TSE: 2855

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2024 General Shareholders’ Meeting Meeting Agenda

Physical shareholders’ meeting June 27, 2024 at 9:00 a.m. No.8, Dongxing Road, SongShan District, Taipei City, Taiwan (R.O.C.)

Translation – In case of any discrepancy between the Chinese and English versions, the Chinese version shall prevail.

		Page
1	Meeting Agenda of 2024 General Shareholders’ Meeting	3
2	Report Items	4
3	Items to be Adopted	4
4	Items for Discussion	5
5	Election item	6
6	Extraordinary Motions	12
7	Provisional Motions	12
8	Meeting Adjourned	12
Appendixes
I	2023 Business Report	13
II	2023 Audit Committee's Review Report	15
III	2023 Consolidated Financial Statements and Financial Statements	16
IV	2023 Earnings Distribution Proposal	38
V	Articles of Incorporation of President Securities Corp. (before amendment)	39
VI	Rules and Procedures of Shareholders’ Meeting of President Securities Corp.	44
VII	Rules for Governing the Election of Directors	56
VIII	Shareholdings of Directors	58

1. Meeting Agenda of 2024 General Shareholders’ Meeting

(1) Meeting convening method: Physical shareholders’ meeting
(2) Time: June 27 (Thu.), 2024 at 9:00 a.m.
(3) Venue: No.8, Dongxing Road, SongShan District, Taipei City, Taiwan (R.O.C)
(4) Agenda for the 2024 General Shareholders’ Meeting
1) Meeting called to order
2) Opening Remarks from the Chairman
3) Report Items
- i. 2023 Business Report
- ii. 2023 Audit Committee's Review Report
- iii. 2023 Remuneration of Employees and Directors
4) Items to be Adopted
- i. Adoption of the 2023 business report, consolidated financial statements and financial statements
- ii. Adoption of the Proposal for the 2023 earnings distribution
5) Items for Discussion
- i. Amendment to the Articles of Incorporation. Please proceed to discuss.
6) Election item
- i. To elect the 13th board of Directors of the company
7) Extraordinary Motions
- i. Discuss to release the directors from non-competing restrictions.
8) Provisional Motions
9) Meeting Adjourned

2. Report Items

(1) 2023 Business Report

Explanation: The Company’s Business Report for 2023, please see Appendix I (page 13~14)

(2) 2023 Audit Committee's Review Report

Explanation: For 2023 Audit Committee's Review Report, please see Appendix II (page 15)

(3) 2023 Remuneration of Employees and Directors

Explanation:

1) Comply with the Ordinance No. 10402413890(June 11, 2015) and the Ordinance No. 10402427800(October 15, 2015) issued by the Ministry of Economic Affair.
2) In accordance with Article 23 of the Company’s bylaws, the Company will distribute compensation to employees and the Directors from pre-tax profits. Where the company has pretax profits, the total value of funds to be distributed among employees shall not be less than 1.6% of pre-tax profits; while the total value of funds to be distributed among the Directors shall not be more than 2% of pre-tax profits. If the company has losses carried forward, compensation should only be paid to employees and Directors after funds have been set aside as reserve for such losses.
3) The proposal of 2023 Remuneration of Employees and Directors has been approved by the 15th meeting of the 5th Remuneration Committee and the 15th meeting of 12th Board of Directors. It is proposed that a total of NT$62,369,953 (2%) to be distributed to employees and NT$62,369,953 (2%) to be distributed to Directors in accordance with the allocation rules of the 2st meeting of the 12th Board of Directors. The above mentioned compensation will be in cash.

3. Items to be Adopted

■ Motion 1 (proposed by the Board of Directors)

Topic: Adoption of the 2023 business report, consolidated financial statements and financial statements Explanation:

(1) The 2023 consolidated financial statements and the financial statements have already been successfully audited by CPA Lin, Se-Kai and CPA Lo, Chiao-Sen of PricewaterhouseCoopers Taiwan.
(2) The business report, the consolidated financial statements and the financial statements have been reviewed by the Audit Committee and approved by the 15th Meeting of the Twelveth term Board of Directors (March 4, 2024)
(3) For the business report, the consolidated financial statements and the financial statements, please see Appendix I (page 13~14) and Appendix III (page 16~37).
Result:

■ Motion 2 (Proposed by the Board of Directors)

Topic: Adoption of the Proposal for the 2023 earnings distribution Explanation:

(1) The proposal for distribution of 2023 earnings are prepared in accordance with regulations and the Company’s Articles of Incorporation. Please refer to the 2023 Earnings Distribution Proposal as Appendix IV (page 38).
(2) The distributable earnings in this period are NT$1,928,652,642. This number is based on the unappropriated earnings of NT$5,323,972 at the beginning of the period, decreasing by NT$131,338,534 as a result of remeasurement of defined benefit plans and adjust to plus the aftertax net profit of NT$2,878,950,921 in 2023, and then setting aside legal reserve(10%) , special

reserve(20%). Proposed cash dividend is NT$1,921,697,373, which is equivalent to $1.32 per share. Upon the approval of Shareholders' Meeting, it is proposed that the Board of Directors be authorized to resolve the ex-dividend date.

(3) In the event that the shares outstanding changes, it is proposed that the Board of Directors be authorized to adjust the amount per share to be distributed to shareholders based on the number of actual shares outstanding on the record date for distribution. Dividends of less than $1 shall be transferred to the Company's Employee Benefit Council.

Result:

4. Items for Discussion

■ Item 1 (Proposed by the Board of Directors)

Topic：Amendment to the Articles of Incorporation. Please proceed to discuss.

Explanation:

(1) In respond to business adjustment, the company apply to abolish the following business – Concurrently provide trust-type discretionary investment service as a SICE (securities investment consulting enterprise). The business was approved by the 16 October 2023, Financial Supervisory Commission (FSC) Issued order No. Financial-Supervisory-Securities-SITC-1120355710.

(2) Please refer to the table as follows:

Comparison table of Amendments to” Articles of Incorporation”

Article		Amendment		Original Articles	Amendment Instructions
Article 2		The Company shall engage in the following business: 1. H301011, a securities dealer 2. H408011, an aid on futures transaction 3. H401011, a futures dealer 4. H105011, a trustee		The Company shall engage in the following business: 1. H301011, a securities dealer 2. H408011, an aid on futures transaction 3. H401011, a futures dealer 4. H105011, a trustee 5. H304011, a securities investment consulting enterprise	1. Business Adjustment. 2. The company applies to abolish the following business – Concurrently provide trust-type discretionary investment service as a SICE (securities investment consulting enterprise). The business has been approved by order No. Financial-Supervisory- Securities-SITC-1120355710 issued on October 16, 2023 by the Financial Supervisory Commission (FSC).
Article 26		These Articles were duly established on November 26, 1988 and the first amendment was approved on December 28, 1988; ------------;the thirty- second amendment on June 27, 2024.		These Articles were duly established on November 26, 1988 and the first amendment was approved on December 28, 1988; ------------; the thirty-first amendment on May 31, 2023. The effective date of Article 13, which were revised on May 31, 2023, is January 1, 2024.	1. Add the date of current amendment. 2. Delete the thirteenth amendment effective date.

Result:

5. Election item

 Item 1 (Proposed by the Board of Directors)

Topic: To elect the 13th board of Directors of the company Explanation:

(1) The term of the Company’s 12th board of directors shall expire on July 19, 2024. The 13th board of directors shall be elected during the general shareholders’ meeting of this year.
(2) In accordance with Article 13 of the Company’s bylaws, the Company shall have 12 directors, of which 4 shall be independent, 8 shall be non-independent. They shall serve a 3-year term (from their appointment at the shareholders’ meeting to be held on June 27, 2024, to June 26, 2027) and are eligible for reelection. Directors shall be elected from among the nominees listed in the roster of candidates by adopting candidate nomination system.
(3) Election-related matters shall be handled in accordance with the Company’s Rules Governing the Election of Directors.(refer to Appendix VII, page 56~57)
(4) Please cast your vote.

Information of Candidates Nominated for Directors

Title	Name	Education	Experience	Current Positions	Remarks	Serving as an independ ent director for three consecuti ve terms	Shares Held
Director	LIN, KUAN- CHEN	 National Taiwan Sport University	 Chairman of President Securities Corp.  Director of Taiwan Futures Exchange.  Director of President Futures Corp.  Director of President Securities (HK) Ltd./ President Wealth Management (HONG KONG) Ltd.  Director of JinYuan President Securities Ltd.  Chairman of Richness Cereal Trading Co., Ltd.  Director and President of Fonmau Cereal Industrial Co., Ltd.  Director of Q-WARE Systems & Services Corp.  Director of President Securities (BVI) Ltd.  Director of President Securities (Nominee) Ltd.  Director/ Vice Chairman/ General Manager of President Securities Corp.	 Chairman of President Securities Corp.  Director of Taiwan Futures Exchange.  Director of President Futures Corp.  Director of President Securities (HK) Ltd./ President Wealth Management (HONG KONG) Ltd.  Director of JinYuan President Securities Ltd.  Chairman of Richness Cereal Trading Co., Ltd.  Director and President of Fonmau Cereal Industrial Co., Ltd.  Director of Q-WARE Systems & Services Corp.	Kai Nan Investment Co., Ltd	N/A	42,253,212
Director	CHEN, KUO-HUI	 University of Strathclyde, MBA	 Senior Vice President of Uni-President Enterprises Corp.  Chairman of Kai Yu (BVI) Investment Co., Ltd.  Chairman of Tone Ren Enterprise Co., Ltd.  Director of President Securities Corp.  Director of President International Development Corp.  Director of Presicarre Corp.  Director of Uni-President China Holdings Ltd./ President Enterprises (China) Investment Co., Ltd./ Uni-President Hong Kong Holdings Limited/ Uni-President (Vietnam) Co., Ltd./ Uni-	 Senior Vice President of Uni-President Enterprises Corp.  Chairman of Kai Yu (BVI) Investment Co., Ltd.  Chairman of Tone Ren Enterprise Co., Ltd.  Director of President Securities Corp.  Director of President International Development Corp.  Director of Presicarre Corp.  Director of Uni-President China Holdings Ltd./ President Enterprises (China) Investment Co., Ltd./ Uni-President Hong Kong Holdings Limited/ Uni-President (Vietnam) Co., Ltd./	Kai Nan Investment Co., Ltd	N/A	42,253,212

			President (Singapore) Pte. Ltd.  Supervisor of Champ Green (Shanghai) Consulting Co., Ltd./ United Advisor Venture Management Co., Ltd.	Uni-President (Singapore) Pte. Ltd.  Supervisor of Champ Green (Shanghai) Consulting Co., Ltd./ United Advisor Venture Management Co., Ltd.
Director	LU, LI-AN	 Master of Business Administration/ Institute of Financial Management, National Sun Yat-sen University	 President & CEO / Vice President of Administration and Spokesperson of ScinoPharm Taiwan Ltd.  Director of President Transnet Corp.  Director of President Securities Corp.  Supervisor of Tong Kuan Enterprise Co., Ltd.  Supervisor of Taiwan Bio Industry Organization  Division Head of Treasury Division, Uni-President Enterprises Corp.  Vice President of IBT Securities Co., Ltd.  Assistant Manager of Taiwan International Securities Co., Ltd.	 President & CEO of ScinoPharm Taiwan Ltd.  Director of President Transnet Corp.  Director of President Securities Corp.  Supervisor of Tong Kuan Enterprise Co., Ltd.  Supervisor of Taiwan Bio Industry Organization	Kai Nan Investment Co., Ltd.	N/A	42,253,212
Director	LIU,	 Ph.D. in Finance,	 Senior Vice President/ Vice President of Uni-President	 Senior Vice President of Uni-President Enterprises Corp,	Kao Chuan	N/A	32,988,828
	TSUNG-YI	National Chung	Enterprises Corp, Business Integration Division	Business Integration Division	Investment
		Hsing University,	 Director of Presco Netmarketing, Inc.	 Director of Presco Netmarketing, Inc.	Co., Ltd.
		R.O.C.	 Director of President International Development Corp.	 Director of President International Development Corp.
		 MBA of	 Director of President Securities Corp.	 Director of President Securities Corp.
		National Taiwan	 Director of Presicarre Corp.	 Director of Presicarre Corp.
		University,	 Director of PAYUNi Co.,Ltd.	 Director of PAYUNi Co.,Ltd.
		R.O.C.	 Director of Kuang Chuan Dairy Co., Ltd./ Kuang Chuan Foods	 Director of Kuang Chuan Dairy Co., Ltd./ Kuang Chuan Foods
			Ltd./ Tait Marketing & Distribution Co., Ltd./ Champ Green	Ltd./ Tait Marketing & Distribution Co., Ltd./ Champ Green
			Capital Limited/ Yantai North Andre Juice Co., Ltd./ United	Capital Limited/ Yantai North Andre Juice Co., Ltd./ United
			Advisor Venture Management Ltd./ SMS Investment	Advisor Venture Management Ltd./ Shanghai Shunfeng
			Management Co., Ltd./ SMS Capital Co., Ltd./ SMS Capital	Restaurant Group Co., Ltd./ Huasui Tomato Investment
			Management Ltd./ Shanghai Shunfeng Restaurant Group Co.,	Company/ Woongjin Foods Co., Ltd./Daeyoung Foods Co.,
			Ltd./Huasui Tomato Investment Company/Woongjin Foods

			Co., Ltd./Daeyoung Foods Co., Ltd. /Uni-President(Korea) Co.,	Ltd. /Uni-President(Korea) Co., Ltd./ Changhua County Chang
			Ltd./ Changhua County Chang Chun-Ya Private Social Welfare	Chun-Ya Private Social Welfare Charity Foundation
			Charity Foundation	 Chairman of United Advisor Venture Management Ltd.
			 Chairman of United Advisor Venture Management Ltd.	 President of Champ Green (Shanghai) Consulting Co., Ltd.
			 President of ChampGreen(Shanghai)ConsultingCo.,Ltd.
Director	TENG,	 Ph.D., University	 Chairman of Canking Investment Co., Ltd.	 Chairman of Canking Investment Co., Ltd.	Canking	N/A	17,947,517
	WEN- HWI	of San Francisco	 Director of President Securities Corp.	 Director of President Securities Corp.	Investment
		 Master, Harvard	 Director of Cayenne Entertainment Technology Co., Ltd.		Co., Ltd.
		University
		 MBA, George
		Washington
		University
Director	LEE, CHI-	 Department of	 Director of Hui Tung Investment Co., Ltd.	 Director of Hui Tung Investment Co., Ltd.	Hui Tung	N/A	10,819,517
	MING	International	 Vice Chairman of Hui Tung Enterprise Corp.	 Vice Chairman of Hui Tung Enterprise Corp.	Investment
		Business	 Chairman of Chieforce Corp.	 Chairman of Chieforce Corp.	Co., Ltd.
		Soochow	 Director of President Securities Corp.	 Director of President Securities Corp.
		University	 Director of HHB Geriatric Healthcare Corp./ Japan Asia	 Director of HHB Geriatric Healthcare Corp./ Japan Asia
			Specialities Co., Ltd./ Zhao Tung Corp./ Chao Tung Corp./ Union	Specialities Co., Ltd./ Zhao Tung Corp./ Chao Tung Corp./
			Chinese Corp./ Point Deco Co., Ltd./ Huai Ren International Co.,	Union Chinese Corp./ Point Deco Co., Ltd./ Huai Ren
			Ltd.	International Co., Ltd.
			 Supervisor of Chang Kun Housing Corp./ Chang Kun Investment	 Supervisor of Chang Kun Housing Corp./ Chang Kun
			Corp.	Investment Corp.
Director	LEE, SHU-	 Ming Chuan	 Consultant of China F.R.P. Corporation	 Consultant of China F.R.P. Corporation	N/A	N/A	5,000
	FEN	University	 Employee of Kao Ying-Shih Chinese Culture Collection	 Employee of Kao Ying-Shih Chinese Culture Collection
			Educational Foundation of Kaohsiung	Educational Foundation of Kaohsiung
			 Director of President Securities Corp.	 Director of President Securities Corp.
			 Auditing Manager of Eternal Materials Co., Ltd.
			 Accounting Assistant Manager of Eternal Materials Co., Ltd.
			 DeputySection Manager of Business section of Eternal

