PCSC - Interim / Quarterly Report 2020

PRESIDENT CHAIN STORE CORP. AND SUBSIDIARIES

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

~1~

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

SEPTEMBER 30, 2020 AND 2019

Items 1. Cover 2. Contents 3. Review report of independent accountants 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 ~ 56 12 12 12 ~ 13 13 ~ 18 18 18 ~ 41 42 ~ 45 45 46 46 46 46 ~ 54 54 55 ~ 56

Items
1. Cover
2. Contents
3. Review report of independent accountants
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 ~ 56
12
12
12 ~ 13
13 ~ 18
18
18 ~ 41
42 ~ 45
45
46
46
46
46 ~ 54
54
55 ~ 56

~2~

REVIEW REPORT OF INDEPENDENT ACCOUNTANTS

TRANSLATED FROM CHINESE

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

Introduction

We have reviewed the accompanying consolidated balance sheets of President Chain Store Corp. and subsidiaries as at September 30, 2020 and 2019, and the related consolidated statements of comprehensive income for the three-month and nine-month periods then ended, as well as the consolidated statements of changes in equity and of cash flows for the nine-month periods then ended, and notes to the consolidated financial statements, including a summary of significant accounting policies. Management is responsible for the preparation and fair presentation of these consolidated financial statements in accordance with Regulations Governing the Preparation of Financial Reports by Securities Issuers and International Accounting Standard 34, “Interim Financial Reporting” as endorsed by the Financial Supervisory Commission. Our responsibility is to express a conclusion on these consolidated financial statements based on our reviews.

Scope of Review

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

Basis for Qualified Conclusion

As explained in Notes 4(3) and 6(6), the financial statements of certain insignificant consolidated subsidiaries and investments accounted for using the equity method were not reviewed by independent accountants. Those statements reflect total assets of NT$43,251,077 thousand and NT$42,422,134 thousand, constituting 21% and 23% of the consolidated total assets, and total liabilities of NT$27,829,127 thousand and NT$26,160,108 thousand, constituting 18% and 19% of the consolidated total liabilities as at September 30, 2020 and 2019, respectively, and total comprehensive income of

~3~

NT$319,500 thousand, NT$524,668 thousand, NT$644,795 thousand and NT$1,746,031 thousand, constituting 11%, 18%, 8% and 18% of the consolidated total comprehensive income for the threemonth and nine-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 September 30, 2020 and 2019, and of its consolidated financial performance for the three-month and nine-month periods then ended and its consolidated cash flows for the nine-month periods then ended in accordance with Regulations Governing the Preparation of Financial Reports by Securities Issuers and International Accounting Standard 34, “Interim Financial Reporting” as endorsed by the Financial Supervisory Commission.

Yi-Chang, Liang Chien-Hung, Chou

For and on behalf of PricewaterhouseCoopers, Taiwan October 30, 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.

~4~

PRESIDENT CHAIN STORE CORP. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(Expressed in thousands of New Taiwan dollars)

(The consolidated balance sheets as of September 30, 2020 and 2019 are reviewed, not audited)

==> picture [530 x 518] intentionally omitted <==

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

September 30, 2020 December 31, 2019 September 30, 2019
Assets Notes AMOUNT % AMOUNT % AMOUNT %
Current assets
1100 Cash and cash equivalents 6(1) $ 47,362,652 23 $ 45,445,395 23 $ 52,112,980 28
1110 Financial assets at fair value through 6(2)
profit or loss – current 2,053,693 1 1,696,300 1 1,583,247 1
1170 Accounts receivable, net 6(3) and 7 5,539,256 3 5,808,480 3 5,510,916 3
1200 Other receivables 2,708,281 1 1,460,354 1 2,301,736 1
1220 Current income tax assets 6(31) 1,538 - 95 - 4,363 -
130X Inventories, net 6(4) 14,709,310 7 15,659,112 8 12,766,148 7
1410 Prepayments 1,499,575 1 1,195,719 1 1,383,157 1
1470 Other current assets 3,288,095 2 2,968,350 1 2,846,622 2
11XX Total current assets 77,162,400 38 74,233,805 38 78,509,169 43
Non-current assets
1510 Financial assets at fair value through 6(2)
profit or loss – non-current 85,523 - 85,565 - 85,565 -
1517 Financial assets at fair value through 6(5)
other comprehensive income
– non-current 847,701 - 807,115 - 739,684 -
1550 Investments accounted for using 6(6)
equity method 8,844,492 5 9,255,939 5 9,170,960 5
1600 Property, plant and equipment, net 6(7)(29)
and 8 26,298,506 13 26,018,322 13 25,260,100 14
1755 Right-of-use assets 6(8) and 7 71,116,727 35 67,489,612 35 53,376,970 29
1760 Investment property, net 6(10) and 8 1,481,360 1 1,506,798 1 1,511,056 1
1780 Intangible assets 6(11) 9,950,390 5 10,171,442 5 10,131,370 5
1840 Deferred income tax assets 6(31) 1,942,751 1 1,860,217 1 1,819,247 1
1900 Other non-current assets 6(12) and 8 3,491,267 2 3,699,819 2 3,294,313 2
15XX Total non-current assets 124,058,717 62 120,894,829 62 105,389,265 57
1XXX Total assets $ 201,221,117 100 $ 195,128,634 100 $ 183,898,434 100
----- End of picture text -----

(Continued)

~5~

PRESIDENT CHAIN STORE CORP. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(Expressed in thousands of New Taiwan dollars)

(The consolidated balance sheets as of September 30, 2020 and 2019 are reviewed, not audited)

==> picture [530 x 600] intentionally omitted <==

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

September 30, 2020 December 31, 2019 September 30, 2019
Liabilities and Equity Notes AMOUNT % AMOUNT % AMOUNT %
Current liabilities
2100 Short-term borrowings 6(14) and 8 $ 9,254,583 5 $ 6,014,658 3 $ 5,948,113 3
2130 Contract liabilities – current 6(24) 5,041,610 2 3,443,383 2 3,416,555 2
2150 Notes payable 7 1,125,425 1 1,214,702 1 3,063,910 2
2170 Accounts payable 23,335,856 12 20,897,055 11 23,079,662 12
2180 Accounts payable – related parties 7 2,878,851 1 2,690,640 1 4,018,899 2
2200 Other payables 6(15) 23,583,022 12 26,596,505 14 27,276,879 15
2230 Current income tax liabilities 6(31) 1,047,627 - 1,410,428 1 911,439 -
2280 Lease liabilities – current 7 12,298,518 6 11,932,751 6 11,283,080 6
2300 Other current liabilities 6(16) 3,544,364 2 3,149,591 1 3,107,172 2
21XX Total current liabilities 82,109,856 41 77,349,713 40 82,105,709 44
Non-current liabilities
2527 Contract liabilities – non-current 6(24) 557,789 - 448,248 - 405,150 -
2540 Long-term borrowings 6(17) and 8 511,696 - 508,112 - 519,004 -
2570 Deferred income tax liabilities 6(31) 5,348,298 3 5,580,529 3 5,531,962 3
2580 Lease liabilities – non-current 7 60,451,839 30 56,894,287 29 43,014,213 24
2640 Net defined benefit liability 6(18)
– non-current 4,759,732 3 4,751,607 3 4,728,819 3
2670 Other non-current liabilities 6(19) 4,536,596 2 4,368,820 2 4,305,909 2
25XX Total non-current liabilities 76,165,950 38 72,551,603 37 58,505,057 32
2XXX Total liabilities 158,275,806 79 149,901,316 77 140,610,766 76
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 14,369,228 7 13,314,081 7 13,314,081 7
3320 Special reserve 380,187 - - - - -
3350 Unappropriated retained earnings 10,020,388 5 12,845,880 7 10,565,031 6
Other equity 6(23)
3400 Other equity interest ( 987,405) - ( 380,187) - 399,754 -
31XX Equity attributable to owners of
the parent 34,225,505 17 36,222,881 19 34,721,043 19
36XX Non-controlling interest 8,719,806 4 9,004,437 4 8,566,625 5
3XXX Total equity 42,945,311 21 45,227,318 23 43,287,668 24
3X2X Total liabilities and equity $ 201,221,117 100 $ 195,128,634 100 $ 183,898,434 100
----- End of picture text -----

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

~6~

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)

==> picture [757 x 356] intentionally omitted <==

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

For the three-month periods ended September 30 For the nine-month periods ended September 30
2020 2019 2020 2019
Items Notes AMOUNT % AMOUNT % AMOUNT % AMOUNT %
4000 Operating revenue 6(24) and 7 $ 67,803,926 100 $ 66,088,666 100 $ 192,346,204 100 $ 191,121,985 100
5000 Operating costs 6(4)(25) and 7 ( 44,548,591 ) ( 66) ( 43,291,348 ) ( 66 ) ( 126,521,659 ) ( 66 ) ( 125,390,999 [) ] ( 66 )
5900 Gross profit 23,255,335 34 22,797,318 34 65,824,545 34 65,730,986 34
Operating expenses 6(25)(26)
6100 Selling expenses ( 17,094,300 ) ( 25) ( 16,980,117 ) ( 26 ) ( 49,222,762 ) ( 25 ) ( 48,871,290 ) ( 25 )
6200 General and administrative expenses ( 2,652,826 ) ( 4) ( 2,407,474 ) ( 3 ) ( 7,308,452 ) ( 4 ) ( 6,886,264 ) ( 4 )
6450 Expected credit losses ( 5,182 ) - ( 3,648 ) - ( 17,410 ) - ( 6,947 ) -
6000 Total operating expenses ( 19,752,308 ) ( 29) ( 19,391,239 ) ( 29 ) ( 56,548,624 ) ( 29 ) ( 55,764,501 ) ( 29 )
6900 Operating profit 3,503,027 5 3,406,079 5 9,275,921 5 9,966,485 5
Non-operating income and expenses
7100 Interest income 6(27) 110,057 - 205,959 - 425,715 - 616,912 -
7010 Other income 6(28) 484,947 1 435,955 1 1,424,584 1 1,552,809 1
7020 Other gains and losses 6(29) 18,105 - ( 287 ) - 49,319 - ( 36,776 ) -
7050 Finance costs 6(30) ( 318,979 ) - ( 287,679 ) - ( 969,321 ) - ( 894,008 ) -
7060 Share of profit of associates and joint ventures accounted 6(6)
for using equity method 101,588 - 148,203 - 335,448 - 385,778 -
7000 Total non-operating income and expenses
395,718 1 502,151 1 1,265,745 1 1,624,715 1
7900 Profit before income tax
3,898,745 6 3,908,230 6 10,541,666 6 11,591,200 6
7950 Income tax expense 6(31)
( 718,918 ) ( 1) ( 776,678 ) ( 1 ) ( 1,771,363 ) ( 1 ) ( 2,229,478 ) ( 1 )
8000 Profit for the period from continuing operations 3,179,827 5 3,131,552 5 8,770,303 5 9,361,722 5
8200 Profit for the period
$ 3,179,827 5 $ 3,131,552 5 $ 8,770,303 5 $ 9,361,722 5
----- End of picture text -----

(Continued)

~7~

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)

==> picture [757 x 339] intentionally omitted <==

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

For the three-month periods ended September 30 For the nine-month periods ended September 30
2020 2019 2020 2019
Items Notes AMOUNT % AMOUNT % AMOUNT % AMOUNT %
Other comprehensive income (loss)
8316 Unrealized gain (loss) on valuation of equity instruments at fair value 6(5)
through other comprehensive income $ 94,923 - ($ 33,403) - $ 40,586 - $ 95,070 -
8320 Share of other comprehensive (loss) income of associates and joint 6(23)
ventures accounted for using equity method that will not be reclassified
to profit or loss ( 2,611) - ( 994) - ( 3,152) - 1,000 -
8349 Income tax related to the components of other comprehensive (loss) 6(31)
income that will not be reclassified to profit or loss ( 2,083) - 947 - 2,669 - ( 7,930) -
8310 Components of other comprehensive income (loss) that will not be
reclassified to profit or loss 90,229 - ( 33,450) - 40,103 - 88,140 -
8361 Financial statements translation differences of foreign operations ( 326,009) - ( 138,521) - ( 613,062) - 311,914 -
8367 Unrealized loss on valuation of bond instruments at fair value through 6(5)
- - - - - - -
other comprehensive income ( 783)
8370 Share of other comprehensive (loss) income of associates and joint 6(23)
ventures accounted for using equity method that will be reclassified to
profit or loss ( 1,148) - 1,502 - ( 5,357) - 3,343 -
8360 Components of other comprehensive (loss) income that will be
reclassified to profit or loss ( 327,157) - ( 137,019) - ( 618,419) - 314,474 -
8300 Total other comprehensive (loss) income for the period ( $ 236,928) - ( $ 170,469) - ( $ 578,316) - $ 402,614 -
8500 Total comprehensive income for the period $ 2,942,899 5 $ 2,961,083 5 $ 8,191,987 5 $ 9,764,336 5
Profit attributable to:
8610 Owners of the parent $ 2,873,672 5 $ 2,772,206 4 $ 7,965,340 5 $ 8,269,957 4
8620 Non-controlling interests 306,155 - 359,346 1 804,963 - 1,091,765 1
$ 3,179,827 5 $ 3,131,552 5 $ 8,770,303 5 $ 9,361,722 5
Comprehensive income attributable to:
8710 Owners of the parent $ 2,613,787 5 $ 2,633,189 4 $ 7,358,122 5 $ 8,616,106 4
8720 Non-controlling interests 329,112 - 327,894 1 833,865 - 1,148,230 1
$ 2,942,899 5 $ 2,961,083 5 $ 8,191,987 5 $ 9,764,336 5
9750 Basic earnings per share 6(32) $ 2.76 $ 2.67 $ 7.66 $ 7.95
9850 Diluted earnings per share 6(32) $ 2.76 $ 2.67 $ 7.65 $ 7.94
----- End of picture text -----

