PCSC - Annual Report 2020 | FinancialReports.eu

Stock Code:2912

PRESIDENT CHAIN STORE CORPORATION

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Published on March 15,2021 Taiwan Stock Exchange Market Observation Post System http://mops.twse.com.tw Company Website http://www.7-11.com.tw

CONTENT

14 01 Letter to shareholders

02 Corporate Overview

18 03 Corporate Governance

1. Organization Chart

Information on Directors and Management of the Company and Various Departments and Branches
Implementation of Corporate governance
Information on Independent Auditors
Net Change in Shareholdings and in Shares Pledged by Directors, Management and Shareholders Holding more than a 10% Share in the Company
Relationships between the Company's Top 10 Largest Shareholders and Their Shareholding Percentages
PCSC, Company directors, management, and directly/indirectly owned subsidiaries' ownership of shares in affiliated enterprises

54 04 Fund Raising

Capital and Shares
Status of Corporate Bonds, Preferred Stock, GDR, Employee Stock Option Plan, Employee Restricted Stock Plans, Mergers, Acquisitions, and Spin-Offs
Status of Capital Utilization Plan

58 05 Operating Highlights

Business Activities
Market Analysis and Merchandising
Human Resources
Environmental Protection Expenditures
Labor-Management Relations
Important Contracts

06 Financial Information

Five Year Condensed Balance Sheet and Comprehensive Income Statement
Five Year Financial Analysis
The Audit Committee Report Regarding the most Recent Annual Financial Report
The Audited Consolidated Financial Report for the most Recent Fiscal Year
The Audited Parent Company only Financial Report for the most Recent Fiscal Year
Any Cash Flow Difficulties with the Company and its Affiliates During the most Recent Year and as of the Date of Publication of the Annual Report

07 Financial Status, Financial Performance and

Risk Management

Financial Position Analysis
Financial Performance Analysis
Cash Flow Analysis
Major Capital Expenditures in Recent Years and Impact on Financial and Business
Analysis of Investments in Affiliates in Recent Years
Risk Management Policies and Organizational Structure and Risk Assessment
Other Important Items

08 Specific Notes

Information About Affiliated Companies
Private Placement of Securities
PCSC Securities Acquired, Disposed of, or Held by Subsidiaries
Other Supplementary Information
Situations Described in Article 36, Paragraph 3, ltem 2 of the Securities and Exchange Act

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RFID Intelligent Label

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Self- Checkout Counter

Utilize intelligent technology Grasp the future

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Intelligent Vending Machine

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5G Augmented Reality

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Intelligent Coffee Machine

“X-STORE 4” Future Convenience Store

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Co-branded Store: 7-ELEVEN X Snoopy

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Frozen Food Focus

Co-branded Store: 7-ELEVEN X OPEN!

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Co-branded Store: 7-ELEVEN X Sumikko Gurashi

Develop diversified lifestyle stores Create enjoyable and unique experiences

Co-branded Store: 7-ELEVEN X Hello Kitty

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Simple-Fit Concept Store

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Mobile Pickup Function + Membership Ecosystem

Provide complete and convenient services Satisfy comprehensive demands

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Delivery Service

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i-Preorder

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IBON Service- Mask Preorder and Pickup

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Cold Chain E-commerce Pickup Service

Myship Service (Own Platform)

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Cooperation with well-known restaurant and chef –Co-branded products

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Freshly-made Panini

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Cooperation with well-known restaurant and chef –Fu Hang Soy Milk

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CITY CAFE & Mister Donut

Offer safe and high quality food Build a social kitchen

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Vegetarian Own Brand

Frozen Food

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OPEN POINT Membership IntegrationUni-President Department Store

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OPEN POINT Membership Integration- COSMED

Integrate member program Establish digital service platform

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OPEN POINT Membership IntegrationKaohsiung Dream Mall

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OPEN POINT Membership Integration- Food and Beverage Business

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OPEN POINT Membership Integration- BEING spa

OPEN POINT Membership IntegrationBEING fit

Overall Performance (alone)

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Item / Year (NT$1,000) 2020 2019 YoY
Revenue 168,147,856 158,031,567 6.40%
Gross Profit 56,557,043 54,177,435 4.39%
Operating Profit 7,518,677 7,046,067 6.71%
Pre-tax Profit 11,714,515 12,220,466 -4.14%
Net Profit 10,238,162 10,542,860 -2.89%
—
EPS(NT$) 9.85 10.14
—
Weighted Average Outstanding Shares 1,039,622,255 1,039,622,255
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Financial Ratios	2020	2019
Gross Margin	33.64%	34.28%
Operating Expense Ratio	29.16%	29.82%
Operating Margin	4.47%	4.46%
Net Margin	6.09%	6.67%
ROA	7.73%	9.79%
ROE	28.34%	29.50%
Inventory Turnover	13.18 times	12.94 times
Fixed Asset Turnover	14.81 times	16.13 times

Total No. of Stores & Revenue

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NT$ billion 210 7000 Store Number
180 6000
150 5000
120 4000
90 3000
60 2000
30 1000 No. of Stores
0 0 Revenue
2016 2017 2018 2019 2020
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12 2020 ANNUAL REPORT

Gross Profit & Operating Profit

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NT$ billion 60 8 NT$ billion
7
50
6
40
5
30 4
3
20
2
10
1 Gross Profit
0 0 Operating Profit
2016 2017 2018 2019 2020
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Net Income & EPS

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NT$ 50 40 NT$ billion
40
30
30
20
20
10
10
EPS
0 0 Net income
2016 2017 2018 2019 2020
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Cash Dividend Yield Rate
(%) 12
9
6
3
0
2015 2016 2017 2018 2019
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*Performance of FY 2017 includes Starbucks Transactions.

2020 ANNUAL REPORT 13

1 Letter to Shareholders

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Chairman: President: Lo, Chih-Hsien Huang, Jui-Tien

Dear Shareholders,

In 2020, the COVID 19 epidemic impacted the global economy, causing many businesses to face severe challenges. Confronted with the unstable external environment, President Chain Store Corporation (PCSC) demonstrated its stable business foundation and resilience, continued offering customers innovative and convenient products and services through actively developing the digital platform in response to the new trend. PCSC worked with its subsidiaries to realize a consolidated revenue of NT$258.49 billion and net profits of NT$11.34 billion in 2020. PCSC also actively promoted the sustainable development of ESG, standing out among 63 international Food & Staples Retailers on the Dow Jones Sustainability Index (DJSI) and won the Industry Leader award as well as continued to be selected as DJSI World and DJSI Emerging Markets. PCSC’s sustainable governance capabilities have been recognized internationally.

Operating Performance

In 2020, PCSC strengthened its digital platform and services. Leveraging its intensive store network, sound logistics system and equipment, it launched mobile pickup function and i-Preorder in OPEN POINT APP, to develop “online buying, cross-store pickup” digital services, removing limitations on product displays and consumption times. Our diversified and flexible online marketing strategies serve to draw customers and foster their buying habits, revealing the advantages of online and offline integrated services. In addition, the OPEN POINT Group Membership ecosystem was integrated with other businesses of the group, enhancing active member stickiness. By the end of 2020, the number of Open Point member had reached 12 million.

Taiwan 7-ELEVEN reached 6,000 store milestone. With continuously promoting larger store format, introducing diversified lifestyle stores, and launching co-branded stores with well-known images, including OPEN chan, Sanrio, Snoopy, Sumikko Gurashi and etc., PCSC offered a diversified shopping experience and satisfied the needs of various business areas. In addition, PCSC set up an intelligent retail landscape, continued to promote intelligent vending machines, opened fourth X-STORE, using innovative technologies, such as 5G augmented reality and RFID, to create a brand new experience. In terms of fresh food development, PCSC has continued to collaborate with famous restaurants, celebrity chefs, and five-star hotels to develop delicious co-branded fresh food products and launched vegetarian products in response to the trend and various demand of customers. In the operation of CITY CAFE, PCSC introduced more products of freshly made tea and CITY PRIMA and provides mobile ordering and pickup services for members through OPEN POINT APP, creating a more convenient shopping experience. PCSC also provided selective international products from Japan, South Korea, Southeast Asia, and etc. to meet the needs of customers who are unable to go abroad. In accordance with the government Stimulus vouchers, PCSC launched “stimulus cards” and “mobile pickup app discounts” for customers to create a happy spending and whenever picking experience. During the pandemic, PCSC was the most convenient channel for pre-ordering and picking up masks and other epidemic prevention products across Taiwan. In response to the market trends, PCSC launched cold chain E-commerce pickup service for frozen food and collaborated with local stores to integrate offline businesses with online platform of MyShip. In 2020, we handled pickup and delivery of more than 250 million packages.

14 2020 ANNUAL REPORT

Letter to Shareholders

PCSC has expanded into various retail businesses both locally and overseas. At the end of 2020, the total number of stores operated by PCSC and all the subsidiaries has exceeded 10,000 store. President Transnet Corp. (Takkyūbin) continues to optimize business structure and improve logistics efficiency to meet the development of e-commerce. UniWonder Corp. (Starbucks) has been strengthening membership program and brand experience and continued to infuse vitality into the coffee market through diversified store types and innovative services. Books.com Co., Ltd. (books.com) took active steps to grasp the opportunities of mobile reading and expanded e-book business, providing a diversified and high-quality shopping experience. President Drugstore Business Corp. (COSMED) combines online and offline resources to meet customers’ demands with premium products and services. During the epidemic and lockdowns, Philippines 7-ELEVEN has rapidly adapted to market changes, adjusted and optimized product structure, and strengthened digital services. PCSC and all the subsidiaries strive to improve and provide innovative and outstanding products and services to meet local needs.

Social Responsibility

For many years, PCSC has worked tirelessly to achieve sustainable operations, implement policy of ethical management, and fulfill corporate social responsibility. In 2020, PCSC was ranked first place in Food & Staples Retailing industry of DJSI for the first time, keeping pace with international benchmark companies. It continued to be selected as DJSI World and DJSI Emerging Markets, and MSCI ESG AA affirmation. In the area of corporate governance, for the sixth year running, PCSC ranked among the top 5% of all TWSE-/TPEx-listed companies in the annual Corporate Governance Evaluation. PCSC was also selected as a constituent stock of the MSCI Global Sustainability. In the area of social participation, PCSC’s Good Neighbor O2O Funfest connects online and offline, making it the warmest, friendliest parent-child activity platform in the community. PCSC continues to expand its senior-friendly community care network through activities such as Good Neighbor meal delivery, inviting demented elderly to stores to interact with others, and health screening. In the area of environmental protection, PCSC is committed to the actions such as launching “i-Love food” campaign to reduce food waste, setting up special areas for vegetarian products, and promoting plastic reduction of packaging of private-labelled products. PCSC received an award for excellence at the 2020 New Taipei City Enterprise Voluntary Energy Conservation Activity and Taiwan Corporate Sustainability Award from TCSA, the only recipient in the convenience store industry.

Business Prospects

Global economic uncertainty will continue in 2021. Nevertheless, PCSC will maintain honesty, innovation, and sharing in our business operations, while continuing to advance the company’s seven key building elements: people, stores, products, systems, logistics, policies, and culture as well as continue to strengthen the competitiveness of digital platforms, making it a reliant service platform that surpasses customers’ expectation. Through diversified and digitalized business model, PCSC provides customers an environment characterized by experience, entertainment, education, and exploration.

PCSC invested in local delivery platform, Foodomo, to expand into the delivery market. With synergy from integrating group resources, PCSC could provide diverse products and services to customers speedily. Philippines 7-ELEVEN continues to improve its overall operating efficiency by adjusting its product structure and developing a digital platform. President Transnet Corp. (Takkyūbin) focuses on cold chain management, home-to-store delivery services, and medical logistics businesses to provide quality services to customers. President Drugstore Business Corp. (COSMED) focuses on online and offline integrated operations and introduces diversified products to ensure a rich and novel shopping experience. Uni-Wonder Corp. (Starbucks) will strengthen its core brand, enhance the diversified customer experience and optimize its membership program.

PCSC is “determined to become the most outstanding retailer by offering convenient services and being a good corporate citizen”. To achieve this vision, PCSC focuses on three core goals: creating a happy company, positively impacting society, and achieving environmental sustainability. We strive to make life more convenient for our customers, ensure steady profitability for our franchisees, create a fair and friendly working environment for our employees, and increase shareholder value for our shareholders.

2020 ANNUAL REPORT 15

2 Corporate Overview

1.Date of Incorporation: June 10, 1987

2.Company History

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1987 Formerly part of Uni-President Enterprises, President Chain Store Corporation
(PCSC) was established as an independent entity.
1988 The Electronic Order System (EOS) gradually rolled out to enhance distribution
efficiency and increase sales opportunities.
1989 PCSC became the third largest 7-ELEVEN chain in the world with the opening of
our 300th store.
1990 ． Established Retail Support International Corp.
．
Held the first franchisee seminar, thereby launching the 7-ELEVEN franchise
system in Taiwan.
1991 100th franchise store opened.
1994 Established the joint venture Duskin Serve Taiwan Co.
1995 ． 1000th store opened.
． Established President Drugstore Business Corp
1996 First generation of POS (Point-of-Sales) implemented to fully understand
customers’ demands and gather market intelligence.
1997 ． PCSC listed on the Taiwan Stock Exchange
． Established the joint venture President Coffee Corp. (renamed Uni-Wonder
Corp.)
1999 ． Expanded into offshore islands such as Penghu and Kinmen to provide
convenient services to local residents.
． 2000th store opened.
． Established Wisdom Distribution Corp., Uni-President Cold Chain Corp., and
President Musashino Corp.(renamed Uni-President Superior Commissary
Corp.).
2000 ． Signed perpetual area licensing agreement with 7-ELEVEN Inc.
． Acquired Philippine Seven Corp., extending operations to overseas.
． Established President Transnet Corp.
2002 ． Issued the company’s first secured corporate bond in the amount of NT$700
million.
． 3000th store opened.
． 7-ELEVEN lunch box meals certified by the Chinese Frozen Food Institute
to meet CAS standards, making it the first lunch box in Taiwan certified to be
stored at 18°C.
2003 ． 7-ELEVEN’s lunch box awarded the International Marketing Communications
Excellence Award 2002.
．
PCSC opened our first retail stores in large shopping complexes.
． PCSC issued a second secured corporate bond in the amount of NT$1.5 billion.
2004 ． Second generation of POS implemented.
． Launch of 7-ELEVEN icasH stored-value card.
． 7-ELEVEN’s lunch box products became the first convenience store boxed
meals to meet national standards as confirmed by Consumers’ Foundation
health inspection.
． Established Mister Donut Taiwan Corp., and President Cosmed Chain Store
(Shen Zhen) Co., Ltd.
2005 ． 4000th store opened.
．
Officially expanded into the hypermarket business in China with acquirement of
Shan Dong President Yinzuo Commercial Limited.
． Honored with the Executive Yuan’s 2005 Taiwan Sustainable Development
Award and the Ministry of Economic Affairs’ first Green Accounting Award.
2006 ． With the launch of the ibon multimedia kiosk with eight major functions,
including ticket sales, bill payments and mobile office services, PCSC achieved
our vision of 7-ELEVEN as a community service center.
． Established subsidiaries UNI-PRESIDENT Department Store Corp., Cold Stone
Creamery Taiwan Ltd., and Cold Stone (Shanghai) Corp.
2007 ． With7-ELEVEN Light Down Eco-Campaign, over 4,000 stores shut off store
lights during designated times in the summer months in a pioneering effort to
fight global warming.
．
The number of 7-ELEVEN CITY CAFÉ machines reached 1,000, making it the
largest coffee chain in Taiwan.
2008 ． 7-ELEVEN entered the NT$10 billion mobile telecommunications market by
launching “OPEN Talk” prepaid cards.
． PCSC won the 2008 CommonWealth Corporate Citizenship Award and Global
Views Magazine’s Corporate Social Responsibility Award.
． As part of our ongoing efforts to promote environmental protection and
energy conservation, PCSC began switching off all outdoor lighting at Taiwan
7-ELEVEN stores during the daytime, effectively reducing carbon emissions.
2009 Established President Chain Store (Shanghai) Corporation and signed a licensing
agreement with7-ELEVEN (China) Business Corporation, launching 7-ELEVEN
stores in Shanghai.
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2010 ． Jointly launched “Easy Delivery” service, the first of its kind, with Ruten.com, which has become Taiwan’s largest online auction marketplace.
． In an innovative move, “7Mobile” monthly rental service was officially launched with an eye towards customers looking for a minimum level of service or as a second mobile number.
． 7-ELEVEN was accredited as a “green store” by the Environmental Protection Administration and was awarded first place in the Taipei Gold Energy Saving Awards as we continue to strive towards becoming a green enterprise.
2011 ． Following the devastating earthquake in Japan, PCSC and 16 affiliated companies launched a fundraising campaign to collect donations in our stores.
． 7-ELEVEN introduced the “ibon convenient purchasing” service, creating a new wholesale shopping platform via the ibon kiosk and ibon Mart online website.
． 7-ELEVEN opened a 2,640-square meter international food court in Taoyuan International Airport’s Terminal 2, marking a new era in airport dining.
． Taking the lead in the convenience store industry, 7-ELEVEN introduced the E-Invoice in stores throughout Taiwan.
2012 ． 7-ELEVEN became the largest transportation ticket platform in Taiwan, with ibon offering tickets from the three major domestic carriers. Ninety percent of domestic air tickets can be purchased and paid for by credit card through ibon.
． Third generation of POS gradually implemented, accurately capturing customer trends and optimizing retail sales efficiency.
． Introduced “Taiwan’s New Agriculture” program, establishing the 7-ELEVEN Photosynthetic Farm to provide farm-to-table traceability management, food safety transparency, and show our commitment to offering delicious food customers can trust.
． In a pioneering move, PCSC established a distribution industry quality-testing lab, resulting in an even more rigorous food safety mechanism for customers.
． For the 18th year in a row, PCSC was named one of CommonWealth Magazine’s Top 10 Benchmark Enterprises. PCSC was also awarded the 2012 Digital Service Benchmark Enterprise Award by Business Next Magazine. In Global Views Magazine’s Excellence in Corporate Social Responsibility Awards, the only company to be recognized in all of the following categories: Community Involvement, Promotion of Public Interest, and Overall Performance.
2013 ． Third generation of POS fully implemented across the Taiwan 7-ELEVEN network of stores.
． 7-ELEVEN began selling premium fruit and fresh produce in 1,000 stores. ． 7-ELEVEN product quality inspection labs received three different international certifications, further raising the bar on product inspection.
． President Transnet Corp. established the Comprehensive Distribution Center in Zhongli, gearing up for rapidly expanding market needs with the new center’s large-scale, automated, highly efficient facilities.
． Released the film, “Bridge Over Troubled Water,” nominated for Best Documentary in the 50th Golden Horse Film Festival.
． Established icasH Corp., wholly undertaking the icasH trademark’s proprietary and management rights. icasH proved itself as a versatile payment method applicable across different channels.
． In recognition of efforts to implement corporate social responsibility, PCSC and Starbucks Taiwan once again received the Excellent Green Retail Business Award from the Taipei City Government. Both enterprises were recognized as green brands in the Food and Beverage, Retail, and Food Services categories by Business Next Magazine.y Business Next Magazine. Business Next Magazine.gazine.azine.
2014 ． 5000th store opened. ． Zhongli Fresh Food Commissary completed; together with Kaohsiung’s Taisha Fresh Food Commissary, these facilities play an important role as regional distribution centers, efficiently handling the rising demand for takeout food.
． Mister Donut received a perpetual license to operate in the Taiwan market
2015 ． 7-ELEVEN joined hands with Formosa Vegetable Organic Farm to offer “organic produce boxes” for preorder and sale at store branches.
． 7-ELEVEN opened a 2,640-square meter international food court in Taoyuan International Airport’s Terminal 2, marking a new era in airport dining.
． Introduced “Taiwan’s New Agriculture” program, establishing the 7-ELEVEN Photosynthetic Farm to provide farm-to-table traceability management, food safety transparency, and show our commitment to offering delicious food customers can trust.
． In a pioneering move, PCSC established a distribution industry quality-testing lab, resulting in an even more rigorous food safety mechanism for customers.
． President Transnet Corp. established the Comprehensive Distribution Center in Zhongli, gearing up for rapidly expanding market needs with the new center’s large-scale, automated, highly efficient facilities.
． Released the film, “Bridge Over Troubled Water,” nominated for Best Documentary in the 50th Golden Horse Film Festival.
． Established icasH Corp., wholly undertaking the icasH trademark’s proprietary and management rights. icasH proved itself as a versatile payment method applicable across different channels.
． In recognition of efforts to implement corporate social responsibility, PCSC and Starbucks Taiwan once again received the Excellent Green Retail Business Award from the Taipei City Government. Both enterprises were recognized as green brands in the Food and Beverage, Retail, and Food Services categories by Business Next Magazine.y Business Next Magazine. Business Next Magazine.gazine.azine.
． PCSC launched the internally-developed Material and Quality Assurance System and Laboratory Management System to keep track of information regarding suppliers, upgrade quality assurance management, and build a complete food security network.
． To capitalize on the B2C market for small value gifts, 7-ELEVEN launched iGift, enabling users to send electronic gift certificates through ibon kiosks and the ibon app.
． 7-ELEVEN Philippines opened its first store in the archipelago’s southernmost island of Mindanao thereby becoming a truly national chain of 1,600 stores.
． Subsidiary President Chain Store (Taizhou) Ltd. was officially established to support the Company’s medium and long-term logistic needs in eastern China.

16 2020 ANNUAL REPORT

Corporate Overview

． OPEN POINT currently have 12 million members. Using online and offline integration, 7-ELEVEN launched the ”mobile pickup function” and “i pre-order” platforms to create a comprehensive shopping experience and innovative services.
2016 ． The introduction of CITY Fresh expanded the CITY CAFE brand into the tea 2020 market, providing customers more variety.
． PCSC opened its first OPEN! Children’s Reading Space. To encourage reading as it gives back to the local community, it has been working with 24 publishing companies and has brought in over 600 children’s titles.
． PCSC and President Transnet Corp. began a technical collaboration with the Industrial Technology Research Institute, promoting iPickup Station, an intelligent self-pickup station in 7-ELEVEN store where packages are delivered and held, so recipients pick them up at their own convenience.
． icasH2.0 was officially incorporated into the mass transportation payment system. OPENPOINT’s range of applications increased, making life more convenient for customers.
． Uni-President Hankyu Department Store was renamed Uni-President Ustyle Department Store with a focus on “style”, consumers can expect a fresh new look and commitment to outstanding service.
． Wisdom Distribution Service Corp’s third phase plant came online, allowing it to make full use of its logistics capabilities and further increasing its service efficiency and quality.
． Shanghai 7-ELEVEN opened its 100th store.
2017 ． CITY CAFE Fresh Tea brand offered the first convenience store fresh brewed bubble tea series.
． 7-ELEVEN introduced steamed Japanese oden, which preserves nutrition and flavor, to provide customers even more delicious and diverse food choices.
． 7-ELEVEN and Cathay United Bank joined hands to launch credit card payment options in all stores.
． PCSC opened our first “Store of the Future” at the Changye location.
． Received official authorization to operate 7-ELEVEN in China’s Zhejiang Province. We will bring a convenient shopping experience for local residents and achieve new milestones for our overseas business operations.
． 7-ELEVEN Philippines opened our 2000th outlet, the LV Locsin store.
2018 ． PCSC launched “X-Store”, Taiwan’s first convenience store, to integrate cuttingedge technology into a retail space. PCSC unveiled the future of convenience stores by integrating state-of-the-art technology and offered valuable services and a new customer experience.
． 7-ELEVEN launched “intelligent vending machine”, employing a mini store-instore model, offering fresh food products at different temperatures to satisfy consumer needs. 2021
． PCSC integrated internal resources to create combination 7-ELEVEN retail stores with concepts of beauty, fitness, bakery, or fast foods. In addition, PCSC launched its first “Big 7”, an brand new store type of 7-ELEVEN that carries first premium coffee brand ”!+? CAFE RESERVE” and products of Beauty, Bakery, Candy, and physical book store of Books.com. As we continue to strive to meet the needs of different business areas and provide customers with a rich shopping experience.
． Brown sugar pearl milk tea was introduced in stores nationwide. In addition, CITY CAFE launched premium coffee products to meet customers’ needs.
． Established Beauty Wonder (Zhejiang) Trading Co., Ltd. ． PCSC received ISO 14064-1 GHG Certification and ISO 45001 OH&S Certification, the only CVS operator received ISO 45001 Certification in Taiwan.
2019 ． 7-ELEVEN has been working together in strategic partnerships with leading cross-industry brands and introducing co-brand stores as it continues to provide innovative consumer models to meet customer needs and to make shopping more fun.
． 7-ELEVEN launched Myship, a C2C service which provides individual sellers a sound and guaranteed e-commerce trading platform for cash flow, material flow (logistics), and information flow services.
． icash Corp. launched icash Pay, an e-payment system which provides online payments, money deposit, money transfer, and money withdrawal functions. icash Pay also connects member and point systems to the OPENPOINT to offer a more convenient shopping experience.
． Starbucks is cooperating with online food delivery platform to provide customers with a faster and more convenient food delivery experience.
． President Transnet Corp. established new Hualien plant, further expanding its support base and enhancing its service quality.
． 7-ELEVEN Philippines topped 2,800 retail locations as it continued to optimize its physical products and expands services such as e-commerce pick-up services and bill collection services.
． 7-ELEVEN joins hands with businesses, such as COSMED and BEING fit, to create a new lifestyle store that combines “deliciousness, health care and training”. In addition, “Frozen Flagship Store”, a new lifestyle store, was released to increase frozen fresh product items and met the business district needs.
． 7-ELEVEN launched “freshly-made panini”, our own vegetarian brand and rolled out co-branded fresh food with famous restaurants, celebrity chefs, and five-star hotels.
． 7-ELEVEN focuses on CITY CAFE categories as coffee drinks, freshly brewed tea, our pearl drink series, and CITY PRIMA. 7-ELEVEN will use online tools such as ”mobile pickup function” to meet the needs and business opportunities.
． 7-ELEVEN has launched a cold chain E-commerce pickup service and cooperated with well-known night markets in Taiwan to help physical retailers link to online platform.
． 7-ELEVEN cooperates with the epidemic prevention policy to create the most convenient channel for pre-ordering and receiving masks and other epidemic prevention products across Taiwan. In response to the government’s Stimulus Vouchers, 7-ELEVEN launched discounts activities, allowing consumers to buy and take anytime.
． 7-ELEVEN’s own brand launched a “production and sales sustainability” plan, with “packaging material reduction”, “planned production”, and “i-Love food”, three innovative methods to halve leftover food by 2030 to realize sustainability and environmental protection.
． PCSC was listed in Forbes Global 2000 in 2020 and was once again ranked among the Deloitte Global Powers of Retailing Top 250 with ranking improving each year.
． PCSC was listed among the Dow Jones Sustainability World Index and Emerging Markets Index and won the Industry Leader award. PCSC was selected as FTSE4Good Emerging Index, MSCI ESG Leaders Indexes, MSCI Global SRI Indexes, TWSE Corporate Governance 100 Index, FTSE4Good TIP Taiwan ESG Index and was ranked in the top 5% in the Taiwan Corporate Governance Evaluation System for the sixth year running.ystem for the sixth year running.stem for the sixth year running.year running.ear running.g..
． 7-ELEVEN launched “intelligent vending machine”, employing a mini store-instore model, offering fresh food products at different temperatures to satisfy Governance Evaluation System for the sixth year running.ystem for the sixth year running.stem for the sixth year running.year running.ear running.g.. consumer needs. 2021 ． The opening of the “Fengyi Store” in Kaohsiung marked 7-ELEVEN’s 6,000th
． PCSC integrated internal resources to create combination 7-ELEVEN retail store in Taiwan. The store design, a response to ESG sustainable development, stores with concepts of beauty, fitness, bakery, or fast foods. In addition, PCSC incorporates the concept of green environmental protection and sustainable launched its first “Big 7”, an brand new store type of 7-ELEVEN that carries first development. premium coffee brand ”!+? CAFE RESERVE” and products of Beauty, Bakery, ． PCSC entered the food delivery market and acquired the equity of Taiwan’s Candy, and physical book store of Books.com. As we continue to strive to local delivery platform Foodomo (Connection Labs Ltd.). PCSC will integrate meet the needs of different business areas and provide customers with a rich Group resources to show synergy and provide consumers with more diverse shopping experience. and fast products and services.
． 7-ELEVEN combined Group resources to open an ice cream lifestyle store with COLD STONE for the first time. Keeping abreast of video game amusement trend, 7-ELEVEN built a Pokémon store exceeding customer expectations.
． Aware of rapidly growing trends in the e-commerce C2C market, Myship launched a quick collection service with delivery personnel collecting packages directly at sellers’ place of business.
． OPEN POINT continues to integrate the membership systems of 14 channels within group to accelerate the growth of the number of members and increase member loyalty.

2020 ANNUAL REPORT 17

3 Corporate Governance

1. Organization

(1) Organization Chart

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Date: 15 March 2021
Stockholders' Meeting
Board of Directors
Internal Audit Office
Audit Committee
Board Secretary
Remuneration
Committee
Ethical Corporate
Chairman Management Practice Team
CSR Committee
Special Assistant to
Chairman
President
Occupational
Safety Office
Marketing Operation AI Digital Administration Office of the Finance Accounting
Group Group Group Group President Office Office
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(2) Responsibilities of Key Groups:

Audit Committee: Enhances Company’s internal monitoring mechanism and assists the board of directors in decision-making
Remuneration Committee: Evaluates Company’s remuneration policies and systems
CSR Committee: Planning and Implementation of Corporate Social Responsibility Policies.
Internal Audit Office: Management and implementation of internal auditing and the internal control system.
Board Secretary: Implement corporate governance and regulations, provide information to directors, and organize and held Board meetings and shareholders' meeting.
Ethical Corporate Management Practice Team: Promotion of ethical policies and preventative measures.
Marketing Group: Taiwan 7-ELEVEN product development and marketing strategy planning.
Operation Group: Operation and planning of Taiwan 7-ELEVEN stores.
AI Digital Group: System management planning and digital innovation services.
Administration Group: Management and planning of back office resource integration.
Office of the President: Administration of strategic planning, operating management, human resources, innovation, and new business opportunity.
Finance Office: Management and planning of financial affairs and investor relations.
Accounting Office: Management and planning of accounting and tax affairs.
Occupational Safety Office: Management of staff safety and health.

18 2020 ANNUAL REPORT

Corporate Governance

2. Information on Directors and Management of the Company and Various Departments and Branches

(1) Information on directors:

1. Information on directors:

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15 March 2021
Positions Spouse or Relatives Within the Second-
Shares Held by Shareholding
Date Shares Held at Education Held Degree of Consanguinity also Holding
Nationality Date Current Shareholdings Spouse or Minor by Nominee
Term of Time of Election and Concurrently Management, Directorial, or Supervisory Remark
Title or Place of Name Gender Elected to Children Arrangements
(years) Initial Experience at PCSC and Positions (Note 5)
Registration the Board
Election (Note 3) Other
Shares % Shares % Shares % Shares % Title Name Relationship
Companies
Director
Institutional R.O.C Uni-President - 2018.06.12 3 1987.06.10 471,996,430 45.40% 471,996,430 45.40% －－－－－－－－－－
Enterprises Corp.
Shareholder
Chairman R.O.C Lo, Chih-Hsien Male 2018.06.12 3 2000.06.15 1,032,215 0.10% 1,032,215 0.10% 1,044,139 0.10% －－ MBA, UCLA, USA (Note 4) Director Kao, Shiow-Ling Spouse －
(Representative) (Note 1)
Director Kao Chuan
Institutional R.O.C Investment Co., - 2018.06.12 3 2009.06.10 5,176,775 0.50% 5,176,775 0.50% －－－－－－－－－－
Shareholder Ltd.
Director R.O.C Kao, Shiow-Ling Female 2018.06.12 3 2010.03.20 1,044,139 0.10% 1,044,139 0.10% 1,032,215 0.10% －－ Marymount College,USA (Note 4) Chairman Lo, Chih-Hsien Spouse －
(Representative) (Note 2)
Director R.O.C Chen, Jui-Tang Male 2018.06.12 3 2012.06.21 13,652 0.00% 13,652 0.00% －－－－ BA, Dept. of Economics, National (Note 4) －－－－
(Representative) (Note 1) Taiwan University
Master Degree in Marketing,
Director R.O.C Huang, Jui-Tien Male 2018.06.12 3 2015.06.18 391 0.00% 15,391 0.00% －－－－ National Kaohsiung First (Note 4) －－－－
(Representative) (Note 1) University of Science and
Technology
Director R.O.C Huang, Jau-Kai Male 2018.06.12 3 2015.06.18 －－－－－－－－ Accounting, Shih Chien (Note 4) －－－－
(Representative) (Note 1) University
Director R.O.C Su, Tsung-Ming Male 2018.06.12 3 2008.02.14 － 0.00% － 0.00% －－－－ MBA, University of Iowa, USA (Note 4) －－－－
(Representative) (Note 1)
Director R.O.C Wu, Liang-Feng Male 2018.06.12 3 2018.02.24 －－－－－－－－ BA in Japanese, Tamkang (Note 4) －－－－
(Representative) (Note 1) University
Director R.O.C Wu, Kun-Lin Male 2018.06.12 3 2017.11.02 －－－－－－－－ BBA in Business Administration, (Note 4) －－－－
(Representative) (Note 1) National Cheng Kung University
Director R.O.C Wu, Tsung-Pin Male 2018.06.12 3 2012.06.21 －－－－－－－－ Accounting, Chung Yuan (Note 4) －－－－
(Representative) (Note 1) Christian University
BA, School of Accountancy,
Director R.O.C Wu, Wen-Chi Female 2018.06.12 3 2015.06.18 556 0.00% 556 0.00% 737 0.00% －－ University of Missouri at (Note 4) －－－－
(Representative) (Note 1)
Columbia, USA
Independent R.O.C Wang, Wen-Yeu Male 2018.06.12 3 2012.06.21 －－－－ 20,000 0.00% －－ PhD, Stanford Law School (Note 4) －－－－
director
Independent R.O.C Shu, Pei-Gi Male 2018.06.12 3 2012.06.21 －－－－－－－－ PhD, Management, National －－－－－
director Chengchi University
Independent R.O.C Hung, Yung-Chen Male 2018.06.12 3 2018.06.12 －－－－－－－－ PhD, Information Engineering, (Note 4) －－－－
director National Taiwan University
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Note 1: Representative of Uni-President Enterprises Corp.

Note 2: Representative of Kao Chuan Investment Co., Ltd.

Note 3: For more information on the experience of directors (including independent directors), please refer to the Positions Concurrently Held by Directors (including Independent Directors) in Other Companies table on page 86 of this report.

Note 4: For more information on the positions held by directors (including independent directors), please refer to the Positions Concurrently Held by Directors (including Independent Directors) in Other Companies table on page 86 of this report.

Note 5: The relationship between the Chairman and President of the company is not the same person, spouse, or first-degree relatives.

Note 6: As of 15 March 2021, average tenure of incumbent directors is 8 years and 1 month.

2020 ANNUAL REPORT 19

Corporate Governance

2. Independence and Professional Expertise of Board Members:

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Item Has over 5 years of work experience and the below
professional qualifications Independence Ranking (Note)
Holds the position Number of
Holds a license,
of lecturer (or obtained Work experience independent
above) at public directorships
through national in business,
or private college held in
or university in examination, for the law, finance, 1 2 3 4 5 6 7 8 9 10 11 12 other public
position of judge, accounting
business, law, companies
finance, accounting district attorney, or company
lawyer, accountant, operations
or company
Name or similar
operations
Lo, Chih-Hsien V V －
Kao, Shiow-Ling V V V －
Chen, Jui-Tang V V V V －
Huang, Jui-Tien V V V V V V V －
Huang, Jau-Kai V V V V －
Su, Tsung-Ming V V V V V －
Wu, Liang-Feng V V V V －
Wu, Kun-Lin V V V V －
Wu, Tsung-Pin V V V V －
Wu, Wen-Chi V V V V V V V －
Wang, Wen-Yeu V V V V V V V V V V V V V V 3
Shu, Pei-Gi V V V V V V V V V V V V V V －
Hung, Yung-Chen V V V V V V V V V V V V V V V －
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Note: All board members met with the following conditions for the two years leading up to assuming their posts and while they held their posts. Please place a tick mark "V" in the box under number that represents their situation.
(1) Not an employee of the company or any of its affiliates;
(2) Not a director or supervisor of the company or any of its affiliates.;
(3) Not a natural-person shareholder who holds shares, together with those held by the person’s spouse, minor children, or held by the person under others’ names, in an aggregate amount of one percent or more of the total number of issued shares of the company or ranks as one of its top ten shareholders;
(4) Not a spouse, relative within the second degree of kinship, or lineal relative within the third degree of kinship, of any of the officer in the preceding 1 subparagraph, or of any of the above persons in the preceding subparagraphs 2 and 3;
(5) Not a director, supervisor, or employee of a corporate/institutional shareholder that directly holds five percent or more of the total number of issued shares of the company, ranks as of its top five shareholders, or has representative director(s) serving on the company’s board based on Article 27 of the Company Law.
(6) Not a director, supervisor, or employee of a company of which the majority of board seats or voting shares is controlled by a company that also controls the same of the company;
(7) Not a director, supervisor, or employee of a company of which the chairman or CEO (or equivalent) themselves or their spouse also serve as the company’s chairman or CEO (or equivalent);
(8) Not a director, supervisor, officer, or shareholder holding five percent or more of the shares of a specified company or institution that has a financial or business relationship with the company;
(9) Other than serving as a compensation committee member of the company, not a professional individual who, or an owner, partner, director, supervisor, or officer of a sole proprietorship, partnership, company, or institution that, provides commercial, legal, financial, accounting services or consultation to the company or to any affiliate of the company, or a spouse thereof, and the service provided is an “audit service” or a “non-audit service which total compensation within the recent two years exceeds NTD500,000”;
(10) Not having a marital relationship, or a relative within the second degree of kinship to any other director of the company;
(11) Not been a person of any conditions defined in Article 30 of the Company Law; and
(12) Not a governmental, juridical person or its representative as defined in Article 27 of the Company Law.
Directors are representatives of institutional shareholders. The top ten major shareholders in such institutional shareholders (including % of stocks held) are as follows:

14 August 2020

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Name of Institutional Shareholder Principal Shareholders in PCSC Institutional Shareholders
Kao Chuan Inv. Co., Ltd.(4.93%); BNP Paribas Wealth Management HK. Branch (3.04%); Hou, Po-Ming (2.60%); Hou, Po-
Yu (2.27%); Government of Singapore － GOS － EFMC(2.17%); Cathay Life Insurance(2.07%); Shiow-Ling Kao(1.64%);
Uni-President Enterprises Corp.
JPMorgan Chase Bank N.A. Taipei Branch in custody for Saudi Arabian Monetary Agency(1.64%); The Overlook Partners Fund
L.P. (1.49%); JPMorgan Chase Bank N.A.(1.43%)
Kao Chuan Investment Co., Ltd. Infinity Holdings Ltd.(51.11%); Eternity Holdings Ltd.(48.89%)
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20 2020 ANNUAL REPORT

Corporate Governance

Below is a list of the top 10 shareholders (including % of stocks held) in the principal shareholders in PCSC institutional shareholders listed above who are themselves institutional shareholders:

4. Below is a list of the top 10 shareholders (including % of stocks held) in the principal shareholders in PCSC institutional shareholders listed above who are themselves institutional shareholders:	4. Below is a list of the top 10 shareholders (including % of stocks held) in the principal shareholders in PCSC institutional shareholders listed above who are themselves institutional shareholders:
31 December 2020
Name of Institutional Shareholder	Principal Shareholders in Institutional Shareholders
Cathay Life Insurance	Cathay Financial Holdings Co., Ltd.(100%)
Infnity Holdings Ltd.	Kao, Shiow-Ling (55.91%); Lo, Chih-Hsien (20.27%); Kao, Han-Di (7.94%); Kao, Tsu-Yi (7.94%); Lo, Hsi-Ai (7.94%)
Eternity Holdings Ltd.	Kao, Shiow-Ling (70.77%); Lo, Chih-Hsien (21.18%); Kao, Han-Di (3.36%); Kao, Tsu-Yi (2.45%); Lo, Hsi-Ai (2.24%)

(2) Information on the company president, senior vice presidents, vice presidents, and division heads:

15 March 2021

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Spouse or Relatives
Within the Second-Degree
Date Shares Held Shareholding Positions Held
Current of Consanguinity also
Assumed by Spouse or by Nominee Education and Experience Concurrently Remark
Title Nationality Name Gender Current Shareholdings Minor Children Arrangements (Note 1) at Other Holding Management, (Note 3)
Directorial, or Supervisory
Position Companies Positions
Shares % Shares % Shares % Title Name Relationship
Master Degree in Marketing,
President R.O.C Huang, Jui- Male 2018.06.20 15,391 －－－－－ National Kaohsiung First University (Note 2) －－－－
Tien
of Science and Technology
Special Assistant R.O.C Chen, Jui-Tang Male 2018.06.20 13,652 －－－－－ BA, Economics, National Taiwan (Note 2) －－－－
to Chairman University
Vice President R.O.C Hsieh, Lien- Male 2012.08.01 －－ 113 －－－ BA, Business Administration, (Note 2) －－－－
Tang Chinese Culture University
Vice President R.O.C Lin, Chi-Chang Male 2013.01.01 717 －－－－－ BA, Social Work, Soochow (Note 2) －－－－
University
Vice President R.O.C Chang, Chia- Male 2020.10.30 －－ 3,411 －－－ MBA, National Taiwan University (Note 2) －－－－
Hua
Chief Financial
Officer R.O.C Wu, Wen-Chi Female 2010.04.01 556 － 737 －－－ BA, Accounting, University of (Note 2) －－－－
Missouri, USA
(Vice President)
Chief Accounting
Officer R.O.C Lee, Johnyih Male 2020.08.15 －－－－－－ MA, Finance, Texas A&M (Note 2) －－－－
University, USA
(Vice President)
Vice President R.O.C Lin, Hung-Chun Male 2014.10.15 1,129 －－－－－ BA, Business Administration, (Note 2) －－－－
Aletheia University
Project Vice R.O.C Hsieh, Kuan- Male 2018.02.23 1,838 － 38,285 －－－ BA, Food and Nutrition, Fu Jen (Note 2) －－－－
President Hung University
Project Vice R.O.C Hsu, Kwang-Yu Male 2018.02.23 17,890 －－－－－ BA, Journalism, Chinese Culture (Note 2) －－－－
President University
Project Vice R.O.C Hsieh Hung, Female 2014.06.19 282 －－－－－ MBA, National Cheng Kung (Note 2) －－－－
President Hui-Tzu University
Project Vice R.O.C Wu, Hui-Chen Male 2019.03.01 －－－－－－ BA, Business Administration, (Note 2) －－－－
President Tunghai University
Master Degree in Marketing,
Project Vice R.O.C Chang, Kuo- Male 2019. 08.02 －－－－－－ National Kaohsiung First University (Note 2) －－－－
President Kuang
of Science and Technology
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Note 1: For more information on the background of Company management, please refer to the Positions Concurrently Held by Management in Other Companies table on page 88 of this report.

Note 2: For the list of positions held by the management team in other companies, please refer to the Positions Concurrently Held by Management in Other Companies table on page 88 of this report.

Note 3: The relationship between the Chairman and President of the company is not the same person, spouse, or first-degree relatives.

2020 ANNUAL REPORT 21

Corporate Governance

(3) Remuneration paid to Company directors, president, and senior vice presidents over the past year 1. Directors and Independent Directors remuneration:

31 December 2020 / Unit: NT$1000

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Director Remuneration Compensation to Directors Also Serving as Company Employees
Summation of A, B, Salary, Bonuses, and Employee Earnings Summation of A,B,C, Compensation
Remuneration (A) Pensions (B) Director Earnings Distribution (C) Business Expenses (D) C, and D as a % of After-Tax Income Special Allowance (E) (Note 3) Pensions (F) Distribution (G)(Note 4) D, E, F and G as a % of After-Tax Income from parent company
Title Name All and affiliates
All All All All All All All PCSC consolidated All other than
PCSC consolidated PCSC consolidated PCSC consolidated PCSC consolidated PCSC consolidated PCSC consolidated PCSC consolidated companies PCSC consolidated subsidiaries
companies companies companies companies companies companies companies companies (Note 5)
Cash Stock Cash Stock
Director
Uni-President
Institutional
Enterprises Corp.
Shareholder
Director Kao Chuan
Institutional Investment Co.,
Shareholder Ltd.
Chairman Lo, Chih-Hsien
(Representative) (Note 1)
Director Kao, Shiow-Ling
(Representative) (Note 2)
Director
(Representative)/ Chen, Jui-Tang
Special Assistant to (Note 1)
Chairman
Director
(Representative)/ Huang, Jui-Tien 1,800 6,411 - - 181,620 186,081 3,600 4,757 1.82% 1.92% 66,083 78,941 651 651 4,507 - 6,063 - 2.52% 2.76% 298,261
(Note 1)
President
Director Huang, Jau-Kai
(Representative) (Note 1)
Director Su, Tsung-Ming
(Representative) (Note 1)
Director Wu, Liang-Feng
(Representative) (Note 1)
Director Wu, Kun-Lin
(Representative) (Note 1)
Director Wu, Tsung-Pin
(Representative) (Note 1)
Director
(Representative)/ Wu, Wen-Chi
Chief Financial (Note 1)
Officer
Independent Director Wang, Wen-Yeu
Independent Director Shu, Pei-Gi - - - - - - 3,600 3,600 0.04% 0.04% - - - - - - - - 0.04% 0.04% -
Independent Director Hung, Yung-Chen
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※ Independent Directors’ remuneration policies, procedures, standards and structure, as well as the linkage to responsibilities, risks, and time spent: PCSC provides transportation allowance for independent directors based on attendances for the meetings of the Board of Directors and other functional committees.

※ In addition to above information, remuneration to Directors who provide services to PCSC or consolidated companies: None. Note 1: Representative of Uni-President Enterprises Corp.

Note 2: Representative of Kao Chuan Investment Co., Ltd. Note 3: Includes car leasing expenses for managers. Note 4: Earnings distribution for 2020 has not yet been approved by general shareholders meeting. These figures are based on the proposal approved by the Board. Note 5: Compensation received for directors and supervisors of parent company and affiliated enterprises that are not consolidated into the financial statement.

22 2020 ANNUAL REPORT

Corporate Governance

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Names of Directors
A+B+C+D A+B+C+D+E+F+G
Compensation Level
Parent company and all
PCSC All consolidated companies PCSC
consolidated companies
Kao, Shiow-Ling;
Su, Tsung-Ming; Kao, Shiow-Ling;
Su, Tsung-Ming;
Wu, Tsung-Pin; Su, Tsung-Ming;
Wu, Tsung-Pin;
Wu, Liang-Feng; Wu, Tsung-Pin;
Wu, Liang-Feng;
Less than NT$1,000,000 Wu, Kun-Lin; Wu, Liang-Feng; Wu, Liang-Feng
Wu, Kun-Lin;
Huang, Jau-Kai; Wu, Kun-Lin;
Huang, Jau-Kai;
Chen, Jui-Tang; Huang, Jau-Kai
Wu, Wen-Chi
Huang, Jui-Tien;
Wu, Wen-Chi
Chen, Jui-Tang;
Lo, Chih-Hsien; Lo, Chih-Hsien;
Huang, Jui-Tien; Wang, Wen-Yeu;
Wang, Wen-Yeu; Wang, Wen-Yeu;
NT$1,000,000 (incl.)~NT$2,000,000 Wang, Wen-Yeu; Shu, Pei-Gi;
Shu, Pei-Gi; Shu, Pei-Gi;
Shu, Pei-Gi; Hung, Yung-Chen
Hung, Yung-Chen Hung, Yung-Chen
Hung, Yung-Chen
― Lo, Chih-Hsien; ― ―
NT$2,000,000 (incl.)~NT$3,500,000
Kao, Shiow-Ling
― ― ― ―
NT$3,500,000 (incl.)~NT$5,000,000
NT$5,000,000 (incl.)~ NT$10,000,000 ― ― ― Wu, Kun-Lin
NT$10,000,000 (incl.)~ NT$15,000,000 ― ― Wu, Wen-Chi Wu, Wen-Chi
Kao Chuan Investment
Co., Ltd. ;
Kao Chuan Investment Kao, Shiow-Ling
Kao Chuan Investment Kao Chuan Investment
NT$15,000,000 (incl.)~ NT$30,000,000 Co., Ltd. ; Su, Tsung-Ming;
Co., Ltd. Co., Ltd.
Chen, Jui-Tang Wu, Tsung-Pin;
Huang, Jau-Kai;
Chen, Jui-Tang;
― ―
NT$30,000,000 (incl.)~ NT$50,000,000 Huang, Jui-Tien Huang, Jui-Tien
― ― ― ―
NT$50,000,000 (incl.)~NT$100,000,000
Uni-President Enterprises
Uni-President Enterprises Uni-President Enterprises Uni-President Enterprises
NT$100,000,000 and above Corp.;
Corp. Corp. Corp.
Lo, Chih-Hsien
Total 15 15 15 15
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2. President and senior vice president remuneration:

31 December 2020 / Unit: NT$1000

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Bonus and Special Earnings Distribution to Summation of A, B, C,
Salary (A) Pensions(B) Allowance (C) Employees (D) and D as a % of After- Compensation
(Note 1) (Note 2) (Note 3) Tax Income from parent
Title Name All company
All consolidated All consolidated PCSC consolidated All and affiliates
PCSC [All consolidated ] companies PCSC companies PCSC companies companies PCSC consolidated other than
companies subsidiaries
Cash Stock Cash Stock
President Huang, Jui-Tien
Special
Assistant to Chen, Jui-Tang 23,214 26,064 18,612 18,612 47,243 47,623 4,740 - 4,740 - 0.92% 0.95% 300
Chairman
Senior Vice
Wu, Kuo-Hsuan
President
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Note 1: Includes the pensions to Senior Vice President Wu, Kuo-Hsuan.

Note 2: Includes car leasing expenses for managers.

Note 3: Earnings distribution for 2020 has not yet been approved by general shareholders meeting. These figures are based on the proposal approved by the Board.

2020 ANNUAL REPORT 23

Corporate Governance

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Names of the President and Senior Vice Presidents
Compensation Level
PCSC Parent company and all consolidated companies
Less than NT$1,000,000 ― ―
― ―
NT$1,000,000 (incl.)~NT$2,000,000
― ―
NT$2,000,000 (incl.)~NT$3,500,000
― ―
NT$3,500,000 (incl.)~NT$5,000,000
― ―
NT$5,000,000 (incl.)~NT$10,000,000
― ―
NT$10,000,000 (incl.)~NT$15,000,000
NT$15,000,000 (incl.)~NT$30,000,000 Chen, Jui-Tang; Chen, Jui-Tang;
Huang, Jui-Tien ; Huang, Jui-Tien ;
NT$30,000,000 (incl.)~NT$50,000,000
Wu, Kuo-Hsuan Wu, Kuo-Hsuan
― ―
NT$50,000,000 (incl.)~NT$100,000,000
NT$100,000,000 and above ― ―
Total 3 3
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Earnings distribution as remuneration to Company management:

31 December 2020/ Unit: NT$1000

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Title Name Stock Cash Total Total as a % of After-Tax Income
President Huang, Jui-Tien
Special Assistant to Chairman Chen, Jui-Tang
Senior Vice President Wu, Kuo-Hsuan(Note 2)
Vice President Hsieh, Lien-Tang
Vice President Lin, Chi-Chang
Vice President Chang, Chia-Hua(Note 2)
Vice President Wu, Wen-Chi
Vice President Lee, Johnyih(Note 2)
Management ― 14,932 14,932 0.15%
Vice President Lin, Hung-Chun
Vice President Kuo, Ying-Chih(Note 2)
Vice President Tzeng, Fan-Bin(Note 2)
Project Vice President Hsieh, Kuan-Hung
Project Vice President Hsu, Kwang-Yu
Project Vice President Hsieh Hung, Hui-Tzu
Project Vice President Wu, Hui-Chen
Project Vice President Chang, Kuo-Kuang
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Note 1: Earnings distribution for 2020 has not yet been approved by general shareholders meeting. These figures are based on the proposal approved by the Board. Note 2: Kuo, Ying-Chih was dismissed in August 2020; Lee, Johnyih began his term in August 2020; Chang, Chia-Hua began his term in October 2020; Wu, Kuo-Hsuan was dismissed in November 2020; Tzeng, Fan-Bin was dismissed in December 2020.

(4) The below includes analysis of total remuneration (as a percentage of net income) given to directors, president and senior vice presidents by PCSC and all consolidated companies over the past two years along with a discussion of the remuneration policies, standards, arrangements, procedures for defining compensation and the relationship between remuneration packages and the company’s performance and future risk:
Remuneration paid over the past two years as a percent after-tax net income:

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President and Senior Vice Presidents
Title Directors
(Note 2)
PCSC 2.56% 0.92%
2020(Note 1)
All consolidated companies 2.80% 0.95%
PCSC 2.55% 0.75%
2019(Note 1)
All consolidated companies 2.68% 0.76%
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Note 1: PCSC’s net income after tax in 2020 was NT$10,238,162,000. PCSC’s net income after tax in 2019 was NT$10,542,860,000 Note 2: Includes the pensions to Senior Vice President Wu, Kuo-Hsuan in 2020.

24 2020 ANNUAL REPORT

Corporate Governance

Remuneration policy, standards, and arrangements, the procedures for determining remuneration, and the relationship between remuneration and company performance:
(1) PCSC's remuneration policy is based on the Company's business strategy, human resource policy, and financial capability. Every year, the Company participates in salary surveys undertaken by specialist salary survey organizations; the company's remuneration levels are then reviewed based on the results of these surveys.
(2) According to Article 32 of PCSC's Articles of Incorporation, if the current year's profit situation (pre-tax profits prior to deduction of employee compensation and director remuneration) is deducted by accumulated deficit, no more than 2% of said surplus shall be distributed as director remuneration. Reasonable compensation has been assessed and given to directors based on PCSC’s operational achievements, continuous educations, engagement of business sustainability, and the director’s respective contribution to the Company which includes financial KPIs such as company’s profitability. In addition to PCSC’s overall performance, remuneration is based on the performance of individual directors and their contributions to PCSC. Relevant performance and reasonableness of remuneration are to be assessed by PCSC’s remuneration committee and the Board of Directors. The remuneration system is to be reviewed and adjusted as necessary based on actual operational status and relevant regulations as PCSC seeks to realize sustained operations and risk management. (“Employee, director, and supervisor remuneration” on page 56.)
(3) Remuneration paid to the PCSC president, senior vice presidents and vice presidents is set according to their individual performance including financial KPIs, such as company’s profitability, and their contribution to the company's operations. Said remuneration shall also conform to PCSC's remuneration regulations and take into consideration typical remuneration levels paid by other companies (using data compiled by market research firms). Bonuses shall be awarded based on PCSC's performance management regulations and take into consideration both PCSC's operating performance and the individual's own performance.

3. Implementation of Corporate governance

(1) Operations of the Board of Directors:

As of publication of the Annual Report, there had been a total of 7 (A) meetings of the Board of Directors over the past fiscal year. Director attendance is detailed below:

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Meetings Attended Personal Attendance Rate
Title Name Meetings Attended by Proxy Remarks
Personally (B) (B/A)
Chairman Uni-President Enterprises Corp. 7 0 100% —
Lo, Chih-Hsien
Director Kao Chuan Investment Co., Ltd. 6 1 86% —
Kao, Shiow-Ling
Director Uni-President Enterprises Corp. 7 0 100% —
Chen, Jui-Tang
Director Uni-President Enterprises Corp. 7 0 100% —
Huang, Jui-Tien
Director Uni-President Enterprises Corp. 7 0 100% —
Huang, Jau-Kai
Director Uni-President Enterprises Corp. 7 0 100% —
Su, Tsung-Ming
Director Uni-President Enterprises Corp. 7 0 100% —
Wu, Liang-Feng
Director Uni-President Enterprises Corp. 7 0 100% —
Wu, Kun-Lin
Director Uni-President Enterprises Corp. 7 0 100% —
Wu, Tsung-Pin
Director Uni-President Enterprises Corp. 7 0 100% —
Wu, Wen-Chi
Independent Director Wang, Wen-Yeu 7 0 100% —
Independent Director Shu, Pei-Gi 7 0 100% —
Independent Director Hung, Yung-Chen 7 0 100% —
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Other issues to be noted:

In the event of either of the following situations, dates, sessions, contents of resolutions of the Board Meetings, opinions from all independent directors, and Company responses to their opinions should be noted:
(1) Issue specified in Article 14-3 of the Securities and Exchanges Act: The Company has set up an Audit Committee, so it is not applicable of Article 14-3 of the Securities and Exchange Act. Please refer to page 27 “Operations of the Audit Committee” for more information regarding to Article 14-5 of the Securities and Exchange Act.

2020 ANNUAL REPORT 25

Corporate Governance

(2) Other issues opposed by independent directors or about which said directors have reservations should be recorded in writing in the meeting minutes of the Board: None. 2. Should a director recuse him or herself from a decision about which he or she has a conflict of interest, the name of the director, contents of the resolution, reasons for recusal, and the results of the vote should be noted: (1) PCSC’s proposal to appoint a new head of the accounting office was raised and discussed on July 30, 2020. In accordance with Article 11 in Ethical Corporate Management Best Practice Principles and Policies and Conduct Guidelines, Director Wu, Wen-Chi and the supervisors recused themselves from discussion and voting due to conflicts of interest. Except for the above-mentioned directors who withdrew due to their interests, the other directors present had no objections, and passed the proposal. (2) The Company 2021 donation plans were raised and discussed during the company board meeting held on December 15, 2020. Director Huang, Jui-Tien serves as the director of Taiwan Millennium Health Foundation, and recused himself from discussion and voting due to conflicts of interest; Vice President Lin, Chi-Chang serves as the chairman of President Chain Store Good Neighbor Foundation; group leaders Lee, Tsung-Hsien, Kuo, Ching-Feng, and the department manager Hsu, Yi-Shiung, serve as the directors of President Chain Store Good Neighbor Foundation recused themselves to avoid conflict of interests. Except for the above-mentioned directors who withdrew due to their interests, the other director present had no objections, and passed the proposal. 3. TWSE/GTSM listed companies shall disclose evaluation cycles, periods, scopes, methods, and details used to conduct general self-evaluations (or peer evaluations) for their boards: The proposal for Performance Evaluation Guidelines and Evaluation Methods for the Board of Directors was raised and adopted during the company board meeting held on November 1, 2019. PCSC will hold company board meetings, the Audit Committee and Remuneration Committeess, to conduct self-evaluations and peer evaluations and report the results before the end of the first quarter of the following year starting in 2020. 4. During this and recent fiscal years, PCSC has worked to strengthen the function of the Board (e.g., establishing the Audit Committee and enhancing information transparency) and evaluate the implementation of such measures: (1) On March 8, 2005, in accordance with the Company’s Corporate Governance Code of Practice, PCSC established Rules of Procedure for Board Meetings, which was reported to the General Shareholder’s Meeting held on June 14, 2005. On February 27, 2019, in accordance with the amended TWSE Company’s Corporate Governance Code of Practice received by PCSC from the competent authority on December 12, 2018, PCSC passed the revised content of the Company’s Corporate Governance Code of Practice during the 6th meeting of the 12th board. On February 27, 2020, in accordance with the amended Taiwan Stock Exchange Corporation Operation Directions for Compliance with the Establishment of Board of Directors by TWSE Listed Companies and the Board’s Exercise of Powers announced on January 2, 2020, PCSC passed the revised content of the Company’s Corporate Governance Code of Practice during the 14th meeting of the 12th board. (2) In accordance with the addition of independent directors and regulations issued by the Financial Supervisory Commission R.O.C., during the Board meetings held on March 21, 2012 and December 19, 2012, PCSC revised the functions of independent directors and regulations governing director recusal due to conflict of interest. To ensure even stronger supervisory capabilities of the Company’s Board, on August 19, 2011, PCSC established the Remuneration Committee and then, on June 21, 2012, further established the Audit Committee. (3) To enhance corporate governance, on August 3, 2018, the Company’s Board passed a resolution to add a Board of Directors Secretariat directly under the Board of Directors and appoint Hsieh Hung Hui-tzu project vice president in the President’s Office to assist the Board of Directors Secretariat carry out its oversight and management duties, providing directors (including independent directors) the information they need to perform their duties, assisting directors (including independent directors) to adhere to the laws and regulations, and performing tasks related to Board of Directors and shareholder meetings in accordance with the law. (4) To enhance the Board of Directors’ structure and operations as stipulated by relevant laws and regulations, on December 12, 2018, the Company’s Board passed a resolution to establish a functional CSR Committee directly responsible to the Board and drew up organizational procedures for the CSR Committee. The organizational procedures of the CSR Committee stipulate that the committee is to consist of six members. Due to retirement of Former Senior Vice President Wu, Kuo-Hsuan, Project Vice President Hsu, Kwang-Yu took over as the chairman. Vice President Wu, Wen-Chi is the vice chairman. Project Vice President Wu, Hui-Chen is the secretary general. The other three committee members, Wang, Wen-Yeu, Shu, Pei-Gi, and Hung, Yung-Chen, are independent directors. (5) In accordance with the Regulations Governing Procedures for Board of Directors Meetings of Public Companies issued by the Financial Supervisory Commission, R.O.C. on January 15, 2020, PCSC passed the revised content of Rules of Procedures for Board Meetings during the 14th meeting of 12th board on February 27, 2020. (6) During the period from January 1, 2020 to May 15, 2021, proposals which, according to the Company Act and Article 14-3, 14-5 of the Securities and Exchanges Act, are to be approved by the Audit Committee before they are sent to the Board for discussion and voting, were approved by the Audit Committee before being adopted and implemented by the Board.

(2) Implementation of conducting evaluations of the Board:

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Evaluation cycle Evaluation period Evaluation scope Evaluation methods Evaluation details
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Evaluation cycle	Evaluationperiod	Evaluation scope	Evaluation methods	Evaluation details

Execute once a year	January 1, 2020 to December 31, 2020	Performance evaluation of the board of directors, individual directors and functional committees	Self-evaluation of operational performance by the board of directors, self-evaluation of the performance by individual directors and self-evaluation of the operational performance by functional committees	(1) Aspects of board performance evaluation: •Participation in the Company operations •Improve the quality of board decisions •Board composition and structure •Director selection and continuing education •Internal control (2) Aspects of individual director performance evaluation: •Mastery of the Company goals and tasks • Awareness of directors’ duties • Participation in the Company operations • Internal relationship management and communication • Professional competence and continuing education of directors • Internal control (3) Aspect of functional committee performance evaluation: •Participation in the Company operations •Awareness of functional committee’s duties •Improve decision-making quality of functional committees •Composition of functional committee and selection of members •Internal control

26 2020 ANNUAL REPORT

Corporate Governance

(3) Operations of the Audit Committee:

The purpose of the Audit Committee is to assist the Board in the execution of its duties to supervise and implement the Company Act, the Securities and Exchanges Act, and other related laws. On June 21, 2012, PCSC established the Audit Committee, which is consist of three independent directors. The Audit Committee holds at least one meeting every quarter. During its four meetings in 2020, it primarily discussed the following items:
(1) Reviewing financial reports: The Board prepared the Company’s 2019 business report, financial statements, and proposal for allocation of 2019 profits. The independent auditors of PRICEWATERHOUSECOOPERS audited PCSC’s financial statements and issued an audit report on the financial statements. The business report, financial statements, and profit allocation proposal were reviewed and determined to be correct and accurate by the Audit Committee members of President Chain Store Corp.
(2) Evaluating the effectiveness of the Company’s internal control system: The Audit Committee evaluates the policies and procedures of the Company’s internal control systems and reviews the Company’s Audit Department and external auditors, and examines regular managerial reports.
(3) Appointing external auditors: The Audit Committee has the responsibility to ensure the independence of accounting firms and the accuracy of financial reports. PCSC passed the proposal to evaluate the independence of the external auditors on May 5, 2020.
As of publication of the Annual Report, there had been a total of 5 (A) meetings of the Audit Committee over the past fiscal year. Independent director attendance is detailed below:

Title	Name	Meetings Attended (B)	Meeting attend by Proxy	Attendance Rate (%) [B/A] (Note)	Remarks
Independent Director	Wang, Wen-Yeu	4	1	80﹪	—
Independent Director	Shu, Pei-Gi	5	0	100﹪	—
Independent Director	Hung, Yung-Chen	5	0	100﹪	—

Other issues to be noted:
In the event of either of the following situations, dates, sessions, contents of resolutions of the Board Meetings, opinions from all independent directors, and Company responses to their opinions should be noted:
(1) Issues specified in Article 14-5 of the Securities and Exchange Act: Please refer to page 44 "Major resolutions voted on at Shareholder, Board Meetings, Audit Committee, and Remuneration Committee during the most recent year and as of the date of publication of the Annual Report". All the resolutions were approved by the majority of the Audit Committee members and then were approved by the Board meetings.
(2) Other matters not passed by the Audit Committee, which were then agreed upon by two-thirds of the entire membership of the Board of Directors: None.
In situations where independent directors recuse themselves due to conflict of interest, the independent director's name, content of the resolution, reason for recusal, and his or her voting participation should be properly recorded: None.
Communication between independent directors and internal audit managers and external auditors (regarding issues such as Company financial and operational status, procedures, and results):
(1) The Company's internal audit managers provide Audit Committee members with regular updates on audit report results and follow-up during the Audit Committee Meeting. If a special situation should arise, internal audit managers shall immediately report to the Audit Committee. Items that the Audit Committee and internal audit manager discussed in 2020 are as follows, all independent directors had no opinion:

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Date Items Discussed
2020/02/26 October 2019- January 2020 audit execution report
2020/05/05 February -March 2020 audit execution report
2020/07/30 April -June 2020 audit execution report
1.July - September 2020 audit execution report
2020/10/29
2. 2021 Audit Plan
2021/02/25 October 2020- January 2021 audit execution report
(2) The Company retains external auditors who, after auditing the financial statement, report their findings to the Audit Committee and discuss any additional matters as
required by law. If a special situation should arise, external auditors shall immediately report to the Audit Committee. In 2020, the Audit Committee and the independent
auditors retained by the Company discussed the following items, all independent directors had no opinion:
Date Items Discussed
2020/02/26 The independent auditors discussed the 2019 financial report.
2020/05/05 The independent auditors discussed the Q1 of the 2020 financial report.
2020/07/30 The independent auditors discussed the Q2 of the 2020 financial report.
2020/10/29 The independent auditors discussed the Q3 of the 2020 financial report.
2021/02/25 The independent auditors discussed the 2020 financial report.
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2020 ANNUAL REPORT 27

Corporate Governance

(4) Differences between Company policy and Corporate Governance Best-Practice Principles for TSE/ GTSM Listed Companies and reasons for differences:

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Variations (if any)
with the Corporate
Status
Governance Best
Practice Principles
Items Evaluated
for TWSE/GTSM
Listed Companies
Yes No Brief Explanation and reasons for
such discrepancies
1. Did PCSC establish its Corporate V In order to establish a sound corporate governance system, the Company considered regulations Compliant
Governance Best Practice set forth in the Corporate Governance Best Practice Principles for TWSE/GTSM Listed
Principles in accordance with Companies coproduced by TWSE and GTSM and passed the Corporate Governance Best
Corporate Governance Best Practice Principles at the meeting of the board on 19 December 2014. In addition, to meet with
Practice Principles for TWSE/ requirements as stipulated in regulations at the meeting of the board on 27 February, 2020. For
GTSM Listed Companies and more information regarding the Company’s Corporate Governance Best Practice Principles,
disclose those Principles? please go to the Company website or Taiwan Stock Exchange Market Observation Post System.
2. Ownership structure and shareholders’ rights
(1) Did PCSC establish internal V In addition to authorizing a share transfer agent to handle relevant affairs, PCSC also established Compliant
operational procedures for a comprehensive spokesperson system and Board of Directors Secretariat to deal with
dealing with shareholder shareholder issues.
suggestions, questions,
disputes, and lawsuits and put
these procedures into practice?
(2) Does PCSC maintain a list of V Through the assistance of the share transfer agent, PCSC remains fully aware of its major Compliant
major Company shareholders shareholders and regularly reports any changes in shareholding by directors or PCSC
and the ultimate owners of management. Apart from natural person shareholders, PCSC maintains a relationship with its
these shares? major institutional shareholders. If necessary, PCSC can obtain the list of their ultimate owners
from these institutional shareholders.
(3) Did PCSC establish and V In accordance with the Regulations Governing Establishment of Internal Control Systems by Compliant
implement risk control Public Companies, PCSC has defined Procedures Governing the Monitoring of Subsidiaries to
mechanisms and firewalls at establish a risk management mechanism at its subsidiaries.
the Company and affiliated
enterprises?
(4) Did PCSC establish internal V 1. In accordance with article 157-1 of the securities laws, PCSC has specified the object of the Compliant
standards to prevent Company specification and the conditions that constitute insider trading in the operation procedures
personnel from using market of insider trading prevention in the internal control system. If personnel’s intention or action
information not yet made public constitutes insider trading, they will be dealt with in accordance with the internal control system
to purchase securities? and regulations.
2. In accordance with article 17 in Ethical Corporate Management Best Practice Principles and
Policies, article 15 in Ethical Corporate Management Operating Procedures and Code of
Conduct, and article 10 in Corporate Governance Best Practice Principles, PCSC regulates its
personnel to follow the regulations of the Securities Exchange Act. To prevent insider trading,
personnel are not allowed to use non-public information to engage in insider trading, or to leak
information to others.
3. In order to ensure new employees are aware of the regulations, PCSC provides trading related
standards for new employees and require employees sign a statement indicating that they
understand the standards.
4. The Company periodically educates directors and management on the Board that insider
trading is prohibited.
5. The Company periodically uses the monthly management report to carry out internal training
on related topics.
6. The company periodically reports shareholding changes to the company through insiders and
educates on related topics.
3. Composition and responsibilities of the Board of Directors
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28 2020 ANNUAL REPORT

Corporate Governance

Items Evaluated	Status	Status	Status	Variations (if any) with the Corporate Governance Best Practice Principles for TWSE/GTSM Listed Companies and reasons for such discrepancies
	Yes	No	Brief Explanation
(1) Has PCSC established policies calling for diversity among members of the Board of Directors and put said policies into practice?	V		1. PCSC passed Corporate Governance Best Practice Principles at the 16 th meeting of the 10th Board on 19 December 2014. The guidelines of diversity of the board of directors composition is mentioned in chapter lll” Enforcing the Function of Board of Directors.” 2. In accordance with PCSC’s Corporate Governance Best Practice Principles and the director election guidelines, the composition of the members of the Board of Directors emphasizes diversity. The number of directors who also serve as managers of the Company is not to consist of more than one-third of Board seats. Also, the Company formulates appropriate policies on diversity based on the Company’s business operations, operating dynamics, and development needs which include, but are not limited to, the following two major standards: (1) Basic conditions: gender, age, etc. (2) Professional knowledge and skills: background, skills, and industry experience. The implement and achievement of the diversity policy is as below: Management of Diversity Policy Accomplishment Three seats of Independent Directors accomplished The number of directors who also serve as managers of the Company is not consisted more than one-third of Board seats accomplished 3. The actions regarding to the diversity policy of Board of Directors are: The Company’s current 13 directors include three employees, counted for 23%, three independent directors counted for 23%, and two directors are female, counted for 15%. The tenure of 1 independent directors is under three years, and the tenure of 2 independent directors is 8 years. The directors generally have the specialized knowledge, skills and accomplishments necessary to perform their duties. (Note 1) The implement meets the management condition. 4. For more diversity policy of composition of Board of Directors, please go to the Company website or Taiwan Stock Exchange Market Observation Post System.	Compliant
(2) In addition to the establishment of the Remuneration Committee and Audit Committee as required by law, did PCSC establish committees with other functions of its own accord?	V		In addition to establishing the Remuneration and Audit Committees as required by law, the Company also has a CSR Committee which is under the Board of Directors and cross-sectoral Ethical Corporate Management Practice Team which reports the status and achievements of their work to the directors on a regular basis. The Company will take into consideration the legal environment, Company operations, and management needs in deciding whether or not to establish additional functional committees in the future.	Compliant
(3) Has PCSC established performance evaluation guidelines and evaluation methods for the Board of Directors and does it evaluate its performance regularly each year and report the results to the Board as well as use the results as reference for remuneration and reappointment of Directors?	V		PCSC passed the Guidelines and Methods for Evaluating the Performance of the Board of Directors during the Board meeting on 1 November 2019. Starting in 2020, PCSC will hold board meetings, including of the Audit and Remuneration Committees, to self-evaluate or peer evaluate the Board and report the results before the end of the frst quarter of the following year. According to the Guidelines and Methods for Evaluating the Performance of the Board of Directors, relevant departments are to provide audit materials for the evaluation period to the Directors, so they can evaluate and report the results to the Board. The results will be used as reference for elections or nominations of Director positions.	Compliant
(4) Does PCSC periodically assess the independence of external auditors?	V		1. PCSC’s Audit Committee and Board of Directors annually evaluate accountants based on standards derived from the Certifed Public Accountant Act and the 10th Code of Ethics for Professional Accountants and reports the results to PCSC’s Audit Committee and Board of Directors to evaluate the independence of its certifed accountants. After being reviewed by the Company, it was determined that Liang, I-Chang and Chou, Chien-hung, CPAs with PricewaterhouseCoopers, met with the Company’s independent evaluation standards (Note 2) and could assume the position of retained external auditors for the Company. Last evaluation was passed by the audit committee on February 25 2021 and submitted to the board of directors on February 26 2021 for approval. After being reviewed by the Company, it was determined that Liang, I-Chang and Lin, Se-Kai CPAs with PricewaterhouseCoopers, met with the Company's independent evaluation standards (Note 2) and could assume the position of retained external auditors for the Company. 2. PCSC’s external auditors provide PCSC with a Statement of Independence. The external auditingfrm also complies with rules for rotatingexternal auditors.	Compliant

2020 ANNUAL REPORT 29

Corporate Governance

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Variations (if any)
with the Corporate
Status
Governance Best
Practice Principles
Items Evaluated
for TWSE/GTSM
Listed Companies
Yes No Brief Explanation and reasons for
such discrepancies
4. Has PCSC designated eligible V 1. To enhance corporate governance, on August 3, 2018, the Company’s Board resolved to set Compliant
personnel and an appropriate Board Secretary directly under the Board of Directors and appoint Hsieh Hung, Hui-Tzu as
number of personnel as well Project Vice President of President’s Office to assist Board Secretariat carry out its oversight
as designated personnel to and management duties, providing directors (including independent directors) the information
implement corporate governance they need to perform their duties, assisting directors (including independent directors) to
related business (including, but not adhere to the laws and regulations, and performing tasks related to Board of Directors and
limited to, providing information shareholder meetings in accordance with the law.
needed by directors or supervisors 2. Corporate governance team has been set up, and finance, accounting, operational planning
to execute their duties, to comply departments, and professional stock agency are assisting the corporate governance related
with regulations, matters related matters.
to meetings of the Board and 3. 2020 business execution explained below:
shareholder meetings held in (1) Assisted directors and independent directors carry out their duties, providing them with
accordance to legal requirements, the materials they needed and made arrangements for directors to receive continuing
and producing proceedings for education.
the meetings of the Board and (2) Assisted directors comply with regulations by providing company management and
shareholders)? corporate governance regulations, and regularly providing the latest versions of these
documents.
(3) Assisted with the Board of Directors and shareholder meetings to ensure that the
proceedings and resolutions adhered to relevant laws and regulations: reported the status
of PCSC’s corporate governance to the Board of Directors, independent directors, and the
audit committee, ensured that PCSC’s shareholder and board meetings were carried out
in accordance with relevant laws and the corporate governance rules. Reviewed major
announcements pertaining to important resolutions of the Board of Director to ensure
that the legality and accuracy of the information and to guarantee investors receive equal
transaction information.
(4) Drawn up the agenda for Board of Directors meetings, notified directors prior to meetings,
convened meetings, and provided meeting materials. Issued reminders in advance when
issues required recusal. Provided complete meeting minutes after meetings. Everything
was completed within the stipulated time periods.
(5) Registered dates for shareholder meetings prior to meetings, produced meeting
notifications, handbooks, and minutes within the statutory period, and made and registered
changes made to revised articles of incorporation or Company director elections in
accordance with the law.
4. As of the date of the printing of the annual report, Hsieh Hung, Hui-Tzu, Project Vice President
of Corporate Governance, had taken classes entitled “Group Governance and Performance
Management” and “Seize Future Key Talents” organized by the Taiwan Institute of Directors,
“The Corporate Governance Viewpoints of Corporate Governance Staff and the Operational
Research Viewpoint of the Board” and “Ten Required Courses of Corporate Governance”
organized by Taiwan Corporate Governance Association, and “2020 Prevention of Insider
Trading and Insider Equity Trading Publicity Seminar” organized by Securities and Futures
Institute, total 15 hours.
5. Has PCSC established V 1. In 2015, PCSC set up a stakeholder area on its website with sections for different types of Compliant
communication channels with stakeholders. We also established a system and have a response mechanism in place to
stakeholders (including, but ensure the Company properly handles feedback from stakeholders. In addition, it ensures that
not limited to, shareholders, the personal information of stakeholders remains confidential.
employees, customers, and 2. PCSC deals with banks and other creditors in accordance with the principles of honesty and
suppliers) and set up an area openness, providing all necessary operational and financial information to enable them to make
dedicated to stakeholders on the informed decisions in light of PCSC’s operational status.
Company website and does the 3. PCSC encourages its employees to communicate directly with management. In addition, a
Company respond appropriately discussion platform has been set up to enable them to express their views on the Company’s
to corporate social responsibility operations.
issues that stakeholders consider 4. The Company has established an internal employee care group that actively works to provide
important? effective, timely consultation and guidance to employees whenever required.
5. PCSC has set up a public website, which not only discloses business and financial information,
but also states its responsibilities and obligations as a corporate citizen.
6. PCSC has established the Integrated Services Call Center, stakeholder’s mail box, and
franchisee question and complaint hotline to serve as a communication channel between
PCSC, its suppliers, employees, customers, and franchisees.
6. Has PCSC designated an agent V PCSC has designated the President Securities Corporation Stock Affairs Department to handle Compliant
specializing in the handling of shareholder meeting affairs.
stock affairs to handle shareholder
meeting affairs?
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30 2020 ANNUAL REPORT

Corporate Governance

Items Evaluated	Status	Status	Status	Variations (if any) with the Corporate Governance Best Practice Principles for TWSE/GTSM Listed Companies and reasons for such discrepancies
	Yes	No	Brief Explanation
7. Information Disclosure
(1) Has PCSC established a public website to disclose operational, fnancial, and corporate governance information?	V		PCSC has established an investor relations website at https://www.7-11.com.tw/company/ir/ index.html and designated personnel to be responsible for disclosing operational, fnancial, and corporate governance information.	Compliant
(2) Has PCSC adopted other methods of information disclosure (e.g., setting up an English website, designating a specialist responsible for gathering and disclosing Company information, setting up a spokesperson system, uploading recordings of investor conferences onto the Companywebsite)?	V		1. PCSC has set up an English website. Our dedicated investor relations team is responsible for the collection and disclosure of corporate information and the updating of website content. 2. In accordance with legal requirements, PCSC has established a comprehensive spokesperson system with Project Vice President Hsu, Kwang-Yu as Spokesperson and Vice President Hsieh, Lien-Tang as Deputy Spokesperson. 3. PCSC holds and attends annual investor conferences. The materials and videos are posted on the Company website and also on Taiwan Stock Exchange Market Observation Post System.	Compliant
(3) Did PCSC announce and declare the Annual Financial Report within two months after the fscal year ended, and announce and declare the frst, second, and third quarter Financial Reports and the monthly Operating Situation reports before the deadline?	V		1. PCSC declared 2019 and 2020 annual Financial Reports on February 27, 2020 and February 26, 2021, respectively, a month earlier than required. 2. The frst, second, and third quarter Financial Reports of 2020 were declared respectively on May 6, July 30, and October 30, all earlier than required. The monthly Operating Situation Reports were declared based on monthly account settlement, but were all completed earlier than required.	Compliant
8. Does PCSC have other important information to facilitate better understanding of the Company’s corporate governance practices (including, but not limited to current status of employee rights, employee care, investor relations, supplier relations, stakeholder rights, director and supervisor training regimes, risk management policies, and risk measurement standards as well as the implementation of client policies and the Company’s purchase of liability insurance for its directors and supervisors)?	V		1. There is no spousal relationship between PCSC’s chairman and president, and they are not relatives within one degree of consanguinity. The president and chairman as well as managers responsible for fnance and accounting at PCSC have not worked for the Company’s currently designated accounting offce or affliated enterprises within the past year. 2. 2020 continuing education for management team: (1) President Huang, Jui-Tien, Special Assistant to Chairman Chen, Jui-Tang, and Chief Financial Offcer Wu Wen-Chi, had taken classes entitled “Group Governance and Performance Management” and “Seize Future Key Talents” organized by the Taiwan Institute of Directors, total 6 hours. (2) President Huang, Jui-Tien, Special Assistant to Chairman Chen, Jui-Tang, Chief Financial Offcer Wu, Wen-Chi, Vice President Hsieh, Lien Tang, and Vice President Lin, Chi-Chang had taken classes entitled ”Corporate Governance” organized by Good Governance Advocates & Practitioners of the Philippines (GGAPP), total 2 hours. (3) Chief Auditor Lee, Kun-Feng attended classes entitled “Introduction to Code of Integrity Management and ISO37001 Implementation Practice” and “Information Business Verifcation Practice Seminar” offered by the Institute of Internal Auditors, 12 hours; (4) A required three-hour class on law for all high-level managers was held. 3. Should a proposal result in a confict of interest between a director and the Company, said director may make comments or answer questions, but he or she is barred from the discussion and vote on the proposal. 4. PCSC has purchased liability insurance for its directors and key personnel and submitted it to the Board of Directors for approval. 5. PCSC was listed among the Dow Jones Sustainability World Index and Emerging Markets Index, ranked No. 1 in the food retail industry and won the Industry Leader award. PCSC was selected as FTSE4Good Emerging Index, MSCI ESG Leaders Indexes, MSCI GloballSRI Indexes, TWSE Corporate Governance 100 Index, FTSE4Good TIP Taiwan ESG Index. 6. PCSC places a great deal of emphasis on the transparency and immediacy of information disclosure. It has been ranked among the top 5% in the Taiwan Corporate Governance Evaluation six years in a row. 7. PCSC discloses fnancial and business information as required by relevant laws and regulations and is working to strengthen transparency on an ongoing basis. The Company has also established an investor relations team to provide direct communication between PCSC and investors. 8. PCSC formulates strategies, procedures, and indicators and undertakes regular analysis and appraisal of changes in risk status, in accordance with relevant laws and regulations, policies, and market changes; the Company also takes appropriate measures to reduce the overall level of latent risk.	Compliant

2020 ANNUAL REPORT 31

Corporate Governance

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Variations (if any)
with the Corporate
Status
Governance Best
Practice Principles
Items Evaluated
for TWSE/GTSM
Listed Companies
Yes No Brief Explanation and reasons for
such discrepancies
According to the resolutions of the 20th meeting of the 12th Board (2020/7/30), the
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establishment of “Risk and Information Security Management Department” to coordinate and manage various types of risks, formulate risk management policies and management scope, plan future operation conditions, and strengthen information security management. Each department regularly inspects and identifies if risks or information security incidents exist, and completes the report after the risk and information security incidents have been identified. The annual implementation results report is carried out in the regular CSR meeting and is regularly reported to the board of directors every year. 9. PCSC complies with the Labor Act and revises work regulations in a timely manner and uses emails and the Company’s internal webpage to inform employees of their relevant rights. 10. PCSC will continue to comply with all laws and regulations governing corporate governance. We will also review corporate governance developments in Taiwan and abroad in our effort to continually improve in this area. 11. PCSC subsidiaries also follow these guidelines to gradually improve corporate governance. 12. According to Article 32 of PCSC’s Articles of Incorporation, if the current year’s profit situation (pre-tax profits prior to deduction of employee compensation and director remuneration) is deducted by accumulated deficit, no more than 2% of said surplus shall be distributed as director remuneration. Reasonable compensation has been assessed and given to directors based on PCSC’s operational achievements, continuous educations, engagement of business sustainability, and the director’s respective contribution to the Company which includes financial KPIs such as company’s profitability. In addition to PCSC’s overall performance, remuneration is based on the performance of individual directors and their contributions to PCSC. Relevant performance and reasonableness of remuneration are to be assessed by PCSC’s remuneration committee and the Board of Directors. The remuneration system is to be reviewed and adjusted as necessary based on actual operational status and relevant regulations as PCSC seeks to realize sustained operations and risk management.