			Materials Co., Ltd.
Director	JUANG,	 Golden Gate	 Vice President / Assistant Vice President of Tainan Spinning Co.,	 Vice President of Tainan Spinning Co., Ltd.	N/A	N/A	3,182
	JING-YAU	University, MBA	Ltd.	 President of T.S. Retail and Distribution Co., Ltd.
		in Finance	 President of T.S. Retail and Distribution Co., Ltd.	 Chairman of United Investment Pte. Ltd.
			 Chairman of United Investment Pte. Ltd.	 Chairman of United Investment Pte. Ltd.(Taipei)
			 Chairman of United Investment Pte. Ltd.(Taipei)	 Director of President Securities Corp.
			 Director of President Securities Corp.	 Director of NANTEX Industry Co., Ltd.
			 Director of NANTEX Industry Co., Ltd.	 Director of Nan Fan Housing Co., Ltd. / Q-Ware Systems &
			 Director of Nan Fan Housing Co., Ltd. / Q-Ware Systems &	Services Corp.
			Services Corp.	 Director of T.S. Retail and Distribution Co., Ltd.
			 Director of T.S. Retail and Distribution Co., Ltd.	 Director of Eten Technologies Inc./ Universal Venture Capital
			 Director of Eten Technologies Inc./ Universal Venture Capital	Investment Corp.
			Investment Corp.
			 Director of Nan Fan Development Co., Ltd.
Independe	PAI, CHUN-	 Ph.D. in Law,	 Vice Chairman of China Petrochemical Development	 Vice Chairman of China Petrochemical Development	N/A	NO	0

nt Director	NAN	Chinese Culture	Corporation	Corporation
		University	 Director of BES Engineering Corp.	 Director of BES Engineering Corp.
			 Director of Wei Lih Food Industrial Co., Ltd.	 Director of Wei Lih Food Industrial Co., Ltd.

			 Director of Veda Advanced Technology Ltd.	 Director of Veda Advanced Technology Ltd.
			 Independent Director of President Securities Corp.	 Independent Director of President Securities Corp.
			 Chairman of The First Leasing Corp.
			 Chairman of Bo-Meng Investment Co., Ltd.
			 Director of Taivex Therapeutics Corporation
			 Independent Director of Megaforce CompanyLtd.
Independe	SONG,	 The University	 Independent Director of President Securities Corp.	 Independent Director of President Securities Corp.	N/A	NO	0

nt Director	YUNG-	of Iowa, MBA	 Supervisor of Zhi Nong Green Power Investment Co., Ltd.	 Supervisor of Zhi Nong Green Power Investment Co., Ltd.
	FONG		 Consultant / Partner of FCC Partners Inc.	 Consultant / Partner of FCC Partners Inc.
			 Partner of Oasis New Energy Inc.	 Partner of Oasis New Energy Inc.
			 Chief Strategy Officer of Max Pro Capital Acquisition Company
			 Consultant of Max Pro Capital Investments Co.,Ltd.

			 Partner of Max Pro Venture Capital Company
			 Venture Partner of Leadsun Investment & Asset Management
			Ltd.
			 Executive Vice President and CIO of Chunghwa Telecom Co.,
			Ltd.
			 General Manager of Chunghwa Investment Company
			 Chairman of CIMB Advisory, Taiwan
			 Vice Chairman of ABN AMRO Bank,Taiwan
Independe	HORNG,	 Department of	 Independent Director of Himax Technologies, Inc.	 Independent Director of Himax Technologies, Inc.	N/A	NO	0
nt Director	YUAN-	Economics,	 Independent Director of President Securities Corp.	 Independent Director of President Securities Corp.
	CHUAN	Soochow	 Vice President of Finance Division of China Steel Corporation
		University	 Chairman of Gains Investment Corp.
Independe	YANG, HUI-	 Department of	 General Manager of Just A Investment Co., Ltd.	 General Manager of Just A Investment Co., Ltd.	N/A	NO	0
nt Director	CHU	Banking and	 Independent Director of Poindus Systems Corp.	 Independent Director of Poindus Systems Corp.
		Insurance, Ming	 Managing Director / CIB Taiwan Senior CEO / Taipei Branch
		Chuan	General Manager / Representative of Natixis, Taiwan
		University	 IBD Taiwan Region CEO / Director/ IBD Director of Barclays,
			Taiwan / HK

6. Extraordinary Motions

 Motion 1 (proposed by the Board of Directors)

Topic: Discuss to release the directors from non-competing restrictions. Explanation:

(1) Pursuant to Article 209 of the Company Act, it is proposed to request the General Shareholders’ Meeting to release the non-competition restrictions on the 13th director Mr. Lin, Kuan-Chen, who was appointed as the director of the joint venture Jin Yuan President Securities Corporation Limited. Result:

7. Provisional Motions

8. Meeting Adjourned

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APPENDIX I

2023 Business Report

[Macroeconomic Environment and Business Plan]

In the global economic landscape of 2023, various events such as the liquidity crisis in regional banks in the United States, defaults in the Chinese real estate market, the US-China tech war, and conflicts such as the Russia-Ukraine war and Israel-Palestine Conflict occurred. While these events affected short-term stock market performance, with the conclusion of interest rate hikes in major countries and the gradual return of hot money to emerging Asia, inflows into AI stocks, and the resurgence of buying from domestic and foreign investors, the Taiwan Stock Exchange Weighted Index fluctuated upward from its intraday low of 14,001.97 points at the beginning of the year to close the year at 17,930.81 points, marking an overall increase of 3,793.12 points, or approximately 26.83% for the year. Our company's management team is committed to achieving long-term stable profitability. In the face of changes in economic and financial conditions, each business unit seeks opportunities to generate profits, respond quickly, and rigorously control position risks while flexibly adjusting investment strategies.

[Implementation and Results]

In terms of brokerage business, the Taiwan Stock Exchange Weighted Index saw a significant increase of 3,793.12 points in the fiscal year of 2023. The market's average daily trading volume was NT$359.041 billion, representing an increase of approximately 17.66% compared to the volume of NT$305.163 billion in 2022. The Company maintained an average market share of 2.86% throughout the year, ranking 8th in the market. Brokerage business income served as a stable source of revenue and profitability for the Company. In the future, we will continue to focus on providing high-quality services and offering a diverse range of products to meet the needs of our customers. We will align with the Company's "Developing Digital Finance to Reduce Carbon Footprint" sustainable environmental policy and strive to create a customer-centric service model. Additionally, we will continue to enhance our presence on social media platforms to increase brand awareness, aiming to maintain stable profitability and increase market share. In 2023, our underwriting business participated in a total of 38 cases, with a combined underwriting amount of NT$3.87 billion. We actively pursued clients with promising industry prospects and adhered strictly to credit risk principles when selecting underwriting cases. Our aim was to assist companies in listing on the stock exchange or OTC market and raising funds. We also focused on risk management for underwriting positions. By maintaining a lean team and pursuing high-quality clients, we continuously sought business opportunities and expanded our operations through pre-layout on venture capital platforms. In terms of proprietary trading business, our proprietary trading team constructs diversified investment portfolios across multiple markets through solid research. We carefully select value stocks with niche opportunities and employ various hedging tools while rigorously controlling position risks. As a result, our operational performance remains robust and outstanding. Regarding financial product business, we leverage the strengths of our proprietary trading team to continuously introduce a diverse range of financial products, offering investors more diversified choices.

[Profitability Analysis and Operating Income/Expenditure in Budget Execution]

In 2023, our company actively expanded various business operations under the leadership of a highquality management team. With prudent operational experience and rigorous risk control mechanisms, we maintained stable profitability. Our annual revenue was approximately NT$8.679 billion, with expenses and costs totaling NT$6.24 billion. Other operating income and expenses amounted to NT$681 million, resulting in a net profit after tax of NT$2.879 billion and earnings per share of NT$1.98. Our ROA ratio was 3.70%, and our ROE ratio was 9.32%. In 2024, we will continue to follow past practices,

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effectively grasp the overall direction of the Company's business operations and budget execution, and achieve various budget targets through flexible and agile management.

[Future Operations]

Looking ahead to 2024, although the Federal Reserve's interest rate policy has shifted to neutral, the timing of interest rate cuts remains uncertain. Additionally, geopolitical risks persist, leading to increased investment volatility and uncertainty. In the face of a highly variable global economic and political environment, the Company will leverage the strengths of our operational team to seize market opportunities. We will employ rigorous risk management practices to pursue long-term stable profitability, and through resource sharing and information exchange, we aim to enhance the breadth and depth of cooperation among various business units, maximizing the synergies of our team efforts. In addition to developing digital finance, we are committed to achieving our low-carbon transformation goals. We have formulated action plans for continuous improvement in environmental energy, fair customer treatment, and fulfilling corporate social responsibility. We adhere to the principles of ESG and implement internal controls and corporate governance to create sustainable value for the Company's growth.

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APPENDIX II

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Audit Committee’s Review Report

To: The General Meeting of Shareholders as of year 2024

The Board of Directors has prepared the Company’s 2023 Business Report, Financial Statements, and Earnings Distribution Plan. The financial statements have been audited and certified by Se-Kai, Lin and Chiao-Sen, Lo of PricewaterhouseCoopers Certified Public Accountants, who issued an auditors’ report. The aforementioned Business Report, Financial Statements, and Earnings Distribution Plan have been reviewed and determined to be fairly presented as stated by the Audit Committee members. According to Article 14-4 of the Securities and Exchange Act and Article 219 of the Company Law, we hereby submit this report.

President Securities Corporation Convener of Audit Committee:

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April 25, 2024

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APPENDIX III

INDEPENDENT AUDITORS’ REPORT TRANSLATED FROM CHINESE

PWCR23003601

To the Board of Directors and Shareholders of PRESIDENT SECURITIES CORPORATION

Opinion

We have audited the accompanying consolidated balance sheets of President Securities Corporation and subsidiaries (the “Group”) as at December 31, 2023 and 2022, and the related consolidated statements of comprehensive income, of changes in equity and of cash flows for the years then ended, and notes to the consolidated financial statements, including a summary of significant accounting policies.

In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the consolidated financial position of the Group as at December 31, 2023 and 2022, 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 Firms, and Regulations Governing the Preparation of Financial Reports by Futures Commission Merchants, and the International Financial Reporting Standards, International Accounting Standards, IFRIC Interpretations, and SIC Interpretations that came into effect as endorsed by the Financial Supervisory Commission.

Basis for Opinion

We conducted our audits in accordance with the Regulations Governing Financial Statement Audit and Attestation Engagements of Certified Public Accountants and Standards on Auditing of 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 Accountant of the Republic of China, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that 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 judgement, were of most significance in our audit of the Group’s 2023 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 2023 consolidated financial statements are stated as follows:

Fair value measurement of unlisted stocks without active market

Description

Please refer to Note 4(8) for the accounting policies on unlisted stocks without active market (shown as “financial assets at fair value through other comprehensive income”) and Note 5(2) for details of critical accounting judgements, estimates and assumption uncertainty. As at December 31, 2023, the unlisted stocks without active market held by the Group totaled 1,168,288 thousand New Taiwan Dollars and were shown as “financial assets at fair value through other comprehensive income” (Level 3 fair value).

Due to the lack of an active market, the fair value of the unlisted stocks held by the Group was determined using valuation method. Management measured their fair value by using comparable listed companies in the market approach. The main assumptions of the market approach are calculated based on the latest related parameters of comparable listed companies in similar industries and considering discounts on market liquidity or assessment of risk.

Above-mentioned estimation of fair value involves various assumptions and material unobservable inputs, which has high uncertainty and relies on the subjective judgement of management. Any changes in

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judgements and estimates may affect the ultimate result of accounting estimates and have an impact on the financial statements of the Group. Thus, we have included the fair value measurement of unlisted stocks without active market as a key audit matter in our audit.

How our audit addressed the matter

We performed the following audit procedures on the above key audit matter:

Obtained an understanding and assessed policy documents, internal control system, fair value measurement models and approval processes that are related to fair value measurement of unlisted stocks;
Ascertained whether the measurement methods used by the management is commonly used by the industry;
Assessed the reasonableness of parameter of similar companies used by management;
Examined inputs and calculation formulas used in valuation models and agreed such data to supporting documents.

Impairment assessment of investments accounted for under the equity method

Description

Please refer to Note 4(14) for accounting policies on investments accounted for under the equity method and its impairment, Note 5(2) for the uncertainty of accounting estimates and assumptions applied on asset impairment, and Note 6(11) for details of investments accounted for under the equity method.

The Group held 42.49% of equity of Uni-President Asset Management Corp. which was accounted for under the equity method, and the excess of the carrying amount over the share of the investee company’s net assets is mainly goodwill. As of December 31, 2023, the amount was 797,207 thousand New Taiwan Dollars. Impairment assessment is based on the expected future cash flow of the investee, discounted at an appropriate discount rate, to measure the recoverable amount of the cash generating unit.

The recoverable amount of the investee is based on its expected future cash flows which involve multiple estimates and assumptions on discount rate and financial forecast. These are subjective judgements, have a high degree of uncertainties, and are material to the recoverable amount. Thus, we consider the impairment assessment of investments accounted for under the equity method as one of the matters of most significance to our audit.

How our audit addressed the matter

We performed the following audit procedures on the above key audit matter:

Obtained the impairment assessment report prepared by an external valuation expert who was commissioned by the management and reviewed the achievement of the past financial forecast to assess its execution;
Assessed the reasonableness of expected future cash flows, discount rate and other significant assumptions applied in the cash flow model;
Inspected valuation model parameters, formula setting and the accuracy of calculation.

Other matter – Parent company only financial reports

We have audited and expressed an unqualified opinion on the parent company only financial statements of President Securities Corporation, as at and for the years ended December 31, 2023 and 2022.

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 Firms, Regulations Governing the Preparation of Financial Reports by Futures Commission Merchants, and the International Financial Reporting Standards, International Accounting Standards, IFRIC Interpretations, and SIC Interpretations that came into effect as endorsed by the Financial Supervisory Commission, and for such internal control as management determines is necessary to enable the preparation of consolidated financial statement that are free from material misstatement, whether due to fraud or error.