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

Chairman: Lo, Chih-Hsien

President : Huang, Jui-Tien

Accounting Manager: Lee, Johnyih

~8~

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

		(Expressed in thousands of New Taiwan dollars) (UNAUDITED) Equity attributable to owners of the parent	(Expressed in thousands of New Taiwan dollars) (UNAUDITED) Equity attributable to owners of the parent	(Expressed in thousands of New Taiwan dollars) (UNAUDITED) Equity attributable to owners of the parent	(Expressed in thousands of New Taiwan dollars) (UNAUDITED) Equity attributable to owners of the parent	(Expressed in thousands of New Taiwan dollars) (UNAUDITED) Equity attributable to owners of the parent	(Expressed in thousands of New Taiwan dollars) (UNAUDITED) Equity attributable to owners of the parent		Non-controlling interest Total equity $ 8,772,977 $ 44,025,027 1,091,765 9,361,722 56,465 402,614 1,148,230 9,764,336 - - - - - ( 9,148,676) ( 1,354,582) ( 1,354,582) - 562 - 333 - 668	Total equity
Share capital - common stock	Capital surplus		Retained earnings			Other equity interest		Total $ 35,252,050 8,269,957 346,149 8,616,106 - - ( 9,148,676) - 562 333 668
		Legal reserve	Special reserve	Unappropriated retained earnings	F	inancial statements translation differences of foreign operations ( $ 279,829) - 257,660 257,660 - - - - - - -	Unrealized gain or loss on valuation of financial assets at fair value through other comprehensive income $ 333,434 - 88,489 88,489 - - - - - - -
$ 10,396,223 - - - - - - - - - -	$ 45,059 - - - - - - - 562 333 -	$ 12,293,442 - - - 1,020,639 - - - - - -	$ 398,859 - - - - ( 398,859) - - - - -	$ 12,064,862 8,269,957 - 8,269,957 ( 1,020,639) 398,859 ( 9,148,676) - - - 668						$ 44,025,027
										9,361,722 402,614
										9,764,336
$ 10,396,223	$ 45,954	$ 13,314,081	$ -	$ 10,565,031		( $ 22,169)	$ 421,923	$ 34,721,043	$ 8,566,625	$ 43,287,668
$ 10,396,223 - - - - - - - - $ 10,396,223	$ 46,884 - - - - - - - - $ 46,884	$ 13,314,081 - - - 1,055,147 - - - - $ 14,369,228	$ - - - - - 380,187 - - - $ 380,187	$ 12,845,880 7,965,340 - 7,965,340 ( 1,055,147) ( 380,187) ( 9,356,600) - 1,102 $ 10,020,388		( $ 869,908) - ( 644,807) ( 644,807) - - - - - ( $ 1,514,715)	$ 489,721 - 37,589 37,589 - - - - - $ 527,310	$ 36,222,881 7,965,340 ( 607,218) 7,358,122 - - ( 9,356,600) - 1,102 $ 34,225,505	$ 9,004,437 $ 45,227,318 804,963 8,770,303 28,902 ( 578,316) 833,865 8,191,987 - - - - - ( 9,356,600) ( 1,118,496) ( 1,118,496) - 1,102 $ 8,719,806 $ 42,945,311	$ 45,227,318

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

President: Huang, Jui-Tien

Chairman: Lo, Chih-Hsien

Accounting Manager: Lee, Johnyih

~9~

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 on disposal of investment property, net
Gain from lease modification
Interest income
Dividend income
Other income recognized from rent concessions
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
Dividends received
Net cash provided by operating activities

For the nine-month
periods ended September 30
Notes
2020
2019
$ 10,541,666
$ 11,591,200
6(2)
(
7,926 ) (
6,900 )
12(2)
17,410
6,947
6(7)(8)
14,413,001
13,450,635
417,591
433,350
6(10)
12,697
12,773
6(30)
969,321
894,008
6(6)
(
335,448 ) (
385,778 )
6(29)
(
35,387 )
23,380
(
2,682 )
-
6(29)
(
56,763 )
-
6(27)
(
425,715 ) (
616,912 )
6(28)
(
60,312 ) (
47,491 )
6(8)
(
100,691 )
-
(
349,467 ) (
732,122 )
251,815
(
253,290 )
(
1,258,424 ) (
778,784 )
949,802
2,355,509
(
303,856 ) (
313,372 )
(
319,745 )
158,272
1,598,227
573,366
2,627,012
3,949,878
(
89,277 )
1,197,300
(
2,664,938 )
316,553
383,338
(
132,935 )
109,541
170,729
8,125
(
3,730 )
26,288,915
31,862,586
436,211
629,415
(
2,447,703 ) (
3,077,503 )
(
969,373 ) (
894,216 )
799,802
268,235
24,107,852
28,788,517

(Continued)

~10~

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

~11~

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

SEPTEMBER 30, 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 October 30, 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 as endorsed by FSC effective from 2020 are as follows:

Effective date by International New Standards, Interpretations and Amendments Accounting Standards Board Amendments to IAS 1 and IAS 8, ‘Disclosure initiative-definition of January 1, 2020 material’ Amendments to IFRS 3, ‘Definition of a business’ January 1, 2020 Amendments to IFRS 9, IAS 39 and IFRS 7, ‘Interest rate benchmark January 1, 2020 reform’ Amendment to IFRS 16, ‘Covid-19-related rent concessions’ June 1, 2020 (Note) Note: Earlier application from January1, 2020 is allowed by FSC.

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

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

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

(a) Changes in lease payments result in the revised consideration for the lease that is substantially the same as, or less than, the consideration for the lease immediately preceding the change;
(b) Any reduction in lease payments affects only payments originally due on or before June 30, 2021; and
(c) There is no substantive change to other terms and conditions of the lease.

~12~

(2) Effect of new issuances of or amendments to IFRSs as endorsed by the FSC but not yet adopted by the Group New standards, interpretations and amendments endorsed by the FSC effective from 2021 are as follows:

Effective date by International New Standards, Interpretations and Amendments Accounting Standards Board Amendments to IFRS 4, Extension of the temporary January 1, 2021 exemption from applying IFRS 9

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

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

New standards, interpretations and amendments issued by IASB but not yet included in the IFRSs as endorsed by the FSC are as follows:

Effective date by International New Standards, Interpretations and Amendments Accounting Standards Board Amendments to IFRS 3, ‘Reference to the conceptual framework’ January 1, 2022 To be determined by Amendments to IFRS 10 and IAS 28, ‘Sale or contribution of assets International between an investor and its associate or joint venture’ Accounting Standards Board IFRS 17, ‘Insurance contracts’ January 1, 2023 Amendments to IFRS 17, ‘Insurance contracts’ January 1, 2023 Amendments to IAS 1, ‘Classification of liabilities as current or nonJanuary 1, 2023 current’ Amendments to IAS 16, ‘Property, plant and equipment: proceeds January 1, 2022 before intended use’ — Amendments to IAS 37, ‘Onerous contracts cost of fulfilling a January 1, 2022 contract’ – Annual improvements to IFRS Standards 2018 2020 January 1, 2022 Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16, ‘ January 1, 2021 — Interest Rate Benchmark Reform Phase 2’

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

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.

~13~

(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:

==> picture [441 x 15] intentionally omitted <==

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

Name of the subsidiaries September 30, 2020 September 30, 2019
----- End of picture text -----

Name of the subsidiaries	September 30, 2020	September 30, 2019
Retail Support International Corp.	Financial statements	Financial statements
	were reviewed	were reviewed
President Chain Store (BVI) Holdings Ltd.	`〃`	`〃`
Shan Dong President Yinzuo Commercial Limited	`〃`	`〃`
Mech-President Corp.	`〃`	`〃`
President Transnet Corp.	`〃`	`〃`
President Drugstore Business Corp.	`〃`	`〃`
Books.com. Co., Ltd.	`〃`	`〃`
Uni-President Cold-Chain Corp.	`〃`	`〃`
President Chain Store (Hong Kong) Holdings	`〃`	`〃`
Limited
President Pharmaceutical Corp.	`〃`	`〃`
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.

~14~

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 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. President Transnet Corp. Uni-President Cold-Chain Corp. Uni-Wonder Corp. Duskin Serve Taiwan Co., Ltd. Books.com. Co., Ltd. Retail Support International 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 Delivery service Low-temperature logistics and warehousing Coffee chain store Cleaning instruments leasing and selling Retail business without shop Room-temperature logistics and warehousing	Ownership (%)	Ownership (%)	September 30, 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 70.00 60.00 60.00 51.00 50.03 25.00	Description
			September 30, 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 70.00 60.00 60.00 51.00 50.03 25.00	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 70.00 60.00 60.00 51.00 50.03 25.00
						(a)

~15~

Name of investor 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 Philippine Seven Corporation President Chain Store (Hong Kong) Holdings Limited President Chain Store (Hong Kong) Holdings Limited	Name of subsidiary 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. Store Sites Holding, Inc. PCSC (China) Drugstore Limited President Chain Store (Shanghai) Ltd.	Main business activities 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 and warehousing Professional investment Professional investment Operation of chain store	Ownership (%)	Ownership (%)	September 30, 2019 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 52.22 100.00 100.00 7.80 100.00	Description
			September 30, 2020 100.00 100.00 100.00 20.00 25.00 100.00 51.00 49.00 6.00 100.00 - - 60.00 100.00 100.00 52.22 100.00 100.00 7.80 100.00	December 31, 2019 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 52.22 100.00 100.00 7.80 100.00
						(b) (c)

~16~

Name of investor 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. Uni-President Logistics (BVI) Holdings Limited Ren-Hui Investment Corp. Ren-Hui Holdings Co., Ltd.	Name of subsidiary Shanghai President Logistics Co., Ltd. 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. Zhejiang Uni-Champion Logistics Development Co., Ltd. Ren Hui Holding Co., Ltd. Shan Dong President Yinzuo Commercial Limited	Main business activities Logistics and warehousing Supermarkets Sales of ice cream Logistics and warehousing Operation of chain store Sales of cosmetics and medicine Logistics and warehousing Logistics and warehousing Logistics and warehousing Professional investment Supermarkets	Ownership (%)	Ownership (%)	September 30, 2019 100.00 40.00 100.00 100.00 100.00 100.00 50.00 100.00 50.00 100.00 15.00	Description
			September 30, 2020 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 40.00 100.00 100.00 100.00 100.00 50.00 100.00 50.00 100.00 15.00

(a) As the Company controls the financial and operating policies of Retail Support International Corp., the latter is included as a subsidiary in the consolidated financial statements.
(b) The Company liquidated the subsidiary, Books.com. (BVI) Ltd., and the process of cancellation of registration has been completed in August 2020.
(c) The Company liquidated the subsidiary, Beijing Bokelai Customer Co., and the process of cancellation of registration has been completed in July 2020.
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.

~17~

(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.

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 ash and cash equivalents
	September 30, 2020	December 31, 2019	September 30, 2019
Cash on hand and petty cash	$ 1,675,205	$ 1,680,411	$ 1,289,869
Checking accounts and demand	13,330,741	9,606,131	18,051,327
deposits
Cash equivalents
Time deposits	25,034,086	26,620,058	26,851,598
Short-term financial instruments	7,322,620	7,538,795	5,920,186
	$ 47,362,652	$ 45,445,395	$ 52,112,980

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

	September 30, 2020	December 31, 2019	September 30, 2019
Financial assets mandatorily
measured at fair value through
profit or loss
Current items:
Beneficiary certificates	$ 2,052,937	$ 1,696,276	$ 1,583,016
Valuation adjustment	756	24	231
	$ 2,053,693	$ 1,696,300	$ 1,583,247

Non-current items:
Unlisted stocks	$ 275,243	$ 275,285	$ 275,553
Valuation adjustment	( 189,720) (	189,720) (	189,988)
	$ 85,523	$ 85,565	$ 85,565

A. The Group recognized net profit of $7,926 and $6,900 in relation to financial assets at fair value through profit or loss for the nine-month periods ended September 30, 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).

~18~

(3) Accounts receivable

Accounts receivable
	September 30, 2020	December 31, 2019	September 30, 2019
Accounts receivable	$ 5,603,836	$ 5,864,309	$ 5,566,477
Less: Allowance for doubtful
accounts	( 64,580)	( 55,829)	( 55,561)
	$ 5,539,256	$ 5,808,480	$ 5,510,916
A. The ageing analysis of accounts receivable that were past due but not impaired is September 30, 2020 December 31, 2019 Not past due $ 5,372,664 $ 5,508,376 Up to 90 days 219,922 335,189 91 to 180 days 8,841 18,625 181 to 365 days 2,409 63 Over 365 days - 2,056 $ 5,603,836 $ 5,864,309			as follows:
	September 30, 2020	December 31, 2019	September 30, 2019
	$ 5,372,664	$ 5,508,376	$ 5,149,135
	219,922	335,189	406,527
	8,841	18,625	9,910
	2,409	63	905
	-	2,056	-
	$ 5,603,836	$ 5,864,309	$ 5,566,477

The above aging analysis was based on past due date.

B. As of September 30, 2020, December 31, 2019 and September 30, 2019, accounts receivable were 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 September 30, 2020, December 31, 2019 and September 30, 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 $5,539,256, $5,808,480, and $5,510,916, respectively.
D. Information relating to credit risk is provided in Note 12(2).
(4) Inventories

Inventories
		September 30, 2020
		Allowance for
	Cost	valuation loss	Book value
Raw materials and work in process	$ 77,153	$ -	$ 77,153
Merchandise and finished goods	14,717,348	( 85,191)	14,632,157
	$ 14,794,501	($ 85,191)	$ 14,709,310

		December 31, 2019	December 31, 2019
		Allowance for
	Cost	valuation loss	Book value
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

		September 30, 2019	September 30, 2019
		Allowance for
	Cost	valuation loss	Book value
Raw materials and work in process	$ 66,512	$ -	$ 66,512
Merchandise and finished goods	12,797,694	( 98,058)	12,699,636
	$ 12,864,206	($ 98,058)	$ 12,766,148

~19~

The cost of inventories recognized as expenses for the period:

	For the three-month	For the three-month
	period ended	period ended
	September 30, 2020	September 30, 2019
Cost of goods sold and service costs	$ 43,993,997	$ 42,750,127
(Gain on reversal) loss on valuation of inventories ( 288 )		5,632
Spoilage	468,694	463,529
Others	86,188	72,060
	$ 44,548,591	$ 43,291,348

	For the nine-month	For the nine-month
	period ended	period ended
	September 30, 2020	September 30, 2019
Cost of goods sold and service costs	$ 124,710,217	$ 123,808,172
(Gain on reversal) loss on valuation of inventories ( 39,350 )		2,372
Spoilage	1,613,232	1,374,506
Others	237,560	205,949
	$ 126,521,659	$ 125,390,999

The Group reversed a previous inventory write-down because the Group sold and scrapped certain inventories which were previously provided with allowance for the three-month and nine-month periods ended September 30, 2020, respectively.