Please explain improvements that have been made as well as priorities to improve the results of the Corporate Governance Evaluation issued by the Taiwan Stock Exchange Corporate Governance Center:
Improvements made: According to the results of the latest (sixth) Corporate Governance Evaluation, the Company has made major improvements which are explained below:
(1) The Company has established a functional CSR Committee directly responsible to the Board and incorporated independent directors to serves as committee members.
(2) The Company has increased disclosure of the content of the concrete management proposal for its convenience store human rights policies
(3) The Company has disclosed the contact details for stakeholders and will report the status of communication with each of its stakeholders with the Board of Directors every year.
(4) The Company has increased disclosure of its information security policies and its concrete management proposal.
(5) The Company has incorporated climate change issues directly into its risk management procedures.
(6) The Board has passed the Board’s performance evaluation method. Starting from 2020, the Board of directors (including functional committee members such as audit, remuneration and CSR) will conduct self or peer evaluations, and complete the declaration of performance evaluation results before the end of the first quarter of the following year.
Priorities and measures for improvement: In response to revisions to the seventh Corporate Governance Evaluation objectives, items that PCSC has made for improvement are explained below:
(1) The Company established the “Risk and Information Security Management Office” under the CSR Committee and adopted the “7-ELEVEN Risk Management Policy” as the highest guiding principle of the company’ risk management.
(2) The Company has had an intellectual property management plan since 2020, and regularly reports related intellectual property matters to the board of directors. (3) The Company will introduce the plan to obtain Taiwan Intellectual Property Management System (TIPS) and ISO50001 Energy Management System certification from the Energy Bureau of the Ministry of Economic Affairs.
(4) The Company will evaluate potential risks and opportunities of climate change, and will evaluate taking countermeasures for climate change related issues.
1. PCSC will continue to evaluate the feasibility of future improvement on other items.

32 2020 ANNUAL REPORT

Corporate Governance

Note 1: Director Diversity

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Item 1 2 3 4 5 6 7 8 9 10
Industrial Experiences
Director Gender BackgroundAcademic Operational judgement [Administration] Accounting,Finance or Law EconomicsBusiness and ManagementCrisis Everyday Use Articles of Food and InvestmentFinance/ ProductionFood/ Information /Technology Biotechnology/R&D Catering/Hotel perspectivesInternational Markets Leadership [Decision-] making
Name Retail
Business
Lo, Chih-Hsien Male V V V V V V V V V V V V V V
Administration
Kao, Shiow-
Female Business V V V V V V V V V V V V
Ling
Chen, Jui-
Male Economics V V V V V V V V V V V V
Tang
Marketing
Huang, Jui- Male and retail V V V V V V V V V V V V V
Tien
management
Wu, Liang-Feng Male Japanese V V V V V V V V V V V
Su, Tsung- Male Business V V V V V V V V V V V V V
Ming Administration
Huang, Jau- Male Business V V V V V V V V V V
Kai
Business
Wu, Kun-Lin Male V V V V V V V V V V
Administration
Finance and
Wu, Tsung-Pin Male Accounting V V V V V V V V V V V V V
Finance and
Wu, Wen-Chi Female V V V V V V V V V V V
Accounting
Wang, Wen- Male Law V V V V V V V V
Yeu
Business
Shu, Pei-Gi Male V V V V V V V V
Administration
Hung, Yung- Male Information V V V V V V V V V
Chen management
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Note 2: External Auditor Independence Evaluation Standards

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Complies with
Item Evaluated Evaluation Finding
Independence
1. Does the external auditor have direct or material indirect financial interest in PCSC? No Yes
2. Does the external auditor have loans or guarantees with PCSC or PCSC directors? No Yes
3. Does the external auditor have a close business relationship or a potential employment relationship with PCSC? No Yes
4. Could the external auditor be affected by the loss of PCSC as a client? No Yes
5. Does the external auditor have a contingent fee arrangement relating to an audit engagement with PCSC? No Yes
6. Has the external auditor or a member of the audit team been a director, a manager of PCSC or been employed by PCSC within the
No Yes
last two years in a position to exert signifcant infuence over the subject matter of the engagement?
7. Does the external auditor provide any non-audit services which if performed for PCSC would affect directly a material item of the
No Yes
audit engagement?
8. Does the external auditor promote or broker shares for PCSC or other securities issued by PCSC? No Yes
9. Does the external auditor serve as an advocate or representative for PCSC with third parties in the event of conflict? No Yes
10. Does the external auditor have family ties with anyone who is a director, manager, or officer of with PCSC or any personnel who is in No Yes
a position to exert signifcant infuence over the subject matter of the engagement?
11. Has anyone in PCSC worked with the external auditor and within the last year of disassociating from the firm joined PCSC as a No Yes
director, manager, or offcer or another key position that can exert signifcant infuence over the subject matter of the engagement?
12. Has the external auditor accepted gifts or preferential treatment from a director or manager of PCSC? No Yes
13. Has the external auditor been coerced by PCSC management to accept inappropriate decisions regarding its accounting policies or
No Yes
inappropriate disclosures regarding its fnancial reports?
14. Has PCSC applied pressure or inappropriately reduced the amount of audit work given to the external auditor? No Yes
15. Has the external auditor provided seven consecutive years of auditing service to PCSC? No Yes
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2020 ANNUAL REPORT 33

Corporate Governance

2020 Director Continuing Education

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Name Date(s) Organizer Course Name Time
Lo, Chih-Hsien, Kao, Shiow-Ling,
Chen, Jui-Tang, Huang, Jui-Tien,
Huang, Jau-Kai, Su, Tsung-Ming, 07/24 Taiwan Institute of Directors Group Governance and Performance Management 3 hours
Wu, Kun-Lin, Wu, Tsung-Pin,
Wu, Wen-Chi, Shu, Pei-Gi
Lo, Chih-Hsien, Kao, Shiow-Ling,
Chen, Jui-Tang, Huang, Jui-Tien,
Huang, Jau-Kai, Su, Tsung-Ming,
10/23 Taiwan Institute of Directors Seize Future Key Talents 3 hours
Wu, Kun-Lin, Wu, Tsung-Pin,
Wu, Wen-Chi, Shu, Pei-Gi,
Hung, Yung-Chen
Lo, Chih-Hsien, Kao, Shiow-Ling,
05/07 Taiwan Corporate Governance Association How Enterprises Prevent Corruption-Case Studies 3 hours
Wu, Tsung-Pin
Lo, Chih-Hsien, Kao, Shiow-Ling, The Board of Directors’ Response and Application of
08/11 Taiwan Corporate Governance Association 3 hours
Wu, Tsung-Pin Corporate Governance Evaluation
Su, Tsung-Ming, Hung, Yung-Chen 09/08 Taiwan Corporate Governance Association Competition for Management Rights and Case Studies 3 hours
Wu, Liang-Feng 07/28 Taiwan Institute of Directors Enterprise Transformation in the Era of Change 3 hours
Opportunities and Challenges for Enterprises in the US-
Wu, Liang-Feng 10/29 Taiwan Institute of Directors China Trade Conflict 3 hours
Business Growth, Reorganization or Transformation and
Su, Tsung-Ming 07/15 Taiwan Independent Director Association 3 hours
Upgrading During the Epidemic
How Independent Directors Use Key Information to
Su, Tsung-Ming 07/21 Taiwan Independent Director Association 3 hours
Grasp Financial Report Risks and Case Studies
Corporate Governance and Corporate Sustainability
Su, Tsung-Ming 07/22 Taiwan Academy of Banking and Finance 3 hours
Workshop
The Role of Independent Directors Between Corporate
Su, Tsung-Ming 08/12 Taiwan Independent Director Association 3 hours
Governance and Competition of Management Rights
The Operational Practice of the Functional Committees
Su, Tsung-Ming 09/04 Taiwan Corporate Governance Association 3 hours
of the Board
Corporate Governance Case Study-Corporate Culture
Su, Tsung-Ming 09/11 Taiwan Corporate Governance Association 3 hours
and Shareholder Activism
The Role of Institutional Investors in Improving Corporate
Su, Tsung-Ming 09/18 Taiwan Corporate Governance Association 3 hours
Governance
A Complete Guide to Information Security for Directors
Wang, Wen-Yeu 06/30 Computer Audit Association 3 hours
and Supervisors
The Impact of Emerging Risks on Directors and
Wang, Wen-Yeu 08/04 Taiwan Corporate Governance Association 3 hours
Supervisors
Challenges and Countermeasures of Information
Hung, Yung-Chen 10/23 Taiwan Corporate Governance Association 3 hours
Security
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34 2020 ANNUAL REPORT

Corporate Governance

(5) Composition, responsibilities, and operation of the Remuneration Committee:

1. Remuneration Committee members

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Has over 5 years of work experience and the below
professional qualifications Independence Ranking (Note 1)
Number of
Holds the position
Holds a license, Remuneration
Item of lecturer (or Work
obtained Committee
above) at public experience
Position through national memberships Remarks
Name or private college in business,
examination, for the held in
or university in law, finance, 1 2 3 4 5 6 7 8 9 10
position of judge, other public
business, law, accounting
district attorney, companies
finance, accounting or company
lawyer, accountant,
or company operations
or similar
operations
Independent Director Wang, Wen-Yeu             3 —
Independent Shu, Pei-Gi             — —
Director
Independent Director Hung, Yung-Chen              — —
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Note 1: Compensation Committee Members, during the two years before being elected or during the term of office, meet any of the following situations, please tick the appropriate corresponding boxes:

(1) Not an employee of the company or any of its affiliates;
(2) Not a director or supervisor of the company or any of its affiliates.;
(3) Not a natural-person shareholder who holds shares, together with those held by the person’s spouse, minor children, or held by the person under others’ names, in an aggregate amount of one percent or more of the total number of issued shares of the company or ranks as one of its top ten shareholders;
(4) Not a spouse, relative within the second degree of kinship, or lineal relative within the third degree of kinship, of any of the officer in the preceding 1 subparagraph, or of any of the above persons in the preceding subparagraphs 2 and 3;
(5) Not a director, supervisor, or employee of a corporate/institutional shareholder that directly holds five percent or more of the total number of issued shares of the company, ranks as of its top five shareholders, or has representative director(s) serving on the company’s board based on Article 27 of the Company Law.
(6) Not a director, supervisor, or employee of a company of which the majority of board seats or voting shares is controlled by a company that also controls the same of the company;

(7) Not a director, supervisor, or employee of a company of which the chairman or CEO (or equivalent) themselves or their spouse also serve as the company’s chairman or CEO (or equivalent);

(8) Not a director, supervisor, officer, or shareholder holding five percent or more of the shares of a specified company or institution that has a financial or business relationship with the company;

(9) Other than serving as a compensation committee member of the company, not a professional individual who, or an owner, partner, director, supervisor, or officer of a sole proprietorship, partnership, company, or institution that, provides commercial, legal, financial, accounting services or consultation to the company or to any affiliate of the company, or a spouse thereof, and the service provided is an “audit service” or a “non-audit service which total compensation within the recent two years exceeds NTD500,000”;

(10) Not been a person of any conditions defined in Article 30 of the Company Law.

Operations of the Remuneration Committee
(1) PCSC’s Remuneration Committee is composed of three members.
(2) The term of office for current members runs from June 20, 2018 through June 11, 2021. As of publication of the Annual Report, there had been a total of 4 (A) meetings of the Remuneration Committee over the past fiscal year. Member attendance is detailed below:

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Title Name Meetings Attended Personally (B) Meetings Attended by Proxy Personal Attendance Rate (B/A) Remarks
Convener Wang, Wen-Yeu 3 1 75% —
Member Shu, Pei-Gi 4 0 100 —
Member Hung, Yung-Chen 4 0 100 —
Other issues to be noted:
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If the Board does not adopt or amends a Remuneration Committee proposal, the Board meeting date, session, content of the resolution, result of the Board vote, and the Company's response to the Remuneration Committee's opinion shall be properly recorded (for example, if the remuneration package approved by the Board is superior to that suggested by the Remuneration Committee, the difference and reasons must be noted).
[Further explanation] There has not been any instance of the Board rejecting or amending a remuneration Committee proposal. Also, there have not been any recorded instances of Remuneration Committee members opposing or retaining opinion on any decision by the Board.
Should a committee member oppose or retain their opinion regarding any decision made by the Remuneration Committee and their opinion has been recorded or submitted in a written statement, the committee meeting date, session, content of the resolution, opinions of all members, and the response to the opinions shall be recorded.
[Further explanation] PCSC has not had a case in which a member of the Remuneration Committee recorded or submitted a written statement in opposition or retaining opinion on a resolution decided upon by the committee.
Remuneration Committee functions and powers:
(1) Draw up and regularly review the performance evaluations for directors and managers and remuneration policies, system, standards, and structure. (2) Regularly evaluate and stipulate remuneration for directors and managers.

2020 ANNUAL REPORT 35

Corporate Governance

(6) Implementation of Corporate Social Responsibility

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Variations (if any) with
Status the Corporate Social
Responsibility Best
Items Evaluated Practice Principles for
TWSE/GTSM Listed
Yes No Brief Explanation Companies and reasons
for such discrepancies
1. Has PCSC conducted risk V 1. By using questionnaires every two years, PCSC abides by the Company’s five principles, Compliant
evaluations on environmental, the context of sustainability, the materiality principle, completeness, and stakeholder
social, and corporate inclusion, establishing a systematic and standardized materiality assessment process to
governance issues related to evaluate how much issues that our main stakeholders are concerned with influence the
company operations based on economy, environment, and society.
the materiality principle? 2. To control and respond to risks, PCSC has included the entire group organization and
subsidiaries in the system and the Board of Directors, managers and employees at all levels
to participate in and promote the implementation. In addition to complying with relevant laws
and regulations, we also actively identify, analyze, measure, monitor, respond to, report,
and improve potential risks that appear in various operational activities based on their risk
characteristics and degree of impact.(Note 1)
3. The Board of directors is the highest decision-making unit for risk management, and
in accordance with business strategies and environmental changes, it approves risk
management policies and structures to ensure the effectiveness of risk management. In
July 2020, the Board of directors of PCSC decided to establish a “Risk and Information
Security Management Office” under the CSR Committee, and passed the “7-ELEVEN Risk
Management Policy” as the highest guiding principle of the Company’s risk management.
Note 1: ESG risk assessment and management policy.
ESG Topic Risk Type Implementation of risk management
Environmental Climate risks PCSC has integrated our climate risk management into the extant risk management framework, in which each department identify climate risks,
including transitional risks from pertinent laws and regulations as well as physical risks, such as increases in the seriousness of extreme weather
events and dramatic changes in weather patterns and proposes countermeasures based on their functions.
Social Food safety risk PCSC invest each year to ensure rigorous quality control is maintained. From production to stores, we are continually setting up rigorous food
safety protection networks for our consumers:
1. Establishing the Merchandise Safety Committee and holding regular meetings to review contract manufacturers and supplier and
implementation progress.
2. Establishing the Product Safety Information Collection and Inventory Tracking Operational Standards and setting up inventory and tracking
procedures to ensure the safety of Company products.
3. Using measures like contractual cooperation, production site management, ingredient tracing mechanisms and systems, supplier grading,
management and on-site assessment system, distribution centers and periodic store checks, as well as occasional sampling of raw materials
and finished products, to stay on top of the entire supply chain from production to store.
Risks related to Our major area of operations is the region of Taiwan. Convenience stores and logistics services, the important parts of our business, are both
demographic labor intensive. Taiwan has been faced with such issues as an acceleration in the aging of the population, and a declining birthrate. Thus, we
structure consider the decrease in the labor force to be a risk for us. Countermeasures:
changes 1. Continuing to keep tabs on changing trends in consumer groups and develop products needed by senior consumers to take advantage of
related business opportunities.
2. Hiring re-employed women, middle-aged and senior workers.
3. Taking advantage of technological developments, such as AI, and optimize business structure and processes, and human resource allocation
at stores to increase efficiency and lower personnel costs.
Corporate Market risks PCSC has an inter-division Regulation Identification Committee and periodically holds "Regulation Identification Meetings “to keep abreast of
Governance the newest changes to laws and regulations so as to be able to adopt appropriate countermeasures. Additionally, each unit's supervisors also
establish a "Crisis Management Team" to effectively control and manage any potential or current market risk or crisis.
2. Has PCSC designated V In order to implement and manage CSR, PCSC established an interdepartmental CSR Compliant
personnel to implement Committee, which is a functional committee directly responsible to the Board, and has been
corporate social responsibility promoting CSR concepts in concrete ways for many years. It is composed of six members,
policy with senior management three are upper-level PCSC managers and three are independent directors. The committee
authorized by the Board of is responsible for proposing and implementing concrete plans related to CSR policies and
Directors to manage them and reporting the status on a regular basis. It is to convene a minimum of two times each year. It
do they give status reports to also reports achievements of the current year and future plans to the Board of Directors once
the Board of Directors? a year.
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36 2020 ANNUAL REPORT

Corporate Governance

Items Evaluated	Status	Status	Status	Variations (if any) with the Corporate Social Responsibility Best Practice Principles for TWSE/GTSM Listed Companies and reasons for such discrepancies
	Yes	No	Brief Explanation
3. Environmental Topic
(1) Has PCSC established an environmental management system that is specifcally designed with PCSC operations in mind?	V		PCSC is committed to reducing our carbon footprint and emissions of greenhouse gasses to ensure a better living environment for the nation. For instance, PCSC has set the annual electricity intensity (EUI kWh/m2a) in 2020 to be reduced by 1% compared with 2019, and entrusted SGS to conduct an annual ISO14064-1 greenhouse gas inventory and set reduction targets.	Compliant
(2) Has PCSC endeavored to make more effcient use of resources and use renewable materials that have a lower impact on the environment?	V		PCSC continues to introduce concrete energy conservation plans in our stores. Energy saving measures, such as proper insulation, energy-effcient lighted signs, fewer light fxtures, utilizing inverter systems, outdoor energy conservation, indoor lighting management, and LED fxtures, are incorporated in every new store design. Existing stores focus on phasing out ineffcient equipment and investing in energy effcient options. In 2020, our stores have adopted acrylic signboards, shortened the length of signboards and reduced the order of magnitude of signboard lamps, switched to LED lamps, and conducted counseling improvement on electricity consumption in high-electricity stores. Compare with the electricity consumption of 4,902 stores in 2020 and the same period in 2019, 6.59 million kilowatt- hours of electricity would be reduced. In addition, PCSC introduces “store energy-saving self- inspection operation” to ensure the equipment maintains high effciencyoperation.	Compliant
(3) Does PCSC evaluate potential risks and opportunities of climate change for the Company now and in the future, and make countermeasures to issues related to climate change?	V		PCSC continues to focus on energy saving and carbon reduction issues and has established an energy policy to optimize its energy management structure. Since 2005, PCSC has performed annual greenhouse gas inventories, energy managements based on the spirit of ISO50001, promoted energy-saving measures for its headquarters and stores, improved energy efficiency of equipment, as well as educated and trained employees to enhance energy-saving awareness. In addition, PCSC takes advantage of its distribution system and the fact that its stores are open 24/7 to help disseminate disaster notifications and early warning information. In response to disasters related to climate change, PCSC has deployed a weather information distribution system, enhanced the training of store personnel, teaching them how to respond to typhoons and floods, and established construction standards for waterproof gates and low walls in low-lying areas to enhance the ability of the stores and the nearbycommunities to deal with climate change.	Compliant
(4) Did PCSC calculate greenhouse gas emissions, water use and total weight of waste in the past two years and did it establish policies for saving energy, reduction carbon, reduction of water use, as well as waste management?	V		1.PCSC is committed to environmental protection issues. The largest source of the Company’s greenhouse gas emissions is the electricity consumption of our stores. Electricity consumption is linked to store size, equipment used, and business types and is eventually reflected in operating income, therefore, we calculate emission intensity per million New Taiwan dollars in turnover as a quantitative indicator for overall medium and long-term reduction targets. In addition, PCSC continues to analyze store water consumption patterns and introduce water-saving equipment to reduce water consumption at the stores. Since 2018, PCSC has surveyed stores served by the waste removal company hired by the Company. The total weight of waste is estimated based on information provided by the waste removal company on the total weight of waste each month and the correlation between types of operation activities and waste at the store side. These serve as a basis for setting reduction targets. In addition to our stores, PCSC has set up saving goals and performance indicators for electricity and paper at headquarters. Using goal management and enhanced publicity, PCSC has actively worked to save on water and electricity. 2. Please refer to chapter 6 and the appendix of the latest PCSC CSR Report for detailed descriptions of the Company’s greenhouse gas emissions, water consumption, and the total weight of waste in the past two years and our reduction goals. We will continue to review and follow up on the various stats to serve as a basis for reduction performance and progress towards thegoals for the medium and long-term reduction.	Compliant

2020 ANNUAL REPORT 37

Corporate Governance

Items Evaluated	Status	Status	Status	Variations (if any) with the Corporate Social Responsibility Best Practice Principles for TWSE/GTSM Listed Companies and reasons for such discrepancies
	Yes	No	Brief Explanation
4. Social Topic
(1) Has PCSC established management policies and procedures in accordance with relevant laws and regulations and international human rights conventions?	V		PCSC consulted such international human rights conventions as the “International Human Rights Law”, “Core Labor Standards, Fundamental ILO Conventions”, and “Ten Principles of the United Nations Global Compact” when formulating its human rights policies. Our seven major policies are to provide a friendly and safe work environment; eliminate forced labor; abolish child labor; eradicate discrimination to ensure equal opportunity to work, access to training and benefits, rewards, and advancement; freedom from workplace violence, sexual harassment, and coercion, treating employees with dignity; support the physical and psychological well-being of employees; ensure a balance between work and personal life; establish diverse channels of communication, and a grievance mechanism to ensure the rights and interests of stakeholders. Specific management and implementation plans include, regular annual reviews of occupational safety and health as well as labor conditions; employing comprehensive internal and external training channels to give employees inter- company and interdisciplinary work rotation experience as well as important positions and challenges to cultivate outstanding talents; hold annual health check-ups and implement health promotion campaigns based on the data analysis fndings of health exams over the years to enhance the employee health index; and PCSC has a variety of communication channels available in its auditing offce, joint service center, and in the stakeholder area on its offcial website. In addition, it also has a comprehensive system and mechanism to ensure that feedback and suggestions are actuallyhandled.	Compliant
(2) Does PCSC have and implement employee welfare measures, including bonuses, holidays, and other benefts, and is its operational performance and achievements refected in their pay?	V		1. Comprehensive employee benefts: (1) In accordance with the Offcial Letter Taipei City Social II No. 58459 of the Department of Social Welfare, PCSC established the Employee Beneft Committee on December 21, 1987. Members of the Committee are jointly elected by both labor and management. The Committee regularly hosts a variety of activities, organizes health check-ups for employees, and provides other benefts, such as subsidies for in-service education programs. (2) The PCSC beneft scheme includes PCSC benefts, trips for senior employees, health examinations, employee stock ownership plans, club subsidies, discount purchasing, wedding and funeral allowances, paid maternity and paternity leave, group insurance, employee travel allowance, and other benefts provided by Employee Benefts Committee to meet employee needs. 2. Comprehensive rewards system: PCSC gives employees annual bonuses based on the Company’s net proft and gross proft growth to encourage them to stay and grow with the Company.	Compliant
(3) Does PCSC provide employees with a safe and healthy work environment and regularly implement safety and health education programs for employees?	V		1. PCSC provides employees with comprehensive education and training programs and works to realize our objectives of showing human care and improving their physical and mental health, focusing on the wide-ranging implementation of our Health Management Program to help employees care for their own health. The Company has engaged specialized nurse practitioners and works with doctors specializing in workplace health services to provide health consultation services. To promote employee health education, in addition to boasting a Healthy Life Circle APP for employees, issuing regular e-newsletters, and holding lectures to promote health, PCSC encourages employees to manage their personal health and create a healthy, harmonious, and safe work environment. 2. In accordance with revisions to the Occupational Safety and Health Act, PCSC launched programs for maternal protection, ergonomics hazard prevention, unlawful mental or physical harassment prevention, and a physical and psychological overload prevention program.	Compliant

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Variations (if any) with
Status the Corporate Social
Responsibility Best
Items Evaluated Practice Principles for
TWSE/GTSM Listed
Yes No Brief Explanation Companies and reasons
for such discrepancies
(4) Has PCSC established V PCSC attaches a great deal of importance to personnel training. We help our employees Compliant
an effective career skills be all that they can be through job rotation, working in different positions and in different
development training organizations within our Company, giving them important jobs and challenges, and by
program for employees? broadening their horizons.
1. Since it set up an employee career development path and management mechanism
in 2016, PCSC has reviewed the succession candidates of all positions every year. In
2020, we continued to build key talent pools of different units and assign supervisors and
commissioners to different units for training. The annual selection and construction of
rotation/promotion talent pools are based on different ranks and functional fields in order to
implement cross-company/cross-task rotation, expand employees’ horizons, and cultivate
future executive talents at all levels.
2. In accordance with the Company’s core values, PCSC has clearly outlined a training
program to equip employees with the skills and standards required for positions throughout
the organization. Managers and employees can enhance their abilities to help them achieve
their career goals by participating in internal or external training courses. PCSC organized
20 classes on 360-degree report analysis in 2018, four classes in 2019, and one class in
2020 due to the epidemic prevention policy that put the focus on employee growth and
learning, helping managers learn how to assist employees enhance their skill levels and
work planning. For some key employees, PCSC mapped out a program of training and
development to help them reach their ideal positions within the Company.
3. PCSC also encourages employees to pursue self-enrichment in their spare time to
strengthen their foundation and professional knowledge through scholarships for outside
training and foreign language cources.
(5) Does PCSC’s product and V The Company’s food safety policies focus on operations, food traceability, and gaining Compliant
service marketing and customer recognition. The packaging designs for PCSC’s own-brand products have all
labeling adhere to relevant passed the packaging inspection process, and the labeling and advertising have been further
laws and regulations and checked and approved by the Company’s Supplier Management, Quality Assurance, and
international standards Legal Departments to ensure they conform to laws and guidelines set forth by regulating
as well as the laws and authorities. PCSC has established the Integrated Services Call Center and stakeholder’s
regulations related to mail box to serve as a communication channel that consumers can use to ensure that their
customer health and safety suggestions or concerns are handled satisfactorily. Internally, the Company also has operating
and personal information measures for handling product suggestions made by customers to ensure that they are
and has it established handled satisfactorily.
policies and grievance
procedures to protect
consumer protection rights?
(6) Has the Company V To determine whether suppliers are legally established, the quality of their products, how Compliant
established supplier well they cooperate with inspections, and whether they adhere to laws and regulations and
management that requires PCSC’s standards, we have established a section in our internal control regulations dedicated
that suppliers adhere to product safety management. Suppliers and OEM factories that produce PCSC’s own-
to regulations dealing brand products have a greater impact on PCSC’s operations and brand name, so we have
with such issues as the set up different management measures for them based on their different characteristics,
environment, workplace clearly requiring that the product production, packaging, inspection, and evaluation processes
safety and health, worker are all carried out in accordance with specific standards. PCSC holds spot checks of raw
rights and, if so, what is the materials suppliers and OEM factories and employs hierarchical supplier management,
status of implementation? giving them different classifications based on their evaluation scores. Items evaluated include
food safety, product safety, environmental safety, workplace safety, and corporate social
responsibility issues. In 2020, 204 spot checks were carried out on raw materials suppliers
and they all passed. We also carried out 105 spot checks of suppliers and OEM factories that
produce PCSC’s own-brand products. Only one did not pass but passed after re-evaluation.
In addition, our Internal Audit Office holds spot checks at raw material suppliers and OEM
factories to create a rigorous food safety net for consumers.
In addition to supplier management regulations and evaluation system, PCSC has also set up
the “Code of Conduct for PCSC and Subsidiary Subcontractors”, requiring all suppliers to sign
“Ethical Corporate Management and Corporate Social Responsibility Agreements”, to which
have been incorporated five major standards, including worker, health, environmental safety,
ethics, and fairness. PCSC also regularly carries out supplier education and training dedicated
to helping suppliers realize ethical corporate management and corporate social responsibility
and set up management systems for them.
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Items Evaluated	Status	Status	Status	Variations (if any) with the Corporate Social Responsibility Best Practice Principles for TWSE/GTSM Listed Companies and reasons for such discrepancies
	Yes	No	Brief Explanation

5. Does the Company follow international recognized reporting criteria or guides when disclosing non-financial Corporate Social Responsibility reports? Did it obtain assurance or verification statements from third-party certification bodies for previously disclosed reports?	V		PCSC issues and discloses its CSR Report annually on the Company website. The 2019 CSR Report was in accordance with the core options of the 2016 version GRI standards of Global Reporting Initiative. SGS Taiwan was entrusted with the task of verifying that the information in the CSR report meets the requirements of the AA1000 Type Two High Level. For the specifc Subject Matter Information, we engaged PricewaterhouseCoopers (PwC) Taiwan in limited assurance to draft this report in accordance with the Republic of China Standard on Assurance Engagements Bulletin No. 1 Assurance Engagement Other than Audits or Reviews of Historical Financial Information. The third-party independent verification report was released after being submitted to the Board of Director’s CSR Committee for review.	Compliant
6. If PCSC has drawn up a code for CSR based on the Corporate Social Responsibility Best Practice Principles for TWSE/GTSM Listed Companies, please describe any differences between said code and the Best Practice Principles: In accordance with the Corporate Social Responsibility Best Practice Principles for TWSE/ GTSM Listed Companies, PCSC drew up the Rules for the Practice of Corporate Social Responsibility which we adhere to. It governs implementation of corporate governance, development of sustainable operations, protection of public welfare, strengthening of CSR information disclosure, and protection of stakeholder rights and interests. PCSC employees follow these regulations to manage Companyrisks and impacts on the economy,environment,and society.
7. Other important information for facilitating the understanding of CSR and its implementation: (1) The Company is committed to the safety of our products. In 2020, we invested NT$125,268,000 to enhance food safety management of the raw materials and we continued to ensure food safety through such activities as giving guidance and checking our OEM and suppliers and product inspection. (2) To respond to the issue of food safety, PCSC formulated the Product Safety Information Gathering and Inventory Tracking Operating Procedures to strengthen crisis management capabilities and perform self-reviews of potential major product safety incidents and related regulations to prevent latent food safety risks. (3) The PCSC quality assurance laboratory has been certifed by the TFDA for seven testing areas (microorganism counts, coliform bacteria, E. coli, Salmonella, Listeria monocytogenes, eight colorants, Ochratoxin A, Patulin, and testing for residues of 48 veterinary drugs) and TAF certifcation for four testing areas. In 2012, PCSC received TAF Certifcation for the frst time, and received TFDA Certifcation in 2014. The validity period is three years. We have continued to pass extension applications for accreditation, once again recognizing the management quality of our laboratories. In 2020, the quality assurance laboratory performed testing on over 800 raw materials and products to maintain strict control on the safety of food products.

(4) To deal with changes in laws and regulations, PCSC took it upon itself to make adjustments to the items in its product inspection standards so that they comply with the requirements of laws and regulations. PCSC has optimized the own-brand product raw material management system to strengthen traceability management of raw materials.
(5) PCSC has optimized fresh food product ingredient labeling simplification and allergen labeling standards that meet with government standards and allow consumers to more easily determine food product ingredients and potential allergens.
(6) In order to realize our “Franchise Utopia”, PCSC has established a comprehensive franchise system, paying particular attention to responding to questions posed by franchisees and solving problems as quickly as possible. On 6 June 2016, PCSC set up a “franchisee question and complaint hotline”. Franchisee issues are dealt with as special projects and follow-ups made to determine how the solutions are progressing. This has served to enhance franchisee confidence and satisfaction.
(7) ISO14001 is not applicable to PCSC, because it is not in the manufacturing industry.
(8) Please refer to the Corporate Social Responsibility section on the PCSC website for more information at https://www.7-11.com.tw/company/csr.asp

40 2020 ANNUAL REPORT

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(7) Ethical corporate management at PCSC and related implementation:

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Variations (if any) with
the Ethical Corporate
Status
Management Best
Practice Principles
Items Evaluated
and Policies for TWSE/
GTSM Listed Companies
Yes No Brief Explanation and reasons for such
discrepancies
1. Establishment of ethical operation policies and programs
(1) Does PCSC have V In order to establish a sound corporate management system, PCSC considered regulations Compliant
ethical operation policies set forth in the Corporate Governance Best Practice Principles for TWSE/GTSM Listed
established by the Board, Companies coproduced by TWSE and GTSM and passed the Ethical Corporate Management
and do PCSC’s Articles of Beest Practice Principles at the meeting of the Board on December 19, 2014. On August
Incorporation and external 4, 2015, the Board passed revisions to the Best Practice Principles and established Ethical
documents explicitly Corporate Management Operating Procedures and Code of Conduct. On July 30, 2020, the
expressing its ethical Board passed the revision of the Ethical Corporate Management Best Practice Principles and
policies and methods Policies, Ethical Corporate Management Operating Procedures to serve as a guidance for
and are the Board and directors, managers, employees, fiduciaries, and substantive controllers. For more information
management dedicated to regarding our ethical management principles, please go to the Company website or Taiwan
the active implementation Stock Exchange Market Observation Post System.
of these commitments?
(2) Did PCSC establish an V PCSC formulated the Procedures for Ethical Management and Guidelines for Conduct, Compliant
evaluation system to Standards Governing Awards and Discipline, Ethical Corporate Management Best Practice
evaluate risks of unethical Principles and Policies, and Ethical Corporate Management Operating Procedures and Code
behavior and regularly of Conduct to prevent unethical behavior. Sales personnel who contact outside firms are
analyze and evaluate regularly rotated in order to prevent bribery. PCSC has also set up an Audit Reporting Line at
operations that have higher 02-2747-8032 to effectively prevent corruption.
risk of unethical behavior
and did the Company
implement preventative
measures for each Item
under Clause 2, Article 7
of the Ethical Corporate
Management Best Practice
Principles and Policies for
Listed Companies?
(3) Do PCSC’s unethical V PCSC formulated the Procedures for Ethical Management and Guidelines for Conduct, Compliant
conduct prevention Standards Governing Awards and Discipline, Ethical Corporate Management Best Practice
programs clearly specify Principles and Policies, and Ethical Corporate Management Operating Procedures and
relevant procedures, Code of Conduct to prevent unethical behavior. Disciplinary action and complaints against
conduct guidelines, as well employees that violate the code of conduct are carried out in accordance with the system set
as a discipline and appeals up by the Company for that express purpose.
system for rule violations,
and are they regularly
reviewed and amended?
2. Implementing ethical corporate management
(1) Does PCSC evaluate V To ensure that both parties to any transaction act in an ethical manner, to protect their Compliant
the ethical records of the common interests, PCSC has created an ethical corporate management provision (or
businesses with which it has agreement) that is part of every contract. Any request for an improper benefit by a Company
dealings and include clear employee or supplier must immediately be reported orally or in writing to the PCSC
ethical corporate behavior Internal Audit Office. All contracts between PCSC’s marketing, procurement, or shopping
provisions in contracts with center divisions and outside entities now incorporate articles regarding ethical corporate
such counterparties? management.
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Items Evaluated	Status	Status	Status	Variations (if any) with the Ethical Corporate Management Best Practice Principles and Policies for TWSE/ GTSM Listed Companies and reasons for such discrepancies
	Yes	No	Brief Explanation
(2) Has PCSC established an organization under the direct jurisdiction of the Board of Directors that promotes ethical management principles and also reports to the Board regarding the implementation of these principles at least once a year?	V		In August 2015, PCSC established the interdepartmental Ethical Operations Team to strengthen the implementation of ethical corporate management. The Ethical Operations Team is composed of personnel from the Integrated Services Center, Board Secretary, business planning, finance, marketing, human resources, legal, operational planning, and audit divisions and is under the direct jurisdiction of the Board of Directors and the project manager in the President’s Offce serves as chairperson. The Team formulates and promotes best practice principles and reports annually to the Board regarding the implementation of these principles.	Compliant
(3) Has PCSC formulated and implemented policies to prevent conficts of interest and provide appropriate ways to record any potential conficts found?	V		1. PCSC’s Board of Directors Meeting Procedures state that if a director or the company he/ she represents has a confict of interest with any of the matters under discussion by the Board, he/she is to explain the important points regarding the interests during the Board meeting. If any of the matters could negatively affect PCSC, he/she is to be barred from the discussion and vote on the proposal. The director shall recuse him or herself from the discussion and vote and may not act as proxy to vote on the resolution on behalf of another director. Should spouses, first or second-degree relatives or affiliated companies of the directors have interests with any of the matters under discussion by the Board, it shall be deemed that the directors have personal interests in the matter. 2. PCSC formulated the Ethical Corporate Management Best Practice Principles and Policies, Ethical Corporate Management Operating Procedures and Code of Conduct, Procedures for Ethical Management and Guidelines for Conduct, and Standards Governing Awards and Discipline to inform employee conduct. PCSC has also set up an Audit Reporting Line at 02-2747-8032.	Compliant
(4) Has PCSC implemented effective accounting and internal control systems and has the audit division established relevant audit plans based on the results of the unethical risk evaluations and did the audit division ensure that the plans are being complied with or has PCSC had independent accountants periodically review them?	V		1.In accordance with the law, PCSC established effective accounting and internal control systems and internal auditors routinely conduct compliance tests and employ a self-check system to ensure the effectiveness of internal control mechanisms. The audit reports are prepared and submitted to the Board for approval. 2.Since the Company is belongs to chain stores retail business which is highly related to store selling. In order to prevention of unethical cases, the Company particularly emphasizes the implement preventative measures under item 7, Clause 2, Article 7 of the Ethical Corporate Management Best Practice Principles and Policies for Listed Companies that “Damage directly or indirectly caused to the rights or interests, health, or safety of consumers or other stakeholders in the course of research and development, procurement, manufacture, provision, or sale of products and services.” As a result, The company conducts regular assessments to prevent unethical actions (such as store staff failed to implement on sales operation) and set up related prevention rules and actions for relevant divisions to follow.	Compliant

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Variations (if any) with
the Ethical Corporate
Status
Management Best
Practice Principles
Items Evaluated
and Policies for TWSE/
GTSM Listed Companies
Yes No Brief Explanation and reasons for such
discrepancies
(5) Does PCSC periodically V 1. The Company’s internal website features a Policy Promotion Area to educate employees Compliant
hold internal and external about regulations governing ethical corporate behavior. In 2015, PCSC established the
ethical corporate behavior Ethical Operations Case Team to promote related education among employees, and each
training? year, PCSC establishes a training theme.
2. In 2017, a course on “Logistics, Good Faith Management, and Personal Information
Protection” was incorporated into our new employee training. In 2020: 240 people; 120
hours.
3. In 2020, a course on adhering to the law focusing on “Trademark Rights and Management
Instructions”, “Business Secrets and Insider Trading”, “Personal Information”, and “Online
Course on Logistics Law” including:
(1) Online education for high-level managers on the rule of law, including “Trademark Rights
and Management Instructions”, “Business Secrets and Insider Trading”: 496 people;
1,488 hours.
(2) Personal Information Training Course series, Personal Information new employee
training 、 Personal Information Management Professional (external training): 11 people;
99 hours.
(3) Online education for support personnel on the rule of law:
A. 7-ELEVEN brand use:177 people; 177 hours.
B. A training class on general legal knowledge: 170 people; 170 hours.
C. Business Secrets:137 people; 68.5 hours.
D. Cases of Stores Violating Contracts: 185 people; 92.5 hours.
E. Zero Violence in Working Places: 30 people; 15 hours.
F. Office Hazard Prevention: 305 people; 152.5 hours.
G. How to prevent overwork: 2988 people; 1494 hours.
4. Enhancing business quality assurance education and training: PCSC has conducted
quarterly quality assurance-related courses promotion, and added “Quality Assurance Case
Promotion”, “Summer Quality Assurance Key Reminders” and “Food Hygiene Practices
Guidelines” as well as other courses to continue optimizing stores and safety hygiene and
store quality control to help maintain the health and safety of customers.
3. Operation of the Company’s Violation Reporting System
(1) Has PCSC established a V 1. Both PCSC’s Internal Audit Office and Integrated Services Center have set up exclusive Compliant
concrete violation reporting reporting hotlines. Stakeholders may also report any violations through the stakeholder
and rewards system, set section of our website. In addition, we also have a complete system and mechanisms to
up convenient reporting ensure stakeholder feedback is followed up properly. After a stakeholder sends their opinion
channels, and appointed by email through our website, their message is passed through the system directly to the
suitable personnel to handle responsible party, who is then required to update the status of the case within a specified
these cases? period of time. PCSC keeps track of the number of reports received each month and the
status of each case.
2. In 2020, 1,914 messages were received through the stakeholder feedback section of the
website.
3. The violation reporting and rewards system has been implemented in accordance with the
Standards Governing Awards and Discipline and Regulations Governing Product Safety
Protections as set forth by human resources and quality assurance divisions. The Awards
and Discipline Committee conducts deliberations according to these policies and the results
of its appraisals are published on the Company’s internal website.
(2) Has PCSC established an V PCSC has established an internal investigation SOP for violation reporting and a relevant Compliant
investigation an SOP for confidentiality mechanism. Information related to reported violations is only available to
violation reporting, follow- auditing personnel and their direct supervisors, while related documents are placed on file by
up measures, and relevant the audit supervisor. If follow-up investigations show any violations of Company regulations or
mechanisms to ensure Company’s losses, violators are to be disciplined in accordance with PCSC regulations and
confidentiality? correction are to be made.
(3) Does PCSC have any V PCSC has the duty to keep information about individuals who report violations confidential. Compliant
measures in place to protect Information about such individuals cannot be released without their prior consent to keep
individuals from possible them from being improperly punished or their personal information being exposed.
mistreatment arising from
reporting violations?
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Variations (if any) with
the Ethical Corporate
Status
Management Best
Practice Principles
Items Evaluated
and Policies for TWSE/
GTSM Listed Companies
Yes No Brief Explanation and reasons for such
discrepancies
4. Strengthening information V PCSC discloses our Ethical Corporate Management Best Practice Principles and Policies, Compliant
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Items Evaluated	Status	Status	Status	Variations (if any) with the Ethical Corporate Management Best Practice Principles and Policies for TWSE/ GTSM Listed Companies and reasons for such discrepancies
	Yes	No	Brief Explanation
4. Strengthening information	V		PCSC discloses our Ethical Corporate Management Best Practice Principles and Policies,	Compliant
disclosure Does PCSC disclose the content of its Best Practice Principles and its effectiveness on their website and the TWSE market observation post system?			operating procedures, and code of conduct on our investor relations website and TWSE Market Observation Post System.
5. If the Company has established a code of ethical corporate management based on the Ethical Corporate Management Best Practice Principles for TWSE/GTSM- Listed Companies, please discuss the specifcs of the code and implementation below: On December 19, 2014, PCSC established its Ethical Corporate Management Best Practice Principles as required by the Financial Supervisory Commission. On August 4, 2015, the Board passed revisions to the Best Practice Principles and established Ethical Corporate Management Operating Procedures and Code of Conduct. On July 30, 2020, the Board passed the revision of the Ethical Corporate Management Best Practice Principles and Policies and the Ethical Corporate Management Operating Procedures and Code of Conduct, implemented as written by the Ethical Operations Team. The Ethical Corporate Management Practice Team holds meetings on these issues on a regular basis(Due to the epidemic in 2020,it changed to written communication andpromotion).
6. Other information that will assist in the understanding of Company ethical corporate management practices: (such as reviewing and revision of the Company’s existing Ethical Corporate Management Best Practice Principles) In addition to operating according to PCSC’s Ethical Corporate Management Best Practice Principles and Policies, the Company has also established working rules, which clearly specify rights and obligations of both employers and employees, and the Procedures for Ethical Management and Guidelines for Conduct Bulletin that sets up standards for moral conduct, gender interaction, gift giving and meals, and behavior with outside frms. PCSC employees sign a convention of self- discipline in this regard. PCSC has also established a system that implements appropriate disciplinary measure in cases of rules violations. The ethical corporate management provision is now part of all contracts with outside parties and suppliers. In order to ensure ethical operations are implemented fully, we have also set up an internal control mechanism where internal auditors perform evaluations regarding adherence to related regulations. Our subsidiaries also follow these regulations to ensure operations are conducted ethically. External marketing and manufacturing trade contracts, external contracts with relevant units, and “Code of Conduct for Subcontractors” all include an ethical corporate management provision. In addition, to ensure the realization of ethical corporate management, PCSC has establish effective internal control system and internal auditors also carry out checks on a regular basis to determine ensure adherence. Company subsidiaries also follow Companystandards of ethical corporate management.

(8) Company procedures for processing material information:

Although the Company has not set up procedures regarding the processing of material information, in order to properly manage important internal information, PCSC has established the Operating Standards for Unscheduled Announcements and the 7-ELEVEN Spokesperson System to serve as standard procedures for directors, managers, and employees. These standards are posted on the Company’s internal website for employee reference. As required by law, the standards are reviewed annually and revised as necessary. Furthermore, as part of our internal control mechanism, PCSC has established management practices to prevent insider trading to eliminate the possibility that directors or employees will use internal information gleaned from their positions for their material benefit. In the future, these standards will meet all applicable regulations and laws.

(9) Status of internal control system implementation:

Internal Control Declaration: Please refer to page 89 of this report.
If PCSC has commissioned external auditors to review the company’s internal control system, the external auditor’s report should be disclosed: N/A
(10) During the most recent year and as of the date of publication of the Annual Report, any disciplinary measures taken against the Company or its internal staff due to violations of legal requirements or taken by the Company against its own staff due to violations of the internal control system. The details of the disciplinary measures, major faults, and improvement measures should be noted: Please refer to page 64 of this report.
(11) Major resolutions voted on at Shareholder, Board Meetings, the Audit Committee and Remuneration Committee during the most recent year and as of the date of publication of the Annual Report:
Major resolutions voted on in the Shareholders’ Meeting: (The following resolutions have been implemented) During 2020 and this year as of the date of publication of the Annual Report, one General Shareholders’ Meeting was held. The annual General Shareholders’ meeting was held on June 17, 2020. The resolutions below were approved at the meeting: ：

44 2020 ANNUAL REPORT

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(1) Approval of the financial report for 2019: Including business reports, financial statements, and distribution of profits. Result: Resolution passed. (2) Proposal on the distribution of 2019 profits: In 2019, the Company had distributable income amounting to NT$11,410,545,254. Result: Resolution passed and a cash dividend of NT$9.0 per share was paid out on September 9, 2020. (3) Amendments to the Rules of Procedure of the Company’s Shareholders’ Meeting: Cooperate with the revision of laws and regulations and meet the needs of practical operations. Result: The above resolution was approved by the Shareholders’ Meeting and implemented. (4) Resolution to Remove Non-Competition Restrictions for PCSC Directors. Result: The above resolution was approved by the Shareholders’ Meeting and implemented. 2. Major resolutions approved at Board Meetings: (Some applications for the renewal of credit limits from financial institutions are currently being implemented, while PCSC’s 2020 earnings and dividend distribution proposal must still be approved by the 2021 Shareholders’ Meeting. All other resolutions have completed execution.) During the fiscal year 2020 and as of the date of the publication this report, seven Board Meetings were convened. Major resolutions approved at these meetings are summarized below: (1) The 14th Meeting of the 12th Board (Date: February 27, 2020) ‧ Approved the 2019 employee and director earnings distribution proposal. ‧ Approved 2019 financial statements and consolidated financial statement. ‧ Presentation of the 2019 PCSC Internal Control Statement. ‧ Approved 2019 business reports. ‧ Approved the 2019 earnings distribution proposal. ‧ Approved the 2019 dividend distribution proposal. ‧ Approved the proposed agenda of 2020 Shareholders’ Meeting. ‧ Approved the procedures regarding the “Notice of the right of shareholders to make proposals” for the 2020 Shareholders’ Meeting. ‧ Approved amendments to the Company’s Corporate Governance Best-Practice Principles. ‧ Approved amendments to the Board of Directors Meeting Procedures. ‧ Approved amendments to the Shareholders’ Meeting Procedures. ‧ Approved amendment to the Remuneration Committee’s Organizational Procedures. ‧ Approved the motion on the application for the new and renewal of credit limits from financial institutions. ‧ Presentation of the resolutions approved at the 5th meeting of the 4th Remuneration Committee. ‧ Approved the proposal to establish and remove Company branches and stores.

‧ Approved the date and venue for the 15th meeting of the 12th Board.
(2) The 15th meeting of the 12th Board (Date: May 6, 2020) ‧ Approved the proposal of Company subsidiary President Chain Store (Hong Kong) Holdings Limited to increase the capital of President Chain Store (Shanghai) Co., Ltd.
‧ Approved the PCSC CPA Independence Evaluation Resolution. ‧ Approved amendments to the Audit Committee Organization Procedures. ‧ Approved the motion on the application for the new and renewal of credit limits from financial institutions.
‧ Approved the bidding return fund of the Company’s Nanzhen store. ‧ Approved resolution regarding the non-competition restrictions for PCSC directors.
‧ Approved resolution regarding the non-competition restrictions for management.
‧ Approved the motion to change the custodian of PCSC’s Ministry of Economic Affairs company registration chops.
‧ Presentation of the resolutions approved at the 6th meeting of the 4th Remuneration Committee. ‧ Approved the proposal to establish, change, and remove Company branches and stores.
‧ Approved the date and venue for the 16th meeting of the 12th Board.
(3) The 16th meeting of the 12th Board (Date: June 17, 2020) ‧ Approved the resolution to renewing liability insurance for directors and key employees of the Company and its affiliated companies.
‧ Approved the record dates of 2019 earnings distribution and dividend payment.
‧ Approved the addendum rebate of the Company’s 2020 Lianhe Store (Heping Factory). ‧ Approved the proposal to establish, change, and remove Company branches and stores. ‧ Approved the date and venue for the 17th meeting of the 12th Board.
(4) The 17th meeting of the 12th Board (Date: July 30, 2020) ‧ Approved 2020 Financial Statement and Profit-seeking Enterprise Income Tax Auditing and Certification fee.
‧ Approved the motion on the application for the new and renewal of credit limits from financial institutions.
‧ Approved amendments to the Company’s Ethical Corporate Management Best Practice Principles.
‧ Approved amendments to the Company’s Ethical Corporate Management Operating Procedures and Code of Conduct
‧ Approved amendments to the Company’s Corporate Social Responsibility Best Practice Principles
‧ Approved the proposal to establish the Risk and Information Security Management Department under the CSR Committee, and formulate the risk management policy.

2020 ANNUAL REPORT 45

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‧ Approved the proposal to establish, change, and remove Company branches and stores. ‧ Approved the Company’s new head of the accounting office appointment proposal. ‧ Approved the date and venue for the 18th meeting of the 12th Board. (5) The 18th meeting of the 12th Board (Date: October 30, 2020): ‧ Approved the proposal to sale the Company’s own house. ‧ Approved the proposal of Company subsidiary President Chain Store (Hong Kong) Holdings Limited to increase the capital of President Drugstore (Zhejiang)Business Co., Ltd. ‧ Approved amendments to the Company’s 2021 Internal Control System. 。 ‧ Approved the Company’s 2021 audit plan. ‧ Approved amendments to the Company’s Performance Evaluation Guidelines and Evaluation Methods for the Board of Directors. ‧ Approved the Company’s manager removal proposal. ‧ Approved the proposal of the CSR Committee member personnel appointment. ‧ Approved personnel appointment proposal. ‧ Approved the proposal to establish, change, and remove Company branches and stores in 2020. ‧ Approved the date and venue for the 19th meeting of the 12th Board. (6) The 19th meeting of the 12th Board (Date: December 15, 2020): ‧ Approved the 2021 operations plan proposal. ‧ Approved the proposal for Company 2021 donation plans. ‧ Approved the motion on the application for the new and renewal of credit limits from financial institutions. ‧ Formulated the Company’s Director Selection Procedures. ‧ Formulated the Company’s Rules for the Scope of Duties of Independent Directors. ‧ Approved the Company’s manager removal proposal. ‧ Approved the proposal to establish, change, and remove Company branches and stores in 2021. ‧ Approved the date and venue for the 20th meeting of the 12th Board. (7) The 20th meeting of the 12th Board (Date: February 26, 2021): ‧ Approved the proposal of the Company’s purchase of shares in Connection Labs Ltd. ‧ Approved the proposal of the Company’s purchase of shares in Philippine Seven Corporation. ‧ Approved the 2020 employee and director earnings distribution proposal. ‧ Approved 2020 financial statements and consolidated financial statement. ‧ Approved in accordance with the provisions of the Financial Management Committee to prepare the Company’s 2020 Internal Control System Statement. ‧ Approved 2020 business reports. ‧ Approved the 2020 earnings distribution proposal. ‧ Approved the 2020 dividend distribution proposal. ‧ Approved the proposed agenda of 2021 Shareholders’ Meeting. ‧ Approved the procedures regarding the “Notice of the right of shareholders to make proposals” for the 2021 Shareholders’ Meeting. ‧ Approved the re-election proposal of the Company’s directors (including independent directors). ‧ Approved procedures regarding the “Notice for the acceptance of director candidate nominations (including independent directors)” for the 2021 Shareholders’ Meeting. ‧ Approved resolution regarding the removal of non-competition restrictions for PCSC directors. ‧ Approved amendments to the PCSC Articles of Incorporation. ‧ Approved amendments to the Shareholders' Meeting Procedures.

  - ‧ Approved proposal by Company’s subsidiary President Chain Store (Hong Kong) Holdings Limited to increase the capital of Shanghai President Logistic Co., Ltd..

  - ‧ Approved the Company’s proposal to increase the capital of Connection labs Ltd.

  - ‧ Approved proposal to change PCSC’s CPA.

  - ‧ Approved the PCSC CPA Independence Evaluation Resolution.

  - ‧ Approved trademark transfer authorization.

  - ‧ Approved TSMC’s purchase of commodity welfare card contract donations.

  - ‧ Approved the proposal to establish, change, and remove Company branches and stores in 2021.

  - ‧ Approved the date and venue for the 21th meeting of the 12th Board.

Major resolutions approved at Audit Committee:
During the fiscal year 2020 and as of the date of the publication this report, five audit committee meetings were convened. Major resolutions approved at these meetings are summarized below:
(1) The 7th meeting of the 3rd Audit Committee (Date: February 26, 2020)
- ‧ Approved 2019 financial statements and consolidated financial statement reports.
- ‧ Presentation of the 2019 PCSC Internal Control Statement.
(2) The 8th meeting of the 3rd Audit Committee (Date: May 5, 2020)
- ‧ Approved the proposal of Company subsidiary President Chain Store (Hong Kong) Holdings Limited to increase the capital of President Chain Store (Shanghai) Co., Ltd.
- ‧ Approved the PCSC CPA Independence Evaluation Resolution.
- ‧ Approved amendments to the Audit Committee Organization Procedures.
- ‧ Approved the 2019 earnings distribution proposal and business reports.
- ‧ Approved the motion to change the custodian of PCSC’s Ministry of Economic Affairs company registration chops.

46 2020 ANNUAL REPORT

Corporate Governance

  - (3) The 9th meeting of the 3rd Audit Committee (Date: July 30, 2020) ‧ Approved 2020 Financial Statement and Profit-seeking Enterprise Income Tax Auditing and Certification fee.

  - ‧ Approved amendments to the Company’s Ethical Corporate Management Best Practice Principles.

     - ‧ Approved amendments to the Company’s Ethical Corporate Management Operating Procedures and Code of Conduct

     - ‧ Approved personnel appointment proposal.

  - (4) The 10th meeting of the 3rd Audit Committee (Date: October 29, 2020)

     - ‧ Approved the proposal of the sale of “Golden Horse” owned by the Company.

     - ‧ Approved the proposal of Company subsidiary President Chain Store (Hong Kong) Holdings Limited to increase the capital of President Drugstore (Zhejiang) Business Co., Ltd.

     - ‧ Approved the 2021 “PCSC Internal Control System” amendment.

     - ‧ Presentation of the 2021 audit plan.

  - (5) The 11th meeting of the 3rd Audit Committee (Date: February 25, 2021)

     - ‧ Approved the proposal of the Company’s purchase of shares in Connection Labs Ltd.

     - ‧ Approved the proposal of the Company’s purchase of shares in Philippine Seven Corporation.

     - ‧ Approved the proposal of the Company’s capital increase in Connection Labs Ltd.

     - ‧ Approved the proposal of Company subsidiary President Chain Store (Hong Kong) Holdings Limited to increase the capital of Shanghai President Logistic Co., Ltd.

     - ‧ Presentation of the 2020 PCSC Internal Control Statement.

     - ‧ Approved 2020 financial statements and consolidated financial statement reports.

     - ‧ Approved proposal to change PCSC’s CPA.

     - ‧ Approved the PCSC CPA Independence Evaluation Resolution.

Major resolutions approved at Remuneration Committee:
- (1) During the fiscal year 2020 and as of the date of the publication this report, four remuneration committee meetings were convened. Major resolutions approved at these meetings are summarized below:
  - 1) The 5th meeting of the 4th Remuneration Committee (Date: February 26, 2020)
  - ‧ Resolution to the 2019 employee and director earnings distribution proposal.
    - Result: The above resolution was approved.
  - 2) The 6th meeting of the 4th Remuneration Committee (Date: May 5, 2020)
  - ‧ Remuneration actually paid to Company directors and managers in 2019.
    - Results: The above resolution was approved.
  - 3) The 7th meeting of the 4th Remuneration Committee (Date: October 29, 2020): none.
  - 4) The 8th meeting of the 4th Remuneration Committee (Date: February 25, 2021)
  - ‧ Resolution to the 2020 employee and director earnings distribution proposal and appropriation. Results: The above resolution was approved.
- (2) There are no written or otherwise recorded resolutions on which a member of the Remuneration Committee had a dissenting opinion or qualified opinion.
(12) Differing opinions in records or written statements from directors or supervisors regarding important resolutions made by the Board in the most recent year and through the publication of the Annual Report: None
(13) Summary of the resignations and dismissals of the chairman, president, accountant division manager, chief financial officer, internal auditing manager, Company Secretary, and R&D manager during the last year and up to the time of printing:

Title	Name	On-board Date	Date of Resignation or Dismissal	Reason for Resignation or Dismissal
Accounting Division Manager	Kuo, Ying-Chih	2017/09/01	2020/08/15	Position adjustment

2020 ANNUAL REPORT 47

Corporate Governance

(14) Certificates Earned by Employees Involved in Financial Information Transparency:

31 December 2020

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Certificates Number of employees who hold professional certificates
Certified Internal Auditor (CIA) 1
Certified Information Systems Auditor (CISA) 1(Note)
Certified Public Accountant 3
Certified Public Bookkeeper 4
Taiwan Internal Auditor 1
Technician for Accounting (Level C) 5
Enterprise Internal Control Basic Skills Examination 15
TPIPAS Personal Information Management Professional 6
TPIPAS Personal Information Internal Assessment Professional 1
Corporate Governance General examination 2
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Note: Staff member in the PCSC’s Internal Audit Office earned Certified Information Systems Auditors (CISA).

4. Independent auditors

(1) Audit fees

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Auditing Firm Auditor Names Audit Period Remarks
PRICEWATERHOUSECOOPERS Liang, I-Chang Chou, Chien-Hung 2020 Fiscal Year -
Unit: NT$1000
Fee Category
Audit Fees Non-Audit Related Fees Total
Expense Scale
1 Less than NT$2,000,000 －－－
2 2,000,000 (incl.) – 4,000,000 －－－
3 4,000,000 (incl.) – 6,000,000 －－－
4 6,000,000 (incl.) – 8,000,000 －－－
5 8,000,000 (incl.) – 10,000,000 －－－
6 10,000,000 (incl.) and above 14,050 10,524 24,574
Total 14,050 10,524 24,574
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Unit: NT$1000

Auditing Firm	Auditor Names	Audit Fees	Non-Audit Related Fees	Non-Audit Related Fees	Non-Audit Related Fees	Non-Audit Related Fees	Non-Audit Related Fees	Audit Period	Remarks
			System Design	Business Registration	Human Resources	Other	Subtotal
PRICEWATERHOUSECOOPERS	Liang, I-Chang	14,050	－	－	－	10,524	10,524	2020 Fiscal Year	Other Non-Audit Related Fees include CSR report and consulting service fees etc.
	Chou, Chien- Hung

48 2020 ANNUAL REPORT

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(2) Changing of auditors- Should the Company change auditors over the past two years, the below information shall be disclosed:
Former CPAs

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Date of Change Approved by Board of Directors on February 27, 2019 and February 26, 2021
Reasons and Explanation of Changes In compliance with internal rotation of PricewaterhouseCoopers Taiwan
Client
CPA Consignor
State whether the Appointment is Terminated or Rejected by Status
the Consignor or CPAs Appointment terminated automatically
Not applicable
Appointment rejected (discontinued)
The Opinions other than Unmodified Opinion issued in last
Not applicable
two years and the reasons for the said Opinions
X Accounting principle or practice
Yes X Disclosure of financial statements
X Auditing scope or procedures
Any disagreement in opinion with the issuer X Others
NO V
Explanation: NA
Supplementary Disclosure
Not applicable
(Disclosures Specified in Article 10.6.1.4~7 of the Standards)
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2. Successor CPAs

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Accounting Firm PricewaterhouseCoopers Taiwan PricewaterhouseCoopers Taiwan
Name of CPA Liang, I-Chang and Chou, Chien-Hung Liang, I-Chang and Lin, Se-Kai
Approved by Board of Directors on February Approved by Board of Directors on February
Date of Engagement
27, 2019 26, 2021
Prior to the Formal Engagement, Any inquiry or Consultation on the
Accounting Treatment or Accounting Principles for Specific Transactions, None None
and the Type of Audit Opinion that might be Rendered on the Financial
Report
Written Opinions from the successor CPAs that are Different from the
None
Former CPA’s Opinions None
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The reply of Former CPAs on Article 10.6.1 and Article 10.6.2.3 of the Standards: None.
(3) If the Company’s chairman, president, or managers responsible for financial and accounting affairs have held any position in the accounting firm or its affiliates during the past year, all relevant information should be disclosed: N/A.

5. Net Change in shareholdings and in shares pledged by directors, management, and shareholders holding more than a 10% share in the Company

(1) Recent changes:

Unit: Shares

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2020 This year as of March 15
Title Name Net increase Net increase Net increase Net increase
(decrease) in (decrease) in (decrease) in (decrease) in
shares held shares pledged shares held shares pledged
Director and Institutional Shareholder, Major Shareholder Uni-President Enterprises Corp. 0 0 0 0
Director and Institutional Shareholder Kao Chuan Investment Co., Ltd. 0 0 0 0
Chairman Lo, Chih-Hsien 0 0 0 0
Director Kao, Shiow-Ling 0 0 0 0
Director/PCSC Special Assistant to Chairman Chen, Jui-Tang 0 0 0 0
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2020 ANNUAL REPORT 49

Corporate Governance

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2020 This year as of March 15
Title Name Net increase Net increase Net increase Net increase
(decrease) in (decrease) in (decrease) in (decrease) in
shares held shares pledged shares held shares pledged
Director/PCSC President Huang, Jui-Tien 15,000 0 0 0
Director Wu, Liang-Feng 0 0 0 0
Director Su, Tsung-Ming (10,000) 0 0 0
Director Huang, Jau-Kai 0 0 0 0
Director Wu, Kun-Lin 0 0 0 0
Director Wu, Tsung-Pin 0 0 0 0
Director/ PCSC Chief Financial Officer (Vice President) Wu, Wen-Chi 0 0 0 0
Independent Director Wang, Wen-Yeu 0 0 0 0
Independent Director Shu, Pei-Gi 0 0 0 0
Independent Director Hung, Yung-Chen 0 0 0 0
Senior Vice President Wu, Kuo-Hsuan(Note) 0 0 0 0
Vice President Hsieh, Lien-Tang 0 0 0 0
Vice President Lin, Chi-Chang 0 0 0 0
Vice President Chang, Chia-Hua(Note) 0 0 0 0
Chief Accounting Officer (Vice President) Lee, Johnyih(Note) 0 0 0 0
Vice President Lin, Hung-Chun 0 0 0 0
Chief Accounting Officer (Vice President) Kuo, Ying-Chih(Note) 0 0 0 0
Vice President Tzeng, Fan-Bin(Note) 0 0 0 0
Project Vice President Hsieh, Kuan-Hung 0 0 0 0
Project Vice President Hsu, Kwang-Yu 0 0 0 0
Project Vice President Hsieh Hung, Hui-Tzu 0 0 0 0
Project Vice President Wu, Hui-Chen 0 0 0 0
Project Vice President Chang, Kuo-Kuang 0 0 0 0
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Note: Kuo, Ying-Chih was dismissed in August 2020; Wu, Kuo-Hsuan was dismissed in November 2020; Tzeng, Fan-Bin was dismissed in December 2020; Lee, Johnyih began his term in August 2020; Chang, Chia-Hua began his term in October 2020;

(2) Stock transfers to related parties: None

(3) Pledge of stock rights to related parties: None

2020 ANNUAL REPORT

Corporate Governance

6. Relationships between the Company’s Top 10 largest shareholders and their shareholding percentages:

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15 March 2021
Names of Spouse or
other relatives within two
Shares Held by
Shares Held by degrees of consanguinity
Shares Held Personally Spouse or Minor
Name Children Nominee Agents who are also among Remarks
PCSC’s top 10 largest
shareholders
Shares % Shares % Shares % Name Relationship
Uni-President Enterprises Corp. 471,996,430 45.40% －－－－ None None －
Uni-President Enterprises Corp. Representative: 1,032,215 0.10% 1,044,139 0.10% －－ None None －
Lo, Chih-Hsien
Uni-President Enterprises Corp. Representative: 13,652 0.00% －－－－ None None －
Chen, Jui-Tang
Uni-President Enterprises Corp. Representative: 15,391 0.00% －－－－ None None －
Huang, Jui-Tien
Uni-President Enterprises Corp. Representative: －－－－－－ None None －
Huang, Jau-Kai
Uni-President Enterprises Corp. Representative: －－－－－－ None None －
Su, Tsung-Ming
Uni-President Enterprises Corp. Representative: －－－－－－ None None －
Wu, Liang-Feng
Uni-President Enterprises Corp. Representative: －－－－－－ None None －
Wu, Kun-Lin
Uni-President Enterprises Corp. Representative: －－－－－－ None None －
Wu, Tsung-Pin
Uni-President Enterprises Corp. Representative: 556 0.00% 737 0.00% －－ None None －
Wu, Wen-Chi
First State Investments ICVC - Stewart Investors Asia Pacific Leaders Fund 27,661,208 2.66% －－－－ None None －
PCSC Employees Benefits Trust account in the 22,050,162 2.12% －－－－ None None －
custody of CTBC Bank
Labor Pension Fund (New Scheme) 15,307,500 1.47% －－－－ None None －
Labor Insurance Fund 14,629,000 1.41% －－－－ None None －
Cathay Life Insurance 14,614,316 1.41% －－－－ None None －
Matthews Pacific Tiger Fund 13,620,608 1.31% －－－－ None None －
Government of Singapore 11,535,914 1.11% －－－－ None None －
JPMorgan Chase Bank N.A. Taipei Branch in custody 9,661,379 0.93% －－－－ None None －
for Vanguard Investment Series plc
Norges Bank 9,580,912 0.92% －－－－ None None －
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Note: Except Uni-President Enterprises Corp., the information for other shareholders and their shareholding percentages is as of 7 August 2020.