~17~

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 Group’s financial reporting process.

Auditors’ 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 auditors’ report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Standards on Auditing of 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 Standards on Auditing of the Republic of China, we exercise professional judgment and professional skepticism throughout the audit. We also:

Identify and assess the risks of material misstatement of 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 control.
Obtain an understanding of internal control 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 Group’s internal control.
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 auditors’ 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 auditors’ 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 control that we identify during our audit.

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 consolidated financial statements of the current period and are

~18~

therefore the key audit matters. We describe these matters in our auditors’ report unless law or regulation precludes 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.

Lin, Se-Kai

Independent Auditors

Lo, Chiao-Sen

For and on behalf of PricewaterhouseCoopers, Taiwan March 4, 2024

--------------------------------------------------------------------------------------------------------------------------------------------------------The accompanying consolidated financial statements are not intended to present the financial position and finance performance 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 independent auditors’ report are not intended for use by those who are not informed about the accounting principles or the Standards on Auditing of the Republic of China, and their applications in practice. As the financial statements are the responsibility of the management, PricewaterhouseCoopers cannot accept any liability for the use of, or reliance on, the English translation or for any errors or misunderstandings that may derive from the translation.

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PRESIDENT SECURITIES CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS DECEMBER 31, 2023 AND 2022

(Expressed in thousands of New Taiwan dollars)

Assets	December 31, 2023 AMOUNT % `$` `5,509,978` `4` `53,698,997` `38` `3,078,680` `2` `17,395,242` `12` `1,982` `-` `1,476` `-` `9,247,169` `7` `20,526,117` `15` `451,397` `-` `475,705` `-` `1,475` `-` `19,095,101` `14` `1,191` `-` `49,546` `-` `74,632` `-` `125` `-` `1,725,872` `1` `131,334,685` `93` `118,280` `-` `1,168,288` `1` `3,412,924` `3` `2,645,077` `2` `132,026` `-` `184,153` `-` `292,437` `-` `130,674` `-` `1,246,679` `1` `9,330,538` `7` `$` `140,665,223 100`	December 31, 2022	December 31, 2022
	AMOUNT `$` `5,509,978` `53,698,997` `3,078,680` `17,395,242` `1,982` `1,476` `9,247,169` `20,526,117` `451,397` `475,705` `1,475` `19,095,101` `1,191` `49,546` `74,632` `125` `1,725,872` `131,334,685` `118,280` `1,168,288` `3,412,924` `2,645,077` `132,026` `184,153` `292,437` `130,674` `1,246,679` `9,330,538` `$` `140,665,223`	AMOUNT `$` `6,194,573` `24,395,868` `2,497,782` `10,533,221` `94,136` `72,399` `4,094,908` `20,783,255` `1,159,577` `3,377,630` `763` `10,140,951` `1,195` `38,289` `60,108` `43` `1,950,961` `85,395,659` `99,283` `1,179,907` `3,512,098` `2,609,642` `165,557` `266,302` `246,506` `106,146` `1,309,762` `9,495,203` `$` `94,890,862`	%
110000 Current assets 111100 Cash and cash equivalents 112000 Financial assets at fair value through profit or loss - current 113200 Financial assets at fair value through other comprehensive income - current 114030 Margin loans receivable 114040 Refinancing security deposits 114050 Receivables from refinance guaranty 114060 Receivable of securities business money lending 114070 Customer margin account 114090 Receivables from security lending 114100 Security lending deposits 114110 Notes receivable 114130 Accounts receivable 114140 Accounts receivable-related parties 114150 Prepayments 114170 Other receivables 114600 Current tax assets 119000 Other current assets 110000 Total current assets 120000 Non-current assets 122000 Financial assets at fair value through profit or loss - non-current 123200 Financial assets at fair value through other comprehensive income - non- current 124100 Investments accounted for under the equity method 125000 Property and equipment, net 125800 Right-of-use assets 126000 Investment property 127000 Intangible assets 128000 Deferred tax assets 129000 Other assets - non-current 120000 Total non-current assets 906001 Total Assets			`6` `26` `3` `11` `-` `-` `4` `22` `1` `4` `-` `11` `-` `-` `-` `-` `2`
			`90`
			`-` `1` `4` `3` `-` `-` `-` `-` `2`
			`10`
			`100`

(Continued)

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PRESIDENT SECURITIES CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS

DECEMBER 31, 2023 AND 2022

(Expressed in thousands of New Taiwan dollars)

Liabilities and Equity	December 31, 2023 AMOUNT % `$` `6,944,759` `5` `21,130,934` `15` `10,471,312` `7` `19,140,506` `14` `921,093` `1` `1,163,504` `1` `1,632,008` `1` `20,497,894` `14` `852,083` `1` `17,091,415` `12` `3,642` `-` `614,380` `-` `2,259,582` `2` `5,224,019` `4` `265,324` `-` `58,542` `-` `84,055` `-` `108,355,052` `77` `15,507` `-` `68,894` `-` `19,173` `-` `64,489` `-` `168,063` `-` `108,523,115` `77` `14,558,313` `10` `91,261` `-` `3,959,127` `3` `9,253,546` `7` `2,752,936` `2` `1,434,309` `1` `32,049,492` `23` `92,616` `-` `32,142,108` `23` `$` `140,665,223 100`	December 31, 2022	December 31, 2022
	AMOUNT `$` `6,944,759` `21,130,934` `10,471,312` `19,140,506` `921,093` `1,163,504` `1,632,008` `20,497,894` `852,083` `17,091,415` `3,642` `614,380` `2,259,582` `5,224,019` `265,324` `58,542` `84,055` `108,355,052` `15,507` `68,894` `19,173` `64,489` `168,063` `108,523,115` `14,558,313` `91,261` `3,959,127` `9,253,546` `2,752,936` `1,434,309` `32,049,492` `92,616` `32,142,108` `$` `140,665,223`	AMOUNT `$` `275,000` `5,827,431` `9,157,320` `6,965,424` `1,809,356` `1,809,962` `1,806,591` `20,763,586` `265,926` `10,852,394` `2,276` `744,720` `1,582,207` `2,784,086` `161,117` `72,740` `83,213` `64,963,349` `15,418` `86,061` `11,618` `7,928` `121,025` `65,084,374` `14,558,313` `91,261` `3,877,849` `9,090,989` `816,933` `1,283,747` `29,719,092` `87,396` `29,806,488` `$` `94,890,862`	%
210000 Current liabilities 211100 Short-term loans 211200 Commercial papers payable 212000 Financial liabilities at fair value through profit or loss - current 214010 Bonds sold under repurchase agreements 214040 Deposits on short sales 214050 Short sale proceeds payable 214070 Guarantee deposit received on borrowed securities 214080 Futures traders' equity 214090 Equity for each customer in the account 214130 Accounts payable 214150 Advance receipts 214160 Collections on behalf of third parties 214170 Other payables 214200 Other financial liabilities - current 214600 Current tax liability 216000 Current lease liabilities 219000 Other current liabilities 210000 Total current liabilities 220000 Non-current liabilities 225100 Non-current provisions 226000 Non-current lease liabilities 228000 Deferred tax liabilities 229000 Other liabilities-non-current 220000 Total non-current liabilities 906003 Total Liabilities 300000 Equity attributable to owners of the parent company 301000 Capital 301010 Common stock 302000 Capital reserve 304000 Retained earnings 304010 Legal reserve 304020 Special reserve 304040 Unappropriated earnings 305000 Other equity interest 300000 Total 306000 Non-controlling interests 906004 Total Equity 906002 Total liabilities and equity			`-` `6` `10` `7` `2` `2` `2` `22` `-` `12` `-` `1` `2` `3` `-` `-` `-`
			`69`
			`-` `-` `-` `-`
			`-`
			`69`
			`15` `-` `4` `10` `1` `1`
			`31`
			`-`
			`31`
			`100`

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

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PRESIDENT SECURITIES CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME YEARS ENDED DECEMBER 31, 2023 AND 2022

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

Items Year ended December 31
2023
2022
Notes
AMOUNT
%
AMOUNT
%
6(29)
$
3,518,253
37
$
3,278,162
52
6(30)
104,284
1
86,465
1
55,919
1
38,150
1
6(31)
2,326,012
24 (
3,228,826) (
51 )
91,663
1
88,720
1
6(32)
1,366,104
14
943,535
15
3,662,857
38
1,278,136
20
6(33)
1,728,970
18 (
940,274) (
15 )
6(34)
(
60,644 ) (
1)
482,271
8
6(35)
(
1,376,328 ) (
14)
1,381,017
22
6(36)
(
143,436 ) (
1)
-
-
(
295,958 ) (
3)
546,571
9
8,683
-
11,799
-
6(37)
(
221,645 ) (
2)
1,473,984
24
6(38)
(
1,792,083 ) (
19)
158,289
3
6(39)
(
16,996 )
-
22,291
-
6(40)
586,928
6
651,046
10
9,542,583
100
6,271,336
100
6(41)
(
566,639 ) (
6) (
550,760) (
9 )
(
8,484 )
- (
9,634)
-
6(42)
(
934,881 ) (
10) (
183,332) (
3 )
(
90,785 ) (
1) (
108,088) (
2 )
(
124,702 ) (
2) (
144,658) (
2 )
(
492 )
- (
2)
-
6(43)
(
3,149,201 ) (
33) (
2,516,485) (
40 )
6(44)
(
313,273 ) (
3) (
276,298) (
4 )
6(45)
(
2,032,604 ) (
21) (
1,784,465) (
29 )
(
7,221,061 ) (
76) (
5,573,722) (
89 )

400000 Revenues
401000
Brokerage handling fee revenue
404000
Revenues from underwriting
business
406000
Net gain (loss ) on wealth
management
410000
Net gain (loss) on sale of operating
securities
421100
Revenue from providing agency
service for stock affairs
421200
Interest income
421300
Dividend income
421500
Net valuation gain (loss) on
operating securities at fair value
through profit or loss
421600
Net gain (loss) on covering of
borrowed securities and bonds with
resale agreements-short sales
421610
Net valuation gain (loss) on
borrowed securities and bonds with
resale agreements-short sales at fair
value through profit or loss
421750
Net realized gain on financial
liabilities measured at fair value
through other comprehensive
income
422000
Net gain (loss) on issuance of ETNs
422100
Administrative and handling fee
revenues from issuance of ETNs
422200
Net gain (loss) from issuance of call
(put) warrants
424400
Net gain (loss) from derivatives
425300
Expected credit impairment loss and
reversal of impairment gain
428000
Other operating income
Total revenues
500000/
501000/
502000/
Expenditures and expenses
503000
Handling charges
507000
ETNs administrative expenses
521200
Financial costs
524100
Futures commission expense
524300
Expense of clearing and settlement
528000
Other operating expenditure
531000
Employee benefits expense
532000
Depreciation and amortization
533000
Other operating expenses
Total expenditures and expenses

Items	Year ended December 31 2023 2022 Notes AMOUNT % AMOUNT % 6(29) `$` `3,518,253` `37` `$` `3,278,162` `52` 6(30) `104,284` `1` `86,465` `1` `55,919` `1` `38,150` `1` 6(31) `2,326,012` `24 (` `3,228,826) (` `51 )` `91,663` `1` `88,720` `1` 6(32) `1,366,104` `14` `943,535` `15` `3,662,857` `38` `1,278,136` `20` 6(33) `1,728,970` `18 (` `940,274) (` `15 )` 6(34) `(` `60,644 ) (` `1)` `482,271` `8` 6(35) `(` `1,376,328 ) (` `14)` `1,381,017` `22` 6(36) `(` `143,436 ) (` `1)` `-` `-` `(` `295,958 ) (` `3)` `546,571` `9` `8,683` `-` `11,799` `-` 6(37) `(` `221,645 ) (` `2)` `1,473,984` `24` 6(38) `(` `1,792,083 ) (` `19)` `158,289` `3` 6(39) `(` `16,996 )` `-` `22,291` `-` 6(40) `586,928` `6` `651,046` `10` `9,542,583` `100` `6,271,336` `100` 6(41) `(` `566,639 ) (` `6) (` `550,760) (` `9 )` `(` `8,484 )` `- (` `9,634)` `-` 6(42) `(` `934,881 ) (` `10) (` `183,332) (` `3 )` `(` `90,785 ) (` `1) (` `108,088) (` `2 )` `(` `124,702 ) (` `2) (` `144,658) (` `2 )` `(` `492 )` `- (` `2)` `-` 6(43) `(` `3,149,201 ) (` `33) (` `2,516,485) (` `40 )` 6(44) `(` `313,273 ) (` `3) (` `276,298) (` `4 )` 6(45) `(` `2,032,604 ) (` `21) (` `1,784,465) (` `29 )` `(` `7,221,061 ) (` `76) (` `5,573,722) (` `89 )`
400000 Revenues 401000 Brokerage handling fee revenue 404000 Revenues from underwriting business 406000 Net gain (loss ) on wealth management 410000 Net gain (loss) on sale of operating securities 421100 Revenue from providing agency service for stock affairs 421200 Interest income 421300 Dividend income 421500 Net valuation gain (loss) on operating securities at fair value through profit or loss 421600 Net gain (loss) on covering of borrowed securities and bonds with resale agreements-short sales 421610 Net valuation gain (loss) on borrowed securities and bonds with resale agreements-short sales at fair value through profit or loss 421750 Net realized gain on financial liabilities measured at fair value through other comprehensive income 422000 Net gain (loss) on issuance of ETNs 422100 Administrative and handling fee revenues from issuance of ETNs 422200 Net gain (loss) from issuance of call (put) warrants 424400 Net gain (loss) from derivatives 425300 Expected credit impairment loss and reversal of impairment gain 428000 Other operating income Total revenues 500000/ 501000/ 502000/ Expenditures and expenses 503000 Handling charges 507000 ETNs administrative expenses 521200 Financial costs 524100 Futures commission expense 524300 Expense of clearing and settlement 528000 Other operating expenditure 531000 Employee benefits expense 532000 Depreciation and amortization 533000 Other operating expenses Total expenditures and expenses

(Continued)

~22~

PRESIDENT SECURITIES CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME YEARS ENDED DECEMBER 31, 2023 AND 2022

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

Items Year ended December 31
2023
2022
Notes
AMOUNT
%
AMOUNT
%
$
2,321,522
24
$
697,614
11
6(11)
124,630
2 (
97,702) (
1 )
6(46)
768,343
8
373,789
6
3,214,495
34
973,701
16
6(47)
(
324,740 ) (
4) (
237,456) (
4 )
$
2,889,755
30
$
736,245
12
($
158,746 ) (
2) $
102,649
1
84,763
1 (
68,904) (
1 )
(
6,620 )
-
1,945
-
6(47)
31,749
- (
20,530)
-
(
59,037 )
-
168,819
3
126,397
1 (
126,051) (
2 )
$
18,506
-
$
57,928
1
$
2,908,261
30
$
794,173
13
$
2,878,951
30
$
729,368
12
$
10,804
-
$
6,877
-
$
2,898,174
30
$
787,029
13
$
10,087
-
$
7,144
-
6(48)
$
1.98
$
0.50
$
1.97
$
0.50