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

	September 30, 2020	December 31, 2019	September 30, 2019
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	577,747	537,161	469,730
	$ 847,701	$ 807,115	$ 739,684

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 $847,701, $807,115 and $739,684 as at September 30, 2020, December 31, 2019 and September 30, 2019, respectively.

~20~

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:

		For the three-month	For the three-month
		period ended	period ended
		September 30, 2020	September 30, 2019
Equity instruments at fair value through other
	comprehensive income
	Fair value change recognized in other
	comprehensive income	$ 94,923 (	$ 33,403)
Debt instruments at fair value through other
	comprehensive income
	Fair value change recognized in other
	comprehensive income	$ -	$ -
	Interest income recognized in profit or loss	$ -	$ -

		For the nine-month	For the nine-month
		period ended	period ended
		September 30, 2020	September 30, 2019
Equity instruments at fair value through other
	comprehensive income
	Fair value change recognized in other
	comprehensive income	$ 40,586	$ 95,070

Debt instruments at fair value through other
	comprehensive income
	Fair value change recognized in other
	comprehensive income	$ - (	$ 783)
	Interest income recognized in profit or loss	$ -	$ 1,180

C. As at September 30, 2020, December 31, 2019 and September 30, 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 $847,701, $807,115, and $739,684, 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).

~21~

(6) Investments accounted for using the equity method

	September 30, 2020	December 31, 2019	September 30, 2019
Associates
PresiCarre Corp.	$ 5,390,163	$ 5,723,198	$ 5,678,150
President Fair Development Corp.	2,070,274	2,039,406	2,013,938
Uni-President Development Corp.	749,034	764,191	751,128
President International Development
Corp.	449,069	459,696	465,259
Uni-President Organics Corp.	40,938	41,430	39,338
Tung Ho Development Corp.	34,751	106,384	108,792
President Technology Corp.	20,274	20,866	18,340
	8,754,503	9,155,171	9,074,945
Joint ventures
Mister Donut Taiwan Corp., Ltd.	$ 89,989	$ 100,768	$ 96,015
	$ 8,844,492	$ 9,255,939	$ 9,170,960

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

below:
	For the three-month	For the three-month
	period ended	period ended
	September 30, 2020	September 30, 2019
Total comprehensive income	$ 91,668	$ 146,018

	For the nine-month	For the nine-month
	period ended	period ended
	September 30, 2020	September 30, 2019
Total comprehensive income	$ 324,248	$ 381,030

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

below:
	For the three-month	For the three-month
	period ended	period ended
	September 30, 2020	September 30, 2019
Total comprehensive income	$ 6,161	$ 2,693
	For the nine-month	For the nine-month
	period ended	period ended
	September 30, 2020	September 30, 2019
Total comprehensive income	$ 2,691	$ 9,091

~22~

(7) Property, plant and equipment

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

			2020			Total
Land	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
30,208	1,555	321,340			1,059,683	5,415,787
-
-
331	( 358)	( 90)			37,317	51,133
$ 2,268,828	$ 2,457,603	$ 2,183,761			$ 4,026,681	$ 26,298,506
$ 2,285,195	$ 4,791,672	$ 6,926,333	$ 23,536,962	$ 20,237,612	$ 11,630,393	$ 69,408,167
( 16,367)	( 2,334,069)	( 4,742,572)	( 15,096,187)	( 13,316,754)	(7,603,712)	( 43,109,661)
$ 2,268,828	$ 2,457,603	$ 2,183,761	$ 8,440,775	$ 6,920,858	$ 4,026,681	$ 26,298,506

~23~

			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
-	99,820	169,162	1,999,943	1,428,463	1,323,208	5,020,596
-	- ( 20,709 ) ( 84,911)			( 69,249 ) ( 3,689 ) ( 178,558)
	30,199 84,974 110,127			172,732 ( 350,171 ) 29,104
- ( 152,273) ( 392,493 ) ( 1,658,477)				( 1,384,694) ( 997,030 ) ( 4,584,967)
571	( 2,921)	( 684) (	12,750)	40,348	52,831	77,395
$ 2,238,564	$ 2,717,931	$ 2,107,667	$ 7,126,914	$ 6,770,603	$ 4,298,421	$ 25,260,100
$ 2,254,930	$ 4,771,041	$ 6,563,496	$ 21,791,858	$ 18,759,192	$ 10,652,783	$ 64,793,300
( 16,366)	( 2,053,110)	( 4,455,829) (	14,664,944)	( 11,988,589)	( 6,354,362)	( 39,533,200)
$ 2,238,564	$ 2,717,931	$ 2,107,667	$ 7,126,914	$ 6,770,603	$ 4,298,421	$ 25,260,100

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.

~24~

`－` (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 Land Buildings Machinery and equipment Other equipment	September 30, 2020 Carrying amount $ 590,542 70,413,107 46,448 66,630 $ 71,116,727 $ $ $ $	September 30, 2020 Carrying amount $ 590,542 70,413,107 46,448 66,630 $ 71,116,727 $ $ $ $	December 31, 2019 Carrying amount $ 677,359 66,682,465 72,211 57,577 $ 67,489,612 For the three-month period ended September 30, 2020 Depreciation charge 36,124 3,137,699 8,127 7,457 3,189,407 For the nine-month period ended September 30, 2020 Depreciation charge 107,748 9,259,173 25,763 20,283 9,412,967	September 30, 2019
				Carrying amount
				$ 686,130 52,262,572 82,801 345,467 $ 53,376,970
				For the three-month period ended September 30, 2019 Depreciation charge $ 35,029 2,926,455 10,239 24,594 2,996,317
		$
		$
				For the nine-month period ended September 30, 2019 Depreciation charge $ 102,154 8,661,943 29,411 72,160 $ 8,865,668
		$
		$

C. For the three-month and nine-month periods ended September 30, 2020 and 2019, the additions to rightof-use assets were $5,408,470, $4,471,322, $14,253,532 and $10,592,609, respectively.

~25~

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 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 September 30, 2020 $ 282,397 108,356 15,534 145,537 138,038 16,838 For the nine-month period ended September 30, 2020 $ 853,256 332,928 46,217 383,501 402,032 56,763	For the three-month period ended September 30, 2019
		$ 259,658 435,657 24,700 245,676 179,798 - For the nine-month period ended September 30, 2019
		$ 801,325 540,110 52,717 448,494 401,497 -

E. For the nine-month periods ended September 30, 2020 and 2019, the Group’s total cash outflow for leases was $10,331,198 and $10,032,209, respectively.
F. Variable lease payments
(a) Some of the Group’s lease contracts contain variable lease payment terms that are linked to sales generated from a store or department store counter. For the above-mentioned stores, approximately 3.48% and 4.19% as at September 30, 2020 and 2019, respectively, are on the basis of variable payment terms and are accrued based on the sales amount. Variable payment terms are used for a variety of reasons. Various lease payments that depend on sales are recognized in profit or loss in the period in which the event or condition that triggers those payments occurs.
(b) A 1% increase in the aggregate sales amount of all stores with such variable lease contracts would increase total lease payments by approximately $3,835 and $4,485 for the nine-month periods ended September 30, 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 September 30, 2020, December 31, 2019 and September 30, 2019, amounted to $2,497,726, $2,597,780 and $17,011,846, respectively.
H. The Group has applied the practical expedient to “Covid-19-related rent concessions” and recognized the gain from changes in lease payments arising from the rent concessions amounting to $100,691, as other income for the nine-month period ended September 30, 2020.

(9) Leasing arrangements – lessor

A. The Group leases various assets including land, buildings, machinery and equipment, etc. Rental contracts are typically made for periods of 1 and 35 years. Lease terms are negotiated on an individual basis and contain a wide range of different terms and conditions.

~26~

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

Rental revenue Rental revenue from variable lease payments Rental revenue Rental revenue from variable lease payments	For the three-month period ended September 30, 2020 $ 455,593 $ 365,894 For the nine-month period ended September 30, 2020 $ 1,127,348 $ 864,161	For the three-month period ended September 30, 2019 $ 403,267 $ 316,409
		For the nine-month period ended September 30, 2019 $ 1,140,762 $ 876,429

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	September 30, 2020 $ 68,820 238,730 175,378 116,812 67,646 55,669 124,807 $ 847,862	December 31, 2019 $ - 256,072 206,455 148,086 90,464 60,519 158,193 $ 919,789	September 30, 2019
			$ 178,210 326,796 263,478 206,337 146,460 107,595 293,089 $ 1,521,965

The above maturity analysis was based on the period ended December 31. (10) Investment property

2020

		2020
At January 1 Depreciation charge Disposal ( At September 30 At January 1 Depreciation charge Transfer At September 30	Land $ 1,078,295 - ( 3,987) ( $ 1,074,308	Buildings $ 428,503 12,697) ( 8,754) ( $ 407,052 2019
	Land $ 1,059,538 - ( 18,757 $ 1,078,295

The fair value of the investment property held by the Group ranged from $3,775,055 to $4,113,896 at September 30, 2020, December 31, 2019 and September 30, 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.
Information on investment property pledged to others as collateral is provided in Note 8.

~27~

(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 74,951 Transfer 4,992 Amortization expense ( 156,379 ) Net exchange differences ( 519 ) Closing net book amount as of September 30 $ 400,331 At September 30 Cost $ 1,922,635 Accumulated amortization and impairment (1,522,304 ) $ 400,331 Software At January 1 Cost $ 1,648,652 Accumulated amortization and impairment (1,164,405 ) $ 484,247 Opening net book amount as of January 1 $ 484,247 Additions 39,761 Transfer 41,785 Amortization expense ( 176,291 ) Net exchange differences ( 1,372 ) Closing net book amount as of September 30 $ 388,130 At September 30 Cost $ 1,715,582 Accumulated amortization and impairment (1,327,452) $ 388,130			2020			Total
	Software	Goodwill	License agreement and customer list		Others
	$ 1,853,119	$ 2,202,925	$ 7,524,890		$ 493,171	$ 12,074,105

	(1,375,833 )	- (	388,319)		( 138,511)	( 1,902,663)
	$ 477,286	$ 2,202,925	$ 7,136,571		$ 354,660	$ 10,171,442

	$ 477,286	$ 2,202,925	$ 7,136,571		$ 354,660	$ 10,171,442
	74,951	-	-		38,795	113,746
	4,992	-	-	( 1,373 )		3,619
		- ( 145,619)		( 36,677 ) ( 338,675 )
	( 519 )	( 1,626)	-		2,403	258
	$ 400,331	$ 2,201,299	$ 6,990,952		$ 357,808	$ 9,950,390
	$ 1,922,635	$ 2,201,299	$ 7,524,890		$ 530,592	$ 12,179,416

	1,522,304 )	- (	533,938)		( 172,784)	( 2,229,026)
	$ 400,331 Software	$ 2,201,299	$ 6,990,952 2019		$ 357,808	$ 9,950,390 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
	39,761	-	-		6,710	46,471
	41,785	-	-		5,259	47,044
		- ( 145,619 )		( 33,471 ) ( 355,381 )
	( 1,372 )	601	-		127 (	644)
	$ 388,130	$ 2,204,885	$ 7,185,111		$ 353,244	$ 10,131,370
	$ 1,715,582	$ 2,204,885	$ 7,524,890		$ 479,850	$11,925,207

	1,327,452)	-	( 339,779)		( 126,606 ) (	1,793,837 )
	$ 388,130	$ 2,204,885	$ 7,185,111		$ 353,244	$10,131,370

Amortization expense on intangible assets are recognized as operating expenses.

~28~

(12) Other non-current assets

Guarantee deposits paid Others	September 30, 2020 $ 3,044,824 446,443 $ 3,491,267	December 31, 2019 $ 2,911,887 787,932 $ 3,699,819	September 30, 2019 $ 2,903,597 390,716 $ 3,294,313

(13) Impairment of non-financial assets

A. There were no impairment loss nor reversal of impairment loss recognized for the nine-month periods ended September 30, 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.

(14) Short-term borrowings

Short-term borrowings
Type of borrowings Bank borrowings Credit loan Type of borrowings Bank borrowings Credit loan Type of borrowings Bank borrowings Credit loan	September 30, 2020 $ 9,254,583 December 31, 2019 $ 6,014,658 September 30, 2019 $ 5,948,113	Interest rate range 0.52%~5.00% 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 nine-month periods ended September 30, 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 Incentive bonus payable to franchisees Payables for acquisition of property, plant and equipment Employees’ compensation and remuneration for directors and supervisors Payables for labor and health insurance Rent payable Others	September 30, 2020 $ 10,502,864 5,085,612 1,447,000 1,002,501 786,337 660,464 251,087 62,955 3,784,202 $ 23,583,022	December 31, 2019 $ 11,453,224 5,206,353 1,345,877 1,158,473 1,364,370 872,361 248,584 66,133 4,881,130 $ 26,596,505	September 30, 2019 $ 14,305,792 5,001,371 989,538 964,824 829,229 671,964 238,796 59,068 4,216,297 $ 27,276,879

~29~

(16) Other current liabilities

		September 30, 2020	September 30, 2020	December 31, 2019	December 31, 2019	September 30, 2019	September 30, 2019	September 30, 2019
	Advance receipts for gift
	certificates	$	1,457,476	$	1,351,370	$		1,293,164
	Advance receipts of deposits in
	ICASH cards		1,444,859		1,298,919			1,254,428
	Current portion of long-term
	liabilities		233,323		221,888			315,429
	Others		408,706		277,414			244,151
		$	3,544,364	$	3,149,591	$		3,107,172
(17)	Long-term borrowings
	Type of borrowings	Interest rate range			Collateral		September 30, 2020
	Long-term bank borrowings
	Credit loan		4.875%		None	$		221,354
	Secured borrowings	1.44%~1.75%		Property, plant and
				equipment				523,665
								745,019
	Less: Current portion					(		233,323)
						$		511,696
	Type of borrowings	Interest rate range			Collateral		December 31, 2019
	Long-term bank borrowings
	Credit loan	4.88%~5.32%			None	$		292,288
	Secured borrowings	1.67%~1.96%		Property, plant and
				equipment				437,712
								730,000
	Less: Current portion					(		221,888)
						$		508,112
	Type of borrowings	Interest rate range			Collateral		September 30, 2019
	Long-term bank borrowings
	Credit loan	4.88%~6.69%			None	$		414,938
	Secured borrowings	1.72%~1.96%		Property, plant and
				equipment				419,495
								834,433
	Less: Current portion					(		315,429)
						$		519,004

There was no capitalization of borrowing costs for the nine-month periods ended September 30, 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

~30~

additional year thereafter, subject to a maximum of 45 units. Pension benefits are based on the number of units accrued and the average monthly salaries and wages of the last six months prior to retirement. The Company and its domestic subsidiaries contribute monthly an amount equal to 2%~8% of employees’ monthly salaries and wages to a retirement fund at the Bank of Taiwan, the trustee, under the name of the independent retirement fund committee. Also, the Company and its domestic subsidiaries would assess the balance in the aforementioned labor pension reserve account by December 31, every year. If the account balance is insufficient to pay the pension calculated by the aforementioned method to the employees expected to qualify for retirement in the following year, the Company and its domestic subsidiaries will make contributions to cover the deficit by next March. Furthermore, the subsidiary, Philippine Seven Corporation has defined benefit pension plan.

