425 23,850 87,994 18,850 26,830 29,061	- $ - 60,374 15,300 44,975 5,425 23,850 87,994 18,850 26,830 29,061	1 1 2,000,000 2,871,300 9,481,500 1,161,000 4,837,500 2,990 3,870,000 4,500,000 40,000	- - 100.00 51.00 49.00 6.00 25.00 100.00 20.00 100.00 100.00	- $ - 60,683 83,509 177,966 21,792 90,799 99,073 72,638 26,830 29,061	60,635 $ 25,138 2,449) ( 13,177 18,550 18,550 18,550 2,180 18,550 13,480) ( 273	- $ - 2,449) ( 6,720 9,089 1,113 4,637 2,205 3,709 - -	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, 2020

Expressed in thousands of NTD (Except as otherwise indicated)

Investeein Mainland China	Mainbusiness activities	Paid-incapital	Investment method	Accumulated amount of remittance from Taiwan to Mainland China as ofJanuary1,2020	Amount remitted from Taiwan to Mainland China/ Amount remitted back to Taiwan for the three-month period ended March31,2020	Amount remitted from Taiwan to Mainland China/ Amount remitted back to Taiwan for the three-month period ended March31,2020	Accumulated amount of remittance from Taiwan to Mainland China as of March31,2020	Net profit(loss) of investee for the three-month period ended March 31, 2020	Ownership held by the Company (direct or indirect)	Investment income (loss) recognized by the Company for the three- month period ended March31,2020	Book value of investments in Mainland China as of March31,2020	Accumulated amount of investment income remitted back to Taiwan as of March 31, 2020	Footnote
					Remitted to Mainland China	Remitted back to Taiwan
President Cosmed Chain Store (Shen Zhen) Co., Ltd. President Chain Store (Shanghai) Ltd. Shanghai President Logistic Co., Ltd. Shanghai Cold Stone Ice Cream Corporation Shan Dong President Yinzuo Commercial Limited President (Shanghai) Health Product Trading Company Ltd. Zhejiang Uni-Champion Logistics Development Co., Ltd. Bejing Bokelai Customer Co. President Chain Store (Taizhou) Ltd. President Logistic ShanDong Co., Ltd. President Chain Store (Zhejiang) Ltd. Beauty Wonder (Zhejiang) Trading Co.,Ltd.	Wholesale of merchandise Operation of chain stores Logistics and warehousing Sales of ice cream Supermarkets Sales of various health care products, cosmetics, and pharmaceuticals Logistics and warehousing Enterprise information consulting, network technology development and services Logistics and warehousing Logistics and warehousing Operation of chain stores Sales of cosmetics and daily items	426,774 $ 2,133,870 60,450 949,758 256,064 167,113 170,710 453 256,064 213,387 597,484 128,032	Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1	284,637 $ 2,335,712 60,450 989,537 123,268 167,113 169,504 - 256,064 213,387 597,484 128,032	- $ - - - - - - - - - - -	- $ - - - - - - - - - - -	284,637 $ 2,335,712 60,450 989,537 123,268 167,113 169,504 - 256,064 213,387 597,484 128,032	198 $ 76,320) ( 27,168) ( 18,515 16,461) ( 2,592) ( 7,329 26) ( 5,638) ( 3,868 36,231) ( 9,831) (	100.00 100.00 100.00 100.00 55.00 73.74 80.00 50.03 100.00 100.00 100.00 100.00	198 $ 75,530) ( 27,168) ( 18,515 9,053) ( 1,911) ( 3,529 13) ( 5,638) ( 4,002 36,179) ( 9,836) (	69,109 $ 28,071 446,386 63,555 177,252 19,795 158,324 3 342,320 197,756 252,259 65,593	- $ - - - 7,859 56,542 25,762 - - - - -	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 March31,2020	Investment amount approved by the Investment Commission of the Ministry of Economic Affairs (MOEA)	Ceiling on investments in Mainland China imposed by the Investment Commissionof MOEA
President Chain Store Corp. President Pharmaceutical Corp. Uni-President Cold-Chain Corp. Ren-Hui Investment Corp.	4,658,822 $ 167,113 89,690 52,086	167,113 89,690 52,086 8,353,401 $	501,171 726,018 80,000 28,950,905 $

Table 7  Page 1

PRESIDENT CHAIN STORE CORP. AND SUBSIDIARIES

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

March 31, 2020

Table 8

Shareholder name	Shares held as at	March 31,2020
	Number of shares	Ownership (%)
Uni-President Enterprises Corp.	471,996,430	45.40%

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

Table 8  Page 1

AI assistant

PCSC — Interim / Quarterly Report 2020

52232_rns_2020-12-01_a55820e7-d5c3-41ba-8c69-4a6dcff06630.pdf

PRESIDENT CHAIN STORE CORP. AND SUBSIDIARIES

PRESIDENT CHAIN STORE CORP. AND SUBSIDIARIES CONSOLIDATED FINANCIAL STATEMENTS AND REVIEW REPORT OF INDEPENDENT ACCOUNTANTS

MARCH 31, 2020 AND 2019

CONTENTS

REVIEW REPORT OF FINANCIAL STATEMENTS

TRANSLATED FROM CHINESE

Introduction

Scope of Review

Basis for Qualified Conclusion

Qualified Conclusion

PRESIDENT CHAIN STORE CORP. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

PRESIDENT CHAIN STORE CORP. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS

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

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

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

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

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

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

March 31, 2020 AND 2019

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

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

4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(2) Basis of preparation

(3) Basis of consolidation

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

6. DETAILS OF SIGNIFICANT ACCOUNTS

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

(6) Investments accounted for using the equity method

(7) Property, plant and equipment

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

－ (8) Leasing arrangements lessee

－ (9) Leasing arrangements lessor

(10) Investment property

(11) Intangible assets

(14) Short-term borrowings

(15) Other payables

(16) Other current liabilities

- (17) Long term borrowings

(18) Pensions

(19) Other non-current liabilities

(20) Share capital

(21) Capital surplus

(22) Retained earnings

A. Disaggregation of revenue from contracts with customers

B. Contract liabilities

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

(25) Expenses by nature

(26) Employee benefit expense

(27) Other income

(28) Other gains and losses

(29) Finance costs

For the three-month period ended March 31, 2019

(32)Supplemental cash flow information

(33) Changes in liabilities from financing activities

7. RELATED PARTY TRANSACTIONS

(1) Parent and ultimate controlling party

(2) Names of related parties and relationship

〃

〃

(3) Significant related party transactions and balances

A. Operating revenue

B. Purchases

C. Receivables from related parties

D. Payables to related parties

－ E. Leasing arrangements lessee

(b) Lease liabilities

(4) Key management compensation

8. PLEDGED ASSETS

9. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNIZED CONTRACT COMMITMENTS

10. SIGNIFICANT DISASTER LOSS

11. SIGNIFICANT SUBSEQUENT EVENTS

12. OTHERS

(1) Capital management

PCSC Interim / Quarterly Report 2020

`－` (8) Leasing arrangements lessee

`－` (9) Leasing arrangements lessor

`〃`

`〃`

`－` E. Leasing arrangements lessee