Operating profit
601000
Share of the profit or loss of
associates and joint ventures
accounted for under the equity
method
602000
Other gains and losses
902001Profit before tax
701000
Income tax (expense) benefit
902005Net income
Other comprehensive income
Components of other comprehensive
income that will not be reclassified to
profit or loss
805510
Gain (loss) on remeasurements of
defined benefit plans
805540
Net unrealized gain (loss) from
investments in equity instruments at
fair value through other
comprehensive income
805550
Other comprehensive gain (loss) of
associates and joint ventures
accounted for under the equity
method
805599
Income tax (expense) benefit
relating to components of other
comprehensive income
Items may be reclassified to profit of
loss subsequently
805610
Translation gain (loss) on the
financial statements of foreign
operating entities
805615
Net unrealized gain (loss) from
investments in debt instruments at
fair value through other
comprehensive income
805000
Current other comprehensive
income (loss) (post-tax)
902006Total current comprehensive income
Income (loss) attributable to:
913100
Parent company
913200
Non-controlling interests
Current comprehensive income (loss)
attributable to:
914100
Parent company
914200
Non-controlling interests
Earnings per share
975000
Basic earnings per share (in dollars)
985000
Diluted earnings per share (in
dollars)

Items	Year ended December 31 2023 2022 Notes AMOUNT % AMOUNT % `$` `2,321,522` `24` `$` `697,614` `11` 6(11) `124,630` `2 (` `97,702) (` `1 )` 6(46) `768,343` `8` `373,789` `6` `3,214,495` `34` `973,701` `16` 6(47) `(` `324,740 ) (` `4) (` `237,456) (` `4 )` `$` `2,889,755` `30` `$` `736,245` `12` `($` `158,746 ) (` `2) $` `102,649` `1` `84,763` `1 (` `68,904) (` `1 )` `(` `6,620 )` `-` `1,945` `-` 6(47) `31,749` `- (` `20,530)` `-` `(` `59,037 )` `-` `168,819` `3` `126,397` `1 (` `126,051) (` `2 )` `$` `18,506` `-` `$` `57,928` `1` `$` `2,908,261` `30` `$` `794,173` `13` `$` `2,878,951` `30` `$` `729,368` `12` `$` `10,804` `-` `$` `6,877` `-` `$` `2,898,174` `30` `$` `787,029` `13` `$` `10,087` `-` `$` `7,144` `-` 6(48) `$` `1.98` `$` `0.50` `$` `1.97` `$` `0.50`
Operating profit 601000 Share of the profit or loss of associates and joint ventures accounted for under the equity method 602000 Other gains and losses 902001Profit before tax 701000 Income tax (expense) benefit 902005Net income Other comprehensive income Components of other comprehensive income that will not be reclassified to profit or loss 805510 Gain (loss) on remeasurements of defined benefit plans 805540 Net unrealized gain (loss) from investments in equity instruments at fair value through other comprehensive income 805550 Other comprehensive gain (loss) of associates and joint ventures accounted for under the equity method 805599 Income tax (expense) benefit relating to components of other comprehensive income Items may be reclassified to profit of loss subsequently 805610 Translation gain (loss) on the financial statements of foreign operating entities 805615 Net unrealized gain (loss) from investments in debt instruments at fair value through other comprehensive income 805000 Current other comprehensive income (loss) (post-tax) 902006Total current comprehensive income Income (loss) attributable to: 913100 Parent company 913200 Non-controlling interests Current comprehensive income (loss) attributable to: 914100 Parent company 914200 Non-controlling interests Earnings per share 975000 Basic earnings per share (in dollars) 985000 Diluted earnings per share (in dollars)

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

==> picture [512 x 7] intentionally omitted <==

==> picture [427 x 40] intentionally omitted <==

~23~

PRESIDENT SECURITIES CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY YEARS ENDED DECEMBER 31, 2023 AND 2022

(Expressed in thousands of New Taiwan dollars)

			Equityattributable t	Equityattributable t	o owners of theparent	o owners of theparent	o owners of theparent	o owners of theparent			Non-controlling interests
Common stock	Capital reserve		R	etained earnings		Other equityinterest				Total
		Legal reserve		Special reserve	Unappropriated earnings	Translation gain and loss on the financial statements of foreign operating entities	U a f	nrealised gain or loss on financial ssets measured at air value through other comprehensive income
`$ 14,558,313` `-` `-` `-` `-` `-` `-` `-` `$ 14,558,313` `$ 14,558,313` `-` `-` `-` `-` `-` `-` `-` `$ 14,558,313`	`$ 91,261` `-` `-` `-` `-` `-` `-` `-` `$ 91,261` `$ 91,261` `-` `-` `-` `-` `-` `-` `-` `$ 91,261`	`$ 3,487,748` `-` `-` `-` `390,101` `-` `-` `-` `$ 3,877,849` `$ 3,877,849` `-` `-` `-` `81,278` `-` `-` `-` `$ 3,959,127`		`$ 8,314,199` `-` `-` `-` `-` `776,790` `-` `-` `$ 9,090,989` `$ 9,090,989` `-` `-` `-` `-` `162,557` `-` `-` `$ 9,253,546`	`$ 3,922,562` `729,368` `83,415` `812,783` `(` `390,101` `)` `(` `776,790` `)` `( 2,751,521` `)` `-` `$` `816,933` `$` `816,933` `2,878,951` `(` `131,339` `)` `2,747,612` `(` `81,278` `)` `(` `162,557` `)` `(` `567,774` `)` `-` `$ 2,752,936`	`($` `65,809 )` `-` `168,819` `168,819` `-` `-` `-` `-` `$` `103,010` `$` `103,010` `-` `(` `59,037 )` `(` `59,037 )` `-` `-` `-` `-` `$` `43,973`	`$ 1,375,310` `-` `(` `194,573 )` `(` `194,573 )` `-` `-` `-` `-` `$ 1,180,737` `$ 1,180,737` `-` `209,599` `209,599` `-` `-` `-` `-` `$ 1,390,336`		`$ 31,683,584` `729,368` `57,661` `787,029` `-` `-` `(` `2,751,521 )` `-` `$ 29,719,092` `$ 29,719,092` `2,878,951` `19,223` `2,898,174` `-` `-` `(` `567,774 )` `-` `$ 32,049,492`		`$` `83,046` `6,877` `267` `7,144` `-` `-` `-` `(` `2,794 )` `$` `87,396` `$` `87,396` `10,804` `(` `717 )` `10,087` `-` `-` `-` `(` `4,867 )` `$` `92,616`	`$ 31,766,630` `736,245` `57,928` `794,173` `-` `-` `(` `2,751,521 )` `(` `2,794 )` `$ 29,806,488` `$ 29,806,488` `2,889,755` `18,506` `2,908,261` `-` `-` `(` `567,774 )` `(` `4,867 )` `$ 32,142,108`

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

~24~

PRESIDENT SECURITIES CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

YEARS ENDED DECEMBER 31, 2023 AND 2022

(Expressed in thousands of New Taiwan dollars)

Year ended December 31
Notes
2023
2022
$ 3,214,495 $ 973,701
6(2)(33)
(
1,728,970 )
940,274
6(35)
1,376,328 (
1,381,017 )
6(39)
17,916 (
20,944 )
6(44)
234,094
218,824
6(44)
79,179
57,474
6(42)
934,881
183,332
6(32)(46)
(
1,939,759 ) (
1,173,506 )
(
3,695,724 ) (
1,307,234 )
6(11)
(
124,630 )
97,702
6(12)
89
4
(
1 ) (
98 )
6(46)
(
9,112 )
12,551
-
15,244
(
27,583,578 )
8,211,928
(
356,049 ) (
2,259,620 )
-
27,401
(
6,880,485 )
7,830,648
92,154 (
64,206 )
70,923 (
47,466 )
(
5,152,261 ) (
2,512,915 )
257,138
552,277
708,180 (
758,558 )
2,901,925 (
1,940,335 )
(
712 )
56
(
8,795,781 )
6,619,848
4 (
48 )
(
10,977 ) (
13,277 )
9,420 (
2,273 )
225,089
7,011,085
(
62,336 )
2,365,735
12,175,082 (
2,677,616 )
(
888,263 )
606,769
(
646,458 )
250,800
(
174,583 ) (
162,616 )
(
265,692 ) (
564,588 )
586,157
167,930
6,183,634 (
7,548,751 )
1,366 (
1,761 )
(
130,340 ) (
4,997,380 )
668,702 (
1,048,366 )
2,439,933 (
2,199,053 )
842 (
635)

(Continued)

~25~

PRESIDENT SECURITIES CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS

YEARS ENDED DECEMBER 31, 2023 AND 2022

(Expressed in thousands of New Taiwan dollars)

Year ended December 31
Notes
2023
2022
( $ 26,268,180 ) $ 5,461,320
1,742,307
1,167,360
3,851,936
1,501,361
(
205,839 ) (
679,619 )
(
20,879,776 )
7,450,422
- (
656,781 )
6(12)
(
65,232 ) (
106,194 )
6(16)
(
30,338 ) (
51,645 )
(
46,982 )
72,822
(
127,016 ) (
201,230 )
(
269,568 ) (
943,028 )
6,669,759 (
315,000 )
15,320,000 (
2,820,000 )
(
3,564 ) (
328 )
(
76,663 ) (
93,056 )
(
870,191 ) (
166,292 )
(
567,774 ) (
2,751,521 )
(
4,867 ) (
2,794 )
20,466,700 (
6,148,991 )
(
1,951 )
79,158
(
684,595 )
437,561
6,194,573
5,757,012
$ 5,509,978 $ 6,194,573

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

==> picture [392 x 37] intentionally omitted <==

~26~

INDEPENDENT AUDITORS’ REPORT TRANSLATED FROM CHINESE

PWCR23003603

To the Board of Directors and Shareholders of President Securities Corporation

Opinion

We have audited the accompanying parent company only balance sheets of President Securities Corporation (the “Company”) as at December 31, 2023and 2022, and the related parent company only statements of comprehensive income, of changes in equity and of cash flows for the years than ended and notes to the parent company only financial statements, including a summary of significant accounting policies.

In our opinion, the accompanying parent company only financial statements present fairly, in all material respects, the parent company only financial position of the Company as at December 31, 2023 and 2022, and its parent company only financial performance and its parent company only cash flows for the years than ended in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Firms and Regulations Governing the Preparation of Financial Reports by Futures Commission Merchants.

Basis for opinion

We conducted our audits in accordance with the Regulations Governing Auditing and Attestation of Financial Statements by Certified Public Accountants and Standards on Auditing of 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 Accountant of the Republic of China, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that 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 judgement, were of most significance in our audit of the Company’s 2023 parent company only financial statements. 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.

The key audit matters of the Company’s 2023 parent company only financial statements are stated as follows:

Fair value measurement of unlisted stocks without active market

Description

Please refer to Note 4(7) for the accounting policies on unlisted stocks without active market (shown as “financial assets at fair value through other comprehensive income”) and Note 5 for details of significant judgements, estimates and assumption uncertainty. As at December 31, 2023, the unlisted stocks without active market held by the Company totaled 307,448 thousand New Taiwan Dollars and were shown as “financial assets at fair value through other comprehensive income” (Level 3 fair value).

Due to the lack of an active market, the fair value of the unlisted stocks held by the Company was determined using the valuation method. Management measured its fair value by using comparable listed companies in market approach. The main assumption of market approach is calculated based on the latest related parameters of comparable listed companies in similar industries and considering discounts on market liquidity or risk particularity.

Above-mentioned estimation of fair value involves various assumptions and material unobservable inputs, which has high uncertainty and relies on the subjective judgment of management. Any changes in judgements and estimates may affect the ultimate result of accounting estimates and have an impact on the financial statements of the Company. Thus, we have included the fair value measurement of unlisted stocks without active market as a key audit matter in our audit.

~27~

How our audit addressed the matter

We performed the following audit procedures on the above key audit matter:

Obtained an understanding and assessed policy documents, internal control system, fair value measurement models and approval processes that are related to fair value measurement of unlisted stocks;
Ascertained whether the measurement methods used by the management is commonly used by the industry;
Assessed the reasonableness of parameter of similar companies used by management;
Examined inputs and calculation formulas used in valuation methods and agreed such data to supporting documents.

Impairment indication assessment of investments accounted for under the equity method

Description

Please refer to Note 4(13) for accounting policies on investments accounted for under the equity method and its impairment, Note 5(2) for the uncertainty of accounting estimates and assumptions applied on asset impairment, and Note 6(10) for details of investments accounted for under the equity method.

The Company held 42.46% of equity of Uni-President Asset Management Corp. which was accounted for under the equity method, and the excess of the carrying amount over the share of the investee company’s net assets is mainly goodwill. As at December 31, 2023, the amount was 796,561 thousand New Taiwan Dollars. Impairment assessment is based on the expected future cash flow of the investee, discounted at an appropriate discount rate, to measure the recoverable amount of the cash generating unit.

How our audit addressed the matter

We performed the following audit procedures on the above key audit matter:

Obtained the impairment assessment report prepared by an external valuation expert who was commissioned by the management and reviewed the achievement of the past financial forecast to assess its execution;
Assessed the reasonableness of expected future cash flows, discount rate and other significant assumptions applied in the cash flow model; and
Inspected valuation model parameters, formula setting and the accuracy of calculation.

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, Regulations Governing the Preparation of Financial Reports by Futures Commission Merchants, and for such internal control as management determines is necessary to enable the preparation of parent company only financial statement 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 audit committee, are responsible for overseeing the Company’s financial reporting process.

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

~28~

auditors’ report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Standards on Auditing of 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 parent company only financial statements.

As part of an audit in accordance with the Standards on Auditing of the Republic of China, we exercise professional judgement and professional skepticism throughout the audit. We also:

Identify and assess the risks of material misstatement of 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 control.
Obtain an understanding of internal control 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 Company’s internal control.
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 auditors’ 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 auditors’ 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 parent company only audit. We remain solely responsible for our audit opinion.

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 of the current period and are therefore the key audit matters. We describe these matters in our auditors’ report unless law or regulation precludes 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.

~29~

Lin, Se-Kai

Independent Auditors

Lo, Chiao-Sen

For and on behalf of PricewaterhouseCoopers, Taiwan March 4, 2024

The accompanying parent company only financial statements are not intended to present the financial position and financial performance 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 Standards on Auditing of the Republic of China, and their applications in practice. As the financial statements are the responsibility of the management, PricewaterhouseCoopers cannot accept any liability for the use of, or reliance on, the English translation or for any errors or misunderstandings that may derive from the translation.