For the aforementioned pension plan, the Group recognized pension costs of $32,890, $35,298, $98,722, and $105,707 for the three-month and nine-month periods ended September 30, 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 nine-month periods ended September 30, 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 and nine-month periods ended September 30, 2020 and 2019 were $234,756, $238,040, $696,628 and $714,478, respectively.

(19) Other non-current liabilities

Guarantee deposit received Provision for decommissioning liability Others	September 30, 2020 $ 3,697,534 558,951 280,111 $ 4,536,596	December 31, 2019 $ 3,560,485 508,707 299,628 $ 4,368,820	September 30, 2019 $ 3,510,895 498,996 296,018 $ 4,305,909

(20) Share capital

As of September 30, 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 September 30, 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.

~31~

(22) Retained earnings

A. Under the Company’s Articles of Incorporation, the current year’s earnings, if any, must first be used to pay all taxes and offset prior years’ operating losses, then 10% of the remaining amount is to be set aside as a legal reserve. The Company may then set aside or reserve a certain amount as special reverse according to the relevant regulations. The appropriation of the remaining earnings and prior years’ unappropriated retained earnings should be proposed by the Board of Directors and voted on by the shareholders at the shareholders’ meeting. The dividends and bonus to be distributed to shareholders may be 50%-100% of the total distributable amount, and 50%-100% of dividends are to be distributed as cash dividends, and the remaining undistributed amount to be set aside as unappropriated retained earnings.
B. Except for covering accumulated deficit or issuing new stocks or cash to shareholders in proportion to their share ownership, the legal reserve shall not be used for any other purpose. The use of the legal reserve for the issuance of stocks or cash to shareholders in proportion to their share ownership is permitted, provided that the distribution of the reserve is limited to the portion in excess of 25% of the Company’s paid-in capital.
C. In accordance with the regulations, the Company shall set aside a special reserve for the debit balance on other equity items at the balance sheet date before distributing earnings. When the debit balance on other equity items is reversed subsequently, the reversed amount should be included in the distributable earnings.
D. The appropriations for 2019 and 2018 were resolved by the shareholders on June 17, 2020 and June 12, 2019, respectively, as follows:

2019, respectively, as follows:
Legal reserve Special reserve appropriated (reversal) 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	2018
	Amount $ 1,055,147 380,187 9,356,600		Dividends per share (in dollars)
			$ 8.80

(23) Other equity items

2020

At January 1 Revaluation: –Group –Associates Revaluation-tax Currency translation differences: –Group –Associates At September 30	Financial statements translation differences of foreign operations ($ 869,908) - - ( - ( 641,964) ( 2,843) $ 1,514,715)	Unrealized gains (or loss) on valuation of financial assets at fair value through other comprehensive income Total $ 489,721 ($ 380,187) 40,586 40,586 5,666) ( 5,666) 2,669 2,669 - ( 641,964) - ( 2,843) $ 527,310 ($ 987,405)

~32~

2019

At January 1 Revaluation: –Group –Associates Revaluation-tax Currency translation differences: –Group –Associates At September 30	Financial statements translation differences of foreign operations ($ 279,829) - - - 255,449 2,211 ($ 22,169)	Unrealized gains (or loss) on valuation of financial assets at fair value through other comprehensive income $ 333,434 94,287 2,132 ( 7,930) - - $ 421,923	Total $ 53,605 94,287 2,132 ( 7,930) 255,449 2,211 $ 399,754

(24) Operating revenue

Operating revenue
Revenue from contracts with customers Revenue from contracts with customers	For the three-month period ended September 30, 2020 $ 67,803,926 For the nine-month period ended September 30, 2020 $ 192,346,204	For the three-month period ended September 30, 2019
		$ 66,088,666
		For the nine-month period ended September 30, 2019
		$ 191,121,985

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 September 30, 2020 Timing of revenue recognition –At a point in time –Over time For the three-month period ended September 30, 2019 Timing of revenue recognition –At a point in time –Over time	Convenience stores $ 44,256,994 225,911 $ 44,482,905 Convenience stores $ 40,816,692 134,122 $ 40,950,814	Retail business group $ 13,704,207 3,713,568 $ 17,417,775 Retail business group $ 15,810,313 3,288,669 $ 19,098,982	Logistics business group $ 196,355 337,353 $ 533,708 Logistics business group $ 293,658 222,170 $ 515,828	Others $ 5,206,180 163,358 $ 5,369,538 Others $ 5,279,012 244,030 $ 5,523,042	Total
					$ 63,363,736 4,440,190
					$ 67,803,926
					Total
					$ 62,199,675 3,888,991
					$ 66,088,666

~33~

For the nine-month period	Convenience	Retail business	Retail business		Logistics
ended September 30, 2020	stores		group	business group		Others	Total
Timing of revenue
recognition
–At a point in time	$ 124,226,167	$	40,465,114	$	535,504	$ 14,205,248	$ 179,432,033
–Over time	609,417		10,694,344		1,046,741	563,669	12,914,171
	$ 124,835,584	$	51,159,458	$	1,582,245	$ 14,768,917	$ 192,346,204
For the nine-month period	Convenience	Retail business			Logistics
ended September 30, 2019	stores		group	business group		Others	Total
Timing of revenue
recognition
–At a point in time	$ 117,789,512	$	46,422,331	$	884,291	$ 14,634,939	$ 179,731,073
–Over time	385,575		9,583,708		686,609	735,020	11,390,912
	$ 118,175,087	$	56,006,039	$	1,570,900	$ 15,369,959	$ 191,121,985
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	September 30, 2020 $ 3,304,218 813,595 436,290 722,913 322,383 $ 5,599,399 September 30, 2020 $ 5,041,610 557,789 $ 5,599,399	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	September 30, 2019 $ 1,869,830 801,820 340,467 417,274 392,314 $ 3,821,705 September 30, 2019 $ 3,416,555 405,150 $ 3,821,705	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 $1,968,886 and $2,173,785 for the nine-month periods ended September 30, 2020 and 2019, respectively.

~34~

(25) Expenses by nature

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 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 September 30, 2020 $ 39,803,225 6,604,003 6,065,625 5,046,603 998,934 269,427 5,513,082 $ 64,300,899 For the nine-month period ended September 30, 2020 $ 112,772,264 19,498,686 17,020,733 14,830,592 3,180,362 762,646 15,005,000 $ 183,070,283	For the three-month period ended September 30, 2019
		$ 38,650,692 6,797,177 5,781,699 4,696,329 1,271,238 706,033 4,779,419
		$ 62,682,587
		For the nine-month period ended September 30, 2019
		$ 111,940,869 19,638,505 16,377,993 13,883,985 3,375,551 1,041,321 14,897,276
		$ 181,155,500

(26) Employee benefit expense

Utilities expense Operating lease payments Other costs and expenses Total operating costs and operating expenses Employee benefit expense	3,180,362 762,646 15,005,000 $ 183,070,283	3,375,551 1,041,321 14,897,276 $ 181,155,500
Wages and salaries Labor and health insurance fees Pension costs Other personnel expenses Wages and salaries Labor and health insurance fees Pension costs Other personnel expenses	For the nine-month period ended September 30, 2020 $ 16,110,915 1,448,261 795,350 1,144,160 $ 19,498,686 For the three-month period ended September 30, 2020 $ 5,463,903 475,648 267,646 396,806 $ 6,604,003	For the three-month period ended September 30, 2019
		$ 5,629,754 496,623 273,338 397,462
		$ 6,797,177
		For the nine-month period ended September 30, 2019 $ 16,197,470 1,509,699 820,185 1,111,151
		$ 19,638,505

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.

~35~

B. For the three-month and nine-month periods ended September 30, 2020 and 2019, employees’ compensation was accrued at $155,006, $149,580, $420,693 and $442,439, respectively; while directors’ and supervisors’ remuneration was accrued at $51,787, $49,974, $140,552 and $147,817, respectively.

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

(27)	at the website of the Taiwan Stock Exchange. Interest income
(28)	Other income Grants income Rental revenue Dividend income Others Grants income Rental revenue Dividend income Others Interest income Interest income	For the three-month period ended September 30, 2020 $ 190,913 72,331 - 221,703 $ 484,947 For the nine-month period ended September 30, 2020 $ 535,707 211,556 60,312 617,009 $ 1,424,584 For the three-month period ended September 30, 2020 $ 110,057 For the nine-month period ended September 30, 2020 $ 425,715	For the three-month period ended September 30, 2019
			$ 205,959
			For the nine-month period ended September 30, 2019
			$ 616,912
			For the three-month period ended September 30, 2019
			$ 175,366 72,548 257 187,784
			$ 435,955
			For the nine-month period ended September 30, 2019
			$ 499,090 221,920 47,491 784,308
			$ 1,552,809

~36~

(29) Other gains and losses

Gain (loss) on disposal of property, plant and
equipment
Loss on disposal of investments
Gain from lease modification
Other gains and losses
(

Gain (loss) on disposal of property, plant and
equipment
Loss on disposal of investments
Gain from lease modification
Other gains and losses
(
Finance costs

Interest expense

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

Current tax:
Current tax on profit for the period
Tax on undistributed surplus earnings
Under (over) provision of prior year’s income tax
Total current tax
Deferred tax:
Origination and reversal of temporary differences
Income tax expense

For the three-month
period ended
September 30, 2020
For the three-month
period ended
September 30, 2019
$ 19,636 ($ 22,287 )
- (
30 )
16,838
-

18,369)
22,030
$ 18,105
($ 287 )
For the nine-month
period ended
September 30, 2020
For the nine-month
period ended
September 30, 2019
$ 35,387 ($ 23,380 )
- (
3,462 )
56,763
-

42,831)
(
9,934)
$ 49,319
($ 36,776 )
For the three-month
period ended
September 30, 2020
For the three-month
period ended
September 30, 2019
$ 318,979
$ 287,679
For the nine-month
period ended
September 30, 2020
For the nine-month
period ended
September 30, 2019
$ 969,321
$ 894,008
For the three-month
period ended
September 30, 2020
For the three-month
period ended
September 30, 2019
$ 872,560
$ 778,872
-
-

1,130
(
6,289)
873,690
772,583
(
154,772)
4,095
$ 718,918
$ 776,678

(30) Finance costs

(31) Income tax

~37~

Current tax: Current tax on profit for the period Tax on undistributed surplus earnings Over provision of prior year’s income tax Total current tax Deferred tax: Origination and reversal of temporary differences Income tax expense	For the nine-month period ended September 30, 2020 $ 2,287,082 - ( 203,623) 2,083,459 ( 312,096) $ 1,771,363	For the nine-month period ended September 30, 2019 $ 2,169,569 20,212 ( 5,292) 2,184,489 44,989 $ 2,229,478

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

Changes in fair value of financial assets at fair value through other comprehensive income Changes in fair value of financial assets at fair value through other comprehensive income	For the three-month period ended September 30, 2020 $ 2,083 For the nine-month period ended September 30, 2020 ($ 2,669)	For the three-month period ended September 30, 2019 ($ 947) For the nine-month period ended September 30, 2019 $ 7,930

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

(32) 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 September 30, 2020 Amount Weighted average number of ordinary shares outstanding Earnings per share after tax (shares in thousands) (in dollars) $ 2,873,672 1,039,622 $ 2.76 $ 2,873,672 1,039,622 - 589 $ 2,873,672 1,040,211 $ 2.76	For the three-month period ended September 30, 2020 Amount Weighted average number of ordinary shares outstanding Earnings per share after tax (shares in thousands) (in dollars) $ 2,873,672 1,039,622 $ 2.76 $ 2,873,672 1,039,622 - 589 $ 2,873,672 1,040,211 $ 2.76	For the three-month period ended September 30, 2020 Amount Weighted average number of ordinary shares outstanding Earnings per share after tax (shares in thousands) (in dollars) $ 2,873,672 1,039,622 $ 2.76 $ 2,873,672 1,039,622 - 589 $ 2,873,672 1,040,211 $ 2.76
	Amount after tax $ 2,873,672 $ 2,873,672 - $ 2,873,672	Weighted average number of ordinary shares outstanding (shares in thousands) 1,039,622 1,039,622 589 1,040,211

~38~

For the three-month period ended September 30, 2019

Amount Weighted average number of ordinary shares outstanding Earnings per share after tax (shares in thousands) (in dollars) $ 2,772,206 1,039,622 $ 2.67 $ 2,772,206 1,039,622 - 516 $ 2,772,206 1,040,138 $ 2.67 For the nine-month period ended September 30, 2020	Amount Weighted average number of ordinary shares outstanding Earnings per share after tax (shares in thousands) (in dollars) $ 2,772,206 1,039,622 $ 2.67 $ 2,772,206 1,039,622 - 516 $ 2,772,206 1,040,138 $ 2.67 For the nine-month period ended September 30, 2020	Earnings per share (in dollars) $ 2.67
		$ 2.67
Amount Weighted average number of ordinary shares outstanding Earnings per share after tax (shares in thousands) (in dollars) $ 7,965,340 1,039,622 $ 7.66 $ 7,965,340 1,039,622 - 2,024 $ 7,965,340 1,041,646 $ 7.65 For the nine-month period ended September 30, 2019 Amount Weighted average number of ordinary shares outstanding Earnings per share after tax (shares in thousands) (in dollars) $ 8,269,957 1,039,622 $ 7.95 $ 8,269,957 1,039,622 - 1,930 $ 8,269,957 1,041,552 $ 7.94		Earnings per share (in dollars) $ 7.66
		$ 7.65
Amount after tax $ 8,269,957 $ 8,269,957 - $ 8,269,957	Weighted average number of ordinary shares outstanding (shares in thousands) 1,039,622 1,039,622 1,930 1,041,552
		$ 7.94