2020 ANNUAL REPORT 51

Corporate Governance

7. PCSC, Company directors, managements, and directly or indirectly owned subsidiaries’ ownership of shares in affiliated enterprises:

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31 December 2020 / Units: Shares, %
Ownership by directs,
Ownership by
managements, and directly/ Total Ownership
Affiliated Enterprise PCSC indirectly owned subsidiaries
Shares % Shares Shares %
PCSC (BVI) Holdings Ltd. 171,589,586 100.00% 0 0.00% 171,589,586 100.00%
PCSC (China) Drugstore Ltd. 8,746,008 92.20% 740,000 7.80% 9,486,008 100.00%
President Drugstore Business 78,520,000 100.00% 0 0.00% 78,520,000 100.00%
iCASH Corp. 70,000,000 100.00% 0 0.00% 70,000,000 100.00%
President Lanyang Art Corporation. 2,000,000 100.00% 0 0.00% 2,000,000 100.00%
Cold Stone Creamery Taiwan Ltd. 12,244,390 100.00% 0 0.00% 12,244,390 100.00%
Wisdom Distribution Service Corp. 10,847,421 100.00% 0 0.00% 10,847,421 100.00%
21 Century Enterprise Co., Ltd. 10,000,000 100.00% 0 0.00% 10,000,000 100.00%
Uni-President Oven Bakery Corp. 6,511,963 100.00% 0 0.00% 6,511,963 100.00%
President Chain Store Tokyo Marketing Corp. 9,800 100.00% 0 0.00% 9,800 100.00%
Capital Inventory Services Corp. 2,500,000 100.00% 0 0.00% 2,500,000 100.00%
President Being Corp. 1,500,000 100.00% 0 0.00% 1,500,000 100.00%
President Chain Store Corporation Insurance Brokers Co., Ltd. 1,500,000 100.00% 0 0.00% 1,500,000 100.00%
Ren-Hui Investment Corp. 6,500,000 100.00% 0 0.00% 6,500,000 100.00%
Uni-President Superior Commissary Corp. 48,519,890 90.00% 1 0.00% 48,519,891 90.00%
Q-Ware Systems & Services Corp. 24,382,921 86.76% 1 0.00% 24,382,922 86.76%
President Information Corp. 25,714,475 86.00% 1 0.00% 25,714,476 86.00%
Mech-President Corp. 55,858,815 80.87% 13,046,359 18.89% 68,905,174 99.76%
President Pharmaceutical Corp. 22,121,962 73.74% 1 0.00% 22,121,963 73.74%
President Transnet Corp. 103,496,399 70.00% 29,570,401 20.00% 133,066,800 90.00%
President Collect Services Co., Ltd. 1,049,999 70.00% 1 0.00% 1,050,000 70.00%
Uni-President Department Store Corp. 27,999,999 70.00% 12,000,001 30.00% 40,000,000 100.00%
Uni-President Cold-Chain Corp. 42,934,976 60.00% 14,311,659 20.00% 57,246,635 80.00%
Uni-Wonder Corp. 21,382,674 60.00% 14,255,116 40.00% 35,637,790 100.00%
Duskin Serve Taiwan Co. 10,199,999 51.00% 1 0.00% 10,200,000 51.00%
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52 2020 ANNUAL REPORT

Corporate Governance

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Ownership by directs,
Ownership by
managements, and directly/ Total Ownership
Affiliated Enterprise PCSC indirectly owned subsidiaries
Shares % Shares Shares %
Books.com Co., Ltd. 9,999,999 50.03% 1 0.00% 10,000,000 50.03%
Mister Donut Taiwan Corp. 7,500,049 50.00% 1 0.00% 7,500,050 50.00%
President Organic Corp. 1,833,333 36.67% 2,833,333 56.67% 4,666,666 93.34%
Retail Support International Corp. 6,429,999 25.00% 5,144,001 20.00% 11,574,000 45.00%
Uni-President Development Corp. 72,000,000 20.00% 108,000,000 30.00% 180,000,000 50.00%
PresiCarre Corp. 145,172,360 19.50% 152,620,560 20.50% 297,792,920 40.00%
President Fair Development Corp. 190,000,000 19.00% 405,000,000 40.50% 595,000,000 59.50%
President Technology Corp. 750,000 15.00% 0 0.00% 750,000 15.00%
Tung Ho Development Corp. 19,930,000 12.46% 127,827,000 79.89% 147,757,000 92.35%
President International Development Corp. 44,100,000 3.33% 942,430,230 71.23% 986,530,230 74.56%
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2020 ANNUAL REPORT 53

4 Fund Raising

1. Capital and shares

(1) Source of Capital:

a. Shares issued:

15 March 2021 / Units: NT$; Shares

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Authorized Capital Paid-in Capital Remarks
Capital
Year/Month Par Value
Expansion by Date of Approval and Document
Shares Amount Shares Amount Source of Capital
Assets other Number
than Cash
2002/07 10 900,000,000 9,000,000,000 772,031,899 7,720,318,990 [Capitalization of ] None July 19, 2002 (91) Tai-Tsai-Tzeng
retained earnings (1) No. 0910140565
2003/07 10 900,000,000 9,000,000,000 858,499,471 8,584,994,710 [Capitalization of ] None July 17, 2003 (92) Tai-Tsai- Tzeng
retained earnings (1) No. 0920132220
2004/08 10 960,000,000 9,600,000,000 915,160,436 9,151,604,360 [Capitalization of ] None July 20, 2004 Chin-Kuan-Cheng-
retained earnings Yi-Zi No. 0930132295 on file
July 16, 2009 Approval Letter
2009/08 10 1,050,000,000 10,500,000,000 1,039,622,255 10,396,222,550 [Capitalization of ] None Chin-Kuan-Cheng-Fa-Tzu No.
retained earnings 0980035714 on file
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Note: When established in June 1987, the stated capital of the Company amounted to NT$ 100,000,000. After several capitalizations of retained earnings, the paid-in capital as of March 15, 2021 totaled NT$10,396,222,550.

b. Capital and shares:

Unit: Shares

Type of Stock	Authorized Capital	Authorized Capital	Authorized Capital	Remarks
	Outstanding Shares	Non-Issued Shares	Total
Common Stock, Inscribed	1,039,622,255	10,377,745	1,050,000,000	Listed Stocks

(2) Shareholder structure:

As of 7 August 2020 / Unit: Shares

Shareholder Quantity	Government Agencies	Financial Institutions	Other Juridical Persons	Individuals	Foreign Institutions and Individuals	Total
Number of Shareholders	0	0	222	34,250	1,003	35,475
Shares Held	0	0	603,066,009	59,487,381	377,068,865	1,039,622,255
Holding Percentage	0.00%	0.00%	58.01%	5.72%	36.27%	100.00%

(3) Distribution of shareholders:

As of 7 August 2020 / Par value NT$10

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Tiers of Shareholding Number of Shareholders Total Shares Held Holding Percentage
1 to 999 14,714 2,446,562 0.24%
1,000 to 5,000 18,075 30,934,085 2.98%
5,001 to 10,000 1,186 8,901,171 0.86%
10,001 to 15,000 346 4,326,510 0.42%
15,001 to 20,000 174 3,154,363 0.30%
20,001 to 30,000 215 5,358,807 0.51%
30,001 to 50,000 149 5,863,522 0.56%
50,001 to 100,000 184 13,249,179 1.27%
100,001 to 200,000 131 18,514,288 1.78%
200,001 to 400,000 97 28,185,111 2.71%
400,001 to 600,000 48 24,015,028 2.31%
600,001 to 800,000 39 26,578,059 2.56%
800,001 to1,000,000 15 13,708,805 1.32%
1,000,001 and above 102 854,386,765 82.18%
Total 35,475 1,039,622,255 100.00%
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2020 ANNUAL REPORT

Fund Raising

(4) Major shareholders:

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As of 7 August 2020
Shares
Number of Shares Held Holding Percentage
Shareholders
Uni-President Enterprises Corp. 471,996,430 45.40%
First State Investments ICVC - Stewart Investors Asia Pacific Leaders Fund 27,661,208 2.66%
PCSC Employees Benefits Trust account in the custody of CTBC Bank 22,050,162 2.12%
Labor Pension Fund (New Scheme) 15,307,500 1.47%
Labor Insurance Fund 14,629,000 1.41%
Cathay Life Insurance 14,614,316 1.41%
Matthews Pacific Tiger Fund 13,620,608 1.31%
Government of Singapore 11,535,914 1.11%
JPMorgan Chase Bank N.A. 9,661,379 0.93%
Norges Bank - internal - NBIM PF EQ INTERNAL CFD 9,580,912 0.92%
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(5) Share prices, net value, earnings, dividends, and other relevant information for the last two years:

Unit: NT$

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Year As of
2019 2020
Item 15 March 2021
Highest 324.50 311.50 281.00
Market Price per
Share Lowest 280.00 253.00 262.00
(Note 1) Average 301.22 281.27 269.77
Before Distribution 34.84 34.65 ―
Net Value per Share
After Distribution 25.84 25.65 (Note 5) ―
Weighted Average Number of Shares (Shares) 1,039,622,255 1,039,622,255 1,039,622,255
Earnings per Share
Earnings per Share (Undiluted) 10.14 9.85 ―
Cash Dividends 9.00 9.00 (Note 5) ―
Dividends from Retained Earnings ― ― ―
Dividend per Share Stock Dividends Dividends from Capital Surplus ― ― ―
Accumulated Undistributed Dividends ― ― ―
Price/Earning Ratio (Note 2) 29.72 28.79 ―
Return on
Price/Dividend Ratio (Note 3) 33.49 31.50 (Note 5) ―
Investment
Cash Dividend Yield Rate (Note 4) 2.99% 3.17% (Note 5) ―
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Note 1: Market price is referred to TWSE website. Note 2: Price/Earning Ratio= Average Market Price/ Diluted Earnings per Share Note 3: Price/Dividend Ratio= Average Market Price/ Cash Dividends per Share

Note 4: Cash Dividend Yield Rate=Cash Dividends Per Share/ Average Market Price

Note 5: The earnings distributions for 2020 have not yet been approved by the Shareholders' Meeting.

2020 ANNUAL REPORT 55

Fund Raising

(6) Dividend policy and implementation:

1. Dividend policy

(1) Dividend policy as outlined in 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. Should there still be a surplus, 10% of the remaining amount is to be set aside as a legal reserve. After setting aside and reserving a special reserve, the remaining amount combined with accumulated unappropriated earnings from prior years will be distributable earnings for the period. The distribution of accumulated distributable earnings is proposed by the Board of Directors in consideration of industry conditions, the Company’s future operations, and investment plans, which are disbursed following approval of the proposal by the Shareholders’ Meeting. Disbursement of shareholder dividends and bonuses are set as 50-100% of the accumulated distributable earnings, and 50-100% of which is to be issued as cash dividends, while the remainder is to be unappropriated retain earnings.
(2) PCSC business is growing stably. Taking the capital requirements and profitability of the Company into consideration, the Company's profit distribution over the next 3 years will consist primarily of cash dividends. In accordance with the Articles of Incorporation, 50%-100% of said profits are to be issued in the form of cash dividends.
The proposed distribution of 2020 profit approved by the Board of Directors will be submitted to the 2021 Annual Shareholders’ Meeting for approval. The proposal approved by the Board of Directors on February 26, 2021 is as follows: allocating NT$9,356,600,295 from the 2020 distributable earnings to be issued as cash dividends, distributing NT$ 9 per share. After the approval at the Shareholder's Meeting, the Board of Directors shall set a distribution record date.
(7) Impact on the Company's operating performance and EPS of the stock dividend proposed at the Shareholders' Meeting:

The Company did not distribute stock dividends this year, so this is not applicable.

(8) Employee compensation and director remuneration:

According to PCSC's Articles of Incorporation, if the current year’s profit situation (pre-tax profits prior to deduction of employee compensation and director remuneration) is deducted by accumulated deficit, no less than 2% of said surplus shall be distributed as employee compensation and no more than 2% as director remuneration. Staff employed at the Company or subsidiaries meeting the requirements shall be eligible for compensation, distributed in the form of stock or cash. Relevant requirements are outlined separately.
The Board adopted the below employee compensation and director remuneration proposal for 2020:
(1) The Board proposed allocating the amount of NT$543,617,166 as employee compensation and the amount of NT$181,620,380 as remuneration for directors.
(2) The amount of employee stock compensation and their proportion of overall earnings distribution: all employee compensation will be paid in cash.

	Distribution Approved by the Board
Distribution: (Unit: NT$1000)
Employee Compensation	$ 543,617
Director Remuneration	$ 181,620

Distribution of the previous year’s remuneration to employees and directors:

PCSC's distributable earnings in 2019 were distributed as employee compensation and director remuneration as follows:

	Distribution Approved by the Board and at the Shareholder’s Meeting
Distribution: (Unit: NT$1000)
Employee Compensation	$ 567,096
Director Remuneration	$ 189,465

The estimate of employees’ compensation and directors’ remuneration is made by calculating Company current year’s profits (pre-tax profits prior to deduction of employee compensation and director remuneration) are deducted by accumulated deficit. In case of a discrepancy between the actual amount paid out and the estimate, it will be accounted for as changes in estimates and recognized as profit or loss in the following fiscal year.
In the 2019 financial statement, employee compensation totaled NT$567,096,064, while remuneration for directors totaled NT$189,464,589. These amounts are consistent with the amounts approved by the Shareholders' Meeting.

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Fund Raising

(9) Share buyback: None

2. Status of corporate bonds, preferred shares, GDR, employee stock option plans, employee restricted stock plans, and mergers, acquisitions, and spin-offs

(1) Issuance of corporate bonds: None
(2) Issuance of preferred shares: None
(3) Global depository receipts: None
(4) Employee stock option plan: None
(5) Employee restricted stock plan: None
(6) Issuance of new shares to merge with or acquire other companies: None

3. Status of capital utilization plan

(1) Capital projection:

Any incomplete share issuance or private placement or any completed share issuance or private placement over the past three years from which benefits have not yet been reported as of December 31, 2020: None

(2) Status of implementation:
Analysis of the purpose of each capital investment project as of December 31, 2020 and comparison of implementation with the originally anticipated benefits: None

2020 ANNUAL REPORT 57

5 Operating Highlights

1. Business activities

(1) Business scope

PCSC’s Key Operations
(1) F203020 Alcohol and tobacco retailing
(2) F206020 Daily necessities retailing
(3) F203010 Food, groceries, and beverage retailing
(4) F208040 Cosmetics retailing
(5) F399990 Retailing other products
(6) IZ01010 Photocopy services
(7) F201070 Floral retailing
(8) F209060 Educational, musical, and entertainment products retailing
(9) JE01010 Leasing
(10) IE01010 Distribution of telecommunications contracts
(11) I401010 Advertising services
(12) F207050 Fertilizer retailing
(13) F210010 Watch and clock retailing
(14) F210020 Eyeglass retailing
(16) JZ99030 Photography
(17) F204110 Cloth, clothes, shoes, hats, umbrellas, and accessories retailing
(18) A102060 Sales of staple foods
(19) F213010 Electronic appliance retailing
(20) F208031 Medical equipment retailing
(21) F205040 Furniture, bedding, kitchenware, and decorative item retailing
(22) F207030 Cleaning product retailing
(23) F401010 International trade
(24) JA01010 Automotive repair services
(25) F214030 Automotive and motorcycle accessory retailing
(26) G202010 Operation of parking lots
(27) IZ14011 Public welfare lottery
(28) JZ99050 Agency services
(29) IZ99990 Other industry and commerce services not
(31) F401171 Importing of alcohol

(32) ZZ99999 All business items that are not prohibited or restricted by law, except those that are subject to special approval.

(33) F301010 Department stores
(34) F301020 Supermarkets
(35) F399010 Convenience stores
(36) F501030 Coffee/tea shops and bars
(37) F501060 Restaurants
(38) G902011 Type II telecommunications enterprise

(39) I301010 Software design services

(40) I301030 Digital information supply services

(41) F206010 Retail sale of ironware

(42) F212011 Gasoline stations

(43) F212050 Retail sale of petrochemical fuel products
(44) JA01990 Other automobile services
(45) I101090 Food consultancy
(47) J701020 Amusement parks
(48) F102040 Wholesale of nonalcoholic beverages
(49) F102170 Wholesale of food and grocery
(50) F106020 Wholesale of articles for daily use
(51) I103060 Management consulting services
(52) J304010 Book publishers
(53) J303010 Magazine and periodical publication
(54) IZ12010 Manpower services
(55) JA03010 Laundry services
(56) F201010 Retail sale of agricultural products
(57) F501990 Other food or beverage establishment not
(58) F208050 Retail sale of the second type patent medicine
(59) F201061 Retail sale of Seedling
(60) I301040 the third party payment
(61) C104020 Bakery Food Manufacturing
(30) F401161 Importing of tobacco

2. Revenues and their proportion of overall business over the past two years

Unit: NT$1,000

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Revenue and proportion of overall business by division
Major Divisions 2019 2020
Revenue % Revenue %
Convenience stores 157,416,544 61.48% 167,339,677 64.74%
Retail Business 76,009,484 29.68% 68,955,912 26.68%
Logistics Business 2,100,351 0.82% 2,116,524 0.82%
Other Business Divisions 20,532,509 8.02% 20,082,794 7.76%
Total Consolidated Revenues 256,058,888 100.00% 258,494,907 100.00%
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Present and future products and services
O2O: PCSC has continued to strengthen the competitiveness of its digital platforms. In response to the trend to shop online, platform services such as i-preorder and Myship were developed, so consumers can shop online anytime and anywhere, and pick up goods at nearby stores, removing limitations on product displays and purchasing times. Customers can now buy products from our virtual shelves with a touch of fingers. PCSC has provided more complete online and offline service to meet consumers’ needs in real time. PCSC also launched the

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Operating Highlights

O2O shopping platform, mobile ordering and pick up to introduce a coffee refill e-voucher mechanism to improve consumer convenience and shop frequency. PCSC has continued to increase online sales and promotions, providing a more diversified product selection and creating the largest cross-brand digital membership service in Taiwan.

Membership: With the three strategies “Points”, “Membership”, and “Payment”, PCSC has created new upgraded services, continued to promote the expansion of its OPEN POINT member ecosystem, continued to collaborate with seven major channels. PCSC has 14 cooperative channels in total, and membership has grown by more than 12 million. One out of every three customers is an OPEN POINT member and with only one OPEN POINT member account, members can go to 14 major cooperative channels and spend at more than 6,700 locations. Members can quickly accumulate and redeem OPEN POINT points, making the APP an integral part of consumers’ daily life. PCSC’s membership operations lead their counterparts in various industries and the cooperative channel industry spans multiple industries such as supermarkets, catering, cosmeceuticals, department stores, online shopping, fitness, and beauty, making the OPEN POINT customer ecosphere a part of consumers’ daily lives.
Stores: PCSC’s stores have successively opened with themed joint names, such as Lay’s, Kanahei, Heineken, Mickey Mouse, Coca-Cola, Maserati, Snoopy and Hello Kitty from Sanrio Family, and Sumikko Gurashi as well as online beauty topics to assist individual stores and increase business opportunities. Brand images are integrated and built into convenience stores, including in space layout and various co-branded products, making stores much more interesting.
Products:
(1) Fresh foods: 7-ELEVEN plays the role of “social kitchen”, providing high-quality products by stabilizing the supply chain, collaborating with famous brands and launching its own brand system, keeping abreast of consumer health and fitness trends. In response to rising awareness of environmental protection, PCSC launched products such as chicken breasts and a new private Vegetarian brand to meet the various dietary needs of consumers.
(2) Co-branded: PCSC has taken advantage of joint business opportunities and cross-border cooperation with various brands, launching products related to restaurant fresh food and well-known beverages to desserts and roasted meats. Examples include the Marukame and Menya Itto series of ramen products, Gyu-Kaku Grilled Beef Boxed Meal, and Fu Hang Soy Milk’s Rice Ball, Kanpai Yakiniku Grilled Meat Rice Ball, Tiger Sugar’s Earl Grey Milk Tea Puffs, ANYO Fresh Frozen Seafood. These and other products are available for consumers to enjoy without the need to go to a restaurant.

(2) General economic and industry overview

1. General economic analysis

Affected by the epidemic, global economic growth has slowed down. Taiwan’s successful epidemic prevention measures have driven domestic demand. The strong demand for semiconductor and other electronics has boosted exports. GDP grew 3.11% in 2020, an increase of 0.15 % from 2019. Total export value stood at US$345.2 billion, an increase of 4.9% compared to 2019, with a trade surplus of US$59.4 billion. In 2020, the Consumer Price Index (CPI) fell 0.23% over the previous year. In terms of the job market, the average unemployment rate in 2020 was 3.85%, an increase of 0.12 percentage points from 2019.
Industry overview
For all of 2020, retail business turnover was NT$3,859.7 billion, an increase of 0.19% over the previous year, and the number of employees increased by 4,000. In 2020, turnover of overall retail sales of goods was NT$1,292.1 billion, an increase of 1.53% over 2019. The convenience store industry ranked first in turnover, with an overall turnover of NT$361 billion, an increase of 8.86% compared to 2019. The department store industry followed, with an overall turnover of NT$354.1 billion, a decrease of 0.32% compared with 2019. Turnover stood at NT$229.9 billion, an increase of 10.67%. Retail sales volume was NT$228.7 billion, an increase of 8.86%. The core price index (excluding energy, vegetables, and fruits that are susceptible to anticipated or accidental factors) rose by 0.36%. In terms of commodity prices, food products rose by 0.67% and the cost to eat out rose by 0.95%. The monthly salary of each employee in 2020 increased by 1.24% compared with the same period of the previous year. Consumers wanted better quality products and more value for their money. This is a good principle when keeping abreast of the needs of consumers in their daily lives. PCSC will gradually focus on differentiating products and services to enhance the shopping experience of customers at our stores.

Through the end of 2020, key players in the convenience store industry had the below numbers of stores:

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7-ELEVEN FamilyMart Hi-Life OK Total
No. of Stores 6,024 3,769 1,420 749 11,962
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Vertical supply chain

Based on “focused operations, traceability, and winning consumer trust”, PCSC’s food safety policies have as their top priority safety and quality. We have established a Product Safety Committee that has set up a systematic management system for PCSC’s own products. It meets regularly each year to discuss such topics as government regulations, OEM and supplier evaluations and deficiencies, product safety information as well as product safety monitoring programs and their implementation status to ensure that the products on our shelves are safe. To enhance the quality

2020 ANNUAL REPORT

Operating Highlights

control of our own products, we worked with Taiwan Delica Foods to set up a management database to trace and manage materials and suppliers. In addition, as the first retailer to have an internationally certified quality assurance lab in Taiwan that meets ISO17025 standards as well as accreditation from both the TFDA (Taiwan Food and Drug Administration) and TAF (Taiwan Accreditation Foundation), PCSC continues to expand our testing capabilities to provide customers with safer, more convenient, and more delicious food products. In our franchise operations, we will expand individual store autonomy and individual product management to ensure sales growth in our stores. Operating efficiency of stores has increased through system optimization and the introduction of labor-saving equipment. PCSC continues to improve our franchise system, resulting in increases in proportion of franchise outlets. PCSC continues to build a happy Company, to positively impact society, and to work towards environmental sustainability. By valuing our partners, expanding store locations, and developing innovative products and services, we are creating a virtuous circle that benefits both business and our community.
Product development trends and competitiveness
(1) Product development trends
The epidemic has actually resulted in new business opportunities, such as payments and other trends that don’t require personal interaction. In 2020, the number of users of 7-ELEVEN electronic payment broke numbers from previous years and increased significantly compared with the same period the previous year. Total transaction amounts went against trends to grow. In response to trends, PCSC launched first-time special offers that give customers immediate discounts when they use icash 2.0, icash Pay, or OPEN wallet to purchase, so as to encourage customers to use the three major payment tools and to increase ticket size of individual purchases. Using the trend of digital zero-touch payment as the starting point, PCSC has continued to expand the diversified payment ecosystem and gradually increased the use of banking channels in payment tools, such as LINE Pay and credit cards, and created another way for consumers to add bonus points and shopping cash when they check out in stores, thereby increasing the momentum of electronic payment growth.
In addition, technology has allowed customers to purchase online and their purchasing decisions have been influenced by online communities and other channels. Faced with changes in consumption trends, PCSC has actively expanded and developed its online stores and continued to provide a convenient shopping experience offline, creating a new consumption environment that is experiential, entertaining, educational, and exploratory.
(2) Product competitiveness
Dining-out and food delivery business opportunities: Staying abreast of future consumption trends, PCSC has enhanced its prepared frozen food products that customers can conveniently heat up before eating and continued to develop safe and delicious diversified ingredients and dishes, providing fast, convenient, and safe choices for diners. In addition, by cooperating with delivery platforms, PCSC has increased sales opportunities in stores and offered more services in business areas, solving the problem of insufficient delivery manpower in stores, while providing consumers with fast, convenient, and safe choices.
Differentiated products: In response to the impact of the epidemic and restrictions on going abroad, PCSC continues to introduce foreign products through international procurement, strengthening product structure and brand positioning, and strategically collaborating with major manufacturers at home and abroad to develop and introduce exclusive products aimed at what customers want and that are appealing in terms of “value, style, and design”, creating a structure characterized by more differentiated products and distinctiveness.
C2C pickup services expansion: PCSC integrated night markets and business district vendors, helping businesses expand to online platforms, creating an online night market and providing pick up service in stores.
Digital business opportunities: Smart mobile devices have greatly altered consumer behavior. PCSC continues to monitor new technologies and integrate Group resources to utilize our excellent logistics, cash flow systems, vast network of stores, and years of operational know-how to best take advantage of these new developments.
Membership economy: PCSC has used the power of the Group to provide exclusive preferential schemes to enhance the value and sense of honor of members and combine the group and external companies to establish a comprehensive membership mechanism, expand the use of member points, facilitate members to spend and redeem points, and strengthen member loyalty.
Epidemic prevention business opportunities: In response to the impact of the 2020 epidemic, PCSC has cooperated with the government’s anti-epidemic policies for real-name transactions for face masks to pre-order, launched anti-epidemic related products, and introduced a variety of masks in stores to meet consumer needs. PCSC also provided various product discount coupons and epidemic prevention recommended products, allowing consumers to buy all at once.
(3) Technology and R&D
PCSC continues to integrate a variety of innovative products and services to meet the needs of consumers and to compete with differing modes of competition:
mobile ordering and pick up: PCSC took advantage of our more than 6,000 stores across Taiwan, allowing consumers to buy coffee, fresh food, and drinks any time through mobile ordering and pick up in different stores, providing a more convenient and reliable platform.
i-preorder: Using i-preorder’s virtual shelves, PCSC has expanded its merchandise inventory and introduced long-selling, seasonal products and home appliances into sales, removing restrictions on product display

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Operating Highlights

space and purchasing times. In addition to satisfying existing customer groups using physical channels, PCSC has also extended the reaches of its virtual channels with mobile devices, allowing customers to stay on top of the latest product information and best-selling products on the i-preorder platform anytime and anywhere. Customers can then use online the real-time checkout and payment function to determine pick-up store and date, making pre-purchasing easier and more flexible.

i-Love food: PCSC has used IT to enhance fresh food management, reducing food waste in stores by offering discounts before designated fresh food products expire. Therefore, PCSC has improved store ordering confidence and operating efficiency, and continued to work towards its goal of halving leftover food.
Vegetarian brand: PCSC launched vegetarian products with well-known vegetarian restaurants and established a new vegetarian brand. It offers a wide range of healthy, delicious and convenient vegetarian dishes. Customers can enjoy three vegetarian meals a day in one place.
Cold chain E-commerce pickup service: 7-ELEVEN integrated Group resources to create the most convenient service platform for frozen product pick-up services in the local area to meet the daily needs of nine-to-five office workers who purchase frozen products online.
Intelligent vending machines and intelligent coffee machines: 7-ELEVEN launched the “Intelligent vending machine”, which incorporates AI technology into the convenience store. Developed for “mini stores”, intelligent vending machine sell 30 to 40 different products, including frozen desserts as well as fresh and cooked foods. Stores managers can use IoT (Internet of Things) systems to perform remote product control quality analysis and monitor machine status in real time to reduce manpower and operating costs and increase operating efficiency. Aimed at business districts where there is high demand for coffee, but where it is inconvenient to purchase coffee, the introduction of “intelligent coffee machines” expands the scope and flexibility of store services, meets the needs of business customers for coffee, and grasps micro-market business opportunities.
The future of convenience stores, X-STORE 4: The first store to integrate co-branded images to reduce the coldness of technology and to use 5G AR to augment reality, allowing consumers to interact through the TV wall to enhance the pleasure of shopping and introduce the first convenience store in Taiwan to check out all products with RFID technology tags, creating a new consumer experience.
In 2020, a total of NT$253,643,000 was spent on R&D and system upgrades.
(4) Short and long-term operating strategies
Short-term operating strategies
- (1) Continue to integrate stores into existing shopping districts and establish a competitive niche with large format stores.
- (2) Expand store autonomy to create advantages through differentiation.
- (3) Further integrate virtual and brick and mortar operations to create more virtual service opportunities.
- (4) Optimize our operational foundation to provide the strength for mid to long-term development.
Long-term business development plan
- (1) Optimize the franchise model to create a win-win situation for both PCSC and franchisees.
- (2) Implement value marketing and enhance the consumer experience.
- (3) Implement “lean operations” to use resources to their fullest.
- (4) Integrate the Group's resources and seek stable profits growth.
- (5) Actively nurture talent to ensure sustainable development.

2. Market analysis and merchandising

(1) Market analysis

Main product (service) sales areas:

PCSC keeps on top of new consumer trends and develops high value products and innovative services to meet customers’ evolving needs. Our goal is to become “a dependent service platform that surpasses customer expectations”. No matter where you may be, our mission is to provide a wide variety of high quality, trustworthy products and services with a smile.

Future market supply and demand and potential growth:
As of the end of 2020, PCSC held a 50.36% share of the convenience store market in terms of store locations, which made us the top brand in the minds of consumers. We have continued to strengthen the operational capacity of individual stores offline and actively developed online platforms and consumption models to best drive growth through efficiency. As boundaries blur in the retail industry and with the uncertainty of the epidemic, operations will inevitably face more difficult challenges, but as long as we can become a dependent service platform that convenience store customers expect, there is still great potential in the Taiwanese convenience store sector.

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Operating Highlights

Competitive niche: The convenience store industry in Taiwan is highly competitive. However, by capitalizing on our advantages and rapidly evolving to meet needs, we can stay at the head of the pack. PCSC's major competitive advantages are: (1) Positive corporate image and good brand reputation. (2) The capability to rapidly develop new products (services) to meet customers' changing needs and use integrated marketing techniques to promote them. (3) The scale of channel favorable to successful product research, development, and sales. (4) A comprehensive logistics support system and an ever more seamless supply chain. (5) Strong IT platform and infrastructure with high potential for further development to meet the needs of consumers and effectively create new business opportunities. (6) First-rate franchise model. (7) The Group has significant resources that can be integrated and shared between members. 4. Positive and negative factors for future growth and strategic responses: (1) Positive factors: • The market for dining-out continues to grow with increasing demand for natural, organic food and beverage options. • Taiwan's society is aging, while more people are having fewer children and living alone, so there are growing business opportunities from seniors, singles, and small families. • With the rapid development of a variety of smart mobile devices, online shopping, and social network platforms, information has become highly transparent. Shoppers are seeking out entertaining, timely, and mobile shopping experiences. • As cross-border internet transactions increase, greater opportunities will arise for business and logistics. (2) Negative factors: • Faced with uncertainties about the global epidemic, tourism and trade markets have been slow to recover. • The convenience store market is becoming saturated, while small-scale supermarkets have sprung up, blurring the line between the two and resulting in increasingly fierce competition both in the virtual and brick and mortar space. • The decline in the labor population and rising personnel costs will increase overall operating costs. (3) Strategic responses: To stay abreast of changing consumer marketplace and new purchasing trends, PCSC is committed to launching differentiated products and services, providing unique 4E (Experience, Education, Entertainment, Exploration) experiences to meet the consumer needs and build our competitive advantage. Through strict controls, we can offer a variety of safe and delicious fresh food products to meet personalized ready meal and beverage needs. Our “Mobile ordering and pick up” makes it more convenient for consumers to buy or redeem coffee and increases customers’ dependence. In addition, we now offer premium coffee to meet the demand of different target customers. In terms of digital services, our OPEN POINT APP connects various functions, the integration of the group membership system and the application of technology, making it the first choice for consumers to facilitate their lives.

(2) Key purpose of major products and the production process

Key purpose: Provide consumers with products and innovative services to meet their needs.
Production process: None

(3) Supply of raw materials: None

(4) Information on major clients/suppliers who have accounted for at least 10% of sales/procurement in either of the past two years:
List of customers that have accounted for at least 10% of sales over the past two years: PCSC is a retailer of daily life merchandise. Our customers are the general public.
List of suppliers that have accounted for at least 10% of procurement over the past two years: None.

(5) Production over the past two years: None.

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Operating Highlights

(6) Sales over the past two years:

(6) Sales over the past two years:
	Unit: NT$1,000
Major Divisions	2019	2020
	Domestic Sales	Domestic Sales
Convenience Stores	157,416,544	167,339,677
Retail Business	76,009,484	68,955,912
Logistics Business	2,100,351	2,116,524
Other Business Divisions	20,532,509	20,082,794
Total Consolidated Revenues	256,058,888	258,494,907

3. Human Resources:

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Year 2019 2020 As of March 15, 2021
Store Employees 17,589 17,279 17,115
Management 6,898 7,048 7,061
No. of Employees
Part-Time 14,854 14,256 14,099
Total 39,341 38,583 38,275
Average Age 32-years old 33.4-years old 33.5-years old
Average Years of Service 6 years 6.4 years 6.5 years
PhD 0.01% 0.01% 0.01%
Masters Degree 3.98% 4.13% 4.19%
Education Level (as a % of the total) Bachelors Degree 57.05% 56.97% 56.93%
High School 36.46% 36.51% 36.49%
Junior High School or Below 2.46% 2.38% 2.38%
----- End of picture text -----

Note: The information above includes PCSC and its subsidiaries.

4. Environmental protection expenditures

(1) Environment-related expenditures:

PCSC is committed to fulfilling our corporate social responsibility (CSR) and providing customers with safe, convenient products and innovative services. We are also working to reduce energy consumption and carbon emissions. Through the promotion of green procurement, PCSC purchases equipment and consumables that have obtained environmental protection and energy saving marks or have actual environmental protection benefits for use in stores and chooses green building materials for store décor. While maintaining smooth operation and service quality, PCSC also reduces consumption of natural resources and negative environmental impact. Our green procurement items and adopted environmental labels, and certifications are listed below. Total green procurement in 2020 reached NT$845 million, accounting for 9.6% of the total annual procurement amount.

Unit: NT$1000

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

Green Procurement Category Item Amount
Energy Star Meets energy efficiency requirements of EPA’s Energy Star LCD screens; laser printers 51,100
FSC Forest Stewardship Council Verifies that the entire wood product manufacturing process ORUS publications; stir sticks; royal bento disposable
36,811
Certification meets FSC sustainable management requirements chopsticks (100 pcs)
Displays the greenhouse gas emissions during product life
Carbon Label Paper star copy paper 3,474
cycle
RoHS Verifies that motors and electronic products comply with EU Uninterruptible power system; coffee machines; ST; 285,055
regulations on the use of hazardous ingredients switches; POS cash registers/back office computers
Air Conditioner Performance Mark-Air Conditioning
Energy-saving mark Inverter air conditioner; circulation fans; LED lights 144,985
Seasonal Energy Factor (CSPF) reaches level 1
Obtained the green building materials label from the Taiwan
Green Building Materials Mark Construction Center or adopts environmentally friendly Green Building Materials 87,105
patented construction methods
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2020 ANNUAL REPORT

Operating Highlights

Green Procurement Category	Green Procurement Category	Item	Amount
Has actual environmental benefts	Plastic substitutes	PLA-Coffee Cups; ice cream cups/Slurpee cups; PLA straws; paper straws	187,053
	Customized equipment is self-tested by PCSC and has actual energysavingbenefts	Energy saving device	49,805
Total amount of green procurement			845,388

(2) In 2020 and up to the printing of this annual report, there is no fine or loss due to environmental pollution.

(3) In 2020 and up to the printing of this annual report, competent authorities fined some stores NT$461,000 for violating the Act Governing Food Safety and Sanitation, the Tobacco Hazards Prevention Act, and the Labor Standards Act. PCSC has already required improvements in all stores and has strengthened education regarding relevant regulations.
(4) Information regarding EU Restriction of Hazardous Substances (RoHS) Directive: The Company and its subsidiaries do not sell directly or indirectly to Europe, and therefore is not subject to RoHS.

5. Labor-management relations

(1) Employee benefits

Integration of the group’s HR system and resources
PCSC and its affiliates jointly review, revise, and integrate their HR systems to build a robust talent pool and career planning systems for the group. The result is an environment that facilitates a fair and reasonable development of inhouse talents.
Comprehensive employee benefits:
(1) In accordance with the Official Letter Taipei City Social II No. 58459 of the Department of Social Welfare, PCSC established the Employee Benefit Committee on December 21, 1987. Members of the Committee are jointly elected by both the enterprise union and the Company. The Committee regularly hosts a variety of activities, organizes health check-ups for employees, and provides other benefits, such as subsidies for in-service education program.
(2) The PCSC benefit scheme includes trips for senior employees, health examinations, employee stock ownership plans, club subsidies, library centers, discount purchasing, wedding and funeral allowances, paid maternity and paternity leave, group insurance, employee travel allowance, and other benefits provided by Employee Benefits Committee to meet employee needs. In addition, to take care of employees, PCSC also assists employees’ families, sets up nursing rooms in the office, and contracts with childcare institutions to provide preferential prices to reduce the burden of childcare on employees.
(3) To assist employees to effectively and efficiently manage sources of stress from work, home life, and health as well as to bolster physical and emotional health, and encourage positive interpersonal relationships, PCSC organizes employee relationship promotion activities throughout the year to not only relieve the physical and mental pressure of partners, but also to enhance the establishment of the relationship between the organization and employees. In addition, the Company commissioned the Teacher Chang Foundation, starting in 2009, to provide three hours of free counselling services each year for employees.
(4) In 2010, the Company decided to become more proactive in our care for employees, establishing the “Happy Cooperative” in May of that year. In 2020, the program assisted employees in a total of 3,563 cases and 2,779 caring hours.
(5) Due to the special circumstances of the COVID-19 epidemic in 2020, in order to maintain workplace health and implement epidemic prevention, we assisted colleagues to cope with the following:
PCSC has specially formulated the Implementation Measures for Colleagues Working from Home and supporting measures for attendance, allowing logistics colleagues to work remotely from home. In May 2020, the guidelines for the work of colleagues outside the office were also set, and the system began to include working outside the office (home).
The Company started work diversion, and logistics colleagues could also flexibly choose time to go to and from get off work to avoid rush hour and reduce risks. In addition to the original four flexible working hours from 07:30 to 09:00, a new 9:30-18:30 shift schedule was added to allow employees to adjust their times to meet family needs and achieve a work-life balance.
Compensation for cancellation of travel itinerary was provided to colleagues who had already planned to go abroad. If the overseas itinerary had been confirmed and related expenses had been paid, and the private overseas itinerary had been cancelled and related losses had been compensated, compensation was given.

64 2020 ANNUAL REPORT

Operating Highlights

In response to the escalation of the epidemic, giving priority to employees has been important. In response to possible future conditions, the Company has prepared each employee a box of “home epidemic prevention items” and carefully arranges direct delivery when needed, so that members can have peace of mind in their homes.
(6) The Company established “Operational Procedures of Employees Assistance in Severe Accidents”, encouraging supervisors to offer employees timely concern on behalf of the Company and to take the initiative to offer them paid leave for convalescence and financial help to take care of them in the event of serious accidents.
(7) PCSC provides its employees with competitive salaries and wages and ensures that base pay is greater than the national standard for each year through salary and benefit surveys. In addition, men and women in the same position are given the same base pay to promote equality. Salary and benefits do not differ according to gender or age.
Providing entrepreneurial opportunities: PCSC provides an incentive program to encourage employees to become franchisees, so that they can grow and develop with the Company.
Safe and friendly workplace:
Received international certification for the TAF ISO45001 Occupational Health and Safety Management Systems in 2019 and validated until 2022/1/2. To realize health and safety, the Company has taken the following steps:
(1) Establishment of a health and safety organization: The Worker Safety Office holds Health and Safety Committee meetings each quarter and Management Review Meetings each year and encourages contractors to hold safety agreement organization meetings.
(2) Sanitation and safety training and drills: Both new and existing employees participate in safety and health education and training, and we hold occupational safety online courses “Basic Knowledge to Prevent COVID-19”, “Traffic Safety Promotion” to enhance employees understanding of epidemic prevention and traffic safety.
License training (Level C/First Aid): 153 sessions/4,505 individuals engaged.
“Basic Knowledge to Prevent COVID-19”: 8,104 individuals engaged.
“Traffic Safety Promotion”: 6,272 individuals engaged.
(3) Implement risk assessments and safety audits:
Contractor management: PCSC takes the initiative to notify about hazards related to repairs to existing stores. For 6 stores, individualized engineering safety assessment and hazard identification were implemented according to the type of construction.
Risk and danger identification: In 2020, we held audits in various locations with 518 corrective actions taken in 206 locations in which 25 actions found zero missing. Improvements were suggested and implemented for 100% improvement.
Guiding fresh food factory: Implemented supply chain management, coached 14 fresh food factories, handled 1 online occupational safety training course, 37 suppliers participated and a total of 7 factories have completed the ISO45001 occupational safety management system.
Testing indoor air quality to ensure that CO2 emissions were below 1000 ppm and that the illuminance and the quality of the drinking water were above standard. In 2020, the frequency of disinfection was increased and environment cleaned, improving epidemic prevention.
(4) Healthcare: When employees first report for work, they are signed up for group accident insurance, life insurance, medical insurance, and we provide subsidies for physical examination. PCSC also hired specialized nurse practitioners and doctors from NTU Hospital to provide health counseling services. PCSC further employs health education campaigns, such as the Healthy Life Circle app, e-newsletters, and lectures, to encourage employees to manage their personal health.
(5) Event safety controls: Affected by the 2020 epidemic, in line with the Company’s epidemic prevention policy, we stopped handling large-scale events to avoid the risk of infection by company employees and people participating in the event.
(6) Promoting employee health exams: Strengthen personal health management and illnesses prevention through regular health checks.
Senior employee in-depth health exams: Provide full-time employees 35-years old or older with at least 5 years of service with NT$16,000 subsidy every two years for in-depth health exams. In 2020, a total of 2,667 employees could apply for such assistance
Annual health exams: We provide employees and food industry workers with annual heath exams. In 2020, 6,136 people had health exams with a satisfaction score of 4.5 points and 85% participation rate.
(7) Implementing employee health management: Employing doctors and nurses to proactively provide employees with individual health care and consultations.
Doctors: In 2013, PCSC began asking doctors to provide health services to employees (once every two months). By 2019, this was increased to 16 times per month (3 hours each time). In 2020, doctor services totaling 576 hours over the entire year, providing one on one health services 721 times with an employee satisfaction score of 4.8.
Nurses: A team of four nurses was hired to provide employee healthcare. In 2020, the team provided treatment 268 times. In addition, PCSC introduced a comprehensive health management system to provide employees

2020 ANNUAL REPORT 65

Operating Highlights

who received abnormal exam results with tiered health management. 539 extremely high risk employees have been under 100% intervention management, follow up treatment tracking, and individual case follow up management.

(8) Promoting occupational disease prevention and health protections for specific groups: Establishing maternal health protection for female workers and prevention mechanisms for ergonomic hazards, workplace violence, and fatigue. In 2020, a total of 67 cases had been resolved.
(9) Workplace emergency preparedness: Automated external defibrillators (AED) are installed according to office size and number of employees and regular training is held. In 2019, PCSC received the Ministry of Health and Welfare’s AED Workplace Certification for the third year in a row.
(10) Implementing health promotion activities: Encouraging employee self-health management to improve health outcomes through group activities.
Our health promotion campaign has incorporated an innovative and revolutionary app that features a Healthy Living Community for employees, encouraging all employees to maintain the healthy practice of exercising. In 2020, four special activities, including the Year of the Rat Event, two self-discipline activities, and the Dragon Boat Festival Event, were held (each lasted for one month) with 7,777 participants. A total of 49.89 million steps were accumulated over the year burning off an average of 1,250 kilocalories and a total of about 1,633 kg.
• Influenza vaccination campaign: A total of 579 people received vaccinations for a coverage rate of 6.8%.
(11) Health certifications and healthy workplace competitions: • Received the three year Lequn Health Award from the Ministry of Health and Welfare’s Health Promotion Administration Outstanding Healthy Workplace Awards in 2019. Certification is valid from 2019 to 2021.
• PCSC was awarded the Department of Health, Taipei City Government’s Outstanding Nursing Room Certification.

(2) Training and development

1. PCSC’s training statistics for 2020 are as follows:

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Internal Training External Training Online Training Total
Training Number of Hours of Training Number of Hours of Training Number of Hours of Training Number of Hours of Training
Sessions Trainees Training Costs Trainees Training Costs Trainees Training Costs Trainees Training Costs
NT$21.944 NT$1.132 NT$1.603 NT$24.679
738 18,768 80,050 384 3,347 293,192 149,183 312,344 232,580
million million million million
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In accordance with the Group’s core values, PCSC issued “General Skills Needed by Logistics Personnel and Standards for Training Courses” covering training programs developed by PCSC for various positions within the organization to build employee skills and standards.
We also issued “Training Management Guidance” to serve as guidelines for training activities. Based on their individual needs, employees can take internal or external training classes or different departments can organize their own training. In addition, they can draw up a “Personal Development Plan” with their immediate superiors based on their education, experience, work requirements, performance evaluation results, and career development needs to map out the training sequence most suitable for them. Giving employees a goal and a plan encourages disciplined learning and growth to ultimately enrich professional knowledge and skills.
For some key identified talents, PCSC has mapped out a program of training and development that includes courses, mobile learning, and personal development plans as well as attending regular meetings to let high-level managers know how well they are doing in their studies and what they have accomplished to help them reach their ideal position within the Company.
Potential external training courses are vetted through a rigorous screening process to ensure that all offerings are up to our exacting standards. Depending on the nature of the course and the participants, each class employs unique educational activities. In addition, utilizing the latest technologies, PCSC has built a digital learning platform for online courses to provide a more effective way to attain a competitive edge.
Continuing education: At PCSC, employees can take charge of their own learning through the many diverse training channels available, which include guidance by supervisors and peers, knowledge management system, internal and external training programs, lectures and seminars, online learning, and on-the-job training. PCSC also encourages employees to pursue self-enrichment in their spare time to shore up their foundation and professional knowledge through scholarships for outside training and language courses.
An internal system for training lecturers that uses Company resources to cultivate enthusiasm and a willingness to share with our partners and train to be specialized internal lecturers to transform our Company into an organization that emphasizes learning and sharing. Just before Teachers’ Day, the Company recognizes and expresses appreciation to individuals who have lectured internally to help create within them a sense of value and mission.
Career development:
(1) Multi-channel career development opportunities: PCSC has spared no effort in employee training and personal development and we fully support employees’ quest for knowledge and enhanced work skills. Through training

66 2020 ANNUAL REPORT

Operating Highlights

programs, providing equipment, online resources, and a mentoring system, the Company helps employees map out their career development plan and provides a diverse range of opportunities for personal growth.

(2) Job rotation: We encourage our employees to try new things and to learn by working in various departments, different companies, or even various areas to broaden their horizons and increase competence in a range of skills.

(3) Retirement plan

Old system under the Labor Standards Act
On June 1, 2014, PCSC modified its employee retirement program, applicable to all existing employees. As stipulated by law, the program calculates an employee’s years of service starting with his or her hiring date. Employees who have worked for the Company for less than 15 years (inclusive) shall be granted two basic units for each full year of service. From the 16th year onward, each full year of service shall be translated into one basic unit in the calculation of pensions. Any service period that is less than six month shall be calculated as half a year; while any service period that is between six months and twelve months shall be calculated as one full year. The number of basic units in the calculation of pensions is capped at 45. Pensions are calculated on the basis of years of service and the average monthly salary at the time of retirement. Calculation of average salaries shall be made in compliance with the Labor Standard Act.
Service year calculations under the old system for transferred employees:
Service years for transferred employees include the number of years they served in every PCSC affiliate and/or members of the Uni-President Group.
The sharing of pensions among affiliates is based on the percentage of the years of service spread over the affiliates that the employee has served.
New system under the Labor Pension Act:
Beginning on July 1, 2005, in accordance with the Labor Pension Act, PCSC implemented a new system that is applicable to all employees. Existing employees could opt for the old system under the Labor Standard Act as stated in (1) or the new system under the Labor Pension Act. As stipulated in the Labor Pension Act, the monthly contribution is made based on the Monthly Contribution Wages Classification, which currently amounts to 6% of employee monthly income transferred to a personal retirement account with Bureau of Labor Insurance.

(4) Labor-management relations

Open communication channels
PCSC established an internal communication platform which sends out important messages directly to employees. To encourage direct communication between employees and managers, in addition to providing an Integrated Services Center, e-mailbox, and a dedicated stakeholder section of our website that allows employees to get timely answers to their questions, the Company set up an internal suggestion system, which allows employees to offer opinions and suggestions about Company operations directly to management in real time.
Employee code of conduct
PCSC has written an employee handbook and regulations regarding incentives and rewards and has also set up a committee to implement related affairs. Furthermore, the Company has established an employee code of conduct to spell out specific regulations governing employee behavior. The code of conduct includes the below requirements:
(1) Employees may not embezzle Company funds for personal purposes, engage in unscrupulous behaviors for profit, participate in illegal acts, violate any contracts, damage public property, or otherwise jeopardize the Company’s reputation.
(2) Employees shall not abuse any other individual, affect other individual’s work performance or threaten to exchange the establishment of service contracts, compensations, performance reviews, promotions/demotions, rewards/ disciplinary actions with any language or actions that contain sexual requests, that are sexually suggestive, or discriminate on the basis of sex.
(3) Employees shall not give gifts to managers or treat managers for meals; however, managers may give gifts to subordinates and treat subordinates for meals as a token of gratitude for their hard work.
(4) Employees shall not be engaged in any unofficial monetary transactions with any business-related vendors or individuals.
(5) Employees shall not receive any benefits from business-related vendors or individuals.
(6) Employees shall not make any publications, statements, or displays in the name of the Company without permission from the Company.
(7) Employees should maintain complete confidentiality in all business activities for which they are responsible and shall never, under any circumstance, assist anyone with interests at odds with those of PCSC or reveal trade secrets to competing enterprises or individuals.
(8) Employee attendance and behavior shall comply with regulations set forth by HR.

3. Labor-management negotiations:

PCSC has always considered our employees as the most important asset. The Company works to align our vision for the future with the development goals of employees. PCSC also holds regular labor-management meetings as required by law. Therefore, the interaction between PCSC and its employees has been very positive and harmonious over the years.

2020 ANNUAL REPORT 67

Operating Highlights

4. Losses due to labor disputes:

(1) PCSC provides employees with a comprehensive benefit system, quality working environment, and open communications channels. Therefore, no major labor disputes have occurred and no significant losses have been reported.

(2) Violations of the Labor Standards Act in the last year up until the printing of this annual report:

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Date of
Serial No. of Disciplinary
Disciplinary Article Violated Details of Violation Penalty
Action
Action
Taipei City Labor Standards No. Labor Standards Act, Article
2020/02/17 Did not record employee work time by minutes. Fined NT$20,000
10960082431 30, Item 6
Did not pay enough for working overtime.
Kaohsiung City Labor Standards Labor Standards Act, Article Had employee work more than 46 hours in one month or had
2020/03/06 Fined NT$70,000
No. 10931638800 24, Article 32, Item 2 employee work more than 12 hours in one day, including regular
working hours and overtime.
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(3) Current and future amount of money that might have to be paid: None

(4) Countermeasures:
1) Enhance work attendance system abnormal management and follow-up mechanism to assist the individual employee and their manager to determine as soon as possible that the situation is abnormal and take appropriate measures and improvements.

2) Incorporate store work attendance abnormal confirmation mechanism, including such abnormalities as forgetting to sign in or out, clocking out intentionally late. In addition, checks of internal work attendance management are to be performed each quarter to determine how well stores are doing in implementation. Any that do not pass are to be counseled by OFC and the situation improved.

68 2020 ANNUAL REPORT

Operating Highlights

6. Important Contracts

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March 15, 2021
Contract Type Contracting Party Term of Agreement Summary Clauses
1. During the term of the PCSC is obliged to make its best
agreement, PCSC is effort to manage and expand the
authorized by 7-ELEVEN convenience store business within
I n c . t o e x c l u s i v e l y the R.O.C. PCSC is not permitted to
operate its convenience operate its convenience store business
store chain business outside the R.O.C. without prior
in the R.O.C. and has approval or to operate a convenience
Regional licensing agreement 7-ELEVEN, INC. 2000.07.20 ~ Perpetuity
the right to use the store business for one year following
7-ELEVEN franchise the termination of the contract in any
system, logos, products, country in which 7-ELEVEN, Inc. has
and services. registered a trademark.
2. PCSC is required to pay
royalties to 7-ELEVEN
Inc. each month.
Long-term loan agreement Bank of Taiwan 2021.01.22~2023.01.22 NT$300 million credit loan None
Long-term loan agreement BNP Paribas 2020.04.22~2022.04.22 US$50 million credit loan None
Long-term loan agreement Mizuho Bank 2021.01.06~2023.01.06 NT$2 billion credit loan None
Long-term loan agreement HSBC Bank 2020.07.01~2022.06.30 NT$2.6 billion credit loan None
Long-term loan agreement MUFG Bank, Ltd. 2020.03.10~2023.03.10 NT$2.5 billion credit loan None
Long-term loan agreement Sumitomo Mitsui Banking Corporation 2020.10.23~2023.10.23 NT$4 billion credit loan None
Long-term loan agreement Banco Bilbao Vizcaya Argentaria 2020.03.31~2022.03.31 US$100 million credit loan None
Long-term loan agreement Bank SinoPac 2020.07.02~2022.06.30 NT$1.2 billion credit loan None
Long-term loan agreement DBS Bank 2021.01.04~2026.01.04 NT$4.3 billion credit loan None
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2020 ANNUAL REPORT 69

6 Financial Information

1. Five year condensed balance sheet and comprehensive income statement

(1) Condensed balance sheet (Parent company only)

Unit: NT$1,000

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Year Financial information for the most recent five years
2016 2017 2018 2019 2020
Item
Current Assets 32,408,988 39,689,001 26,967,356 23,120,743 25,273,799
Property, Plants and Equipment 8,608,695 8,946,459 9,114,219 10,477,703 12,233,732
Intangible Assets 278,320 211,865 119,019 84,728 162,265
Other Assets 25,893,774 51,905,688 53,045,922 98,780,874 103,834,154
Total Assets 67,189,777 100,753,013 89,246,516 132,464,048 141,503,950
Before Distribution 33,126,538 40,960,714 44,136,423 48,168,710 51,624,914
Current Liabilities
After Distribution 41,443,516 66,951,270 53,285,102 57,525,310 Not yet distributed
Non-Current Liabilities 5,446,961 9,178,037 9,858,043 48,072,457 53,858,845
Before Distribution 38,573,499 50,138,751 53,994,466 96,241,167 105,483,759
Total Liabilities
After Distribution 46,890,477 76,129,307 63,143,142 105,597,767 Not yet distributed
Capital-Common Stock 10,396,223 10,396,223 10,396,223 10,396,223 10,396,223
Capital Surplus 1,158 43,875 45,059 46,884 47,628
Before Distribution 18,047,308 40,573,023 24,757,163 26,159,961 26,908,961
Retained Earnings
After Distribution 9,730,330 14,582,467 15,608,487 16,803,361 Not yet distributed
Other Equity 171,589 (398,859) 53,605 (380,187) (1,332,621)
— — — — —
Treasury Stock
Before Distribution 28,616,278 50,614,262 35,252,050 36,222,881 36,020,191
Total Equity
After Distribution 20,299,300 24,623,706 26,103,374 26,866,281 Not yet distributed
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70 2020 ANNUAL REPORT

Financial Information

(2) Condensed balance sheet (Consolidated)

Unit: NT$1,000

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Year Financial information for the most recent five years
2016 2017 2018 2019 2020
Item
Current Assets 54,322,992 88,404,260 75,642,868 74,233,805 78,136,394
Property, Plants and Equipment 22,329,291 24,982,342 25,292,763 26,018,322 28,050,374
Intangible Assets 1,076,176 10,656,713 10,393,880 10,171,442 9,958,198
Other Assets 17,390,058 15,837,945 16,365,569 84,705,065 93,348,968
Total Assets 95,118,517 139,881,260 127,695,080 195,128,634 209,493,934
Before Distribution 52,594,724 65,619,920 68,112,215 77,349,713 82,699,832
Current Liabilities
After Distribution 60,911,702 91,610,476 77,260,891 86,706,313 Not yet distributed
Non-Current Liabilities 9,262,863 14,754,930 15,557,838 72,551,603 81,816,403
Before Distribution 61,857,587 80,374,850 83,670,053 149,901,316 164,516,235
Total Liabilities
After Distribution 70,174,565 106,365,406 92,818,729 159,257,916 Not yet distributed
Equity Attributable to Owners of the Parent 28,616,278 50,614,262 35,252,050 36,222,881 36,020,191
Capital-Common Stock 10,396,223 10,396,223 10,396,223 10,396,223 10,396,223
Capital Surplus 1,158 43,875 45,059 46,884 47,628
Before Distribution 18,047,308 40,573,023 24,757,163 26,159,961 26,908,961
Retained Earnings
After Distribution 9,730,330 14,582,467 15,608,487 16,803,361 Not yet distributed
Other Equity 171,589 (398,859) 53,605 (380,187) (1,332,621)
— — — — —
Treasury Stock
Non-controlling Interest 4,644,652 8,892,148 8,772,977 9,004,437 8,957,508
Before Distribution 33,260,930 59,506,410 44,025,027 45,227,318 44,977,699
Total Equity
After Distribution 24,943,952 33,515,854 34,876,351 35,870,718 Not yet distributed
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2020 ANNUAL REPORT 71

Financial Information

(3) Condensed comprehensive income statement (Parent company only)

Unit: NT$1,000 (EPS=NT$)

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Year Financial information for the most recent five years
2016 2017 2018 2019 2020
Item
Operating Revenue 140,147,135 144,479,880 154,074,731 158,031,567 168,147,856
Gross Profit 48,083,751 50,639,297 53,012,367 54,177,435 56,557,043
Operating Income 6,673,576 6,246,725 7,654,581 7,046,067 7,518,677
Non-Operating Income (Expenses) 4,439,125 30,254,326 4,779,209 5,174,399 4,195,838
Net Income Before Tax 11,112,701 36,501,051 12,433,790 12,220,466 11,714,515
Net Income from Continuing Operations 9,836,690 31,017,094 10,206,388 10,542,860 10,238,162
— — — — —
Income (or Loss) from Discontinued Operations
Net Income (Loss) 9,836,690 31,017,094 10,206,388 10,542,860 10,238,162
Other Comprehensive Income (Loss) (601,669) (744,849) 424,762 (426,096) (1,086,199)
Total Comprehensive Income (Loss) 9,235,021 30,272,245 10,631,150 10,116,764 9,151,963
Net Income Attributable to Owners of the Parent — — — — —
— — — — —
Net Income Attributable to Non-Controlling Interests
Total Comprehensive Income Attributable to Owners of the Parent — — — — —
Total Comprehensive Income Attributable to Non-Controlling Interests — — — — —
Earnings per Share (NT$) 9.46 29.83 9.82 10.14 9.85
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72 2020 ANNUAL REPORT

Financial Information

(4) Condensed comprehensive income statement (Consolidated)

Unit: NT$1,000 (EPS=NT$)

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Year Financial information for the most recent five years
2016 2017 2018 2019 2020
Item
Operating Revenue 215,359,089 221,132,082 244,887,853 256,058,888 258,494,907
Gross Profit 70,606,642 73,434,010 84,076,692 87,848,420 88,080,510
Operating Income 10,404,620 10,422,160 12,834,824 13,049,894 12,144,973
Non-Operating Income (Expenses) 2,957,238 30,959,528 2,567,523 2,114,293 1,665,483
Net Income Before Tax 13,361,858 41,381,688 15,402,347 15,164,187 13,810,456
Net Income from Continuing Operations 11,138,569 32,318,072 11,744,278 12,112,109 11,340,258
Income (or Loss) from Discontinued Operations — — — — —
Net Income (Loss) 11,138,569 32,318,072 11,744,278 12,112,109 11,340,258
Other Comprehensive Income (Loss) (734,950) (877,792) 302,511 (359,692) (1,116,510)
Total Comprehensive Income (Loss) 10,403,619 31,440,280 12,046,789 11,752,417 10,223,748
Net Income Attributable to Owners of the
9,836,690 31,017,094 10,206,388 10,542,860 10,238,162
Parent
Net Income Attributable to Non-Controlling
1,301,879 1,300,978 1,537,890 1,569,249 1,102,096
Interests
Total Comprehensive Income Attributable to
9,235,021 30,272,245 10,631,150 10,116,764 9,151,963
Owners of the Parent
Total Comprehensive Income Attributable to
1,168,598 1,168,035 1,415,639 1,635,653 1,071,785
Non-Controlling Interests
Earnings per Share (NT$) 9.46 29.83 9.82 10.14 9.85
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2020 ANNUAL REPORT 73

Financial Information

(5) Names and opinions of external auditors over the past five years

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Year Auditing Firm Auditor Names Audit Opinions
2016 PRICEWATERHOUSECOOPERS Hsiao, Chun-Yuan Chou, Chien-Hung Unqualified
2017 PRICEWATERHOUSECOOPERS Hsiao, Chun-Yuan Chou, Chien-Hung Unqualified
2018 PRICEWATERHOUSECOOPERS Hsiao, Chun-Yuan Chou, Chien-Hung Unqualified
2019 PRICEWATERHOUSECOOPERS Liang, I-Chang Chou, Chien-Hung Unqualified
2020 PRICEWATERHOUSECOOPERS Liang, I-Chang Chou, Chien-Hung Unqualified
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2. Five year financial analysis

(1) Financial analysis (Parent company only)

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Year Financial information for the most recent five years
Item 2016 2017 2018 2019 2020
Financial Debt to Assets Ratio (%) 57.41 49.76 60.50 72.65 74.54
Structure Long-Term Capital to Property, Plant and Equipment Ratio (%) 395.68 668.33 494.94 804.52 734.68
Current Ratio (%) 97.83 96.90 61.10 48.00 48.96
Liquidity Quick Ratio (%) 79.12 78.68 42.48 31.05 31.48
Interest Coverage 362.33 1198.11 290.35 34.98 30.70
— — — — —
Accounts Receivable Turnover (times) (Note 1)
— — — — —
Average Collection Days (Note 1)
Inventory Turnover (times) 15.18 14.22 13.28 12.94 13.18
Operating
Accounts Payable Turnover (times) 6.60 6.40 6.74 6.76 7.14
Performance
Average Inventory Turnover Days 24.05 25.67 27.48 28.22 27.69
Property, Plant and Equipment Turnover (times) 16.28 16.46 17.06 16.13 14.81
Total Assets Turnover (times) 2.09 1.72 1.62 1.43 1.23
ROA (%)(Note 3) 15.34 36.97 10.78 9.79 7.73
ROE (%) 35.30 78.30 23.77 29.50 28.34
Profitability Ratio of Pre-tax Profit to Paid-in Capital (%) 106.89 351.10 119.60 117.55 112.68
Net Margin (%) 7.02 21.47 6.62 6.67 6.09
Earnings per Share (NT$) 9.46 29.83 9.82 10.14 9.85
Cash Flow Ratio (%) 52.83 28.46 38.20 34.41 37.72
Cash Flow Cash Flow Adequacy (%) 130.55 119.15 96.54 102.61 105.95
Cash Flow Reinvestment Ratio (%)
21.74 4.63 (15.67) 14.03 18.92
(Note 3)
Operating Leverage 1.98 2.15 1.84 2.91 2.87
Leverage
Financial Leverage 1.00 1.00 1.01 1.05 1.06
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Note 1: Not applicable, as PCSC is a retail business. Note 2: The calculations of the above financial ratios utilize the formulas listed on page 76, which are based on IFRS. Note 3: The reasons for changes in financial ratios over the past two years:

*ROA: The change was primarily caused by increased in average total assets due to impact of IFRS 16 in 2020.

*Cash Flow Reinvestment Ratio: The change was primarily caused by increased in net cash flows from operating activities in 2020.

74 2020 ANNUAL REPORT

Financial Information

(2) Financial analysis (Consolidated)

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Year Financial information for the most recent five years
2016 2017 2018 2019 2020
Item
Debt to Assets Ratio (%) 65.03 57.46 65.52 76.82 78.53
Financial
Structure Long-Term Capital to Property, Plant and
190.44 297.26 235.57 452.68 452.02
Equipment Ratio (%) (Note 3)
Current Ratio (%) 103.29 134.72 111.06 95.97 94.48
Liquidity Quick Ratio (%) 77.75 112.16 86.89 74.18 72.94
Interest Coverage (Note 3) 141.86 438.85 107.47 13.47 11.45
— — — — —
Accounts Receivable Turnover (times)(Note 1)
— — — — —
Average Collection Days (Note 1)
Inventory Turnover (times) 12.27 11.62 11.28 10.93 10.55
Operating
Accounts Payable Turnover (times) 6.81 6.51 6.67 6.75 6.69
Performance
Average Inventory Turnover Days 29.74 31.41 32.35 33.39 34.59
Property, Plant and Equipment Turnover (times) 9.64 9.35 9.74 9.98 9.56
Total Assets Turnover (times) 2.33 1.88 1.83 1.59 1.28
ROA (%) (Note 3) 12.16 27.57 8.86 8.11 6.14
ROE (%) 34.62 69.68 22.69 27.14 25.14
Profitability Ratio of Pre-tax Profit to Paid-in Capital (%) 128.53 398.05 148.15 145.86 132.84
Net Margin (%) 5.17 14.61 4.80 4.73 4.39
Earnings per Share (NT$) 9.46 29.83 9.82 10.14 9.85
Cash Flow Ratio (%) 44.95 31.44 26.31 37.28 36.68
Cash Flow Cash Flow Adequacy (%) 128.10 125.71 98.19 107.00 114.89
Cash Flow Reinvestment Ratio (%) 22.94 12.01 (11.48) 23.94 24.68
Operating Leverage 2.16 2.23 2.01 2.33 2.51
Leverage
Financial Leverage 1.01 1.01 1.01 1.10 1.12
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• ROA: The change was primarily caused by increased in average total assets due to impact of IFRS 16 in 2020. ※Calculations based on IFRS: ※Financial Structure

(1) Debt to Assets Ratio = total liabilities / total assets

(2) Long-term Capital to Property, Plant and Equipment Ratio = (total shareholders’ equity + non-current liabilities) / net property, plant and equipment ※Liquidity

(1) Current Ratio = current assets / current liabilities

(2) Quick Ratio = (current assets – inventory – prepaid expenses) / current liabilities

(3) Interest Coverage = earnings before interest and taxes / interest expenses

2020 ANNUAL REPORT 75

Financial Information

※Operating Performance (1) Average Accounts Receivable Turnover (including accounts receivable and notes receivable arising from business activities) = net sales / average accounts receivable (including accounts receivable and notes receivable arising from business activities) (2) Average Collection Days = 365 / average accounts receivable turnover (3) Inventory Turnover = cost of goods sold / average inventory (4) Average Accounts Payable Turnover (including accounts payable and notes payable arising from business activities) = cost of goods sold / average accounts payable (including accounts payable and notes payable arising from business activities) (5) Average Inventory Turnover Days = 365 / inventory turnover ratio (6) Property, Plant and Equipment Turnover = net sales / net property, plant and equipment (7) Total Asset Turnover = net sales / average total assets ※Profitability (1) Return on Assets = [net income + interest expense × (1 – effective tax rate)] / average total assets (2) Return on Equity = net income / average shareholders’ equity (3) Net Margin = net income / net sales (4) Earnings per Share = (net income attributable to owners of the parent – preferred stock dividends) / weighted average number of shares outstanding ※Cash Flow (1) Cash Flow Ratio = net cash flows from operating activities / current liabilities (2) Cash Flow Adequacy Ratio = five year sum of net cash flows from operating activities / five year sum of (capital expenditures+ increase in inventory + cash dividends) (3) Cash Flow Reinvestment Ratio = (net cash flows from operating activities – cash dividends) / (gross property, plant and equipment / long-term investments + other non-current assets + working capital) ※Leverage (1) Operating Leverage = (net sales – variable operating costs and expenses) / operating profit (2) Financial Leverage = operating profit / (operating profit – interest expenses)

3. The Audit Committee report regarding the most recent annual financial report: Please refer to page 90.

4. The audited consolidated financial report for the most recent fiscal year: Please refer to pages 91– 156.

5. The audited parent company only financial report for the most recent fiscal year: Please refer to pages 157 –216.

6. Any cash flow difficulties with the Company and its affiliates during the most recent year and as of the date of publication of the annual report: None

76 2020 ANNUAL REPORT

7 Financial Status, Financial Performance and Risk Management

1. Financial position analysis (consolidated)

Unit: NT$1,000

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Year Variance
2019 2020
Item Difference %
Current Assets 74,233,805 78,136,394 3,902,589 5.26%
Property, Plant and Equipment 26,018,322 28,050,374 2,032,052 7.81%
Intangible Assets 10,171,442 9,958,198 (213,244) -2.10%
Other Assets 84,705,065 93,348,968 8,643,903 10.20%
Total Assets 195,128,634 209,493,934 14,365,300 7.36%
Current Liabilities 77,349,713 82,699,832 5,350,119 6.92%
Non-current Liabilities 72,551,603 81,816,403 9,264,800 12.77%
Total Liabilities 149,901,316 164,516,235 14,614,919 9.75%
Capital 10,396,223 10,396,223 0 0.00%
Capital Surplus 46,884 47,628 744 1.59%
Retained Earnings 26,159,961 26,908,961 749,000 2.86%
Equity Attributable to the Parent Company 36,222,881 36,020,191 (202,690) -0.56%
Total Equities 45,227,318 44,977,699 (249,619) -0.55%
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Reasons for variance over the past two years: No significant variance
Effect of said variance: none
Future strategy: The working capital generated from operations and utilization of bank financing is sufficient to support the needs of the Company’s operations.

2. Financial performance analysis (consolidated)

Unit: NT$1,000

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Year Variance
2019 2020
Item Difference %
Operating Revenue 256,058,888 258,494,907 2,436,019 0.95%
Gross Profit 87,848,420 88,080,510 232,090 0.26%
Operating Profit 13,049,894 12,144,973 (904,921) -6.93%
Total Non-operating Income (Expenses) 2,114,293 1,665,483 (448,810) -21.23%
Net Pre-tax Income 15,164,187 13,810,456 (1,353,731) -8.93%
Net Income 12,112,109 11,340,258 (771,851) -6.37%
Other consolidated profit and loss (359,692) (1,116,510) (756,818) 210.41%
Total comprehensive income 11,752,417 10,223,748 (1,528,669) -13.01%
Net Income Attributable to the Parent Company 10,542,860 10,238,162 (304,698) -2.89%
Total Comprehensive Income Attributable to the
10,116,764 9,151,963 (964,801) -9.54%
Parent Company
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Explanation of variance:
Decreases in Non-operating Income (Expenses): primarily due to decrease in interest income resulting from depreciation of US dollars.
Decreases in Other consolidated profit and loss: primarily due to depreciation of US dollars.
Factors that may impact the Company’s sales and financial status over the coming year and proposed responses: The Company expects that by developing innovative and differentiated products and services, we can maintain steady growth.

2020 ANNUAL REPORT 77

Financial Status, Financial Performance and Risk Management

3. Cash flow analysis

(1) Cash flow analysis for the past fiscal year:

Unit: NT$1,000

Cash Balance at the Beginning of 2020	Net Cash Infow from Operating Activities in 2020	Net Cash Outfows in 2020	Cash Surplus (Shortage)	Remedies for Cash Shortage	Remedies for Cash Shortage
				Investment Plan	Financial Plan
45,445,395	30,332,291	(29,214,779)	46,562,907	-	-

Operating activities: The net cash inflow from operating activities was NT$30.3 billion. The cash inflow remained steady primarily due to stable profits.
Investing activities: The net cash outflow from investing activities totaled about NT$8.9 billion, which was primarily due to acquisition of operations-related fixed assets.
Financing activities: The net cash outflow from financing activities totaled about NT$19.2 billion, mainly resulting from payment of lease liabilities and payment of cash dividends.

(2) Remedies for cash shortfall and liquidity analysis: Not applicable to PCSC.

(3) Cash flow analysis for the coming year:

Unit: NT$1,000

Cash Balance at the Beginning of 2021	Estimated Yearly Net Cash If f Oi	Estimated Yearly Net Cash	Anticipated Cash Surplus	Remedies for Cash Shortage	Remedies for Cash Shortage
	now rom peratng Activities	Outfow	(Shortage)	Investment Plan	Financial Plan
46,562,907	32,187,494	(31,733,986)	47,016,415	-	-

Operating activities: Stable revenue is expected in 2021, which should bring in a net cash inflow.
Investing activities: Investing outflows will primarily include the purchase of fixed assets.
Financing activities: Financing outflows are primarily expected to be the payment of cash dividends.

4. Major capital expenditures in recent years and their impact

(1) Major capital expenditures and sources of capital:

1. 7-ELEVEN Taiwan

Unit: NT$1,000

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78 2020 ANNUAL REPORT

Financial Status, Financial Performance and Risk Management

2. Major subsidiaries

Unit: NT$1,000

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Actual or Planned Actual or Planned Capital Expenditures
Actual or Planned Source Total Capital
Project Date of Project
of Capital Required
Completion 2020 2021 2022
Investments in new stores Working capital and loans Annual 4,661,622 1,295,276 1,676,250 1,690,095
Remodeling of existing stores Working capital and loans Annual 1,500,101 475,619 530,226 494,255
Store equipment purchases /
Working capital and loans Annual 1,408,402 339,062 556,801 512,539
replacement
Investments in IT equipment
(including purchases of hardware, Working capital and loans Annual 1,553,176 491,268 539,929 521,979
software and POS equipment)
Purchase and replacement
of logistics system or related Working capital and loans Annual 3,599,391 1,283,968 1,163,650 1,151,773
equipment
Other (e.g., establishment of fresh
food processing plants and logistics Working capital and loans Annual 152,328 3,142 91,641 57,546
centers and distribution centers)
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(2) Estimated benefits:

1. Anticipated increase in sales and gross profits:

Unit: NT$1,000

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Year Item Sales Value Gross Profit
2021 Investments in new and existing stores 5,086,224 1,566,048
2022 Investments in new and existing stores 5,238,811 1,617,869
2023 Investments in new and existing stores 5,395,975 1,671,404
2024 Investments in new and existing stores 5,557,854 1,726,711
2025 Investments in new and existing stores 5,724,590 1,783,848
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2. Other potential benefits:

The year’s capital expenditures were primarily used to introduce new stores, expand store space, and set up new IT equipment, which we expect to have the following benefits:

Expanding to larger format stores provides space for additional seating and creates an inviting shopping experience. Extra room gives customers a place away from home, school, or the office where they can enjoy a comfortable space to eat or relax. IT equipment optimization, on the other hand, will improve operational efficiency.
Adding combination elements in stores to provide consumers with more shopping alternatives.

5. Analysis of investments in subsidiaries in recent years

(1) Investment policy and plan:

PCSC invests in a wide array of business including convenience stores, food and beverages, cosmetics and pharmacies, department stores, super and hypermarkets, and an online shopping website. In order to provide customers with a rich, varied shopping experience, PCSC continually expands into new areas. At the end of 2020, PCSC and its subsidiaries boasted a total of 10,526 retail locations, 2,977 of which are 7-ELEVEN branches in the Philippines. PCSC continues to increase its presence in the nation. Starbucks Taiwan have now exceeded 503 locations. They are working hard to make their stores unique as they continue to maintain their leading position in the market. In the future, we will continue to focus on core business operations to enhance the effectiveness of longterm investments.

2020 ANNUAL REPORT 79

Financial Status, Financial Performance and Risk Management

(2) Reasons for profits or losses at affiliated enterprises:

Major long-term investments in 2020 include the following:

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

Unit: NT$1,000
Description
Amount of Investment in 2019 Main reasons for profit / loss
Company
President Chain Store (Shanghai) Ltd.(Note) 523,594 Enrich working capital.
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Note: Funded by President Chain Store (Hong Kong) Holdings Ltd.

(3) Improvement Plan for Investments in Affiliated Enterprises and Investment Plans for the Coming Year To improve performance at affiliated enterprises currently showing a loss, the Company will adjust the business model, improve the product mix offered to enhance the efficiency and performance.

6. Risk management policies and organizational structure and risk assessment

(1) Risk management policies and structure

PCSC endeavors to maintain a comprehensive risk management system that works to manage risks for the entire organization including consolidated subsidiaries. The Board of Directors, managers at all levels, and employees work together to promote proper implementation of risk management.

In addition to observing relevant regulations, PCSC identifies, analyzes, measures, monitors, responds to, reports, and mitigates all potential risks that could arise from operating activities based on the characteristics and impact of such risks. While working to achieve PCSC’s strategic goals, we can also effectively maintain and control potential risk.