~30~

PRESIDENT SECURITIES CORPORATION

PARENT COMPANY ONLY BALANCE SHEETS DECEMBER 31, 2023 AND 2022

(Expressed in thousands of New Taiwan dollars)

Assets	December 31, 2023 AMOUNT % `$` `3,057,640` `3` `53,186,728` `44` `3,078,680` `3` `17,395,242` `15` `1,982` `-` `1,476` `-` `9,247,169` `8` `451,397` `-` `475,705` `-` `1,475` `-` `19,083,359` `16` `4,196` `-` `44,247` `-` `14,434` `-` `1,733,992` `1` `107,777,722` `90` `59,780` `-` `307,448` `-` `7,544,462` `7` `2,460,229` `2` `126,293` `-` `184,153` `-` `229,816` `-` `129,269` `-` `1,004,224` `1` `12,045,674` `10` `$` `119,823,396 100`	December 31, 2022	December 31, 2022
	AMOUNT `$` `3,057,640` `53,186,728` `3,078,680` `17,395,242` `1,982` `1,476` `9,247,169` `451,397` `475,705` `1,475` `19,083,359` `4,196` `44,247` `14,434` `1,733,992` `107,777,722` `59,780` `307,448` `7,544,462` `2,460,229` `126,293` `184,153` `229,816` `129,269` `1,004,224` `12,045,674` `$` `119,823,396`	AMOUNT `$` `3,192,794` `24,015,200` `2,497,782` `10,533,221` `94,136` `72,399` `4,094,908` `1,159,577` `3,377,630` `763` `10,129,755` `4,717` `33,654` `16,656` `1,870,428` `61,093,620` `66,383` `294,855` `8,085,345` `2,413,110` `155,095` `266,302` `187,393` `103,665` `1,071,888` `12,644,036` `$` `73,737,656`	%
110000 Current assets 111100 Cash and cash equivalents 112000 Financial assets at fair value through profit or loss - current 113200 Financial assets at fair value through other comprehensive income - current 114030 Margin loans receivable 114040 Refinancing security deposits 114050 Receivables from refinance guaranty 114060 Receivable of securities business money lending 114090 Receivables from security lending 114100 Security lending deposits 114110 Notes receivable 114130 Accounts receivable 114140 Accounts receivable - related parties 114150 Prepayments 114170 Other receivables 119000 Other current assets 110000 Total current assets 120000 Non-current assets 122000 Financial assets at fair value through profit or loss - non-current 123200 Financial assets at fair value through other comprehensive income - non- current 124100 Investments accounted for under the equity method 125000 Property and equipment, net 125800 Right-of-use assets 126000 Investment property 127000 Intangible assets 128000 Deferred tax assets 129000 Other assets - non-current 120000 Total non-current assets 906001 Total Assets			`4` `33` `3` `14` `-` `-` `6` `2` `5` `-` `14` `-` `-` `-` `2`
			`83`
			`-` `1` `11` `3` `-` `-` `-` `-` `2`
			`17`
			`100`

(Continued)

~31~

PRESIDENT SECURITIES CORPORATION

PARENT COMPANY ONLY BALANCE SHEETS DECEMBER 31, 2023 AND 2022

(Expressed in thousands of New Taiwan dollars)

Liabilities and Equity	December 31, 2023 AMOUNT % `$` `6,944,759` `6` `21,130,934` `18` `10,463,828` `9` `19,140,506` `16` `921,093` `1` `1,163,504` `1` `1,632,008` `1` `860,210` `1` `17,055,597` `14` `121` `-` `612,897` `-` `2,079,118` `2` `5,224,019` `4` `232,902` `-` `55,596` `-` `76,207` `-` `87,593,299` `73` `15,507` `-` `66,037` `-` `17,915` `-` `81,146` `-` `180,605` `-` `87,773,904` `73` `14,558,313` `12` `91,261` `-` `3,959,127` `4` `9,253,546` `8` `2,752,936` `2` `1,434,309` `1` `32,049,492` `27` `$` `119,823,396 100`	December 31, 2022	December 31, 2022
	AMOUNT `$` `6,944,759` `21,130,934` `10,463,828` `19,140,506` `921,093` `1,163,504` `1,632,008` `860,210` `17,055,597` `121` `612,897` `2,079,118` `5,224,019` `232,902` `55,596` `76,207` `87,593,299` `15,507` `66,037` `17,915` `81,146` `180,605` `87,773,904` `14,558,313` `91,261` `3,959,127` `9,253,546` `2,752,936` `1,434,309` `32,049,492` `$` `119,823,396`	AMOUNT `$` `275,000` `5,827,431` `9,156,084` `6,965,424` `1,809,356` `1,809,962` `1,806,591` `269,029` `10,730,645` `29` `743,518` `1,443,038` `2,784,086` `128,431` `65,653` `72,006` `43,886,283` `15,418` `82,231` `11,317` `23,315` `132,281` `44,018,564` `14,558,313` `91,261` `3,877,849` `9,090,989` `816,933` `1,283,747` `29,719,092` `$` `73,737,656`	%
210000 Current liabilities 211100 Short-term loans 211200 Commercial papers payable 212000 Financial liabilities at fair value through profit or loss - current 214010 Bonds sold under repurchase agreements 214040 Deposits on short sales 214050 Short sale proceeds payable 214070 Guarantee deposit received on borrowed securities 214090 Equity for each customer in the account 214130 Accounts payable 214150 Advance receipts 214160 Collections on behalf of third parties 214170 Other payables 214200 Other financial liabilities - current 214600 Current tax liability 216000 Current lease liabilities 219000 Other current liabilities 210000 Total current liabilities 220000 Non-current liabilities 225100 Non-current provisions 226000 Non-current lease liabilities 228000 Deferred tax liability 229000 Other liabilities - non-current 220000 Total non-current liabilities 906003 Total Liabilities 301000 Capital 301010 Common stock 302000 Capital reserve 304000 Retained earnings 304010 Legal reserve 304020 Special reserve 304040 Unappropriated earnings 305000 Other equity interest 906004 Total equity 906002 Total liabilities and equity			`-` `8` `12` `10` `3` `3` `2` `-` `15` `-` `1` `2` `4` `-` `-` `-`
			`60`
			`-` `-` `-` `-`
			`-`
			`60`
			`20` `-` `5` `12` `1` `2`
			`40`
			`100`

The accompanying notes are an integral part of these parent company only financial statements.

==> picture [395 x 37] intentionally omitted <==

~32~

PRESIDENT SECURITIES CORPORATION

PARENT COMPANY ONLY STATEMENTS OF COMPREHENSIVE INCOME YEARS ENDED DECEMBER 31, 2023 AND 2022

(Expressed in thousands of New Taiwan dollars, earnings per share)

Items Year ended December 31
2023
2022
Notes
AMOUNT
%
AMOUNT
%
6(28)
$
2,795,316
32
$
2,382,066
45
6(29)
104,284
1
86,465
2
55,919
1
38,150
1
6(30)
2,321,554
27 (
3,250,617) (
62 )
91,731
1
88,788
2
6(31)
1,366,096
16
940,469
18
3,662,012
42
1,274,795
24
6(32)
1,746,344
20 (
916,440) (
17 )
6(33)
(
60,644 ) (
1)
482,271
9
6(34)
(
1,376,328 ) (
16)
1,381,017
26
6(35)
(
143,436 ) (
2)
-
-
(
295,958 ) (
3)
546,571
10
8,683
-
11,799
-
6(36)
(
221,645 ) (
2)
1,473,984
28
34,079
-
43,532
1
6(37)
(
1,816,523 ) (
21)
123,408
2
6(38)
(
17,076 )
-
21,973
1
6(39)
424,309
5
545,860
10
8,678,717
100
5,274,091
100
6(40)
(
410,560 ) (
5) (
364,342) (
7 )
(
8,484 )
- (
9,634)
-
6(41)
(
873,831 ) (
10) (
163,518) (
3 )
(
98 )
- (
84)
-
(
20,873 )
- (
21,420) (
1 )
(
492 )
- (
2)
-
6(42)
(
2,772,591 ) (
32) (
2,141,940) (
41 )
6(43)
(
275,701 ) (
3) (
224,108) (
4 )
6(44)
(
1,877,364) (
22) (
1,636,888) (
31)
(
6,239,994) (
72) (
4,561,936) (
87)
2,438,723
28
712,155
13
6(10)
455,691
5
32,394
1
6(45)
225,358
3
168,133
3
3,119,772
36
912,682
17
6(46)
(
240,821) (
3) (
183,314) (
3)
$
2,878,951
33
$
729,368
14

400000 Revenues
401000 Brokerage handling fee revenue
404000 Revenues from underwriting business
406000 Net gain (loss) on wealth management
410000 Net gain (loss) on sale of trading
securities
421100 Revenue from providing agency
service for stock affairs
421200 Interest revenue
421300 Dividend revenue
421500 Net valuation gain (loss) on operating
securities at fair value through profit or
loss
421600 Net gain (loss) on covering of
borrowed securities and bonds with
resale agreements-short sales
421610 Net valuation gain (loss) on borrowed
securities and bonds with resale
agreements-short sales at fair value
through profit or loss
421750 Net realized gain (loss) on financial
liabilities measured at fair value
through other comprehensive income
422000 Net gain (loss) on issuance of ETNs
422100 Administrative and handling fee
revenues from issuance of ETNs
422200 Net gain (loss) from issuance of call
(put) warrants
424100 Future commission revenue
424400 Net gain (loss) from derivatives
425300 Expected credit impairment loss and
reversal of impairment gain
428000 Other operating income
Total revenue
500000 Expenditures and expenses
501000/
502000/
503000 Handling charges
507000 ETNs administrative expenses
521200 Finance costs
524200 Securities commission expense
524300 Expense of clearing and settlement
528000 Other operating expenditure
531000 Employee benefits expense
532000 Depreciation and amortization
533000 Other operating expense
Total expenditure and expense
Operating profit
601100 Share of the profit or loss of associates
and joint ventures accounted for under
the equity method
602000 Other gains and losses
902001Profit before tax
701000 Income tax (expense) benefit
902005Net income

Items	Year ended December 31 2023 2022 Notes AMOUNT % AMOUNT % 6(28) `$` `2,795,316` `32` `$` `2,382,066` `45` 6(29) `104,284` `1` `86,465` `2` `55,919` `1` `38,150` `1` 6(30) `2,321,554` `27 (` `3,250,617) (` `62 )` `91,731` `1` `88,788` `2` 6(31) `1,366,096` `16` `940,469` `18` `3,662,012` `42` `1,274,795` `24` 6(32) `1,746,344` `20 (` `916,440) (` `17 )` 6(33) `(` `60,644 ) (` `1)` `482,271` `9` 6(34) `(` `1,376,328 ) (` `16)` `1,381,017` `26` 6(35) `(` `143,436 ) (` `2)` `-` `-` `(` `295,958 ) (` `3)` `546,571` `10` `8,683` `-` `11,799` `-` 6(36) `(` `221,645 ) (` `2)` `1,473,984` `28` `34,079` `-` `43,532` `1` 6(37) `(` `1,816,523 ) (` `21)` `123,408` `2` 6(38) `(` `17,076 )` `-` `21,973` `1` 6(39) `424,309` `5` `545,860` `10` `8,678,717` `100` `5,274,091` `100` 6(40) `(` `410,560 ) (` `5) (` `364,342) (` `7 )` `(` `8,484 )` `- (` `9,634)` `-` 6(41) `(` `873,831 ) (` `10) (` `163,518) (` `3 )` `(` `98 )` `- (` `84)` `-` `(` `20,873 )` `- (` `21,420) (` `1 )` `(` `492 )` `- (` `2)` `-` 6(42) `(` `2,772,591 ) (` `32) (` `2,141,940) (` `41 )` 6(43) `(` `275,701 ) (` `3) (` `224,108) (` `4 )` 6(44) `(` `1,877,364) (` `22) (` `1,636,888) (` `31)` `(` `6,239,994) (` `72) (` `4,561,936) (` `87)` `2,438,723` `28` `712,155` `13` 6(10) `455,691` `5` `32,394` `1` 6(45) `225,358` `3` `168,133` `3` `3,119,772` `36` `912,682` `17` 6(46) `(` `240,821) (` `3) (` `183,314) (` `3)` `$` `2,878,951` `33` `$` `729,368` `14`
400000 Revenues 401000 Brokerage handling fee revenue 404000 Revenues from underwriting business 406000 Net gain (loss) on wealth management 410000 Net gain (loss) on sale of trading securities 421100 Revenue from providing agency service for stock affairs 421200 Interest revenue 421300 Dividend revenue 421500 Net valuation gain (loss) on operating securities at fair value through profit or loss 421600 Net gain (loss) on covering of borrowed securities and bonds with resale agreements-short sales 421610 Net valuation gain (loss) on borrowed securities and bonds with resale agreements-short sales at fair value through profit or loss 421750 Net realized gain (loss) on financial liabilities measured at fair value through other comprehensive income 422000 Net gain (loss) on issuance of ETNs 422100 Administrative and handling fee revenues from issuance of ETNs 422200 Net gain (loss) from issuance of call (put) warrants 424100 Future commission revenue 424400 Net gain (loss) from derivatives 425300 Expected credit impairment loss and reversal of impairment gain 428000 Other operating income Total revenue 500000 Expenditures and expenses 501000/ 502000/ 503000 Handling charges 507000 ETNs administrative expenses 521200 Finance costs 524200 Securities commission expense 524300 Expense of clearing and settlement 528000 Other operating expenditure 531000 Employee benefits expense 532000 Depreciation and amortization 533000 Other operating expense Total expenditure and expense Operating profit 601100 Share of the profit or loss of associates and joint ventures accounted for under the equity method 602000 Other gains and losses 902001Profit before tax 701000 Income tax (expense) benefit 902005Net income

(Continued)

~33~

PRESIDENT SECURITIES CORPORATION

PARENT COMPANY ONLY STATEMENTS OF COMPREHENSIVE INCOME

YEARS ENDED DECEMBER 31, 2023 AND 2022

(Expressed in thousands of New Taiwan dollars, earnings per share)

Items Year ended December 31
2023
2022
Notes
AMOUNT
%
AMOUNT
%
($
161,720 ) (
2) $
99,796
2
6(3)
108,975
1 (
74,826) (
2 )
(
27,736 )
-
9,882
-
6(46)
32,344
- (
19,959)
-
(
59,037 ) (
1)
168,819
3
126,397
2 (
126,051) (
2)
$
19,223
-
$
57,661
1
$
2,898,174
33
$
787,029
15
6(47)
$
1.98
$
0.50
$
1.97
$
0.50
re an integral part of these parent company only financial statements.