~39~

(33) Supplemental cash flow information

A. 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

B. Financing activities with no cash flow effects

Stock dividends paid – subsidiary

For the nine-month period ended September 30, 2020 $ 5,415,787 1,364,370 ( 786,337) $ 5,993,820 For the nine-month period ended September 30, 2020 $ 128,866	For the nine-month period ended September 30, 2019 $ 5,020,596 914,557 ( 829,229) $ 5,105,924 For the nine-month period ended September 30, 2019 $ -

~40~

(34) Changes in liabilities from financing activities

			2020	2020			Liabilities from financing activities-gross $ 79,718,628 ( 15,820,215) ( 853,256) ( 65,257) 24,073,332 $ 87,053,232
Short-term borrowings $ 6,014,658 3,239,925 - - - $ 9,254,583	Dividend payable $ - ( 10,473,302) - - 10,473,302 $ -	Long-term borrowings $ 508,112 10,926 ( - ( 2,763 ( 10,105) $ 511,696	Lease liabilities Guarantee deposits received $ 68,827,038 $ 3,560,485 8,715,296) 137,049 853,256) - ( 68,020) - 13,559,891 - $ 72,750,357 $ 3,697,534 2019		Other non- current liabilities $ 808,335 ( 19,517) - - 50,244 $ 839,062
							Liabilities from financing activities-gross $ 65,380,427 ( 20,425,936) 99,952 20,015,876 $ 65,070,319
	Dividend payable $ - ( 10,458,106) - 10,458,106 $ -	Long-term borrowings $ 847,040 ( 360,485) 12,018 20,431 $ 519,004	Lease liabilities $ 52,938,613 ( 8,189,563) 87,934 9,460,309 $ 54,297,293	Guarantee deposits received $ 3,413,265 97,630 - - $ 3,510,895		Other non- current liabilities $ 943,724 225,740) - 77,030 $ 795,014
					(

Note: Presented in cash flows from operating activities.

~41~

7. RELATED PARTY TRANSACTIONS

(1) Parent and ultimate controlling party

The Company’s parent company and the Group’s ultimate parent company is Uni-President Enterprises Corp. which holds a 45.4% equity interest in the Company as of September 30, 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. Subsidiary of ultimate parent company Tait Marketing & Distribution Co., Ltd. 〃 Tung Ang Enterprises Corp. 〃 Lien-Bo Enterprises Corp. 〃 President Packaging Corp. 〃 President Tokyo Corp. 〃〃

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.

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

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

〃

〃

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

Koasa Yamako Corp.

(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 September 30, 2020 $ 152,053 39,885 79,308 13,903 3,821 15,271 4,347 1,501 $ 310,089	For the three-month period ended September 30, 2019
		$ 143,533 35,320 61,557 18,881 3,120 15,761 4,689 1,677
		$ 284,538

~42~

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 nine-month period ended September 30, 2020 $ 429,876 102,631 244,420 43,512 12,871 46,249 11,128 3,659 $ 894,346	For the nine-month period ended September 30, 2019
		$ 433,371 105,458 188,245 56,812 9,536 45,607 10,688 4,333
		$ 854,050

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 September 30, 2020 $ 4,470,443 53,380 1,550,671 560,773 $ 6,635,267	For the three-month period ended September 30, 2019
		$ 4,328,793 57,433 1,291,677 698,498
		$ 6,376,401

Ultimate parent company Associates Sister companies Other related parties	For the nine-month period ended September 30, 2020 $ 12,497,187 157,646 4,014,572 1,658,549 $ 18,327,954	For the nine-month period ended September 30, 2019
		$ 12,373,257 190,971 3,273,137 1,832,027
		$ 17,669,392

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	September 30, 2020 $ 145,191 83,349 49,042 4,163 $ 281,745	December 31, 2019 $ 245,123 64,598 81,774 4,289 $ 395,784	September 30, 2019 $ 155,480 88,738 55,004 5,293 $ 304,515

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.

~43~

D. Payables to related parties

Payables to related parties
Notes payable and accounts payable Ultimate parent company Associates Sister companies Other related parties	September 30, 2020 $ 1,824,048 63,633 709,683 369,011 $ 2,966,375	December 31, 2019 $ 1,765,350 65,907 583,883 348,524 $ 2,763,664	September 30, 2019 $ 2,977,454 65,609 851,106 517,807
			$ 4,411,976

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

`－` E. Leasing arrangements lessee

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

(b) Acquisition of right-of-use assets

Ultimate parent company Associates Sister companies Other related parties	For the nine-month period ended September 30, 2020 $ 23,135 43,535 31,298 - $ 97,968	For the nine-month period ended September 30, 2019 $ 112,002 12,157 12,398 513,952 $ 650,509

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

(c) Lease expenses

assets by $1,401,225. Lease expenses
Ultimate parent company Associates Sister companies Other related parties Ultimate parent company Associates Sister companies Other related parties	For the three-month period ended September 30, 2020 $ 217 19,686 3,557 568 $ 24,028 For the nine-month period ended September 30, 2020 $ 913 42,665 11,619 1,697 $ 56,894	For the three-month period ended September 30, 2019 $ 796 14,009 562 555
		$ 15,922
		For the nine-month period ended September 30, 2019 $ 11,668 33,536 1,857 1,339 $ 48,400

~44~

(d) Lease liabilities

(d) Lease liabilities
Ultimate parent company Associates Sister companies Other related parties Key management compensation Short-term employee benefits Short-term employee benefits	September 30, 2020 $ 92,257 287,482 275,642 486,430 $ 1,141,811	December 31, 2019 $ 128,016 546,049 294,591 524,690 $ 1,493,346 For the three-month period ended September 30, 2020 $ 152,524 For the nine-month period ended September 30, 2020 $ 456,321		September 30, 2019
				$ 146,560 646,561 280,228 537,372
				$ 1,610,721
				For the three-month period ended September 30, 2019
			$ 157,535
			For the nine-month period ended September 30, 2019
			$ 529,203

(4) Key management compensation

8. PLEDGED ASSETS

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

Pledged asset		Book value	September 30, 2019 $ 128,643 46,248 565,016 - 31,495 $ 771,402	Purpose
	September 30, 2020 $ 218,675 34,120 699,330 56,924 83,658 $ 1,092,707	December 31, 2019 $ 128,643 42,130 591,493 - 61,925 $ 824,191
Land Buildings Transportation equipment Investment property Pledged time deposits (Recognized as “Other non-current assets – guarantee deposits paid ”)				Long-term and short-term borrowings, guarantee facilities and performance guarantee Long-term and short-term borrowings and guarantee facilities Long-term borrowings Performance guarantee Performance guarantee

~45~

9. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNIZED CONTRACT COMMITMENTS

None.

10. SIGNIFICANT DISASTER LOSS

None.

11. SIGNIFICANT EVENTS AFTER THE BALANCE SHEET DATE

None.

12. OTHERS

(1)Capital management

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

(2)Financial instruments

A. Financial instruments by category

ture to maximize the equity interest of ncial instruments Financial instruments by category	shareholders.
Financial assets Financial assets at fair value through profit or loss Financial assets mandatorily measured at fair value through profit or loss Financial assets at fair value through other comprehensive income Designation of equity instrument Financial assets at amortized cost Cash and cash equivalents Accounts receivable, net Other receivables Other current assets (Note) Guarantee deposits paid Other non-current assets (Note) Financial liabilities Financial liabilities at amortized cost Short-term borrowings Notes payable Accounts payable (including related parties) Other payables Long-term borrowings (including current portion) Guarantee deposits received Lease liabilities	September 30, 2020 $ 2,139,216 $ 847,701 $ 47,362,652 5,539,256 2,708,281 2,358,423 3,044,824 31,181 61,044,617 $ 64,031,534 $ 9,254,583 1,125,425 26,214,707 23,583,022 745,019 3,697,534 64,620,290 $ 72,750,357 $ 137,370,647	December 31, 2019 $ 1,781,865 $ 807,115 $ 45,445,395 5,808,480 1,460,354 2,172,863 2,911,887 40,351 57,839,330 $ 60,428,310 $ 6,014,658 1,214,702 23,587,695 26,596,505 730,000 3,560,485 61,704,045 $ 68,827,038 $ 130,531,083	September 30, 2019
			$ 1,668,812 $ 739,684 $ 52,112,980 5,510,916 2,301,736 2,120,440 2,903,597 40,614 64,990,283 $ 67,398,779 $ 5,948,113 3,063,910 27,098,561 27,276,879 834,433 3,510,895 67,732,791 $ 54,297,293 $ 122,030,084

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

~46~

B. Risk management policies

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

C. Significant financial risks and degrees of financial risks

(a)Market risk

Foreign exchange risk

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

(Foreign currency: functional currency) Financial assets Monetary items USD: NTD RMB: NTD JPY: NTD HKD: NTD EUR: NTD Non-monetary items JPY: NTD Financial liabilities Monetary items USD: NTD RMB: NTD JPY: NTD	September 30, 2020 Foreign currency amount (In thousands) Exchange rate Book value (NTD) $ 1,624 29.1000 $ 47,258 1,155 4.2851 4,949 39,699 0.2756 10,941 662 3.7548 2,486 203 34.1500 6,932 $ 860,400 0.2756 $ 237,126 $ 4,047 29.1000 $ 117,768 1,243 4.2851 5,326 76,683 0.2756 21,134	December 31, 2019	December 31, 2019
	Foreign currency amount (In thousands) $ 1,624 1,155 39,699 662 203 $ 860,400 $ 4,047 1,243 76,683	Foreign currency amount (In thousands) $ 792 900 43,340 766 273 $ 907,500 $ 3,610 996 52,532	Exchange rate Book value (NTD) 29.9800 $ 23,744 4.3055 3,875 0.2760 11,962 3.8478 2,947 33.5900 9,170 0.2760 $ 250,470 29.9800 $ 108,228 4.3055 4,288 0.2760 14,499	Book value (NTD)

~47~

(Foreign currency: functional currency) Financial assets Monetary items USD: NTD RMB: NTD JPY: NTD HKD: NTD Non-monetary items JPY: NTD Financial liabilities Monetary items USD: NTD RMB: NTD JPY:NTD	September 30, 2019	September 30, 2019
	Foreign currency amount (In thousands) $ 1,175 470 85,528 1,687 $ 835,200 $ 3,722 834 97,379	Exchange rate Book value (NTD) 31.0400 $ 36,472 4.3423 2,041 0.2878 24,615 3.9597 6,680 0.2878 $ 240,371 31.0400 $ 115,531 4.3423 3,621 0.2878 28,026

IV. Total exchange gain or loss, including realized and unrealized from significant foreign exchange variations on monetary items held by the Group amounted to $3,487, ($1,105), $8,422 and ($1,301) for the three-month and nine-month periods ended September 30, 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 nine-month periods ended September 30, 2020 and 2019 would increase/decrease by $3,526 and $3,953, respectively. Foreign exchange risk with respect to JPY primarily arises from the exchange gain or loss resulting from foreign currency translation of cash, financial assets at fair value through other comprehensive income – non-current and accounts payable denominated in JPY. If the NTD:JPY exchange rate appreciates/depreciates by 5%, with all other factors remaining constant, the Group’s comprehensive income for the nine-month periods ended September 30, 2020 and 2019 would increase/decrease by $11,347 and $11,848, 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 nine-month periods ended September 30, 2020 and 2019 would have increased/decreased by $9,411 and $8,236, 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 $42,385 and $36,984, respectively, as a result of other comprehensive income classified as equity investment at fair value through other comprehensive income.

~48~

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 nine-month periods ended September 30, 2020 and 2019, the Group’s borrowings at variable rate were mainly denominated in New Taiwan dollars and Philippine Peso.
II. If the borrowing interest rate had increased/decreased by 0.25% with all other variables held constant, profit, net of tax for the nine-month periods ended September 30, 2020 and 2019 would have decreased/increased by $1,863 and $2,086, respectively. The main factor is that changes in interest expense result in floating-rate borrowings.
(b) Credit risk
I. Credit risk refers to the risk of financial loss to the Group arising from default by the clients or counterparties of financial instruments on the contract obligations. The main factor is that counterparties could not repay in full of the contract cash flows of the accounts receivable based on the agreed terms.
II. The Group manages their credit risk taking into consideration the entire group’s concern. For banks and financial institutions, only independently rated parties with a minimum rating of 'A' are accepted.
III. The Group adopts management of credit risk, whereby the default occurs when the contract payments are past due over 90 days.
IV. The Group assess whether there has been a significant increase in credit risk on that instrument since initial recognition if the contract payments were past due over 30 days based on the terms.
V. The Group operates a chain of retail stores, thus the ratio of accounts receivable to total asset is low and the probability that accounts receivable can not be received is low. For accounts receivable from other transactions, the Group manages individually and follow up regularly. The Group classifies customers’ accounts receivable in accordance with credit rating of customer. The Group applies the simplified approach to estimate expected credit loss to assess the default possibility of accounts receivable. Movements in relation to the group applying the simplified approach to provide loss allowance for accounts receivable are as follows:

			2020
		Accounts receivable
At January 1		$	55,829
Provision for impairment			17,410
Reversal of impairment	(		106)
Write-offs	(		3,137)
Effect of foreign exchange	(		5,416)
At September 30		$	64,580
			2019
		Accounts receivable
At January 1		$	55,464
Provision for impairment			6,947
Reversal of impairment	(		3,746)
Write-offs	(		1,599)
Effect of foreign exchange	(		1,505)
At September 30		$	55,561

~49~

VI. The Group has no written-off financial assets that are still under recourse procedures on September 30, 2020, December 31 2019 and September 30, 2019.