For the purpose of coordinating the management of various types of risks of the Company, formulating risk management policies and management scope, planning future operation conditions, and strengthening information security management, in July 2020, the Board resolved to place the “Risk and Information Security Management Office” under the CSR Committee.

The Company’s primary risk management structure and the various business units responsible for risk management and its implementation are discussed below:

Strategic and operational risks: Each business unit and subsidiary is responsible for the planning and risk assessment of any new investments or operational decisions. PCSC’s Office of the President regularly conducts related indicator analysis and tracks performance at the PCSC and affiliated enterprises quarterly meetings and regularly scheduled themed project operation reviews for key affiliated enterprises. Appropriate adjustments to operational strategy are made in accordance with changes in market competition and consumer trends to ensure each business entity’s strategy is in line with its operational goals and strategic vision.
Financial, liquidity, and credit risks: To respond to changes in related regulations, policies, and the market, PCSC’s Finance Office defines a range of strategies, procedures, and indicators to perform regularly-scheduled analysis and evaluation of changes in risk status and respond appropriately in order to mitigate potential risks for the entire company.
Market risks: Each business unit analyses and assesses major government policies, laws, and technological advances both in Taiwan and abroad and formulates appropriate response measures to reduce potential future risks. In addition, PCSC established an inter-division Regulation Identification Team and holds regular Regulation Identification Meetings to track the latest changes in Taiwan laws and regulations and formulate appropriate responses. Also, the Crisis Management Team, made up of division managers, was established effectively control and manage any potential or existing market risks and crises.
Through risk assessment and regulatory reviews, the Internal Audit Office draws up an annual audit plan and selfinspection procedures and methods, which, when implemented, help to control aforementioned risks. The results of these inspections shall be reported periodically to the Board of Directors.

(2) Risk Assessment and Analysis

Impact on Company profits and responses to fluctuations in interest rates, foreign exchange rates, and inflation: (1) Changes in interest rates:
In 2020, Taiwan’s annual economic growth rate was 3.11% and the National Accounting Office estimated that the annual economic growth rate in 2021 would be 4.64%. Based on the domestic and international epidemic situations and the economic and financial situations, the global economy will recover slowly in 2021 due to the slowdown of the epidemic. Countries will continue monetary easing policies and interest rates are expected to remain stable at low levels.
Response: PCSC will continue to watch interest rate trends, negotiate prices with various financial institutions, and use other capital market financing channels to control the Company’s financing costs.

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(2) Changes in exchange rates:

The Company buys and sells mainly in NT dollars and foreign currency-denominated products account for a very small proportion of total sales, so fluctuations in exchange rates have no significant effect on our profits and losses.

(3) Inflation:

Affected by the COVID-19 epidemic in 2020, the international crude oil and raw material prices fell. The Directorate-General of Budget and, Accounting and Statistics announced that the Consumer Price Index (CPI) decreased by 0.23%, the lowest in the past five years. Looking ahead to 2021, because the CPI only turned positive in November last year, the comparison base is low and the international crude oil may rise, the Directorate-General of Budget and, Accounting and Statistics predicts that the CPI will rise by a moderate 1.33% in 2021. There is no concerns about inflation.
Response: PCSC has been enhancing product value, improving gross profit structures, enhancing the membership economy, and providing service platforms that customers rely on to reduce the pressure of increasing costs and impact of inflation on operations.
Policies regarding engagement in highly risky or highly leveraged investments, loans to others, endorsements, or derivatives trading; reasons for profits or losses from such activities; and proposed response measures: (1) Company policy:
PCSC focuses on our retail and distribution business and has not engaged in risky or highly-leveraged investments. However, in order to effectively control and manage business-related risks and enhance the safety of financial operations, PCSC has structured a set of internal management and operational procedures on the basis of the relevant regulations from the Securities and Futures Bureau. These requirements and procedures include “Procedures for Loading of Funds”, “Procedures for Acquisitions or Disposals of Assets” and “Procedures for Making of Endorsements”. In accordance with the Securities and Futures Bureau’s Guidelines Governing Establishment of Internal Control Systems at Publicly Held Companies, PCSC’s Internal Audit Office and subsidiaries have defined a set of risk management and assessment procedures.
(2) Status of loans from PCSC and affiliated enterprises to others, endorsements, and derivatives trading and reasons for profit or losses of such activities:
a. Loans to others: As of December 31, 2020, The Company and its subsidiaries have no loans to others.
b. Endorsements and guarantees: The Company and its subsidiaries have not offered endorsements.
c. Derivatives: The Company and its subsidiaries are not engaged in the trade of derivatives.
(3) Future response measures:
a. The main goal of the risk control and hedging strategy implemented by PCSC is to avoid operational risks. To this end, should the Company utilize derivatives, it should be to establish a hedging position. Financial products shall be selected for the purpose of hedging operational risks resulting from interest expenses, assets, or liabilities.
b. PCSC’s Finance Office is responsible for managing the Company’s derivatives trading position and performs routine market evaluations. If the Finance Office discovers unusual trading or losses, it shall take necessary action and report the situation to the Board immediately. In addition, the Company also conducts routine performance evaluations of derivative trades to ensure they are in line with our operating strategy and that the risks are maintained within the Company’s risk tolerance.
R&D Plans and Projected Investment:
(1) Membership System: We have integrated Group memberships and provided members a single account number that can access all Group channels, facilitating accumulation and redemption of reward points.
(2) Point System: Through APP-connected multiple channels and functional services, PCSC expanded OPEN POINT members living sphere and introduced cooperation with external points platform to accelerate the accumulation of points and expand the value of points.
(3) Diversified payment tools: In response to changes in digital consumption patterns, PCSC established related systems, expanded payment tool service types and platform connections to provide customers a convenient way to pay.
(4) R&D Plans for 2021 are expected to cost NT$84.69 million and include the following:

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

Additional Funds Expected Date of
Plan Current Progress Main Factors Determining the Success of Future R&D
to be Invested Completion
Optimized related service platform functions in response to
Optimization of member system System in development NT$35.37 million 2021/12
development trends in the membership system.
Optimization of stores and marketing
System in development NT$21.33 million 2021/12 Activity diversity
activities
Optimization of data system System in development NT$12.16 million 2021/12 Optimize data exchange system
Optimization of online payment System in development NT$8.79 million 2021/10 Optimize payment functions and services
Optimization of Myship services System planning NT$7.04 million 2021/09 Provide better selling services
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2020 ANNUAL REPORT 81

Financial Status, Financial Performance and Risk Management

Financial impacts of and responses to major changes to domestic and overseas laws and government policies: (1) PCSC has already taken appropriate measures to respond to recent changes in government policies and laws in Taiwan and overseas, so these changes did not significantly impact the Company’s financial operations.

(2) In response to the Regulations Governing the Appointment and Exercise of Powers by the Remuneration Committee of a Company Whose Stock is Listed on the Stock Exchange or Traded Over the Counter announced in March 2011 by the Securities and Futures Bureau, PCSC established the Remuneration Committee in June 2011. In June 2012, PCSC held new elections for the Company’s Board of Directors, invited independent directors to the Board, and established the Audit Committee in response to the March 2011 announcement of the Applicable Scope of Appointment of Independent Directors for Publicly Traded Companies and to optimize the Company’s corporate governance. In response to amendments to the Company Act, PCSC implemented electronic voting and voting by polls at the General Shareholders’ Meeting in 2013. In 2014, PCSC formulated Ethical Best Practice Principles and Corporate Governance Best Practice Principles, and in 2015 further added the Ethical Operating Procedures and Behavior Guidelines and Procedures Governing Applications to Suspend and Resume Trading. In July 2015, Article 235 of the Company Act was revised, while Article 235-1 was added. In response, the General Shareholders’ Meeting passed an amendment to the Articles of Incorporation in June 2016 to change the sources and order of employee and director remuneration to comply with the law. PCSC established the interdepartmental Regulations Identification Team, which issues a quarterly report and keeps up to date on the latest regulatory changes.

Financial impacts of and responses to technological and industry changes: (1) Due to the epidemic, all channels have been working hard to extend sales opportunities off the shelf to meet the needs of customers shopping online. 7-ELEVEN provides online sales channels through digital service tools, such as mobile ordering and pick up, i-preorder, and delivery platforms, for customers to place orders at home and choose to pick up the goods in the store or receive them at home.

(2) In addition to the online platforms, the intelligent vending machines are also effective equipment providing services for the stores to develop and extend business opportunities. PCSC continues to seek innovation and change as well as contemplate more diversified business models.

(3) As technology advances rapidly, most risks to information safety are caused by network environment and employee behavior, including hacker attacks, traffic flow attacks, software (ransom) virus, phishing, spam, software updates, and access control. Possible effects on the Company include internal data being stolen or altered, account losses, impact on daily operations, and damage to Company reputation. The Company has drawn up internal information safety management regulations and regularly conducts inspections to ensure that they are being implemented, performs regular system information safety testing, utilizes information safety equipment, such as firewalls, to review user behavior, enhance anti-virus mechanisms and encryption mechanisms. Our personal data protection measures have received TPIPAS certification and are tested and evaluated regularly by a third party and employees receive regular training to enhance information safety awareness. Information security risk management matters are also regularly reported to the Board through the Ethical Operations Team. PCSC’s board of directors added the “Risk and Information Security Management Office” in July 2020 to coordinate the management of various types of company risks, formulate risk management policies and management scope, plan future operations, and strengthen information security management.

Impacts of changes in corporate image on corporate crisis management and related response measures: PCSC does our utmost to provide the public with safe, convenient, high-quality products and services. Our standards are higher than those required by law to best protect the interests of our customers. As a good corporate citizen, PCSC actively takes part in social welfare and environmental protection activities as we work to achieve our goal of sustainable corporate development. In 2020, PCSC was continued to listed among the Dow Jones Sustainability World Index and Emerging Markets Index and won the Industry Leader award. PCSC was ranked in the top 5% in the Taiwan Corporate Governance Evaluation System for the sixth year running and was selected as FTSE4Good Emerging Index, MSCI Global Sustainability Index, MSCI Global SRI Indexes, TWSE Corporate Governance 100 Index, FTSE4Good TIP Taiwan. PCSC was also presented the CSR Corporate Citizen Award by CommonWealth Magazine.
Furthermore, PCSC has also implemented comprehensive disaster response measures to deal with any natural or manmade event. Should a crisis occur, PCSC headquarters will immediately convene an interdepartmental crisis management team, which is responsible for taking stock of the situation, discussing responses, and rapidly working to minimize the effect of the crisis on the Company. PCSC also holds regular internal regulation identification meetings and has fully implemented Taiwan Personal Information Protection and Administration System (TPIPAS) to keep track of and ensure the Company is in full compliance with all relevant laws, regulations, and requirements. The Company also works closely with government agencies, with our locations functioning as service points. To confront the impacts of increasingly frequent climate disasters, the key is real-time information. In coordination with the Executive Yuan, Water Resources Agency, and Ministry of Transportation, PCSC has become the first private company incorporated into the Disaster Prevention and Rescue System to provide the Taiwanese public with early warning information and communications during disaster relief operations.
Anticipated benefits, risks of M&A activity and appropriate responses: Not applicable

82 2020 ANNUAL REPORT

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Anticipated benefits, risks of factory expansion and appropriate responses: Not applicable
Anticipated risks of concentrating purchasing and distribution and appropriate responses: Not applicable
Possible effects and risks caused by large transfers or changing hands of shares by directors, supervisors, or major shareholders who hold an over 10% stake in the Company and proposed responses: Not applicable
Possible benefits and risks to the Company due to a change in operating rights and proposed responses: Not applicable
All major litigation, non-litigation disputes, and administrative disputes that involve the Company, the Company’s Directors, Supervisors, President, responsible parties, major shareholders with over 10% stake, or affiliated enterprises should be disclosed as long as the outcome may have a significant impact on shareholder equity or share prices, whether said dispute has been settled or is still pending. The disclosure should include the factual matters of the dispute, underlying monetary values, date actions commenced, the main parties involved, and response measures taken as of the Annual Report publication date: Not applicable
Other major risks and proposed responses: None

7. Other important items: None

2020 ANNUAL REPORT 83

8 Specific Notes

1. Information about affiliated companies:

2020 Consolidated Business Report of Affiliated Companies: Please refer to pages 217 – 227.

2. Private Placement of Securities: None (in the most recent fiscal year and up to the issue date of this Annual Report)

3. PCSC Securities Acquired, Disposed of, or Held by Subsidiaries: None (in the most recent fiscal year and up to the issue date of this Annual Report)

4. Other Supplementary Information Required: None

5. Situations described in Article 36, Paragraph 2, Item 2 of the Securities and Exchange Act: In the most recent fiscal year and up to the issue date of this Annual Report, PCSC has not experienced any events as described in Article 36, Paragraph 2, Item 2 of the Securities and Exchange Act that have had major impacts on shareholders’ equity or share prices.

84 2020 ANNUAL REPORT

Appendix

86 1 、 Positions Concurrently Held by Director in Other Companies
88 2 、 Positions Concurrently Held by Management in Other Companies
89 3 、 Statement of Internal Control System
90 4 、 Audit Committee's Review Report
91 5 、 Consolidated Financial Statements and Report of Independent Accountants
157 6 、 Parent Company Only Financial Statements and Report of Independent Accountants
217 7 、 Consolidated Business Reports of Affiliated Companies

2020 ANNUAL REPORT 85

Appendix Positions Concurrently Held by Director in Other Companies

As of December 31, 2020

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Name Current Position in Other Companies
Lo, Chih-Hsien Chairman : Uni-President Enterprises Corp., President Natural Industrial Corporation, Ton Yi Industrial Corp.,
TTET Union Corporation, Prince Housing & Development Corp., President Packaging Industrial
Corp., Woongjin Foods Co., Ltd., Daeyoung Foods Co., Ltd., President International Development
Corp., Uni-President China Holdings Ltd., Changjiagang President Nisshin Food Co., Ltd.,
ScinoPharm Taiwan, Ltd., Uni-President (Philippines) Corp., Uni-President (Thailand) Ltd., Uni-
President (Vietnam) Co., Ltd., Uni-President Enterprises (China) Investment Co., Ltd., Uni-
President Cold-Chain Corp., Presco Netmarketing Inc., Uni-President Dream Parks Co., President
Century Corp., President Property Corporation, Nanlien International Corp, Prince Real Estate
Co., Times Square International Holding Co., Times Square International Stays Corporation, Time
Square International Hotel Corporation, Cheng-Shi Investment Holding Co.
Vice Chairman : President Nisshin Corp.
Director : Presicarre Corporation, Uni-Wonder Corporation, Uni-President Organics Corp., Uni-President
Glass Industrial Co., Ltd., Cayman President Holdings Ltd., Kai Yu (BVI) Investment Co., Ltd.,
President Fair Development Corp., Uni-President Southeast Asia Holdings Ltd., Uni-President
Asia Holdings Ltd., Uni-President Hong Kong Holdings Limited, Champ Green Capital Limited,
Champ Green (Shanghai) Consulting Co., Ltd., Guangzhou President Enterprises Co., Ltd.,
Fuzhou President Enterprises Co., Ltd., Xinjiang President Enterprises Food Co., Ltd., Wuhan
President Enterprises Food Co., Ltd., Kunshan President Enterprises Food Co., Ltd., Chengdu
President Enterprises Food Co., Ltd., Shenyang President Enterprises Co., Ltd., Harbin President
Enterprises Co., Ltd., Hefei President Enterprises Co., Ltd., Zhenzhou President Enterprises Co.,
Ltd., Beijing President Enterprises Drinks Co., Ltd., Uni-President Enterprise (Kunshan) Food
Technology Co., Ltd., Nanchang President Enterprises Co., Ltd., Uni-President Trading (Hubei)
Co., Ltd., President (Shanghai) Trading Co., Ltd., Kunming President Enterprises Food Co., Ltd.,
Yantai Tongli Beverage Industries Co., Ltd., Changsha President Enterprises Co., Ltd., Bama
President Mineral Water Co., Ltd., Nanning President Enterprises Co., Ltd., Zhanjiang President
Enterprises Co., Ltd., Chongqing President Enterprises Co., Ltd., Taizhou President Enterprises
Co., Ltd., Akesu President Enterprises Co., Ltd., Changchun President Enterprises Co., Ltd.,
Uni-President (Shanghai) Pearly Century Co., Ltd., Baiyin President Enterprises Co., Ltd.,
Hainan President Enterprises Co., Ltd., Guiyang President Enterprises Co., Ltd., Jinan President
Enterprises Co., Ltd., Hangzhou President Enterprises Co., Ltd., Wuxue President Mineral Water
Co., Ltd., Shijiazhuang President Enterprises Co., Ltd., Xuzhou President Enterprises Co., Ltd.,
Henan President Enterprises Co., Ltd., President (Kunshan) Trading Co., Ltd., Shaanxi President
Enterprises Co., Ltd., Jiangsu President Enterprises Co., Ltd., Changbaishan Mountain President
Enterprises (Jilin) Mineral Water Co., Ltd., Ningxia President Enterprises Co., Ltd., President
Enterprises (Shanghai) Co., Ltd., President Enterprises (Inner Mongolia) Co., Ltd., Shanxi
President Enterprises Co., Ltd., UniPresident Enterprise (Hutubi) Tomato Products Technology
Co., Ltd., Uni-President Enterprises (Shanghai) Drink & Food Co., Ltd., Uni-President Enterprises
(Tianjin) Co., Ltd., Hunan President Enterprises Co., Ltd., Uni-OAO Travel Service Corp., President
Packaging Holdings Ltd., Kuang Chuan Dairy Co., Ltd., Kuang Chuan Foods Ltd., President
Energy Development (Cayman Islands) Ltd., Uni-President Development Corp., President
Professional Baseball Team Corp., Tait Marketing & Distribution Co., Ltd., Wei Lih Food Industrial
Co., Ltd., Howard Beach Resort Kenting Co.,Ltd., President Chain Store (BVI) Holdings Ltd.,
President Chain Store (Labuan) Holdings Ltd., Retail Support International Corp., Uni-President
Assets Holdings Ltd., Prince Property Management Consulting Co, Kao Chuan Inv. Corp.
Supervisor : Infinity Holdings Ltd., Eternity Holdings Ltd.
President : Presco Netmarketing Inc.
Kao, Shiow-Ling Chairman : Infinity Holdings Ltd., Eternity Holdings Ltd., President Fair Development Corp., Uni-President
Department Store Corp., President Being Corp., President Pharmaceutical Corp., President
Drugstore Business Corp., Kao Chuan Inv. Corp.,
Director : Uni-President Enterprises Corp., Uni-Wonder Corporation, Ton Yi Industrial Corp., Prince Housing
& Development Corp., President International Development Corp., ScinoPharm Taiwan, Ltd.,
President Century Corp., Uni-President Development Corp., President (Shanghai) Health Product
Trading Company Ltd, Beauty Wonder (Zhejiang) Trading Co.,Ltd., Times Square International
Holding Co., Times Square International Hotel Co.
President : President Fair Development Corp., Kao Chuan Inv. Corp.,
Chen, Jui-Tang Chairman : President Lanyang Art Corporation, President Transnet Corp., President Collect Service Corp.,
Uni-Wonder Corporation, Uni-President Superior Commissary Corp., Ren-Hui Investment Corp.,
Kai Ya Food Co., Ltd.
Vice Chairman : Philippine Seven Corp.
Director : Uni-President Development Corp., President International Development Corp., PCSC (China)
Drugstore Ltd., President Chain Store (Hong Kong) Holdings Limited, Uni-President Logistics (BVI)
Holdings Limited., Uni-President Enterprises Corp., Nanlien International Corporation.
President : Ren-Hui Investment Corp.
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86 2020 ANNUAL REPORT

Positions Concurrently Held by Director in Other Companies

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Name Current Position in Other Companies
Huang, Jui-Tien Chairman : Wisdom Distribution Service Corp., Retail Support International Corp., Capital Marketing
Consultant Corp., President Chain Store Tokyo Marketing Corporation., iCASH Corp., Beauty
Wonder (Zhejiang) Trading Co., Ltd., President (Shanghai) Health Product Trading Company Ltd.,
Tait Marketing & Distribution Co., Ltd.
Director : President Drugstore Business Corp., President Pharmaceutical Corp., President Transnet
Corp., President Collect Service Corp., Books.com Co., Ltd., Uni-Wonder Corporation, Uni
President Cold-Chain Corp., President Information Corp., President Fair Development Corp.,
Limited, President International Development Corp., Philippine Seven Corp., President Chain
Store (Shanghai) Ltd., Shan Dong President Yinzuo Commercial Limited, President Chain Store
(Zhejiang) Ltd., President Chain Store (BVI) Holdings Ltd., PCSC (China) Drugstore Limited,
President Chain Store (Labuan) Holdings Ltd., President Chain Store (Hong Kong) Holdings
Limited, President Pharmaceutical (Hong Kong) Holdings Limited, Ren Hui Holding Co., Ltd., Uni-
President Foodstuff (BVI) Holdings Ltd., Changjiagang President Nisshin Food Co., Ltd., Shanghai
Songjiang President Enterprises Co., Ltd., Zhongshan President Enterprises Co., Ltd.
President : President Pharmaceutical (Hong Kong) Holdings Limited.
Huang, Jau-Kai Chairman : Uni-President Vender Corp.
Director : Ton Yi Industrial Corp., Woongjin Foods Co., Ltd., Daeyoung Foods Co., Ltd., Uni-President
Marketing Co., Ltd., Uni-President (Vietnam) Co., Ltd., Uni President Cold-Chain Corp.
Supervisor : Uni-President (Korea) Co., Ltd.
President : Uni-President Enterprises Corp.
Su, Tsung-Ming Chairman : President Life Sciences Co., Ltd., Tong Yu Investment Corp., Uni-President Development Corp.,
AndroScience Corp.
Director : Grand Bills Finance Corporation, President International Development Corp., Uni-President
China Holdings Ltd., ScinoPharm Taiwan, Ltd., President Tokyo Corporation, Uni-President Hong
Kong Holdings Limited, President (BVI) International Investment Holdings Ltd., President Energy
Development (Cayman Islands) Ltd., President Life Sciences Cayman Co., Ltd., SPT International,
Ltd., President Tokyo Auto Leasing Corporation, Tong-Sheng Finance Leasing Co., Ltd., Tong-
Sheng (Suzhou) Car Rental Co., Ltd., Tanvex Biologics, Inc., CDIB & Partners Investment Holding
Corporation, Xiang Lu Industrial Ltd.
Supervisor : Presicarre Corporation, Uni-President Enterprises (China) Investment Co., Ltd., Presco
Netmarketing, Inc.
President : President International Development Corp., ScinoPharm Taiwan, Ltd., President Property
Corporation.
Wu, Liang-Feng Chairman : Zhongshan President Enterprises Co., Ltd., Tianjing President Enterprises Food Co., Ltd., Qingdao
President Feed & Livestock Co., Ltd., Master Channels Corporation.
Director : TTET Union Corporation, Changjiagang President Nisshin Food Co., Ltd., President Nisshin Corp.
President : Changjiagang President Nisshin Food Co., Ltd.
Wu, Kun-Lin Chairman : Chang-Tong Enterprise Corp., PT. Uni President Indonesia, Uni-President Oven Bakery Corp.
Director : Changjiagang President Nisshin Food Co., Ltd., President Nisshin Corp.
Wu, Tsung-Pin Chairman : Tung-Ren Pharmaceutical Corp., Kai Nan Investment Co., Ltd.
Director : Prince Housing & Development Corp., President Fair Development Corp., ScinoPharm Taiwan,
Ltd., Uni-President (Vietnam) Co., Ltd., Uni-President Hong Kong Holdings Limited, Kuang Chuan
Dairy Co., Ltd., Kuang Chuan Foods Ltd., Tung Lo Developmnt Co., Ltd., Tone Sang Construction
Corp., Prince Real Estate Co., Times Square International Holding Co., Times Square International
Hotel Co., Cheng-Shi Investment Holding Co.
Supervisor : President Kikkoman Inc., Woongjin Foods Co., Ltd., Daeyoung Foods Co., Ltd., Kunshan
President Kikkoman Biotechnology Co., Ltd., President International Development Corp., President
Kikkoman Zhenji Foods Co., Ltd., President Century Corp., President Professional Baseball Team
Corp., Ming Da Enterprises Co., Ltd., Nanlien International Corp., Times Square International
Stays Co.
Wu, Wen-Chi Director : Philippine Seven Corp., Uni-President (Singapore) Pte. Ltd.
Supervisor : President Transnet Corp., President Collect Service Corp., Books.com Co., Ltd., Uni-Wonder
Corporation, President Information Corp., President Chain Store (Shanghai) Ltd., President Chain
Store (Zhejiang) Ltd.
Wang, Wen-Yeu Independent : [Global Unichip Corp., KGI Securities Co., Ltd., Xintec Inc.]
Director
Hung, Yung- Director : [Hua Vi Venture Capital Corporation]
Chen
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2020 ANNUAL REPORT 87

As of December 31, 2020

Appendix Positions Concurrently Held by Management in Other Companies

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Name Current Position in Other Companies
Huang, Jui- Chairman : Wisdom Distribution Service Corp., Retail Support International Corp., Capital Marketing Consultant
Tien Corp., President Chain Store Tokyo Marketing Corporation., iCASH Corp., Beauty Wonder (Zhejiang)
Trading Co., Ltd., President (Shanghai) Health Product Trading Company Ltd., Tait Marketing &
Distribution Co., Ltd.
Director : President Drugstore Business Corp., President Pharmaceutical Corp., President Transnet Corp.,
President Collect Service Corp., Books.com Co., Ltd., Uni-Wonder Corporation, Uni President Cold-
Chain Corp., President Information Corp., President Fair Development Corp., Limited, President
International Development Corp., Philippine Seven Corp., President Chain Store (Shanghai) Ltd.,
Shan Dong President Yinzuo Commercial Limited, President Chain Store (Zhejiang) Ltd., President
Chain Store (BVI) Holdings Ltd., PCSC (China) Drugstore Limited, President Chain Store (Labuan)
Holdings Ltd., President Chain Store (Hong Kong) Holdings Limited, President Pharmaceutical (Hong
Kong) Holdings Limited, Ren Hui Holding Co., Ltd., Uni-President Foodstuff (BVI) Holdings Ltd.,
Changjiagang President Nisshin Food Co., Ltd., Shanghai Songjiang President Enterprises Co., Ltd.,
Zhongshan President Enterprises Co., Ltd.,
President : President Pharmaceutical (Hong Kong) Holdings Limited.
Chen, Jui-Tang Chairman : President Lanyang Art Corporation, President Transnet Corp., President Collect Service Corp., Uni-
Wonder Corporation, Uni-President Superior Commissary Corp., Ren-Hui Investment Corp., Kai Ya
Food Co., Ltd.
Vice Chairman : Philippine Seven Corp.
Director : Uni-President Development Corp., President International Development Corp., PCSC (China)
Drugstore Ltd., President Chain Store (Hong Kong) Holdings Limited, Uni-President Logistics (BVI)
Holdings Limited., Uni-President Enterprises Corp., Nanlien International Corporation.
President : Ren-Hui Investment Corp.
Hsieh, Lien- Chairman : Duskin Serve Taiwan Co., Ltd., Mister Donut Taiwan Corp.
Tang Director : President Transnet Corp., President Collect Service Corp., Books.com Co., Ltd., Uni-President Cold-
Chain Corp., Retail Support International Corp., President Chain Store Tokyo Marketing Corporation,
Philippine Seven Corp., Ren Hui Holding Co., Ltd.
Lin, Chi-Chang Chairman : Cold Stone Creamery Taiwan Ltd., President Chain Store Corporation Insurance Brokers Co., Ltd.
Director : Uni-President Cold-Chain Corp., Capital Marketing Consultant Corp., iCASH Corp., Philippine Seven
Corp.
Chang, Chairman : Qware Systems & Services Corp., President Information Corp.
Chia-Hua Director : iCASH Corp., Presco Netmarketing Inc.
President : President Information Corp.
Wu, Wen-Chi Director : Philippine Seven Corp., Uni-President (Singapore) Pte. Ltd.
Supervisor : President Transnet Corp., President Collect Service Corp., Books.com. Co., Ltd., Uni-Wonder
Corporation, President Information Corp., President Chain Store (Shanghai) Ltd., President Chain
Store (Zhejiang) Ltd.
Lee, Johnyih Director : Uni-President Assets Management Corp.
Supervisor : President Drugstore Business Corp., President Being Corp., Mech-President Corp., Uni-President
Department Store Corp., Duskin Serve Taiwan Co., Ltd., Mister Donut Taiwan Corp., Uni-President
Development Corp.
Lin, Hung- Chairman : President Logistic ShanDong Co., Ltd.
Chun Director : Shan Dong President Yinzuo Commercial Limited.
President : Shan Dong President Yinzuo Commercial Limited.
Hsieh, Kuan- Director : [President Chain Store (Shanghai) Ltd., President Cosmed Chain Store (Shen Zhen) Co., Ltd., ]
Hung President Chain Store (Zhejiang) Ltd., Zhejiang Uni-Champion Logistics Development Co., Ltd.
Hsu, Kwang- Director : [Uni-President Oven Bakery Corp., Uni-Wonder Corporation.]
Yu
Hsieh Hung, Director : [President Securities Corp.]
Hui-Tzu
Wu, Hui-Chen Chairman : [Mech-President Corp.]
Chang, Kuo- Chairman : Tung Lo Developmnt Co., Ltd.
Kuang Director : Uni-President Development Corp., Tone Sang Construction Corp., President Century Corp.
President : Uni-President Development Corp., Tung Lo Developmnt Co., Ltd.
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88 2020 ANNUAL REPORT

Appendix Statement of Internal Control System

Statement of Internal Control System of President Chain Store Corporation (translated from Chinese)

Date: February 26, 2021

According to the results of a self-assessment, President Chain Store Corporation (the” Company”) states the following with regard to its internal control system during the year 2020:

The Company acknowledges that the establishment, implementation and maintenance of internal control system are the responsibility of Board of Directors and management, and the Company has established the system. The internal control system is aimed to reasonably assure that the goals such as the effectiveness and the efficiency of operations (including profitability, performance and safeguard of assets), the reliability, timeliness and transparency of financial reporting and the compliance of applicable law and regulations are achieved.
The internal control system has inherent limitations. No matter how perfectly designed, an effective internal control system can provide only reasonable assurance of achieving the aforementioned three goals. Moreover, due to the change of environment and conditions, the effectiveness of internal control system will be changed accordingly. Nevertheless, the internal control system has self-monitoring mechanism, and the Company will take remedial action in response to any identified deficiencies.
The Company evaluates the effectiveness of design and operation of its internal control system based on the judgment items ruled in “Regulations Governing Establishment of Internal Control Systems by Public Companies” (collectively referred herein as "Regulations"). The judgment items of internal control system adopted by the Regulations are the process of management control, and there are five key components of internal control: (1) control environment, (2) risk assessment, (3) control activities, (4) information and communication, and (5) monitoring activities. Each component also includes a certain number of items, and seeing the Regulation for the foregoing items.
The Company assessed the effectiveness of design and operation of its internal control system according to the aforementioned Regulations.
Based on the foregoing results of evaluation, the Company believes that the internal control system (that includes the supervision and management of subsidiaries), to provide reasonable assurance over the aforementioned goals are accomplished, including the effectiveness and the efficiency of operations, the reliability, timeliness and transparency of financial reporting and the compliance of applicable law and regulations.
This statement will be the main content of Annual Report and Prospectus, and will be disclosed publicly. If the above contents contain any falsehood, concealment, or illegality, it will involve in legal liability under Article 20, 32, 171 and 174 of Securities and Exchange Law.
This statement has been approved by the meeting of Board of Directors held on February 26, 2021, and those 13 directors in presence all affirm at the contents of this statement.

President Chain Store Corporation

Chairman ： Lo, Chih-Hsien

President ： Huang, Jui-Tien

2020 ANNUAL REPORT 89

Appendix Audit Committee's Review Report

President Chain Store Corp.

Audit Committee’s Review Report

(Translation)

The Board of Directors has prepared the Company’s 2020 Business Report, Financial Statements, and Proposal for Allocation of 2020 profits. The independent auditors, Yi-Chang, Liang and Chien-Hung, Chou of PRICEWATERHOUSECOOPERS, TAIWAN audited PCSC’s Financial Statements and issued an audit report relating to the Financial Statements. The Business Report, Financial Statements, and Profit Allocation Proposal have been reviewed and determined to be correct and accurate by the Audit Committee members of President Chain Store Corp.. According to Article 219 of the Company Act, we hererby submit this report.

General Shareholders’ Meeting of PRESIDENT CHAIN STORE CORP. 2021

President Chain Store Corp.

Chairman of the Audit Committee Shu, Pei-Gi Date: May 3, 2021

90 2020 ANNUAL REPORT

Appendix Consolidated Financial Statements and Report of Independent Accountants

PRESIDENT CHAIN STORE CORP. AND SUBSIDIARIES Declaration of Consolidated Financial Statements of Affiliated Enterprises

For the year ended December 31, 2020, pursuant to “Criteria Governing Preparation of Affiliation Reports, Consolidated Business Reports and Consolidated Financial Statements of Affiliated Enterprises,” the company that is required to be included in the consolidated financial statements of affiliates, is the same as the company required to be included in the consolidated financial statements under International Financial Reporting Standards 10. And if relevant information that should be disclosed in the consolidated financial statements of affiliates has all been disclosed in the consolidated financial statements of parent and subsidiary companies, it shall not be required to prepare consolidated financial statements of affiliates.

Hereby declare,

PRESIDENT CHAIN STORE CORP. February 26, 2021

2020 ANNUAL REPORT 91

Consolidated Financial Statements and Report of Independent Accountants

INDEPENDENT AUDITORS’ REPORT

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

Opinion

We have audited the accompanying consolidated balance sheets of President Chain Store Corp. and its subsidiaries (the “Group”) as of December 31, 2020 and 2019, and the related consolidated statements of comprehensive income, of changes in equity, and of cash flows for the years then ended, and the notes to the consolidated financial statements, including a summary of significant accounting policies.

In our opinion, based on our audits and the reports of other auditors (please refer to the Other matter section), the accompanying consolidated financial statements present fairly, in all material respects, the consolidated financial position of President Chain Store Corp. and its subsidiaries as of December 31, 2020 and 2019, and its consolidated financial performance and its consolidated cash flows for the years then ended, in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and the International Financial Reporting Standards, International Accounting Standards, IFRIC Interpretations, and SIC Interpretations as endorsed by the Financial Supervisory Commission.

Basis for opinion

We conducted our audits in accordance with the Regulations Governing Auditing and Attestation of Financial Statements by Certified Public Accountants and generally accepted auditing standards in the Republic of China. Our responsibilities under those standards are further described in the Auditors’ responsibilities for the audit of the consolidated financial statements section of our report. We are independent of the Group in accordance with the Norm of Professional Ethics for Certified Public Accountants of the Republic of China, and we have fulfilled our other ethical responsibilities in accordance with these requirements. Based on our audits and the reports of other independent accountants, we believe the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Key audit matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the Group’s 2020 consolidated financial statements. These matters were addressed in the context of our audit of the consolidated financial statements as a whole, and in forming our opinion thereon, we do not provide a separate opinion on these matters.

Key audit matters for the Group’s 2020 consolidated financial statements are stated as follows:

Completeness and accuracy of retail sales revenue

Description

Please refer to Notes 4(25) and 6(25) to the consolidated financial statements for the accounting policy and the details of accounting relating to this key audit matter.

92 2020 ANNUAL REPORT

Consolidated Financial Statements and Report of Independent Accountants

Retail sales revenue is generated by point-of-sale (POS) terminals, which record the merchandise name, quantity, sales price and total sales amount of each transaction using pre-established merchandise master file data (including merchandise name, cost of inventory, retail price, sales promotions, etc.). After the daily closing process, each store manager uploads their sales information to the ERP (enterprise resource planning) system, which summarizes all sales and automatically generates sales revenue journal entries. Each store manager also prepares a daily cash report to record the sales information and payment methods (including cash, gift certificates, credit cards and electronic payment devices, etc.) and the cash deposited to the bank.

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

How our audit addressed the matter

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

Inspected whether additions and changes to the merchandise master file data had been properly approved and supported by relevant documents;
Inspected whether approved additions and changes to the merchandise master file data had been correctly entered in the merchandise master file;
Inspected whether merchandise master file data had been periodically transferred to POS terminals in stores;
Inspected whether sales information in POS terminals was periodically and completely transferred to the ERP system and automatically generated sales revenue journal entries;
Inspected manual sales revenue journal entries and relevant documents;
Inspected daily cash reports and relevant documents; and
Inspected whether cash deposit amounts recorded in daily cash reports were in agreement with bank remittance amounts.

Cost-to-retail ratio of retail inventory method

Description

Please refer to Notes 4(12) and 6(4) to the consolidated financial statements for the accounting policy and the details of accounting relating to this key audit matter.

As there are various kinds of merchandise, the retail inventory method is used to estimate the cost of inventory and the cost of goods sold. The retail inventory method uses the ratio of the cost of goods purchased to the retail value of goods purchased (known as cost-to-retail ratio) to calculate the cost of inventory and the cost of goods sold. The calculation of the cost-to-retail ratio highly relies on the goods purchased both at cost and retail price, and thus has been identified as a key audit matter.

How our audit addressed the matter

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

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

2020 ANNUAL REPORT 93

Consolidated Financial Statements and Report of Independent Accountants

Inspected whether additions and changes to the merchandise master file data (including merchandise name, cost of inventory, retail price, sales promotions, etc.) had been properly approved and the data correctly entered in the merchandise master file;
Inspected whether the cost and retail price of inventory purchased as per delivery receipts were in agreement with POS purchase records after acceptance of the inventory;
Inspected whether the POS records for the cost and retail price of inventory purchased were periodically and completely transferred to the ERP system and ascertain whether the records could not be changed manually; and
Calculated the cost-to-retail ratio to verify its accuracy.

Other matter – Reference to the audit of other auditors

We did not audit the financial statements of certain consolidated subsidiaries which were audited by other auditors. Therefore, our opinion expressed herein, Total assets of these subsidiaries amounted to NT$17,535,932 thousand and NT$17,667,481 thousand, representing 8.4% and 9.1% of the consolidated total assets as at December 31, 2020 and 2019, respectively, and the operating revenue amounted to NT$26,619,815 thousand and NT$32,407,436 thousand, representing 10.3% and 12.7% of the consolidated total operating revenue for the years then ended, respectively.

Other matters – Parent company - only financial reports

We have audited and expressed an unmodified opinion with an explanatory paragraph on the parent company only financial statements of President Chain Store Corp. as of and for the years ended December 31, 2020 and 2019.

Responsibilities of management and those charged with governance for the consolidated financial statements

Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and the International Financial Reporting Standards, International Accounting Standards, IFRIC Interpretations, and SIC Interpretations as endorsed by the Financial Supervisory Commission, and for such internal controls as management determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.

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

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

Auditor’s responsibilities for the audit of the consolidated financial statements

Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion.

94 2020 ANNUAL REPORT

Consolidated Financial Statements and Report of Independent Accountants

Reasonable assurance is a high level of assurance, but it is not a guarantee that an audit conducted in accordance with the general accepted auditing standard in the Republic of China will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial statements.

As part of an audit in accordance with the general accepted auditing standard in the Republic of China, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

Identify and assess the risks of material misstatement in the consolidated financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls.
Obtain an understanding of internal controls relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal controls of the Group.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Group to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures, and whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the Group audit. We remain solely responsible for our audit opinion.

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

2020 ANNUAL REPORT 95

Consolidated Financial Statements and Report of Independent Accountants

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the consolidated financial statements for the year ended December 31, 2020 and are, therefore, considered to be the key audit matters. We describe these matters in our auditor’s report unless the law or regulations preclude public disclosure about the matter, or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

Yi-Chang, Liang

Chien-Hung, Chou

For and on behalf of PricewaterhouseCoopers, Taiwan February 26, 2021

The accompanying consolidated 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 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.

2020 ANNUAL REPORT

PRESIDENT CHAIN STORE CORP. CONSOLIDATED BALANCE SHEETS

(Expressed in thousands of	(Expressed in thousands of	New Taiwan dollars, except as otherwise indicated)	New Taiwan dollars, except as otherwise indicated)	New Taiwan dollars, except as otherwise indicated)	New Taiwan dollars, except as otherwise indicated)
Assets	Notes	December 31, 2020		December 31, 2019
		AMOUNT	%	AMOUNT	%
Current assets 1100 Cash and cash equivalents 6(1) 1110 Financial assets at fair value through proft or loss - current 6(2) 1170 Accounts receivable, net 6(3) and 7 1200 Other receivables 1220 Current income tax assets 6(32) 130X Inventories, net 6(4) 1410 Prepayments 1470 Other current assets 11XX Total current Assets Non-current assets 1510 Financial assets at fair value through proft or loss - non-current 6(2) 1517 Financial assets at fair value through other comprehensive income-non-current 6(5) 1550 Investments accounted for using equity method 6(6) 1600 Property, plant and equipment, net 6(7)(30) and 8 1755 Right-of-use assets 6(8) and 7 1760 Investment property, net 6(10) and 8 1780 Intangible assets 6(11) 1840 Deferred income tax assets 6(32) 1900 Other non-current assets 6(12) and 8 15XX Total non-current assets 1XXX Total assets		$ 46,562,907 2,105,496 6,215,272 1,950,481 1,206 16,636,055 1,177,895 3,487,082	22 1 3 1 - 8 1 2	$ 45,445,395 1,696,300 5,808,480 1,460,354 95 15,659,112 1,195,719 2,968,350	23 1 3 1 - 8 1 1 38 - - 5 13 35 1 5 1 2 62 100
		78,136,394	38	74,233,805
		85,523 959,827 8,921,641 28,050,374 74,963,001 2,863,146 9,958,198 1,988,030 3,567,800	- - 4 13 36 1 5 1 2	85,565 807,115 9,255,939 26,018,322 67,489,612 1,506,798 10,171,442 1,860,217 3,699,819
		131,357,540	62	120,894,829
		$ 209,493,934	100	$ 195,128,634
Liabilities and Equity Notes		December 31, 2020		December 31, 2019
		AMOUNT	%	AMOUNT	%
Current Liabilities 2100 Short-term borrowings 6(14) and 8 2110 Short-term notes and bills payable 6(15) 2130 Contract liabilities-current 6(25) 2150 Notes payable 7 2170 Accounts payable 2180 Accounts payable - related parties 7 2200 Other payables 6(16) 2230 Current income tax liabilities 6(32) 2280 Lease liabilities-current 7 2300 Other current liabilities 6(17) 21XX Total current Liabilities Non-current liabilities 2527 Contract liabilities-non-current 6(25) 2540 Long-term borrowings 6(18) and 8 2570 Deferred income tax liabilities 6(32) 2580 Lease liabilities-non-current 7 2640 Net defned beneft liability-non-current 6(19) 2670 Other non-current liabilities, others 6(20) 25XX Total non-current liabilities 2XXX Total Liabilities Equity attributable to owners of the parent Share capital 6(21) 3110 Share capital - common stock Capital surplus 6(22) 3200 Capital surplus Retained earnings 6(23) 3310 Legal reserve 3320 Special reserve 3350 Unappropriated retained earnings Other equity 6(24) 3400 Other equity interest 31XX Equity attributable to owners of the parent 36XX Non-controlling interest 3XXX Total equity 3X2X Total liabilities and equity		$ 4,739,411 3,399,147 5,234,797 1,079,496 22,255,284 2,801,552 25,093,782 1,647,936 12,859,557 3,588,870	2 2 2 1 11 1 12 1 6 2	$ 6,014,658 - 3,443,383 1,214,702 20,897,055 2,690,640 26,596,505 1,410,428 11,932,751 3,149,591	3 - 2 1 11 1 14 1 6 1 40 - - 3 29 3 2 37 77 5 - 7 - 7 - 19 4 23 100
		82,699,832	40	77,349,713
		563,834 1,028,553 5,320,392 65,277,459 4,969,892 4,656,273	- 1 3 31 2 2	448,248 508,112 5,580,529 56,894,287 4,751,607 4,368,820
		81,816,403	39	72,551,603
		164,516,235	79	149,901,316
		10,396,223 47,628 14,369,228 380,187 12,159,546 ( 1,332,621 )	5 - 7 - 6 ( 1 )	10,396,223 46,884 13,314,081 - 12,845,880 ( 380,187 )
		36,020,191	17	36,222,881
		8,957,508	4	9,004,437
		44,977,699	21	45,227,318
		$209,493,934	100	$195,128,634

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

2020 ANNUAL REPORT 97

PRESIDENT CHAIN STORE CORP.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

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(Expressed in thousands of New Taiwan dollars, except as otherwise indicated)
Year ended December 31
Items Notes 2020 2019
AMOUNT % AMOUNT %
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$ 258,494,907 ( 170,414,397 )	100 ( 66 )	$ 256,058,888 ( 168,210,468 )
88,080,510	34	87,848,420
( 66,110,629 ) ( 9,763,392 ) ( 61,516 )	( 25 ) ( 4 ) -	( 65,434,377 ) ( 9,355,509 ) ( 8,640 )
( 75,935,537 )	( 29 )	( 74,798,526 )
12,144,973	5	13,049,894
505,639 2,044,025 13,798 ( 1,321,386 ) 423,407	- - - - -	793,898 2,084,434 ( 29,037 ) ( 1,216,000 ) 480,998
1,665,483	-	2,114,293
13,810,456 ( 2,470,198 )	5 ( 1 )	15,164,187 ( 3,052,078 )
11,340,258	4	12,112,109
$ 11,340,258	4	$ 12,112,109
($ 212,824 ) 152,712 ( 8,377 ) 50,250	- - - -	($ 10,060 ) 162,501 ( 1,965 ) 867
( 18,239 )	-	151,343
( 1,087,229 ) - ( 11,042 )	- - -	( 505,816 ) ( 783 ) ( 4,436 )
( 1,098,271 )	-	( 511,035 )
($ 1,116,510 )	-	($ 359,692 )
$ 10,223,748	4	$ 11,752,417
$ 10,238,162 1,102,096	4 -	$ 10,542,860 1,569,249
$ 11,340,258	4	$ 12,112,109
$ 9,151,963 1,071,785	4 -	$ 10,116,764 1,635,653
$ 10,223,748	4	$ 11,752,417
$	9.85	$
$	9.83	$

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

98 2020 ANNUAL REPORT

PRESIDENT CHAIN STORE CORP. CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

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(Expressed in thousands of New Taiwan dollars, except as otherwise indicated)
Equity attributable to owners of the parent
Retained Earnings Other equity interest
Unrealized
Financial gain or loss
Notes common stockShare capital - Capital surplus Legal reserve Special reserve Unappropriated retained statements translation financial assets on valuation of Total Non-controlling interest Total equity
differences at fair value
earnings
of foreign through other
operations comprehensive
Income
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$ 10,396,223	$ 45,059	$ 12,293,442	$ 398,859	$ 12,064,862	($ 279,829)	$ 333,434	$ 35,252,050	$ 8,772,977
- -	- -	- -	- -	10,542,860 7,696	- ( 590,079)	- 156,287	10,542,860 ( 426,096)	1,569,249 66,404
-	-	-	-	10,550,556	( 590,079)	156,287	10,116,764	1,635,653
- - - - - - -	- - - - 1,235 590 -	1,020,639 - - - - - -	- ( 398,859 ) - - - - -	( 1,020,639 ) 398,859 ( 9,148,676 ) - - - 918	- - - - - - -	- - - - - - -	- - ( 9,148,676 ) - 1,235 590 918	- - - ( 1,404,193 ) - - -
$ 10,396,223	$ 46,884	$ 13,314,081	$ -	$ 12,845,880	($ 869,908)	$ 489,721	$ 36,222,881	$ 9,004,437
$ 10,396,223	$ 46,884	$ 13,314,081	$ -	$ 12,845,880	($ 869,908)	$ 489,721	$ 36,222,881	$ 9,004,437
- -	- -	- -	- -	10,238,162 ( 133,765)	- ( 1,103,360)	- 150,926	10,238,162 ( 1,086,199)	1,102,096 ( 30,311)
-	-	-	-	( 10,104,397)	( 1,103,360)	150,926	9,151,963	1,071,785
- - - - - -	- - - - 744 -	1,055,147 - - - - -	- 380,187 - - - -	( 1,055,147 ) ( 380,187 ) ( 9,356,600 ) - - 1,203	- - - - - -	- - - - - -	- - ( 9,356,600 ) - 744 1,203	- - - ( 1,118,714 ) - -
$ 10,396,223	$ 47,628	$ 14,369,228	$ 380,187	$ 12,159,546	($ 1,973,268)	$ 640,647	$ 36,020,191	$ 8,957,508

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

2020 ANNUAL REPORT 99

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

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(Expressed in thousands of New Taiwan dollars, except as otherwise indicated)
Year ended December 31
Notes
2020 2019
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CASH FLOWS FROM OPERATING ACTIVITIES Consolidated proft before income tax for the year Adjustments to reconcile proft before income tax to net cash provided by operating activities Income and expenses having no effect on cash fows Gain on valuation of fnancial assets at fair value through proft or loss 6(2) Expected credit losses 12(2) Depreciation expense 6(7)(8)(26) Amortization expense 6(26) Depreciation on investment property 6(10) Finance costs 6(31) Share of proft of associates and joint ventures accounted for using equity method 6(6) (Gain) loss on disposal of property, plant and equipment, net 6(30) Gain on disposal of investment property, net Gain from lease modifcation 6(30) Interest income 6(28) Dividend income 6(29) Other income recognized from rent concessions 6(8) Reversal of Impairment loss on property, plant and equipment 6(7) Changes in assets/liabilities relating to operating activities Net changes in assets relating to operating activities Financial assets at fair value through proft 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 defned beneft liabilities - non-current Cash infow generated from operations Interest received Income tax paid Interest paid Dividend received Net cash provided by operating activities	$ 13,810,456 ( 9,971 ) 61,516 19,509,685 562,597 16,651 1,321,386 ( 423,407 ) ( 20,007 ) ( 2,682 ) ( 79,685 ) ( 505,639 ) ( 61,961 ) ( 145,297 ) ( 472 ) ( 399,225 ) ( 468,308 ) ( 500,212 ) ( 976,943 ) 17,824 ( 518,732 ) 1,791,414 1,469,141 ( 135,206 ) ( 1,886,144 ) 360,201 115,586 5,461 32,908,027 515,724 ( 2,571,501 ) ( 1,321,410 ) 801,451 30,332,291	$ 15,164,187 ( 10,108 ) 8,640 18,177,202 574,709 17,031 1,216,000 ( 480,998 ) 11,428 - ( 58,910 ) ( 793,898 ) ( 49,542 ) - ( 13,618 ) ( 841,967 ) ( 552,547 ) 63,609 ( 537,455 ) ( 125,934 ) 36,544 600,194 439,012 ( 651,908 ) ( 60,331 ) 3,025 213,827 8,998 32,357,190 805,390 ( 3,380,452 ) ( 1,216,183 ) 270,286 28,836,231

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

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(Expressed in thousands of New Taiwan dollars, except as otherwise indicated)
Year ended December 31
Notes
2020 2019
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CASH FLOWS FROM INVESTING ACTIVITIES Acquisition of property, plant and equipment 6(34) Proceeds from disposal of property, plant and equipment Proceeds from disposal of investment property 6(10) Return of capital from fnancial assets at fair value through proft or loss Return of capital from fnancial assets at fair value through other comprehensive income Guarantee deposits paid Acquisition of intangible assets 6(11) Decrease (increase) in other non-current assets Net cash used in investing activities CASH FLOWS FROM FINANCING ACTIVITIES Decrease in short-term borrowings 6(35) Increase in short-term notes and bills payable 6(35) Increase in long-term borrowings 6(35) Repayment of long-term borrowings 6(35) Payments of lease liabilities 6(8)(35) Guarantee deposits received 6(35) Decrease in other non-current liabilities 6(35) Change in non-controlling interests Payment of cash dividends - the company 6(23)(35) Payment of cash dividends - subsidiaries 6(35) Net cash used in fnancing activities Effect of foreign exchange rate changes on cash and cash equivalents Increase (decrease) in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year	($ 9,022,473 ) 305,182 15,423 42 - ( 194,903 ) ( 237,485 ) 220,557 ( 8,913,657) ( 1,275,247 ) 3,399,147 865,130 ( 275,551) ( 11,662,395 ) 224,169 ( 4,415 ) ( 2,012 ) ( 9,356,600 ) ( 1,116,702) ( 19,204,476) ( 1,096,646) 1,117,512 45,445,395 $ 46,562,907	($ 7,249,215 ) 245,532 - 118 200,000 ( 144,974 ) ( 209,602 ) ( 533,389) ( 7,691,530) ( 1,223,127 ) - 165,030 ( 624,174 ) ( 11,329,825 ) 147,220 ( 222,130 ) ( 94,763 ) ( 9,148,676 ) ( 1,309,430) ( 23,639,875) ( 590,079) ( 3,085,253 ) 48,530,648 $ 45,445,395

2020 ANNUAL REPORT 101

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

DECEMBER 31, 2020 AND 2019 (Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

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 authorized for issuance by the Board of Directors on February 26, 2021.

3. APPLICATION OF NEW STANDARDS, AMENDMENTS AND INTERPRETATIONS

(1) Effect of the adoption of new issuances of or amendments to International Financial Reporting Standards (“IFRS”) as endorsed by the Financial Supervisory Commission (“FSC”) New standards, interpretations and amendments endorsed by FSC effective from 2020 are as follows:

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

Except for the following, the above standards and interpretations have no significant impact to the 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.
(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:

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

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

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

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Effective date by International
New Standards, Interpretations and Amendments
Accounting Standards Board
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Amendments to IFRS 3, ‘Reference to the conceptual framework’	January 1, 2022
Amendments to IFRS 10 and IAS 28, ‘Sale or contribution of assets between an investor and its associate or joint venture’	To be determined by International
	Accounting Standards Board
IFRS 17, ‘Insurance contracts’	January 1, 2023
Amendments to IFRS 17, ‘Insurance contracts’	January 1, 2023
Amendments to IAS 1, ‘Classifcation of liabilities as current or non-current’	January 1, 2023
Amendments to IAS 1, ‘Disclosure of accounting policies’	January 1, 2023
Amendments to IAS 8, ‘Defnition of accounting estimates’	January 1, 2023
Amendments to IAS 16, ‘Property, plant and equipment:proceeds before intended use’	January 1, 2022
Amendments to IAS 37, ‘Onerous contracts—cost of fulflling a contract’	January 1, 2022
Annual improvements to IFRS Standards 2018–2020	January 1, 2022

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

4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

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

(1) Compliance statement

The consolidated financial statements of the Group have been prepared in accordance with the “Regulations Governing the Preparation of Financial Reports by Securities Issuers”, International Financial Reporting Standards, International Accounting Standards, IFRIC Interpretations and SIC Interpretations as endorsed by the FSC (collectively referred herein as the “IFRSs”).

(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 conformity with IFRSs, requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the 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) All subsidiaries are included in the Group’s consolidated financial statements. Subsidiaries are all entities controlled by the Group. The Group controls an entity when the Group is exposed, or has rights, to variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. Consolidation of subsidiaries begins from the date the Group obtains control of the subsidiaries and ceases when the Group loses control of the subsidiaries.
(b) Inter-company transactions, balances and unrealized gains or losses on transactions between companies within the Group are eliminated. Accounting policies of subsidiaries have been adjusted where necessary to ensure consistency with the policies adopted by the Group.
(c) Profit or loss and each component of other comprehensive income are attributed to the owners of the parent and to the non-controlling interests. Total comprehensive income is attributed to the owners of the parent and to the non-controlling interests even if this results in the non-controlling interests having a deficit balance.

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(d) Changes in a parent’s ownership interest in a subsidiary that do not result in the parent losing control of the subsidiary (transactions with non-controlling interests) are accounted for as equity transactions, i.e. transactions with owners in their capacity as owners. Any difference between the amount by which the non-controlling interests are adjusted and the fair value of the consideration paid or received is recognized directly in equity.
(e) When the Group loses control of a subsidiary, the Group remeasures any investment retained in the former subsidiary at its fair value. That fair value is regarded as the fair value on initial recognition of a financial asset or the cost on initial recognition of the associate or joint venture. Any difference between fair value and carrying amount is recognized in profit or loss. All amounts previously recognized in other comprehensive income in relation to the subsidiary are reclassified to profit or loss on the same basis as would be required if the related assets or liabilities were disposed of. That is, when the Group loses control of a subsidiary, all gains or losses previously recognized in other comprehensive income in relation to the subsidiary should be reclassified from equity to profit or loss, if such gains or losses would be reclassified to profit or loss when the related assets or liabilities are disposed of.

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

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Ownership (%)
Name of investor Name of subsidiary Main business activities December December Description
31, 2020 31, 2019
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The Company	President Chain Store (BVI) Holdings Ltd.	Professional investment	100.00	100.00
The Company	PCSC (China) Drugstore Limited	Professional investment	92.20	92.20
The Company	Wisdom Distribution Service Corp.	Logistics and storage of publication	100.00	100.00
		and e-commerce
The Company	President Drugstore Business Corp.	Sales of cosmetics, medicine and	100.00	100.00
		daily items
The Company	Ren-Hui Investment Corp.	Professional investment	100.00	100.00
The Company	Capital Marketing Consultant Corp.	Enterprise management consultancy	100.00	100.00
The Company	President Lanyang Art Corporation	Art and cultural exhibition	100.00	100.00
The Company	Cold Stone Creamery Taiwan Ltd.	Sales of ice cream	100.00	100.00
The Company	President Chain Store Corporation Insurance Brokers	Insurance brokers	100.00	100.00
	Co., Ltd.
The Company	21 Century Co., Ltd.	Operation of chain restaurants	100.00	100.00
The Company	President Being Corp.	Sports and entertainment business	100.00	100.00
The Company	Uni-President Oven Bakery Corp.	Bread and pastry retailer	100.00	100.00
The Company	President Chain Store Tokyo Marketing Corp.	Trade and enterprise management	100.00	100.00
		consultancy
The Company	ICASH Corp.	Electronic ticketing and electronic	100.00	100.00
		payment
The Company	Uni-President Superior Commissary Corp.	Fresh food manufacture	90.00	90.00
The Company	Q-ware Systems & Services Corp.	Information software services	86.76	86.76
The Company	President Information Corp.	Enterprise information management	86.00	86.00
		and consultancy
The Company	Mech-President Corp.	Gas station, installment and	80.87	80.87
		maintenance of elevators
The Company	President Pharmaceutical Corp.	Sales of various health care products,	73.74	73.74
		cosmetics, and pharmaceuticals
The Company	President Collect Service Corp.	Collection agent	70.00	70.00
The Company	Uni-President Department Store Corp.	Department stores	70.00	70.00
The Company	President Transnet Corp.	Delivery service	70.00	70.00
The Company	Uni-President Cold-Chain Corp.	Low-temperature logistics and	60.00	60.00
		warehousing
The Company	Uni-Wonder Corp.	Coffee chain store	60.00	60.00
The Company	Duskin Serve Taiwan Co., Ltd.	Cleaning instruments leasing and	51.00	51.00
		selling
The Company	Books.com. Co., Ltd.	Retail business without shop	50.03	50.03
The Company	Retail Support International Corp.	Room-temperature logistics and	25.00	25.00	(a)
		warehousing
President Chain Store (BVI)	President Chain Store (Labuan) Holdings Ltd.	Professional investment	100.00	100.00
Holdings Ltd.
President Chain Store (BVI)	President Chain Store (Hong Kong) Holdings Limited	Professional investment	100.00	100.00
Holdings Ltd.
PCSC (China) Drugstore Limited	President Cosmed Chain Store (Shen Zhen) Co., Ltd.	Wholesale of merchandise	100.00	100.00
Wisdom Distribution Service	President Logistics International Corp.	Trucking	20.00	20.00
Corp.
Uni-President Cold-Chain Corp.	President Logistics International Corp.	Trucking	25.00	25.00
Uni-President Cold-Chain Corp.	Uni-President Logistics (BVI) Holdings Limited	Professional investment	100.00	100.00
Retail Support International Corp.	Retail Support Taiwan Corp.	Room-temperature logistics and warehousing	51.00	51.00
Retail Support International Corp.	President Logistics International Corp.	Trucking	49.00	49.00
Retail Support Taiwan Corp.	President Logistics International Corp.	Trucking	6.00	6.00
President Logistics International	Chieh Shun Logistics International Corp.	Trucking	100.00	100.00
Corp.

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Ownership (%)
Name of investor Name of subsidiary Main business activities December December Description
31, 2020 31, 2019
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Books.com. Co., Ltd.	Books.com. (BVI) Ltd.	Professional investment	- 100.00	(b)
Books.com. (BVI) Ltd.	Beijing Bokelai Customer Co.	Enterprise information consulting,	- 100.00	(c)
		network technology development
		and services
Mech-President Corp.	Tong Ching Corporation	Gas station	60.00 60.00
President Pharmaceutical Corp.	President Pharmaceutical (Hong Kong) Holdings	Sales of various health care products,	100.00 100.00
	Limited	cosmetics, and pharmaceuticals
President Pharmaceutical (Hong	President (Shanghai) Health Product Trading Company	Sales of various health care products,	100.00 100.00
Kong) Holdings Limited	Ltd.	cosmetics, and pharmaceuticals
President Chain Store (Labuan)	Philippine Seven Corporation	Convenience store	52.22 52.22
Holdings Ltd.
Philippine Seven Corporation	Convenience Distribution Inc.	Logistics and warehousing	100.00 100.00
Philippine Seven Corporation	Store Sites Holding, Inc.	Professional investment	100.00 100.00
President Chain Store (Hong	PCSC (China) Drugstore Limited	Professional investment	7.80 7.80
Kong) Holdings Limited
President Chain Store (Hong	President Chain Store (Shanghai) Ltd.	Convenience store	100.00 100.00
Kong) Holdings Limited
President Chain Store (Hong	Shanghai President Logistics Co., Ltd.	Logistics and warehousing	100.00 100.00
Kong) Holdings Limited
President Chain Store (Hong	Shan Dong President Yinzuo Commercial Limited	Supermarkets	40.00 40.00
Kong) Holdings Limited
President Chain Store (Hong	Shanghai Cold Stone Ice Cream Corporation Ltd.	Sales of ice cream	- 100.00	(d)
Kong) Holdings Limited
President Chain Store (Hong	President Chain Store (Taizhou) Ltd.	Logistics and warehousing	100.00 100.00
Kong) Holdings Limited
President Chain Store (Hong	President Chain Store (Zhejiang) Ltd.	Convenience store	100.00 100.00
Kong) Holdings Limited
President Chain Store (Hong	Beauty Wonder (Zhejiang) Trading Co.,Ltd.	Sales of cosmetics and medicine	100.00 100.00
Kong) Holdings Limited
Shanghai President Logistics Co.,	Zhejiang Uni-Champion Logistics	Logistics and warehousing	50.00 50.00
Ltd.	Development Co., Ltd.
Shanghai President Logistics Co.,	President Logistic ShanDong Co., Ltd.	Logistics and warehousing	100.00 100.00
Ltd.
Uni-President Logistics (BVI)	Zhejiang Uni-Champion Logistics Development Co.,	Logistics and warehousing	50.00 50.00
Holdings Limited	Ltd.
Ren-Hui Investment Corp.	Ren Hui Holding Co., Ltd.	Professional investment	100.00 100.00
Ren-Hui Holdings Co., Ltd.	Shan Dong President Yinzuo Commercial Limited	Supermarkets	15.00 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.
(d) The Company liquidated the subsidiary, Shanghai Cold Stone Ice Cream Corporation Ltd. and the process of cancellation of registration has been completed in November 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) Foreign currency translation

Items included in the financial statements of the Group are measured using the currency of the primary economic environment in which the Group operates (the “functional currency”). The consolidated financial statements are presented in New Taiwan Dollars, which is the Company’s functional currency. A. Foreign currency transactions and balances

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

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(b) Monetary assets and liabilities denominated in foreign currencies at the period end are retranslated at the exchange rates prevailing at the balance sheet date. Exchange differences arising upon re-translation at the balance sheet date are recognized in profit or loss.
(c) Non-monetary assets and liabilities denominated in foreign currencies held at fair value through profit or loss are re-translated at the exchange rates prevailing at the balance sheet date; their translation differences are recognized in profit or loss. Non-monetary assets and liabilities denominated in foreign currencies held at fair value through other comprehensive income are retranslated at the exchange rates prevailing at the balance sheet date; their translation differences are recognized in other comprehensive income. However, non-monetary assets and liabilities denominated in foreign currencies that are not measured at fair value are translated using the historical exchange rates at the dates of the initial transactions.
(d) All foreign exchange gains and losses based on the nature of those transactions are presented in the statement of comprehensive income within other gains and losses.
B. Translation of foreign operations
(a) The operating results and financial position of all the subsidiaries, associates and jointly arrangements that have a functional currency different from the presentation currency are translated into the presentation currency as follows:
- i. Assets and liabilities for each balance sheet presented are translated at the closing exchange rate at the date of that balance sheet;
- ii. Income and expenses for each statement of comprehensive income are translated at average exchange rates of that period; and
- iii. All resulting exchange differences are recognized in other comprehensive income.
(b) When the foreign operation partially disposed of or sold is an associate or jointly arrangements exchange differences that were recorded in other comprehensive income are proportionately reclassified to profit or loss as part of the gain or loss on sale. In addition, if the Group retains partial interest in the former foreign associate or jointly arrangements after losing significant influence over the former foreign associate, or losing joint control of the former jointly arrangements, such transactions should be accounted for as disposal of all interest in these foreign operations.
(c) When the foreign operation partially disposed of or sold is a subsidiary, cumulative exchange differences that were recorded in other comprehensive income are proportionately transferred to the non-controlling interest in this foreign operation. In addition, even when the Group retains partial interest in the former foreign subsidiary after losing control of the former foreign subsidiary, such transactions should be accounted for as disposal of all interest in the foreign operation.
(d) Goodwill and fair value adjustments arising on the acquisition of a foreign entity are treated as assets and liabilities of the foreign entity and translated at the closing exchange rates at the balance sheet date.
(5) Classification of current and non-current items
A. Assets that meet one of the following criteria are classified as current assets; otherwise they are classified as non-current assets:
(a) Assets arising from operating activities that are expected to be realized, or are intended to be sold or consumed within the normal operating cycle;
(b) Assets held mainly for trading purposes;
(c) Assets that are expected to be realized within 12 months from the balance sheet date;
(d) Cash and cash equivalents, excluding restricted cash and cash equivalents and those that are to be exchanged or used to pay off liabilities more than 12 months after the balance sheet date.
B. Liabilities that meet one of the following criteria are classified as current liabilities; otherwise they are classified as non-current liabilities:
(a) Liabilities that are expected to be paid off within the normal operating cycle;
(b) Liabilities arising mainly from trading activities;
(c) Liabilities that are to be paid off within 12 months from the balance sheet date;
(d) Liabilities for which the repayment date cannot be extended unconditionally to more than 12 months after the balance sheet date. Terms of a liability that could, at the option of the counterparty, result in its settlement by the issue of equity instruments do not affect its classification.

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(6) Cash equivalents

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

(7) Financial assets at fair value through profit or loss
A. Financial assets at fair value through profit or loss are financial assets that are not measured at amortized cost or fair value through other comprehensive income.
B. On a regular way purchase or sale basis, financial assets at fair value through profit or loss are recognized and derecognized using settlement date accounting.
C. At initial recognition, the Group measures the financial assets at fair value and recognizes the transaction costs in profit or loss. The Group subsequently measures the financial assets at fair value, and recognizes the gain or loss in profit or loss.
D. The Group recognizes the dividend income when the right to receive payment is established, future economic benefits associated with the dividend will flow to the Group and the amount of the dividend can be measured reliably.
(8) Financial assets at fair value through other comprehensive income
A. Financial assets at fair value through other comprehensive income comprise equity securities which are not held for trading, and for which the Group has made an irrevocable election at initial recognition to recognize changes in fair value in other comprehensive income and debt instruments which meet all of the following criteria:
(a) The objective of the Group’s business model is achieved both by collecting contractual cash flows and selling financial assets; and
(b) The assets’ contractual cash flows represent solely payments of principal and interest.
B. On a regular way purchase or sale basis, financial assets at fair value through other comprehensive income are recognized and derecognized using settlement date accounting.
C. At initial recognition, the Group measures the financial assets at fair value plus transaction costs. The Group subsequently measures the financial assets at fair value:
The changes in fair value of equity investments that were recognized in other comprehensive income are reclassified to retained earnings and are not reclassified to profit or loss following the derecognition of the investment. Dividends are recognized as revenue when the right to receive payment is established, future economic benefits associated with the dividend will flow to the Group and the amount of the dividend can be measured reliably.
(9) Accounts and notes receivable
A. Accounts and notes receivable entitle the Group a legal right to receive consideration in exchange for transferred goods or rendered services.
B. The short-term accounts and notes receivable without bearing interest are subsequently measured at initial invoice amount as the effect of discounting is immaterial.
(10) Impairment of financial assets

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

(11) Leasing arrangements (Lessor)-operating leases

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

(12) Inventories
A. Inventories are initially recorded at cost. Cost of consolidated entities which manage convenience stores is determined using the retail inventory method while cost of other subsidiaries is determined in accordance with the type of business.
B. Ending inventories are stated at the lower of cost and net realizable value. The item by item approach is used in applying the lower of cost and net realizable value. Net realizable value is the estimated selling price in the ordinary course of business, less the estimated cost of completion and applicable variable selling expenses.

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(13) Investments accounted for using equity method - associates
A. Associates are all entities over which the Group has significant influence but not control. In general, it is presumed that the investor has significant influence, if an investor holds, directly or indirectly 20 percent or more of the voting power of the investee. Investments in associates are accounted for using the equity method and are initially recognized at cost.
B. The Group’s share of its associates’ post-acquisition profits or losses is recognized in profit or loss, and its share of post-acquisition movements in other comprehensive income is recognized in other comprehensive income. When the Group’s share of losses in an associate equals or exceeds its interest in the associate, including any other unsecured receivables, the Group does not recognize further losses, unless it has incurred legal or constructive obligations or made payments on behalf of the associate.
C. When changes in an associate’s equity do not arise from profit or loss or other comprehensive income of the associate and such changes do not affect the Group’s ownership percentage of the associate, the Group recognizes the Group’s share of change in equity of the associate in “capital surplus” in proportion to its ownership.
D. Unrealized gains on transactions between the Group and its associates are eliminated to the extent of the Group’s interest in the associates. Unrealized losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred. Accounting policies of associates have been adjusted where necessary to ensure consistency with the policies adopted by the Group.
E. In the case that an associate issues new shares and the Group does not subscribe or acquire new shares proportionately, which results in a change in the Group’s ownership percentage of the associate but maintains significant influence on the associate, then “capital surplus” and “investments accounted for using the equity method” shall be adjusted for the increase or decrease of its share of equity interest. If the above condition causes a decrease in the Group’s ownership percentage of the associate, in addition to the above adjustment, the amounts previously recognized in other comprehensive income in relation to the associate are reclassified to profit or loss proportionately on the same basis as would be required if the relevant assets or liabilities were disposed of.
F. Upon loss of significant influence over an associate, the Group remeasures any investment retained in the former associate at its fair value. Any difference between fair value and carrying amount is recognized in profit or loss.
G. When the Group disposes its investment in an associate and loses significant influence over this associate, the amount previously recognized in other comprehensive income in relation to the associate, are reclassified to profit or loss, on the same basis as would be required if the relevant assets or liabilities were disposed of. If it retains significant influence over this associate, the amounts previously recognized in other comprehensive income in relation to the associate are reclassified to profit or loss proportionately in accordance with the aforementioned approach.
H. When the Group disposes its investment in an associate and loses significant influence over this associate, the amounts previously recognized as capital surplus in relation to the associate are transferred to profit or loss. If it retains significant influence over this associate, the amounts previously recognized as capital surplus in relation to the associate are transferred to profit or loss proportionately.
(14) Investment accounted for using the equity method - joint ventures
The Group accounts for its investment interests in joint ventures using the equity method. Unrealized profits and losses arising from transactions between the Group and joint ventures are eliminated to the extent of the Group’s interest in the joint venture. However, when the transaction provides evidence of a reduction in the net realizable value of current assets or an impairment loss, all such losses shall be recognized immediately. When the Group’s share of losses in a joint venture equals or exceeds its interest in the joint venture together with any other unsecured receivables, the Group does not recognize further losses, unless it has incurred legal or constructive obligations or made payments on behalf of the joint venture.
(15) Property, plant and equipment
A. Property, plant and equipment are initially recorded at cost.
B. Subsequent costs are included in the asset’s carrying amount or recognized as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Group and the cost of the item can be measured reliably. The carrying amount of the replaced part is derecognized. All other repairs and maintenance are charged to profit or loss during the financial period in which they are incurred.

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C. Land is not depreciated. Other property, plant and equipment apply cost model and are depreciated using the straight-line method to allocate their cost over their estimated useful lives. Each part of an item of property, plant, and equipment with a cost that is significant in relation to the total cost of the item must be depreciated separately.
D. The assets’ residual values, useful lives and depreciation methods are audited, and adjusted if appropriate, at each financial year-end. If expectations for the assets’ residual values and useful lives differ from previous estimates or the patterns of consumption of the assets’ future economic benefits embodied in the assets have changed significantly, any change is accounted for as a change in estimate under IAS 8, “Accounting Policies, Changes in Accounting Estimates and Errors”, from the date of the change. The estimated useful lives of property, plant and equipment are as follows:

Buildings 3~50 years Transportation equipment 2~15 years Operating equipment 2~16 years Leasehold assets 1~20 years

－
(16) Leasing arrangements (lessee) right-of-use assets/ lease liabilities
A. Leases are recognized as a right-of-use asset and a corresponding lease liability at the date at which the leased asset is available for use by the Group. For short-term leases or leases of lowvalue assets, lease payments are recognized as an expense on a straight-line basis over the lease term.
B. Lease liabilities include the net present value of the remaining lease payments at the commencement date, discounted using the incremental borrowing interest rate. Lease payments are comprised of the following:
(a) Fixed payments, less any lease incentives receivable;
(b) Variable lease payments that depend on an index or a rate; and
(c) Amounts expected to be payable by the lessee under residual value guarantees.

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

C. At the commencement date, the right-of-use asset is stated at cost comprising the following:
(a) The amount of the initial measurement of lease liability;
(b) Any lease payments made at or before the commencement date;
(c) Any initial direct costs incurred by the lessee; and
(d) An estimate of costs to be incurred by the lessee in dismantling and removing the underlying asset, restoring the site on which it is located or restoring the underlying asset to the condition required by the terms and conditions of the lease.

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

(17) Investment property

An investment property is stated initially at its cost and measured subsequently using the cost model. Except for land, investment property is depreciated on a straight-line basis over its estimated useful life of 10 to 50 years.

(18) Intangible assets

A. Computer software
Computer software is stated at cost and amortized on a straight-line basis over its estimated useful life of 1 to 10 years.
B. Goodwill

Goodwill arises in a business combination accounted for by applying the acquisition method.

C. License agreement and customer list and other intangible asset
License agreement and customer list acquired in business combination are recognized at fair value at the acquisition date. Other intangible assets are separately acquired trademarks and licenses which are stated at historical cost. The latter has a finite useful life and is amortized on a straightline basis over it’s estimated useful life.

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(19) Impairment of non-financial assets
A. The Group assesses at each balance sheet date the recoverable amounts of those assets where there is an indication that they are impaired. An impairment loss is recognized for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs to sell or value in use. Except for goodwill, when the circumstances or reasons for recognizing impairment loss for an asset in prior years no longer exist or diminish, the impairment loss is reversed. The increased carrying amount due to reversal should not be more than what the depreciated or amortized historical cost would have been if the impairment had not been recognized.
B. The recoverable amounts of goodwill are evaluated periodically. An impairment loss is recognized for the amount by which the asset’s carrying amount exceeds its recoverable amount. Impairment loss of goodwill previously recognized in profit or loss shall not be reversed in the following years.
C. For the purpose of impairment testing, goodwill acquired in a business combination is allocated to each of the cash-generating units, or groups of cash-generating units, that is/are expected to benefit from the synergies of the business combination. Each unit or group of units to which the goodwill is allocated represents the lowest level within the entity at which the goodwill is monitored for internal management purposes. Goodwill is monitored at the operating segment level.
(20) Borrowings

Borrowings comprise long-term and short-term bank borrowings. Borrowings are recognized initially at fair value, net of transaction costs incurred. Borrowings are subsequently stated at amortized cost; any difference between the proceeds (net of transaction costs) and the redemption value is recognized in profit or loss over the period of the borrowings using the effective interest method.