Other comprehensive income
Components of other comprehensive
income that will not be reclassified to
profit or loss
805510
Gain (loss) on remeasurements of
defined benefit plan
805540
Net unrealised gain (loss) from
investments in equity instruments at
fair value through other
comprehensive income
805560
Other comprehensive income (loss)
of subsidiaries, associates, and joint
ventures accounted for under the
equity method - not reclassified to
profit or loss
805599
Income tax (expense) benefit
relating to components of other
comprehensive income that will not
be reclassified to profit or loss
Items may be reclassified to profit of
loss subsequently
805610
Translation gain (loss) on the
financial statements of foreign
operating entities
805615
Net unrealised gain (loss) from
investments in debt instruments at
fair value through other
comprehensive income
805000
Current other comprehensive
income (loss) (post-tax)
902006Total current comprehensive income
(loss)
Earnings per share
975000
Basic earnings (loss) per share (in
dollars)
985000
Diluted earnings (loss) per share (in
dollars)
The accompanying notes a

Items	Year ended December 31 2023 2022 Notes AMOUNT % AMOUNT % `($` `161,720 ) (` `2) $` `99,796` `2` 6(3) `108,975` `1 (` `74,826) (` `2 )` `(` `27,736 )` `-` `9,882` `-` 6(46) `32,344` `- (` `19,959)` `-` `(` `59,037 ) (` `1)` `168,819` `3` `126,397` `2 (` `126,051) (` `2)` `$` `19,223` `-` `$` `57,661` `1` `$` `2,898,174` `33` `$` `787,029` `15` 6(47) `$` `1.98` `$` `0.50` `$` `1.97` `$` `0.50` re an integral part of these parent company only financial statements.
Other comprehensive income Components of other comprehensive income that will not be reclassified to profit or loss 805510 Gain (loss) on remeasurements of defined benefit plan 805540 Net unrealised gain (loss) from investments in equity instruments at fair value through other comprehensive income 805560 Other comprehensive income (loss) of subsidiaries, associates, and joint ventures accounted for under the equity method - not reclassified to profit or loss 805599 Income tax (expense) benefit relating to components of other comprehensive income that will not be reclassified to profit or loss Items may be reclassified to profit of loss subsequently 805610 Translation gain (loss) on the financial statements of foreign operating entities 805615 Net unrealised gain (loss) from investments in debt instruments at fair value through other comprehensive income 805000 Current other comprehensive income (loss) (post-tax) 902006Total current comprehensive income (loss) Earnings per share 975000 Basic earnings (loss) per share (in dollars) 985000 Diluted earnings (loss) per share (in dollars) The accompanying notes a

==> picture [415 x 39] intentionally omitted <==

~34~

PRESIDENT SECURITIES CORPORATION PARENT COMPANY ONLY STATEMENTS OF CHANGES IN EQUITY YEARS ENDED DECEMBER 31, 2023 AND 2022

(Expressed in thousands of New Taiwan dollars)

For the year ended December 31, 2022 Balance at January 1, 2022 Net income for the year ended December 31, 2022 Other comprehensive income (loss) for the year ended December 31, 2022 Total comprehensive income (loss) Appropriations of 2021 earnings: Legal reserve Special reserve Cash dividends Balance at December 31, 2022 For the year ended December 31, 2023 Balance at January 1, 2023 Net income for the year ended December 31, 2023 Other comprehensive income (loss) for the year ended December 31, 2023 Total comprehensive income (loss) Appropriations of 2022 earnings Legal reserve Special reserve Cash dividends Balance at December 31, 2023	Notes 6(26) 6(26)		Commonstock `$` `14,558,313` `-` `-` `-` `-` `-` `-` `$` `14,558,313` `$` `14,558,313` `-` `-` `-` `-` `-` `-` `$` `14,558,313`		Capital reserve `$` `91,261` `-` `-` `-` `-` `-` `-` `$` `91,261` `$` `91,261` `-` `-` `-` `-` `-` `-` `$` `91,261`				RetainedEarnings
							Legal reserve `$` `3,487,748` `-` `-` `-` `390,101` `-` `-` `$` `3,877,849` `$` `3,877,849` `-` `-` `-` `81,278` `-` `-` `$` `3,959,127`		Special reserve `$` `8,314,199` `-` `-` `-` `-` `776,790` `-` `$` `9,090,989` `$` `9,090,989` `-` `-` `-` `-` `162,557` `-` `$` `9,253,546`

The accompanying notes are an integral part of these parent company only financial statements.

==> picture [427 x 40] intentionally omitted <==

~35~

PRESIDENT SECURITIES CORPORATION

PARENT COMPANY ONLY STATEMENTS OF CASH FLOWS

YEARS ENDED DECEMBER 31, 2023 AND 2022

(Expressed in thousands of New Taiwan dollars)

CASH FLOWS FROM OPERATING ACTIVITIES
Profit before tax
Adjustments
Income and expenses having no effect on cash flows
Net valuation (gain) loss on operating securities at fair value
through profit or loss

Net valuation (gain) loss on borrowed securities and bonds
with resale agreements-short sales at fair value through profit
or loss

Expected credit impairment loss and reversal of impairment
gain

Depreciation

Amortization

Financial expense

Interest income (include financial income)

Dividend income
Share of profit of subsidiaries, associates and joint ventures
accounted for under the equity method

(Gain) loss on disposal of property and equipment

(Gain) loss on disposal of investments
(Gain) loss from lease modification
(Gain) loss on valuation of non-operating financial
instruments

Changes in assets/liabilities relating to operating activities
Changes in operating assets
Financial assets at fair value through profit or loss
Financial assets at fair value through other comprehensive
income
Bonds purchased under resale agreements
Margin loans receivable
Refinancing security deposits
Receivables from refinance guaranty
Receivable of securities business money lending
Receivables from security lending
Security lending deposits
Notes receivable
Accounts receivable
Accounts receivable - related parties
Prepayments
Other receivables
Other current assets
Changes in operating liabilities
Financial liabilities at fair value through profit or loss
Bonds sold under repurchase agreements
Deposits on short sales
Short sale proceeds payable
Guarantee deposit received on borrowed securities
Equity for each customer in the account
Accounts payable
Advance receipts
Collections on behalf of third parties
Other payable
Other financial liabilities - current
Other current liabilities YearendedDecember31
Notes
2023
2022
$
3,119,772 $
912,682
6(2)(32)
(
1,746,344 )
916,440
6(34)
1,376,328 (
1,381,017 )
6(38)
17,996 (
20,627 )
6(43)
209,372
179,026
6(43)
66,329
45,082
6(41)
873,831
163,518
6(31)(45)
(
1,433,328 ) (
976,711 )
(
3,674,590 ) (
1,283,723 )
6(10)
(
455,691 ) (
32,394 )
6(12)
12
-
(
228 )
-
(
1 ) (
98 )
6(45)
(
1,891 ) (
1,575 )
(
27,416,224 )
8,353,180
(
356,049 ) (
2,259,620 )
-
27,401
(
6,880,485 )
7,830,648
92,154 (
64,206 )
70,923 (
47,466 )
(
5,152,261 ) (
2,512,915 )
708,180 (
758,558 )
2,901,925 (
1,940,335 )
(
712 ) (
293 )
(
8,795,235 )
6,452,778
521
75
(
10,593 ) (
12,595 )
(
1,784 ) (
2,352 )
136,436
6,121,892
(
68,584 )
2,365,366
12,175,082 (
2,677,616 )
(
888,263 )
606,769
(
646,458 )
250,800
(
174,583 ) (
162,616 )
591,181
171,033
6,269,564 (
6,753,787 )
92 (
452 )
(
130,621 ) (
4,996,332 )
630,524 (
1,058,011 )
2,439,933 (
2,199,053 )
4,201 (
1,088 )

(Continued)

~36~

PRESIDENT SECURITIES CORPORATION

PARENT COMPANY ONLY STATEMENTS OF CASH FLOWS

YEARS ENDED DECEMBER 31, 2023 AND 2022

(Expressed in thousands of New Taiwan dollars)

Cash (outflow) inflow generated from operations
Interest received
Dividends received
Income tax paid
Net cash flows (used in) from operating activities
CASH FLOWS FROM INVESTING ACTIVITIES
Investments accounted for under the equity method
Acquisition of property and equipment

Acquisition of intangible assets

(Increase) decrease in other non-current assets
(Increase) decrease in prepayment for equipment
Proceeds from disposal of investments accounted for using equity
method
Net cash flows used in investing activities
CASH FLOWS FROM FINANCING ACTIVITIES
Increase (decrease) in short-term loans
Increase (decrease) in commercial papers payable
Increase (decrease) in other non-current liabilities
Payments of lease liabilities
Interest paid
Distribution of cash dividends

Net cash flows from (used in) financing activities
Effect of exchange rate changes on cash and cash equivalents
Net (decrease) increase in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year Year ended December 31
Notes
2023
2022
( $
26,149,569 ) $
5,253,250
1,263,762
986,104
4,510,095
1,581,926
(
123,012 ) (
640,299 )
(
20,498,724 )
7,180,981
- (
656,781 )
6(11)
(
62,239 ) (
92,318 )
6(15)
(
23,205 ) (
41,626 )
(
45,245 )
65,734
(
114,974 ) (
179,610 )
61,882
-
(
183,781 ) (
904,601 )
6,669,759 (
315,000 )
15,320,000 (
2,820,000 )
(
2,470 ) (
104 )
(
68,646 ) (
67,984 )
(
812,273 ) (
147,935 )
6(28)
(
567,774 ) (
2,751,521 )
20,538,596 (
6,102,544 )
8,755 (
64,000 )
(
135,154 )
109,836
3,192,794
3,082,958
$
3,057,640 $
3,192,794

The accompanying notes are an integral part of these parent company only financial statements.

==> picture [387 x 37] intentionally omitted <==

~37~

APPENDIX IV

President Securities Corporation 2023 Earnings Distribution Proposal

Unit:[：] NT$

Unappropriated earnings as of January1,2023(Note 1)	$5,323,972
Add(Less)：Due to remeasurement of defined benefitsplan(Note 2)	(131,338,534)
Add`：`Netprofit after tax of 2023	2,878,950,921
Subtotal	2,752,936,359

Less：Legal Reserve(Note 3)	(274,761,239)
Special Reserve(Note 4)	(549,522,478)
Unappropriated earnings Available for Distribution	1,928,652,642
Distribution items
─ Cash dividend(NT$1.32/ per share)	1,921,697,373

Unappropriated earnings as of December 31,2023	$6,955,269

==> picture [485 x 45] intentionally omitted <==

Note 1 [：] The amount of unappropriated earnings in the earning distributions resolved by the shareholders’ meeting of 2023
Note 2 [：] The Company has adopted T-IFRSs and unappropriated earnings was decreased by $131,338,534 due to remeasurement of defined benefits plan (included in other comprehensive income).
Note 3 [：] According to Article 237 of the Company Act, Jingshan Letter No.10802432410 and Article 23-1 of the Company’s Article of Incorporation, 10% were set aside as legal reserve.
Note 4 [：] According to Article 14 of Regulations Governing Securities Firms, and Article 23-1 of the Company’s Article of Incorporation, 20% were set aside as special reserve.
Note 5 [：] Prior years’ unappropriated earnings shall not be appropriated unless the current year’s unappropriated earnings is insufficient for distribution.
Note 6 [：] Total common shares outstanding as of December 31, 2023 was 1,455,831,343 shares.

~38~

APPENDIX V

ARTICLES OF INCORPORATION OF PRESIDENT SECURITIES CORP.

2023.05.31

Chapter I General Provisions

Article 1:

This Company is duly incorporated under the provisions set forth Company Law regarding companies limited by shares in the full name of PRESIDENT SECURITIES CORPORATION (Hereinafter referred to as the Company).

Article 2:

The Company shall engage in the following business:

H301011, a securities dealer.
H408011, an aid on futures transaction
H401011, a futures dealer
H105011, a trustee
H304011, a securities investment consulting enterprise

Article 2-1:

The scope of business of the Corporation shall be as follows:

To underwriter valuable securities
To buy and sell valuable securities in centralized trading markets as a principal;
[3.][To be consigned to buy and sell valuable securities in centralized trading markets; ]
To buy and sell valuable securities in its own business location;
To be consigned to buy and sell valuable securities in its own business location;
To act as an agent for stock affairs in valuable securities;
To engage in short-buy and margin sales for trading in valuable securities;
To render aid in futures trading;
To be consigned to buy and sell foreign valuable securities;
To engage concurrently in proprietary futures trading.
To engage concurrently in trustee
To be consigned to buy and sell foreign valuable securities;
To operate securities-related business of foreign exchange and permit by the Central Bank of Republic of China. (Taiwan)
To engage in other securities related businesses as approved by the competent authorities.

Article 2-2:

The Company may, within the scope as permitted by law, render guarantee services to subsidiaries.

Article 3:

The Company is headquartered in Taipei and may have branches duly set in appropriate locations elsewhere as approved by the government.

Article 4:

This article was deleted.

Chapter II Shares

Article 5:

The Company has New Taiwan Dollars Fifteen Billion Only, divided into 1.5 billion shares at Ten New Taiwan Dollars par value for which the board of directors is authorized with full powers to issue in

~39~

installments.

Article 5-1:

When the Company acts as a shareholder of limited liabilities, the total amount of external investment by the Company is free of the maximum limitation at 40% of the paid-in capital as set forth in Article 13 of the Company Law.

Article 6:

The company issuing and printing shares shall assign its share certificates with serial numbers, and the share certificates shall be affixed with the signatures or personal seals of the director representing the company, and shall be duly certified or authenticated by the bank which is competent to certify shares under the laws before issuance thereof.

The company may be exempted from printing any share certificate or it may either print a single share certificate or a consolidated share certificate for the shares issued. The Company shall appoint a centralized securities custody institution to make recordation of the issue of such shares.

Article 7:

For transfer of the Company’s shares, both the shareholder and the transferee shall jointly apply hereto for transfer procedures and entry into roster of shareholders, provided, that no transfer of shares shall be made within one month prior to a shareholders' regular meeting or fifteen days prior to an extraordinary meeting or within five days prior to allocation of dividend, bonus or other interests.

Article 8:

The share certificates hereof are the registered ones. The shareholders hereof shall have their names and addresses duly registered into roster of shareholders and have their impression cards of registered seals filed herein. The same is required in case of a change. The stock affairs of the Company shall be duly handled according to “Regulations Governing Stock Affairs of Public Offering Companies” promulgated by the competent authorities of the government except as otherwise provided by the laws and securities regulations.

Chapter III Shareholders' meeting Article 9:

The shareholders' meeting hereof is in regular and extraordinary ones. The former is called once per annum within six months from closing of each fiscal year. The latter may be duly called when considering it is necessary.

Article 9-1:

The shareholders’ meeting can be held by means of visual communication network, partly visual communication network or other methods promulgated by the central competent authority. Under the circumstances of calamities, incidents, or force majeure, the central competent authority may promulgate a ruling that authorizes a company, within a certain period of time can hold its shareholders’ meeting by means of visual communication network or other promulgated methods.

In case a shareholders’ meeting is proceeded via visual communication network or partly visual

communication network, the shareholders taking part in such a visual communication meeting shall be deemed to have attended the meeting in person.

For the preceding two paragraphs, the Company shall be subject to prescriptions provided for by the competent authority in charge of securities affairs, including the prerequisites, procedures, and other compliance matters.

Article 10:

The notices to a shareholders’ meeting shall be duly served to shareholders in accordance with Company Law or other laws concerned.

Article 11:

Each share hereof is entitled to one voting power. A shareholder who is unavailable to attend a

~40~

shareholders' meeting may duly issue a power of attorney with the Company provided form with scope of authorized power to appoint a proxy for the meeting. In the event a proxy is authorized by two or more shareholders, the voting power exceeding 3% of the total issued shares shall be discarded.