(c) Liquidity risk

I. Cash flow forecasting is performed by the operating entities of the Group and aggregated by the Group’s finance department. It monitors rolling forecasts of liquidity requirements to ensure the Group has sufficient cash to meet operational needs, while maintaining sufficient headroom on its undrawn committed borrowing facilities, at all times, so that the Group does not breach borrowing limits or covenants on any of its borrowing facilities. Such forecasting takes into consideration the Group’s debt financing plans, covenant compliance, and compliance with internal balance sheet ratio targets.
II. The Group invests surplus cash in interest bearing current accounts, time deposits, money market fund and marketable securities, and chooses instruments with appropriate maturities or sufficient liquidity to provide sufficient headroom as determined by the aforementioned forecasting. The Group held money market funds of $2,053,693, $1,696,300 and $1,583,247 as at September 30, 2020, December 31, 2019, and September 30, 2019, respectively, which are expected to readily generate cash inflows for the purpose of managing liquidity risk.
III. The Group has undrawn borrowing facilities of $12,943,360, $12,597,913 and $13,613,541 as of September 30, 2020, December 31, 2019 and September 30, 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:

Non-derivative financial liabilities:
September 30, 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) Non-derivative financial liabilities: September 30, 2019 Short-term borrowings Lease liabilities Long-term borrowings (including current portion)	Less than 1 year $ 9,266,180 13,306,231 252,467 Less than 1 year $ 6,020,015 12,331,925 244,733 Less than 1 year $ 5,996,566 12,123,134 347,151	Between 1 and 2 years $ - 12,935,872 137,240 Between 1 and 2 years $ - 12,256,464 122,071 Between 1 and 2 years $ - 10,960,395 121,667	Between 2 and 3 years $ - 12,029,473 112,082 Between 2 and 3 years $ - 10,678,168 99,136 Between 2 and 3 years $ - 9,942,164 96,158	Over 3 years
				$ - 41,311,727 285,983 Over 3 years
				$ - 37,312,481 316,524 Over 3 years
				$ - 26,927,988 484,552

~50~

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.

	September	30, 2020
Book value $ 3,044,824 $ 3,697,534		Fair value
	Level 1 $ - $ - December	Level 2 $ - $ - 31, 2019	Level 3
			$ 3,031,662
			$ 3,679,039

Book value $ 2,911,887 $ 3,560,485		Fair value
	Level 1 $ - $ - September	Level 2 $ - $ - 30, 2019	Level 3
			$ 2,887,439
			$ 3,530,355

Book value $ 2,903,597 $ 3,510,895		Fair value
	Level 1 $ - $ -	Level 2 $ - $ -	Level 3
			$ 2,880,398
			$ 2,482,572

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

~51~

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:

September 30, 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 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 September 30, 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	Level 1 $ 2,053,693 - 2,053,693 843,353 843,353 $ 2,897,046 Level 1 $ 1,696,300 - 1,696,300 802,767 802,767 $ 2,499,067 Level 1 $ 1,583,247 - 1,583,247 735,336 735,336 $ 2,318,583	Level 2 $ - - - - - $ - Level 2 $ - - - - - $ - Level 2 $ - - - - - $ -	Level 3 $ - 85,523 85,523 4,348 4,348 $ 89,871 Level 3 $ - 85,565 85,565 4,348 4,348 $ 89,913 Level 3 $ - 85,565 85,565 4,348 4,348 $ 89,913	Total
				$ 2,053,693 85,523
				2,139,216
				847,701
				847,701
				$ 2,986,917
				Total
				$ 1,696,300 85,565
				1,781,865
				807,115
				807,115
				$ 2,588,980
				Total
				$ 1,583,247 85,565
				1,668,812
				739,684
				739,684
				$ 2,408,496

~52~

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

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

II. Except for financial instruments with active markets, the fair value of other financial instruments is measured using valuation techniques or by reference to counterparty quotes. The fair value of financial instruments measured using valuation techniques can be referred to current fair value of instruments with similar terms and characteristics in substance, by discounted cash flow method or other valuation methods, including calculations by applying models using market information available at the consolidated balance sheet date.
E. For the nine-month periods ended September 30, 2020 and 2019, there was no transfer between Level 1 and Level 2.
F. For the nine-month periods ended September 30, 2020 and 2019, there was no significant transfer in or out of Level 3.
G. The Group is in charge of valuation procedures for fair value measurements being categorized within Level 3, which to verify the independent fair value of financial instruments. Such assessments are to ensure the valuation results are reasonable by applying independent information to compare the results to current market conditions, confirming the information resources are independent, reliable and in line with other resources, and represented as the exercisable price, and frequently making any other necessary adjustments to the fair value. Investment property is assessed by independent appraisers or based on recent closing prices of similar property in the neighbouring area.
H. The qualitative information on significant unobservable inputs and sensitivity analysis of changes in significant unobservable inputs to valuation model used in Level 3 fair value measurement are provided below:

below:
Non-derivative equity instrument: Unlisted shares Non-derivative equity instrument: Unlisted shares	Fair value at September 30, 2020 $ 89,871 Fair value at December 31, 2019 $ 89,913	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	Range (weighted average) 2.94 - Range (weighted average) 2.94 -	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

~53~

Non-derivative equity instrument: Unlisted shares	Fair value at September 30, 2019 $ 89,913	Valuation technique Market comparable companies Net asset value	Significant unobservable input Price to book ratio multiplier Net asset value	Range (weighted average) 2.61 -	Relationship of inputs to fair value The higher the multiplier, the higher the fair value The higher the net asset value, the higher the fair value

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 nine-month periods September 30, 2020 and 2019.

13. SUPPLEMENTARY DISCLOSURES

(1) Significant transactions information

A. Loans to others: None.
B. Provision of endorsements and guarantees to others: None.
C. Holding of marketable securities at the end of the period (not including subsidiaries, associates and joint ventures): Please refer to Table 1.
D. Acquisition or sale of the same security with the accumulated cost reaching $300 million or 20% of the Company’s paid-in capital: Please refer to Table 2.
E. Acquisition of real estate reaching $300 million or 20% of paid-in capital or more: 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.

~54~

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.

~55~

(3) Segment information

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

	For the nine-month period ended September 30, 2020	For the nine-month period ended September 30, 2020	For the nine-month period ended September 30, 2020
Convenience stores $ 124,835,584 584,389 $ 125,419,973 $ 9,065,588	Retail business group Logistics business group Other operating segments Adjustment and elimination $ 51,159,458 $ 1,582,245 $ 14,768,917 ($ -) 1,704,668 10,565,581 5,867,568 (18,722,206) $ 52,864,126 $ 12,147,826 $ 20,636,485 ($ 18,722,206) $ 1,777,517 $ 1,070,504 $ 130,484 ($ 1,502,427) For the nine-month period ended September 30, 2019			Total
				$ 192,346,204 -
				$ 192,346,204
				$ 10,541,666

Convenience stores $ 118,175,087 447,427 $ 118,622,514 $ 9,534,216	Retail business group $ 56,006,039 1,676,602 $ 57,682,641 $ 2,667,276	Logistics business group $ 1,570,900 10,067,106 $ 11,638,006 $ 971,405	Other operating segments Adjustment and elimination $ 15,369,959 ($ -) 5,316,706 ( 17,507,841) $ 20,686,665 ($ 17,507,841) $ 2,194,197 ($ 3,775,894)	Total
				$ 191,121,985 -
				$ 191,121,985
				$ 11,591,200

(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.

~56~

Table 1

Expressed in thousands of NTD (Except as otherwise indicated)

PRESIDENT CHAIN STORE CORP. AND SUBSIDIARIES

Holding of marketable securities at the end of the period (not including subsidiaries, associates and joint ventures) September 30, 2020

Securities held by	Type and name of securities	Relationship with the securities issuer	General ledger account		As of September 30,2020	As of September 30,2020		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. Chieh Shun Logistics International Corp. Uni-Wonder Corp. Uni-Wonder Corp. Uni-Wonder Corp. Uni-Wonder Corp. Uni-President Department Store Corp. Uni-President Department Store Corp. Uni-President Department Store Corp. President Information Corp. President Information Corp. President Information Corp. President Information Corp. President Logistics International Corp. President Logistics International Corp. President Pharmaceutical Corp. President Pharmaceutical Corp. Q-ware Systems & Services Corp. 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 CTBC Hwa-win Money Market Fund Taishin 1699 Money Market Fund UPAMC James Bond Money Market Fund Union Money Market Fund FSITC Taiwan Money Market Fund Allianz Global Investors Taiwan Money Market Fund Taishin 1699 Money Market Fund UPAMC James Bond Money Market Fund Prudential Financial Money Market Fund Jih Sun Money Market Fund FSITC Taiwan Money Market Fund Prudential Financial Money Market Fund Jih Sun Money Market Fund Union Money Market Fund Taishin 1699 Money Market Fund UPAMC James Bond Money Market Fund Jih Sun Money Market Fund Taishin 1699 Money Market Fund Eastspring Investments Well Pool Money Market Fund 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 38,985,684 300,000 650,000 2,678,542 2,703,019 4,226,697 1,247,923 22,557,917 18,158,943 19,805,432 7,334,766 1,485,504 2,133,113 19,330,135 454,419 1,404,312 4,968,959 3,759,653 1,320,557 861,714 499,153 9,567,833 12,919,708 10,067,540	45,298 $ 14,504 25,721 - - 606,227 237,126 4,348 40,004 $ 30,001 57,626 21,002 300,000 280,000 250,000 100,000 25,000 10,000 288,671 7,007 22,385 74,211 50,000 18,004 14,502 7,455 130,445 177,022 150,358	7.60 5.37 0.92 6.67 - 2.79 0.61 10.00 - - - - - - - - - - - - - - - - - - - - -	45,298 $ 14,504 25,721 - - 606,227 237,126 4,348 40,004 $ 30,001 57,626 21,002 300,000 280,000 250,000 100,000 25,000 10,000 288,671 7,007 22,385 74,211 50,000 18,004 14,502 7,455 130,445 177,022 150,358

Table 1  Page 1

PRESIDENT CHAIN STORE CORP. AND SUBSIDIARIES

Acquisition or sale of the same security with the accumulated cost reaching $300 million or 20% of the Company's paid-in capital For the nine-month period ended September 30, 2020

Table 2

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 September 30,2020	Balance as at September 30,2020
					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. Books.com. Co., Ltd. Chieh Shun Logistics International Corp. Chieh Shun Logistics International Corp. Uni-Wonder Corp. Uni-Wonder Corp. Uni-Wonder Corp. Uni-Wonder Corp. Uni-Wonder Corp. Uni-Wonder Corp. President Drugstore Business Corp. Uni-President Department Store Corp. Uni-President Department Store Corp. President Information Corp. President Logistics International Corp. President Pharmaceutical Corp. Q-ware Systems & Services Corp.	Beneficiary certificates: Jih Sun Money Market Fund CTBC Hwa-win 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 Taishin 1699 Money Market Fund Nomura Money Market Fund Taishin 1699 Money Market Fund UPAMC James Bond Money Market Fund Jih Sun Money Market Fund Union Money Market Fund Taishin 1699 Money Market Fund Taishin 1699 Money Market Fund Eastspring Investments Well Pool Money Market Fund	Note `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃`	Not applicable `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃`	Not applicable `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃`	1,344,764 - 6,846,847 1,698,941 18,260,010 15,898,378 19,527,436 - 12,514,539 - - - - - 736,692 1,464 19,990,627	20,005 $ - 93,009 28,505 290,000 200,000 300,000 - 170,000 - - - - - 10,007 20 273,000	137,052,028 52,306,259 62,409,697 20,705,218 36,447,972 87,221,017 66,245,590 70,002,544 47,012,131 19,509,550 164,716,565 90,420,018 43,140,409 29,350,499 33,074,593 62,886,955 109,403,867	2,043,000 $ 580,000 849,400 348,000 580,000 1,100,000 1,020,000 930,000 640,000 320,000 2,242,000 1,520,200 644,100 390,000 450,300 856,060 1,497,000	135,718,250 52,306,259 65,029,847 21,156,236 54,707,982 83,313,963 67,614,083 47,444,627 52,191,904 19,509,550 164,716,565 88,934,514 23,810,274 25,590,846 32,490,728 53,320,586 116,474,786	2,023,797 $ 580,163 885,058 355,585 870,786 1,050,688 1,040,857 630,539 710,279 320,096 2,242,384 1,495,540 355,500 340,102 442,384 725,910 1,593,511	2,023,000 $ 580,000 884,780 355,500 870,000 1,050,000 1,040,000 630,000 710,000 320,000 2,242,000 1,495,200 355,429 340,000 442,303 725,685 1,593,000	797 $ 163 278 85 786 688 857 539 279 96 384 340 71 102 81 225 511	- - - - - - - - - - - - - - - - -	1) ($ - 3) ( 3) ( - - - - - - - - - - - 50 22	2,678,542 - 4,226,697 1,247,923 - 19,805,432 18,158,943 22,557,917 7,334,766 - - 1,485,504 19,330,135 3,759,653 1,320,557 9,567,833 12,919,708	40,004 $ - 57,626 21,002 - 250,000 280,000 300,000 100,000 - - 25,000 288,671 50,000 18,004 130,445 177,022

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

Table 2  Page 1

Expressed in thousands of NTD (Except as otherwise indicated)

Table 3

PRESIDENT CHAIN STORE CORP. AND SUBSIDIARIES

Purchases or sales of goods from or to related parties reaching $100 million or 20% of paid-in capital or more For the nine-month period ended September 30, 2020