(21) Notes and accounts payable
A. Accounts payable are liabilities for purchases of raw materials, goods or services and notes payable are those resulting from operating and non-operating activities.
B. The short-term notes and accounts payable without bearing interest are subsequently measured at initial invoice amount as the effect of discounting is immaterial.
(22) Provisions

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

(23) Employee benefits
A. Short-term employee benefits

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

B. Pensions
(a) Defined contribution plans

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

(b) Defined benefit plans
i. Net obligation under a defined benefit plan is defined as the present value of an amount of pension benefits that employees will receive on retirement for their services with the Group in current period or prior periods. The liability recognized in the balance sheet in respect of defined benefit pension plans is the present value of the defined benefit obligation at the balance sheet date less the fair value of plan assets. The net defined benefit obligation is calculated annually by independent actuaries using the projected unit credit method. The rate used to discount is determined by using interest rates of government bonds (at the balance sheet date) of a currency and term consistent with the currency and term of the employment benefit obligations.
ii. Remeasurements arising on defined benefit plans are recognized in other comprehensive income in the period in which they arise and are recorded as retained earnings.
iii. Past service costs are recognized immediately in profit or loss.

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C. Termination benefits
Termination benefits are employee benefits provided in exchange for the termination of employment as a result from either the Group’s decision to terminate an employee’s employment before the normal retirement date, or an employee’s decision to accept an offer of redundancy benefits in exchange for the termination of employment. The Group recognizes expense when it can no longer withdraw an offer of termination benefits or it recognizes related restructuring costs, whichever is earlier. Benefits that are expected to be due more than 12 months after balance sheet date shall be discounted to their present value.
D. Employees’, directors’ and supervisors’ remuneration
Employees’ remuneration and directors’ and supervisors’ remuneration are recognized as expense and liability, provided that such recognition is required under legal or constructive obligation and those amounts can be reliably estimated. Any difference between the resolved amounts and the subsequently actual distributed amounts is accounted for as changes in estimates. If employee compensation is distributed by shares, the Group calculates the number of shares based on the closing price at the previous day of the board meeting resolution.
(24) Income tax
A. The tax expense for the year comprises current and deferred tax. Tax is recognized in profit or loss, except to the extent that it relates to items recognized in other comprehensive income or items recognized directly in equity, in which cases the tax is recognized in other comprehensive income or equity.
B. The current income tax expense is calculated on the basis of the tax laws enacted or substantively enacted at the balance sheet date in the countries where the Company and its subsidiaries operate and generate taxable income. Management periodically evaluates positions taken in tax returns with respect to situations in accordance with applicable tax regulations. It establishes provisions where appropriate based on the amounts expected to be paid to the tax authorities. An additional tax is levied on the unappropriated retained earnings and is recorded as income tax expense in the year the stockholders resolve to retain the earnings.
C. Deferred tax is recognized, using the balance sheet liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the consolidated balance sheet. However, the deferred tax is not accounted for if it arises from initial recognition of goodwill or of an asset or liability in a transaction other than a business combination that at the time of the transaction affects neither accounting nor taxable profit nor loss. Deferred tax is provided on temporary differences arising on investments in subsidiaries and associates, except where the timing of the reversal of the temporary difference is controlled by the Group and it is probable that the temporary difference will not reverse in the foreseeable future. Deferred tax is determined using tax rates (and laws) that have been enacted or substantially enacted by the balance sheet date and are expected to apply when the related deferred tax asset is realized or the deferred tax liability is settled.
D. Deferred tax assets are recognized only to the extent that it is probable that future taxable profit will be available against which the temporary differences can be utilised. At each balance sheet date, unrecognized and recognized deferred tax assets are reassessed.
E. A deferred tax asset shall be recognised for the carry forward of unused tax credits resulting from acquisitions of equipment or technology, research and development expenditures and equity investments to the extent that it is possible that future taxable profit will be available against which the unused tax credits can be utilised.
(25) Revenue recognition
A. Sales of goods
(a) The Group operates a chain of retail stores. Revenue from the sale of goods is recognized when the Group sells a product to the customer.
(b) Payment of the transaction price is due immediately when the customer purchases the product. It is the Group’s policy to sell its products to the end customer with a right of return. Therefore, a refund liability and a right to the returned goods (included in other current assets) are recognized for the products expected to be returned. Accumulated experience is used to estimate such returns using the expected value method. Because the number of products returned has been steady for years, it is highly probable that a significant reversal in the cumulative revenue recognized will not occur. The validity of this assumption and the estimated amount of returns are reassessed at each reporting date.

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(c) The Group operates a loyalty program where retail customers accumulate points for purchases made which entitle them to discount on future purchases. The points provide a material right to customers that they would not receive without entering into a contract. Therefore, the promise to provide points to the customer is a separate performance obligation. The transaction price is allocated to the product and the points on a relative stand-alone selling price basis. The standalone selling price per point is estimated on the basis of the discount granted when the points are redeemed and on the basis of the likelihood of redemption, based on past experience. The standalone selling price of the product sold is estimated on the basis of the retail price. A contract liability is recognized for the transaction price which is allocated to the points and revenue is recognized when the points are redeemed or expire.
B. Sales of services
The Group provides delivery services. Revenue from delivering services is recognized when the services have been provided.
C. Financing components
The Group does not expect to have any contracts where the period between the transfer of the promised goods or services to the customer and payment by the customer exceeds one year. As a consequence, the Group does not adjust any of the transaction prices for the time value of money.
(26) Business combination
A. The Group uses the acquisition method to account for business combinations. The consideration transferred for an acquisition is measured as the fair value of the assets transferred, liabilities incurred or assumed and equity instruments issued at the acquisition date, plus the fair value of any assets and liabilities resulting from a contingent consideration arrangement. All acquisition-related costs are expensed as incurred. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. For each business combination, the Group measures at the acquisition date components of noncontrolling interests in the acquiree that are present ownership interests and entitle their holders to the proportionate share of the entity’s net assets in the event of liquidation at either fair value or the present ownership instruments’ proportionate share in the recognized amounts of the acquiree’s identifiable net assets. All other non-controlling interests should be measured at the acquisition-date fair value.
B. The excess of the consideration transferred, the amount of any non-controlling interest in the acquiree and the fair value of any previous equity interest in the acquiree over the fair value of the identifiable assets acquired and the liabilities assumed is recorded as goodwill at the acquisition date. If the total of consideration transferred, non-controlling interest in the acquiree recognized and the fair value of previously held equity interest in the acquiree is less than the fair value of the identifiable assets acquired and the liabilities assumed, the difference is recognized directly in profit or loss on the acquisition date.
(27) Operating segments
Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision-maker, who is responsible for allocating resources and assessing performance of the operating segments.

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

UNCERTAINTY

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

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6. DETAILS OF SIGNIFICANT ACCOUNTS

(1) Cash and cash equivalents

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December 31, 2020 December 31, 2019
Cash on hand and petty cash $ 2,049,148 $ 1,680,411
Checking accounts and demand deposits 12,354,395 9,606,131
Cash equivalents
Time deposits 25,950,720 26,620,058
Short-term financial instruments 6,208,644 7,538,795
$ 46,562,907 $ 45,445,395
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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

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December 31, 2020 December 31, 2019
Financial assets mandatorily measured at fair value through profit or loss
Current items:
Beneficiary certificates $ 2,105,429 $ 1,696,276
Valuation adjustment 67 24
$ 2,105,496 $ 1,696,300
Non-current items:
Unlisted stocks $ 275,243 $ 275,285
Valuation adjustment ( 189,720 ) ( 189,720 )
$ 85,523 $ 85,565
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A. The Group recognized net profit of $28,099 and $27,927 in relation to financial assets at fair value through profit or loss for the years ended December 31, 2020 and 2019, respectively.
B. No financial assets at fair value through profit or loss of the Group were pledged to others.
C. Information relating to credit risk is provided in Note 12(2).
(3) Accounts receivable

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December 31, 2020 December 31, 2019
Accounts receivable $ 6,322,757 $ 5,864,309
Less: Allowance for doubtful accounts ( 107,485 ) ( 55,829 )
$ 6,215,272 $ 5,808,480
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A. The ageing analysis of accounts receivable that were past due but not impaired is as follows:

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December 31, 2020 December 31, 2019
Not past due $ 6,228,821 $ 5,508,376
Up to 90 days 91,138 335,189
91 to 180 days 1,371 18,625
181 to 365 days 223 63
Over 365 days 1,204 2,056
$ 6,322,757 $ 5,864,309
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The above aging analysis was based on past due date.

B. As of December 31, 2020 and 2019, accounts receivable was all from contracts with customers. And as of January 1, 2019, the balance of receivables from contracts with customers amounted to $5,264,573.
C. As at December 31, 2020, and 2019, without taking into account any collateral held or other credit enhancements, the maximum exposure to credit risk in respect of the amount that best represents the Group’s accounts receivable were $6,215,272, and $5,808,480, respectively.
D. Information relating to credit risk is provided in Note 12(2).

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(4) Inventories

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December 31, 2020
Allowance for
Cost Book value
valuation loss
Raw materials and work in process $ 75,715 $ - $ 75,715
Merchandise and finished goods 16,648,109 ( 87,769 ) 16,560,340
$ 16,723,824 ($ 87,769 ) $ 16,636,055
December 31, 2019
Allowance for
Cost Book value
valuation loss
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
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The cost of inventories recognized as expense for the year:

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For the year ended For the year ended
December 31, 2020 December 31, 2019
Cost of goods sold and service costs $ 168,010,208 $ 166,061,981
(Gain on reversal) loss on valuation of inventories ( 36,772 ) 28,855
Spoilage 2,138,407 1,848,520
Others 302,554 271,112
$ 170,414,397 $ 168,210,468
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The Group reversed a previous inventory write-down because the Group sold and scrapped certain inventories which were previously provided with allowance during the year ended December 31, 2020. (5) Financial assets at fair value through other comprehensive income - non-current

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December 31, 2020 December 31, 2019
Equity instruments
Listed stocks $ 265,606 $ 265,606
Unlisted stocks 4,348 4,348
269,954 269,954
Valuation adjustment 689,873 537,161
$ 959,827 $ 807,115
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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 $959,827 and $807,115 as at December 31, 2020 and 2019, respectively.

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

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For the year ended For the year ended
December 31, 2020 December 31, 2019
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Equityinstruments at fair value through other comprehensive income Fair value change recognized in other comprehensive income Dividend income recognized in proft or loss Debt instruments at fair value through other comprehensive income Fair value change recognized in other comprehensive income Interest income recognized in proft or loss	$ 152,712	$ 162,501
	$ 43,833	$ 31,723
	$ -	($ 783)
	$ -	$ 1,180

C. As at December 31, 2020 and 2019, without taking into account any collateral held or other credit enhancements, the maximum exposure to credit risk in respect of the amount that best represents the financial assets at fair value through other comprehensive income held by the Group was $959,827 and $807,115, 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).
(6) Investments accounted for using the equity method

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December 31, 2020 December 31, 2019
Associates
PresiCarre Corp. $ 5,434,309 $ 5,723,198
President Fair Development Corp. 2,084,800 2,039,406
Uni-President Development Corp. 757,759 764,191
President International Development Corp. 445,096 459,696
Uni-President Organics Corp. 42,447 41,430
Tung Ho Development Corp. 33,133 106,384
President Technology Corp. 25,543 20,866
8,823,087 9,155,171
Joint ventures
Mister Donut Taiwan Co., Ltd. 98,554 100,768
$ 8,921,641 $ 9,255,939
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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:

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For the year ended For the year ended
December 31, 2020 December 31, 2019
Profit for the year from continuing operations $ 412,893 $ 466,385
Other comprehensive loss - net of tax ( 20,161 ) ( 5,632 )
Total comprehensive income $ 392,732 $ 460,753
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B. The Group’s share of the operating results in all individually immaterial joint ventures is summarized below:

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For the year ended For the year ended
December 31, 2020 December 31, 2019
Profit for the year from continuing operations $ 10,514 $ 14,613
Other comprehensive income (loss)-net of tax 742 ( 769 )
Total comprehensive income $ 11,256 $ 13,844
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(7) Property, plant and equipment

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

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2020
Transportation Operating Leasehold
Land Buildings Others Total
equipment equipment improvements
At January 1
Cost $ 2,254,656 $ 4,788,540 $ 6,648,230 $ 22,280,204 $ 19,092,068 $ 10,972,281 $ 66,035,979
Accumulated depreciation and impairment ( 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
Opening net book amount as of January 1 $ 2,238,289 $ 2,605,730 $ 2,093,871 $ 7,801,160 $ 6,814,519 $ 4,464,753 $ 26,018,322
Additions 30,208 3,505 399,892 3,555,715 2,640,668 2,383,234 9,013,222
Disposals - - ( 11,966 ) ( 48,810 ) ( 205,003 ) ( 19,396 ) ( 285,175 )
Transfer 642,919 15,877 205,574 226,926 154,922 ( 1,216,570 ) 29,648
Depreciation charge - ( 197,413 ) ( 505,873 ) ( 2,386,188 ) ( 2,158,340 ) ( 1,497,013 ) ( 6,744,827 )
Reversal of impairment loss - - - 472 - - 472
Net exchange differences 44 1,757 582 6,828 3,345 6,156 18,712
Closing net book amount as of December 31 $ 2,911,460 $ 2,429,456 $ 2,182,080 $ 9,156,103 $ 7,250,111 $ 4,121,164 $ 28,050,374
At December 31
Cost $ 2,927,827 $ 4,891,097 $ 6,993,321 $ 24,307,493 $ 20,386,864 $ 11,989,504 $ 71,496,106
Accumulated depreciation and impairment ( 16,367 ) ( 2,461,641 ) ( 4,811,241 ) ( 15,151,390 ) ( 13,136,753 ) ( 7,868,340 ) ( 43,445,732 )
$ 2,911,460 $ 2,429,456 $ 2,182,080 $ 9,156,103 $ 7,250,111 $ 4,121,164 $ 28,050,374
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2019
Transportation Operating Leasehold
Land Buildings Others Total
equipment equipment improvements
At January 1
Cost $ 2,273,117 $ 4,723,111 $ 6,612,878 $ 21,159,733 $ 18,345,784 $ 9,627,520 $ 62,742,143
Accumulated depreciation and impairment ( 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
Opening net book amount as of January 1 $ 2,256,750 $ 2,743,106 $ 2,267,417 $ 6,772,982 $ 6,970,773 $ 4,281,735 $ 25,292,763
Effect of adoption of IFRS 16 - - - - ( 387,770 ) ( 8,463 ) ( 396,233 )
Adjusted beginning balance $ 2,256,750 $ 2,743,106 $ 2,267,417 $ 6,772,982 $ 6,583,003 $ 4,273,272 $ 24,896,530
Additions - 33,282 276,044 3,251,911 2,184,888 1,952,903 7,699,028
Disposals - - ( 30,554 ) ( 110,153 ) ( 110,612 ) ( 5,641 ) ( 256,960 )
Transfer ( 18,757 ) 38,387 104,600 147,177 109,995 ( 423,497 ) ( 42,095 )
Depreciation charge - ( 204,422 ) ( 521,706 ) ( 2,242,940 ) ( 1,977,765 ) ( 1,352,854 ) ( 6,299,687 )
Reversal of impairment loss - - - 2,653 10,965 - 13,618
Net exchange differences 296 ( 4,623 ) ( 1,930 ) ( 20,470 ) 14,045 20,570 7,888
Closing net book amount as of December 31 $ 2,238,289 $ 2,605,730 $ 2,093,871 $ 7,801,160 $ 6,814,519 $ 4,464,753 $ 26,018,322
At December 31
Cost $ 2,254,656 $ 4,788,540 $ 6,648,230 $ 22,280,204 $ 19,092,068 $ 10,972,281 $ 66,035,979
Accumulated depreciation and impairment ( 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
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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.
－
(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:

	December 31, 2020 Carrying amount	December 31, 2019 Carrying amount
Land Buildings Machinery and equipment Other equipment	$ 856,263 73,986,497 38,785 81,456	$ 677,359 66,682,465 72,211 57,577
	$ 74,963,001	$ 67,489,612

	For the year ended December 31, 2020	For the year ended December 31, 2019
	Depreciation charge	Depreciation charge
	$ 143,006 12,558,865 33,426 29,561	$ 137,324 11,679,988 39,389 20,814

C. For the years ended December 31, 2020 and 2019, the additions to right-of-use assets were $23,424,064 and $28,665,757, respectively.

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

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For the year ended For the year ended
December 31, 2020 December 31, 2019
Items affecting profit or loss
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Items affecting proft or loss
Interest expense on lease liabilities	$	1,143,668	$	1,090,750
Expense on short-term lease contracts		403,729		344,600
Expense on leases of low-value assets		70,905		64,297
Expense on variable lease payments		536,597		620,688
Gain on sublease of right-of-use assets		540,712		544,513
Gain from lease modifcation		79,685		58,910

E. For the years ended December 31, 2020 and 2019, the Group’s total cash outflow for leases was $13,817,294 and $13,450,160, 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 3.60% and 4.43% as at December 31, 2020 and 2019, respectively, are on the basis of variable payment terms and are accrued based on the sales amount. Variable payment terms are used for a variety of reasons. Various lease payments that depend on sales are recognized in profit or loss in the period in which the event or condition that triggers those payments occurs.
(b) A 1% increase in the aggregate sales amount of all stores with such variable lease contracts would increase total lease payments by approximately $5,366 and $6,207 for the years ended December 31, 2020 and 2019, respectively.
G. The Group’s leases not yet commenced to which the lessee is committed are business premises for the lessees, and the lease liabilities undiscounted as at December 31, 2020 and 2019, amounted to $2,773,378 and $2,597,780, 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 $145,297, as other income for the year ended December 31, 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.
B. Information on profit or loss in relation to lease contracts is as follows:

	For the year ended December 31, 2020	For the year ended December 31, 2019
Rental revenue Rental revenue from variable lease payments	$ 1,590,065	$ 1,568,808
	$ 1,167,643	$ 1,201,823
C. The maturity analysis of the undiscounted lease payments in the operating leases is as follows:
	December 31, 2020	December 31, 2019
	$ 275,631 211,129 145,147 71,577 59,022 135,472	$ 256,072 206,455 148,086 90,464 60,519 158,193

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(10) Investment property

		2020	2020
	Land	Buildings	Right-of-use assets	Total
At January 1 Depreciation charge Disposal Transfer At December 31	$ 1,078,295 - ( 3,987 ) -	$ 428,503 ( 16,651 ) ( 8,754 ) -	$ - - - 1,385,740	$ 1,506,798 ( 16,651 ) ( 12,741 ) 1,385,740
	$ 1,074,308	$ 403,098	$ 1,385,740	$ 2,863,146
		2019
		Land	Buildings	Total
		$ 1,059,538 - 18,757	442,621 ( 17,031 ) 2,913	$ 1,502,159 ( 17,031 ) 21,670

A. The fair value of the investment property held by the Group ranged from $4,027,091 to $5,397,468 at December 31, 2020 and 2019, which was assessed based on recent settlement prices of similar and comparable properties, as well as the reports of independent appraisers. Valuations were made using the comparison approach and income approach which is categorized within level 3 in the fair value hierarchy. Key assumptions are discount rate between 0.8% to 2.39% and growth rate 3%.
B. Information on investment property pledged to others as collateral is provided in Note 8.
(11) Intangible assets

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2020
License agreement
Software Goodwill Others Total
and customer list
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$ 1,853,119 ( 1,375,833)	$ 2,202,925 -	$ 7,524,890 ( 388,319)	$ 493,171 ( 138,511)	$ 12,074,105 ( 1,902,663)
$ 477,286	$ 2,202,925	$ 7,136,571	$ 354,660	$ 10,171,442
$ 477,286 190,250 6,625 ( 212,046 ) ( 574)	$ 2,202,925 - - - ( 2,772)	$ 7,136,571 - - ( 194,159 ) -	$ 354,660 47,235 ( 183 ) ( 50,027 ) 2,407	$ 10,171,442 237,485 6,442 ( 456,232 ) ( 939)
$ 461,541	$ 2,200,153	$ 6,942,412	$ 354,092	$ 9,958,198
$ 2,038,224 ( 1,576,683)	$ 2,200,153 -	$ 7,524,890 ( 582,478)	$ 540,225 ( 186,133)	$ 12,303,492 ( 2,345,294)
$ 461,541	$ 2,200,153	$ 6,942,412	$ 354,092	$ 9,958,198

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2019
License agreement
Software Goodwill Others Total
and customer list
At January 1
Cost $ 1,648,652 $ 2,204,284 $ 7,524,890 $ 469,957 $ 11,847,783
Accumulated amortization and impairment ( 1,164,405 ) - ( 194,160 ) ( 95,338 ) ( 1,453,903 )
$ 484,247 $ 2,204,284 $ 7,330,730 $ 374,619 $ 10,393,880
Opening net book amount as of January 1 $ 484,247 $ 2,204,284 $ 7,330,730 $ 374,619 $ 10,393,880
Additions 184,912 - - 24,690 209,602
Transfer 46,246 - - 584 46,830
Amortization expense ( 236,331 ) - ( 194,159 ) ( 45,398 ) ( 475,888 )
Net exchange differences ( 1,788 ) ( 1,359 ) - 165 ( 2,982 )
Closing net book amount as of December 31 $ 477,286 $ 2,202,925 $ 7,136,571 $ 354,660 $ 10,171,442
At December 31
Cost $ 1,853,119 $ 2,202,925 $ 7,524,890 $ 493,171 $ 12,074,105
Accumulated amortization and impairment ( 1,375,833 ) - ( 388,319 ) ( 138,511 ) ( 1,902,663 )
$ 477,286 $ 2,202,925 $ 7,136,571 $ 354,660 $ 10,171,442
Amortization expense on intangible assets are recognized as operating expenses.
(12) Other non-current assets
December 31, 2020 December 31, 2019
Guarantee deposits paid $ 3,106,790 $ 2,911,887
Others 461,010 787,932
$ 3,567,800 $ 3,699,819
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(13) Impairment of non-financial assets

A. The Group recognized reversal of impairment loss for the years ended December 31, 2020 and 2019 was $472 and $13,618, respectively. Details of such gain are as follows:

	For the year ended December 31, 2020	For the year ended December 31, 2020	For the year ended December 31, 2019	For the year ended December 31, 2019
	Recognized in proft or loss	Recognized in other comprehensive income	Recognized in proft or loss	Recognized in other comprehensive income
Reversal of impairment loss Property, plant and equipment	$ 472	$ -	$ 13,618	$ -

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, so goodwill was not impairs. The key assumptions used for value-in-use calculations are as follows:
(a) Discount rate: Estimated based on weighted average cost of funds. The discount rate for the years ended December 31, 2020 and 2019 were 7.43% to 14.06%.

(b) Future value growth rate: Refer to the past long-term average economic growth rate of mature economies and long-term price index growth rate and market competition. The future value growth rate for the years ended December 31, 2020 and 2019 were 1%.

Management determined budgeted gross margin and operating profit margin based on past performance and its expectations of market development. The weighted average growth rates used are consistent with the forecasts included in industry reports. The discount rates used are pre-tax and reflected specific risks relating to the relevant operating segments.

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(14) Short-term borrowings

Type of borrowings	December 31, 2020	Interest rate range	Collateral
Bank borrowings Credit loan	$ 4,739,411 0.49%~4.875% None

Type of borrowings	December 31, 2019	Interest rate range	Collateral

There was no capitalization of borrowing costs for the years ended December 31, 2020 and 2019. Relevant interest expense on borrowings is recognized as “finance costs”. (15) Short-term notes and bills payable

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December 31, 2020 December 31, 2019
Commercial papers payable $ 3,400,000
Please refer to the
Less: Unamortized discount ( 853 ) below for details
$ 3,399,147
Inerest rate range 0.408%
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A. There was no commercial papers payable for the year ended December 31, 2019.
B. The above commercial papers were issued and secured by Sumitomo Mitsui Banking Corporation and International Bills Finance Corporation for short-term financing.
(16) Other payables

	December 31, 2020	December 31, 2019
Store collections	$ 10,519,829	$ 11,453,224
Wages, salaries and bonus payable	4,958,514	5,206,353
Sales receipt on behalf of others	1,617,261	1,345,877
Payables for acquisition of property, plant and equipment	1,355,119	1,364,370
Incentive bonus payable to franchisees	934,922	1,158,473
Employees’ compensation and remuneration for directors and supervisors	852,461	872,361
Payables for labor and health insurance	252,313	248,584
Rent payable Others	62,477 4,540,886	66,133 4,881,130
	$ 25,093,782	$ 26,596,505

(17) Other current liabilities

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December 31, 2020 December 31, 2019
Advance receipts for gift certificates $ 1,489,185 $ 1,351,370
Advance receipts of deposits in ICASH cards 1,474,937 1,298,919
Current portion of long-term liabilities 291,575 221,888
Others 333,173 277,414
$ 3,588,870 $ 3,149,591
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(18) Long-term borrowings

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Type of borrowings Interest rate range Collateral December 31, 2020
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Long-term bank borrowings
Credit loan	3.875%~5.30%	None	$	790,662
Secured borrowings	1.49%~1.75%	Property, plant and equipment		529,466
				1,320,128
Less: Current portion			(	291,57)
			$	1,028,553

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Type of borrowings Interest rate range Collateral December 31, 2019
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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

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

(19) Pensions

A. The Company and its domestic subsidiaries operate a defined benefit pension plan, in accordance with the Labor Standards Law, which covers all regular employees’ service years prior to the enforcement of the Labor Pension Act on July 1, 2005 and service years thereafter of employees who chose to continue to be subject to the pension mechanism under the Labor Standards Law. Under the defined benefit pension plan, two units are accrued for each year of service for the first 15 years and one unit for each additional year thereafter, subject to a maximum of 45 units. Pension benefits are based on the number of units accrued and the average monthly salaries and wages of the last six months prior to retirement. The Company and its domestic subsidiaries 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 for the deficit by next March. Furthermore, the subsidiary, Philippine Seven Corporation has defined benefit pension plan.
(a) The amounts recognized in the balance sheet are as follows

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December 31, 2020 December 31, 2019
Present value of defined benefit obligations ($ 7,853,594 ) ($ 7,647,265 )
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Present value of defned beneft obligations	December 31, 2020 ($ 7,853,594 )	December 31, 2019 ($ 7,647,265 )
Fair value of plan assets Net defned beneft liability	2,883,702	2,895,658
	($ 4,969,892)	($ 4,751,607)

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

		2020
	Present value of defned beneft obligations	Fair value of plan assets	Net defned beneft liability
At January 1 Current service cost Interest (expense) income Past service cost Remeasurements: Return on plan assets (not including the amount included in interest income or expense) Change in demographic assumptions Change in fnancial assumptions Experience adjustments Pension fund contribution Paid pension At December 31	($ 7,647,265 ) ( 84,691 ) ( 68,304 ) 508	$ 2,895,658 - 24,364 -	($ 4,751,607 ) ( 84,691 ) ( 43,940 ) 508
	( 7,799,752)	2,920,022	( 4,879,730)
	- ( 5,424 ) ( 433,716 ) 127,348	98,968 - - -	98,968 ( 5,424 ) ( 433,716 ) 127,348
	( 311,792)	98,968	( 212,824)
	- 257,950	105,239 ( 240,527)	105,239 17,423
	257,950	( 135,288)	122,662
	($ 7,853,594)	$ 2,883,702	($ 4,969,892)

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2019
Present value of defined Fair value of Net defined
benefit obligations plan assets benefit liability
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($ 7,616,936 ) ( 78,190 ) ( 88,599 ) ( 24,700)	$ 2,884,387 - 33,872 -	($ 4,732,549 ) ( 78,190 ) ( 54,727 ) ( 24,700)
( 7,808,425)	2,918,259	( 4,890,166)
- ( 6,760 ) ( 280,928 ) 182,775	94,853 - - -	94,853 ( 6,760 ) ( 280,928 ) 182,775
( 104,913)	94,853	( 10,060)
- 266,073	130,510 ( 247,964)	130,510 18,109
266,073	( 117,454)	148,619
($ 7,647,265)	$ 2,895,658	($ 4,751,607)

(c) The Bank of Taiwan was commissioned to manage the Fund of the Company’s and domestic subsidiaries’ defined benefit pension plan in accordance with the Fund’s annual investment and utilization plan and the “Regulations for Revenues, Expenditures, Safeguard and Utilization of the Labor Retirement Fund” (Article 6: The scope of utilization for the Fund includes deposit in domestic or foreign financial institutions, investment in domestic or foreign listed, over-thecounter, or private placement equity securities, investment in domestic or foreign real estate securitization products, etc.). Relating condition of execution is supervised by Labor Funds Supervisory Committee. With regard to the utilization of the Fund, its minimum earnings in the annual distributions on the final financial statements shall be no less than the earnings attainable from the amounts accrued from two-year time deposits with the interest rates offered by local banks. If the earnings is less than aforementioned rates, government shall make payment for the deficit after being authorized by the Regulator. The Company has no right to participate in managing and operating that fund and hence the Company is unable to disclose the classification of plan asset fair value in accordance with IAS 19 paragraph 142. The composition of fair value of plan assets as of December 31, 2020 and 2019 is given in the Annual Labor Retirement Fund Utilization Report announced by the government.
(d) The principal actuarial assumptions used were as follows:

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For the year ended For the year ended
December 31, 2020 December 31, 2019
Discount rate 0.30%~3.83% 0.75%~5.16 %
Future salary increases 2.00%~5.50% 2.00%~5.50 %
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Assumptions regarding future mortality experience are set based on actuarial advice in accordance with published statistics and experience in each territory. Because the main actuarial assumption changed, the present value of defined benefit obligation is affected. The analysis was as follows:

	Discount rate	Discount rate	Future salary increases	Future salary increases
	Increase 0.25%	Decrease 0.25%	Increase 0.25%	Decrease 0.25%
December 31,2020 Effect on present value of defned beneft obligation December 31,2019 Effect on present value of defned beneft obligation	($ 232,413)	$ 243,844	$ 237,276	($ 225,935)
	($ 231,284)	$ 241,943	$ 236,311	($ 226,289)

The sensitivity analysis above is based on one assumption which changed while the other conditions remain unchanged. In practice, more than one assumption may change all at once.

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The method of analysing sensitivity and the method of calculating net pension liability in the balance sheet are the same.

The methods and types of assumptions used in preparing the sensitivity analysis did not change compared to the previous period.

(e) Expected contributions to the defined benefit pension plans of the Group for the year ending December 31, 2021 amounts to $190,875.
(f) As of December 31, 2020, the weighted average duration of the retirement plan is 8~23 years. The analysis of timing of the future pension payment was as follows:

The analysis of timing of the future pension payment was as follows:
Within 1 year 1-2 year(s) 2-5 years Over 5 years	$ 153,746 242,266 842,372 13,093,261
	$ 14,331,645

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 years ended December 31, 2020 and 2019 were 14%~20%. Other than the monthly contributions, the Group has no further obligations.
(b) The pension costs under the defined contribution pension plans of the Group for the years ended December 31, 2020 and 2019 were $935,670 and $954,914, respectively.
(20) Other non-current liabilities

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December 31, 2020 December 31, 2019
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	December 31, 2020	December 31, 2019
Guarantee deposit received Provision for decommissioning liability Others	$ 3,784,654 576,406 295,213	$ 3,560,485 508,707 299,628
	$ 4,656,273	$ 4,368,820

(21) Share capital

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

(22) Capital surplus

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

(23) Retained earnings

A. Under the Company’s Articles of Incorporation, the current year’s earnings, if any, must first be used to pay all taxes and offset prior years’ operating losses, then 10% of the remaining amount is to be set aside as a legal reserve. The Company may then set aside or reserve a certain amount as special reverse according to the relevant regulations. The appropriation of the remaining earnings and prior years’ unappropriated retained earnings should be proposed by the Board of Directors and voted on by the shareholders at the shareholders’ meeting. The dividends and bonus to be distributed to shareholders may be 50%-100% of the total distributable amount, and 50%-100% of dividends are to be distributed as cash dividends, and the remaining undistributed amount to be set aside as unappropriated retained earnings.

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B. Except for covering accumulated deficit or issuing new stocks or cash to shareholders in proportion to their share ownership, the legal reserve shall not be used for any other purpose. The use of the legal reserve for the issuance of stocks or cash to shareholders in proportion to their share ownership is permitted, provided that the distribution of the reserve is limited to the portion in excess of 25% of the Company’s paid-in capital.
C. In accordance with the regulations, the Company shall set aside a special reserve for the debit balance on other equity items at the balance sheet date before distributing earnings. When the debit balance on other equity items is reversed subsequently, the reversed amount should be included in the distributable earnings.
D. The appropriations for 2019 and 2018 were resolved by the shareholders on June 17, 2020 and June 12, 2019, respectively, as follows:

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

E. The appropriations for 2020 as resolved by the Board of Directors on February 26, 2021 is as follows:

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

(24) Other equity items

		2020
	Financial statements translation differences of foreign operations	Unrealized gains (or loss) on valuation of fnancial assets at fair value through other comprehensive income	Total
At January 1 Revaluation and transfer – Group – Associates Revaluation-tax Currency translation differences: – Group – Associates At December 31	($ 869,908 ) - - - ( 1,093,943 ) ( 9,417)	$ 489,721 152,712 ( 4,251 ) 2,465 - -	($ 380,187 ) 152,712 ( 4,251 ) 2,465 ( 1,093,943 ) ( 9,417)
	($ 1,973,268)	$ 640,647	($ 1,332,621)

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2019
Unrealized gains (or loss)
Financial statements on valuation of financial
translation differences of assets at fair value through Total
foreign operations other comprehensive
income
At January 1 ($ 279,829 ) $ 333,434 $ 53,605
Revaluation and transfer
– Group - 161,718 161,718
– Associates - 4,518 4,518
Revaluation-tax - ( 9,949 ) ( 9,949 )
Currency translation differences:
– Group ( 584,090 ) - ( 584,090 )
– Associates ( 5,989 ) - 5,989)
At December 31 ($ 869,908 ) $ 489,721 ($ 380,187 )
(25) Operating revenue
For the year ended For the year ended
December 31, 2020 December 31, 2019
Revenue from contracts with customers $ 258,494,907 $ 256,058,888
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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 year ended December 31, 2020	Convenience stores	Retail business group	Logistics business group	Others	Total
Timing of revenue recognition – At a point in time – Over time	$ 166,515,823 823,854	$ 55,554,382 13,401,530	$ 722,964 1,393,560	$ 19,276,942 805,852	$ 242,070,111 16,424,796
	$ 167,339,677	$ 68,955,912	$ 2,116,524	$ 20,082,794	$ 258,494,907
For the year ended December 31, 2019	Convenience stores	Retail business group	Logistics business group	Others	Total
Timing of revenue recognition – At a point in time $ 156,893,846 $ 62,610,361 $ 1,164,306 $ 19,622,849 $ 240,291,362 – Over time 522,698 13,399,123 936,045 909,660 15,767,526 $ 157,416,544 $ 76,009,484 $ 2,100,351 $ 20,532,509 $ 256,058,888	$ 156,893,846 522,698	$ 62,610,361 13,399,123	$ 1,164,306 936,045	$ 19,622,849 909,660	$ 240,291,362 15,767,526

B. Contract liabilities

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

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December 31, 2020 December 31, 2019 January 1, 2019
Contract liabilities – advance receipts of gift certificates and gift payments $ 3,430,999 $ 1,786,894 $ 1,392,390
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Contract liabilities – members’ deposits Contract liabilities – franchise fee Contract liabilities – customer loyalty programs Contract liabilities – others	804,373 429,578 807,168 326,513	793,115 444,470 503,861 363,291	764,782 230,812 344,970 344,656
	$ 5,798,631	$ 3,891,631	$ 3,077,610

(b) Revenues recognized that were included in the contract liabilities balance at the beginning were $2,461,515 and $2,598,521 for the years ended December 31, 2020 and 2019, respectively.

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(26) Expenses by nature

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For the year ended For the year ended
December 31, 2020 December 31, 2019
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Net cost of goods sold Employee beneft expense Incentive bonuses for franchisees Depreciation and amortization Utilities expense Operating lease payments Other costs and expenses Total operating costs and operating expenses	$ 151,820,619 25,784,678 22,732,406 20,072,282 4,175,339 1,011,231 20,753,379	$ 150,081,406 26,225,115 21,822,920 18,751,911 4,559,080 1,029,585 20,538,977
	$ 246,349,934	$ 243,008,994

(27) Employee benefit expense

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For the year ended For the year ended
December 31, 2020 December 31, 2019
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	For the year ended December 31, 2020	For the year ended December 31, 2019
Wages and salaries Labor and health insurance fees Pension costs Other personnel expenses	$ 21,271,792 1,928,195 1,063,793 1,520,898	$ 21,598,372 2,010,371 1,112,531 1,503,841
	$ 25,784,678	$ 26,225,115

A. According to the Articles of Incorporation of the Company, a ratio of distributable profit of the current year, after covering accumulated losses, shall be distributed as employees’ compensation and directors’ and supervisors’ remuneration. The ratio shall not be lower than 2% for employees’ compensation and shall not be higher than 2% for directors’ and supervisors’ remuneration.
B. For the years ended December 31, 2020 and 2019, employees’ compensation was accrued at $543,617 and $567,096, respectively; while directors’ and supervisors’ remuneration was accrued at $181,620 and $189,465, 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 year for the year ended December 31, 2020, respectively. The employees’ compensation and directors’ and supervisors’ remuneration resolved by the Board of Directors were $543,617 and $181,620 and the employees’ compensation will be distributed in the form of cash.

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.

(28) Interest income

	For the year ended December 31, 2020	For the year ended December 31, 2019
Interest income	$ 505,639	$ 793,898
(29) Other income
	For the year ended December 31, 2020	For the year ended December 31, 2019
Grants income Rental revenue Dividend income Others	$ 685,082 349,865 61,961 947,117	$ 649,919 306,257 49,542 1,078,716
	$ 2,044,025	$ 2,084,434

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(30) Other gains and losses

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For the year ended For the year ended
December 31, 2020 December 31, 2019
Gain from lease modification $ 79,685 $ 58,910
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Gain from lease modifcation	For the year ended December 31, 2020 $ 79,685	For the year ended December 31, 2019 $ 58,910
Gain (loss) on disposal of property, plant and equipment Reversal of impairment loss on property, plant and equipment Loss on disposal of investments Other gains and losses	20,007 472 - ( 86,366)	( 11,428 ) 13,618 ( 3,402 ) ( 86,735)
	$ 13,798	($ 29,037)

(31) Finance costs

	For the year ended December 31, 2020	For the year ended December 31, 2019
Interest expense	$ 1,321,386	$ 1,216,000
(32) Income tax A. Income tax expense (a) Components of income tax expense:
	For the year ended December 31, 2020	For the year ended December 31, 2019
Current tax: Current tax on proft for the year 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	$ 3,012,757 - ( 204,859)	$ 3,132,151 20,212 ( 161,668)
	2,807,898	2,990,695
	( 337,700)	61,383
	$ 2,470,198	$ 3,052,078

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

	For the year ended December 31, 2020	For the year ended December 31, 2019
Remeasurement of defned beneft obligations Changes in fair value of fnancial assets at fair value through other comprehensive income	($ 47,785 ) ( 2,465)	($ 10,816 ) 9,949
	($ 50,250)	($ 867)
B. Reconciliation between income tax expense and accounting profit
	For the year ended December 31, 2020	For the year ended December 31, 2019
Tax calculated based on proft before tax and statutory tax rate Expenses disallowed by tax regulation Tax on undistributed surplus earnings Over provision of prior year’s income tax Effect from investment tax credits Effect from tax losses Income tax expense	$ 3,360,438 ( 680,627 ) - ( 204,859 ) - ( 4,754)	$ 3,843,762 ( 647,195 ) 20,212 ( 161,668 ) 311 ( 3,344)
	$ 2,470,198	$ 3,052,078

The difference between the Group’s accounting income and taxable income in 2020 and 2019 was mainly due to the dividend income, investment tax credits and the operating loss of subsidiaries.

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

		2020	2020
	January 1	Recongized in proft of loss	Recognized in other comprehensive income	December 31
Deferred tax assets Allowance for doubtful accounts Unrealized sales allowance Loss on inventory market value decline Unrealized expenses Book-tax difference of pension Remeasurements of the defned beneft plan Tax losses Others Deferred tax liabilities Unrealized gain Foreign investment income	$ 14,102 8,469 31,536 716,042 148,609 805,217 36,277 99,965	$ 15,804 ( 448 ) ( 6,615 ) 17,628 ( 2,255 ) - ( 36,277 ) 92,191	$ - - - - - 47,785 - -	$ 29,906 8,021 24,921 733,670 146,354 853,002 - 192,156
	1,860,217	80,028	47,785	1,988,030
	( 1,467,326 ) ( 4,113,203)	37,177 220,495	2,465 -	( 1,427,684 ) ( 3,892,708)
	( 5,580,529)	257,672	2,465	( 5,320,392)
	($ 3,720,312)	$ 337,700	$ 50,250	($ 3,332,362)

		2019
	January 1	Recongized in proft of loss	Recognized in other comprehensive income	December 31
Deferred tax assets Allowance for doubtful accounts $ 14,739 ($ 637 ) $ - $ 14,102 Unrealized sales allowance 10,229 ( 1,760 ) - 8,469 Loss on inventory market value decline 25,448 6,088 - 31,536 Unrealized expenses 511,276 204,766 - 716,042 Book-tax difference of pension 154,720 ( 6,111 ) - 148,609 Remeasurements of the defned beneft plan 794,401 - 10,816 805,217 Tax losses 93,681 ( 57,404 ) - 36,277 Others 122,549 ( 22,584) - 99,965 1,727,043 122,358 10,816 1,860,217 Deferred tax liabilities Unrealized gain ( 1,496,065 ) 38,688 ( 9,949 ) ( 1,467,326 ) Foreign investment income ( 3,890,774) ( 222,429) - ( 4,113,203) ( 5,386,839) ( 183,741) ( 9,949) ( 5,580,529) ($ 3,659,796) ($ 61,383) $ 867 ($ 3,720,312)	$ 14,739 10,229 25,448 511,276 154,720 794,401 93,681 122,549	($ 637 ) ( 1,760 ) 6,088 204,766 ( 6,111 ) - ( 57,404 ) ( 22,584)	$ - - - - - 10,816 - -	$ 14,102 8,469 31,536 716,042 148,609 805,217 36,277 99,965
	1,727,043	122,358	10,816	1,860,217
	( 1,496,065 ) ( 3,890,774)	38,688 ( 222,429)	( 9,949 ) -	( 1,467,326 ) ( 4,113,203)
	( 5,386,839)	( 183,741)	( 9,949)	( 5,580,529)

D. Expiration dates of unused taxable loss and amounts of unrecognized deferred tax assets are as follows:

December 31, 2020	December 31, 2020	December 31, 2020	December 31, 2020	December 31, 2020
Year incurred	Amount fled / assessed	Unused amount	Unrecognized deferred tax assets	Usable until
2011~2020 $ 1,696,659 $ 1,696,659 $ 1,696,659 2021~2030

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December 31, 2019
Unrecognized deferred
Year incurred Amount filed / assessed Unused amount tax assets Usable until
2010~2019 $ 1,912,586 $ 1,912,586 $ 1,731,204 2020~2029
E. The amounts of deductible temporary differences that were not recognized as deferred tax assets
are as follows:
December 31, 2020 December 31, 2019
Deductible temporary differences $ 30,132 $ 109,999
F. The Company’s income tax returns through 2018 have been assessed and approved by the Tax
Authority.
(33) Earnings per share
For the year ended December 31, 2020
Weighted average
number of ordinary shares Earnings per share
Amount after tax
outstanding(shares in (in dollars)
thousands)
Basic earnings per share
Profit attributable to ordinary shareholders of the parent $ 10,238,162 1,039,622 $ 9.85
Diluted earnings per share
Profit attributable to ordinary shareholders of the parent $ 10,238,162 1,039,622
Assumed conversion of all dilutive potential ordinary shares
Employees’ compensation - 2,358
Shareholders of the parent plus assumed conversion of all dilutive potential
ordinary shares $ 10,238,162 1,041,980 $ 9.83
For the year ended December 31, 2019
Weighted average
number of ordinary shares Earnings per share (in
Amount after tax
outstanding(shares in dollars)
thousands)
Basic earnings per share
Profit attributable to ordinary shareholders of the parent $ 10,542,860 1,039,622 $ 10.14
Diluted earnings per share
Profit attributable to ordinary shareholders of the parent $ 10,542,860 1,039,622
Assumed conversion of all dilutive potential ordinary shares
Employees’ compensation - 2,169
Shareholders of the parent plus assumed conversion of all dilutive potential
ordinary shares $ 10,542,860 1,041,791 $ 10.12
(34) Supplemental cash flow information
A. Investing activities with partial cash payments
For the year ended For the year ended
December 31, 2020 December 31, 2019
Purchase of property, plant and equipment $ 9,013,222 $ 7,699,028
Add: Opening balance of payable on equipment 1,364,370 914,557
Less: Ending balance of payable on equipment ( 1,355,119 ) ( 1,364,370 )
Cash paid during the year $ 9,022,473 $ 7,249,215
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(35) Changes in liabilities from financing activities

							2020	2020	2020	2020
	Short-term borrowings		Short-term notes and bills payable		Dividend payable		Long-term borrowings		Lease liabilities		Guarantee deposits received		Other non-current liabilities		Liabilities from fnancing activities- gross
At January 1 Changes in cash fow from fnancing activities Interest paid (Note) Impact of changes in foreign exchange rate Changes in other non-cash items At December 31	$ 6,014,658 ( 1,275,247 ) - - -		$	- 3,399,147 - - -	$ - ( 10,473,302 ) - - 10,473,302		$ 508,112 589,579 - 371 (69,509)		$ 68,827,038 ( 11,662,395 ) ( 1,143,668 ) ( 44,501 ) 22,160,542		$ 3,560,485 224,169 - - -		$ 808,335 ( 4,415 ) - - 67,699		$ 79,718,628 ( 19,202,464 ) ( 1,143,668 ) ( 44,130 ) 32,632,034
		$ 4,739,411	$	3,399,147	$	-	$ 1,028,553		$ 78,137,016		$ 3,784,654		$ 871,619		$ 91,960,400

								2019
		Short-term borrowings		Dividend payable		Long-term borrowings		Lease liabilities		Guarantee deposits received		Other non-current liabilities		Liabilities from fnancing activities- gross
At January 1 Changes in cash fow from fnancing activities Interest paid (Note) Impact of changes in foreign exchange rate Changes in other non-cash items At December 31		$ 7,237,785 ( 1,223,127 ) - - -		$ - ( 10,458,106 ) - - 10,458,106		$ 847,040 ( 459,144 ) - 6,244 113,972		$ 52,938,613 ( 11,329,825 ) ( 1,090,750 ) ( 15,592 ) 28,324,592		$ 3,413,265 147,220 - - -		$ 943,724 ( 222,130 ) - - 86,741		$ 65,380,427 ( 23,545,112 ) ( 1,090,750 ) ( 9,348 ) 38,983,411
		$ 6,014,658		$ -		$ 508,112		$ 68,827,038		$ 3,560,485		$ 808,335		$ 79,718,628

Note: Presented in cash flows from operating activities.

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7. RELATED PARTY TRANSACTIONS

(1) Parent and ultimate controlling party

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

(2) Names of related parties and relationship

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Names of related parties Relationship with the Group
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Uni-President Enterprises Corp.	Ultimate parent company
Mister Donut Taiwan Co., Ltd.	Investee of the Company accounted for using the equity method
Presicarre Corp.	〃
Uni-President Organics Corp.	〃
President Technology Corp.	〃
President Fair Development Corp.	〃
Uni-President Development Corp.	〃
Presco Netmarketing Inc.	Subsidiary of ultimate parent company
Uni-president Trading(Kunshan) Co., Ltd.	〃
Tait Marketing & Distribution Co., Ltd.	〃
Tung Ang Enterprises Corp.	〃
Lien Bo Corp.	〃
President Packaging Industrial Corp.	〃
President Tokyo Corp.	〃
Songjiang President Enterprises Co., Ltd.	〃
Kai Ya Food Co., Ltd.	Sub-subsidiary of ultimate parent company
ZhenZhou President Enterprises Co., Ltd	〃
Kuang Chuan Dairy Co., Ltd.	Investee of ultimate parent company accounted for using the equity method
Wei Lih Food Industrial Co., Ltd.	〃
Prince Housing & Development Corp.	〃
Wei Kuon Co., Ltd.	Subsidiaries of investee of ultimate parent company accounted for using the equity method
Tong Zhan Corporation Ltd.	Investees of subsidiaries of ultimate parent company accounted for using the equity method
Koasa Yamako Corp.	The Company is a director of Koasa Yamako Corp.

(3) Significant related party transactions and balances

A. Operating revenue

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For the year For the year
endedDecember 31, 2020 endedDecember 31, 2019
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Sales ofgoods
Ultimate parent company	$	583,442	$	580,342
Associates		135,225		140,979
Sister companies		329,736		278,874
Other related parties		59,721		74,030
Sales of services
Ultimate parent company		18,593		12,417
Associates		55,728		55,905
Sister companies		16,239		14,376
Other related parties		4,526		5,265
	$	1,203,210	$	1,162,188

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

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B. Purchases

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For the year ended For the year ended
December 31, 2020 December 31, 2019
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Ultimate parent company	$	16,738,312	$	16,338,812
Associates		226,563		252,638
Sister companies		5,334,662		4,433,169
Other related parties		2,197,251		2,427,687
	$	24,496,788	$	23,452,306

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

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December 31, 2020 December 31, 2019
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Accounts receivable	$ 232,286 60,516 96,824 4,435	$ 245,123 64,598 81,774 4,289
Ultimate parent company Associates Sister companies Other related parties
	$ 394,061	$ 395,784

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

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December 31, 2020 December 31, 2019
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Notespayable and accountspayable Ultimate parent company Associates Sister companies Other related parties	$ 1,850,470 58,443 634,707 321,798	$ 1,765,350 65,907 583,883 348,524
	$ 2,865,418	$ 2,763,664

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

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For the year ended For the year ended
December 31, 2020 December 31, 2019
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Ultimate parent company	$	23,135	$	112,002
Associates		3,507,884		12,157
Sister companies		31,298		12,398
Other related parties		-		513,952
	$	3,562,317	$	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.

	For the year ended December 31, 2020	For the year ended December 31, 2019
Ultimate parent company Associates Sister companies Other related parties	$ 1,259 58,709 17,196 2,605	$ 13,434 70,200 15,203 1,488
	$ 79,769	$ 100,325

134

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(d) Lease liabilities

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December 31, 2020 December 31, 2019
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	December 31, 2020	December 31, 2019
Ultimate parent company Associates Sister companies Other related parties	$ 73,102 3,654,236 265,288 472,611	$ 128,016 546,049 294,591 524,690
	$ 4,465,237	$ 1,493,346

F. Property transactions

Acquisition of property, plant and equipment:

	Accounts	For the year ended December 31, 2020	For the year ended December 31, 2019
		$ 67,695 162	$ 67,113 -

(4) Key management compensation

	For the year ended December 31, 2020	For the year ended December 31, 2019
Short-term employee benefts $ 616,223 $ 705,741

Short-term employee benefits

8. PLEDGED ASSETS

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

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Book value
Pledged asset Purpose
December 31, 2020 December 31, 2019
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Land	$	218,675	$	128,643	Long-term and short-term borrowings, guarantee facilities and
					performance guarantee
Buildings		31,450		42,130	Long-term and short-term borrowings and guarantee facilities
Transportation equipment		706,193		591,493	Long-term borrowings
Investment property		56,898		-	Performance guarantee
Pledged time deposits (Recognized as “Other		110,122		61,925	Performance guarantee
non-current assets guarantee deposits paid ”)
	$	1,123,338	$	824,191

9. S I G N I F I C A N T C O N T I N G E N T L I A B I L I T I E S A N D U N R E C O G N I Z E D C O N T R A C T COMMITMENTS

None.

10.SIGNIFICANT DISASTER LOSS None.

11.SIGNIFICANT EVENTS AFTER THE BALANCE SHEET DATE None.

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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

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December 31, 2020 December 31, 2019
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December 31, 2020 December 31, 2019	December 31, 2020	December 31, 2019
Financial assets Financial assets at fair value through proft or loss Financial assets mandatorily measured at fair value through proft or loss $ 2,191,019 $ 1,781,865 Financial assets at fair value through other comprehensive income Designation of equity instrument $ 959,827 $ 807,115 Financial assets at amortized cost Cash and cash equivalents $ 46,562,907 $ 45,445,395 Accounts receivable, net 6,215,272 5,808,480 Other receivables 1,950,481 1,460,354 Other current assets (Note) 2,491,850 2,172,863 Guarantee deposits paid 3,106,790 2,911,887 Other non-current assets (Note) 47,442 40,351 60,374,742 57,839,330 $ 63,525,588 $ 60,428,310 Financial liabilities Financial liabilities at amortized cost Short-term borrowings $ 4,739,411 $ 6,014,658 Short-term notes and bills payable 3,399,147 - Notes payable 1,079,496 1,214,702 Accounts payable (including related parties) 25,056,836 23,587,695 Other payables 25,093,782 26,596,505 Long-term borrowings (including current portion) 1,320,128 730,000 Guarantee deposits received 3,784,654 3,560,485 64,473,454 61,704,045 Lease liabilities $ 78,137,016 $ 68,827,038 $ 142,610,470 $ 130,531,083	$ 2,191,019	$ 1,781,865
	$ 959,827	$ 807,115
	$ 46,562,907 6,215,272 1,950,481 2,491,850 3,106,790 47,442	$ 45,445,395 5,808,480 1,460,354 2,172,863 2,911,887 40,351
	60,374,742	57,839,330
	$ 63,525,588	$ 60,428,310
	$ 4,739,411 3,399,147 1,079,496 25,056,836 25,093,782 1,320,128 3,784,654	$ 6,014,658 - 1,214,702 23,587,695 26,596,505 730,000 3,560,485
	64,473,454	61,704,045
	$ 78,137,016	$ 68,827,038

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

B. Risk management policies

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

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

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

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C. Significant financial risks and degrees of financial risks
(a) Market risk

Foreign exchange risk

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

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December 31, 2020 December 31, 2019
(Foreign currency: functional currency) Foreign currency Foreign currency
amount Exchange rate Book value (NTD) amount Exchange rate Book value (NTD)
(In thousands) (In thousands)
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Financial assets
Monetaryitems
USD : NTD	$	1,878	28.4800 $	53,485	$	792	29.9800 $	23,744
RMB : NTD		2,790	4.3633	12,174		900	4.3055	3,875
JPY : NTD		55,921	0.2763	15,451		43,340	0.2760	11,962
HKD : NTD		1,267	3.6734	4,654		766	3.8478	2,947
EUR : NTD		43	35.0200	1,506		273	33.5900	9,170
Non-monetaryitems
JPY : NTD	$	861,900	0.2763 $	238,143	$	907,500	0.2760 $	250,470
Financial liabilities
Monetaryitems
USD : NTD	$	3,081	28.4800 $	87,747	$	3,610	29.9800 $	108,228
RMB : NTD		2,182	4.3633	9,521		996	4.3055	4,288
JPY : NTD		70,741	0.2763	19,546		52,532	0.2760	14,499

IV. Total exchange gain or loss, including realized and unrealized from significant foreign exchange variations on monetary items held by the Group amounted to $18,840 and $5,005 for the years ended December 31, 2020 and 2019, respectively.
V. Analysis of foreign currency market risk arising from significant foreign exchange variation: Foreign exchange risk with respect to USD primarily arises from the exchange gain or loss resulting from foreign currency translation of 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 years ended December 31, 2020 and 2019 would increase/decrease by $1,713 and $4,224, 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 years ended December 31, 2020 and 2019 would increase/decrease by $11,702 and $12,397, respectively.

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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 post-tax profit for the years ended December 31, 2020 and 2019 would have increased/decreased by $9,540 and $8,519, 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 $47,991 and $40,356, respectively, as a result of other comprehensive income classified as equity investment at fair value through other comprehensive income.
Cash flow and fair value interest rate risk
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 years ended December 31, 2020 and 2019, the Group’s borrowings at variable rate were mainly denominated in New Taiwan dollars and Philippine Peso.
II. If the borrowing interest rate had increased/decreased by 0.25% with all other variables held constant, profit, net of tax for the years ended December 31, 2020 and 2019 would have decreased/increased by $3,300 and $1,825, 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:

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2020
Accounts receivable
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	2020 Accounts receivable
At January 1 Provision for impairment Reversal of impairment Write-offs Effect of foreign exchange At December 31	$ 55,829 61,516 ( 106 ) ( 3,413 ) (6,341)
	$ 107,485

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2019
Accounts receivable
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At January 1	$ 55,464
Provision for impairment	8,640
Reversal of impairment	( 3,978 )
Write-offs	( 1,974 )
Effect of foreign exchange	(2,323)
At December 31	$ 55,829

VII. The Group has no written-off financial assets that are still under recourse procedures on December 31, 2020 and 2019.
(c) Liquidity risk
I. Cash flow forecasting is performed by the operating entities of the Group and aggregated by the Group’s finance department. It monitors rolling forecasts of liquidity requirements to ensure the Group has sufficient cash to meet operational needs, while maintaining sufficient headroom on its undrawn committed borrowing facilities, at all times, so that the Group does not breach borrowing limits or covenants on any of its borrowing facilities. Such forecasting takes into consideration the Group’s debt financing plans, covenant compliance, and compliance with internal balance sheet ratio targets.
II. The 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 $2,105,496 and $1,696,300 as at December 31, 2020 and 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 $12,120,795 and $12,597,913 as of December 31, 2020 and 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 fnancial liabilities:	Less than 1 year	Between 1 and 2 years	Between 2 and 3 years	Over 3 years
December 31, 2020
Short-term borrowings $ 4,741,449 $ - $ - $ - Short-term notes and bills payable 3,399,147 - - - Lease liabilities 13,963,145 13,048,917 12,614,870 44,710,678 Long-term borrowings (including current portion) 336,467 162,794 137,045 798,892

Non-derivative fnancial liabilities:	Less than 1 year	Between 1 and 2 years	Between 2 and 3 years	Over 3 years
December 31, 2019
Short-term borrowings $ 6,020,015 $ - $ - $ - Lease liabilities 12,331,925 12,256,464 10,678,168 37,312,481 Long-term borrowings (including current portion) 244,733 122,071 99,136 316,524

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.

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(3) Fair value information

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

		December 31, 2020	December 31, 2020
			Fair value
	Book value	Level 1	Level 2	Level 3
Financial assets: Guarantee deposits paid Financial liabilities: Guarantee deposits received	$ 3,106,790	$ -	$ -	$ 3,092,709
	$ 3,784,654	$ -	$ -	$ 3,764,776
		December 31, 2019
			Fair value
	Book value	Level 1	Level 2	Level 3
Financial assets: Guarantee deposits paid Financial liabilities: Guarantee deposits received	$ 2,911,887	$ -	$ -	$ 2,887,439
	$ 3,560,485	$ -	$ -	$ 3,530,355

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

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December 31, 2020 Level 1 Level 2 Level 3 Total
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Assets
Recurringfair value measurements
Financial assets at fair value through proft or loss
Benefciary certifcates	$	2,105,496	$	-	$	-	$	2,105,496
Equity securities		-		-		85,523		85,523
		2,105,496		-		85,523		2,191,019
Financial assets at fair value through other comprehensive income
Equity securities		955,479		-		4,348		959,827
		955,479		-		4,348		959,827
	$	3,060,975	$	-	$	89,871	$	3,150,846

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December 31, 2019 Level 1 Level 2 Level 3 Total
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$ 1,696,300 -	$ - -	$ - 85,565	$ 1,696,300 85,565
1,696,300	-	85,565	1,781,865
802,767	-	4,348	807,115
802,767	-	4,348	807,115
$ 2,499,067	$ -	$ 89,913	$ 2,588,980

(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 years ended December 31, 2020 and 2019, there was no transfer between Level 1 and Level 2.
F. For the years ended December 31, 2020 and 2019, there was no significant transfer in or out of Level 3.
G. The 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:

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

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

13.SUPPLEMENTARY DISCLOSURES

(1) Significant transactions information

A. Loans to others: None.
B. Provision of endorsements and guarantees to others: None.
C. Holding of marketable securities at the end of the period (not including subsidiaries, associates and joint ventures): Please refer to Table 1.
D. Acquisition or sale of the same security with the accumulated cost reaching $300 million or 20% of the Company’s paid-in capital: Please refer to Table 2.
E. Acquisition of real estate reaching $300 million or 20% of paid-in capital or more: Please refer to Table 3.
F. Disposal of real estate reaching $300 million or 20% of paid-in capital or more: None.
G. Purchases or sales of goods from or to related parties reaching $100 million or 20% of paid-in capital or more: Please refer to Table 4.
H. Receivables from related parties reaching $100 million or 20% of paid-in capital or more: Please refer to Table 5.
I. Trading in derivative instruments undertaken during the reporting periods: None.
J. Significant inter-company transactions during the reporting periods: Please refer to Table 6.

(2) Information on investees

Names, locations and other information of investee companies (not including investees in Mainland

China): Please refer to Table 7.

(3) Information on investments in Mainland China
A. Basic information: Please refer to Table 8.
B. Significant transactions, either directly or indirectly through a third area, with investee companies in the Mainland Area: None.

(4) Major shareholders information

List of shareholders holding more than 5% (inclusive) of shares: Please refer to Table 9.

14.SEGMENT INFORMATION

(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 restaurantrelated 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.

142 2020 ANNUAL REPORT

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(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.

(3) Segment information

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

		For the year ended December 31, 2020	For the year ended December 31, 2020	For the year ended December 31, 2020	For the year ended December 31, 2020
	Convenience stores	Retail business group	Logistics business group	Other operating segments	Adjustment and elimination	Total
External revenue (net) Internal department revenue Total segment revenue Segment income Depreciation and amortization Gain (loss) on investments accounted for using equity method Income tax expense Interest income Interest expense	$ 167,339,677 808,179	$ 68,955,912 2,336,231	$ 2,116,524 14,201,019	$ 20,082,794 7,885,309	$ - (25,230,738)	$ 258,494,907 -
	$ 168,147,856	$ 71,292,143	$ 16,317,543	$ 27,968,103	($ 25,230,738)	$ 258,494,907
	$ 11,714,515	$ 2,564,422	$ 1,346,435	$ 352,244	($ 2,167,160)	$ 13,810,456
	($ 9,998,105)	($ 5,632,615)	($ 1,277,717)	($ 3,053,893)	($ 109,952)	($ 20,072,282)
	$ 3,092,323	($ 34,839 )	$ 163,640	($ 786,707 )	($ 2,011,010 )	$ 423,407
	($ 1,476,353)	($ 536,740)	($ 233,528)	($ 262,409)	$ 38,832	($ 2,470,198)
	$ 32,588	$ 59,074	$ 8,786	$ 405,192	($ 1)	$ 505,639
	($ 394,400)	($ 714,568)	($ 45,644)	($ 170,838)	$ 4,064	($ 1,321,386)

		For the year ended December 31, 2019
	Convenience stores	Retail business group	Logistics business group	Other operating segments	Adjustment and elimination	Total
External revenue (net) Internal department revenue Total segment revenue Segment income Depreciation and amortization Gain (loss) on investments accounted for using equity method Income tax expense Interest income Interest expense	$ 157,416,544 615,023	$ 76,009,484 2,235,363	$ 2,100,351 13,367,407	$ 20,532,509 7,194,186	$ - (23,411,979)	$ 256,058,888 -
	$ 158,031,567	$ 78,244,847	$ 15,467,758	$ 27,726,695	($ 23,411,979)	$ 256,058,888
	$ 12,220,466	$ 3,866,585	$ 1,237,098	$ 2,853,051	($ 5,013,013)	$ 15,164,187
	($ 9,042,048)	($ 5,384,084)	($ 1,281,129)	($ 2,937,381)	($ 107,269)	($ 18,751,911)
	$ 4,185,310	($ 13,562)	$ 149,382	$ 1,024,423	($ 4,864,555)	$ 480,998
	($ 1,677,606)	($ 904,776)	($ 221,432)	($ 287,096)	$ 38,832	($ 3,052,078)
	$ 38,037	$ 43,583	$ 9,128	$ 703,151	($ 1)	$ 793,898
	($ 359,593)	($ 634,522)	($ 50,629)	($ 175,457)	$ 4,201	($ 1,216,000)

(4) Reconciliation of segment income (loss)

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

(5) Information on products and services

Revenue from external customers is mainly from retail services and services provided. Details of revenue is as follows:

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For the year ended For the year ended
December 31, 2020 December 31, 2019
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Convenience stores(including foreign subsidiary)	$	196,066,539	$	192,059,882
Sales of daily items		24,486,904		24,183,746
Restaurants		12,374,598		12,659,972
Delivery service		11,572,742		10,781,896
Gas station		7,901,725		10,272,603
Logistics service		2,116,524		2,100,351
Others		3,975,875		4,000,438
	$	258,494,907	$	256,058,888

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(6) Geographical information

As of and for the years ended December 31, 2020 and 2019, the information on geographic area is as follows:

	2020	2020	2019	2019
	Revenue	Non-current assets	Revenue	Non-current assets
	$ 224,809,048 33,685,859	$ 107,215,175 12,187,344	$ 216,098,825 39,960,063	$ 95,664,520 13,221,473

(7) Major customer information

No customers constituted more than 10% of the Group’s total revenue for the years ended December 31, 2020 and 2019

144 2020 ANNUAL REPORT

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PRESIDENT CHAIN STORE CORP. AND SUBSIDIARIES Holding of marketable securities at the end of the period (not including subsidiaries, associates and joint ventures)

Table 1

December 31, 2020 Expressed in thousands of NTD (Except as otherwise indicated)

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As of December 31, 2020
Relationship with the General
Securities held by Type and name of securities securities issuer ledger account Number Book value [Ownership ] Fair value Footnote
of shares (%)
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	Stock:
President Chain Store Corp.	President Investment Trust Corp.	Director of President Investment Trust Corp.	Financial assets at fair value through proft or loss－non-	2,667,600 $	45,298	7.60 $	45,298
			current
President Chain Store Corp.	Career Consulting Co. Ltd.	None	〃	837,753	14,504	5.37	14,504
President Chain Store Corp.	Kaohsiung Rapid Transit Corp.	〃	〃	2,572,127	25,721	0.92	25,721
President Chain Store Corp.	PK Venture Capital Corp.	Director of PK Venture	〃	321,300	-	6.67	-
		Capital Corp.
Mech-President Corp.	Yamay International Development Corp.	None	〃	9	-	-	-
President Chain Store Corp.	President Securities Corp.	Investee of Uni-President	Financial assets at fair value	38,985,684	717,337	2.79	717,337
		Enterprises Corp.	through other comprehensive
		under the equity method	income－non-current
President Chain Store Corp.	Duskin Co., Ltd.	None	〃	300,000	238,142	0.61	238,142
President Chain Store Corp.	Koasa Yamako Corp.	Director of Koasa Yamako	〃	650,000	4,348	10.00	4,348
		Corp.
	Benefciary certifcates:
Books.com. Co., Ltd.	Jih Sun Money Market Fund	None	Financial assets at fair value through proft or loss－current	2,675,943	40,005	-	40,005
Books.com. Co., Ltd.	Capital Money Market Fund	〃	〃	1,229,732	20,002	-	20,002
Books.com. Co., Ltd.	Union Money Market Fund	〃	〃	3,756,884	50,003	-	50,003
Chieh Shun Logistics International	Taishin 1699 Money Market Fund	〃	〃	5,960,766	81,340	-	81,340
Corp.
Chieh Shun Logistics International	UPAMC James Bond Money Market	〃	〃	2,725,601	45,902	-	45,902
Corp.	Fund
Uni-Wonder Corp.	Union Money Market Fund	〃	〃	22,539,952	300,000	-	300,000
Uni-Wonder Corp.	FSITC Taiwan Money Market Fund	〃	〃	18,142,352	280,000	-	280,000
Uni-Wonder Corp.	Allianz Global Investors Taiwan Money	〃	〃	19,789,597	250,000	-	250,000
	Market Fund
Uni-Wonder Corp.	Taishin 1699 Money Market Fund	〃	〃	7,328,208	100,000	-	100,000
Uni-President Department Store	Prudential Financial Money Market	〃	〃	225,636	3,600	-	3,600
Corp.	Fund
Uni-President Department Store	Jih Sun Money Market Fund	〃	〃	13,307,511	198,948	-	198,948
Corp.
President Information Corp.	FSITC Taiwan Money Market Fund	〃	〃	3,663,272	56,537	-	56,537
President Information Corp.	Prudential Financial Money Market	〃	〃	5,430,438	86,642	-	86,642
	Fund
President Information Corp.	Jih Sun Money Market Fund	〃	〃	4,968,959	74,286	-	74,286
President Information Corp.	Union Money Market Fund	〃	〃	3,005,327	40,000	-	40,000
President Logistics International	Taishin 1699 Money Market Fund	〃	〃	4,499,979	61,406	-	61,406
Corp.
President Logistics International	UPAMC James Bond Money Market	〃	〃	772,065	13,002	-	13,002
Corp.	Fund
President Pharmaceutical Corp.	Jih Sun Money Market Fund	〃	〃	499,153	7,462	-	7,462
President Pharmaceutical Corp.	Taishin 1699 Money Market Fund	〃	〃	2,957,710	40,361	-	40,361
Q-ware Systems & Services Corp.	Eastspring Investments Well Pool	〃	〃	25,961,335	356,000	-	356,000
	MoneyMarket Fund

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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

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For the year ended December 31, 2020
Table 2 Expressed in thousands of NTD
(Except as otherwise indicated)
Balance as at Balance as at
General Relationship January 1, 2020 Addition Disposal Other increase (decrease) December 31, 2020
Investor Type and name of securities Counterparty with the
ledger account investor Number of shares Amount Number of shares Amount Number of shares Selling price Book value on disGain (loss) posal Number of shares Amount Number of shares Amount
Beneficiary certificates:
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	Benefciary certifcates:
President Chain Store Corp.	UPAMC James Bond Money	Note 1	Not applicable	Not applicable	-	$	-	59,449,851	$ 1,000,000	59,449,851	$ 1,000,309	$ 1,000,000	$	309	-	$	-	-	$	-
	Market Fund
Books.com. Co., Ltd.	Jih Sun Money Market Fund	〃	〃	〃	1,344,764		20,005	161,639,258	2,403,000	160,308,079	2,383,881	2,383,000		881	-		-	2,675,943		40,005
Books.com. Co., Ltd.	Capital Money Market Fund	〃	〃	〃	-		-	34,276,697	557,000	33,046,965	537,143	537,000		143	-		2	1,229,732		20,002
Books.com. Co., Ltd.	CTBC Hwa-win Money Market	〃	〃	〃	-		-	52,306,259	580,000	52,306,259	580,163	580,000		163	-		-	-		-
	Fund
Chieh Shun Logistics	Taishin 1699 Money Market Fund	〃	〃	〃	6,846,847		93,009	80,993,369	1,102,900	81,879,450	1,114,892	1,114,567		325	-	(	2 )	5,960,766		81,340
International Corp.
Chieh Shun Logistics	UPAMC James Bond Money	〃	〃	〃	1,698,941		28,505	28,099,894	472,500	27,073,234	455,198	455,100		98	-	(	3 )	2,725,601		45,902
International Corp.	Market Fund
Uni-Wonder Corp.	Union Money Market Fund	〃	〃	〃	-		-	92,542,496	1,230,000	70,002,544	930,779	930,000		779	-		-	22,539,952		300,000
Uni-Wonder Corp.	FSITC Taiwan Money Market	〃	〃	〃	19,527,436		300,000	84,387,942	1,300,000	85,773,026	1,321,113	1,320,000		1,113	-		-	18,142,352		280,000
	Fund
Uni-Wonder Corp.	Allianz Global Investors Taiwan	〃	〃	〃	15,898,378		200,000	107,010,614	1,350,000	103,119,395	1,300,888	1,300,000		888	-		-	19,789,597		250,000
	Money Market Fund
Uni-Wonder Corp.	Taishin 1699 Money Market Fund	〃	〃	〃	12,514,539		170,000	54,340,339	740,000	59,526,670	810,368	810,000		368	-		-	7,328,208		100,000
Uni-Wonder Corp.	Prudential Financial Money	〃	〃	〃	18,260,010		290,000	36,447,972	580,000	54,707,982	870,786	870,000		786	-		-	-		-
	Market Fund
Uni-Wonder Corp.	Nomura Money Market Fund	〃	〃	〃	-		-	19,509,550	320,000	19,509,550	320,096	320,000		96	-		-	-		-
President Drugstore Business	Taishin 1699 Money Market Fund	〃	〃	〃	-		-	193,677,816	2,637,000	193,677,816	2,637,415	2,637,000		415	-		-	-		-
Corp.
Uni-President Department	UPAMC James Bond Money	〃	〃	〃	-		-	91,578,664	1,539,700	91,578,664	1,540,045	1,539,700		345	-		-	-		-
Store Corp.	Market Fund
Uni-President Department	Jih Sun Money Market Fund	〃	〃	〃	-		-	125,172,585	1,869,987	111,865,074	1,671,447	1,671,040		407	-		1	13,307,511		198,948
Store Corp.
President Information Corp.	Union Money Market Fund	〃	〃	〃	-		-	32,882,015	437,000	29,876,688	397,118	397,000		118	-		-	3,005,327		40,000
President Logistics	Taishin 1699 Money Market Fund	〃	〃	〃	736,692		10,007	46,269,683	630,300	42,506,396	579,007	578,904		103	-		3	4,499,979		61,406
International Corp.
President Logistics	UPAMC James Bond Money	〃	〃	〃	864,391		14,503	21,820,980	367,000	21,913,306	368,548	368,499		49	-	(	2 )	772,065		13,002
International Corp.	Market Fund
President Pharmaceutical	Taishin 1699 Money Market Fund	〃	〃	〃	1,464		20	78,416,917	1,067,860	75,460,671	1,027,865	1,027,530		335	-		11	2,957,710		40,361
Corp.
Q-ware Systems & Services	Eastspring Investments Well Pool	〃	〃	〃	19,990,627		273,000	216,123,478	2,960,000	210,152,770	2,877,709	2,877,000		709	-		-	25,961,335		356,000
Corp.	Money Market Fund
	Stock:
President Chain Store (Hong	President Chain Store (Shanghai)	Note 2	Issuance of	Parent	-		103,731	-	523,594	-	-	-		-	-	(	182,293 )	-		445,032
Kong) Holdings Limited	Ltd.		common stock	company to
			for cash	subsidiary

Note 1: The security was recognized as "Financial assets at fair value through profit or loss–current". Note 2: The security was recognized as "Investments accounted for using equity method".