The aforementioned power of attorney shall be served to the Company five days in advance of the Company. In case of multiple authorization, it shall be taken on the first come first served basis unless the preceding authorization is declared withdrawn.

Article 12:

The following issues are subject to resolutions to be adopted in the shareholders’ meeting:

Establishment and amendment of the Articles of Incorporation.
Election of directors.
Approval of reports worked out by the board of directors and profit allocation of profit and coverage of loss.
Increase, decrease of capital.
Major affairs otherwise and issues as required by the Company.
Unless otherwise provided for in the Company Law, resolutions in the shareholders' meeting shall be adopted by a majority vote in the meeting attended by shareholders representing a majority of the total issued shares.

Chapter IV Directors

Article 13:

The Company has twelve directors (four independent and eight non-independent directors), to be elected by shareholders’ meeting from among the persons with disposing capacity, both having threeyear tenure of office and eligible for reelection. The candidates’ qualifications shall live up to requirements of Company Law, Securities and Exchange Law and related regulations.

Directors shall be elected from among the nominees listed in the roster of candidates by adopting candidate nomination system.

The election of independent and non-independent shall be held together but the votes shall be calculated separately.

Article 13-1:

The Company according to Article14-4, Securities and Exchange Law, establish the Audit Committee, composed of the entire number of independent directors.

Audit Committee and among independent directors shall compliance and follow by internal rules in this company and the Government related regulations.

Article 14:

The total registered shares held by all directors shall not be less than specified percentage and the shareholding and auditing shall be subject to requirements promulgated by the competent authorities of the government.

Article 15:

By attendance of two-thirds majority of directors and a majority vote of the attending directors, three~five managing directors shall be elected and, in the same manner, one chairman shall be duly elected. In case of no managing directors, one chairman and one vice chairman shall be elected from among directors in the same manner. The chairman shall chair the shareholders’ meeting, board of directors meeting and board of managing directors meeting internally, and represent the Company externally.

Article 16:

Meetings of the board of directors shall be convened by the chairman of the board of directors. Unless otherwise provided for in the Company Law, the resolutions in the board of directors meeting shall be adopted by a majority vote in the meeting attended by a majority of directors.

~41~

The Convene Notice of the meeting of board may serve to the directors by writing, E-mail or facsimile. In the chairman’s absence, the vice chairman shall act in the place. In absence of both, the chairman shall appoint a managing director to act in place otherwise one managing director shall be elected from among themselves to act in the place. A director unavailable to the meeting may duly authorize another director to attend a board meeting on his behalf.

Article 17:

The board of directors shall have the following functions:

To work out the Company’s business plans;
To work out organizational regulations, major articles and contracts;
To work out budgeting and account closing;
To propose for capital increase, decrease;
To propose profit allocation or loss coverage;
To appoint, discharge managerial officers and key staff;
To resolve establishment and dissolution of a branch;
To resolve major business affairs otherwise;
To exercise other functions endowed by laws and shareholders’ meeting.

Article 17-1:

The Board of Directors may, complying with the law or taking into account the necessity, set up any functional committees whose functions, responsibilities, qualifications of committee members, process of exercising the power and so forth to be formulated by the board of directors.

Article 18:

This article was deleted.

Article 19:

The board of directors is authorized to determine the remuneration for directors taking into account the extent and value of the participation for the management of the Corporation and the standards of the industry. Independent directors receive fixed monthly compensation and shall not participate in the allocation of remuneration to directors and supervisors set forth in Article 23.

Article 19-1

The Company may act as a policyholder of liability insurance for the benefit of directors, supervisors, and managers. The board of directors is authorized to determine the limit of liability and the related matters.

Chapter V Managerial officers

Article 20:

The Company has one president to enforce issues as resolved in the board of directors and take charge of overall business operation of the Company, to be nominated by the chairman and duly appointed and discharged in the board of directors. The Company has a certain number of vice president, be nominated by the president and duly appointed and discharged in the board of directors.

Chapter VI Accounting

Article 21:

The fiscal year hereof is beginning January 1 until December 31 each calendar year.

Article 22:

Upon closing of each fiscal year, the board of directors shall work out the following documents according to Article 228 of the Company Law to be audited by Audit Committee thirty days in advance of shareholders' regular meeting and the Audit Committee shall issue a report accordingly to be approved by the shareholders' meeting:

Business report

~42~

2. Financial statements

3. Proposals of profit allocation or loss coverage

Article 23:

In an effort to encourage employees and management, the Company will distribute compensation to employees and the Directors from pre-tax profits. Where the company has pre-tax profits, the total value of funds to be distributed among employees shall not be less than 1.6% of pre-tax profits; while the total value of funds to be distributed among the Directors shall not be more than 2% of pre-tax profits. If the company has losses carried forward, compensation should only be paid to employees and Directors after funds have been set aside as reserve for such losses.

Employees’ compensation should be paid in the form of cash or company shares. A resolution regarding compensation to be distributed should be passed at a Board of Director’s meeting by a majority vote at a meeting attending by two-thirds or more of the Directors, after which the results should be reported to the shareholders.

Only those individuals meeting the specific criteria of employees shall be considered employees for the purposes of the employees’ compensation distributions.

Article 23-1:

If there are surplus profits after the closing of the books in a given fiscal year, then, after paying applicable taxes and making up losses from previous years, the company should set aside 10% of remaining profits as legal reserve, 20% as special reserve, and any other reserves as required by applicable laws or regulations, and, if any profits still remain, the board of directors shall put forth a motion to the shareholders for distribution of the remaining profits to shareholders.

In the event that the remaining profits represent less than 5% of the value of the company’s paid-in capital, then no such distribution is necessary.

The Company’s dividend policy should be based on the long-term financial structure and stability of the Company so as to allow for continued growth, which creates the best value for shareholders. The dividend distribution in a given year shall not be less than 70% of the surplus profits available for distribution. Stock dividends should not account for less than 50% of the total dividend distributed, and cash shall not account for more than 50% of the total dividend distributed. However, the Company may take into consideration the actual status of the Company’s operations and future capital needs when determining an appropriate ratio of cash and shares for the dividend distribution.

Chapter VII Bylaws

Article 24:

The organizational rules and operational rules shall be separately worked out by the board of directors.

Article 25:

Any matters inadequately provided for herein shall be subject to Company Law and managerial regulations concerned.

Article 26:

These Articles were duly established on November 26, 1988 and the first amendment was approved on December 28, 1988; ------------; the thirty-first amendment on May 31, 2023.

The effective date of Article 13, which were revised on May 31, 2023, is January 1, 2024.

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APPENDIX VI 2022.6.23

President Securities Corporation Rules and Procedures of Shareholders’ Meeting

Article01

These Rules are prescribed in accordance with Article 5 of the Corporate Governance Best-Practice Principles for TSE/GTSM Listed Companies for the purpose of establishing good governance, strengthening the supervisory functions and administration by the shareholders’ meeting.

Article02

Except as otherwise provided by the laws and regulations or the Articles of Incorporation of the Company, the shareholders’ meetings of the Company shall be in accordance with these Rules.

Article03

Except as otherwise provided by the laws and regulations, the shareholders’ meeting of the Company shall be convened by the Board of Directors.

Changes to how the Company convenes its shareholders meeting shall be resolved by the board of directors, and shall be made no later than mailing of the shareholders meeting notice.

The Company shall prepare electronic versions of the shareholders meeting notice and proxy forms, and the origins of and explanatory materials relating to all proposals, including proposals for ratification, matters for deliberation, or the election or dismissal of directors or supervisors, and upload them to the Market Observation Post System (MOPS) before 30 days before the date of a regular shareholders meeting or before 15 days before the date of a special shareholders meeting. The Company shall prepare electronic versions of the shareholders meeting agenda and supplemental meeting materials and upload them to the MOPS before 21 days before the date of the regular shareholders meeting or before 15 days before the date of the special shareholders meeting. If, however, the Company has the paid-in capital of NT$10 billion or more as of the last day of the most current fiscal year, or total shareholding of foreign shareholders and PRC shareholders reaches 30% or more as recorded in the register of shareholders of the shareholders meeting held in the immediately preceding year, transmission of these electronic files shall be made by 30 days before the regular shareholders meeting. In addition, before 15 days before the date of the shareholders meeting, the Company shall also have prepared the shareholders meeting agenda and supplemental meeting materials and made them available for review by shareholders at any time. The meeting agenda and supplemental materials shall also be displayed at the Company and the professional shareholder services agent designated thereby.

This Corporate shall make the meeting agenda and supplemental meeting materials in the preceding paragraph available to shareholders for review in the following manner on the date of the shareholders meeting:

For physical shareholders meetings, to be distributed on-site at the meeting.
For hybrid shareholders meetings, to be distributed on-site at the meeting and shared on the virtual meeting platform.
For virtual-only shareholders meetings, electronic files shall be shared on the virtual meeting platform.

The meeting notice and the public announcement of the shareholders meeting shall expressly indicate

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the reasons for convening the meeting. The meeting notice can be served by means of electricity facilities if agreed by the noticed party.

Election or dismissal of directors, supervisors, proposed amendment to the Articles of Incorporation, proposed dissolution, merger, or split of the Company, event(s) of the conditions provided in the first paragraph of Article 185 of the Company Act, or Article 26-1, or Article 43-6 of the Securities And Exchange Act, or Articles 56-1 and 60-2 of the Regulations Governing the Offering and Issuance of Securities by Securities Issuers must be indicated item by item in the reasons for convening the meeting in the meeting notice and none of them can be proposed by way of extempore motion.

Where re-election of all directors and supervisors as well as their inauguration date is stated in the notice of the reasons for convening the shareholders meeting, after the completion of the re-election in said meeting such inauguration date may not be altered by any extraordinary motion or otherwise in the same meeting.

A shareholder who holds 1% or more of the total issued shares of the Company may propose in writing one and only one proposal in advance to be included in the agenda for discussion and resolution at the shareholders meeting. All additional proposals, if any, proposed by the shareholder shall be excluded from the agenda.

A shareholder proposal is provided for urging the corporation to promote public interests or fulfill its social responsibilities may still be included in the agenda by the board of directors. The Board of Directors may decide to exclude from the agenda any proposal proposed by the shareholder which runs into any of the conditions provided in the fourth paragraph of Article 172 -1 of the Company Act.

The Company shall make public announcement about when and where to submit proposal prior to the commencement date of the suspension of transfer of shares in the Company and the opening period for proposal acceptance shall not less than 10 days.

The proposal proposed by the shareholder shall be written in not more than 300 Chinese characters or shall otherwise be excluded from the agenda. The shareholder who has proposed a proposal shall personally attend the general shareholders meeting and participate in the discussion of his/her proposal or he/she may duly designate a proxy to act on his/her behalf at the meeting.

The Company shall give a notice to the shareholder prior to the meeting date regarding the Company’s handling of the proposal he/she has proposed. The Company shall, item by item, indicate in the meeting notice all of the proposals submitted in conformity to this Article and the reasons why the other proposals are excluded from the agenda.

Article04

The shareholder may designate a proxy to attend the shareholders meeting on his/her behalf by signing and indicating the scope of authority in the proxy form prepared by the Company.

Each shareholder may sign one and only one proxy form to designate one and only one proxy. The signed proxy form must be served to the Company five days prior to the meeting day. In case of multiple signed proxies from the same shareholder, the first one served to the Company shall prevail except when the shareholder has expressed to cancel the proxy.

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The shareholder who, after his/her signed proxy has been served to the Company, is to attend the meeting in person or to exercise his/her voting power by way of electronic transmission shall notify the Company in writing no later than two days prior to the meeting day of his/her intention to cancel his/her signed proxy or the ballots cast by his/her designated proxy present at the meeting shall govern for the purpose of vote counting.

If, after a proxy form is delivered to the Company, a shareholder wishes to attend the shareholders meeting online, a written notice of proxy cancellation shall be submitted to the Company two business days before the meeting date. If the cancellation notice is submitted after that time, votes cast at the meeting by the proxy shall prevail.

Article05

The shareholders meeting shall be convened at the place where the Company is located or any other appropriate place convenient for shareholders to attend and shall commence no earlier than 9:00AM and no later than 3:00PM on the meeting date. The venue, date and hour of the meeting shall be determined in consideration of the opinion of the independent director.

The restrictions on the place of the meeting shall not apply when the Company convenes a virtual-only shareholders meeting.

Article06

The Company shall specify in its shareholders meeting notices the time during which attendance registrations for shareholders, solicitors and proxies (collectively "shareholders") will be accepted, the place to register for attendance, and other matters for attention.

The time during which shareholder attendance registrations will be accepted, as stated in the preceding paragraph, shall be at least 30 minutes prior to the time the meeting commences. The place at which attendance registrations are accepted shall be clearly marked and a sufficient number of suitable personnel assigned to handle the registrations. For virtual shareholders meetings, shareholders may begin to register on the virtual meeting platform 30 minutes before the meeting starts. Shareholders completing registration will be deemed as attend the shareholders meeting in person.

Shareholders shall attend shareholders meetings based on attendance cards, sign-in cards, or other certificates of attendance. Solicitors soliciting proxy forms shall also bring identification documents for verification.

The shareholder or his/her proxy who attends the meeting may turn in his/her signed attendance card instead of signing in the attendance book.

The Company shall deliver to each shareholder the agenda, annual report, attendance ID, speaking request form, ballots, other meeting materials and, where applicable, the ballots for election of directors and/or Independent Directors.

A government agency shareholder or an institutional shareholder may be represented at the shareholders’ meeting by one or more proxies. An institution acting as the proxy for a shareholder may appoint one and only one representative to act on behalf of the principal of the proxy at the meeting.

In the event of a virtual shareholders meeting, shareholders wishing to attend the meeting online shall

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In the event of a virtual shareholders meeting, the Company shall upload the meeting agenda book, annual report and other meeting materials to the virtual meeting platform at least 30 minutes before the meeting starts, and keep this information disclosed until the end of the meeting.

Article6-1

To convene a virtual shareholders meeting, the Company shall include the follow particulars in the shareholders meeting notice:

How shareholders attend the virtual meeting and exercise their rights.
Actions to be taken if the virtual meeting platform or participation in the virtual meeting is obstructed due to natural disasters, accidents or other force majeure events, at least covering the following particulars:
A. To what time the meeting is postponed or from what time the meeting will resume if the above obstruction continues and cannot be removed, and the date to which the meeting is postponed or on which the meeting will resume.
B. Shareholders not having registered to attend the affected virtual shareholders meeting shall not attend the postponed or resumed session.
C. In case of a hybrid shareholders meeting, when the virtual meeting cannot be continued, if the total number of shares represented at the meeting, after deducting those represented by shareholders attending the virtual shareholders meeting online, meets the minimum legal requirement for a shareholder meeting, then the shareholders meeting shall continue. The shares represented by shareholders attending the virtual meeting online shall be counted towards the total number of shares represented by shareholders present at the meeting, and the shareholders attending the virtual meeting online shall be deemed abstaining from voting on all proposals on meeting agenda of that shareholders meeting.
D. Actions to be taken if the outcome of all proposals have been announced and extraordinary motion has not been carried out.
To convene a virtual-only shareholders meeting, appropriate alternative measures available to shareholders with difficulties in attending a virtual shareholders meeting online shall be specified.