Purchaser/seller	Counterparty	Relationship with the counterparty			Transaction		Differences in t compared t transa	ransaction terms o third party ctions	Notes/accounts	receivable(payable)	Footnote
			Purchases(sales)	Amount	Percentage of total purchases (sales)	Credit term	Unitprice	Credit term	Balance	Percentage of total notes/accounts receivable(payable)
President Chain Store Corp. Capital Marketing Consultant Corp. Chieh Shun Logistics International Corp. President Transnet Corp. Uni-Wonder Corp. President Information Corp.	Uni-President Enterprises Corp. Uni-President Superior Commissary Corp. Tung Ang Enterprises Corp. 21 Century Co., Ltd. Q-ware Systems & Services Corp. Kai Ya Food Co., Ltd. Lien-Bo Enterprises Corp. Kuang Chuan Dairy Co., Ltd. Tait Marketing & Distribution Co., Ltd. President Transnet Corp. President Packaging Corp. President Pharmaceutical Corp. Wei Lih Food Industrial Co., Ltd. President Chain Store Corp. President Transnet Corp. President Logistics International Corp. Chieh Shun Logistics International Corp. President Chain Store Corp. Uni-President Enterprises Corp. Tong Zhan Corporation Ltd. Retail Support International Corp. President Chain Store Corp.	Ultimate parent company Subsidiary Sister company Subsidiary `〃` Sister company `〃` Other related party Sister company Subsidiary Sister company Subsidiary Other related party Parent company Subsidiary of President Chain Store Corp. Parent company Subsidiary of President Chain Store Corp. Parent company Ultimate parent company Other related party Subsidiary of President Chain Store Corp. Parent company	Purchases `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` Service revenue Delivery revenue `〃` Service cost Sales revenue Purchases `〃` `〃` Service revenue	12,083,901 $ 3,065,179 1,716,832 450,310 434,103 455,806 434,362 432,182 345,329 309,705 290,370 258,443 225,646 160,346) ( 518,801) ( 860,757) ( 518,801 309,705) ( 272,203 705,042 161,182 717,046) (	15 4 2 1 1 1 1 1 - - - - - 66) ( 36) ( 60) ( 7 62) ( 8 22 5 68) (	Net 30~40 days from the end of the month when invoice is issued Net 45 days from the end of the month when invoice is issued Net 30 days from the end of the month when invoice is issued Net 30~60 days from the end of the month when invoice is issued Net 40 days from the end of the month when invoice is issued Net 40 days from the end of the month when invoice is issued Net 10~54 days from the end of the month when invoice is issued Net 30~65 days from the end of the month when invoice is issued Net 20~70 days from the end of the month when invoice is issued Net 60 days from the end of the month when invoice is issued Net 15~60 days from the end of the month when invoice is issued Net 60~70 days from the end of the month when invoice is issued Net 30~60 days from the end of the month when invoice is issued Net 45~60 days from the end of the month when invoice is issued Net 40 days from the end of the month when invoice is issued Net 20 days from the end of the month when invoice is issued Net 40 days from the end of the month when invoice is issued Net 60 days from the end of the month when invoice is issued Net 30 days from the end of the month when invoice is issued Net 25 days from the end of the month when invoice is issued Net 30 days from the end of the month when invoice is issued Net 45 days from the end of the month when invoice is issued	No significant differences `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` 〃 `〃` 〃〃 `〃` `〃` `〃` `〃`	No significant differences `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` 〃〃〃〃 `〃` `〃` `〃` `〃`	1,395,334) ($ 761,900) ( 250,260) ( 86,588) ( 97,747) ( 105,818) ( 108,560) ( 109,192) ( 68,796) ( 43,003) ( 68,269) ( 86,005) ( 49,974) ( 42,420 85,709 104,153 85,709) ( 43,003 29,053) ( 86,510) ( 24,184) ( 156,217	8) ( 4) ( 1) ( - 1) ( 1) ( 1) ( 1) ( - - - - - 59 44 53 4) ( 3 5) ( 14) ( 4) ( 61

Table 3  Page 1

Expressed in thousands of NTD (Except as otherwise indicated)

Table 3

PRESIDENT CHAIN STORE CORP. AND SUBSIDIARIES

Purchases or sales of goods from or to related parties reaching $100 million or 20% of paid-in capital or more For the nine-month period ended September 30, 2020

Purchaser/seller	Counterparty	Relationship with the counterparty			Transaction		Differences in t compared t transa	ransaction terms o third party ctions	Notes/accounts	receivable(payable)	Footnote
			Purchases(sales)	Amount	Percentage of total purchases (sales)	Credit term	Unitprice	Credit term	Balance	Percentage of total notes/accounts receivable(payable)
President Logistics International Corp. Retail Support International Corp. Uni-President Cold-Chain Corp. Wisdom Distribution Service Corp. Q-ware Systems & Services Corp. President Drugstore Business Corp. President Pharmaceutical Corp. Uni-President Superior Commissary Corp. 21 Century Co., Ltd. Retail Support Taiwan Corp. Duskin Serve Taiwan Co., Ltd. ICASH Corp.	Chieh Shun Logistics International Corp. Retail Support International Corp. Uni-President Cold-Chain Corp. Wisdom Distribution Service Corp. Retail Support Taiwan Corp. President Logistics International Corp. Uni-Wonder Corp. President Logistics International Corp. President Logistics International Corp. Books.com. Co., Ltd. President Chain Store Corp. President Pharmaceutical Corp. President Drugstore Business Corp. President Chain Store Corp. President Chain Store Corp. President Chain Store Corp. Retail Support International Corp. President Chain Store Corp. President Chain Store Corp.	Subsidiary Parent company Subsidiary of President Chain Store Corp. `〃` Subsidiary `〃` Subsidiary of President Chain Store Corp. `〃` `〃` `〃` Parent company Subsidiary of President Chain Store Corp. `〃` Parent company `〃` `〃` `〃` `〃` `〃`	Service cost Delivery revenue `〃` `〃` Service cost `〃` Delivery revenue Service cost `〃` Service revenue `〃` Purchases Sales revenue `〃` `〃` `〃` Delivery revenue Service revenue `〃`	860,757 $ 619,627) ( 869,862) ( 835,209) ( 236,561 619,627 161,182) ( 869,862 835,209 229,487) ( 434,103) ( 423,608 423,608) ( 258,443) ( 3,065,179) ( 450,310) ( 236,561) ( 138,576) ( 140,071) (	36 25) ( 35) ( 33) ( 19 49 7) ( 38 44 10) ( 63) ( 5 35) ( 21) ( 98) ( 48) ( 79) ( 15) ( 39) (	Net 20 days from the end of the month when invoice is issued Net 20 days from the end of the month when invoice is issued Net 20 days from the end of the month when invoice is issued Net 20 days from the end of the month when invoice is issued Net 15~20 days from the end of the month when invoice is issued Net 20 days from the end of the month when invoice is issued Net 30 days from the end of the month when invoice is issued Net 20 days from the end of the month when invoice is issued Net 20 days from the end of the month when invoice is issued Net 30 days from the end of the month when invoice is issued Net 40 days from the end of the month when invoice is issued Net 70 days from the end of the month when invoice is issued Net 70 days from the end of the month when invoice is issued Net 60~70 days from the end of the month when invoice is issued Net 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 15~20 days from the end of the month when invoice is issued Net 15~60 days from the end of the month when invoice is issued Net 60 days from the end of the month when invoice is issued	No significant differences `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃`	No significant differences `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃`	104,153) ($ 75,779 109,988 105,859 29,999) ( 75,779) ( 24,184 109,988) ( 105,859) ( 27,200 97,747 34,533) ( 34,533 86,005 761,900 86,588 29,999 24,482 72,226	38) ( 24 35 33 19) ( 47) ( 7 2) ( 33) ( 4 72 2) ( 8 20 98 55 75 - 48

Table 3  Page 2

PRESIDENT CHAIN STORE CORP. AND SUBSIDIARIES

Receivables from related parties reaching $100 million or 20% of paid-in capital or more September 30, 2020

		September 30, 2020
Table 4 Creditor	Counterparty	Relationship with the counterparty	Balance as of September 30,2020	Turnover rate	Overdue r	eceivables	Expressed in thousands of NTD (Except as otherwise indicated) Amount collected subsequent to the balance sheet date Allowance for doubtful accounts
					Amount	Action taken
Uni-President Superior Commissary Corp. President Information Corp. President Logistics International Corp. President Logistics International Corp. Chieh Shun Logistics International Corp.	President Chain Store Corp. President Chain Store Corp. Uni-President Cold-Chain Corp. Wisdom Distribution Service Corp. President Logistics International Corp.	Parent company `〃` Subsidiary of President Chain Store Corp. `〃` `〃`	761,900 $ 156,217 109,988 105,859 104,153	5.71 6.80 11.20 10.18 11.44	- $ - - - -	None `〃` `〃` `〃` `〃`	401,182 $ 3,842 - - -	- $ - - - -

Table 4  Page 1

PRESIDENT CHAIN STORE CORP. AND SUBSIDIARIES

Significant inter-company transactions during the reporting periods For the nine-month period ended September 30, 2020

Table 5 Number	Companyname	Counterparty	Relationship			Expressed in thousands of NTD (Except as otherwise indicated) Transaction	Expressed in thousands of NTD (Except as otherwise indicated) Transaction
				General ledger account	Amount	Transaction terms	Percentage of consolidated total operating revenues or total assets
`1` `2` `3` `3` `4` `5` `5` `6` `6` `7` `8` `8` `8` `9` `9` `9` `9` `9` `10` `11` `12` `13` `14` `15`	Uni-President Cold-Chain Corp. Capital Marketing Consultant Corp. President Information Corp. President Information Corp. Q-ware Systems & Services Corp. Uni-President Superior Commissary Corp. Uni-President Superior Commissary Corp. President Pharmaceutical Corp. President Pharmaceutical Corp. President Transnet Corp. Chieh Shun Logistics International Corp. Chieh Shun Logistics International Corp. Chieh Shun Logistics International Corp. President Logistics International Corp. President Logistics International Corp. President Logistics International Corp. President Logistics International Corp. President Logistics International Corp. Duskin Serve Taiwan Co., Ltd. 21 Century Co., Ltd. Wisdom Distribution Service Corp. Retail Support Taiwan Corp. ICASH Corp. Retail Support International Corp.	President Chain Store Corp. President Chain Store Corp. President Chain Store Corp. President Chain Store Corp. President Chain Store Corp. President Chain Store Corp. President Chain Store Corp. President Drugstore Business Corp. President Chain Store Corp. President Chain Store Corp. President Logistics International Corp. President Logistics International Corp. President Transnet Corp. Retail Support International Corp. Uni-President Cold-Chain Corp. Wisdom Distribution Service Corp. Wisdom Distribution Service Corp. Uni-President Cold-Chain Corp. President Chain Store Corp. President Chain Store Corp. Books.com. Co., Ltd. Retail Support International Corp. President Chain Store Corp. Uni-Wonder 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 parent company Subsidiary to parent company Subsidiary to subsidiary Subsidiary to subsidiary Subsidiary to subsidiary Subsidiary to subsidiary Subsidiary to subsidiary Subsidiary to subsidiary Subsidiary to subsidiary Subsidiary to subsidiary Subsidiary to parent company Subsidiary to parent company Subsidiary to subsidiary Subsidiary to subsidiary Subsidiary to parent company Subsidiary to subsidiary	Other operating revenue Service revenue Service revenue Accounts receivable Service revenue Sales revenue Accounts receivable Sales revenue Sales revenue Sales revenue Delivery revenue Accounts receivable Delivery revenue Delivery revenue Delivery revenue Delivery revenue Accounts receivable Accounts receivable Service revenue Sales revenue Service revenue Delivery revenue Service revenue Delivery revenue	334,629) ($ 160,346) ( 717,046) ( 156,217 434,103) ( 3,065,179) ( 761,900 423,608) ( 258,443) ( 309,705) ( 860,757) ( 104,153 518,801) ( 619,627) ( 869,862) ( 835,209) ( 105,859 109,988 138,576) ( 450,310) ( 229,487) ( 236,561) ( 140,071) ( 161,182) (	Net 20 days from the end of the month when invoice is issued Net 45~60 days from the end of the month when invoice is issued Net 45 days from the end of the month when invoice is issued Net 45 days from the end of the month when invoice is issued Net 40 days from the end of the month when invoice is issued Net 45 days from the end of the month when invoice is issued Net 45 days from the end of the month when invoice is issued Net 70 days from the end of the month when invoice is issued Net 60~70 days from the end of the month when invoice is issued Net 60 days from the end of the month when invoice is issued Net 20 days from the end of the month when invoice is issued Net 20 days from the end of the month when invoice is issued Net 40 days from the end of the month when invoice is issued Net 20 days from the end of the month when invoice is issued Net 20 days from the end of the month when invoice is issued Net 20 days from the end of the month when invoice is issued Net 20 days from the end of the month when invoice is issued Net 20 days from the end of the month when invoice is issued Net 15~60 days from the end of the month when invoice is issued Net 30~60 days from the end of the month when invoice is issued Net 30 days from the end of the month when invoice is issued Net 15~20 days from the end of the month when invoice is issued Net 60 days from the end of the month when invoice is issued Net 30 days from the end of the month when invoice is issued	0.17 0.08 0.37 0.08 0.23 1.59 0.38 0.22 0.13 0.16 0.45 0.05 0.27 0.32 0.45 0.43 0.05 0.05 0.07 0.23 0.12 0.12 0.07 0.08

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

Table 5  Page 1

Table 6

Expressed in thousands of NTD (Except as otherwise indicated)

PRESIDENT CHAIN STORE CORP. AND SUBSIDIARIES

Names, locations and other information of investee companies (not including investees in Mainland China) For the nine-month period ended September 30, 2020