146 2020 ANNUAL REPORT

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PRESIDENT CHAIN STORE CORP. AND SUBSIDIARIES

Acquisition of real estate reaching $300 million or 20% of paid-in capital or more

Acquisition of real estate reaching $300 million	Acquisition of real estate reaching $300 million	Acquisition of real estate reaching $300 million	Acquisition of real estate reaching $300 million	Acquisition of real estate reaching $300 million	Acquisition of real estate reaching $300 million	Acquisition of real estate reaching $300 million	or 20% of paid-in capital or more	or 20% of paid-in capital or more	or 20% of paid-in capital or more	or 20% of paid-in capital or more	or 20% of paid-in capital or more	or 20% of paid-in capital or more	or 20% of paid-in capital or more
Table 3							For the year ended December 31, 2020 Expressed in thousands of NTD (Except as otherwise indicated)
Corporation of acquisition	Name of property	Date of acquisition	Trade amount	Status of payment pf proceeds	Name of the counter-party	Relationship	The last transfer data od counter-party				Basis for price determination	Reason for acquisition	other terms
							Owner	Relationship	Transfer Day	Amount
Uni-President Cold-Chain Corp. Land of Jinhua Nuannuan Dist., Keelung City November 20,2020 $642,000 100% of price was paid Tze Shin International Co., Ltd. Not applicable Not applicable Not applicable Not applicable Not applicable Based on the appraisal results of Evermore Valuation and market conditions to bargain. Based on the comprehensive planning of the company Not applicable

2020 ANNUAL REPORT 147

Consolidated Financial Statements and Report of Independent Accountants

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

Table 4

For the year ended December 31, 2020 Expressed in thousands of NTD (Except as otherwise indicated)

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Differences in transaction
Notes/accounts receivable
Transaction terms compared to third party
(payable)
transactions
Purchaser/seller Counterparty Relationship with the Percentage Percentage of Footnote
counterparty total notes/
Purchases of total
Amount Credit term Unit price Credit term Balance accounts
(sales) purchases
receivable
(sales)
(payable)
President Chain Store Uni-President Enterprises Corp. Ultimate parent company Purchases $ 16,248,126 15 Net 30~40 days from the end of No significant No significant ($ 1,360,290 ) ( 8 )
----- End of picture text -----

President Chain Store	Uni-President Enterprises Corp.	Ultimate parent company	Purchases	$	16,248,126	15 Net 30~40 days from the end of	No signifcant	No signifcant	($	1,360,290 ) (	8 )
Corp.						the month when invoice is issued	differences	differences
	Uni-President Superior	Subsidiary	〃		4,011,077	4 Net 45 days from the end of the	〃	〃	(	714,114 ) (	4 )
	Commissary Corp.					month when invoice is issued
	Tung Ang Enterprises Corp.	Sister company	〃		2,257,958	2 Net 30 days from the end of the	〃	〃	(	177,619 ) (	1 )
						month when invoice is issued
	21 Century Co., Ltd.	Subsidiary	〃		610,638	1 Net 30~60 days from the end of	〃	〃	(	117,521 ) (	1 )
						the month when invoice is issued
	Q-ware Systems & Services	〃	〃		589,592	1 Net 40 days from the end of the	〃	〃	(	108,442 ) (	1 )
	Corp.					month when invoice is issued
	Kai Ya Food Co., Ltd.	Sister company	〃		580,071	1 Net 40 days from the end of the	〃	〃	(	87,249 ) (	1 )
						month when invoice is issued
	Lien Bo Corp.	〃	〃		535,933	- Net 10~54 days from the end of	〃	〃	(	64,519 )	-
						the month when invoice is issued
	Kuang Chuan Dairy Co., Ltd.	Other related party	〃		533,167	- Net 30~65 days from the end of	〃	〃	(	107,328 ) (	1 )
						the month when invoice is issued
	Tait Marketing & Distribution Co.,	Sister company	〃		468,295	- Net 20~70 days from the end of	〃	〃	(	92,912 ) (	1 )
	Ltd.					the month when invoice is issued
	President Packaging Industrial	〃	〃		417,431	- Net 15~60 days from the end of	〃	〃	(	94,417 ) (	1 )
	Corp.					the month when invoice is issued
	President Transnet Corp.	Subsidiary	〃		392,499	- Net 60 days from the end of the	〃	〃	(	56,423 )	-
						month when invoice is issued
	President Pharmaceutical Corp.	〃	〃		371,590	- Net 60~70 days from the end of	〃	〃	(	115,292 ) (	1 )
						the month when invoice is issued
	Wei Lih Food Industrial Co., Ltd.	Other related party	〃		284,004	- Net 30~60 days from the end of	〃	〃	(	34,961 )	-
						the month when invoice is issued
Capital Marketing	President Chain Store Corp.	Parent company	Service revenue		(213,642 ) (	64 ) Net 45~60 days from the end of	〃	〃		39,835	57
Consultant Corp.						the month when invoice is issued
Chieh Shun Logistics	President Transnet Corp.	Subsidiary of President	Delivery revenue	(	693,339 ) (	36 ) Net 40 days from the end of the	〃	〃		82,723	41
International Corp.		Chain Store Corp.				month when invoice is issued
	President Logistics International	Parent company	〃	(	1,172,069 ) (	61 ) Net 20 days from the end of the	〃	〃		113,019	56
	Corp.					month when invoice is issued
President Transnet Corp.	Chieh Shun Logistics	Subsidiary of President	Service cost		693,339	7 Net 40 days from the end of the	〃	〃	(	82,723 ) (	4 )
	International Corp.	Chain Store Corp.				month when invoice is issued
	President Chain Store Corp.	Parent company	Sales revenue	(	392,499 ) (	63 ) Net 60 days from the end of the	〃	〃		56,423	4
						month when invoice is issued
Uni-Wonder Corp.	Uni-President Enterprises Corp.	Ultimate parent company	Purchases		361,526	8 Net 30 days from the end of the	〃	〃	(	33,539 ) (	6 )
						month when invoice is issued
	Tong Zhan Corporation Ltd.	Other related party	〃		992,081	23 Net 25 days from the end of the	〃	〃	(	114,190 ) (	20 )
						month when invoice is issued
	Retail Support International Corp.	Subsidiary of President	〃		215,922	5 Net 30 days from the end of the	〃	〃	(	19,188 ) (	3 )
		Chain Store Corp.				month when invoice is issued
	Tait Marketing & Distribution Co.,	Other related party	〃		118,823	3 Net 30 days from the end of the	〃	〃	(	6,643 ) (	1 )
	Ltd.					month when invoice is issued
President Information	President Chain Store Corp.	Parent company	Service revenue	(	1,010,132 ) (	68 ) Net 45 days from the end of the	No signifcant	No signifcant		109,070	54
Corp.						month when invoice is issued	differences	differences
President Logistics	Chieh Shun Logistics	Subsidiary	Service cost		1,172,069	37 Net 20 days from the end of the	〃	〃	(	113,019 ) (	32 )
International Corp.	International Corp.					month when invoice is issued
	Retail Support International Corp.	Parent company	Delivery revenue	(	666,411 ) (	20 ) Net 20 days from the end of the	〃	〃		78,669	21
						month when invoice is issued
	Uni-President Cold-Chain Corp.	Subsidiary of President	〃	(	1,179,022 ) (	35 ) Net 20 days from the end of the	〃	〃		109,368	30
		Chain Store Corp.				month when invoice is issued

148

2020 ANNUAL REPORT

Consolidated Financial Statements and Report of Independent Accountants

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Differences in transaction
Notes/accounts receivable
Transaction terms compared to third party
(payable)
transactions
Purchaser/seller Counterparty Relationship with the Percentage Percentage of Footnote
counterparty total notes/
Purchases of total
Amount Credit term Unit price Credit term Balance accounts
(sales) purchases
receivable
(sales)
(payable)
Wisdom Distribution Service 〃〃 ($ 1,208,703 ) ( 36 ) Net 20 days from the end of the 〃〃 $ 152,473 41
----- End of picture text -----

	Wisdom Distribution Service	〃	〃	($	1,208,703 ) (	36 ) Net 20 days from the end of the	〃	〃	$	152,473	41
	Corp.					month when invoice is issued
	Retail Support Taiwan Corp.	〃	〃	(	100,839 ) (	3 ) Net 20 days from the end of the	〃	〃		9,405	3
						month when invoice is issued
Retail Support International	Retail Support Taiwan Corp.	Subsidiary	Service cost		312,451	19 Net 15~20 days from the end of	〃	〃	(	11,540 ) (	8 )
Corp.						the month when invoice is issued
	President Logistics International	〃	〃		666,411	40 Net 20 days from the end of the	〃	〃	(	78,669 ) (	55 )
	Corp.					month when invoice is issued
	Uni-Wonder Corp.	Subsidiary of President	Delivery revenue	(	215,922) (	7 ) Net 30 days from the end of the	〃	〃		19,188	11
		Chain Store Corp.				month when invoice is issued
Uni-President Cold-Chain	President Logistics International	〃	Service cost		1,179,022	38 Net 20 days from the end of the	〃	〃	(	109,368 ) (	2 )
Corp.	Corp.					month when invoice is issued
Wisdom Distribution	President Logistics International	〃	〃		1,208,703	45 Net 20 days from the end of the	〃	〃	(	152,473 ) (	33 )
Service Corp.	Corp.					month when invoice is issued
	Books.com. Co., Ltd.	〃	Service revenue	(	303,923 ) (	9 ) Net 30 days from the end of the	〃	〃		27,021	35
						month when invoice is issued
Q-ware Systems &	President Chain Store Corp.	Parent company	〃	(	589,592 ) (	61 ) Net 40 days from the end of the	〃	〃		108,442	71
Services Corp.						month when invoice is issued
President Drugstore	President Pharmaceutical Corp.	Subsidiary of President	Purchases		536,769	5 Net 70 days from the end of the	〃	〃	(	12,589 ) (	1 )
Business Corp.		Chain Store Corp.				month when invoice is issued
President Pharmaceutical	President Drugstore Business	〃	Sales revenue	(	536,769 ) (	34 ) Net 70 days from the end of the	〃	〃		12,589	3
Corp.	Corp.					month when invoice is issued
	President Chain Store Corp.	Parent company	〃	(	371,590 ) (	24 ) Net 60~70 days from the end of	〃	〃		115,292	27
						the month when invoice is issued
21 Century Co., Ltd.	President Chain Store Corp.	〃	〃	(	610,638 ) (	47 ) Net 30~60 days from the end of	〃	〃		117,521	60
						the month when invoice is issued
Uni-President Superior	President Chain Store Corp.	〃	〃	(	4,011,077 ) (	98 ) Net 45 days from the end of the	〃	〃		714,114	100
Commissary Corp.						month when invoice is issued
Retail Support Taiwan	Retail Support International Corp.	〃	Delivery revenue	(	312,451 ) (	78 ) Net 15~20 days from the end of	〃	〃		11,540	50
Corp.						the month when invoice is issued
Zhejiang Uni-Champion	Shanghai President Logistic Co.,	〃	〃	(	124,005 ) (	29 ) Net 60 days from the end of the	〃	〃		35,465	56
Logistics Development	Ltd.					month when invoice is issued
Co., Ltd.
Shanghai President	Zhejiang Uni-Champion Logistics	Subsidiary	Service cost		124,005	21 Net 60 days from the end of the	〃	〃	(	35,465 ) (	31 )
Logistic Co., Ltd.	Development Co., Ltd.					month when invoice is issued
Duskin Serve Taiwan Co.,	President Chain Store Corp.	Parent company	Service revenue	(	197,497 ) (	15 ) Net 15~60 days from the end of	〃	〃		32,930	-
Ltd.						the month when invoice is issued
ICASH Corp.	President Chain Store Corp.	〃	〃	(	165,619 )	- Net 60 days from the end of the	〃	〃		31,207	63
						month when invoice is issued
President Logistic	Shan Dong President Yinzuo	Subsidiary of President	Delivery revenue	(	113,121 ) (	95 ) Net 30 days from the end of the	No signifcant	No signifcant	$	9,456	91
ShanDong Co., Ltd.	Commercial Limited	Chain Store Corp.				month when invoice is issued	differences	differences
Shan Dong President	President Logistic ShanDong	〃	Service cost		113,121	5 Net 30 days from the end of the	〃	〃	(	9,456 ) (	3 )
Yinzuo Commercial	Co., Ltd.					month when invoice is issued
Limited

2020 ANNUAL REPORT 149

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PRESIDENT CHAIN STORE CORP. AND SUBSIDIARIES

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

Table 5	Table 5	Table 5	Table 5	Table 5	December 31, 2020 Expressed in thousands of NTD (Except as otherwise indicated)	December 31, 2020 Expressed in thousands of NTD (Except as otherwise indicated)	December 31, 2020 Expressed in thousands of NTD (Except as otherwise indicated)	December 31, 2020 Expressed in thousands of NTD (Except as otherwise indicated)
Creditor	Counterparty	Relationship with the counterparty	Balance as of December 31, 2020	Turnover rate	Overdue receivables		Amount collected subsequent to the balance sheet date	Allowance for doubtful accounts
					Amount	Action taken
Uni-President Superior Commissary Corp. President Chain Store Corp. Parent company $ 714,114 5.80 21 Century Co., Ltd. President Chain Store Corp. 〃 117,521 6.27 President Pharmaceutical Corp. President Chain Store Corp. 〃 115,292 4.09 President Information Corp. President Chain Store Corp. 〃 109,070 8.64 Q-ware Systems & Services Corp. President Chain Store Corp. 〃 108,442 5.41 President Logistics International Corp. Wisdom Distribution Service Corp. Subsidiary of President Chain Store Corp. 152,473 9.11 Chieh Shun Logistics International Corp. President Logistics International Corp. 〃 113,019 11.19 President Logistics International Corp. Uni-President Cold-Chain Corp. 〃 109,368 11.42					$ - None $ 355,971 $ - - 〃 72,270 - - 〃 48,097 - - 〃 5,083 - - 〃 75,462 - - 〃 139,706 - - 〃 113,019 - - 〃 109,166 -

150 2020 ANNUAL REPORT

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PRESIDENT CHAIN STORE CORP. AND SUBSIDIARIES Significant inter-company transactions during the reporting periods

Table 6

For the year ended December 31, 2020 Expressed in thousands of NTD (Except as otherwise indicated)

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

Transaction
Percentage of
Number Company name Counterparty Relationship consolidated
General ledger account Amount Transaction terms total operating
revenues
or total assets
1 Uni-President Cold-Chain Corp. President Chain Store Corp. Subsidiary to parent Other operating revenue ($ 445,218) Net 20 days from the end of the month 0.17
----- End of picture text -----

			company				when invoice is issued
2	Capital Marketing Consultant Corp.	President Chain Store Corp.	Subsidiary to parent	Service revenue	(	213,642)	Net 45-60 days from the end of the	0.08
			company				month when invoice is issued
3	President Information Corp.	President Chain Store Corp.	Subsidiary to parent	Service revenue	(	1,010,132)	Net 45 days from the end of the month	0.39
			company				when invoice is issued
3	President Information Corp.	President Chain Store Corp.	Subsidiary to parent	Accounts receivable		109,070	Net 45 days from the end of the month	0.05
			company				when invoice is issued
4	Q-ware Systems & Services Corp.	President Chain Store Corp.	Subsidiary to parent	Service revenue	(	589,592)	Net 40 days from the end of the month	0.23
			company				when invoice is issued
4	Q-ware Systems & Services Corp.	President Chain Store Corp.	Subsidiary to parent	Accounts receivable		108,442	Net 40 days from the end of the month	0.05
			company				when invoice is issued
5	Uni-President Superior Commissary	President Chain Store Corp.	Subsidiary to parent	Sales revenue	(	4,011,077)	Net 45 days from the end of the month	1.55
	Corp.		company				when invoice is issued
5	Uni-President Superior Commissary	President Chain Store Corp.	Subsidiary to parent	Accounts receivable		714,114	Net 45 days from the end of the month	0.34
	Corp.		company				when invoice is issued
6	President Pharmaceutical Corp.	President Drugstore Business	Subsidiary to subsidiary	Sales revenue	(	536,769)	Net 70 days from the end of the month	0.21
		Corp.					when invoice is issued
6	President Pharmaceutical Corp.	President Chain Store Corp.	Subsidiary to parent	Sales revenue	(	371,590)	Net 60-70 days from the end of the	0.14
			company				month when invoice is issued
6	President Pharmaceutical Corp.	President Chain Store Corp.	Subsidiary to parent	Accounts receivable		115,292	Net 60-70 days from the end of the	0.06
			company				month when invoice is issued
7	President Transnet Corp.	President Chain Store Corp.	Subsidiary to parent	Sales revenue	(	392,499)	Net 60 days from the end of the month	0.15
			company				when invoice is issued
8	Chieh Shun Logistics International	President Logistics	Subsidiary to subsidiary	Delivery revenue	(	1,172,069)	Net 20 days from the end of the month	0.45
	Corp.	International Corp.					when invoice is issued
8	Chieh Shun Logistics International	President Logistics	Subsidiary to subsidiary	Accounts receivable		113,019	Net 20 days from the end of the month	0.05
	Corp.	International Corp.					when invoice is issued
8	Chieh Shun Logistics International	President Transnet Corp.	Subsidiary to subsidiary	Delivery revenue	(	693,339)	Net 40 days from the end of the month	0.27
	Corp.						when invoice is issued
9	President Logistics International	Retail Support International	Subsidiary to subsidiary	Delivery revenue	(	666,411)	Net 20 days from the end of the month	0.26
	Corp.	Corp.					when invoice is issued
9	President Logistics International	Uni-President Cold-Chain	Subsidiary to subsidiary	Delivery revenue	(	1,179,022)	Net 20 days from the end of the month	0.46
	Corp.	Corp.					when invoice is issued
9	President Logistics International	Wisdom Distribution Service	Subsidiary to subsidiary	Delivery revenue	(	1,208,703)	Net 20 days from the end of the month	0.47
	Corp.	Corp.					when invoice is issued
9	President Logistics International	Wisdom Distribution Service	Subsidiary to subsidiary	Accounts receivable		152,473	Net 20 days from the end of the month	0.07
	Corp.	Corp.					when invoice is issued
9	President Logistics International	Uni-President Cold-Chain	Subsidiary to subsidiary	Accounts receivable		109,368	Net 20 days from the end of the month	0.05
	Corp.	Corp.					when invoice is issued
9	President Logistics International	Retail Support Taiwan Corp.	Subsidiary to subsidiary	Delivery revenue	(	100,839)	Net 20 days from the end of the month	0.04
	Corp.						when invoice is issued
10	Duskin Serve Taiwan Co., Ltd.	President Chain Store Corp.	Subsidiary to parent	Service revenue	(	197,497)	Net 15-60 days from the end of the	0.08
			company				month when invoice is issued
11	21 Century Co., Ltd.	President Chain Store Corp.	Subsidiary to parent	Sales revenue	(	610,638)	Net 30-60 days from the end of the	0.24
			company				month when invoice is issued
11	21 Century Co., Ltd.	President Chain Store Corp.	Subsidiary to parent	Accounts receivable		117,521	Net 30-60 days from the end of the	0.06
			company				month when invoice is issued
12	Wisdom Distribution Service Corp.	Books.com. Co., Ltd.	Subsidiary to subsidiary	Service revenue	(	303,923)	Net 30 days from the end of the month	0.12
							when invoice is issued

2020 ANNUAL REPORT 151

Consolidated Financial Statements and Report of Independent Accountants

Number				Transaction	Transaction	Transaction	Transaction
	Company name	Counterparty	Relationship	General ledger account	Amount	Transaction terms	Percentage of consolidated total operating revenues or total assets
13 Retail Support Taiwan Corp. Retail Support International Corp. Subsidiary to subsidiary Delivery revenue ($ 312,451) Net 15-20 days from the end of the month when invoice is issued 0.12 14 Zhejiang Uni-Champion Logistics Development Co., Ltd. Shanghai President Logistic Co., Ltd. Subsidiary to subsidiary Delivery revenue ( 124,005) Net 60 days from the end of the month when invoice is issued 0.05 15 ICASH Corp. President Chain Store Corp. Subsidiary to parent company Service revenue ( 165,619) Net 60 days from the end of the month when invoice is issued 0.06 16 Retail Support International Corp. Uni-Wonder Corp. Subsidiary to subsidiary Delivery revenue ( 215,922) Net 30 days from the end of the month when invoice is issued 0.08 17 President Logistic ShanDong Co., Ltd. Shan Dong President Yinzuo Commercial Limited Subsidiary to subsidiary Delivery revenue ( 113,121) Net 30 days from the end of the month when invoice is issued 0.04

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

152 2020 ANNUAL REPORT

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PRESIDENT CHAIN STORE CORP. AND SUBSIDIARIES

Names, locations and other information of investee companies (not including investees in Mainland China)

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For the year ended Decmeber 31, 2020
Table 7 Expressed in thousands of NTD
(Except as otherwise indicated)
Initial investment amount Shares held as at December 31, 2020 Investment
Net profit income
(loss)
(loss) of the
Balance as investee recognized
Investor Investee Location Main business activities at December Balance as 31, 2020 December 31, at Number of shares Ownership (%) Book value year ended December for the Company for the by the Footnote
2019 31, 2020 year ended
December
31, 2020
President Chain Store Corp. President Chain Store (BVI) Holdings Ltd. British Virgin Professional investment $ 6,712,138 $ 6,712,138 171,589,586 100.00 $ 25,102,119 ($ 140,337 ) ($ 140,337 ) Subsidiary
----- End of picture text -----

		Islands
President Chain Store Corp.	President Drugstore Business Corp.	Taiwan	Sales of cosmetics, medicines and daily items	288,559	288,559	78,520,000	100.00	1,445,303	287,519	287,519	Subsidiary
President Chain Store Corp.	President Transnet Corp.	Taiwan	Delivery service	711,576	711,576	103,496,399	70.00	1,882,686	904,170	632,919	Subsidiary
President Chain Store Corp.	Mech-President Corp.	Taiwan	Gas station, installment and maintenance of elevators	904,475	904,475	55,858,815	80.87	747,097	149,825	121,165	Subsidiary
President Chain Store Corp.	President Pharmaceutical Corp.	Taiwan	Sales of various health care products, cosmetics, and	330,216	330,216	22,121,962	73.74	699,003	113,382	83,608	Subsidiary
			pharmaceuticals
President Chain Store Corp.	Uni-President Department Store Corp.	Taiwan	Department stores	840,000	840,000	27,999,999	70.00	530,898	224,008	156,806	Subsidiary
President Chain Store Corp.	Uni-President Superior Commissary Corp.	Taiwan	Fresh food manufacture	520,141	520,141	48,519,890	90.00	526,475	45,327	40,794	Subsidiary
President Chain Store Corp.	Uni-President Cold-Chain Corp.	Taiwan	Low-temperature logistics and warehousing	237,437	237,437	42,934,976	60.00	910,506	389,793	233,876	Subsidiary
President Chain Store Corp.	President Information Corp.	Taiwan	Enterprise information management and consultancy	320,741	320,741	25,714,475	86.00	499,116	86,576	74,456	Subsidiary
President Chain Store Corp.	Q-ware Systems & Services Corp.	Taiwan	Information software services	332,482	332,482	24,382,921	86.76	392,745	85,373	73,862	Subsidiary
President Chain Store Corp.	Wisdom Distribution Service Corp.	Taiwan	Logistics and storage of publication and e-commerce	50,000	50,000	10,847,421	100.00	516,295	306,530	306,530	Subsidiary
President Chain Store Corp.	Books.com. Co., Ltd.	Taiwan	Retail business without shop	100,400	100,400	9,999,999	50.03	412,559	409,682	204,945	Subsidiary
President Chain Store Corp.	President Lanyang Art Corporation	Taiwan	Art and cultural exhibition	20,000	20,000	2,000,000	100.00	24,996 (	16 ) (	16 )	Subsidiary
President Chain Store Corp.	Duskin Serve Taiwan Co., Ltd.	Taiwan	Cleaning instruments leasing and selling	102,000	102,000	10,199,999	51.00	208,040	160,701	82,001	Subsidiary
President Chain Store Corp.	ICASH Corp.	Taiwan	Electronic ticketing and electronic payment	700,000	700,000	70,000,000	100.00	580,833	14,687	14,687	Subsidiary
President Chain Store Corp.	Uni-President Development Corp.	Taiwan	Construction, development and operation of an MRT	720,000	720,000	72,000,000	20.00	757,759	108,246	21,649	Note
			station
President Chain Store Corp.	Uni-Wonder Corp.	Taiwan	Coffee chain store	3,286,206	3,286,206	21,382,674	60.00	5,078,516	645,759	294,258	Subsidiary
President Chain Store Corp.	Retail Support International Corp.	Taiwan	Room-temperature logistics and warehousing	91,414	91,414	6,429,999	25.00	171,835	219,575	54,894	Subsidiary
President Chain Store Corp.	Presicarre Corp.	Taiwan	Management of retail department store	7,112,028	7,112,028	145,172,360	19.50	5,434,309	1,943,841	381,499	Note
President Chain Store Corp.	President Fair Development Corp.	Taiwan	Operation of shopping mall, department store,	3,191,700	3,191,700	190,000,000	19.00	2,084,800	238,917	45,394	Note
			international trade, etc.
President Chain Store Corp.	President International Development Corp.	Taiwan	Professional investment	500,000	500,000	44,100,000	3.33	445,096	651,363	18,992	Note
President Chain Store Corp.	Tung Ho Development Corp.	Taiwan	Management of entertainment business	861,696	861,696	19,930,000	12.46	33,133 (	582,122 ) (	73,312 )	Note
President Chain Store Corp.	Ren-Hui Investment Corp.	Taiwan	Professional investment	637,231	637,231	6,500,000	100.00	64,566 (	9,630 ) (	9,630 )	Subsidiary
President Chain Store Corp.	Capital Marketing Consultant Corp.	Taiwan	Enterprise management consultancy	9,506	9,506	2,500,000	100.00	78,709	44,478	44,478	Subsidiary
President Chain Store Corp.	PCSC (China) Drugstore Limited	British Virgin	Professional investment	277,805	277,805	8,746,008	92.20	67,038	1,587	1,463	Subsidiary
		Islands
President Chain Store Corp.	President Chain Store Corporation Insurance	Taiwan	Insurance brokers	213,000	213,000	1,500,000	100.00	33,271	15,373	15,373	Subsidiary
	Brokers Co., Ltd.
President Chain Store Corp.	Cold Stone Creamery Taiwan Ltd.	Taiwan	Sales of ice cream	170,000	170,000	12,244,390	100.00	23,180	17,591	17,591	Subsidiary
President Chain Store Corp.	President Being Corp.	Taiwan	Sports and entertainment business	170,000	170,000	1,500,000	100.00 (	30,854 )	2,085	2,085	Subsidiary
President Chain Store Corp.	21 Century Co., Ltd.	Taiwan	Operation of chain restaurants	160,680	160,680	10,000,000	100.00	131,869	43,239	43,239	Subsidiary
President Chain Store Corp.	President Chain Store Tokyo Marketing Corp.	Japan	Trade and enterprise management consultancy	35,648	35,648	9,800	100.00	90,560	8,699	8,706	Subsidiary
President Chain Store Corp.	Uni-President Oven Bakery Corp.	Taiwan	Bread and pastry retailer	391,300	391,300	6,511,963	100.00 (	91,507 ) (	49,243 ) (	49,243 )	Subsidiary
President Chain Store Corp.	President Collect Service Corp.	Taiwan	Collection agent	10,500	10,500	1,049,999	70.00	93,370	104,121	72,887	Subsidiary
President Chain Store Corp.	Mister Donut Taiwan Co., Ltd.	Taiwan	Bakery retailer	200,000	200,000	7,500,049	50.00	98,554	21,028	10,514	Note

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Initial investment amount Shares held as at December 31, 2020 Investment
Net profit income
(loss)
(loss) of the
Balance as investee recognized
Investor Investee Location Main business activities at December Balance as 31, 2020 December 31, at Number of shares Ownership (%) Book value year ended December for the Company for the by the Footnote
2019 31, 2020 year ended
December
31, 2020
----- End of picture text -----

President Chain Store Corp.	Uni-President Organics Corp.	Taiwan	Health care products and organic food	47,190$	47,190	1,833,333	36.67$	42,447$	26,295$	9,643	Note
President Chain Store Corp.	President Technology Corp.	Taiwan	Software development and call center service	7,500	7,500	750,000	15.00	25,543	59,960	9,028	Note
Books.com. Co., Ltd.	Books.com. (BVI) Ltd.	British Virgin	Professional investment	-	1,478	-	-	- (	30 ) (	30 )	Subsidiary of a subsidiary
		Islands
Mech-President Corp.	Tong Ching Corporation	Taiwan	Gas station	9,600	9,600	960,000	60.00	22,067	6,887	4,132	Subsidiary of a subsidiary
President Chain Store (Hong Kong)	PCSC (China) Drugstore Limited	British Virgin	Professional investment	21,075	21,075	740,000	7.80	5,671	1,587	124	Subsidiary of a subsidiary
Holdings Limited		Islands
President Chain Store (BVI)	President Chain Store (Labuan) Holdings Ltd.	Malaysia	Professional investment	830,572	830,572	29,163,337	100.00	2,329,244 (	133,352 ) (	133,352 )	Subsidiary of a subsidiary
Holdings Ltd.
President Chain Store (BVI)	President Chain Store (Hong Kong) Holdings	Hong Kong	Professional investment	4,435,957	4,435,957	134,603,354	100.00	3,808,139 (	247,729 ) (	244,378 )	Subsidiary of a subsidiary
Holdings Ltd.	Limited
President Chain Store (Labuan)	Philippine Seven Corp.	Philippines	Convenience sotre	829,774	829,774	394,970,516	52.22	2,327,307 (	248,214 ) (	122,915 )	Subsidiary of a subsidiary
Holdings Ltd.
President Logistics International	Chieh Shun Logistics International Corp.	Taiwan	Trucking	180,000	180,000	26,670,000	100.00	338,745	42,467	42,467	Subsidiary of a subsidiary
Corp.
President Pharmaceutical Corp.	President Pharmaceutical (Hong Kong)	Hong Kong	Sales of various health care products, cosmetics, and	178,024	178,024	5,935,900	100.00	38,650 (	21,300 ) (	21,300 )	Subsidiary of a subsidiary
	Holdings Limited		pharmaceuticals
Ren-Hui Investment Corp.	Books.com. Co., Ltd.	Taiwan	Retail business without shop	-	-	1	-	-	409,682	-	Subsidiary of a subsidiary
Ren-Hui Investment Corp.	Uni-President Department Store Corp.	Taiwan	Department stores	-	-	1	-	-	224,008	-	Subsidiary of a subsidiary
Ren-Hui Investment Corp.	Mech-President Corp.	Taiwan	Gas station, installment and maintenance of elevators	-	-	1	-	-	149,825	-	Subsidiary of a subsidiary
Ren-Hui Investment Corp.	President Information Corp.	Taiwan	Enterprise information management and consultancy	-	-	1	-	-	86,576	-	Subsidiary of a subsidiary
Ren-Hui Investment Corp.	President Transnet Corp.	Taiwan	Delivery service	-	-	1	-	-	904,170	-	Subsidiary of a subsidiary
Ren-Hui Investment Corp.	Q-ware Systems & Services Corp.	Taiwan	Information software services	-	-	1	-	-	85,373	-	Subsidiary of a subsidiary
Ren-Hui Investment Corp.	Duskin Serve Taiwan Co., Ltd.	Taiwan	Cleaning instruments leasing and selling	-	-	1	-	-	160,701	-	Subsidiary of a subsidiary
Ren-Hui Investment Corp.	President Pharmaceutical Corp.	Taiwan	Sales of various health care products, cosmetics, and	-	-	1	-	-	113,382	-	Subsidiary of a subsidiary
			pharmaceuticals
Ren-Hui Investment Corp.	Mister Donut Taiwan Co., Ltd.	Taiwan	Bakery retailer	-	-	1	-	-	21,028	-	Note
Ren-Hui Investment Corp.	Uni-President Superior Commissary Corp.	Taiwan	Fresh food manufacture	-	-	1	-	-	45,327	-	Subsidiary of a subsidiary
Ren-Hui Investment Corp.	Uni-President Cold-Chain Corp.	Taiwan	Low-temperature logistics and warehousing	-	-	1	-	-	389,793	-	Subsidiary of a subsidiary
Ren-Hui Investment Corp.	Retail Support International Corp.	Taiwan	Room-temperature logistics and warehousing	-	-	1	-	-	219,575	-	Subsidiary of a subsidiary
Ren-Hui Investment Corp.	President Collect Service Corp.	Taiwan	Collection agent	-	-	1	-	-	104,121	-	Subsidiary of a subsidiary
Ren-Hui Investment Corp.	Ren Hui Holding Co., Ltd.	British Virgin	Professional investment	60,374	60,374	2,000,000	100.00	49,316 (	13,354 ) (	13,354 )	Subsidiary of a subsidiary
		Islands
Retail Support International Corp.	Retail Support Taiwan Corp.	Taiwan	Room-temperature logistics and warehousing	15,300	15,300	2,871,300	51.00	77,872	47,846	24,401	Subsidiary of a subsidiary
Retail Support International Corp.	President Logistics International Corp.	Taiwan	Trucking	44,975	44,975	9,481,500	49.00	177,853	87,088	42,673	Subsidiary of a subsidiary
Retail Support Taiwan Corp.	President Logistics International Corp.	Taiwan	Trucking	5,425	5,425	1,161,000	6.00	21,778	87,088	5,225	Subsidiary of a subsidiary
Uni-President Cold-Chain Corp.	President Logistics International Corp.	Taiwan	Trucking	23,850	23,850	4,837,500	25.00	90,741	87,088	21,772	Subsidiary of a subsidiary
Uni-President Cold-Chain Corp.	Uni-President Logistics (BVI) Holdings Limited	British Virgin	Professional investment	87,994	87,994	2,990	100.00	108,970	9,683	9,683	Subsidiary of a subsidiary
		Islands
Wisdom Distribution Service Corp.	President Logistics International Corp.	Taiwan	Trucking	18,850	18,850	3,870,000	20.00	72,593	87,088	17,418	Subsidiary of a subsidiary
Philippine Seven Corp.	Convenience Distribution Inc.	Philippines	Logistic, warehousing and retail	26,683	26,683	4,500,000	100.00	26,683 (	6,584 )	-	Subsidiary of a subsidiary
Philippine Seven Corp.	Store Sites Holding, Inc.	Philippines	Professional investment	28,902	28,902	40,000	100.00	28,902	1,110	-	Subsidiary of a subsidiary

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

154 2020 ANNUAL REPORT

Consolidated Financial Statements and Report of Independent Accountants

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

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For the year ended December 31, 2020
Table 8 Expressed in thousands of NTD
(Except as otherwise indicated)
Accumulated Amount remitted from Taiwan Accumulated Investment Accumulated
amount of to Mainland China/ Amount amount of Net profit(loss) Ownership income (loss) amount of
remittance remitted back to Taiwan for the remittance of investee for held by the recognized by Book value of investment
Investee in Mainland China Main business activities Paid-in capital Investment from Taiwan to year ended December 31, 2020 from Taiwan the Company the Company investments in income Footnote
method Mainland to Mainland year ended for the year December 31, remitted back
as of January China Remitted to Mainland Remitted back to Taiwan December 31, China as of December 31, 2020 (direct or indirect) December 31, ended 2020 to Taiwan as of December 31,
1, 2020 China 2020 2020 2020
President Cosmed Chain Store Wholesale of merchandise $ 436,328 Note 1 $ 268,204 $ - $ - $ 268,204 $ 1,749 100.00 $ 1,749 $ 72,239 $ - Note 2
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(Shen Zhen) Co., Ltd.
President Chain Store (Shanghai)	Covenience Store	2,705,234	Note 1	2,181,640	523,594	-	2,705,234	(	180,254 )	100.00	(	180,254 )	445,032	-	Note 2
Ltd.
Shanghai President Logistic Co.,	Logistics and warehousing	56,960	Note 1	56,960	-	-	56,960		37,464	100.00		37,464	522,063	-	Note 2
Ltd.
Shanghai Cold Stone Ice Cream	Sales of ice cream	-	Note 1	932,408	-	-	932,408		23,687	-		23,687	-	-	Note 3
Corporation Ltd.
Shan Dong President Yinzuo	Supermarkets	261,797	Note 1	116,152	-	-	116,152	(	87,492 )	55.00	(	48,776 )	139,417	7,405	Note 2
Commercial Limited
President (Shanghai) Health	Sales of various health	170,854	Note 1	170,854	-	-	170,854	(	18,127 )	73.74	(	12,986 )	8,938	53,264	Note 2
Product Trading Company Ltd.	care products, cosmetics,
	and pharmaceuticals
Zhejiang Uni-Champion Logistics	Logistics and warehousing	174,531	Note 1	166,113	-	-	166,113		19,608	80.00		15,735	174,358	24,275	Note 2
Development Co., Ltd.
Bejing Bokelai Customer Co.	Enterprise information	-	Note 1	-	-	-	-	(	25 )	-	(	13 )	-	-	Note 4
	consulting, network
	technology development
	and services
President Chain Store (Taizhou)	Logistics and warehousing	261,797	Note 1	261,797	-	-	261,797		26,613	100.00		26,613	382,820	-	Note 2
Ltd.
President Logistic ShanDong	Logistics and warehousing	218,164	Note 1	218,164	-	-	218,164		8,942	100.00		7,327	205,600	-	Note 2
Co., Ltd.
President Chain Store (Zhejiang)	Covenience Store	610,859	Note 1	610,859	-	-	610,859	(	118,971 )	100.00	(	118,971 )	173,272	-	Note 2
Ltd.
Beauty Wonder (Zhejiang)	Sales of cosmetics and	130,898	Note 1	130,898	-	-	130,898	(	41,326 )	100.00	(	41,326 )	34,898	-	Note 2
TradingCo.,Ltd.	dailyitems

Note 1: Indirect investment in PRC through the existing company located in the third area. Note 2: The financial statements were reviewed by the CPA of parent company in Taiwan.

Note 3: The procedures for liquidation and cancellation of registration of Shanghai Cold Stone Ice Cream Corporation Ltd. has been completed in November 2020. Note 4: The procedures for liquidation and cancellation of registration of Bejing Bokelai Customer Co. has been completed in July 2020.

Company name	Accumulated amount of remittance from Taiwan to Mainland China as of December 31, 2020	Investment amount approved by the Investment Commission of the Ministry of Economic Affairs(MOEA)	Ceiling on investments in Mainland China imposed by the Investment Commission of MOEA
President Chain Store Corp. $ 4,389,851 $ 8,682,809 $ 26,986,619 President Pharmaceutical Corp. 170,854 170,854 439,547 Uni-President Cold-Chain Corp. 84,512 84,512 898,181 Ren-Hui Investment Corp. 49,079 49,079 80,000

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PRESIDENT CHAIN STORE CORP. AND SUBSIDIARIES List of shareholders holding more than 5% (inclusive) of shares

Table 9	December 31, 2020	December 31, 2020
Shareholder name	Shares held as at Decmeber 31, 2020
	Number of shares	Ownership (%)
Uni-President Enterprises Corp.	471,996,430 45.40%

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

156 2020 ANNUAL REPORT

Appendix Parent Company Only Financial Statements and Report of Independent Accountants

REPORT OF INDEPENDENT AUDITORS REPORT TRANSLATED FROM CHINESE To the Board of Directors and Stockholders of President Chain Store Corp.

Opinion

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

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

Basis for opinion

We conducted our audits in accordance with the Regulations Governing Auditing and Attestation of Financial Statements by Certified Public Accountants and generally accepted auditing standards in the Republic of China. Our responsibilities under those standards are further described in the Auditors’ responsibilities for the audit of the parent company only financial statements section of our report. We are independent of the Company in accordance with the Norm of Professional Ethics for Certified Public Accountants of the Republic of China, and we have fulfilled our other ethical responsibilities in accordance with these requirements. Based on our audits and the reports of other auditors, we believe the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Key audit matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the parent company only financial statements for the year ended December 31, 2020. These matters were addressed in the context of our audit of the parent company only financial statements as a whole, and in forming our opinion thereon, we do not provide a separate opinion on these matters.

Key audit matters for the Company’s parent company only financial statements for the year ended

Key audit matters for the Company’s parent company only financial statements for the year ended December 31, 2020 are stated as follows:

Completeness and accuracy of retail sales revenue

Description

Please refer to Notes 4(23) and 6(22) to the parent company only financial statements for the accounting policy and the details of accounts relating to this key audit matter.

Retail sales revenue is generated by point-of-sale (POS) terminals, which record the merchandise name, quantity, sales price and total sales amount of each transaction using pre-established merchandise master file data (including merchandise name, cost of inventory, retail price, sales promotions, etc.). After the daily closing process, each store manager uploads the sales information to the ERP (enterprise resource planning) system, which summarizes all sales and automatically generates sales revenue journal entries. Each store manager also prepares a daily cash report to record the sales information and payment methods (including cash, gift certificates, credit cards and electronic payment devices, etc.) and the cash deposited to the bank.

How our audit addressed the matter

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

Inspected whether additions and changes to the merchandise master file data had been properly approved and supported by relevant documents;
Inspected whether approved additions and changes to the merchandise master file data had been correctly entered in the merchandise master file;
Inspected whether merchandise master file data had been periodically transferred to POS terminals in stores;
Inspected whether sales information in POS terminals was periodically and completely transferred to the ERP system and automatically generated sales revenue journal entries;

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Parent Company Only Financial Statements and Report of Independent Accountants

Inspected manual sales revenue journal entries and relevant documents;
Inspected daily cash reports and relevant documents; and
Inspected whether cash deposit amounts recorded in daily cash reports were in agreement with bank remittance amounts.

Cost-to-retail ratio of retail inventory method

Description

Please refer to Notes 4(11) and 6(3) to the parent company only financial statements for the accounting policy and the details of accounts relating to this key audit matter.

As there are various kinds of merchandise, the retail inventory method is used to estimate the cost of inventory and the cost of goods sold. The retail inventory method uses the ratio of the cost of goods purchased to their retail value (known as cost-to-retail ratio) to calculate the cost of inventory and the cost of goods sold. The calculation of the cost-to-retail ratio highly relies on the goods purchased both at cost and retail price, and thus has been identified as a key audit matter.

How our audit addressed the matter

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

Interviewed management to understand the calculation of the cost-to-retail ratio under the retail inventory method, and inspected whether it had been consistently applied in the comparative periods of the financial statements;
Inspected whether additions and changes to the merchandise master file data (including merchandise name, cost of inventory, retail price, sales promotions, etc.) had been properly approved and the data correctly entered in the merchandise master file;
Inspected whether the cost and retail price of inventory purchased as per delivery receipts were in agreement with POS purchase records after acceptance of the inventory;
Inspected whether the POS records for the cost and retail price of inventory purchased were periodically and completely transferred to the ERP system and ascertain whether the records could not be changed manually; and
Calculated the cost-to-retail ratio to verify its accuracy.

Other matter –Reference to the audits of other auditors

We did not audit the financial statements of certain investments accounted for using equity method which were audited by other auditors. Therefore, our opinion expressed herein, insofar as it relates to the amounts included in respect of these subsidiaries, associates and joint ventures, and the information on investees disclosed in Note 13, is based solely on the reported of the other auditors. The balance of these investments accounted for using equity method amounted to NT$2,327,307 thousand and NT$2,528,945 thousand, constituting 1.6% and 1.9% of parent company only total assets as at December 31, 2020 and 2019, respectively, and the related total comprehensive net income (including share of profit of subsidiaries, associates and joint ventures accounted for using equity method and share of other comprehensive income of subsidiaries, associates and joint ventures accounted for using equity method) amounted to (NT$134,437) thousand and NT$412,872 thousand, constituting (1.5%) and 4.1% of parent company only total comprehensive net income for the years then ended, respectively.

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

financial statements

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

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

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

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

Our objectives are to obtain reasonable assurance about whether the parent company only financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinion. Reasonable assurance is a high level of assurance, but it is not a guarantee that an audit conducted in accordance with the generally accepted auditing standards in the

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Republic of China will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these parent company only financial statements.

As part of an audit in accordance with the generally accepted auditing standards in the Republic of China, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

Identify and assess the risks of material misstatement in the parent company only financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls.
Obtain an understanding of internal controls relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal controls of the Company.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the parent company only financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Company to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the parent company only financial statements, including the disclosures, and whether the parent company only financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Company to express an opinion on the parent company only financial statements. We are responsible for the direction, supervision and performance of the audit. We remain solely responsible for our audit opinion.

We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards. From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the parent company only financial statements for the current period and are therefore the key audit matters. We describe these matters in our auditor’s report unless the law or regulations preclude public disclosure about the matter, or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

Yi-Chang,Liang

Chien-Hung, Chou

For and on behalf of PricewaterhouseCoopers, Taiwan 26 February, 2021

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

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

2020 ANNUAL REPORT 159

PRESIDENT CHAIN STORE CORP. PARENT COMPANY ONLY BALANCE SHEETS

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(Expressed in thousands of New Taiwan dollars)
December 31, 2020 December 31, 2019
Assets Notes
AMOUNT % AMOUNT %
----- End of picture text -----

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

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

2020 ANNUAL REPORT 161

PRESIDENT CHAIN STORE CORP.

PARENT COMPANY ONLY STATEMENTS OF COMPREHENSIVE INCOME

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(Expressed in thousands of New Taiwan dollars)
For the years ended December 31
Items Notes 2020 2019
AMOUNT % AMOUNT %
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4000	Operating revenue	6(22) and 7(3)	$	168,147,856		100	$	158,031,567		100
5000	Operating costs	6(3)(27) and 7(3)	(	111,590,813)	(	67)	(	103,854,132)	(	66)
5900	Gross proft			56,557,043		33		54,177,435		34
	Operating expenses	6(27)(28)
6100	Selling expenses		(	44,926,938 )	(	27 )	(	42,662,266 )	(	27 )
6200	General and administrative expenses		(	4,111,400 )	(	2 )	(	4,469,102 )	(	3 )
6450	Expected credit losses	12(2)	(	28)		-		-		-
6000	Total operating expenses		(	49,038,366)	(	29)	(	47,131,368)	(	30)
6900	Operating proft			7,518,677		4		7,046,067		4
	Non-operating income and expenses	7(3)
7100	Interest income	6(23)		32,588		-		38,037		-
7010	Other income	6(24)		1,421,455		1		1,287,857		1
7020	Other gains and losses	6(25)		43,872		-		22,788		-
7050	Finance costs	6(26)	(	394,400 )		-	(	359,593 )		-
7070	Share of proft of subsidiaries, associates and joint ventures accounted for	6(6)		3,092,323		2		4,185,310		2
	using equity method
7000	Total non-operating income and expenses			4,195,838		3		5,174,399		3
7900	Proft before income tax			11,714,515		7		12,220,466		7
7950	Income tax expense	6(29)	(	1,476,353)	(	1)	(	1,677,606)	(	1)
8200	Proft for the year		$	10,238,162		6		10,542,860		6
	Other comprehensive income (loss)
8311	(Loss) gain on remeasurement of defned beneft plan	6(17)	($	116,127 )		-		71,511		-
8316	Unrealized gain on valuation of equity instruments at fair value through other	6(5)(21)		152,712		-		162,501		-
	comprehensive income
8330	Share of other comprehensive loss of subsidiaries, associates and joint		(	43,489)		-	(	46,547 )		-
	ventures accounted for using equity method, components of other comprehensive income that will not be reclassifed to proft or loss
8349	Income tax related to components of other comprehensive income that will not be reclassifed to proft or loss	6(29)		25,690		-	(	24,252 )		-
8310	Components of other comprehensive income that will not be reclassifed to proft or loss			18,786		-		163,213		-
8361	Financial statements translation differences of foreign operations	6(21)	(	1,093,603 )	(	1 )	(	578,743 )		-
8380	Share of other comprehensive loss of subsidiaries, associates and joint		(	11,382 )		-	(	10,566 )		-
	ventures accounted for using equity method, components of other comprehensive income that will be reclassifed to proft or loss
8360	Components of other comprehensive loss that will be reclassifed to proft or		(	1,104,985 )	(	1 )	(	589,309 )		-
	loss
8300	Total other comprehensive loss for the year		($	1,086,199)	(	1)	($	426,096)		-
8500	Total comprehensive income for the year		$	9,151,963		5	$	10,116,764		6
9750	Basic earnings per share (in dollars)	6(30)	$			9.85	$		10.14
9850	Diluted earnings per share (in dollars)	6(30)	$			9.83	$		10.12

162 2020 ANNUAL REPORT

PRESIDENT CHAIN STORE CORP. PARENT COMPANY ONLY STATEMENTS OF CHANGES IN EQUITY

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(Expressed in thousands of New Taiwan dollars)
Retained Earnings Other Equity Interest
Unrealized
Financial
gain or loss on
Notes Share capital – common stock Capital surplus Legal reserve Special reserve Unappropriated retained statementstranslation financial assetsat fair value Total equity
differences of
earnings through other
foreign
comprehensive
operations
income
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For theyear ended December 31,2019 Balance at January 1, 2019 Proft for the year Other comprehensive income (loss) for the year 6(21) Total comprehensive income (loss) for the year Distribution of 2018 earnings 6(20) Legal reserve Special reserve Cash dividends Overdue unclaimed cash dividend transferred to capital surplus Adjustment of capital surplus due to associates’ adjustment of capital surplus Disposal of equity instruments designated at fair value through other comprehensive income of associates Balance at December 31, 2019 For theyear ended December 31,2020 Balance at January 1, 2020 Proft for the year Other comprehensive income (loss) for the year 6(21) Total comprehensive income (loss) for the year Distribution of 2019 earnings 6(20) Legal reserve Special reserve Cash dividends Overdue unclaimed cash dividend transferred to capital surplus Disposal of equity instruments designated at fair value through other comprehensive income of associates Balance at December 31, 2020	$ 10,396,223 - - - - - - - - - $ 10,396,223 $ 10,396,223 - - - - - - - - $ 10,396,223	$ 45,059 - - - - - - 1,235 590 - $ 46,884 $ 46,884 - - - - - - 744 - $ 47,628	$ 12,293,442 - - - 1,020,639 - - - - - $ 13,314,081 $ 13,314,081 - - - 1,055,147 - - - - $ 14,369,228	$ 398,859 - - - - ( 398,859 ) - - - - $ - $ - - - - - 380,187 - - - $ 380,187	$ 12,064,862 10,542,860 7,696 10,550,556 ( 1,020,639 ) 398,859 ( 9,148,676 ) - - 918 $ 12,845,880 $ 12,845,880 10,238,162 ( 133,765) 10,104,397 ( 1,055,147 ) ( 380,187 ) ( 9,356,600 ) - 1,203 $ 12,159,546	($ 279,829) - ( 590,079) ( 590,079) - - - - - - ($ 869,908) ($ 869,908 ) - ( 1,103,360) ( 1,103,360) - - - - - ($ 1,973,268)	$ 333,434 - 156,287 156,287 - - - - - - $ 489,721 $ 489,721 - 150,926 150,926 - - - - - $ 640,647	$ 35,252,050 10,542,860 ( 426,096) 10,116,764 - - ( 9,148,676 ) 1,235 590 918 $ 36,222,881 $ 36,222,881 10,238,162 ( 1,086,199) 9,151,963 - - ( 9,356,600 ) 744 1,203 $ 36,020,191

2020 ANNUAL REPORT 163

PRESIDENT CHAIN STORE CORP.

PARENT COMPANY ONLY STATEMENTS OF CASH FLOWS

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(Expressed in thousands of New Taiwan dollars)
For the years ended
Notes December 31
2020 2019
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CASH FLOWS FROM OPERATING ACTIVITIES Proft before income tax for the year Adjustments to reconcile proft before income tax to net cash provided by operating activities Income and expenses having no effect on cash fows Expected credit losses 12(2) Depreciation expense 6(7)(8)(27) Amortization expense 6(11)(27) Finance costs 6(26) Share of proft of subsidiaries, associates and joint ventures accounted for using equity method 6(6) Depreciation on investment property 6(10) Interest income 6(23) Dividend income 6(24) Gain on disposal of property, plant and equipment, net 6(25) Gain on disposal of investment property, net 6(25) Gain from lease modifcation 6(8)(25) Other income recognized from rent concessions 6(8) Changes in assets/liabilities relating to operating activities Net changes in assets relating to operating activities Accounts receivable Other receivables Inventories Prepayments Other current assets Other non-current assets Net changes in liabilities relating to operating activities Contract liabilities – current Notes payable Accounts payable Other payables Other current liabilities Contract liabilities – non-current Net defned beneft liability Other non-current liabilities Cash generated from operations Interest received Income tax paid 6(29) Interest paid Dividends received Net cash provided by operating activities	$ 11,714,515 28 9,972,207 25,898 394,400 ( 3,092,323 ) 7,068 ( 32,588 ) ( 61,961 ) ( 37,206 ) ( 2,682 ) ( 56,083 ) ( 25,700 ) ( 1,119 ) ( 777,941 ) ( 855,567 ) ( 4,084 ) ( 214,380 ) ( 108,343 ) 1,591,098 6,376 864,067 ( 1,421,431 ) 187,986 118,161 ( 17,209 ) ( 4,898 ) 18,168,289 31,994 ( 1,357,688 ) ( 383,229 ) 3,013,689 19,473,055	$ 12,220,466 - 8,986,348 55,700 359,593 ( 4,185,310 ) 7,440 ( 38,037 ) ( 49,542 ) ( 11,253 ) - ( 33,255 ) - 12,235 239,949 ( 15,998 ) ( 36,821 ) 166,559 ( 161,916 ) 314,821 ( 587,638 ) 286,828 ( 1,714,521 ) 29,475 64,734 ( 19,420 ) ( 4,657 ) 15,885,780 39,052 ( 1,737,867 ) ( 348,890 ) 2,735,708 16,573,783

164 2020 ANNUAL REPORT

PRESIDENT CHAIN STORE CORP. PARENT COMPANY ONLY STATEMENTS OF CASH FLOWS

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(Expressed in thousands of New Taiwan dollars)
For the years ended
Notes December 31
2020 2019
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CASH FLOWS FROM INVESTING ACTIVITIES Return of capital from fnancial assets at fair value through proft or loss Acquisition of investments accounted for using equity method 6(6) and 7(3) Proceeds from disposal of investments accounted for using equity method 6(6) and 7(3) Acquisition of property, plant and equipment 6(31) Proceeds from disposal of property, plant and equipment Proceeds from disposal of investment property Acquisition of intangible assets 6(11) Net cash used in investing activities CASH FLOWS FROM FINANCING ACTIVITIES Decrease in short-term borrowings 6(32) Increase in short-term notes and bills payable 6(32) Payments of lease liabilities 6(32) Payment of cash dividends 6(20)(32) Guarantee deposit received 6(32) Net cash used in fnancing activities Increase (decrease) in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year	$ 42 - - ( 4,470,949 ) 104,835 15,423 ( 103,435 ) ( 4,454,084 ) ( 1,900,000 ) 3,399,147 ( 7,096,154 ) ( 9,356,600 ) 234,035 ( 14,719,572 ) 299,399 10,697,878 $ 10,997,277	$ 118 ( 200,000 ) 41,657 ( 3,359,789 ) 149,016 - ( 21,409 ) ( 3,390,407 ) ( 1,000,000 ) - ( 6,603,705 ) ( 9,148,676 ) 196,168 ( 16,556,213 ) ( 3,372,837 ) 14,070,715 $ 10,697,878

2020 ANNUAL REPORT 165

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

DECEMBER 31, 2020 AND 2019 (Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

1. HISTORY AND ORGANISATION

(1) President Chain Store Corporation (the “Company”) was established on June 10, 1987. The Company is primarily engaged in the investment and operation of convenience store chains. Business items included sales of food, beverages, coffee, daily commodities, cosmetics and health care products. The common shares of the Company have been listed on the Taiwan Stock Exchange since August 22, 1997.
(2) The Company’s ultimate parent company is Uni-President Enterprises Corp., which holds 45.4% equity interest in the Company.

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

These parent company only financial statements were authorized for issuance by the Board of Directors on February 26, 2021.

3. APPLICATION OF NEW STANDARDS, AMENDMENTS AND INTERPRETATIONS

(1) Effect of the adoption of new issuances of or amendments to International Financial Reporting Standards (“IFRS”) as endorsed by the Financial Supervisory Commission (“FSC”). New standards, interpretations and amendments endorsed by FSC effective from 2020 are as follows:

New Standards, Interpretations and Amendments	Effective date by International Accounting Standards Board
Amendments to IAS 1 and IAS 8, ‘Disclosure initiative-defnition of material’ January 1, 2020 Amendments to IFRS 3, ‘Defnition of a business’ January 1, 2020 Amendments to IFRS 9, IAS 39 and IFRS7 ,‘Interest rate benchmark reform’ January 1, 2020 Amendment to IFRS 16, ‘Covid-19-related rent concessions’ June 1, 2020 (Note)

Note ： Earlier application from January 1, 2020 is allowed by FSC.

Except for the following, the above standards and interpretations have no significant impact to the Company’s financial condition and financial performance based on the Company’s assessment. Amendment to IFRS 16, ‘Covid-19-related rent concessions’

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

A. Changes in lease payments result in the revised consideration for the lease that is substantially the same as, or less than, the consideration for the lease immediately preceding the change;
B. Any reduction in lease payments affects only payments originally due on or before June 30, 2021; and
C. There is no substantive change to other terms and conditions of the lease.
(2) Effect of new issuances of or amendments to IFRSs as endorsed by the FSC but not yet adopted by the Company

New standards, interpretations and amendments endorsed by the FSC effective from 2021 are as follows:

New Standards, Interpretations and Amendments	Effective date by International Accounting Standards Board
Amendments to IFRS 4, ‘Extension of the temporary exemption from applying IFRS 9’ January 1, 2021 Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16, ‘Interest Rate Benchmark Reform— Phase 2’ January 1, 2021

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

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

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

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Effective date by International
New Standards, Interpretations and Amendments
Accounting Standards Board
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Amendments to IFRS 3, ‘Reference to the conceptual framework’	January 1, 2022
Amendments to IFRS 10 and IAS 28, ‘Sale or contribution of assets between an investor and its associate or joint venture’	To be determined by International
	Accounting Standards Board
IFRS 17, ‘Insurance contracts’	January 1, 2023
Amendments to IFRS 17, ‘Insurance contracts’	January 1, 2023
Amendments to IAS 1, ‘Classifcation of liabilities as current or non-current’	January 1, 2023
Amendments to IAS 1, ‘Disclosure of accounting policies’	January 1, 2023
Amendments to IAS 8, ‘Defnition of accounting estimates’	January 1, 2023
Amendments to IAS 16, ‘Property, plant and equipment:proceeds before intended use’	January 1, 2022
Amendments to IAS 37, ‘Onerous contracts—cost of fulflling a contract’	January 1, 2022
Annual improvements to IFRS Standards 2018–2020	January 1, 2022

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

4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

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

(1) Compliance statement

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

(2) Basis of preparation

A. Except for the following items, the parent company only financial statements have been prepared under the historical cost convention:
(a) Financial assets at fair value through profit or loss.
(b) Financial assets at fair value through other comprehensive income.
(c) Defined benefit liabilities recognized based on the net amount of pension fund assets less the present value of defined benefit obligations.
B. The preparation of financial statements, in conformity with IFRSs, requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the Company’s accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the parent company only financial statements are disclosed in Note 5.

(3) Foreign currency translation

Items included in the financial statements of the Company are measured using the currency of the primary economic environment in which the Company operates (the “functional currency”). The parent company only financial statements are presented in New Taiwan Dollars, which is the Company’s functional currency.
A. Foreign currency transactions and balances
(a) Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions or valuation where items are remeasured. Foreign exchange gains and losses resulting from the settlement of such transactions are recognized in profit or loss in the period in which they arise.
(b) Monetary assets and liabilities denominated in foreign currencies at the period end are retranslated at the exchange rates prevailing at the balance sheet date. Exchange differences arising upon re-translation at the balance sheet date are recognized in profit or loss.
(c) Non-monetary assets and liabilities denominated in foreign currencies held at fair value through profit or loss are re-translated at the exchange rates prevailing at the balance sheet date; their translation differences are recognized in profit or loss. Non-monetary assets and liabilities denominated in foreign currencies held at fair value through other comprehensive income are retranslated at the exchange rates prevailing at the balance sheet date; their translation differences are recognized in other comprehensive income. However, non-monetary assets and liabilities denominated in foreign currencies that are not measured at fair value are translated using the historical exchange rates at the dates of the initial transactions.

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(d) All foreign exchange gains and losses are presented in parent company only the statement of comprehensive income within ‘other gains and losses’.
B. Translation of foreign operations
(a) The operating results and financial position of all the group entities, associates and jointly arrangements that have a functional currency different from the presentation currency are translated into the presentation currency as follows:
- i. Assets and liabilities for each balance sheet presented are translated at the closing exchange rate at the date of that balance sheet;
- ii. Income and expenses for each statement of comprehensive income are translated at average exchange rates of that period; and
- iii. All resulting exchange differences are recognized in other comprehensive income.
(b) When the foreign operation partially disposed of or sold is an associate or jointly arrangements, exchange differences that were recorded in other comprehensive income are proportionately reclassified to profit or loss as part of the gain or loss on sale. In addition, if the Company retains partial interest in the former foreign associate or jointly arrangements after losing significant influence over the former foreign associate, or losing joint control of the former jointly arrangements, such transactions should be accounted for as disposal of all interest in these foreign operations.
(c) When the foreign operation partially disposed of or sold is a subsidiary, cumulative exchange differences that were recorded in other comprehensive income are proportionately transferred to the non-controlling interest in this foreign operation. In addition, even when the Company retains partial interest in the former foreign subsidiary after losing control of the former foreign subsidiary, such transactions should be accounted for as disposal of all interest in the foreign operation.
(4) Classification of current and non-current items
A. Assets that meet one of the following criteria are classified as current assets; otherwise they are classified as non-current assets:
(a) Assets arising from operating activities that are expected to be realized, or are intended to be sold or consumed within the normal operating cycle;
(b) Assets held mainly for trading purposes;
(c) Assets that are expected to be realized within 12 months from the balance sheet date;
(d) Cash and cash equivalents, excluding restricted cash and cash equivalents and those that are to be exchanged or used to settle liabilities more than 12 months after the balance sheet date.
B. Liabilities that meet one of the following criteria are classified as current liabilities; otherwise they are classified as non-current liabilities:
(a) Liabilities that are expected to be settled within the normal operating cycle;
(b) Liabilities arising mainly from trading activities;
(c) Liabilities that are to be settled within 12 months from the balance sheet date;
(d) Liabilities for which the repayment date cannot be extended unconditionally to more than 12 months after the balance sheet date. Terms of a liability that could, at the option of the counterparty, result in its settlement by the issue of equity instruments do not affect its classification.
(5) Cash equivalents

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

(6) Financial assets at fair value through profit or loss
A. Financial assets at fair value through profit or loss are financial assets that are not measured at amortized cost or fair value through other comprehensive income.
B. On a regular way purchase or sale basis, financial assets at fair value through profit or loss are recognized and derecognized using settlement date accounting.
C. At initial recognition, the Company measures the financial assets at fair value and recognizes the transaction costs in profit or loss. The Company subsequently measures the financial assets at fair value, and recognizes the gain or loss in profit or loss.
D. The Company recognizes the dividend income when the right to receive payment is established, future economic benefits associated with the dividend will flow to the Company and the amount of the dividend can be measured reliably.

168 2020 ANNUAL REPORT

Parent Company Only Financial Statements and Report of Independent Accountants

(7) Financial assets at fair value through other comprehensive income
A. Financial assets at fair value through other comprehensive income comprise equity securities which are not held for trading, and for which the Company has made an irrevocable election at initial recognition to recognize changes in fair value in other comprehensive income and debt instruments which meet all of the following criteria:
(a) The objective of the Company’s business model is achieved both by collecting contractual cash flows and selling financial assets; and
(b) The assets’ contractual cash flows represent solely payments of principal and interest.
B. On a regular way purchase or sale basis, financial assets at fair value through other comprehensive income are recognized and derecognized using settlement date accounting.
C. At initial recognition, the Company measures the financial assets at fair value plus transaction costs. The Company subsequently measures the financial assets at fair value:
The changes in fair value of equity investments that were recognized in other comprehensive income are reclassified to retained earnings and are not reclassified to profit or loss following the derecognition of the investment. Dividends are recognized as revenue when the right to receive payment is established, future economic benefits associated with the dividend will flow to the Company and the amount of the dividend can be measured reliably.
(8) Accounts and notes receivable
A. Accounts and notes receivable entitle the Company a legal right to receive consideration in exchange for transferred goods or rendered services.
B. The short-term accounts and notes receivable without bearing interest are subsequently measured at initial invoice amount as the effect of discounting is immaterial.
(9) Impairment of financial assets
For financial assets measured at amortized cost, at each reporting date, the Company recognizes the impairment provision for 12 months expected credit losses if there has not been a significant increase in credit risk since initial recognition or recognizes the impairment provision for the lifetime expected credit losses (ECLs) if such credit risk has increased since initial recognition after taking into consideration all reasonable and verifiable information that includes forecasts. On the other hand, for accounts receivable that do not contain a significant financing component, the Company recognizes the impairment provision for lifetime ECLs.
(10) Leasing arrangement (lessor) – operating leases
Lease income from an operating lease (net of any incentives given to the lessee) is recognized in profit or loss on a straight-line basis over the lease term.
(11) Inventories
A. Purchases are initially recorded at cost. Cost is determined using the retail inventory method.
B. Ending inventories are stated at the lower of cost and net realizable value, and the item by item approach is used in applying the lower of cost and net realizable value. Net realizable value is the estimated selling price in the ordinary course of business, less the estimated cost of completion and applicable variable selling expenses.
(12) Investments accounted for using equity method - subsidiaries, associates and joint ventures
A. Subsidiaries are all entities controlled by the Company. The Company controls an entity when the Company is exposed, or has rights, to variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity.
B. Unrealized gains or losses resulting from inter-company transactions with subsidiaries are eliminated. Necessary adjustments are made to the accounting policies of subsidiaries, to be consistent with the accounting policies of the Company.
C. The Company’s share of its subsidiaries’ post-acquisition profits or losses is recognized in profit or loss, and its share of post-acquisition movements in other comprehensive income is recognized in other comprehensive income. When the Company’s share of losses in a subsidiary equals or exceeds its interest in the subsidiary, the Company continues to recognize its share in the subsidiary’s loss proportionately.
D. Changes in a parent’s ownership interest in a subsidiary that do not result in the parent losing control of the subsidiary (transactions with non-controlling interests) are accounted for as equity transactions, i.e. transactions with owners in their capacity as owner. Any difference between the amount by which the non-controlling interests are adjusted and the fair value of the consideration paid or received is recognized directly in equity.

2020 ANNUAL REPORT 169

Parent Company Only Financial Statements and Report of Independent Accountants

E. When the Company loses control of a subsidiary, the Company remeasures any investment retained in the former subsidiary at its fair value. That fair value is regarded as the fair value on initial recognition of a financial asset or the cost on initial recognition of the associate or joint venture. Any difference between fair value and carrying amount is recognized in profit or loss. All amounts previously recognized in other comprehensive income in relation to the subsidiary are reclassified to profit or loss on the same basis as would be required if the related assets or liabilities were disposed of. That is, when the Company loses control of a subsidiary, all gains or losses previously recognized in other comprehensive income in relation to the subsidiary should be reclassified from equity to profit or loss, if such gains or losses would be reclassified to profit or loss when the related assets or liabilities are disposed of.
F. Associates are all entities over which the Company has significant influence but not control. In general, it is presumed that the investor has significant influence, if an investor holds, directly or indirectly 20 percent or more of the voting power of the investee. Investments in associates are accounted for using the equity method and are initially recognized at cost.
G. The Company’s share of its associates’ post-acquisition profits or losses is recognized in profit or loss, and its share of post-acquisition movements in other comprehensive income is recognized in other comprehensive income. When the Company’s share of losses in an associate equals or exceeds its interest in the associate, including any other unsecured receivables, the Company does not recognize further losses, unless it has incurred legal or constructive obligations or made payments on behalf of the associate.
H. When changes in an associate’s equity do not arise from profit or loss or other comprehensive income of the associate and such changes do not affect the Company’s ownership percentage of the associate, the Company recognizes the Company’s share of change in equity of the associate in ‘capital surplus’ in proportion to its ownership.
I. Unrealized gains on transactions between the Company and its associates are eliminated to the extent of the Company’s interest in the associates. Unrealized losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred. Accounting policies of associates have been adjusted where necessary to ensure consistency with the policies adopted by the Company.
J. In the case that an associate issues new shares and the Company does not subscribe or acquire new shares proportionately, which results in a change in the Company’s ownership percentage of the associate but maintains significant influence on the associate, then ‘capital surplus’ and ‘investments accounted for using equity method’ shall be adjusted for the increase or decrease of equity interest. If the above condition causes a decrease in the Company’s ownership percentage of the associate, in addition to the above adjustment, the amounts previously recognized in other comprehensive income in relation to the associate are reclassified to profit or loss proportionately on the same basis as would be required if the relevant assets or liabilities were disposed of.
K. Upon loss of significant influence over an associate, the Company remeasures any investment retained in the former associate at its fair value. Any difference between fair value and carrying amount is recognized in profit or loss.
L. When the Company disposes its investment in an associate and loses significant influence over this associate, the amounts previously recognized in other comprehensive income in relation to the associate, are reclassified to profit or loss, on the same basis as would be required if the relevant assets or liabilities were disposed of. If it retains significant influence over this associate, the amounts previously recognized in other comprehensive income in relation to the associate are reclassified to profit or loss proportionately in accordance with the aforementioned approach.
M. When the Company disposes its investment in an associate and loses significant influence over this associate, the amounts previously recognized as capital surplus in relation to the associate are transferred to profit or loss. If it retains significant influence over this associate, the amounts previously recognized as capital surplus in relation to the associate are transferred to profit or loss proportionately.
N. The Company accounts for its interest in a joint venture using equity method. Unrealized profits and losses arising from the transactions between the Company and its joint venture are eliminated to the extent of the Company’s interest in the joint venture. The Company’s share of its associates’ post-acquisition profits or losses is recognized in profit or loss, and its share of post-acquisition movements in other comprehensive income is recognized in other comprehensive income. However, when the transaction provides evidence of a reduction in the net realizable value of current assets or an impairment loss, all such losses shall be recognized immediately. When the Company’s share of losses in a joint venture equals or exceeds its interest in the joint venture together with any other unsecured receivables, the Company does not recognize further losses, unless it has incurred legal or constructive obligations or made payments on behalf of the joint venture.

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O. According to Rules Governing the Preparation of Financial Statements by Securities Issuers, profit for the year and other comprehensive income for the year reported in the parent company only financial statements, shall be equal to profit for the year and other comprehensive income attributable to owners of the parent reported in the consolidated financial statements, equity reported in the parent company only financial statements shall be equal to equity attributable to owners of parent reported in the consolidated financial statements.
(13) Property, plant and equipment
A. Property, plant and equipment are initially recorded at cost.
B. Subsequent costs are included in the asset’s carrying amount or recognized as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Company and the cost of the item can be measured reliably. The carrying amount of the replaced part is derecognized. All other repairs and maintenance are charged to profit or loss during the financial period in which they are incurred.
C. Property, plant and equipment are measured subsequently using the cost model. Land is not depreciated. Other property, plant and equipment apply cost model and are depreciated using the straight-line method to allocate their cost over their estimated useful lives. Each part of an item of property, plant, and equipment with a cost that is significant in relation to the total cost of the item must be depreciated separately.
D. The assets’ residual values, useful lives and depreciation methods are reviewed, and adjusted if appropriate, at each financial year-end. If expectations for the assets’ residual values and useful lives differ from previous estimates or the patterns of consumption of the assets’ future economic benefits embodied in the assets have changed significantly, any change is accounted for as a change in estimate under IAS 8, ‘Accounting Policies, Changes in Accounting Estimates and Errors’, from the date of the change. The estimated useful lives of property, plant and equipment are as follows: Buildings 50 years Operating equipment 4~7 years Leasehold improvements 7 years
－
(14) Leasing arrangements (lessee) right-of-use assets/ lease liabilities
A. Leases are recognized as a right-of-use asset and a corresponding lease liability at the date at which the leased asset is available for use by the Company. For short-term leases or leases of lowvalue assets, lease payments are recognized as an expense on a straight-line basis over the lease term.
B. Lease liabilities include the net present value of the remaining lease payments at the commencement date, discounted using the incremental borrowing interest rate. Lease payments are comprised of the following:
(a) Fixed payments, less any lease incentives receivable;
(b) Variable lease payments that depend on an index or a rate; and
(c) Amounts expected to be payable by the lessee under residual value guarantees.

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

C. At the commencement date, the right-of-use asset is stated at cost comprising the following: (a) The amount of the initial measurement of lease liability;
(b) Any lease payments made at or before the commencement date;
(c) Any initial direct costs incurred by the lessee; and
(d) An estimate of costs to be incurred by the lessee in dismantling and removing the underlying asset, restoring the site on which it is located or restoring the underlying asset to the condition required by the terms and conditions of the lease.

(15) Investment property

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(16) Intangible assets

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

(17) Impairment of non-financial assets

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

(18) Borrowings

(19) Notes and accounts payable
A. Accounts payable are liabilities for purchases of raw materials, goods or services and notes payable are those resulting from operating and non-operating activities.
B. The short-term notes and accounts payable without bearing interest are subsequently measured at initial invoice amount as the effect of discounting is immaterial.
(20) Provisions

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

(21) Employee benefits
A. Short-term employee benefits

B. Pensions
(a) Defined contribution plan

(b) Defined benefit plan
i. Net obligation under a defined benefit plan is defined as the present value of an amount of pension benefits that employees will receive on retirement for their services with the Company in current period or prior periods. The liability recognized in the balance sheet in respect of defined benefit pension plans is the present value of the defined benefit obligation at the balance sheet date less the fair value of plan assets. The defined benefit net obligation is calculated annually by independent actuaries using the projected unit credit method. The rate used to discount is determined by using interest rates of government bonds (at the balance sheet date) of a currency and term consistent with the currency and term of the employment benefit obligations.
ii. Remeasurements arising on defined benefit plans are recognized in other comprehensive income in the period in which they arise and are recorded as retained earnings.
iii. Past service costs are recognized immediately in profit or loss.
C. Termination benefits
Termination benefits are employee benefits provided in exchange for the termination of employment as a result from either the Company’s decision to terminate an employee’s employment before the normal retirement date, or an employee’s decision to accept an offer of redundancy benefits in exchange for the termination of employment. The Company recognizes expense when it can no longer withdraw an offer of termination benefits or it recognizes related restructuring costs, whichever is earlier. Benefits that are expected to be due more than 12 months after balance sheet date shall be discounted to their present value.

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D. Employees’ and directors’ remuneration
Employees’ remuneration and directors’ remuneration are recognized as expense and liability, provided that such recognition is required under legal or constructive obligation and those amounts can be reliably estimated. Any difference between the resolved amounts and the subsequently actual distributed amounts is accounted for as changes in estimates. If employee compensation is distributed by shares, the Company calculates the number of shares based on the closing price at the previous day of the board meeting resolution.
(22) Income tax
A. The tax expense for the year comprises current and deferred tax. Tax is recognized in profit or loss, except to the extent that it relates to items recognized in other comprehensive income or items recognized directly in equity, in which cases the tax is recognized in other comprehensive income or equity.
B. The current income tax expense is calculated on the basis of the tax laws enacted or substantively enacted at the balance sheet date in the countries where the Company operates and generates taxable income. Management periodically evaluates positions taken in tax returns with respect to situations in accordance with applicable tax regulations. It establishes provisions where appropriate based on the amounts expected to be paid to the tax authorities. An additional tax is levied on the unappropriated retained earnings and is recorded as income tax expense in the year the stockholders resolve to retain the earnings.
C. Deferred tax is recognized, using the balance sheet liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the parent company only balance sheet. However, the deferred tax is not accounted for if it arises from initial recognition of an asset or liability in a transaction other than a business combination that at the time of the transaction affects neither accounting nor taxable profit or loss. Deferred tax is provided on temporary differences arising on investments in subsidiaries and associates, except where the timing of the reversal of the temporary difference is controlled by the Company and it is probable that the temporary difference will not reverse in the foreseeable future. Deferred tax is determined using tax rates (and laws) that have been enacted or substantially enacted by the balance sheet date and are expected to apply when the related deferred tax asset is realized or the deferred tax liability is settled.
D. Deferred tax assets are recognized only to the extent that it is probable that future taxable profit will be available against which the temporary differences can be utilized. At each balance sheet date, unrecognized and recognized deferred tax assets are reassessed.
E. A deferred tax asset shall be recognized for the carry forward of unused tax credits resulting from acquisitions of equipment or technology, research and development expenditures and equity investments to the extent that it is possible that future taxable profit will be available against which the unused tax credits can be utilized.
(23) Revenue recognition
A. Sale of goods
(a) The Company operates a chain of retail stores. Revenue from the sale of goods is recognized when the Company sells a product to the customer.
(b) Payment of the transaction price is due immediately when the customer purchases the product. It is the Company’s policy to sell its products to the end customer with a right of return. Therefore, a refund liability and a right to the returned goods (included in ‘other current assets’) are recognized for the products expected to be returned. Accumulated experience is used to estimate such returns using the expected value method. Because the number of products returned has been steady for years, it is highly probable that a significant reversal in the cumulative revenue recognized will not occur. The validity of this assumption and the estimated amount of returns are reassessed at each reporting date.
(c) The Company operates a loyalty program where retail customers accumulate points for purchases made which entitle them to discount on future purchases. The points provide a material right to customers that they would not receive without entering into a contract. Therefore, the promise to provide points to the customer is a separate performance obligation. The transaction price is allocated to the product and the points on a relative stand-alone selling price basis. The standalone selling price per point is estimated on the basis of the discount granted when the points are redeemed and on the basis of the likelihood of redemption, based on past experience. The standalone selling price of the product sold is estimated on the basis of the retail price. A contract liability is recognized for the transaction price which is allocated to the points and revenue is recognized when the points are redeemed or expire.

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B. Sales of services

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

C. Financing components

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

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

UNCERTAINTY

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

6. DETAILS OF SIGNIFICANT ACCOUNTS

(1) Cash and cash equivalents

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December 31, 2020 December 31, 2019
Petty cash in store $ 1,081,157 $ 898,234
Checking accounts and demand deposits 6,216,162 4,601,172
Cash equivalents
Time deposits 500,000 500,000
Short-term financial instruments 3,199,958 4,698,472
$ 10,997,277 $ 10,697,878
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A. The Company transacts with a variety of financial institutions, all with high credit quality, to disperse credit risk, so it considers the probability of counterparty default as remote.
B. The Company has no cash and cash equivalents pledged to others.

(2) Accounts receivable

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

B. As at December 31, 2020 and 2019, accounts receivable was all from contracts with customers. And as January 1, 2019, the balance of receivables from contracts with customers amounted to $603,890.
C. No accounts receivable of the Company was pledged to others.

D. As at December 31, 2020 and 2019, without taking into account any collateral held or other credit enhancements, the maximum exposure to credit risk in respect of the amount that best represents the Company’s accounts receivable were $592,746 and $591,655, respectively.

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

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(3) Inventories

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December 31, 2020
Allowance for
Cost Book value
valuation loss
Merchandise $ 8,907,312 ($ 15,379 ) $ 8,891,933
December 31, 2019
Allowance for
Cost Book value
valuation loss
Merchandise $ 8,079,200 ($ 42,834 ) $ 8,036,366
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The cost of inventories recognized as expense:

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For the year ended For the year ended
December 31, 2020 December 31, 2019
Cost of goods sold $ 109,250,147 $ 101,836,268
(Gain on reversal) loss on valuation of inventories ( 27,455 ) 27,520
Spoilage 2,088,237 1,746,665
Others 279,884 243,679
$ 111,590,813 $ 103,854,132
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The Company reversed a previous inventory write-down because the Company sold and scrapped certain inventories which were previously provided with allowance during the year ended December 31, 2020.

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

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December 31, 2020 December 31, 2019
Financial assets mandatorily measured at fair value through profit or loss
Non-current items:
Unlisted stocks $ 274,703 $ 274,745
Valuation adjustment ( 189,180 ) ( 189,180 )
$ 85,523 $ 85,565
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A. The Company recognized net gains of financial assets at fair value through profit or loss was $18,128 and $17,819 for the years ended December 31, 2020 and 2019, respectively.
B. No financial assets at fair value through profit or loss of the Company were pledged to others.
C. Information relating to credit risk is provided in Note 12(2).
(5) Financial assets at fair value through other comprehensive income - non-current

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

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

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For the year ended For the year ended
December 31, 2020 December 31, 2019
Equity instruments at fair value through other comprehensive income
Fair value change recognized in other comprehensive income $ 152,712 $ 162,501
Dividend income recognized in profit or loss $ 43,833 $ 31,723
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C. As at December 31, 2020 and 2019, without taking into account any collateral held or other credit enhancements, the maximum exposure to credit risk in respect of the amount that best represents the financial assets at fair value through other comprehensive income held by the Company was $959,827 and $807,115, respectively.
D. No financial assets at fair value through other comprehensive income of the Company were pledged to others.
E. Information relating to credit risk is provided in Note 12(2).
(6) Investments accounted for using the equity method

	2020	2019
At January 1	$ 50,117,541	$ 49,094,402
Addition of investments accounted for using equity method	-	200,000
Disposal of investments accounted for using equity method	-	( 41,657 )
Share of proft or loss of investments accounted for using equity method	3,092,323	4,185,310
Earnings distribution of investments accounted for using equity method	( 2,951,728 )	( 2,686,166 )
Changes in other equity items	( 1,147,271 )	( 634,938 )
Changes in other items	-	590
At December 31	$ 49,110,865	$ 50,117,541

	December 31, 2020	December 31, 2019
Subsidiaries President Chain Store (BVI) Holdings Ltd. Uni-Wonder Corp. President Transnet Corp. President Drugstore Business Corp. Uni-President Cold-Chain Corp. Mech-President Corp. President Pharmaceutical Corp. ICASH Corp. Uni-President Department Store Corp. Uni-President Superior Commissary Corp. Wisdom Distribution Service Corp. President Information Corp. Books.com. Co., Ltd. Q-ware Systems & Services Corp. Duskin Serve Taiwan Co., Ltd. Retail Support International Corp. 21 Century Co., Ltd. President Collect Service Corp., etc.	$ 25,102,119 5,078,516 1,882,686 1,445,303 910,506 747,097 699,003 580,833 530,898 526,475 516,295 499,116 412,559 392,745 208,040 171,835 131,869 353,329	$ 26,348,522 5,164,559 1,634,536 1,432,449 679,859 702,347 743,725 567,243 543,179 484,058 454,125 493,788 398,293 390,054 201,317 178,147 86,391 359,010
	40,189,224	40,861,602

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December 31, 2020 December 31, 2019
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Associates
PresiCarre Corp.	$	5,434,309	$	5,723,198
President Fair Development Corp.		2,084,800		2,039,406
Uni-President Development Corp.		757,759		764,191
President International Development Corp.		445,096		459,696
Uni-President Organics Corp.		42,447		41,430
Tung Ho Development Corp.		33,133		106,384
President Technology Corp.		25,543		20,866
		8,823,087		9,155,171
Joint ventures
Mister Donut Taiwan Co., Ltd.	$	98,554	$	100,768
	$	49,110,865	$	50,117,541

A. Information about the subsidiaries of the Company is provided in Note 4(3), “Basis of preparation” of the consolidated financial statements as of and for the year ended December 31, 2020.
B. The acquisition of additional shares in certain investments in associates or joint ventures are not significant to the Company. The details of the Company’s share of the operating results in the aforementioned investments are as follows:
(a) The Company’s share of the operating results in all individually immaterial associates is summarized below:

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

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For the year ended For the year ended
December 31, 2020 December 31, 2019
Total comprehensive income $ 11,256 $ 13,844
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C. No impairment loss was recognized on investments accounted for using equity method for the years ended December 31, 2020 and 2019, respectively.

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(7) Property, plant and equipment

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

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2020
Operating Leasehold
Land Buildings Others Total
equipment improvements
At January 1
Cost $ 1,545,466 $ 968,199 $ 14,367,788 $ 8,649,472 $ 26,594 $ 25,557,519
Accumulated depreciation and impairment ( 16,367 ) ( 362,929 ) ( 9,222,896 ) ( 5,468,173 ) ( 9,451 ) ( 15,079,816 )
$ 1,529,099 $ 605,270 $ 5,144,892 $ 3,181,299 $ 17,143 $ 10,477,703
Opening net book amount as at January 1 $ 1,529,099 $ 605,270 $ 5,144,892 $ 3,181,299 $ 17,143 $ 10,477,703
Additions - - 2,811,974 1,538,959 2,613 4,353,546
Disposals - - ( 12,630 ) ( 54,999 ) - ( 67,629 )
Transfer - - - 13,806 ( 13,806 ) -
Depreciation charge - ( 19,153 ) ( 1,536,123 ) ( 973,955 ) ( 657 ) ( 2,529,888 )
Closing net book amount as at December 31 $ 1,529,099 $ 586,117 $ 6,408,113 $ 3,705,110 $ 5,293 $ 12,233,732
At December 31
Cost $ 1,545,466 $ 968,199 $ 15,991,485 $ 9,652,347 $ 14,808 $ 28,172,305
Accumulated depreciation and impairment ( 16,367 ) ( 382,082 ) ( 9,583,372 ) ( 5,947,237 ) ( 9,515 ) ( 15,938,573 )
$ 1,529,099 $ 586,117 $ 6,408,113 $ 3,705,110 $ 5,293 $ 12,233,732
2019
Operating Leasehold
Land Buildings Others Total
equipment improvements
At January 1
Cost $ 1,564,223 $ 973,001 $ 13,563,007 $ 8,250,964 $ 12,121 $ 24,363,316
Accumulated depreciation and impairment ( 16,367 ) ( 345,665 ) ( 9,550,524 ) ( 5,327,966 ) ( 8,575 ) ( 15,249,097 )
$ 1,547,856 $ 627,336 $ 4,012,483 $ 2,922,998 $ 3,546 $ 9,114,219
Opening net book amount as at January 1 $ 1,547,856 $ 627,336 $ 4,012,483 $ 2,922,998 $ 3,546 $ 9,114,219
Effect of adoption of IFRS 16 - - - ( 167,270 ) - ( 167,270 )
Adjusted beginning balance $ 1,547,856 $ 627,336 $ 4,012,483 $ 2,755,728 $ 3,546 $ 8,946,949
Additions - - 2,530,739 1,305,220 14,473 3,850,432
Disposals - - ( 75,584 ) ( 62,179 ) - ( 137,763 )
Transfer ( 18,757 ) ( 2,913 ) - - - ( 21,670 )
Depreciation charge - ( 19,153 ) ( 1,322,746 ) ( 817,470 ) ( 876 ) ( 2,160,245 )
Closing net book amount as at December 31 $ 1,529,099 $ 605,270 $ 5,144,892 $ 3,181,299 $ 17,143 $ 10,477,703
At December 31
Cost $ 1,545,466 $ 968,199 $ 14,367,788 $ 8,649,472 $ 26,594 $ 25,557,519
Accumulated depreciation and impairment ( 16,367 ) ( 362,929 ) ( 9,222,896 ) ( 5,468,173 ) ( 9,451 ) ( 15,079,816 )
$ 1,529,099 $ 605,270 $ 5,144,892 $ 3,181,299 $ 17,143 $ 10,477,703
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B. No property, plant and equipment of the Company was pledged to others.

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(8) Leasing arrangements – lessee

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

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December 31, 2020 December 31, 2019
Carrying amount Carrying amount
Buildings $ 50,276,653 $ 44,373,492
For the year ended For the year ended
December 31, 2020 December 31, 2019
Depreciation charge Depreciation charge
Buildings $ 7,442,319 $ 6,826,103
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C. For the years ended December 31, 2020 and 2019, the additions to right-of-use assets were $14,667,833 and $24,947,745, respectively.
D. The information on income and expense accounts relating to lease contracts is as follows:

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For the year ended For the year ended
December 31, 2020 December 31, 2019
Items affecting profit or loss
Interest expense on lease liabilities $ 338,828 $ 305,342
Expense on variable lease payments 123,675 153,467
Gain on sublease of right-of-use assets 569,892 557,649
Gain from lease modification 56,083 33,255
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E. For the years ended December 31, 2020 and 2019, the Company’s total cash outflow for leases were $7,558,657 and $7,062,514, respectively.
F. Variable lease payments
(a) Some of the Company’s lease contracts contain variable lease payment terms that are linked to sales generated from a store. For the above-mentioned stores, approximately 1.56% and 2.11% of lease payments as for the year ended December 31, 2020 and 2019, respectively, are on the basis of variable payment terms and are accrued based on the sales amount. Variable payment terms are used for a variety of reasons. Various lease payments that depend on sales are recognized in profit or loss in the period in which the event or condition that triggers those payments occurs.
(b) A 1% increase in the aggregate sales amount of all stores with such variable lease contracts would increase total lease payments by approximately $1,237 and $1,535 for the years ended December 31, 2020 and 2019, respectively.
G. The Company’s leases not yet commenced to which the leases are committed are business premises for the lessees, and the lease liabilities undiscounted amount at December 31, 2020 and 2019 are $2,436,677 and $1,751,094, respectively.
H. The Company has applied the practical expedient to“Covid-19-related rent concessions”and recognized the gain from changes in lease payments arising from the rent concessions amounting to $25,700, as other income for the year ended December 31, 2020.

(9) Leasing arrangements – lessor

A. The Company leases various assets including land and buildings. Rental contracts are typically made for periods of 2 and 12 years. Lease terms are negotiated on an individual basis and contain a wide range of different terms and conditions.
B. Information on profit or loss in relation to lease contracts is as follows:

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For the year ended For the year ended
December 31, 2020 December 31, 2019
Rental revenue $ 648,020 $ 632,894
Rental revenue from variable lease payments $ 376,161 $ 387,859
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C. The maturity analysis of the undiscounted lease payments in the finance lease is as follows:

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December 31, 2020 December 31, 2019
Within 1 year $ 232,912 $ 206,435
1~2 years 202,933 180,221
2~3 years 151,128 157,115
3~4 years 91,365 113,729
4~5 years 73,053 58,143
Over 5 years 189,870 158,578
$ 941,261 $ 874,221
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(10) Investment property

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2020
Land Buildings Total
At January 1 $ 981,540 $ 222,144 $ 1,203,684
Disposals ( 3,988 ) ( 8,753 ) ( 12,741 )
Depreciation charge - ( 7,068 ) ( 7,068 )
At December 31 $ 977,552 $ 206,323 $ 1,183,875
2019
Land Buildings Total
At January 1 $ 962,783 $ 226,671 $ 1,189,454
Transfer 18,757 2,913 21,670
Depreciation charge - ( 7,440 ) ( 7,440 )
At December 31 $ 981,540 $ 222,144 $ 1,203,684
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A. Rental income from investment property and direct operating expenses arising from investment property are shown below:

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For the year For the year
endedDecember 31, 2020 endedDecember 31, 2019
Rental income from investment property $ 59,188 $ 59,882
Direct operating expenses arising from the investment property that generated rental income during the year $ 20,210 $ 23,065
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B. The fair value of the investment property held by the Company as at December 31, 2020 and 2019 ranged from $2,874,270 to $3,042,152, respectively, which was assessed based on recent settlement prices of similar and comparable properties, as well as the reports of independent appraisers. Valuations were made using the comparative approach and income approach which is categorized within Level 3 in fair value hierarchy. Key assumptions are the discount rate of 2.39% and the growth rate of 3%.
C. No investment property of the Company was pledged to others.

(11) Intangible assets

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Software and copyright 2020 2019
At January 1 $ 84,728 $ 119,019
Additions 103,435 21,409
Amortization charge ( 25,898 ) ( 55,700 )
At December 31 $ 162,265 $ 84,728
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A. Amortization charge on intangible assets are recognized as operating expenses.
B. No intangible assets of the Company were pledged to others.

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(12) Other non-current assets

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December 31, 2020 December 31, 2019
Guarantee deposits paid $ 1,491,661 $ 1,372,992
Others 9,909 20,235
$ 1,501,570 $ 1,393,227
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(13) Short-term borrowings

Type of borrowings	December 31, 2020	Interest rate range	Collateral
Bank borrowings Credit loan	$ 3,100,000 0.49% None

Type of borrowings	December 31, 2019	Interest rate range	Collateral

There was no capitalization of borrowing costs for the years ended December 31, 2020 and 2019, respectively. Relevant interest expenses on borrowings is recognized as “finance costs”. (14) Short-term notes and bills payable

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December 31, 2020 Pledged or secured
Commercial paper payable $ 3,400,000 Please refer to the below for details.
Less: Unamortized discount ( 853 )
$ 3,399,147
Interest rate range 0.408%
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A. There was no commercial paper payable transaction at December 31, 2019.

B. The above commercial papers were issued and secured by Sumitomo Mitsui Banking Corporation and International Bills Finance Corporation for short-term financing. (15) Other payables

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December 31, 2020 December 31, 2019
Store collections $ 10,519,829 $ 11,453,224
Wages, salaries and bonus payable 1,415,217 1,608,497
Incentive bonus payable to franchisees 934,922 1,158,473
Payables for acquisition of property, plant and equipment 772,571 889,974
Employees’ compensation and remuneration for directors 725,237 756,561
Payables for system development and maintenance expenses 116,246 95,753
Payables for labor and health insurance 75,593 74,919
Rent payable 39,357 27,931
Others 995,730 1,068,947
$ 15,594,702 $ 17,134,279
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(16) Other current liabilities

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December 31, 2020 December 31, 2019
Advance receipts for gift certificates $ 1,525,934 $ 1,381,360
Others 154,619 111,207
$ 1,680,553 $ 1,492,567
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(17) Pensions

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

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December 31, 2020 December 31, 2019
Present value of defined benefit obligation ($ 4,200,437 ) ($ 4,193,734 )
Fair value of plan assets 1,331,845 1,424,060
Net defined benefit liability ($ 2,868,592 ) ($ 2,769,674 )
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(b) Movements in net defined benefit liability are as follows:
2020
Present value of defined Fair value of Net defined
benefit obligation plan assets benefit liability
At January 1 ($ 4,193,734 ) $ 1,424,060 ($ 2,769,674 )
Current service cost ( 26,417 ) - ( 26,417 )
Interest (expense) income ( 31,051 ) 10,455 ( 20,596 )
Past service cost ( 160 ) - ( 160)
( 4,251,362 ) 1,434,515 ( 2,816,847 )
Remeasurements:
Return on plan assets (excluding amounts attributable to interest income or
expense) - 49,031 49,031
Change in demographic assumptions ( 1,199 ) - ( 1,199 )
Change in financial assumptions ( 213,584 ) - ( 213,584 )
Experience adjustments 49,625 - 49,625
( 165,158 ) 49,031 ( 116,127 )
Pension fund contribution - 48,291 48,291
Paid pension 216,083 ( 199,992 ) 16,091
At December 31 ($ 4,200,437 ) $ 1,331,845 ($ 2,868,592 )
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2019
Present value of defined Fair value Net defined
benefitobligation of plan assets benefit liability
At January 1 ($ 4,337,814 ) $ 1,477,209 ($ 2,860,605 )
Current service cost ( 34,169 ) - ( 34,169 )
Interest (expense) income ( 42,928 ) 14,761 ( 28,167 )
Past service cost 1,003 - 1,003
( 4,413,908 ) 1,491,970 ( 2,921,938 )
Remeasurements:
Return on plan assets
(excluding amounts attributable to interest income or expense) - 51,649 51,649
Change in demographic assumptions ( 1,509 ) - ( 1,509 )
Change in financial assumptions ( 123,767 ) - ( 123,767 )
Experience adjustments 145,138 - 145,138
19,862 51,649 71,511
Pension fund contribution - 64,826 64,826
Paid pension 200,312 ( 184,385 ) 15,927
At December 31 ($ 4,193,734 ) $ 1,424,060 ($ 2,769,674 )
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(c) The Bank of Taiwan was commissioned to manage the Fund of the Company’s defined benefit pension plan in accordance with the Fund’s annual investment and utilization plan and the “Regulations for Revenues, Expenditures, Safeguard and Utilization of the Labor Retirement Fund” (Article 6: The scope of utilization for the Fund includes deposit in domestic or foreign financial institutions, investment in domestic or foreign listed, over-the-counter, or private placement equity securities, investment in domestic or foreign real estate securitization products, etc.). Relating condition of execution is supervised by Labor Funds Supervisory Committee. With regard to the utilization of the Fund, its minimum earnings in the annual distributions on the final financial statements shall be no less than the earnings attainable from the amounts accrued from two-year time deposits with the interest rates offered by local banks. If the earnings is less than aforementioned rates, government shall make payment for the deficit after being authorized by the Regulator. The Company has no right to participate in managing and operating that fund and hence the Company is unable to disclose the classification of plan asset fair value in accordance with IAS 19 paragraph 142. The composition of fair value of plan assets as of December 31, 2020 and 2019 is given in the Annual Labor Retirement Fund Utilization Report announced by the government.
(d) The principal actuarial assumptions used were as follows:

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

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

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Discount rate Future salary increases
Increase 0.25% Decrease 0.25% Increase 0.25% Decrease 0.25%
December 31, 2020
Effect on present value of defined benefit obligation ($ 120,403 ) $ 125,341 $ 121,375 ($ 117,277 )
Discount rate Future salary increases
Increase 0.25% Decrease 0.25% Increase 0.25% Decrease 0.25%
December 31, 2019
Effect on present value of defined benefit obligation ($ 123,724 ) $ 128,937 $ 125,512 ($ 121,123 )
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2020 ANNUAL REPORT 183

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

(e) Expected contributions to the defined benefit pension plan of the Company for the year ending December 31, 2021 amounts to $36,925.
(f) As of December 31, 2020, the weighted average duration of the retirement plan is 11 years. The analysis of timing of the future pension payment is as follows:

analysis of timing of the future pension payment is as follows:
Within 1 year 1-2 year(s) 2-5 years Over 5 years	$ 87,841 140,683 473,865 3,626,155
	$ 4,328,544

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

(19) Capital surplus

(20) Retained earnings
A. Under the Company's Articles of Incorporation, the current year’s earnings, if any, must first be used to pay all taxes and offset prior years' operating losses, then 10% of the remaining amount is to be set aside as legal reserve. After setting aside or reversing a special reserve, in accordance with related laws, the remaining amount is distributable for the given period. The appropriation of the total distributable amount (that is, the distributable amount for the year along with accumulated unappropriated earnings from prior years) should be proposed by the Board of Directors and voted on by the shareholders at the shareholders’ meeting. The dividends and bonus to be distributed to shareholders may be 50%-100% of the total distributable amount, and 50%-100% of dividends are to be distributed as cash dividends, and the remaining undistributed amount to be set aside as unappropriated retained earnings.
B. Except for covering accumulated deficit or issuing new stocks or cash to shareholders in proportion to their share ownership, the legal reserve is not be used for any other purpose. The use of the legal reserve for the issuance of stocks or cash to shareholders in proportion to their share ownership is permitted, provided that the distribution of the reserve is limited to the portion in excess of 25% of the Company’s paid-in capital.
C. In accordance with the regulations, the Company shall set aside a special reserve for the debit balance on other equity items at the balance sheet date before distributing earnings. When the debit balance on other equity items is reversed subsequently, the reversed amount should be included in the distributable earnings.

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

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

E. The appropriations for 2020 as resolved by the Board of Directors on February 26, 2021 is as follows:

		2020	2020
		Amount	Dividends per share (in dollars)
Legal reserve Special reserve appropriated Cash dividends		$ 1,010,560 952,434 9,356,600	$ 9.00
(21) Other equity items
		2020
	Financial statements translation differences of foreign operations	Unrealized gains/(losses) on Financial assets at fair value through other comprehensive income	Total
At January 1 Revaluation and trasfer: –The Company –Subsidiaries –Associates Revaluation - tax Currency translation differences: –The Company –Subsidiaries –Associates At December 31	($ 869,908 ) - - - - ( 1,093,603 ) ( 340 ) ( 9,417)	$ 489,721 152,712 - ( 4,251 ) 2,465 - - -	($ 380,187 ) 152,712 - ( 4,251 ) 2,465 ( 1,093,603 ) ( 340 ) ( 9,417)
	($ 1,973,268)	$ 640,647	($ 1,332,621)

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2019
Unrealized gains/(losses)
Financial statements
on Financial assets at
translation differences of Total
fair value through other
foreign operations
comprehensive income
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At January 1 Revaluation and transfer: –The Company –Subsidiaries –Associates Revaluation - tax Currency translation differences: –The Company –Subsidiaries –Associates At December 31	($ 279,829 ) - - - - ( 578,743 ) ( 5,347 ) ( 5,989)	$ 333,434 162,501 ( 783 ) 4,518 ( 9,949 ) - - -	$ 53,605 162,501 ( 783 ) 4,518 ( 9,949 ) ( 578,743 ) ( 5,347 ) ( 5,989)
	($ 869,908)	$ 489,721	($ 380,187)

(22) Operating revenue

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For the year ended For the year ended
December 31, 2020 December 31, 2019
Revenue from contracts with customers $ 168,147,856 $ 158,031,567
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A. Disaggregation of revenue from contracts with customers

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

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For the year ended For the year ended
December 31, 2020 December 31, 2019
Timing of revenue recognition
–At a point in time $ 167,324,002 $ 157,508,868
–Over time 823,854 522,699
$ 168,147,856 $ 158,031,567
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B. Contract liabilities

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

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December 31, 2020 December 31, 2019
Contract liabilities – advance receipts of gift payments $ 2,855,217 $ 1,291,060
Contract liabilities – franchise fee 252,918 240,077
Contract liabilities – customer loyalty programs 334,445 216,284
Contract liabilities – others 90,933 76,833
$ 3,533,513 $ 1,824,254
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(b) Revenues recognized that were included in the contract liabilities balance at the beginning were $817,955 and $1,101,204 for the years ended December 31, 2020 and 2019, respectively. (23) Interest income

	For the year ended December 31, 2020	For the year ended December 31, 2019

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(24) Other income

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

(25) Other gains and losses

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

(26) Financial costs

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

(27) Expenses by nature

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

(28) Employee benefit expense

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For the year ended For the year ended
December 31, 2020 December 31, 2019
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Wages and salaries	$	5,949,019	$	5,870,712
Labor and health insurance fees		484,022		477,863
Pension costs		262,184		268,017
Directors’ remuneration		191,433		199,553
Other personnel expenses		316,415		346,301
	$	7,203,073	$	7,162,446

A. According to the Articles of Incorporation of the Company, a ratio of distributable profit of the current year, after covering accumulated losses, shall be distributed as employees’ compensation and directors’ remuneration. The ratio shall not be lower than 2% for employees’ compensation and shall not be higher than 2% for directors’ remuneration.
B. For the years ended December 31, 2020 and 2019, employees’ compensation was accrued at $543,617 and $567,096, respectively; while directors’ remuneration was accrued at $181,620 and $189,465, respectively.

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The employees’ compensation and directors’ remuneration were estimated and accrued based on 4.37% and 1.46% of distributable profit of the current year for the year ended December 31, 2020. The employees’ compensation and directors’ remuneration as resolved by the Board of Directors were $543,617 and $181,620, respectively, and the employees’ compensation will be distributed in the form of cash.

Employees’ compensation and directors’ remuneration for 2019 as resolved at the meeting of Board of Directors were in agreement with those amounts recognized in the 2019 financial statements. Information about employees’ compensation and directors’ remuneration of the Company as resolved by the Board of Directors will be posted in the “Market Observation Post System” at the website of the Taiwan Stock Exchange.

(29) Income tax

A. Income tax expense

(a) Components of income tax expense:

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For the year ended For the year ended
December 31, 2020 December 31, 2019
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Current tax: Current tax on profts for the year 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	$ 1,738,626 - ( 149,412)	$ 1,611,778 20,212 ( 162,718)
	1,589,214 ( 112,861)	1,469,272 208,334
	$ 1,476,353	$ 1,677,606

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

	For the year ended December 31, 2020	For the year ended December 31, 2019
Changes in fair value of fnancial assets at fair value through other comprehensive income Remeasurement of defned beneft obligations	($ 2,465 ) ( 23,225)	$ 9,949 14,303
	($ 25,690)	$ 24,252
B. Reconciliation between income tax expense and accounting profit
	For the year ended December 31, 2020	For the year ended December 31, 2019
Tax calculated based on proft before tax and statutory tax rate Expenses disallowed by tax regulation Tax on proft for using equity method by domestic subsidiaries Tax on undistributed surplus earnings Over provision of prior year’s income tax Tax exempt on gain from domestic securities transitions Income tax expense	$ 2,342,903 ( 61,047 ) ( 656,029 ) - ( 149,412 ) ( 62)	$ 2,444,093 ( 9,536 ) ( 614,211 ) 20,212 ( 162,718 ) ( 234)
	$ 1,476,353	$ 1,677,606

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

		2020	2020
	January 1	Recognized in proft or loss	Recognized in other comprehensive income	December 31
Deferred tax assets Allowance for doubtful accounts Unrealized expenses Contract liabilities – non-current Remeasurements of defned beneft obligation Others Deferred tax liabilities Unrealized gain Foreign investment income	$ 199 221,464 43,446 507,605 27,536	($ 92 ) ( 125,493 ) 23,632 - ( 5,681)	$ - - - 23,225 -	$ 107 95,971 67,078 530,830 21,855
	800,250	( 107,634)	23,225	715,841
	( 36,154 ) ( 4,113,203)	- 220,495	2,465 -	( 33,689 ) ( 3,892,708)
	( 4,149,357)	220,495	2,465	( 3,926,397)
	($ 3,349,107)	$ 112,861	$ 25,690	($ 3,210,556)

		2019
	January 1	Recognized in proft or loss	Recognized in other comprehensive income	December 31
Deferred tax assets Allowance for doubtful accounts Unrealized expenses Contract liabilities – non-current Remeasurements of defned beneft obligation Others Deferred tax liabilities Unrealized gain Foreign investment income	$ 199 173,233 30,499 521,908 74,619	$ - 48,231 12,947 - ( 47,083)	$ - - - ( 14,303 ) -	$ 199 221,464 43,446 507,605 27,536
	800,458	14,095	( 14,303)	800,250
	( 26,205 ) ( 3,890,774)	- ( 222,429)	( 9,949 ) -	( 36,154 ) ( 4,113,203)
	( 3,916,979)	( 222,429)	( 9,949)	( 4,149,357)
	($ 3,116,521)	($ 208,334)	($ 24,252)	($ 3,349,107)

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

(30) Earnings per share

For the year ended December 31, 2020	For the year ended December 31, 2020	For the year ended December 31, 2020
Amount after tax	Weighted average number of ordinary shares outstanding(shares in thousands)	Earnings per share (in dollars)
$ 10,238,162	1,039,622	$ 9.85
$ 10,238,162 -	1,039,622 2,358

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For the year ended December 31, 2019	For the year ended December 31, 2019	For the year ended December 31, 2019
Amount after tax	Weighted average number of ordinary shares outstanding(shares in thousands)	Earnings per share (in dollars)
$ 10,542,860	1,039,622	$ 10.14
$ 10,542,860 -	1,039,622 2,169

(31) Supplemental cash flow information

Investing activities with partial cash payments

	For the year ended December 31, 2020	For the year ended December 31, 2019
Purchase of property, plant and equipment Add: Opening balance of payable on equipment Less: Ending balance of payable on equipment Cash paid during the year	$ 4,353,546 889,974 ( 772,571)	$ 3,850,432 399,331 ( 889,974)
	$ 4,470,949	$ 3,359,789

(32) Changes in liabilities from financing activities

			2020	2020
	Short-term borrowings	Short-term notes and bills payable	Dividend payable	Guarantee deposits received	Lease liabilities	Liabilities from fnancing Activities –gross
At January 1 Changes in cash fow from fnancing activities Interest paid (Note) Changes in other non-cash items At December 31	$ 5,000,000 ( 1,900,000 ) - -	$ - 3,399,147 - -	$ - ( 9,356,600 ) - 9,356,600	$ 2,730,126 234,035 - -	$ 44,730,617 ( 7,096,154 ) ( 338,828 ) 13,553,682	$ 52,460,743 ( 14,719,572 ) ( 38,828 ) 22,910,282
	$ 3,100,000	$ 3,399,147	$ -	$ 2,964,161	$ 50,849,317	$ 60,312,625
Note: Presented in cash fows from operating activities.
				2019
		Short-term borrowings	Dividend payable	Guarantee deposits received	Lease liabilities	Liabilities from fnancing Activities –gross
		$ 6,000,000 ( 1,000,000 ) - -	$ - ( 9,148,676 ) - 9,148,676	$ 2,533,958 196,168 - -	$ 27,486,853 ( 6,603,705 ) ( 305,342 ) 24,152,811	$ 36,020,811 ( 16,556,213 ) ( 305,342 ) 33,301,487

Note: Presented in cash flows from operating activities.

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7. RELATED PARTY TRANSACTIONS

(1) Parent and ultimate controlling party

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

(2) Names of related parties and relationship

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

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(3) Significant related party transactions and balances

A. Operating revenue

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For the year ended For the year ended
December 31, 2020 December 31, 2019
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Commission revenue from collection services Subsidiaries $ 502,161 $ 329,669 Sister companies 4,471,967 3,649,408 Associates 9 - $ 4,974,137 $ 3,979,077	$ 502,161 4,471,967 9	$ 329,669 3,649,408 -

B. Purchases (net of purchase rebate)

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For the year ended For the year ended
December 31, 2020 December 31, 2019
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Ultimate parent company	$	16,248,126	$	15,787,494
Subsidiaries		5,448,084		4,833,834
Sister companies		4,406,082		3,778,725
Associates		163,984		199,924
Other related parties		862,931		911,260
	$	27,129,207	$	25,511,237

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

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

C. Non-operating income

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For the year ended For the year ended
December 31, 2020 December 31, 2019
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Ultimate parent company	$	39,005	$	36,890
Subsidiaries		947,365		920,099
Sister companies		6,121		6,822
Associates		20,046		15,721
Other related parties		39,696		28,052
	$	1,052,233	$	1,007,584

D. Receivables (payables) from related parties

Other receivables	December 31, 2020	December 31, 2019
Ultimate parent company Subsidiaries Sister companies Associates Other related parties	$ 204,204 1,701,554 198,598 4,235 119	$ 67,315 1,281,796 103,664 3,951 766
	$ 2,108,710	$ 1,457,492

Notes payable and accounts payable	December 31, 2020	December 31, 2019
Ultimate parent company Subsidiaries Sister companies Associates Other related parties	$ 425,203 13,216,850 38,247 24,196 903	$ 417,554 12,316,674 43,846 26,488 1,293
	$ 13,705,399	$ 12,805,855

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

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E. Leasing arrangements － lessee

(a) The Company holds various lease agreements with related parties based on the market price. The leases were paid on a monthly basis.
(b) Acquisition of right-of-use assets

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

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

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December 31, 2020 December 31, 2019
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	December 31, 2020	December 31, 2019
Ultimate parent company Subsidiaries Associates Sister companies Other related parties Total	$ 1,607 63,709 55,055 49,505 462,544	$ 2,798 71,257 17,667 44,681 511,921
	$ 632,420	$ 648,324

F. Property transaction

Acquisition of financial assets

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

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

(4) Key management compensation

	For the year ended December 31, 2020	For the year ended December 31, 2019
Other short-term employee benefts	$ 296,923	$ 288,543

8. PLEDGED ASSETS

None.

9. S I G N I F I C A N T C O N T I N G E N T L I A B I L I T I E S A N D U N R E C O G N I Z E D C O N T R A C T COMMITMENTS

None.

10. SIGNIFICANT DISASTER LOSS

None.

11. SIGNIFICANT EVENTS AFTER THE BALANCE SHEET DATE

None.

12. OTHERS

(1) Capital management

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

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(2) Financial instruments

A. Financial instruments by category

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

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

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

Foreign exchange risk

I. The Company operates internationally and is exposed to foreign exchange risk arising from of the Company used in various functional currency, the transactions primarily with respect to the USD and RMB. Exchange risk arises from future commercial transactions and recognized assets and liabilities.
II. Management has set up a policy to require the segments to manage their foreign exchange risk against their functional currencies.

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

(Foreign currency: functional currency)	December 31, 2020	December 31, 2020	December 31, 2020
	Foreign currency amount(In thousands)	Exchange rate	Book value (NTD)
Financial assets Non-monetaryitems JPY: NTD Investments accounted for usingequitymethod USD: NTD	$ 861,900 0.2763 $ 238,143 883,748 28.4800 25,169,157

(Foreign currency: functional currency)	December 31, 2019
	Foreign currency amount(In thousands)	Exchange rate	Book value (NTD)
Financial assets Non-monetaryitems JPY: NTD Investments accounted for usingequitymethod USD: NTD	$ 907,500 0.2760 $ 250,470 881,028 29.9800 26,413,228

IV. The total exchange gain (loss), including realized and unrealized arising from significant foreign exchange variation on the monetary items held by the Company amounted to $160 and ($54) for the years ended December 31, 2020 and 2019, respectively.
V. Analysis of foreign currency market risk arising from significant foreign exchange variation: Foreign exchange risk with respect to USD primarily arises from the exchange gain or loss resulting from foreign currency translation of investments accounted for using equity method denominated in USD. If the NTD:USD exchange rate appreciates/depreciates by 5% with all other factors remaining constant, the Company’s comprehensive income for the years ended December 31, 2020 and 2019 would increase/decrease by $1,258,458 and $1,320,661, respectively. Foreign exchange risk with respect to JPY primarily arises from the exchange gain or loss resulting from foreign currency translation of financial assets at fair value through other comprehensive income – non-current denominated in JPY. If the NTD:JPY exchange rate appreciates/depreciates by 5%, with all other factors remaining constant, the Company’s comprehensive income for the years ended December 31, 2020 and 2019 would increase/decrease by $11,907 and $12,524, respectively.

Price risk

I. The Company’s equity securities, which are exposed to price risk, are the held financial assets at fair value through profit or loss and financial assets at fair value through other comprehensive income. To manage its price risk arising from investments in equity securities, the Company diversifies its portfolio. Diversification of the portfolio is done in accordance with the limits set by the Company.
II. The Company’s investments in equity securities comprise shares issued by the domestic companies. The prices of equity securities would change due to change of the future value of investee companies. If the prices of these equity securities increase/decrease by 5%, with all other variables held constant, the post-tax profit for the years ended December 31, 2020 and 2019 would have increased/decreased by $4,276 and $4,278, respectively, as a result of gains/losses on equity securities classified as at fair value through profit or loss. Other components of equity would have increased/decreased by $47,991 and $40,356, respectively, as a result of other comprehensive income classified as equity investment at fair value through other comprehensive income.

Cash flow and fair value interest rate risk

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

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(b) Credit risk
I. Credit risk refers to the risk of financial loss to the Company arising from default by the clients or counterparties of financial instruments on the contract obligations. The main factor is that counterparties could not repay in full the accounts receivable based on the agreed terms.
II. The Company manages their credit risk taking into consideration the entire group’s concern. For banks and financial institutions, only independently rated parties with a minimum rating of 'A' are accepted.
III. The Company adopts management of credit risk, whereby the default occurs when the contract payments are past due over certain number of days.
IV. The Company assesses whether there has been a significant increase in credit risk on that instrument since initial recognition if the contract payments were past due over certain number of days based on the terms.
V. The Company operates a chain of retail stores, thus the ratio of accounts receivable to total asset is low and the probability that accounts receivable cannot be received is low. For accounts receivable from other transactions, the Company manages individually and follow up regularly. The Company assesses credit impairment loss immaterial at December 31, 2020 and 2019.
VI. The Company has no written-off financial assets that are still under recourse procedures on December 31, 2020 and 2019.
(c) Liquidity risk
I. Cash flow forecasting is performed by the operating entities of the Group and aggregated by the Group’s finance department. It monitors rolling forecasts of liquidity requirements to ensure the Group has sufficient cash to meet operational needs, while maintaining sufficient headroom on its undrawn committed borrowing facilities at all times, so that the Group does not breach borrowing limits or covenants on any of its borrowing facilities. Such forecasting takes into consideration the Group’s debt financing plans, covenant compliance, and compliance with internal balance sheet ratio targets.
II. The Company invests surplus cash in interest bearing current accounts, time deposits, money market fund and marketable securities, and chooses instruments with appropriate maturities or sufficient liquidity to provide sufficient headroom as determined by the aforementioned forecasting. The Company held no money market funds at December 31, 2020 and 2019, respectively.
III. The Company has undrawn borrowing facilities beyond one year of $9,547,456 and $9,096,726 as of December 31, 2020 and 2019, respectively.
IV. The table below analyses the Company’s non-derivative financial liabilities into relevant maturity groupings based on the remaining period at the balance sheet date to the contractual maturity date. Except for notes payable, accounts payable and other payables, whose contractual undiscounted cash flows are about to book value, maturing within oneyear, the amounts disclosed in the table are the contractual undiscounted cash flows.

Non-derivative fnancial liabilities:	Less than 1 year	Between 1 and 2 years	Between 2 and 3 years	Over 3 years
December 31, 2020
Short-term borrowings $ 3,100,464 $ - $ - $ - Short-term notes and bills payable 3,399,147 - - - Lease liabilities 8,132,305 7,984,192 7,557,734 30,975,210
Non-derivative fnancial liabilities:	Less than 1 year	Between 1 and 2 years	Between 2 and 3 years	Over 3 years
December 31, 2019
Short-term borrowings $ 5,003,747 $ - $ - $ - Lease liabilities 7,213,130 7,045,969 6,676,250 26,254,781

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

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(3) Fair value information

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

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

		December 31, 2019
	Bk l		Fair value
	oo vaue	Level 1	Level 2	Level 3
Financial assets: Guarantee deposit paid Financial liabilities: Guarantee deposit received	$ 1,372,992	$ -	$ -	$ 1,352,512
	$ 2,730,126	$ -	$ -	$ 2,701,736

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

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December 31, 2020 Level 1 Level 2 Level 3 Total
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December 31, 2020 Level 1 Level 2 Level 3 Total	Level 1	Level 2	Level 3	Total
Assets Recurringfair value measurements Financial assets at fair value through proft or loss Equity securities $ - $ - $ 85,523 $ 85,523 Financial assets at fair value through other comprehensive income Equity securities 955,479 - 4,348 959,827 $ 955,479 $ - $ 89,871 $ 1,045,350	$ -	$ -	$ 85,523	$ 85,523
	955,479	-	4,348	959,827

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December 31, 2019 Level 1 Level 2 Level 3 Total
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Assets
Recurringfair value measurements
Financial assets at fair value through proft or loss
Equity securities	$	-	$	-	$	85,565	$	85,565
Financial assets at fair value through other comprehensive income
Equity securities		802,767		-		4,348		807,115
	$	802,767	$	-	$	89,913	$	892,680

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

I. The instruments the Company used market quoted prices as their fair values (that is, Level 1) are listed below by characteristics Listed shares
Market quoted price Closing price II. Except for financial instruments with active markets, the fair value of other financial instruments is measured using valuation techniques or by reference to counterparty quotes. The fair value of financial instruments measured using valuation techniques can be referred to current fair value of instruments with similar terms and characteristics in substance, by discounted cash flow method or other valuation methods, including calculations by applying models using market information available at the consolidated balance sheet date.
E. For the years ended December 31, 2020 and 2019, there was no transfer between Level 1 and Level 2.
F. For the years ended December 31, 2020 and 2019, there was no significant transfer in or out of Level 3.
G. The Company is in charge of valuation procedures for fair value measurements being categorized within Level 3, which aim to verify the independent fair value of financial instruments. Such assessments are to ensure the valuation results are reasonable by applying independent information to compare the results to current market conditions, confirming the information resources are independent, reliable and in line with other resources, and represented as the exercisable price, and frequently making any other necessary adjustments to the fair value. Investment property is assessed by independent appraisers or based on recent closing prices of similar property in the neighboring area.
H. The qualitative information on significant unobservable inputs and sensitivity analysis of changes in significant unobservable inputs to valuation model used in Level 3 fair value measurement are provided below:

	Fair value at December31, 2020	Valuation technique	Signifcant unobservable input	Range (weightedaverage)	Relationship of inputs to fair value
Non-derivative equity instrument: Unlisted shares $ 89,871 Market comparable companies Price to book ratio multiplier 2.58 The higher the multiplier, the higher the fair value Net asset value Net asset value - The higher the net asset value, the higher the fair value

	Fair value at December31, 2019	Valuation technique	Signifcant unobservable input	Range (weightedaverage)	Relationship of inputs to fair value
Non-derivativ equity instrument:e Unlisted shares $ 89,913 Market comparable companies Price to book ratio multiplier 2.94 The higher the multiplier, the higher the fair value Net asset value Net asset value - The higher the net asset value, the higher the fair value

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

13.SUPPLEMENTARY DISCLOSURES

(1) Significant transactions information
A. Loans to others: None.
B. Provision of endorsements and guarantees to others: None.
C. Holding of marketable securities at the end of the period (not including subsidiaries, associates and joint ventures): Please refer to Table 1.
D. Acquisition or sale of the same security with the accumulated cost reaching $300 million or 20% of the Company’s paid-in capital: Please refer to Table 2.
E. Acquisition of real estate reaching $300 million or 20% of paid-in capital or more: Please refer to Table 3.
F. Disposal of real estate reaching $300 million or 20% of paid-in capital or more: None.
G. Purchases or sales of goods from or to related parties reaching $100 million or 20% of paid-in capital or more: Please refer to Table 4.
H. Receivables from related parties reaching $100 million or 20% of paid-in capital or more: Please refer to Table 5.
I. Trading in derivative instruments undertaken during the reporting periods: None.
J. Significant inter-company transactions during the reporting periods: Please refer to Table 6.
(2) Information on investees Names, locations and other information of investee companies (not including investees in Mainland China): Please refer to Table 7.
(3) Information on investments in Mainland China
A. Basic information: Please refer to Table 8.
B. Significant transactions, either directly or indirectly through a third area, with investee companies in the Mainland Area: None.
(4) Major shareholders information:

List of shareholders holding more than 5% (inclusive) of shares: Please refer to Table 9.

14.SEGMENT INFORMATION

None.

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PRESIDENT CHAIN STORE CORP. AND SUBSIDIARIES Holding of marketable securities at the end of the period (not including subsidiaries, associates and joint ventures)

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December 31, 2020
Table 1 Expressed in thousands of NTD
(Except as otherwise indicated)
As of December 31, 2020
Relationship with the General
Securities held by Type and name of securities securities issuer ledger account Number Book value [Ownership ] Fair value Footnote
of shares (%)
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	Stock:
President Chain Store Corp.	President Investment Trust Corp.	Director of President Investment Trust Corp.	Financial assets at fair value through proft or loss－non-	2,667,600 $	45,298	7.60 $	45,298
			current
President Chain Store Corp.	Career Consulting Co. Ltd.	None	〃	837,753	14,504	5.37	14,504
President Chain Store Corp.	Kaohsiung Rapid Transit Corp.	〃	〃	2,572,127	25,721	0.92	25,721
President Chain Store Corp.	PK Venture Capital Corp.	Director of PK Venture	〃	321,300	-	6.67	-
		Capital Corp.
Mech-President Corp.	Yamay International Development Corp.	None	〃	9	-	-	-
President Chain Store Corp.	President Securities Corp.	Investee of Uni-President	Financial assets at fair value	38,985,684	717,337	2.79	717,337
		Enterprises Corp.	through other comprehensive
		under the equity method	income－non-current
President Chain Store Corp.	Duskin Co., Ltd.	None	〃	300,000	238,142	0.61	238,142
President Chain Store Corp.	Koasa Yamako Corp.	Director of Koasa Yamako	〃	650,000	4,348	10.00	4,348
		Corp.
	Benefciary certifcates:
Books.com. Co., Ltd.	Jih Sun Money Market Fund	None	Financial assets at fair value through proft or loss－current	2,675,943 $	40,005	- $	40,005
Books.com. Co., Ltd.	Capital Money Market Fund	〃	〃	1,229,732	20,002	-	20,002
Books.com. Co., Ltd.	Union Money Market Fund	〃	〃	3,756,884	50,003	-	50,003
Chieh Shun Logistics International	Taishin 1699 Money Market Fund	〃	〃	5,960,766	81,340	-	81,340
Corp.
Chieh Shun Logistics International	UPAMC James Bond Money Market	〃	〃	2,725,601	45,902	-	45,902
Corp.	Fund
Uni-Wonder Corp.	Union Money Market Fund	〃	〃	22,539,952	300,000	-	300,000
Uni-Wonder Corp.	FSITC Taiwan Money Market Fund	〃	〃	18,142,352	280,000	-	280,000
Uni-Wonder Corp.	Allianz Global Investors Taiwan Money	〃	〃	19,789,597	250,000	-	250,000
	Market Fund
Uni-Wonder Corp.	Taishin 1699 Money Market Fund	〃	〃	7,328,208	100,000	-	100,000
Uni-President Department Store	Prudential Financial Money Market	〃	〃	225,636	3,600	-	3,600
Corp.	Fund
Uni-President Department Store	Jih Sun Money Market Fund	〃	〃	13,307,511	198,948	-	198,948
Corp.
President Information Corp.	FSITC Taiwan Money Market Fund	〃	〃	3,663,272	56,537	-	56,537
President Information Corp.	Prudential Financial Money Market	〃	〃	5,430,438	86,642	-	86,642
	Fund
President Information Corp.	Jih Sun Money Market Fund	〃	〃	4,968,959	74,286	-	74,286
President Information Corp.	Union Money Market Fund	〃	〃	3,005,327	40,000	-	40,000
President Logistics International	Taishin 1699 Money Market Fund	〃	〃	4,499,979	61,406	-	61,406
Corp.
President Logistics International	UPAMC James Bond Money Market	〃	〃	772,065	13,002	-	13,002
Corp.	Fund
President Pharmaceutical Corp.	Jih Sun Money Market Fund	〃	〃	499,153	7,462	-	7,462
President Pharmaceutical Corp.	Taishin 1699 Money Market Fund	〃	〃	2,957,710	40,361	-	40,361
Q-ware Systems & Services Corp.	Eastspring Investments Well Pool	〃	〃	25,961,335	356,000	-	356,000
	MoneyMarket Fund

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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

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	Benefciary certifcates:
President Chain Store Corp.	UPAMC James Bond Money	Note 1	Not applicable	Not applicable	-	$	-	59,449,851	$	1,000,000	59,449,851	$	1,000,309	$	1,000,000	$	309	-	$	-	-	$	-
	Market Fund
Books.com. Co., Ltd.	Jih Sun Money Market Fund	〃	〃	〃	1,344,764		20,005	161,639,258		2,403,000	160,308,079		2,383,881		2,383,000		881	-		-	2,675,943		40,005
Books.com. Co., Ltd.	Capital Money Market Fund	〃	〃	〃	-		-	34,276,697		557,000	33,046,965		537,143		537,000		143	-		2	1,229,732		20,002
Books.com. Co., Ltd.	CTBC Hwa-win Money Market	〃	〃	〃	-		-	52,306,259		580,000	52,306,259		580,163		580,000		163	-		-	-		-
	Fund
Chieh Shun Logistics	Taishin 1699 Money Market Fund	〃	〃	〃	6,846,847		93,009	80,993,369		1,102,900	81,879,450		1,114,892		1,114,567		325	-	(	2 )	5,960,766		81,340
International Corp.
Chieh Shun Logistics	UPAMC James Bond Money	〃	〃	〃	1,698,941		28,505	28,099,894		472,500	27,073,234		455,198		455,100		98	-	(	3 )	2,725,601		45,902
International Corp.	Market Fund
Uni-Wonder Corp.	Union Money Market Fund	〃	〃	〃	-		-	92,542,496		1,230,000	70,002,544		930,779		930,000		779	-		-	22,539,952		300,000
Uni-Wonder Corp.	FSITC Taiwan Money Market	〃	〃	〃	19,527,436		300,000	84,387,942		1,300,000	85,773,026		1,321,113		1,320,000		1,113	-		-	18,142,352		280,000
	Fund
Uni-Wonder Corp.	Allianz Global Investors Taiwan	〃	〃	〃	15,898,378		200,000	107,010,614		1,350,000	103,119,395		1,300,888		1,300,000		888	-		-	19,789,597		250,000
	Money Market Fund
Uni-Wonder Corp.	Taishin 1699 Money Market Fund	〃	〃	〃	12,514,539		170,000	54,340,339		740,000	59,526,670		810,368		810,000		368	-		-	7,328,208		100,000
Uni-Wonder Corp.	Prudential Financial Money	〃	〃	〃	18,260,010		290,000	36,447,972		580,000	54,707,982		870,786		870,000		786	-		-	-		-
	Market Fund
Uni-Wonder Corp.	Nomura Money Market Fund	〃	〃	〃	-		-	19,509,550		320,000	19,509,550		320,096		320,000		96	-		-	-		-
President Drugstore Business	Taishin 1699 Money Market Fund	〃	〃	〃	-		-	193,677,816		2,637,000	193,677,816		2,637,415		2,637,000		415	-		-	-		-
Corp.
Uni-President Department	UPAMC James Bond Money	〃	〃	〃	-		-	91,578,664		1,539,700	91,578,664		1,540,045		1,539,700		345	-		-	-		-
Store Corp.	Market Fund
Uni-President Department	Jih Sun Money Market Fund	〃	〃	〃	-		-	125,172,585		1,869,987	111,865,074		1,671,447		1,671,040		407	-		1	13,307,511		198,948
Store Corp.
President Information Corp.	Union Money Market Fund	〃	〃	〃	-		-	32,882,015		437,000	29,876,688		397,118		397,000		118	-		-	3,005,327		40,000
President Logistics	Taishin 1699 Money Market Fund	〃	〃	〃	736,692		10,007	46,269,683		630,300	42,506,396		579,007		578,904		103	-		3	4,499,979		61,406
International Corp.
President Logistics	UPAMC James Bond Money	〃	〃	〃	864,391		14,503	21,820,980		367,000	21,913,306		368,548		368,499		49	-	(	2 )	772,065		13,002
International Corp.	Market Fund
President Pharmaceutical	Taishin 1699 Money Market Fund	〃	〃	〃	1,464		20	78,416,917		1,067,860	75,460,671		1,027,865		1,027,530		335	-		11	2,957,710		40,361
Corp.
Q-ware Systems & Services	Eastspring Investments Well Pool	〃	〃	〃	19,990,627		273,000	216,123,478		2,960,000	210,152,770		2,877,709		2,877,000		709	-		-	25,961,335		356,000
Corp.	Money Market Fund
	Stock:
President Chain Store (Hong	President Chain Store (Shanghai)	Note 2	Issuance of	Parent	-	$	103,731	-	$	523,594	-	$	-	$	-	$	-	-	($	182,293 )	-	$	445,032
Kong) Holdings Limited	Ltd.		common stock	company to
			for cash	subsidiary

Note 1: The security was recognized as "Financial assets at fair value through profit or loss–current". Note 2: The security was recognized as "Investments accounted for using equity method".

2020 ANNUAL REPORT 201

Parent Company Only Financial Statements and Report of Independent Accountants

PRESIDENT CHAIN STORE CORP. AND SUBSIDIARIES Acquisition of real estate reaching $300 million or 20% of paid-in capital or more

Acquisition of real estate reaching $300 million	Acquisition of real estate reaching $300 million	Acquisition of real estate reaching $300 million	Acquisition of real estate reaching $300 million	Acquisition of real estate reaching $300 million	Acquisition of real estate reaching $300 million	Acquisition of real estate reaching $300 million	or 20% of paid-in capital or more	or 20% of paid-in capital or more	or 20% of paid-in capital or more	or 20% of paid-in capital or more	or 20% of paid-in capital or more	or 20% of paid-in capital or more	or 20% of paid-in capital or more
Table 3							For the year ended December 31, 2020 Expressed in thousands of NTD (Except as otherwise indicated)
Corporation of acquisition	Name of property	Date of acquisition	Trade amount	Status of payment pf proceeds	Name of the counter-party	Relationship	The last transfer data od counter-party				Basis for price determination	Reason for acquisition	other terms
							Owner	Relationship	Transfer Day	Amount
Uni-President Cold-Chain Corp. Land of Jinhua Nuannuan Dist., Keelung City November 20,2020 $642,000 100% of price was paid Tze Shin International Co., Ltd. Not applicable Not applicable Not applicable Not applicable Not applicable Based on the appraisal results of Evermore Valuation and market conditions to bargain. Based on the comprehensive planning of the company Not applicable

202 2020 ANNUAL REPORT

Parent Company Only Financial Statements and Report of Independent Accountants

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

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

For the year ended December 31, 2020
Table 4 Expressed in thousands of NTD
(Except as otherwise indicated)
Differences in transaction
Notes/accounts receivable
Transaction terms compared to third party
(payable)
transactions
Purchaser/seller Counterparty Relationship with the Percentage Percentage of Footnote
counterparty total notes/
Purchases of total
Amount Credit term Unit price Credit term Balance accounts
(sales) purchases
receivable
(sales)
(payable)
President Chain Store Uni-President Enterprises Corp. Ultimate parent company Purchases $ 16,248,126 15 Net 30~40 days from the end of No significant No significant ($ 1,360,290 ) ( 8 )
----- End of picture text -----

President Chain Store	Uni-President Enterprises Corp.	Ultimate parent company	Purchases	$	16,248,126	15 Net 30~40 days from the end of	No signifcant	No signifcant	($	1,360,290 ) (	8 )
Corp.						the month when invoice is issued	differences	differences
	Uni-President Superior	Subsidiary	〃		4,011,077	4 Net 45 days from the end of the	〃	〃	(	714,114 ) (	4 )
	Commissary Corp.					month when invoice is issued
	Tung Ang Enterprises Corp.	Sister company	〃		2,257,958	2 Net 30 days from the end of the	〃	〃	(	177,619 ) (	1 )
						month when invoice is issued
	21 Century Co., Ltd.	Subsidiary	〃		610,638	1 Net 30~60 days from the end of	〃	〃	(	117,521 ) (	1 )
						the month when invoice is issued
	Q-ware Systems & Services	〃	〃		589,592	1 Net 40 days from the end of the	〃	〃	(	108,442 ) (	1 )
	Corp.					month when invoice is issued
	Kai Ya Food Co., Ltd.	Sister company	〃		580,071	1 Net 40 days from the end of the	〃	〃	(	87,249 ) (	1 )
						month when invoice is issued
	Lien Bo Corp.	〃	〃		535,933	- Net 10~54 days from the end of	〃	〃	(	64,519 )	-
						the month when invoice is issued
	Kuang Chuan Dairy Co., Ltd.	Other related party	〃		533,167	- Net 30~65 days from the end of	〃	〃	(	107,328 ) (	1 )
						the month when invoice is issued
	Tait Marketing & Distribution Co.,	Sister company	〃		468,295	- Net 20~70 days from the end of	〃	〃	(	92,912 ) (	1 )
	Ltd.					the month when invoice is issued
	President Packaging Industrial	〃	〃		417,431	- Net 15~60 days from the end of	〃	〃	(	94,417 ) (	1 )
	Corp.					the month when invoice is issued
	President Transnet Corp.	Subsidiary	〃		392,499	- Net 60 days from the end of the	〃	〃	(	56,423 )	-
						month when invoice is issued
	President Pharmaceutical Corp.	〃	〃		371,590	- Net 60~70 days from the end of	〃	〃	(	115,292 ) (	1 )
						the month when invoice is issued
	Wei Lih Food Industrial Co., Ltd.	Other related party	〃		284,004	- Net 30~60 days from the end of	〃	〃	(	34,961 )	-
						the month when invoice is issued
Capital Marketing	President Chain Store Corp.	Parent company	Service revenue		(213,642 ) (	64 ) Net 45~60 days from the end of	〃	〃		39,835	57
Consultant Corp.						the month when invoice is issued
Chieh Shun Logistics	President Transnet Corp.	Subsidiary of President	Delivery revenue	(	693,339 ) (	36 ) Net 40 days from the end of the	〃	〃		82,723	41
International Corp.		Chain Store Corp.				month when invoice is issued
	President Logistics International	Parent company	〃	(	1,172,069 ) (	61 ) Net 20 days from the end of the	〃	〃		113,019	56
	Corp.					month when invoice is issued
President Transnet Corp.	Chieh Shun Logistics	Subsidiary of President	Service cost		693,339	7 Net 40 days from the end of the	〃	〃	(	82,723 ) (	4 )
	International Corp.	Chain Store Corp.				month when invoice is issued
	President Chain Store Corp.	Parent company	Sales revenue	(	392,499 ) (	63 ) Net 60 days from the end of the	〃	〃		56,423	4
						month when invoice is issued
Uni-Wonder Corp.	Uni-President Enterprises Corp.	Ultimate parent company	Purchases		361,526	8 Net 30 days from the end of the	〃	〃	(	33,539 ) (	6 )
						month when invoice is issued
	Tong Zhan Corporation Ltd.	Other related party	〃		992,081	23 Net 25 days from the end of the	〃	〃	(	114,190 ) (	20 )
						month when invoice is issued
	Retail Support International Corp.	Subsidiary of President	〃		215,922	5 Net 30 days from the end of the	〃	〃	(	19,188 ) (	3 )
		Chain Store Corp.				month when invoice is issued
	Tait Marketing & Distribution Co.,	Other related party	〃		118,823	3 Net 30 days from the end of the	〃	〃	(	6,643 ) (	1 )
	Ltd.					month when invoice is issued
President Information	President Chain Store Corp.	Parent company	Service revenue	(	1,010,132 ) (	68 ) Net 45 days from the end of the	No signifcant	No signifcant		109,070	54
Corp.						month when invoice is issued	differences	differences
President Logistics	Chieh Shun Logistics	Subsidiary	Service cost		1,172,069	37 Net 20 days from the end of the	〃	〃	(	113,019 ) (	32 )
International Corp.	International Corp.					month when invoice is issued
	Retail Support International Corp.	Parent company	Delivery revenue	(	666,411 ) (	20 ) Net 20 days from the end of the	〃	〃		78,669	21
						month when invoice is issued
	Uni-President Cold-Chain Corp.	Subsidiary of President	〃	(	1,179,022 ) (	35 ) Net 20 days from the end of the	〃	〃		109,368	30
		Chain Store Corp.				month when invoice is issued

2020 ANNUAL REPORT 203

Parent Company Only Financial Statements and Report of Independent Accountants

==> picture [481 x 94] intentionally omitted <==

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

Differences in transaction
Notes/accounts receivable
Transaction terms compared to third party
(payable)
transactions
Purchaser/seller Counterparty Relationship with the Percentage Percentage of Footnote
counterparty total notes/
Purchases of total
Amount Credit term Unit price Credit term Balance accounts
(sales) purchases
receivable
(sales)
(payable)
Wisdom Distribution Service 〃〃 ($ 1,208,703 ) ( 36 ) Net 20 days from the end of the 〃〃 $ 152,473 41
----- End of picture text -----

	Wisdom Distribution Service	〃	〃	($	1,208,703 ) (	36 ) Net 20 days from the end of the	〃	〃	$	152,473	41
	Corp.					month when invoice is issued
	Retail Support Taiwan Corp.	〃	〃	(	100,839 ) (	3 ) Net 20 days from the end of the	〃	〃		9,405	3
						month when invoice is issued
Retail Support International	Retail Support Taiwan Corp.	Subsidiary	Service cost		312,451	19 Net 15~20 days from the end of	〃	〃	(	11,540 ) (	8 )
Corp.						the month when invoice is issued
	President Logistics International	〃	〃		666,411	40 Net 20 days from the end of the	〃	〃	(	78,669 ) (	55 )
	Corp.					month when invoice is issued
	Uni-Wonder Corp.	Subsidiary of President	Delivery revenue	(	215,922) (	7 ) Net 30 days from the end of the	〃	〃		19,188	11
		Chain Store Corp.				month when invoice is issued
Uni-President Cold-Chain	President Logistics International	〃	Service cost		1,179,022	38 Net 20 days from the end of the	〃	〃	(	109,368 ) (	2 )
Corp.	Corp.					month when invoice is issued
Wisdom Distribution	President Logistics International	〃	〃		1,208,703	45 Net 20 days from the end of the	〃	〃	(	152,473 ) (	33 )
Service Corp.	Corp.					month when invoice is issued
	Books.com. Co., Ltd.	〃	Service revenue	(	303,923 ) (	9 ) Net 30 days from the end of the	〃	〃		27,021	35
						month when invoice is issued
Q-ware Systems &	President Chain Store Corp.	Parent company	〃	(	589,592 ) (	61 ) Net 40 days from the end of the	〃	〃		108,442	71
Services Corp.						month when invoice is issued
President Drugstore	President Pharmaceutical Corp.	Subsidiary of President	Purchases		536,769	5 Net 70 days from the end of the	〃	〃	(	12,589 ) (	1 )
Business Corp.		Chain Store Corp.				month when invoice is issued
President Pharmaceutical	President Drugstore Business	〃	Sales revenue	(	536,769 ) (	34 ) Net 70 days from the end of the	〃	〃		12,589	3
Corp.	Corp.					month when invoice is issued
	President Chain Store Corp.	Parent company	〃	(	371,590 ) (	24 ) Net 60~70 days from the end of	〃	〃		115,292	27
						the month when invoice is issued
21 Century Co., Ltd.	President Chain Store Corp.	〃	〃	(	610,638 ) (	47 ) Net 30~60 days from the end of	〃	〃		117,521	60
						the month when invoice is issued
Uni-President Superior	President Chain Store Corp.	〃	〃	(	4,011,077 ) (	98 ) Net 45 days from the end of the	〃	〃		714,114	100
Commissary Corp.						month when invoice is issued
Retail Support Taiwan	Retail Support International Corp.	〃	Delivery revenue	(	312,451 ) (	78 ) Net 15~20 days from the end of	〃	〃		11,540	50
Corp.						the month when invoice is issued
Zhejiang Uni-Champion	Shanghai President Logistic Co.,	〃	〃	(	124,005 ) (	29 ) Net 60 days from the end of the	〃	〃		35,465	56
Logistics Development	Ltd.					month when invoice is issued
Co., Ltd.
Shanghai President	Zhejiang Uni-Champion Logistics	Subsidiary	Service cost		124,005	21 Net 60 days from the end of the	〃	〃	(	35,465 ) (	31 )
Logistic Co., Ltd.	Development Co., Ltd.					month when invoice is issued
Duskin Serve Taiwan Co.,	President Chain Store Corp.	Parent company	Service revenue	(	197,497 ) (	15 ) Net 15~60 days from the end of	〃	〃		32,930	-
Ltd.						the month when invoice is issued
ICASH Corp.	President Chain Store Corp.	〃	〃	(	165,619 )	- Net 60 days from the end of the	〃	〃		31,207	63
						month when invoice is issued
President Logistic	Shan Dong President Yinzuo	Subsidiary of President	Delivery revenue	(	113,121 ) (	95 ) Net 30 days from the end of the	No signifcant	No signifcant		9,456	91
ShanDong Co., Ltd.	Commercial Limited	Chain Store Corp.				month when invoice is issued	differences	differences
Shan Dong President	President Logistic ShanDong	〃	Service cost		113,121	5 Net 30 days from the end of the	〃	〃	(	9,456 ) (	3 )
Yinzuo Commercial	Co., Ltd.					month when invoice is issued
Limited

204 2020 ANNUAL REPORT

Parent Company Only Financial Statements and Report of Independent Accountants

PRESIDENT CHAIN STORE CORP. AND SUBSIDIARIES

Receivables from related parties reaching $100 million or 20% of paid-in capital or more December 31, 2020 Table 5

December 31, 2020	December 31, 2020	December 31, 2020	December 31, 2020	December 31, 2020
Table 5					Expressed in thousands of NTD (Except as otherwise indicated)
Creditor	Counterparty	Relationship with the counterparty	Balance as of December 31, 2020	Turnover rate	Overdue receivables		Amount collected subsequent to the balance sheet date	Allowance for doubtful accounts
					Amount	Action taken
Uni-President Superior Commissary Corp. President Chain Store Corp. Parent company $ 714,114 5.80 21 Century Co., Ltd. President Chain Store Corp. 〃 117,521 6.27 President Pharmaceutical Corp. President Chain Store Corp. 〃 115,292 4.09 President Information Corp. President Chain Store Corp. 〃 109,070 8.64 Q-ware Systems & Services Corp. President Chain Store Corp. 〃 108,442 5.41 President Logistics International Corp. Wisdom Distribution Service Corp. Subsidiary of President Chain Store Corp. 152,473 9.11 Chieh Shun Logistics International Corp. President Logistics International Corp. 〃 113,019 11.19 President Logistics International Corp. Uni-President Cold-Chain Corp. 〃 109,368 11.42					$ - None $ 355,971 $ - - 〃 72,270 - - 〃 48,097 - - 〃 5,083 - - 〃 75,462 - - 〃 139,706 - - 〃 113,019 - - 〃 109,166 -

2020 ANNUAL REPORT 205

Parent Company Only Financial Statements and Report of Independent Accountants

PRESIDENT CHAIN STORE CORP. AND SUBSIDIARIES Significant inter-company transactions during the reporting periods

Table 6

For the year ended December 31, 2020 Expressed in thousands of NTD (Except as otherwise indicated)

==> picture [481 x 77] intentionally omitted <==

			company				when invoice is issued
2	Capital Marketing Consultant Corp.	President Chain Store Corp.	Subsidiary to parent	Service revenue	(	213,642)	Net 45-60 days from the end of the	0.08
			company				month when invoice is issued
3	President Information Corp.	President Chain Store Corp.	Subsidiary to parent	Service revenue	(	1,010,132)	Net 45 days from the end of the month	0.39
			company				when invoice is issued
3	President Information Corp.	President Chain Store Corp.	Subsidiary to parent	Accounts receivable		109,070	Net 45 days from the end of the month	0.05
			company				when invoice is issued
4	Q-ware Systems & Services Corp.	President Chain Store Corp.	Subsidiary to parent	Service revenue	(	589,592)	Net 40 days from the end of the month	0.23
			company				when invoice is issued
4	Q-ware Systems & Services Corp.	President Chain Store Corp.	Subsidiary to parent	Accounts receivable		108,442	Net 40 days from the end of the month	0.05
			company				when invoice is issued
5	Uni-President Superior Commissary	President Chain Store Corp.	Subsidiary to parent	Sales revenue	(	4,011,077)	Net 45 days from the end of the month	1.55
	Corp.		company				when invoice is issued
5	Uni-President Superior Commissary	President Chain Store Corp.	Subsidiary to parent	Accounts receivable		714,114	Net 45 days from the end of the month	0.34
	Corp.		company				when invoice is issued
6	President Pharmaceutical Corp.	President Drugstore Business	Subsidiary to subsidiary	Sales revenue	(	536,769)	Net 70 days from the end of the month	0.21
		Corp.					when invoice is issued
6	President Pharmaceutical Corp.	President Chain Store Corp.	Subsidiary to parent	Sales revenue	(	371,590)	Net 60-70 days from the end of the	0.14
			company				month when invoice is issued
6	President Pharmaceutical Corp.	President Chain Store Corp.	Subsidiary to parent	Accounts receivable		115,292	Net 60-70 days from the end of the	0.06
			company				month when invoice is issued
7	President Transnet Corp.	President Chain Store Corp.	Subsidiary to parent	Sales revenue	(	392,499)	Net 60 days from the end of the month	0.15
			company				when invoice is issued
8	Chieh Shun Logistics International	President Logistics	Subsidiary to subsidiary	Delivery revenue	(	1,172,069)	Net 20 days from the end of the month	0.45
	Corp.	International Corp.					when invoice is issued
8	Chieh Shun Logistics International	President Logistics	Subsidiary to subsidiary	Accounts receivable		113,019	Net 20 days from the end of the month	0.05
	Corp.	International Corp.					when invoice is issued
8	Chieh Shun Logistics International	President Transnet Corp.	Subsidiary to subsidiary	Delivery revenue	(	693,339)	Net 40 days from the end of the month	0.27
	Corp.						when invoice is issued
9	President Logistics International	Retail Support International	Subsidiary to subsidiary	Delivery revenue	(	666,411)	Net 20 days from the end of the month	0.26
	Corp.	Corp.					when invoice is issued
9	President Logistics International	Uni-President Cold-Chain	Subsidiary to subsidiary	Delivery revenue	(	1,179,022)	Net 20 days from the end of the month	0.46
	Corp.	Corp.					when invoice is issued
9	President Logistics International	Wisdom Distribution Service	Subsidiary to subsidiary	Delivery revenue	(	1,208,703)	Net 20 days from the end of the month	0.47
	Corp.	Corp.					when invoice is issued
9	President Logistics International	Wisdom Distribution Service	Subsidiary to subsidiary	Accounts receivable		152,473	Net 20 days from the end of the month	0.07
	Corp.	Corp.					when invoice is issued
9	President Logistics International	Uni-President Cold-Chain	Subsidiary to subsidiary	Accounts receivable		109,368	Net 20 days from the end of the month	0.05
	Corp.	Corp.					when invoice is issued
9	President Logistics International	Retail Support Taiwan Corp.	Subsidiary to subsidiary	Delivery revenue	(1	00,839)	Net 20 days from the end of the month	0.04
	Corp.						when invoice is issued
10	Duskin Serve Taiwan Co., Ltd.	President Chain Store Corp.	Subsidiary to parent	Service revenue	(	197,497)	Net 15-60 days from the end of the	0.08
			company				month when invoice is issued
11	21 Century Co., Ltd.	President Chain Store Corp.	Subsidiary to parent	Sales revenue	(	610,638)	Net 30-60 days from the end of the	0.24
			company				month when invoice is issued
11	21 Century Co., Ltd.	President Chain Store Corp.	Subsidiary to parent	Accounts receivable		117,521	Net 30-60 days from the end of the	0.06
			company				month when invoice is issued
12	Wisdom Distribution Service Corp.	Books.com. Co., Ltd.	Subsidiary to subsidiary	Service revenue	(	303,923)	Net 30 days from the end of the month	0.12
							when invoice is issued

206 2020 ANNUAL REPORT

Parent Company Only Financial Statements and Report of Independent Accountants

Number				Transaction	Transaction	Transaction	Transaction
	Company name	Counterparty	Relationship	General ledger account	Amount	Transaction terms	Percentage of consolidated total operating revenues or total assets
13 Retail Support Taiwan Corp. Retail Support International Corp. Subsidiary to subsidiary Delivery revenue ($ 312,451) Net 15-20 days from the end of the month when invoice is issued 0.12 14 Zhejiang Uni-Champion Logistics Development Co., Ltd. Shanghai President Logistic Co., Ltd. Subsidiary to subsidiary Delivery revenue ( 124,005) Net 60 days from the end of the month when invoice is issued 0.05 15 ICASH Corp. President Chain Store Corp. Subsidiary to parent company Service revenue ( 165,619) Net 60 days from the end of the month when invoice is issued 0.06 16 Retail Support International Corp. Uni-Wonder Corp. Subsidiary to subsidiary Delivery revenue ( 215,922) Net 30 days from the end of the month when invoice is issued 0.08 17 President Logistic ShanDong Co., Ltd. Shan Dong President Yinzuo Commercial Limited Subsidiary to subsidiary Delivery revenue ( 113,121) Net 30 days from the end of the month when invoice is issued 0.04

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

2020 ANNUAL REPORT 207

Parent Company Only Financial Statements and Report of Independent Accountants

PRESIDENT CHAIN STORE CORP. AND SUBSIDIARIES

Names, locations and other information of investee companies (not including investees in Mainland China)

Table 7

For the year ended Decmeber 31, 2020 Expressed in thousands of NTD (Except as otherwise indicated)