Investor	Investee	Location	Main business activities	Initial invest	ment amount	Shares held	as at September 30,2020	as at September 30,2020	Net profit (loss) of the investee for the nine- month period ended September 30,2020	Investment income (loss) recognized by the Company for the nine- month period ended September 30,2020	Footnote
				Balance as at September 30, 2020	Balance as at December 31, 2019	Number of shares	Ownership (%)	Book value
President Chain Store Corp. President Chain Store Corp. President Chain Store Corp. President Chain Store Corp. President Chain Store Corp. President Chain Store Corp. President Chain Store Corp. President Chain Store Corp. President Chain Store Corp. President Chain Store Corp. President Chain Store Corp. President Chain Store Corp. President Chain Store Corp. President Chain Store Corp. President Chain Store Corp. President Chain Store Corp. President Chain Store Corp. President Chain Store Corp. President Chain Store Corp. President Chain Store Corp. President Chain Store Corp. President Chain Store Corp. President Chain Store Corp. President Chain Store Corp. President Chain Store Corp.	President Chain Store (BVI) Holdings Ltd. President Drugstore Business Corp. President Transnet Corp. Mech-President Corp. President Pharmaceutical Corp. Uni-President Department Store Corp. Uni-President Superior Commissary Corp. Uni-President Cold-Chain Corp. President Information Corp. Q-ware Systems & Services Corp. Wisdom Distribution Service Corp. Books.com. Co., Ltd. President Lanyang Art Corporation Duskin Serve Taiwan Co., Ltd. ICASH Corp. Uni-President Development Corp. Uni-Wonder Corp. Retail Support International Corp. Presicarre Corp. President Fair Development Corp. President International Development Corp. Tung Ho Development Corp. Ren-Hui Investment Corp. Capital Marketing Consultant Corp. PCSC (China) Drugstore Limited	British Virgin Islands Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan British Virgin Islands	Professional investment Sales of cosmetics, medicines and daily items Delivery service Gas station, installment and maintenance of elevators Sales of various health care products, cosmetics, and pharmaceuticals Department stores Fresh food manufacture Low-temperature logistics and warehousing Enterprise information management and consultancy Information software services Logistics and storage of publication and e-commerce Retail business without shop Art and cultural exhibition Cleaning instruments leasing and selling Electronic ticketing and electronic payment Construction, development and operation of an MRT station Coffee chain store Room-temperature logistics and warehousing Management of retail department store Operation of shopping mall, department store, international trade, etc. Professional investment Management of entertainment business Professional investment Enterprise management consultancy Professional investment	6,712,138 $ 288,559 711,576 904,475 330,216 840,000 520,141 237,437 320,741 332,482 50,000 100,400 20,000 102,000 700,000 720,000 3,286,206 91,414 7,112,028 3,191,700 500,000 861,696 637,231 9,506 277,805	6,712,138 $ 288,559 711,576 904,475 330,216 840,000 520,141 237,437 320,741 332,482 50,000 100,400 20,000 102,000 700,000 720,000 3,286,206 91,414 7,112,028 3,191,700 500,000 861,696 637,231 9,506 277,805	171,589,586 78,520,000 103,496,399 55,858,815 22,121,962 27,999,999 48,519,890 42,934,976 25,714,475 24,382,921 10,847,421 9,999,999 2,000,000 10,199,999 70,000,000 72,000,000 21,382,674 6,429,999 145,172,360 190,000,000 44,100,000 19,930,000 6,500,000 2,500,000 8,746,008	100.00 100.00 70.00 80.87 73.74 70.00 90.00 60.00 86.00 86.76 100.00 50.03 100.00 51.00 100.00 20.00 60.00 25.00 19.50 19.00 3.33 12.46 100.00 100.00 92.20	25,541,527 $ 1,370,825 1,775,133 718,401 688,761 485,655 555,320 881,533 490,889 372,405 434,992 365,624 25,033 188,980 582,807 749,034 5,002,206 161,451 5,390,163 2,070,274 449,069 34,751 67,966 70,111 65,273	167,124) ($ 224,267 726,300 108,301 100,614 157,730 79,180 336,647 70,485 62,772 226,707 315,128 21 120,550 15,565 64,608 472,211 164,593 1,734,862 162,464 519,876 569,419) ( 5,862) ( 35,246 958	167,124) ($ 224,267 508,410 87,584 74,193 110,411 71,262 201,895 60,618 54,461 226,707 157,640 21 61,480 15,565 12,922 213,429 41,174 330,738 30,868 17,904 71,634) ( 5,862) ( 35,246 883	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

Table 6  Page 1

Table 6

Expressed in thousands of NTD (Except as otherwise indicated)

PRESIDENT CHAIN STORE CORP. AND SUBSIDIARIES

Names, locations and other information of investee companies (not including investees in Mainland China) For the nine-month period ended September 30, 2020

Investor	Investee	Location	Main business activities	Initial invest	ment amount	Shares held	as at September 30,2020	as at September 30,2020	Net profit (loss) of the investee for the nine- month period ended September 30,2020	Investment income (loss) recognized by the Company for the nine- month period ended September 30,2020	Footnote
				Balance as at September 30, 2020	Balance as at December 31, 2019	Number of shares	Ownership (%)	Book value
President Chain Store Corp. President Chain Store Corp. President Chain Store Corp. President Chain Store Corp. President Chain Store Corp. President Chain Store Corp. President Chain Store Corp. President Chain Store Corp. President Chain Store Corp. President Chain Store Corp. Books.com. Co., Ltd. Mech-President Corp. President Chain Store (Hong Kong) Holdings Limited President Chain Store (BVI) Holdings Ltd. President Chain Store (BVI) Holdings Ltd. President Chain Store (Labuan) Holdings Ltd. President Logistics International Corp. President Pharmaceutical Corp. Ren-Hui Investment Corp. Ren-Hui Investment Corp. Ren-Hui Investment Corp. Ren-Hui Investment Corp. Ren-Hui Investment Corp. Ren-Hui Investment Corp.	President Chain Store Corporation Insurance Brokers Co., Ltd. Cold Stone Creamery Taiwan Ltd. President Being Corp. 21 Century Co., Ltd. President Chain Store Tokyo Marketing Corp. Uni-President Oven Bakery Corp. President Collect Service Corp. Mister Donut Taiwan 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) Holding Limited Philippine Seven Corp. Chieh Shun Logistics International Corp. President Pharmaceutical (Hong Kong) Holdings Limited Books.com. Co., Ltd. Uni-President Department Store Corp. Mech-President Corp. President Information Corp. President Transnet Corp. Q-ware Systems & Services Corp.	Taiwan Taiwan Taiwan Taiwan Japan Taiwan Taiwan Taiwan Taiwan Taiwan British Virgin Islands Taiwan British Virgin Islands Malaysia Hong Kong Philippines Taiwan Hong Kong Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan	Life and property insurance Sales of ice cream Sports and entertainment business Operation of chain restaurants 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	213,000 $ 170,000 170,000 160,680 35,648 391,300 10,500 200,000 47,190 7,500 - 9,600 21,534 848,653 4,532,526 847,838 180,000 178,024 - - - - - -	213,000 $ 170,000 170,000 160,680 35,648 391,300 10,500 200,000 47,190 7,500 1,478 9,600 21,534 848,653 4,532,526 847,838 180,000 178,024 - - - - - -	1,500,000 12,244,390 1,500,000 10,000,000 9,800 6,511,963 1,049,999 7,500,049 1,833,333 750,000 - 960,000 740,000 29,163,337 134,603,354 394,970,516 26,670,000 5,935,900 1 1 1 1 1 1	100.00 100.00 100.00 100.00 100.00 100.00 70.00 50.00 36.67 15.00 - 60.00 7.80 100.00 100.00 52.22 100.00 100.00 - - - - - -	33,403 $ 20,511 27,745) ( 119,814 88,096 86,005) ( 76,719 89,989 40,938 20,274 - 20,993 5,522 2,367,605 3,866,475 2,307,160 329,746 45,667 - - - - - -	15,506 $ 14,378 5,612 33,422 6,477 41,179) ( 79,584 5,382 22,384 24,837 31) ( 5,097 958 192,704) ( 201,751) ( 348,998) ( 33,468 14,290) ( 315,128 157,730 108,301 70,485 726,300 62,772	15,506 $ 14,378 5,717 33,422 6,475 41,179) ( 55,708 2,691 8,201 3,758 31) ( 3,058 75 192,704) ( 201,751) ( 182,445) ( 33,468 14,290) ( - - - - - -	Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Note 1 Note 1 Note 1 Subsidiary of a subsidiary Subsidiary of a subsidiary Subsidiary of a subsidiary Subsidiary of a subsidiary Subsidiary of a subsidiary Subsidiary of a subsidiary Subsidiary of a subsidiary Subsidiary of a subsidiary Subsidiary of a subsidiary Subsidiary of a subsidiary Subsidiary of a subsidiary Subsidiary of a subsidiary Subsidiary of a subsidiary Subsidiary of a subsidiary

Table 6  Page 2

Table 6

Expressed in thousands of NTD (Except as otherwise indicated)

PRESIDENT CHAIN STORE CORP. AND SUBSIDIARIES

Names, locations and other information of investee companies (not including investees in Mainland China) For the nine-month period ended September 30, 2020

Investor	Investee	Location	Main business activities	Initial invest	ment amount	Shares held	as at September 30,2020	as at September 30,2020	Net profit (loss) of the investee for the nine- month period ended September 30,2020	Investment income (loss) recognized by the Company for the nine- month period ended September 30,2020	Footnote
				Balance as at September 30, 2020	Balance as at December 31, 2019	Number of shares	Ownership (%)	Book value
Ren-Hui Investment Corp. Ren-Hui Investment Corp. Ren-Hui Investment Corp. Ren-Hui Investment Corp. Ren-Hui Investment Corp. Ren-Hui Investment Corp. Ren-Hui Investment Corp. Ren-Hui Investment Corp. Retail Support International Corp. Retail Support International Corp. Retail Support Taiwan Corp. Uni-President Cold-Chain Corp. Uni-President Cold-Chain Corp. Wisdom Distribution Service Corp. Philippine Seven Corp. Philippine Seven Corp.	Duskin Serve Taiwan Co., Ltd. President Pharmaceutical Corp. Mister Donut Taiwan Corp., Ltd. Uni-President Superior Commissary Corp. Uni-President Cold-Chain Corp. Retail Support International Corp. President Collect Service Corp. Ren Hui Holding Co., Ltd. Retail Support Taiwan Corp. President Logistics International Corp. President Logistics International Corp. President Logistics International Corp. Uni-President Logistics (BVI) Holdings Limited President Logistics International Corp. Convenience Distribution Inc. Store Sites Holding, Inc.	Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan British Virgin Islands Taiwan Taiwan Taiwan Taiwan British Virgin Islands Taiwan Philippines Philippines	Cleaning instruments leasing and selling Sales of various health care products, cosmetics, and pharmaceuticals Bakery retailer Fresh food manufacture Low-temperature logistics and warehousing Room-temperature logistics and warehousing Collection agent Professional investment Room-temperature logistics and warehousing Trucking Trucking Trucking Professional investment Trucking Logistic, warehousing and retail Professional investment	- $ - - - - - - 60,374 15,300 44,975 5,425 23,850 87,994 18,850 27,006 29,252	- $ - - - - - - 60,374 15,300 44,975 5,425 23,850 87,994 18,850 27,006 29,252	1 1 1 1 1 1 1 2,000,000 2,871,300 9,481,500 1,161,000 4,837,500 2,990 3,870,000 4,500,000 40,000	- - - - - - - 100.00 51.00 49.00 6.00 25.00 100.00 20.00 100.00 100.00	- $ - - - - - - 52,785 72,482 162,607 19,911 82,963 106,379 66,322 27,006 29,252	120,550 $ 100,614 5,382 79,180 336,647 164,593 79,584 9,516) ( 37,722 63,376 63,376 63,376 9,012 63,376 34,778) ( 885	- $ - - - - - - 9,516) ( 19,238 31,054 3,803 15,844 9,012 12,627 - -	Subsidiary of a subsidiary Subsidiary of a subsidiary 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

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

Table 6  Page 3

Table 7

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

For the nine-month period ended September 30, 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 nine-month period ended September30,2020	Amount remitted from Taiwan to Mainland China/ Amount remitted back to Taiwan for the nine-month period ended September30,2020	Accumulated amount of remittance from Taiwan to Mainland China as of September 30, 2020	Net profit(loss) of investee for the nine-month period ended September 30,2020	Ownership held by the Company (direct or indirect)	Investment income (loss) recognized by the Company for the nine- month period ended September30,2020	Book value of investments in Mainland China as of September30,2020	Accumulated amount of investment income remitted back to Taiwan as of September 30,2020	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	428,508 $ 2,656,750 58,200 953,617 257,105 167,792 171,403 - 257,105 214,254 599,911 128,552	Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1	274,043 $ 2,142,540 58,200 952,706 118,680 167,792 166,490 - 257,105 214,254 599,911 128,552	- $ 514,210 - - - - - - - - - -	- $ - - - - - - - - - - -	274,043 $ 2,656,750 58,200 952,706 118,680 167,792 166,490 - 257,105 214,254 599,911 128,552	1,053 $ 137,853) ( 8,683 18,299 62,351) ( 11,833) ( 18,127 25) ( 14,777 7,880 86,916) ( 31,049) (	100.00 100.00 100.00 100.00 55.00 73.74 80.00 - 100.00 100.00 100.00 100.00	1,037 $ 137,852) ( 8,683 18,299 34,946) ( 8,725) ( 14,230 13) ( 14,777 6,272 86,916) ( 31,050) (	70,232 $ 475,992 483,913 63,812 150,993 13,002 169,789 - 364,160 200,889 201,838 44,412	- $ - - - 7,566 54,445 24,803 - - - - -	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 September30,2020	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.	4,996,773 $ 167,792 86,352 50,148	50,148 8,871,831 $ 167,792 86,352	80,000 25,767,187 $ 431,214 869,302

Table 7  Page 1

PRESIDENT CHAIN STORE CORP. AND SUBSIDIARIES

Table 8

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

September 30, 2020

Shareholder name	Shares held as at September 30,2020	Shares held as at September 30,2020
	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_2b45a8a8-3597-4e92-b6d1-6255f1b19748.pdf

PRESIDENT CHAIN STORE CORP. AND SUBSIDIARIES

CONSOLIDATED FINANCIAL STATEMENTS AND REVIEW REPORT OF INDEPENDENT ACCOUNTANTS SEPTEMBER 30, 2020 AND 2019

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

SEPTEMBER 30, 2020 AND 2019

CONTENTS

REVIEW REPORT OF INDEPENDENT ACCOUNTANTS

TRANSLATED FROM CHINESE

Introduction

Scope of Review

Basis for Qualified Conclusion

Qualified Conclusion

PRESIDENT CHAIN STORE CORP. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

PRESIDENT CHAIN STORE CORP. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

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

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

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

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

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

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

SEPTEMBER 30, 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

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

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

4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(1) Compliance statement

(2) Basis of preparation

(3) Basis of consolidation

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

(4) Employee benefits

Defined benefit plans

(5) Income tax

6. DETAILS OF SIGNIFICANT ACCOUNTS

(3) Accounts receivable

(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

(11) Intangible assets

(12) Other non-current assets

(14) Short-term borrowings

(16) Other current liabilities

(18) Pensions

(20) Share capital

(21) Capital surplus

(22) Retained earnings

(23) Other equity items

(25) Expenses by nature

(29) Other gains and losses

(30) Finance costs

(31) Income tax

(33) Supplemental cash flow information

(34) 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) Acquisition of right-of-use assets

(c) Lease expenses

(d) Lease liabilities

(4) Key management compensation

8. PLEDGED ASSETS

9. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNIZED CONTRACT COMMITMENTS

None.

10. SIGNIFICANT DISASTER LOSS

11. SIGNIFICANT EVENTS AFTER THE BALANCE SHEET DATE

12. OTHERS

(1)Capital management

PCSC Interim / Quarterly Report 2020

`－` (8) Leasing arrangements lessee

`－` E. Leasing arrangements lessee