==> picture [481 x 105] intentionally omitted <==

President Chain Store Corp.	President Chain Store (BVI) Holdings Ltd.	British Virgin	Professional investment	$ 6,712,138	$ 6,712,138	171,589,586	100.00 $	25,102,119 ($	140,337 ) ($	140,337 )	Subsidiary
		Islands
President Chain Store Corp.	President Drugstore Business Corp.	Taiwan	Sales of cosmetics, medicines and daily items	288,559	288,559	78,520,000	100.00	1,445,303	287,519	287,519	Subsidiary
President Chain Store Corp.	President Transnet Corp.	Taiwan	Delivery service	711,576	711,576	103,496,399	70.00	1,882,686	904,170	632,919	Subsidiary
President Chain Store Corp.	Mech-President Corp.	Taiwan	Gas station, installment and maintenance of elevators	904,475	904,475	55,858,815	80.87	747,097	149,825	121,165	Subsidiary
President Chain Store Corp.	President Pharmaceutical Corp.	Taiwan	Sales of various health care products, cosmetics, and	330,216	330,216	22,121,962	73.74	699,003	113,382	83,608	Subsidiary
			pharmaceuticals
President Chain Store Corp.	Uni-President Department Store Corp.	Taiwan	Department stores	840,000	840,000	27,999,999	70.00	530,898	224,008	156,806	Subsidiary
President Chain Store Corp.	Uni-President Superior Commissary Corp.	Taiwan	Fresh food manufacture	520,141	520,141	48,519,890	90.00	526,475	45,327	40,794	Subsidiary
President Chain Store Corp.	Uni-President Cold-Chain Corp.	Taiwan	Low-temperature logistics and warehousing	237,437	237,437	42,934,976	60.00	910,506	389,793	233,876	Subsidiary
President Chain Store Corp.	President Information Corp.	Taiwan	Enterprise information management and consultancy	320,741	320,741	25,714,475	86.00	499,116	86,576	74,456	Subsidiary
President Chain Store Corp.	Q-ware Systems & Services Corp.	Taiwan	Information software services	332,482	332,482	24,382,921	86.76	392,745	85,373	73,862	Subsidiary
President Chain Store Corp.	Wisdom Distribution Service Corp.	Taiwan	Logistics and storage of publication and e-commerce	50,000	50,000	10,847,421	100.00	516,295	306,530	306,530	Subsidiary
President Chain Store Corp.	Books.com. Co., Ltd.	Taiwan	Retail business without shop	100,400	100,400	9,999,999	50.03	412,559	409,682	204,945	Subsidiary
President Chain Store Corp.	President Lanyang Art Corporation	Taiwan	Art and cultural exhibition	20,000	20,000	2,000,000	100.00	24,996 (	16 ) (	16 )	Subsidiary
President Chain Store Corp.	Duskin Serve Taiwan Co., Ltd.	Taiwan	Cleaning instruments leasing and selling	102,000	102,000	10,199,999	51.00	208,040	160,701	82,001	Subsidiary
President Chain Store Corp.	ICASH Corp.	Taiwan	Electronic ticketing and electronic payment	700,000	700,000	70,000,000	100.00	580,833	14,687	14,687	Subsidiary
President Chain Store Corp.	Uni-President Development Corp.	Taiwan	Construction, development and operation of an MRT	720,000	720,000	72,000,000	20.00	757,759	108,246	21,649	Note
			station
President Chain Store Corp.	Uni-Wonder Corp.	Taiwan	Coffee chain store	3,286,206	3,286,206	21,382,674	60.00	5,078,516	645,759	294,258	Subsidiary
President Chain Store Corp.	Retail Support International Corp.	Taiwan	Room-temperature logistics and warehousing	91,414	91,414	6,429,999	25.00	171,835	219,575	54,894	Subsidiary
President Chain Store Corp.	Presicarre Corp.	Taiwan	Management of retail department store	7,112,028	7,112,028	145,172,360	19.50	5,434,309	1,943,841	381,499	Note
President Chain Store Corp.	President Fair Development Corp.	Taiwan	Operation of shopping mall, department store,	3,191,700	3,191,700	190,000,000	19.00	2,084,800	238,917	45,394	Note
			international trade, etc.
President Chain Store Corp.	President International Development Corp.	Taiwan	Professional investment	500,000	500,000	44,100,000	3.33	445,096	651,363	18,992	Note
President Chain Store Corp.	Tung Ho Development Corp.	Taiwan	Management of entertainment business	861,696	861,696	19,930,000	12.46	33,133 (	582,122 ) (	73,312 )	Note
President Chain Store Corp.	Ren-Hui Investment Corp.	Taiwan	Professional investment	637,231	637,231	6,500,000	100.00	64,566 (	9,630 ) (	9,630 )	Subsidiary
President Chain Store Corp.	Capital Marketing Consultant Corp.	Taiwan	Enterprise management consultancy	9,506	9,506	2,500,000	100.00	78,709	44,478	44,478	Subsidiary
President Chain Store Corp.	PCSC (China) Drugstore Limited	British Virgin	Professional investment	277,805	277,805	8,746,008	92.20	67,038	1,587	1,463	Subsidiary
		Islands
President Chain Store Corp.	President Chain Store Corporation Insurance	Taiwan	Insurance brokers	213,000	213,000	1,500,000	100.00	33,271	15,373	15,373	Subsidiary
	Brokers Co., Ltd.
President Chain Store Corp.	Cold Stone Creamery Taiwan Ltd.	Taiwan	Sales of ice cream	170,000	170,000	12,244,390	100.00	23,180	17,591	17,591	Subsidiary
President Chain Store Corp.	President Being Corp.	Taiwan	Sports and entertainment business	170,000	170,000	1,500,000	100.00 (	30,854 )	2,085	2,085	Subsidiary
President Chain Store Corp.	21 Century Co., Ltd.	Taiwan	Operation of chain restaurants	160,680	160,680	10,000,000	100.00	131,869	43,239	43,239	Subsidiary
President Chain Store Corp.	President Chain Store Tokyo Marketing Corp.	Japan	Trade and enterprise management consultancy	35,648	35,648	9,800	100.00	90,560	8,699	8,706	Subsidiary
President Chain Store Corp.	Uni-President Oven Bakery Corp.	Taiwan	Bread and pastry retailer	391,300	391,300	6,511,963	100.00 (	91,507 ) (	49,243 ) (	49,243 )	Subsidiary
President Chain Store Corp.	President Collect Service Corp.	Taiwan	Collection agent	10,500	10,500	1,049,999	70.00	93,370	104,121	72,887	Subsidiary
President Chain Store Corp.	Mister Donut Taiwan Co., Ltd.	Taiwan	Bakery retailer	200,000	200,000	7,500,049	50.00	98,554	21,028	10,514	Note

208 2020 ANNUAL REPORT

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==> picture [480 x 106] intentionally omitted <==

President Chain Store Corp.	Uni-President Organics Corp.	Taiwan	Health care products and organic food	47,190 $	47,190	1,833,333	36.67 $	42,447 $	26,295 $	9,643	Note
President Chain Store Corp.	President Technology Corp.	Taiwan	Software development and call center service	7,500	7,500	750,000	15.00	25,543	59,960	9,028	Note
Books.com. Co., Ltd.	Books.com. (BVI) Ltd.	British Virgin	Professional investment	-	1,478	-	-	- (	30 ) (	30 )	Subsidiary of a subsidiary
		Islands
Mech-President Corp.	Tong Ching Corporation	Taiwan	Gas station	9,600	9,600	960,000	60.00	22,067	6,887	4,132	Subsidiary of a subsidiary
President Chain Store (Hong Kong)	PCSC (China) Drugstore Limited	British Virgin	Professional investment	21,075	21,075	740,000	7.80	5,671	1,587	124	Subsidiary of a subsidiary
Holdings Limited		Islands
President Chain Store (BVI)	President Chain Store (Labuan) Holdings Ltd.	Malaysia	Professional investment	830,572	830,572	29,163,337	100.00	2,329,244 (	133,352 ) (	133,352 )	Subsidiary of a subsidiary
Holdings Ltd.
President Chain Store (BVI)	President Chain Store (Hong Kong) Holdings	Hong Kong	Professional investment	4,435,957	4,435,957	134,603,354	100.00	3,808,139 (	247,729 ) (	244,378 )	Subsidiary of a subsidiary
Holdings Ltd.	Limited
President Chain Store (Labuan)	Philippine Seven Corp.	Philippines	Convenience sotre	829,774	829,774	394,970,516	52.22	2,327,307 (	248,214 ) (	122,915 )	Subsidiary of a subsidiary
Holdings Ltd.
President Logistics International	Chieh Shun Logistics International Corp.	Taiwan	Trucking	180,000	180,000	26,670,000	100.00	338,745	42,467	42,467	Subsidiary of a subsidiary
Corp.
President Pharmaceutical Corp.	President Pharmaceutical (Hong Kong)	Hong Kong	Sales of various health care products, cosmetics, and	178,024	178,024	5,935,900	100.00	38,650 (	21,300 ) (	21,300 )	Subsidiary of a subsidiary
	Holdings Limited		pharmaceuticals
Ren-Hui Investment Corp.	Books.com. Co., Ltd.	Taiwan	Retail business without shop	-	-	1	-	-	409,682	-	Subsidiary of a subsidiary
Ren-Hui Investment Corp.	Uni-President Department Store Corp.	Taiwan	Department stores	-	-	1	-	-	224,008	-	Subsidiary of a subsidiary
Ren-Hui Investment Corp.	Mech-President Corp.	Taiwan	Gas station, installment and maintenance of elevators	-	-	1	-	-	149,825	-	Subsidiary of a subsidiary
Ren-Hui Investment Corp.	President Information Corp.	Taiwan	Enterprise information management and consultancy	-	-	1	-	-	86,576	-	Subsidiary of a subsidiary
Ren-Hui Investment Corp.	President Transnet Corp.	Taiwan	Delivery service	-	-	1	-	-	904,170	-	Subsidiary of a subsidiary
Ren-Hui Investment Corp.	Q-ware Systems & Services Corp.	Taiwan	Information software services	-	-	1	-	-	85,373	-	Subsidiary of a subsidiary
Ren-Hui Investment Corp.	Duskin Serve Taiwan Co., Ltd.	Taiwan	Cleaning instruments leasing and selling	-	-	1	-	-	160,701	-	Subsidiary of a subsidiary
Ren-Hui Investment Corp.	President Pharmaceutical Corp.	Taiwan	Sales of various health care products, cosmetics, and	-	-	1	-	-	113,382	-	Subsidiary of a subsidiary
			pharmaceuticals
Ren-Hui Investment Corp.	Mister Donut Taiwan Co., Ltd.	Taiwan	Bakery retailer	-	-	1	-	-	21,028	-	Note
Ren-Hui Investment Corp.	Uni-President Superior Commissary Corp.	Taiwan	Fresh food manufacture	-	-	1	-	-	45,327	-	Subsidiary of a subsidiary
Ren-Hui Investment Corp.	Uni-President Cold-Chain Corp.	Taiwan	Low-temperature logistics and warehousing	-	-	1	-	-	389,793	-	Subsidiary of a subsidiary
Ren-Hui Investment Corp.	Retail Support International Corp.	Taiwan	Room-temperature logistics and warehousing	-	-	1	-	-	219,575	-	Subsidiary of a subsidiary
Ren-Hui Investment Corp.	President Collect Service Corp.	Taiwan	Collection agent	-	-	1	-	-	104,121	-	Subsidiary of a subsidiary
Ren-Hui Investment Corp.	Ren Hui Holding Co., Ltd.	British Virgin	Professional investment	60,374	60,374	2,000,000	100.00	49,316 (	13,354 ) (	13,354 )	Subsidiary of a subsidiary
		Islands
Retail Support International Corp.	Retail Support Taiwan Corp.	Taiwan	Room-temperature logistics and warehousing	15,300	15,300	2,871,300	51.00	77,872	47,846	24,401	Subsidiary of a subsidiary
Retail Support International Corp.	President Logistics International Corp.	Taiwan	Trucking	44,975	44,975	9,481,500	49.00	177,853	87,088	42,673	Subsidiary of a subsidiary
Retail Support Taiwan Corp.	President Logistics International Corp.	Taiwan	Trucking	5,425	5,425	1,161,000	6.00	21,778	87,088	5,225	Subsidiary of a subsidiary
Uni-President Cold-Chain Corp.	President Logistics International Corp.	Taiwan	Trucking	23,850	23,850	4,837,500	25.00	90,741	87,088	21,772	Subsidiary of a subsidiary
Uni-President Cold-Chain Corp.	Uni-President Logistics (BVI) Holdings Limited	British Virgin	Professional investment	87,994	87,994	2,990	100.00	108,970	9,683	9,683	Subsidiary of a subsidiary
		Islands
Wisdom Distribution Service Corp.	President Logistics International Corp.	Taiwan	Trucking	18,850	18,850	3,870,000	20.00	72,593	87,088	17,418	Subsidiary of a subsidiary
Philippine Seven Corp.	Convenience Distribution Inc.	Philippines	Logistic, warehousing and retail	26,683	26,683	4,500,000	100.00	26,683 (	6,584 )	-	Subsidiary of a subsidiary
Philippine Seven Corp.	Store Sites Holding, Inc.	Philippines	Professional investment	28,902	28,902	40,000	100.00	28,902	1,110	-	Subsidiary of a subsidiary

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

2020 ANNUAL REPORT 209

Parent Company Only Financial Statements and Report of Independent Accountants

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

==> picture [481 x 115] intentionally omitted <==

(Shen Zhen) Co., Ltd.
President Chain Store (Shanghai)	Covenience Store	2,705,234	Note 1	2,181,640	523,594	-	2,705,234	(	180,254 )	100.00	(	180,254 )	445,032	-	Note 2
Ltd.
Shanghai President Logistic Co.,	Logistics and warehousing	56,960	Note 1	56,960	-	-	56,960		37,464	100.00		37,464	522,063	-	Note 2
Ltd.
Shanghai Cold Stone Ice Cream	Sales of ice cream	-	Note 1	932,408	-	-	932,408		23,687	-		23,687	-	-	Note 3
Corporation Ltd.
Shan Dong President Yinzuo	Supermarkets	261,797	Note 1	116,152	-	-	116,152	(	87,492 )	55.00	(	48,776 )	139,417	7,405	Note 2
Commercial Limited
President (Shanghai) Health	Sales of various health	170,854	Note 1	170,854	-	-	170,854	(	18,127 )	73.74	(	12,986 )	8,938	53,264	Note 2
Product Trading Company Ltd.	care products, cosmetics,
	and pharmaceuticals
Zhejiang Uni-Champion Logistics	Logistics and warehousing	174,531	Note 1	166,113	-	-	166,113		19,608	80.00		15,735	174,358	24,275	Note 2
Development Co., Ltd.
Bejing Bokelai Customer Co.	Enterprise information	-	Note 1	-	-	-	-	(	25 )	-	(	13 )	-	-	Note 4
	consulting, network
	technology development
	and services
President Chain Store (Taizhou)	Logistics and warehousing	261,797	Note 1	261,797	-	-	261,797		26,613	100.00		26,613	382,820	-	Note 2
Ltd.
President Logistic ShanDong	Logistics and warehousing	218,164	Note 1	218,164	-	-	218,164		8,942	100.00		7,327	205,600	-	Note 2
Co., Ltd.
President Chain Store (Zhejiang)	Covenience Store	610,859	Note 1	610,859	-	-	610,859	(	118,971 )	100.00	(	118,971 )	173,272	-	Note 2
Ltd.
Beauty Wonder (Zhejiang)	Sales of cosmetics and	130,898	Note 1	130,898	-	-	130,898	(	41,326 )	100.00	(	41,326 )	34,898	-	Note 2
TradingCo.,Ltd.	dailyitems
Note 1: Indirect investment in PRC through the existing			company located in the third area.
Note 2: The fnancial statements were reviewed by the CPA of parent company in Taiwan.
Note 3: The procedures	for liquidation and cancellation		of registration of Shanghai Cold Stone Ice Cream Corporation						Ltd. has been completed in November 2020.
Note 4: The procedures	for liquidation and cancellation		of registration of Bejing Bokelai Customer Co. has been					completed in July 2020.

Company name	Accumulated amount of remittance from Taiwan to Mainland China as of December 31, 2020	Investment amount approved by the Investment Commission of the Ministry of Economic Affairs(MOEA)	Ceiling on investments in Mainland China imposed by the Investment Commission of MOEA
President Chain Store Corp. $ 4,389,851 $ 8,682,809 $ 26,986,619 President Pharmaceutical Corp. 170,854 170,854 439,547 Uni-President Cold-Chain Corp. 84,512 84,512 898,181 Ren-Hui Investment Corp. 49,079 49,079 80,000

PRESIDENT CHAIN STORE CORP. AND SUBSIDIARIES List of shareholders holding more than 5% (inclusive) of shares

December 31, 2020

Table 9

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

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

210 2020 ANNUAL REPORT

Parent Company Only Financial Statements and Report of Independent Accountants

PRESIDENT CHAIN STORE CORP. STATEMENT OF CASH AND CASH EQUIVALENTS

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

DECEMBER 31, 2020
Statement 1 Expressed in thousands of NTD
Item Description Amount
----- End of picture text -----

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

PRESIDENT CHAIN STORE CORP. STATEMENT OF INVENTORIES

STATEMENT OF INVENTORIES	STATEMENT OF INVENTORIES
Statement 2		DECEMBER 31, 2020 Expressed in thousands of NTD
Item	Description	Amount		Footnote
		Cost	Market value
		$ 8,907,312 ( 15,379)

PRESIDENT CHAIN STORE CORP. STATEMENT OF CHANGES IN FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME – NON-CURRENT

FOR THE YEAR ENDED DECEMBER 31, 2020 Expressed in thousands of NTD

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

2020 ANNUAL REPORT 211

Parent Company Only Financial Statements and Report of Independent Accountants

PRESIDENT CHAIN STORE CORP. STATEMENT OF CHANGES IN FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS – NON-CURRENT

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

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

212 2020 ANNUAL REPORT

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PRESIDENT CHAIN STORE CORP.

STATEMENT OF CHANGES IN INVESTMENTS ACCOUNTED FOR USING EQUITY METHOD

FOR THE YEAR ENDED DECEMBER 31, 2020

Statement 5 Expressed in thousands of NTD

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

Other
Market price or Equity of
Balance as of January 1, 2020 Additions (Note 1) Decreases (Note 2) Adjustments Balances as of December 31, 2020 subsidiaries and Associates
Name (Note 3) Collateral
Number of shares Amount Number of shares Amount Number of shares Amount Amount Number of shares Percentage of ownership Amount Unit price Total price
----- End of picture text -----

President Chain Store (BVI) Holdings Ltd.	171,589,586	$ 26,348,522	-	$	-	-	($	140,337 )	($	1,106,066 )	171,589,586	100.00	$ 25,102,119 $	146.29 $ 25,102,115	146.29 $ 25,102,115	None
President Drugstore Business Corp.	78,520,000	1,432,449	-		287,519	-		-	(	274,665 )	78,520,000	100.00	1,445,303	18.41	1,445,303	〃
President Transnet Corp.	103,496,399	1,634,536	-		632,919	-		-	(	384,769 )	103,496,399	70.00	1,882,686	18.01	1,863,844	〃
Mech-President Corp.	55,858,815	702,347	-		121,165	-		-	(	76,415 )	55,858,815	80.87	747,097	13.37	747,097	〃
President Pharmaceutical Corp.	22,121,962	743,725	-		83,608	-		-	(	128,330 )	22,121,962	73.74	699,003	24.42	540,204	〃
Uni-President Department Store Corp.	27,999,999	543,179	-		156,806	-		-	(	169,087 )	27,999,999	70.00	530,898	18.96	530,898	〃
Uni-President Superior Commissary Corp.	48,519,890	484,058	-		40,794	-		-		1,623	48,519,890	90.00	526,475	10.85	526,475	〃
Uni-President Cold-Chain Corp.	23,605,042	679,859	19,329,934		233,876	-		-	(	3,229 )	42,934,976	60.00	910,506	20.92	898,181	〃
President Information Corp.	25,714,475	493,788	-		74,456	-		-	(	69,128 )	25,714,475	86.00	499,116	15.18	390,275	〃
Q-ware Systems & Services Corp.	24,382,921	390,054	-		73,862	-		-	(	71,171 )	24,382,921	86.76	392,745	15.57	379,592	〃
Wisdom Distribution Service Corp.	10,847,421	454,125	-		306,530	-		-	(	244,360 )	10,847,421	100.00	516,295	47.60	516,295	〃
Books.com. Co., Ltd.	9,999,999	398,293	-		204,945	-		-	(	190,679 )	9,999,999	50.03	412,559	41.26	412,559	〃
Duskin Serve Taiwan Co., Ltd.	10,199,999	201,317	-		82,001	-		-	(	75,278 )	10,199,999	51.00	208,040	20.40	208,040	None
ICASH Corp.	70,000,000	567,243	-		14,687	-		-	(	1,097)	70,000,000	100.00	580,833	8.30	580,833	〃
Uni-President Development Corp.	72,000,000	764,191	-		21,649	-		-	(	28,081 )	72,000,000	20.00	757,759	10.52	757,760	〃
Uni-Wonder Corp.	21,382,674	5,164,559	-		294,258	-		-	(	380,301 )	21,382,674	60.00	5,078,516	289.40	6,188,232	〃
Retail Support International Corp.	6,429,999	178,147	-		54,894	-		-	(	61,206 )	6,429,999	25.00	171,835	25.33	162,848	〃
PresiCarre Corp.	145,172,360	5,723,198	-		381,499	-		-	(	670,388 )	145,172,360	19.50	5,434,309	49.47~57.71	7,181,265~	〃
															8,377,590
President Fair Development Corp.	190,000,000	2,039,406	-		45,394	-		-		-	190,000,000	19.00	2,084,800	10.06	1,912,267	〃
President International Development Corp.	44,100,000	459,696	-		18,992	-		-	(	33,592 )	44,100,000	3.33	445,096	10.38	457,787	〃
21 Century Co., Ltd.	10,000,000	86,391	-		43,239	-		-		2,239	10,000,000	100.00	131,869	13.19	131,869	〃
President Collect Service Corp., etc.	-	628,458	-		191,768	-	(	132,201)	(	135,019)	-	-	553,006	-	553,100	〃
		$ 50,117,541		$	3,364,861		($	272,538)	($	4,098,999)			$ 49,110,865

Note 1: The additions this year includes recognized gains on investments of $3,364,861 and stock dividends of $19,329,934.

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

2020 ANNUAL REPORT 213

Parent Company Only Financial Statements and Report of Independent Accountants

PRESIDENT CHAIN STORE CORP. STATEMENT OF CHANGES IN PROPERTY, PLANT AND EQUIPMENT

FOR THE YEAR ENDED DECEMBER 31, 2020 Expressed in thousands of NTD

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

Statement 6 Expressed in thousands of NTD
Balance as of Balance as of
Item Additions Disposals Transfer Collateral Footnote
January 1,2020 December 31, 2020
----- End of picture text -----

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

PRESIDENT CHAIN STORE CORP. STATEMENT OF CHANGES IN RIGHT-OF-USE ASSETS

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

PRESIDENT CHAIN STORE CORP. STATEMENT OF SHORT-TERM BORROWINGS

Statement 8	Statement 8	DECEMBER 31, 2020 Expressed in thousands of NTD	DECEMBER 31, 2020 Expressed in thousands of NTD	DECEMBER 31, 2020 Expressed in thousands of NTD	DECEMBER 31, 2020 Expressed in thousands of NTD	DECEMBER 31, 2020 Expressed in thousands of NTD
Type of borrowings	Explanation	Balance as of December 31, 2020	Contract period	Interest rate range	Collateral	Footnote
Credit loan HSBC Limited $ 600,000 2020/12/24~2021/1/22 0.49% None 〃 MUFG Bank, Ltd. 2,100,000 2020/12/7~2021/1/6 0.49% 〃〃 MUFG Bank, Ltd. 400,000 2020/12/24~2021/1/22 0.49% 〃 $ 31,000,000

214 2020 ANNUAL REPORT

Parent Company Only Financial Statements and Report of Independent Accountants

PRESIDENT CHAIN STORE CORP. STATEMENT OF SHORT-TERM NOTES AND BILLS PAYABLE

Statement 9	Statement 9	Statement 9	Statement 9		DECEMBER 31, 2020 Expressed in thousands of NTD	DECEMBER 31, 2020 Expressed in thousands of NTD	DECEMBER 31, 2020 Expressed in thousands of NTD
Item	Guarantee/ Accepting agency	Period of contract	Range of interest rate		Amount		Footnote
				Issue amount	Discount of short-term transactions Instruments	Book value
Commercial paper payable Sumitomo Mitsui Banking Corporation 2020/12/7~2021/1/6 0.408% $ 2,400,000 ($ 608 ) $ 2,399,392 Note 〃 Sumitomo Mitsui Banking Corporation 2020/12/24~2021/1/22 0.408% 1,000,000 ( 245) 999,755 〃 $ 3,400,000 ($ 853) $ 3,399,147				$ 2,400,000 1,000,000	($ 608 ) ( 245)

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

PRESIDENT CHAIN STORE CORP. STATEMENT OF LEASE LIABILITIES

DECEMBER 31, 2020 Expressed in thousands of NTD

Statement 10				Expressed in	thousands of NTD
Item	Summary	Lease period	Discount rate range	Balance as of December 31, 2020	Footnote
Buildings	Current	2007/1/1~2040/3/26	0.74%~1.03%	$ 7,566,006
〃	Non-Current	2007/1/1~2040/3/26	〃	43,283,311
				$ 50,849,317

PRESIDENT CHAIN STORE CORP. STATEMENT OF OPERATING REVENUE

PRESIDENT CHAIN STORE CORP. STATEMENT OF OPERATING REVENUE	PRESIDENT CHAIN STORE CORP. STATEMENT OF OPERATING REVENUE	PRESIDENT CHAIN STORE CORP. STATEMENT OF OPERATING REVENUE
FOR THE YEAR ENDED DECEMBER 31, 2020 Statement 11 Expressed in thousands of NTD
Item	Amount	Footnote

PRESIDENT CHAIN STORE CORP. STATEMENT OF OPERATING COSTS

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FOR THE YEAR ENDED DECEMBER 31, 2020
Statement 12 Expressed in thousands of NTD
Item Amount
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Inventory at beginning of the year Inventory purchased Compensation for damaged merchandise Promotion income Inventory at end of the year Others Operating costs	$ 8,036,366 109,936,949 ( 363,966 ) ( 586,759 ) ( 8,891,933 ) 3,460,156
	$ 111,590,813

2020 ANNUAL REPORT 215

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PRESIDENT CHAIN STORE CORP. STATEMENT OF SELLING EXPENSES

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FOR THE YEAR ENDED DECEMBER 31, 2020
Statement 13 Expressed in thousands of NTD
Item Amount
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Incentive bonuses for franchisees	$	22,732,406
Wages and salaries		3,730,537
Utilities expense		2,258,412
Depreciation		9,947,396
Other expenses		6,258,187
	$	44,926,938

PRESIDENT CHAIN STORE CORP. STATEMENT OF EMPLOYEE BENEFIT, DEPRECIATION AND AMORTIZATION EXPENSES BY FUNCTION

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FOR THE YEARS ENDED DECEMBER 31, 2020 AND 2019
Statement 14 Expressed in thousands of NTD
2020 2019
By function Classified Classified
By nature Classified as as operating Total Classified as as operating Total
operating costs operating costs
expenses expenses
Employee benefit expense
Wages and salaries $ - $ 5,949,019 $ 5,949,019 $ - $ 5,870,712 $ 5,870,712
Labor and health insurance fees - 484,022 484,022 - 477,863 477,863
Pension costs - 262,184 262,184 - 268,017 268,017
Directors’ remuneration - 191,433 191,433 - 199,553 199,553
Supervisors’ remuneration - - - - - -
Other employee benefit expenses - 316,415 316,415 - 346,301 346,301
Depreciation - 9,972,207 9,972,207 - 8,986,348 8,986,348
Amortization - 25,898 25,898 - 55,700 55,700
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Note1: As of December 31, 2020, and 2019, the Company had 8,500 and 8,430 employees (including part-timers), including 10 directors, respectively.

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

Note3: Wages and salaries of the Company is based on the principle of equal pay for equal work. Salaries adjustment and benefit distribution are based on the content of the employee’s position, performance and contribution, and regularly review the overall benefit of employees every year to ensure that the competitiveness of labor market. Note4: The Company set up an audit committee, so there is no supervisor’s remuneration.

216 2020 ANNUAL REPORT

Appendix Consolidated Business Reports of Affiliated Companies

7.1 Affiliated Companies Conditions

As of December 31, 2020

7.1.1 Organizational chart

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100%
100% President Chain Store 52.22% Philippine Convenience Distribution Inc.
(Labuan) Holdings Ltd. Seven Corp. 100% Store Sites Holding, Inc.
100% President Chain Store (BVI)
Holdings Ltd. 100% Beauty Wonder (Zhejiang) Trading Co.,
Ltd.
100% President Chain Store (Zhejiang) Ltd.
100% President Chain Store (Taizhou) Ltd. 100% President Logistic
100% ShanDong Co., Ltd.
President Chain Store (Shanghai) Ltd.
President Chain Store
100% (Hong Kong) Holdings 100% Shanghai President Logistics Co., Ltd.
Ltd.
40% Shan Dong President Yinzuo Commercial 15%
Ltd.
7.8%
PCSC (China) Drugstore Ltd.
92.2%
100%
60% Uni-Wonder Corp.
President Cosmed Chain Store (Shen
(formerly known as “President Starbucks Coffee Corp.”)
Zhen) Co., Ltd.
100%
President Drugstore Business
100%
ICASH Corporation
100% President Lanyang Art Corporation
100%
Cold Stone Creamery Taiwan Ltd.
100%
Wisdom Distribution Service Corp.
President Chain
Uni-President 45.40% 100%
Store Corporation 21 Century Co., Ltd.
Enterprises Corp.
100%
Uni-President Oven Bakery Corp.
100%
President Chain Store Tokyo Marketing Corporation
100% Capital Marketing Consultant Corp.
100%
President Being Corp.
100% President Chain Store Corporation
Insurance Brokers Co., Ltd.
100% 100%
Ren-Hui Investment Corp. Ren Hui Holding Co., Ltd.
90%
Uni-President Superior Commissary Corp.
86.76%
Qware Systems & Services Corp.
86%
President Information Corp.
80.87% 60%
Mech-President Corp. Tong Ching Corporation
73.74% 100% 100%
President Pharmaceutical C orp. President Pharmaceutica l (Hong Kong) President (Sanghai) Health Product
Holdings Ltd. Trading Company Ltd.
70%
President Transnet Corp.
70%
President Collect Service Corp.
70%
Uni-President Department Store Corp.
60% Uni-President Cold-Chain C orp. 100% Uni-President Logistics (BVIHoldings Ltd. ) 50% Zhejiang Uni-Champion Logistics Development Co., Ltd. 50%
51%
Duskin Serve Taiwan Co., Ltd.
50.03%
Books.com. Co., Ltd
51%
25% Retail Support Taiwan Corp.
Retail Support International Corp. 49% President Logistics Inter national Corp. 100% Chien-Shun Logistics International Corp.
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2020 ANNUAL REPORT 217

Consolidated Business Reports of Affiliated Companies

7.1.1.2 PCSC has a direct or indirect control over the management of the personnel, financial or business operation of the following companies, and is considered to be the controlling company under Article 369-2 of the Company Law.

Affliated Companies	Relationship
Retail Support International Corp. The appointee of PCSC is voted as the Chairman of the affliated company.

7.1.2 Information of PCSC affiliated companies

[Dec. 31, 2020/Unit: NT$1,000]

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Date of Major Business /Production
Company Address Paid-in Capital
incorporation Items
President Chain Store (BVI) Holdings Jul. 09, 1998 Tropic Isle Building, P.O. Box 438, Road Town, Tortola, USD 17,159,000 Professional investment
Ltd. British Virgin Islands
PCSC (China) Drugstore Limited Feb. 16, 2004 Vistra Corporate Services Centre, Wickhams Cay II, Road USD 9,486,000 Professional investment
Town, Tortola, VG1110, British Virgin Islands
Uni-Wonder Corporation Nov. 03, 1997 8F, No.8, Tung Hsing Rd., Songshan Dist., Taipei City, 356,378 Coffee chain store
Taiwan
President Drugstore Business Corp. Jul. 27, 1995 7F, No.8, Tung Hsing Rd., Songshan Dist., Taipei City, 785,200 Sales of cosmetics, medicines
Taiwan and daily items
ICASH Corporation Nov. 19, 2013 3F, No.101, Ruihu St., Neihu Dist., Taipei City, Taiwan 700,000 Electronic ticketing and
electronic payment
President Lanyang Art Corporation Jun. 07, 2004 8F, No.8, Tung Hsing Rd., Songshan Dist., Taipei City, 20,000 Art and cultural exhibition
Taiwan
Cold Stone Creamery Taiwan Ltd. Dec. 26, 2006 8F, No.8, Tung Hsing Rd., Songshan Dist., Taipei City, 122,444 Sales of ice cream
Taiwan
Wisdom Distribution Service Corp. Jan. 11, 1999 No.70-1, Sec. 2, Jiayuan Rd., Shulin Dist., New Taipei City, 108,474 Logistic and storage of
Taiwan publication and e-commerce
21 Century Co., Ltd. Nov. 18, 1995 4F., No.50, Ln. 258, Ruiguang Rd., Neihu Dist., Taipei City , 100,000 Operation of chain restaurants
Taiwan
Uni-President Oven Bakery Corp. Nov. 20, 2000 12F, No.8, Tung Hsing Rd., Songshan Dist., Taipei City, 65,120 Bread and pastry retailer
Taiwan
President Chain Store Tokyo Jan. 07, 2009 SOYIC bldg. 4F 3-11 Nihonbashi koami-cho, Chuo-ku, JPY 98,000,000 Trade and enterprise
Marketing Corporation Tokyo 103-0016, Japan management consultancy
Capital Marketing Consultant Corp. Apr. 13, 1998 8F, No.8, Tung Hsing Rd., Songshan Dist., Taipei City, 25,000 Enterprise management
Taiwan consultancy
President Being Corp. Apr. 08, 2003 B1, No.149, Sec.5, Minsheng E. Rd., Songshan Dist., Taipei 15,000 Sports and beauty business
City, Taiwan
President Chain Store Corporation Oct. 05, 2006 6F., No. 65, Guangfu S. Rd., Songshan Dist., Taipei City 15,000 Insurance brokers
Insurance Brokers Co., Ltd. 105, Taiwan
Ren-Hui Investment Corp. Dec. 20, 1996 8F, No.8, Tung Hsing Rd., Songshan Dist., Taipei City, 65,000 Professional investment
Taiwan
Uni-President Superior Commissary Mar. 11, 1999 No.16, Zhongxing Rd., Tucheng Dist., New Taipei City, 539,110 Fresh food manufacture
Corp. Taiwan
Q-ware Systems & Services Corp. Jun. 26, 1963 9F, No.81, Zhouzi St., Neihu Dist., Taipei City, Taiwan 281,042 Information software services
President Information Corp. Aug. 27, 1997 6F, No. 246, Yang Guang St., Neihu Dist., Taipei City, 299,006 Enterprise information
Taiwan managenment and consultancy
Mech-President Corp. Dec. 09, 1991 No. 67, Huangong Rd., Yung Kang Dist., Tainan City, Taiw 690,713 Gas station, installment and
an maintenance of elevators
President Pharmaceutical Corp. Sep. 03, 1993 7F, No.8, Tung Hsing Rd., Songshan Dist., Taipei City, 300,000 Sales of various health care
Taiwan products, cosmetics, and
pharmaceuticals
President Transnet Corp. Jan. 24, 2000 2F, No.8, Sec. 3, Shuangshi Rd., Banqiao Dist., New Taipei 1,478,520 Delivery service
City, Taiwan
President Collect Service Corp. Jun. 24, 2002 8F, No.8, Tung Hsing Rd., Songshan Dist., Taipei City, 15,000 Collection agent
Taiwan
Uni-President Department Store Feb. 24, 2006 No.8, Sec. 5, Zhong Xiao E. Rd., Xinyi Dist., Taipei City, 400,000 Department stores
Corp. Taiwan
Uni-President Cold-Chain Corp. Jan. 22, 1999 No.340, Tzu Chiang Rd., Yung Kang Dist., Tainan City, 715,583 Low-temperature logistics and
Taiwan warehousing
Duskin Serve Taiwan Co., Ltd. Oct. 28, 1994 8F, No. 8,Tung Hsing Rd., Songshan Dist., Taipei City, 200,000 Cleaning instruments leasing
Taiwan and selling
Books.com. Co., Ltd. Dec. 27, 1995 12F, No.560, Sec. 4, Zhongxiao E. Rd., Xinyi Dist., Taipei 199,900 Retail business without shop
City, Taiwan
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Date of Major Business /Production
Company Address Paid-in Capital
incorporation Items
Retail Support International Aug. 13, 1990 7F, No.560, Sec.4, Zhong Xiao E. Rd., Xinyi Dist., Taipei 257,200 Room-temperature logistics and
Corporation City, Taiwan wardhousing
President Chain Store (Labuan) Oct. 24, 2000 Level 15(A1), Main Office Tower, Financial Park Labuan, USD 29,163,000 Professional investment
Holdings Ltd. Jalan Merdeka, 87000 Labuan FT, Malaysia
Philippine Seven Corp. Nov. 23, 1982 7/F The Columbia Tower, Ortigas Avenue, Mandaluyong PHP 757,104,533 Convenience store
City, Manila, Philippine
Convenience Distribution Inc. Sep. 17, 1998 8001F ,Lagaspi St. Brgy, Maybunga, Pasig City, Manila, PHP 45,000,000 Logistic, warehousing and retail
Philippine
Store Sites Holding, Inc. Nov. 09, 2000 7/F The Columbia Tower, Ortigas Avenue, Mandaluyong PHP 48,741,864 Professional investment
City, Manila, Philippine
President Chain Store (Hong Kong) Aug. 13, 2008 Unit 1405-1406, Dominion Centre, 43-59 Queen’s Road USD 134,603,000 Professional investment
Holdings Limited East, Wan Chai, Hong Kong
Beauty Wonder (Zhejiang) Trading Apr. 12, 2018 Room 205, No.29, Building 8, Yuewang New Village, RMB 30,000,000 Sales of cosmetics and daily
Co., Ltd. Shangcheng District, Hangzhou City, Zhejiang Province, items
China
President Chain Store (Zhejiang) May. 08, 2017 Room B102-103-1,Building 3, Qianjiang International Time RMB 140,000,000 Convenience store
Ltd. Square, Jianggan Dist., Hangzhou City, Zhejiang Province,
China
President Chain Store (Taizhou) Ltd. Nov. 27, 2015 South of Innovation Dadao, Gaoxin Technology Industries RMB 60,000,000 Logistic and warehousing
Park, Gaogang Dist., Taizhou City, Jiangsu Province, China
President Chain Store (Shanghai) Feb. 03, 2009 No.45-47,Mengzi Rd, Huangpu Dist., Shanghai, China RMB 620,000,000 Convenience store
Ltd.
Shanghai President Logistic Co., Ltd. Apr. 15, 2009 Building 18, No.22, Min Yi Rd., Songjiang Dist., Shanghai, USD 2,000,000 Logistic and warehousing
China
President Logistic ShanDong Co., Nov. 21, 2016 No.301, Tong Yi Street, JiBei Development Zone, JiYang RMB 50,000,000 Logistic and warehousing
Ltd. County, JiNan City, ShanDong Province, China
Ren Hui Holding Co., Ltd. Apr. 12, 2017 4th Floor, Ellen Skelton Building, 3076 Sir Francis Drake USD 2,000,000 Professional investment
Highway, Road Town, Tortola, VG1110, British Virgin Islands
Shan Dong President Yinzuo Sep. 23, 1997 Floor 35, Huiyuan Building, No.38, Huaneng Road, Lixia RMB 60,000,000 Supermarkets
Commercial Limited Zone, Jinan City, Shandong Province, China
President Cosmed Chain Store Dec. 13, 2004 No.3, Floor 7, Main Tower, Xinxing Plaza, Jiefang Road, RMB 100,000,000 Wholesale of merchandise
(Shen Zhen) Co., Ltd. Guiyuan Sub-District, Luohu District, Shenzhen, Guangdong
Province, China
Tong Ching Corporation Jul. 04, 2003 No. 138, Huandao N. Rd., Jincheng Township, Kinmen 16,000 Gas station
County , Taiwan
President Pharmaceutical (Hong Feb. 25, 2009 703A, 7/F, Golden Centre, 188 Des Voeux Road Central, USD 5,936,000 Sales of various health care
Kong) Holdings Limited Sheung Wan, Hong Kong products, cosmetics, and
pharmaceuticals
President (Shanghai) Health Product Nov.19, 2009 Room 203, 2F, No.131 , Lin Hong Road, Chang Ning RMB 39,157,000 Sales of various health care
Trading Company Ltd. District, Shanghai, China products, cosmetics, and
pharmaceuticals
Uni-President Logistics (BVI) Mar. 14, 2007 Vistra Corporate Services Centre, Wickhams Cay II, Road USD 2,991,000 Professional investment
Holdings Limited Town, Tortola, VG1110, British Virgin Islands
Zhejiang Uni-Champion Logistics Dec. 26, 2007 3PL Warehouse, Building 10, No.27 and No.29, Jiuhuan RMB 40,000,000 Logistic and warehousing
Development Co., Ltd. Road, Jianggan District, Hangzhou City, Zhejiang Province,
China
Retail Support Taiwan Corp. Apr. 16, 1997 No.63-1, Jijin 3rd Rd., Anle Dist., Keelung City, Taiwan 56,300 Room-temperature logistics and
wardhousing
President Logistics International Feb. 11, 1998 1F, No.242-1, Minzu Rd., Zhongli Dist., Taoyuan City , 193,500 Trucking
Corp. Taiwan
Chieh Shun Logistics International Aug. 01, 2003 2F, No.242-1, Minzu Rd., Zhongli Dist., Taoyuan City , 266,700 Trucking
Corp. Taiwan
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2020 ANNUAL REPORT 219

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7.1.3 Shareholders in Common of PCSC and its affiliates with deemed control and subordination: None.

7.1.4 Business scope of PCSC and its affiliated companies

The business scope of PCSC and its affiliated companies includes: retailing, investment, services, logistics, delivery and manufacture, etc. The mutual dealings and division of work among each affiliate are as follows:

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Affiliated Companies Division of Work
Capital Marketing Consultant Corp. The company provides PCSC with store inventory check services and staff training programs, etc.
Wisdom Distribution Service Corp. The company is the merchandise supplier and distributor of PCSC.
President Information Corp. The company provides PCSC and its affiliates with information system services.
Retail Support International Corp. The company is the merchandise supplier and distributor of PCSC.
Uni-President Cold-Chain Corp. The company is the merchandise supplier and distributor of PCSC.
Uni-President Superior Commissary Corp. The company is the fresh food manufacture of PCSC.
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7.1.5 Information of the directors, supervisors, and presidents of PCSC subsidiaries

Dec. 31, 2020/Unit: NT$1,000/ shares/%

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Shareholding
Company Title Name or Representative
Shares %
President Chain Store (BVI) Holdings Ltd. Director Representatives of President Chain Store Corp.: Lo, Chih-Hsien; Huang, Jui-Tien USD 17,159,000Paid-in Capital 100.00
Paid-in Capital
PCSC (China) Drugstore Limited Director Representatives of President Chain Store Corp.: Huang, Jui-Tien; Chen, Jui-Tang 92.20
USD 9,486,000
Chairman Representative of President Chain Store Corp.: Chen, Jui-Tang 21,382,674 60.00
Director Representatives of President Chain Store Corp.: Lo, Chih-Hsien; Kao, Shiow-Ling ; 21,382,674 60.00
Uni-Wonder Corporation Huang, Jui-Tien ; Hsu, Kwang-Yu ; Tsai, Hung-Chi ; Chen, Ji-Yao
Supervisor Representative of Uni-President Enterprises Corp.: Wu, Wen-Chi 14,255,116 40.00
President Lai, Ta-Cheng －－
Chairman Representative of President Chain Store Corp.: Kao, Shiow-Ling 78,520,000 100.00
Director Representatives of President Chain Store Corp.: Huang, Jui-Tien; Huang, Yu-Chen ; 78,520,000 100.00
President Drugstore Business Corp. Wang, Pao-Ming
Supervisor Representative of President Chain Store Corp.: Lee, John-Yih 78,520,000 100.00
President Huang, Yu-Chen －－
Chairman Representative of President Chain Store Corp.: Huang, Jui-Tien 70,000,000 100.00
Director Representatives of President Chain Store Corp.: Chen,Wen-Chieh; Lin, Chi-Chang; 70,000,000 100.00
ICASH Corporation Chang, Chia-Hua; Chang, Huang-Chi
Supervisor Representative of President Chain Store Corp.: Chai, Chia-Ming 70,000,000 100.00
President Liang, Yu-Lin －－
Chairman Representative of President Chain Store Corp.: Chen, Jui-Tang 2,000,000 100.00
President Lanyang Art Corporation President Lua, Wen-Ji －－
Chairman Representative of President Chain Store Corp.: Lin, Chi-Chang 12,244,390 100.00
Director Representatives of President Chain Store Corp.: Hsiu, Yi-Shiung; Chen, Wen-Chieh 12,244,390 100.00
Cold Stone Creamery Taiwan Ltd.
Supervisor Representative of President Chain Store Corp.: Liang, Kuo-Jen 12,244,390 100.00
President Hsieh, Ching-Hsun －－
Chairman Representative of President Chain Store Corp.: Huang, Jui-Tien 10,847,421 100.00
Director Representatives of President Chain Store Corp.: Kuo, Ching-Feng; Chen, Wen-Chieh 10,847,421 100.00
Wisdom Distribution Service Corp.
Supervisor Representative of President Chain Store Corp.: Liang, Kuo-Jen 10,847,421 100.00
President Cheng, Horng-Jiun －－
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Shareholding
Company Title Name or Representative
Shares %
Chairman Representative of President Chain Store Corp.: Wang, Pao-Ming 10,000,000 100.00
Director Representatives of President Chain Store Corp.: Lai, Mei-Rong; Kuo, Ching-Feng 10,000,000 100.00
21 Century Co., Ltd.
Supervisor Representative of President Chain Store Corp.: Chou, Li-Hsing 10,000,000 100.00
President Lai, Mei-Rong －－
Chairman Representative of President Chain Store Corp.: Wu, Kuo-Lin 6,511,963 100.00
Director Representatives of President Chain Store Corp.: Hsu, Kwang-Yu; Kuo, Ching-Feng 6,511,963 100.00
Uni-President Oven Bakery Corp. Supervisor Representative of President Chain Store Corp.: Hsiu, Yi-Shiung 6,511,963 100.00
Vice President Sun, Ming-Tong －－
Chairman Representative of President Chain Store Corp.: Huang, Jui-Tien 9,800 100.00
President Chain Store Tokyo Director Representatives of President Chain Store Corp.: Hsieh, Lien-Tang; Wu, Chin-Fu 9,800 100.00
Marketing Corporation Supervisor Representative of President Chain Store Corp.: Tsung, Hsi-Yung 9,800 100.00
President Wu, Chin-Fu －－
Chairman Representative of President Chain Store Corp.: Huang, Jui-Tien 2,500,000 100.00
Director Representatives of President Chain Store Corp.: Lin, Chi-Chang; Lee, Tsung-Hsien 2,500,000 100.00
Capital Marketing Consultant Corp.
Supervisor Representative of President Chain Store Corp.: Hsiu, Yi-Shiung 2,500,000 100.00
President Chiu, Hong-Chang －－
Chairman Representative of President Chain Store Corp.: Kao, Shiow-Ling 1,500,000 100.00
Director Representatives of President Chain Store Corp.: Huang Yu-Chen; Chen, Pei-Jung 1,500,000 100.00
President Being Corp.
Supervisor Representative of President Chain Store Corp.: Lee, John-Yih 1,500,000 100.00
President Chen, Pei-Jung －－
Chairman Representative of President Chain Store Corp.: Lin, Chi-Chang 1,500,000 100.00
President Chain Store Corporation Director Representatives of President Chain Store Corp.: Lua, Wen-Ji; Chiang, Cheng-Hsin 1,500,000 100.00
Insurance Brokers Co., Ltd. Supervisor Representative of President Chain Store Corp.: Liang, Kuo-Jen 1,500,000 100.00
President Lua, Wen-Ji －－
Chairman Representative of President Chain Store Corp.: Chen, Jui-Tang 6,500,000 100.00
Ren-Hui Investment Corp. President Chen, Jui-Tang －－
Chairman Representative of President Chain Store Corp: Chen, Jui-Tang 48,519,890 90.00
Director Representatives of President Chain Store Corp.: Kuo, Ching-Feng; Lee, Min-Chien; 48,519,890 90.00
Chou, Li-Hsing
Uni-President Superior Commissary
Corp. Director Representative of Asia Frozen Food Corp.: Lin, Chang-Chi 5,391,099 10.00
Supervisor Representative of Ren-Hui Investment Corp.: Liang, Kuo-Jen 1 －
President Chen, Kai-Jung －－
Chairman Representative of President Chain Store Corp.: Chang, Chia-Hua 24,382,921 86.76
Director Representatives of President Chain Store Corp.: Chang, Huang-Chi; Fu, Kuang-Jen 24,382,921 86.76
Director Representative of Taiwan Spinning Co., Ltd: Juang, Jing-Yau 172,347 0.61
Q-ware Systems & Services Corp. Director Representative of Fonmau Cereal Industrial Co., Ltd.: Lin, Kuan-Chen 243,898 0.87
Supervisor Representative of Nan Fan Housing Development Co., Ltd.: Peng, Yuan-Hung 699,071 2.49
Supervisor Representative of Ren-Hui Investment Corp.: Lin, Tsung-Yu 1 －
President Chou, Kuo-Jan －－
Chairman Representative of President Chain Store Corp.: Chang, Chia-Hua 25,714,475 86.00
Director Representatives of President Chain Store Corp.: Huang, Jui-Tien; Chen, Ching-Hsin 25,714,475 86.00
President Information Corp. Director Representative of Nomura Research Institute Ltd.: Tsutom Kataoka 4,186,074 14.00
Supervisor Representative of Ren-Hui Investment Corp.: Wu, Wen-Chi 1 －
President Chang, Chia-Hua －－
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2020 ANNUAL REPORT 221

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Shareholding
Company Title Name or Representative
Shares %
Chairman Representative of President Chain Store Corp.: Wu, Hui-Chen 55,858,815 80.87
Director Representatives of President Chain Store Corp.: Huang, Jui-Feng; Kuo, Wen-Sheng 55,858,815 80.87
Mech-President Corp. Director Representatives of Uni-President Enterprises Corp.: Lian Chin-Yi; Yen, Ming-Hsiu 13,046,358 18.89
Supervisor Representative of Ren-Hui Investment Corp.: Lee, John-Yih 1 －
President Huang, Jui-Feng －－
Chairman Representative of President Chain Store Corp.: Kao, Shiow-Ling 22,121,962 73.74
Director Representatives of President Chain Store Corp.: Huang, Jui-Tien; Wang, Pao-Ming; 22,121,962 73.74
Chen, Pei-Jung; Huang, Yu-Chen; Chai, Chia-Feng
President Pharmaceutical Corp. Director Representative of Taipo Investment Corp.: Wu, Ping-Chih 3,000,000 10.00
Director Representatives of Tung-Ren Investment Corp.: Lin, Tian-Mao; Wu, Chung-Ho 579,091 1.93
Supervisor Representative of Ren-Hui Investment Corp.: Cheng, Yea-Yun 1 －
President Chai, Chia-Feng －－
Chairman Representative of President Chain Store Corp.: Chen, Jui-Tang 103,496,399 70.00
Director Representatives of President Chain Store Corp.: Huang, Jui Tien; Hsieh, Lien-Tang; 103,496,399 70.00
Huang, Chao-Sai
President Transnet Corp. Director Representative of Uni-President Enterprises Corp.: Lu, Li-An 29,570,400 20.00
Director Representative of Yamato Holdings Co., Ltd.: Katsuhiko Umetsu 14,785,200 10.00
Supervisor Representative of Ren-Hui Investment Corp.: Wu, Wen- Chi 1 －
President Hsu, Ming-Hui －－
Chairman Representative of President Chain Store Corp.: Chen, Jui-Tang 1,049,999 70.00
Director Representatives of President Chain Store Corp.: Huang, Jui Tien; Hsieh, Lien-Tang; Wu, 1,049,999 70.00
Wan-Yu; Huang, Chao-Sai
President Collect Service Corp. Director Representatives of Yamato Holdings Co., Ltd.: Katsuhiko Umetsu; Tatsuya Suzuki 450,000 30.00
Supervisor Representative of Ren-Hui Investment Corp.: Wu, Wen-Chi 1 －
Supervisor Sadatomo Hiroki －－
President Hsu, Ming-Hui －－
Chairman Representative of President Chain Store Corp.: Kao, Shiow-Ling 27,999,999 70.00
Director Representatives of President Chain Store Corp.: Wang, Pao-Ming; Chen, Pei-Jung 27,999,999 70.00
Uni-President Department Store
Director Representative of Uni-President Enterprises Corp.: NA 12,000,000 30.00
Corp.
Supervisor Representative of Ren-Hui Investment Corp.: Lee, John-Yih 1 －
President Wang, Pao-Ming －－
Chairman Representative of Uni-President Enterprises Corp.: Lo, Chih-Hsien 14,311,658 20.00
Director Representatives of Uni-President Enterprises Corp.: Huang, Chao-Kai 14,311,658 20.00
Director Representatives of President Chain Store Corp.: Huang, Jui-Tien; Lin, Chi-Chang; Hsieh, 42,934,976 60.00
Uni-President Cold-Chain Corp. Lien-Tang; Kuo, Ching-Feng; Yao, Chieh-Hsiang
Director Representative of Nanlien International Corp.: Wu, Mao-Yuan 14,311,658 20.00
Supervisor Representative of Ren-Hui Investment Corp.: Hsiu, Yi-Shiung 1 －
President Yao, Chieh-Hsiang －－
Chairman Representative of President Chain Store Corp.: Hsieh, Lien-Tang 10,199,999 51.00
Director Representatives of President Chain Store Corp.: Lai, Ta-Chen; Hsiu, Yi-Shiung; Lee, 10,199,999 51.00
Tsung-Hsien
Duskin Serve Taiwan Co., Ltd. Director Representatives of Duskin Co., Ltd.:Ueno Shinichiro; Enomoto Masakazu; Okai Kazuo; Miyawaki Mikio 9,800,000 49.00
Supervisor Representative of Ren-Hui Investment Corp.: Lee, John-Yih 1 －
Supervisor Naito Hideyuki －－
President Lee,Yen-Sheng －－
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Shareholding
Company Title Name or Representative
Shares %
Chairman Representative of Chang Fu Investment Co., Ltd.: Lin, Pi-Jung 19,000 0.10
Director Representatives of President Chain Store Corp.: Huang, Jui-Tien; Hsieh, Lien-Tang; 9,999,999 50.03
Wang, Pao-Ming; Cheng, Horng-Jiun
Books.com. Co., Ltd. Director Representatives of Clever Investment Co., Ltd.: Chen, Yu-Chun; Chang, Ya-Ju 200,000 1.00
Supervisor Representative of Ren-Hui Investment Corp.: Wu, Wen-Chi 1 －
Supervisor Chang, Ya-Ling 143,000 0.72
President Kao, Ming-Yih －－
Chairman Representative of President Chain Store Corp.: Huang, Jui-Tien 6,429,999 25.00
Director Representative of President Chain Store Corp.: Hsieh, Lien-Tang; Chen, Wen-Chieh 6,429,999 25.00
Director Representatives of Uni-President Enterprises Corp.: Lo, Chih-Hsien 5,144,000 20.00
Retail Support International Director Representative of Mitsubishi Corp.: Yamamoto Yasuo; Chida Ken; Kaneko Noboru 9,002,000 35.00
Corporation Director Representative of Nanlien International Corp.: Wu, Mao-Yuan 5,144,000 20.00
Supervisor Representative of Ren-Hui Investment Corp.: Lin, Tsung-Yu 1 －
Supervisor Takeda Mamoru －－
President Huang,Chao-Sai －－
President Chain Store (Labuan) Director Representatives of President Chain Store (BVI) Holdings Ltd.: Lo, Chih-Hsien; Huang, Paid- in Capital 100.00
Holdings Ltd. Jui-Tien USD 29,163,000
Chairman Jose T. Pardo 2 －
Vice
Chairman Representative of President Chain Store (Labuan) Holdings Ltd.: Chen, Jui-Tang 394,970,516 52.22
Director Representatives of President Chain Store (Labuan) Holdings Ltd.: Huang, Jui-Tien; Lin, 394,970,516 52.22
Chi-Chang; Hsieh, Lien-Tang; Wu, Wen-Chi; Jose Victor P. Paterno
Director Maria Cristina P. Paterno 13,200,074 1.75
Philippine Seven Corp.
Director Representative of Progressive Dev. Corp.: Jorge L. Araneta 17,342,411 2.29
Independent
Director Antonio Jose U. Periquet, Jr. 2,000,002 0.26
Independent Michael B. Zalamea 2 －
Director
President Jose Victor P. Paterno －－
Chairman Representative of Philippine Seven Corp.: Jose Victor P. Paterno 4,500,000 100.00
Convenience Distribution Inc. Director Representatives of Philippine Seven Corp.: Liu, Jun-Ya; Lee, Ying-Jung; Liwayway T. 4,500,000 100.00
Fernandez; Eduardo P. Bataclan
President Jose Victor P. Paterno －－
Chairman Representative of Philippine Seven Corp.: Jose Victor P.Paterno 40,000 100.00
Director Representative of Philippine Seven Corp.: Liu, Jun Ya (common share) 40,000 100.00
Store Sites Holding, Inc. Director Representatives of BPI-Asset Management and Trust Corp.: Evelyn S.Enriquez; 60,000 －
Lawrence M.De Leon; Mario Gerardo Z.Evaristo (preferred share)
President Jose Victor P.Paterno －－
Paid-in Capital
President Chain Store (Hong Kong) Director Representative of President Chain Store (BVI) Holdings Ltd.: Chen, Jui-Tang 100.00
USD 134,603,000
Holdings Limited
Director Huang, Jui-Tien －－
Paid-in Capital
Chairman Representative of President Chain Store (Hong Kong) Holdings Ltd.: Huang, Jui-Tien 100.00
RMB 30,000,000
Beauty Wonder (Zhejiang) Trading Director Representatives of President Chain Store (Hong Kong) Holdings Ltd.: Kao, Shiow-Ling; － 100.00
Co., Ltd. Chang, Shih-Hsun
Supervisor Representative of President Chain Store (Hong Kong) Holdings Ltd.: Cheng, Yea-Yun － 100.00
President Chang, Shih-Hsun －－
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Shareholding
Company Title Name or Representative
Shares %
Paid-in Capital
Chairman Representative of President Chain Store (Hong Kong) Holdings Ltd.: Hsieh, Kuan-Hung 100.00
RMB 140,000,000
President Chain Store (Zhejiang) Ltd. Director Representatives of President Chain Store (Hong Kong) Holdings Ltd.: Huang, Jui-Tien; － 100.00
Wu, Yi-Lung
Supervisor Representative of President Chain Store (Hong Kong) Holdings Ltd.: Wu, Wen-Chi － 100.00
President Wu, Yi-Lung －－
Paid-in Capital
Chairman Representative of President Chain Store (Hong Kong) Holdings Ltd.: Liang, Shih-Wei 100.00
RMB 60,000,000
President Chain Store (Taizhou) Ltd. Director Representatives of President Chain Store (Hong Kong) Holdings Ltd.: Chang, Sung- － 100.00
Hong; Wu, Yi-Lung
Supervisor Representative of President Chain Store (Hong Kong) Holdings Ltd.: Wang, Yung-Yu － 100.00
President Wu, Yao-Ming －－
Paid-in Capital
Chairman Representative of President Chain Store (Hong Kong) Holdings Ltd.: Hsieh, Kuan-Hung 100.00
RMB 620,000,000
President Chain Store (Shanghai) Director Representatives of President Chain Store (Hong Kong) Holdings Ltd.: Huang, Jui-Tien; － 100.00
Ltd. Liang, Shih-Wei
Supervisor Representative of President Chain Store (Hong Kong) Holdings Ltd.: Wu, Wen-Chi － 100.00
President Liang, Shih-Wei －－
Paid-in Capital 100.00
Chairman Representative of President Chain Store (Hong Kong) Holdings Ltd.: Wu, Yi-Lung
USD 2,000,000
Shanghai President Logistics Co., Director Representatives of President Chain Store (Hong Kong) Holdings Ltd.: Chang, Sung- － 100.00
Ltd. Hong; Liang, Shih-Wei
Supervisor Representative of President Chain Store (Hong Kong) Holdings Ltd.: Wang, Yung-Yu － 100.00
President Chang, Sung-Hong －－
Paid-in Capital 100.00
Chairman Representative of Shanghai President Logistics Co., Ltd.: Lin, Hung-Chun
RMB 50,000,000
President Logistic ShanDong Co., Director Representatives of Shanghai President Logistics Co., Ltd.: Chang, Sung-Hong; Hu, Hao- － 100.00
Ltd. Chih
Supervisor Representative of Shanghai President Logistics Co., Ltd.: Cheng, Yea-Yun － 100.00
President Hu, Hao-Chih －－
Paid-in Capital 100.00
Ren Hui Holding Co., Ltd. Director Representatives of Ren-Hui Investment Corp.: Huang, Jui-Tien; Hsieh, Lien-Tang
USD 2,000,000
Paid-in Capital 45.00
Chairman Representative of Shandong Silver Plaza Co., Ltd.: Bu, Ting-Xian
RMB 60,000,000
Director Representatives of President Chain Store (Hong Kong) Holdings Ltd.:Lee, Tsung-Hsien; － 40.00
Lin, Hung-Chun
Shan Dong President Yinzuo Director Representative of Ren Hui Holding Co., Ltd.: Huang, Jui-Tien － 15.00
Commercial Limited
Director Representative of Shandong Silver Plaza Co., Ltd.: Hu, Guod-Dong － 45.00
Supervisor Representative of President Chain Store (Hong Kong) Holdings Ltd.: Cheng, Yea-Yun － 40.00
Supervisor Representative of Shandong Silver Plaza Co., Ltd.: Wei, Dong-Hai － 45.00
President Lin, Hung-Chun －－
Paid-in Capital
Chairman Representative of PCSC (China) Drugstore Limited: Hsieh, Kuan-Hung 100.00
RMB 100,000,000
President Cosmed Chain Store (Shen Director Representatives of PCSC (China) Drugstore Limited: Chang, Sung-Hong; Wu, Yi-Lung － 100.00
Zhen) Co., Ltd.
Supervisor Representative of PCSC (China) Drugstore Limited: Cheng, Yea-Yun － 100.00
President Chang, Sung-Hong －－
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Shareholding
Company Title Name or Representative
Shares %
Chairman Representative of Mech-President Corp.: Lee, Tsung-Hsien 960,000 60.00
Director Representatives of Mech-President Corp.: Chen, Yuen-Lung; Kuo, Wen-Sheng; Huang, 960,000 60.00
Jui-Feng; Lin, Min-Yun
Tong Ching Corporation Director Lin, Ting-Song 80,000 5.00
Supervisor Huang, Chia-Yi 240,000 15.00
President Lin, Ting-Song －－
Paid-in Capital
Director Representative of President Pharmaceutical Corp.: Chang, Shih-Hsun 100.00
President Pharmaceutical (Hong USD 5,936,000
Kong) Holdings Limited Director Huang, Jui-Tien －－
President Huang, Jui-Tien －－
Chairman Representative of President Pharmaceutical (Hong Kong) Holdings Limited: Huang, Jui- Paid-in Capital 100.00
Tien RMB 39,157,000
President (Shanghai) Health Product Director Representatives of President Pharmaceutical (Hong Kong) Holdings Limited: Kao, － 100.00
Shiow-Ling; Chai, Chia-Feng; Chang, Shih-Hsun
Trading Company Ltd.
Supervisor Representative of President Pharmaceutical (Hong Kong) Holdings Limited: Cheng, Yea- － 100.00
Yun
President Chai, Chia-Feng －－
Uni-President Logistics (BVI) Director Representative Uni-President Cold-Chain Corp.: Chen, Jui-Tang Paid-in Capital 100.00
Holdings Limited USD 2,991,000
Paid-in Capital
Chairman Representative of Uni-President Logistics (BVI) Holdings Limited: Hsieh, Kuan-Hung 50.00
RMB 40,000,000
Zhejiang Uni-Champion Logistics Director Representative of Uni-President Logistics (BVI) Holdings Limited: Yao, Chieh-Hsiang － 50.00
Development Co., Ltd. Director Representative of Shanghai President Logistics Co., Ltd.: Chang, Sung-Hong － 50.00
Supervisor Representative of Uni-President Logistics (BVI) Holdings Limited: Cheng, Yea-Yun － 50.00
President Tsai, Kuang-Wen －－
Chairman Representative of Retail Support International Corp.: Huang, Chao-Sai 2,871,300 51.00
Director Representatives of Retail Support International Corp.: Chiang, Ming-Tao; Ho, Hsin-Chia 2,871,300 51.00
Retail Support Taiwan Corp. Director Representatives of FSG Co.: Lin, Ming-Fang; Huang, Wei-Yu 1,655,220 29.40
Supervisor Representatives of Grand Fountain Co., Ltd.: Cheng, Yueh-Kuei; Yang, Chung-Chin 1,103,480 19.60
President Yuan, Shou-Chung －－
Chairman Representative of Retail Support International Corporation: Huang, Chao-Sai 9,481,500 49.00
Director Representative of Retail Support International Corporation: Chiang, Ming-Tao 9,481,500 49.00
President Logistics International Director Representative of Uni-President Cold-Chain Corp.: Yao, Chieh-Hsiang 4,837,500 25.00
Corp.
Supervisor Representative of Wisdom Distribution Service Corp.: Cheng, Horng-Jun 3,870,000 20.00
President Wu, San-Sian －－
Chairman Representative of President Logistics International Corp.: Huang, Chao-Sai 26,670,000 100.00
Chieh Shun Logistics International Director Representative of President Logistics International Corp.: Yao, Chieh-Hsiang; Wu, San-Sian 26,670,000 100.00
Corp.
Supervisor Representative of President Logistics International Corp.: Cheng, Horng-Jun 26,670,000 100.00
President Wu, San-Sian －－
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Consolidated Business Reports of Affiliated Companies

7.2 The Financial Position and Operation Results of Affiliated Companies

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Dec. 31, 2020/ Unit: NT1,000
Company Paid-in Total Assets Total Shareholders’ Operating Operating Income Net Income(Loss) EPS (NT$) Income (Loss)Net Operating Activities
Capital Liabilities Equity Revenue
(Loss) (After tax) (After tax) (Before tax) Cash flow
President Chain Store (BVI) Holdings Ltd. 488,688 25,205,189 103,075 25,102,115 0 ( 108,894 ) ( 140,337 ) - ( 140,337 ) 290,705
PCSC (China) Drugstore Limited 270,161 72,735 26 72,710 0 ( 162 ) 1,587 - 1,587 ( 162 )
Uni-Wonder Corporation 356,378 9,173,295 8,089,596 1,083,699 11,223,109 773,065 645,759 18.12 799,324 2,461,149
President Drugstore Business Corp. 785,200 8,147,550 6,702,247 1,445,303 11,811,481 205,180 287,519 3.66 359,741 1,205,148
ICASH Corporation 700,000 2,378,076 1,797,243 580,833 463,849 ( 3,155 ) 14,687 0.21 14,687 95,448
President Lanyang Art Corporation 20,000 27,422 2,426 24,996 0 ( 174 ) ( 16 ) ( 0.01 ) ( 16 ) 14
Cold Stone Creamery Taiwan Ltd. 122,444 174,698 151,519 23,179 412,595 18,123 17,591 1.44 17,591 41,086
Wisdom Distribution Service Corp. 108,474 2,962,352 2,446,056 516,295 3,332,832 377,566 306,530 28.26 378,811 652,441
21 Century Co., Ltd. 100,000 489,831 357,962 131,869 1,303,594 48,276 43,239 4.32 51,198 78,574
Uni-President Oven Bakery Corp. 65,120 212,720 304,229 ( 91,509 ) 266,872 ( 49,513 ) ( 49,243 ) ( 7.56 ) ( 49,243 ) 1,632
President Chain Store Tokyo Marketing 27,077 175,687 85,134 90,553 594,381 10,208 8,699 887.70 12,510 21,609
Corporation
Capital Marketing Consultant Corp. 25,000 201,926 123,217 78,709 331,510 55,387 44,478 17.79 55,598 39,541
President Being Corp. 15,000 528,439 559,294 ( 30,856 ) 514,861 ( 10,582 ) 2,085 1.39 2,085 87,507
President Chain Store Corporation Insurance 15,000 56,376 23,106 33,270 79,525 16,593 15,373 10.25 16,771 22,704
Brokers Co., Ltd.
Ren-Hui Investment Corp. 65,000 64,613 47 64,566 0 ( 271 ) ( 9,630 ) ( 1.48 ) ( 9,630 ) 3,664
Uni-President Superior Commissary Corp. 539,110 2,483,299 1,898,327 584,972 4,059,142 47,208 45,327 0.08 58,704 221,935
Q-ware Systems & Services Corp. 281,042 2,085,825 1,648,066 437,759 959,626 103,763 85,373 3.04 106,394 90,383
President Information Corp. 299,006 1,172,597 718,789 453,808 1,544,769 104,322 86,576 2.90 108,121 274,097
Mech-President Corp. 690,713 3,533,294 2,609,469 923,825 7,937,535 162,769 149,825 2.17 186,243 571,766
President Pharmaceutical Corp. 300,000 1,317,387 584,808 732,579 1,583,521 152,079 113,382 3.78 140,813 128,759
President Transnet Corp. 1,478,520 8,644,995 5,982,362 2,662,634 12,457,238 1,080,686 904,170 6.12 1,131,020 1,318,732
President Collect Service Corp. 15,000 1,895,462 1,762,074 133,388 613,902 125,725 104,121 69.41 130,152 1,044,676
Uni-President Department Store Corp. 400,000 4,920,504 4,162,077 758,427 1,339,834 106,679 224,008 5.60 280,010 528,671
Uni-President Cold-Chain Corp. 715,583 7,480,129 5,983,160 1,496,969 3,703,886 438,527 389,793 5.45 480,206 779,234
Duskin Serve Taiwan Co., Ltd. 200,000 831,686 423,850 407,836 1,307,517 194,086 160,701 8.04 200,316 214,400
Books.com. Co., Ltd. 199,900 2,138,025 1,313,402 824,623 6,881,266 491,173 409,682 20.49 511,460 483,009
Retail Support International Corporation 257,200 12,781,503 12,130,110 651,392 3,170,956 186,070 219,575 8.54 251,002 603,891
President Chain Store (Labuan) Holdings Ltd. 830,562 2,386,355 57,111 2,329,244 0 ( 353 ) ( 133,352 ) - ( 122,759 ) 60,309
Philippine Seven Corp. 448,933 17,243,921 13,014,036 4,229,885 25,909,008 ( 330,255 ) ( 243,726 ) ( 0.32 ) ( 331,442 ) 2,693,337
Convenience Distribution Inc. 26,683 495,902 351,993 143,909 1,292,051 ( 15,645 ) ( 8,610 ) ( 1.91 ) ( 8,033 ) 83,205
Store Sites Holding, Inc. 23,718 38,387 5,402 32,986 2,760 1,479 1,174 29.35 1,713 1,734
President Chain Store (Hong Kong) Holdings 3,833,493 3,808,483 345 3,808,139 0 ( 1,301 ) ( 247,729 ) - ( 247,729 ) 55,494
Limited
Beauty Wonder (Zhejiang) Trading Co., Ltd. 130,898 59,845 24,948 34,897 10,309 ( 42,089 ) ( 41,327 ) - ( 41,327 ) ( 1,676 )
President Chain Store (Zhejiang) Ltd. 610,859 518,474 345,208 173,267 387,006 ( 109,662 ) ( 118,972 ) - ( 118,972 ) ( 23,027 )
President Chain Store (Taizhou) Ltd. 261,797 424,218 41,411 382,807 227,356 28,893 26,613 - 35,521 70,610
President Chain Store (Shanghai) Ltd. (Note1) 2,705,234 1,388,476 943,458 445,018 1,759,049 ( 177,986 ) ( 180,256 ) - ( 180,256 ) 144,421
Shanghai President Logistic Co., Ltd. 56,960 890,646 368,599 522,046 688,216 26,571 37,465 - 46,578 96,114
President Logistic ShanDong Co., Ltd. 218,164 263,617 58,017 205,600 118,772 6,685 8,942 - 8,942 43,341
Ren Hui Holding Co., Ltd. 56,960 49,342 26 49,316 0 ( 132 ) ( 13,354 ) - ( 13,354 ) ( 64 )
Shan Dong President Yinzuo Commercial 261,797 2,334,378 2,099,303 235,075 3,470,827 ( 154,587 ) ( 87,492 ) - ( 87,583 ) 348,399
Limited
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Company Paid-in Total Assets Total Shareholders’ Operating Operating Income Net Income(Loss) EPS (NT$) Income (Loss)Net Operating Activities
Capital Liabilities Equity Revenue
(Loss) (After tax) (After tax) (Before tax) Cash flow
President Cosmed Chain Store (Shen Zhen) 436,328 81,985 9,748 72,237 67,597 1,176 1,751 - 1,844 8,045
Co., Ltd.
Tong Ching Corporation 16,000 60,679 23,902 36,777 176,657 8,522 6,887 4.30 8,567 12,227
President Pharmaceutical (Hong Kong) 21,805 42,196 3,224 38,972 11,697 ( 4,268 ) ( 21,300 ) - ( 21,300 ) ( 19,078 )
Holdings Limited
President (Shanghai) Health Product Trading 170,854 37,756 25,635 12,122 34,805 ( 17,899 ) ( 18,127 ) - ( 18,127 ) ( 87,538 )
Company Ltd.
Uni-President Logistics (BVI) Holdings Limited 85,184 108,984 14 108,970 0 ( 120 ) 9,683 - 9,683 ( 102 )
Zhejiang Uni-Champion Logistics Development 174,531 421,298 203,353 217,945 422,586 28,585 19,608 - 26,474 40,368
Co., Ltd.
Retail Support Taiwan Corp. 56,300 251,440 98,750 152,690 398,553 51,971 47,846 8.50 58,694 107,892
President Logistics International Corp. 193,500 1,588,677 1,225,712 362,965 3,362,766 23,541 87,088 4.50 98,273 222,109
Chieh Shun Logistics International Corp. 266,700 1,168,110 829,365 338,745 1,925,964 50,636 42,467 1.59 52,976 221,209
Shanghai Cold Stone Ice Cream Corp.(Note2) 0 0 0 0 0 6,263 18,383 - 18,383 ( 403 )
Bejing Bokelai Customer Co.(Note2) 0 0 0 0 0 0 ( 25 ) - ( 25 ) 0
Books.com (BVI) Ltd.(Note2) 0 0 0 0 0 0 ( 30 ) - ( 30 ) ( 104 )
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Note 1: President Chain Store (Shanghai) Ltd. increased the capital in September 2020.

Note 2: Shanghai Cold Stone Ice Cream Corp., Bejing Bokelai Customer Co. and Books.com (BVI) Ltd. have been cancelled the registration in 2020.

The exchange rates are used as follows:

(A) Spot exchange rate on 31 December, 2020 used for Balance Sheet: RMB ： NTD=1 ： 4.36328 ； USD ： NTD=1 ： 28.48000 ； PHP ： NTD =1 ： 0.59296

HKD ： NTD=1 ： 3.67337 ； JPY ： NTD =1 ： 0.27630

(B) Average exchange rate of 2020 used for Statement of Comprehensive Income and Cash Flows: RMB ： NTD=1 ： 4.28148 ； USD ： NTD=1 ： 29.53318 ； PHP ： NTD =1 ： 0.59515 HKD ： NTD=1 ： 3.80776 ； JPY ： NTD =1 ： 0.27690

2020 ANNUAL REPORT 227

PRESIDENT CHAIN STORE CORPORATION

AI assistant

PCSC — Annual Report 2020

52232_rns_2021-08-02_0cd88b03-1cc8-4271-b46b-c327659f9e41.pdf

PRESIDENT CHAIN STORE CORPORATION

CONTENT

02 Corporate Overview

1. Organization Chart

54 04 Fund Raising

58 05 Operating Highlights

06 Financial Information

07 Financial Status, Financial Performance and

Risk Management

08 Specific Notes

Utilize intelligent technology Grasp the future

Develop diversified lifestyle stores Create enjoyable and unique experiences

Provide complete and convenient services Satisfy comprehensive demands

Offer safe and high quality food Build a social kitchen

Integrate member program Establish digital service platform

Overall Performance (alone)

Total No. of Stores & Revenue

Gross Profit & Operating Profit

Net Income & EPS

1 Letter to Shareholders

Dear Shareholders,

Operating Performance

Social Responsibility

Business Prospects

2 Corporate Overview

1.Date of Incorporation: June 10, 1987

2.Company History

3 Corporate Governance

1. Organization

(1) Organization Chart

(2) Responsibilities of Key Groups:

2. Information on Directors and Management of the Company and Various Departments and Branches

(1) Information on directors:

1. Information on directors:

2. Independence and Professional Expertise of Board Members:

(2) Information on the company president, senior vice presidents, vice presidents, and division heads:

(3) Remuneration paid to Company directors, president, and senior vice presidents over the past year 1. Directors and Independent Directors remuneration:

2. President and senior vice president remuneration:

3. Implementation of Corporate governance

(1) Operations of the Board of Directors:

Corporate Governance

(2) Implementation of conducting evaluations of the Board:

(3) Operations of the Audit Committee:

Note 1: Director Diversity

Note 2: External Auditor Independence Evaluation Standards

2020 Director Continuing Education

(5) Composition, responsibilities, and operation of the Remuneration Committee:

1. Remuneration Committee members

(6) Implementation of Corporate Social Responsibility

(7) Ethical corporate management at PCSC and related implementation:

(8) Company procedures for processing material information:

(9) Status of internal control system implementation:

(14) Certificates Earned by Employees Involved in Financial Information Transparency:

4. Independent auditors

(1) Audit fees

2. Successor CPAs

5. Net Change in shareholdings and in shares pledged by directors, management, and shareholders holding more than a 10% share in the Company

(2) Stock transfers to related parties: None

6. Relationships between the Company’s Top 10 largest shareholders and their shareholding percentages:

7. PCSC, Company directors, managements, and directly or indirectly owned subsidiaries’ ownership of shares in affiliated enterprises:

4 Fund Raising

1. Capital and shares

(1) Source of Capital:

a. Shares issued:

b. Capital and shares:

(2) Shareholder structure:

(3) Distribution of shareholders:

(4) Major shareholders:

(5) Share prices, net value, earnings, dividends, and other relevant information for the last two years:

(6) Dividend policy and implementation:

1. Dividend policy

(8) Employee compensation and director remuneration:

3. Status of capital utilization plan

5 Operating Highlights

1. Business activities

(1) Business scope

2. Revenues and their proportion of overall business over the past two years

PCSC Annual Report 2020