Article07

Where the shareholders meeting is convened by the Board of Directors, the meeting shall be presided by the chairman of the Board of Directors. If the chairman is for whatever reason unable to carry out his/her functions at the meeting, the vice chairman shall act in his/her stand. If the Company has no vice chairman or the vice chairman is for whatever reason unable to carry out the function at the meeting either, the chairman shall appoint a standing director to act in his/her stand at the meeting. If the Company has no standing director, the chairman shall appoint a director to act in his/her stand. If above are not applicable, the directors or standing directors (if any) shall elect one from among themselves to preside the meeting.

If the abovementioned position of chairman be filled by a managing director or director, said managing director or director shall be one who has held office for more than six months and understands the company's financial and business conditions. The same applies if the position of chairman is held by a corporate director’s representative.

Where the shareholders meeting is convened by any person legally authorized to do so other than the

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Board of Directors, the meeting shall be presided by the convener.

Where there are two or more conveners, they shall elect one from among themselves to preside the meeting.

The Company may appoint legal counsel(s), certified public accountant(s) and/or the relevant personnel to attend the shareholders’ meeting without the right to vote.

Article08

The company, beginning from the time it accepts shareholder attendance registrations, shall make an uninterrupted audio and video recording of the registration procedure, the proceedings of the shareholders meeting, and the voting and vote counting procedures.

The abovementioned video and audio materials shall be kept for at least one year. However, in the event that a lawsuit has been filed by shareholder(s) in accordance with Article 189 of the Company Act, said video and audio recordings shall be kept until the end of said lawsuit.

Where a shareholders meeting is held online, the Company shall keep records of shareholder registration, sign-in, check-in, questions raised, votes cast and results of votes counted by the Company, and continuously audio and video record, without interruption, the proceedings of the virtual meeting from beginning to end.

The information and audio and video recording in the preceding paragraph shall be properly kept by the Company during the entirety of its existence, and copies of the audio and video recording shall be provided to and kept by the party appointed to handle matters of the virtual meeting.

In case of a virtual shareholders meeting, the Company is advised to audio and video record the backend operation interface of the virtual meeting platform.

Article09

Attendance at shareholders meetings shall be calculated based on numbers of shares. The number of shares in attendance shall be calculated according to the shares indicated by the attendance book and sign-in cards handed in, and the shares checked in on the virtual meeting platform, plus the number of shares whose voting rights are exercised by correspondence or electronically.

The chair shall call the meeting to order at the appointed meeting time and disclose information concerning the number of nonvoting shares and number of shares represented by shareholders attending the meeting.

However, when the attending shareholders do not represent a majority of the total number of issued shares, the chair may announce a postponement, provided that no more than two such postponements, for a combined total of no more than one hour, may be made. If the quorum is not met after two postponements and the attending shareholders still represent less than one third of the total number of issued shares, the chair shall declare the meeting adjourned. In the event of a virtual shareholders meeting, the Company shall also declare the meeting adjourned at the virtual meeting platform.

If the quorum is not met after two postponements as referred to in the preceding paragraph, but the attending shareholders represent one third or more of the total number of issued shares, a tentative

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resolution may be adopted pursuant to Article 175, paragraph 1 of the Company Act; all shareholders shall be notified of the tentative resolution and another shareholders meeting shall be convened within one month. In the event of a virtual shareholders meeting, shareholders intending to attend the meeting online shall re-register to the Company in accordance with Article 6.

If, before the meeting ends, the total shares represented at the meeting account for half or more of the total issued shares of the Company, the chairperson may submit the temporary resolution adopted to the meeting for voting pursuant to Article 174 of the Company Act.

Article10

Where the shareholders’ meeting is convened by the Board of Directors, the agenda shall be determined by the Board of Directors and the meeting shall proceed according to the agenda except otherwise changed by the resolution adopted by the shareholders’ meeting.

Where the shareholders’ meeting is convened by any person legally authorized to do so other than the Board of Director, the preceding paragraph shall apply.

The chairperson shall not forthwith announce to adjourn the meeting before the agenda provided in the two preceding paragraphs (including extempore motions) is duly completed except on the resolution adopted by the shareholders’ meeting for him/her to do so. In the event the chairperson announces to adjourn the meeting in contravention to these Rules, the other members of the Board of Directors present shall promptly assist the shareholders present at the meeting to duly elect, by a majority vote, one from among the directors present to preside to continue the meeting.

The chair shall allow ample opportunity during the meeting for explanation and discussion of proposals and of amendments or extraordinary motions put forward by the shareholders; when the chair is of the opinion that a proposal has been discussed sufficiently to put it to a vote, the chair may announce the discussion closed, call for a vote, and schedule sufficient time for voting.

Article11

The shareholder shall fill out the speaking request form floor before making statement at the meeting and he/she will indicate the gist of his/her statement to make, shareholder account number (or attendance card number) and shareholder name. The chairperson will decide the order for the shareholders to make their statement.

The shareholder who has only filled out the speaking request form floor without actually doing so shall be deemed not having made any statement. In case of any discrepancy between the gist of statement indicated in the shareholder’s speaking request and the actual statement made, the actual statement made shall govern.

The shareholder may speak on each proposal twice and only twice for not more than five minutes each except otherwise approved by the chairperson, provided that the chairperson may stop at any time the shareholder from taking the floor if such shareholder has acted in contravention of these Rules or is making statement out of the scope of the proposal being discussed.

No shareholder may interrupt the shareholder taking the floor without the consent of both of the chairperson and the shareholder taking the floor. The chairperson shall restrain any shareholder from acting in breach of the above.

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An institutional shareholder who is represented by two or more appointed representatives at the meeting will have its statement on the same proposal made (if any) by one and only one of its appointed representatives.

The chairperson may personally respond to the statement made by the shareholder or appoint the relevant personnel to do so.

Where a virtual shareholders meeting is convened, shareholders attending the virtual meeting online may raise questions in writing at the virtual meeting platform from the chair declaring the meeting open until the chair declaring the meeting adjourned. No more than two questions for the same proposal may be raised. Each question shall contain no more than 200 words. The regulations in paragraphs 1 to 5 do not apply.

As long as questions so raised in accordance with the preceding paragraph are not in violation of the regulations or beyond the scope of a proposal, it is advisable the questions be disclosed to the public at the virtual meeting platform.

Article12

The votes at the shareholders’ meeting will be counted based on the number of shares.

The non-voting shares represented at the meeting shall be disregarded for the purpose of counting votes for adopting the resolution.

Shareholders who have personal conflict of interests against the Company on certain proposal shall not vote on that proposal, either for himself/herself or for another shareholder by proxy.

The non-voting shares provided in the preceding paragraph shall be excluded from the calculation of voting shares represented at the meeting.

Except trust businesses or stock affair agency approved by the competent securities authority, a proxy acting on behalf of two or more shareholders at the meeting will have the voting right by proxy representing not exceeding 3% of the total issued shares of the Company. Any vote cast by the proxy in excess of the said representation limit will be ignored.

Article13

The shareholder will have one vote for each share held except where there is limitation on the voting right or the voting right is denied by operation of the second paragraph of Article 179 of the Company Act.

The voting power at a shareholders' meeting may be exercised by way of electronic transmission described in the shareholders' meeting notice. A shareholder who exercises his/her voting power at a shareholders meeting by way of electronic transmission shall be deemed to have attended the said shareholders' meeting in person, but shall be deemed to have waived his/her voting power in respective of any extemporary motion(s) and/or the amendment(s) to the contents of the original proposal(s) at the said shareholders' meeting.

In case a shareholder elects to exercise his/her/its voting power by way of electronic transmission,

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his/her declaration of intention shall be served to the company two days prior to the scheduled meeting date of the shareholders' meeting, whereas if two or more declarations of the same intention are served to the company, the first declaration of such intention received shall prevail; unless an explicit statement to revoke the previous declaration is made in the declaration which comes later.

After a shareholder has exercised voting rights by correspondence or electronic means, in the event the shareholder intends to attend the shareholders meeting in person or online, a written declaration of intent to retract the voting rights already exercised under the preceding paragraph shall be made known to the Company, by the same means by which the voting rights were exercised, before two business days before the date of the shareholders meeting. If the notice of retraction is submitted after that time, the voting rights already exercised by correspondence or electronic means shall prevail. When a shareholder has exercised voting rights both by correspondence or electronic means and by appointing a proxy to attend a shareholders meeting, the voting rights exercised by the proxy in the meeting shall prevail.

In case a shareholder has exercised his/her voting power by way of electronic transmission, and has also authorized a proxy to attend the shareholders' meeting in his/her behalf, then the voting power exercised by the authorized proxy for the said shareholder shall prevail.

Except as otherwise provided by the Company Act or the Articles of Incorporation of the Company, the resolution of a shareholders meeting shall be adopted by the majority vote represented at the meeting. For the purpose of voting, the chairperson shall announce the total number of votes represented and currently present at the meeting or appoint a personnel to do so each time before calling for voting on each proposal. The resolutions, whether agreement/disagreement/waiver, shall be uploaded to the MOPS website on the day which shareholder’ meeting was held.

Upon voting for resolution on a proposal, if no opposition is expressed by shareholders present at the meeting, and shareholders either through electronic or written form, in response to the chairperson’s invitation for opinion on that proposal, the resolution shall be deemed adopted unanimously and operate as one adopted by voting. In case an opposition is expressed, the proposal shall be voted in accordance with the preceding paragraph.

Where there is revision or substitute proposal on the same proposal, the chairperson shall combine them with that proposal for the purpose of determining their order of voting. If one of the proposals is adopted, the other proposals shall be deemed vetoed and no voting on them will be necessary.

The chairperson shall appoint vote supervisor and vote counter during the voting and the vote supervisor shall also be a shareholder. The vote counting for voting or election motions at the shareholders' meeting shall be conducted publicly at the meeting venue, after vote counting has been completed, the voting results shall be announced on the spot (including the tallied number of votes) and recorded accordingly.

When the Company convenes a virtual shareholders meeting, after the chair declares the meeting open, shareholders attending the meeting online shall cast votes on proposals and elections on the virtual meeting platform before the chair announces the voting session ends or will be deemed abstained from voting.

In the event of a virtual shareholders meeting, votes shall be counted at once after the chair announces the voting session ends, and results of votes and elections shall be announced immediately.

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When the Company convenes a hybrid shareholders meeting, if shareholders who have registered to attend the meeting online in accordance with Article 6 decide to attend the physical shareholders meeting in person, they shall revoke their registration two days before the shareholders meeting in the same manner as they registered. If their registration is not revoked within the time limit, they may only attend the shareholders meeting online.

When shareholders exercise voting rights by correspondence or electronic means, unless they have withdrawn the declaration of intent and attended the shareholders meeting online, except for extraordinary motions, they will not exercise voting rights on the original proposals or make any amendments to the original proposals or exercise voting rights on amendments to the original proposal.

Article14

The election of a director and or supervisor shall be in accordance with the relevant bylaw of the Company and the result of the election, including list of elected directors and Independent Directors and the number of votes they received, shall be announced on site.

The ballots of the election provided in the preceding paragraph shall be sealed and signed by the personnel supervising the voting and properly kept for at least one year or up through the conclusion of the shareholder action (if any) initiated under Article 189 of the Company Act.

Article15

Each resolution adopted by the shareholders’ meeting must be taken down in the meeting minutes which must be signed or impressed with the seal of the chairperson with a copy thereof sent to the shareholders each within twenty (20) after the end of the meeting.

The Company may publish the meeting minutes provided in the preceding paragraph on the MOPS website.

The meeting minutes shall accurately record the year, month, day, and place of the meeting, the chair's full name, the methods by which resolutions were adopted, and a summary of the deliberations and their voting results (including the number of voting rights), and disclose the number of voting rights won by each candidate in the event of an election of directors or supervisors.

Where a virtual shareholders meeting is convened, in addition to the particulars to be included in the meeting minutes as described in the preceding paragraph, the start time and end time of the shareholders meeting, how the meeting is convened, the chair's and secretary's name, and actions to be taken in the event of disruption to the virtual meeting platform or participation in the meeting online due to natural disasters, accidents or other force majeure events, and how issues are dealt with shall also be included in the minutes.

When convening a virtual-only shareholder meeting, other than compliance with the requirements in the preceding paragraph, the Company shall specify in the meeting minutes alternative measures available to shareholders with difficulties in attending a virtual-only shareholders meeting online.

Article16

On the day of a shareholders meeting, the Company shall compile in the prescribed format a statistical statement of the number of shares obtained by solicitors through solicitation, the number of shares represented by proxies and the number of shares represented by shareholders attending the meeting by

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correspondence or electronic means, and shall make an express disclosure of the same at the place of the shareholders meeting. In the event a virtual shareholders meeting, the Company shall upload the above meeting materials to the virtual meeting platform at least 30 minutes before the meeting starts, and keep this information disclosed until the end of the meeting.

During the Company's virtual shareholders meeting, when the meeting is called to order, the total number of shares represented at the meeting shall be disclosed on the virtual meeting platform. The same shall apply whenever the total number of shares represented at the meeting and a new tally of votes is released during the meeting.

For each resolution adopted the publication of which is required by law or which belongs to the TWSErequired material information, the Company shall, within the applicable time limit, transmit it to the MOPS.

Article17

The working staff of the meeting shall each wear an ID tag or badge.

The chairperson may direct the order-maintaining personnel or security guard to maintain the order of the meeting. The order-maintaining personnel or security guard shall each wear a badge or ID tag bearing their designation when performing their functions at the meeting.

The chairperson may stop the shareholder from making statements by using any equipment other than those readily facilitated by the meeting (if any).

If the shareholder ignores the chairperson’s request for him/her to retrain himself/herself from acting in contravention of these Rules at the cost of the proceeding of the meeting, the chairperson may direct the order-maintaining personnel or security guard at the meeting to escort such shareholder out of the venue of the meeting.

Article18.

The chairperson may call the meeting to a break as he/she sees fit. In the event of force majeure. The chairperson may suspend the meeting and announce the appropriate date and hour to resume the meeting. In the event that the venue of the shareholders’ meeting is kept from being available for use before the agenda (including extempore motions) is discussed in full, the shareholders’ meeting may adopt the resolution for continuing the meeting elsewhere. The shareholders’ meeting may adopt the resolution pursuant to Article 182 of the Company Act to re-schedule or resume the meeting within five days.

Article19

In the event of a virtual shareholders meeting, the Company shall disclose real-time results of votes and election immediately after the end of the voting session on the virtual meeting platform according to the regulations, and this disclosure shall continue at least 15 minutes after the chair has announced the meeting adjourned.

Article20

When the Company convenes a virtual-only shareholders meeting, both the chair and secretary shall be in the same location, and the chair shall declare the address of their location when the meeting is called to order.

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Article21

In the event of a virtual shareholders meeting, the Company may offer a simple connection test to shareholders prior to the meeting, and provide relevant real-time services before and during the meeting to help resolve communication technical issues.

In the event of a virtual shareholders meeting, when declaring the meeting open, the chair shall also declare, unless under a circumstance where a meeting is not required to be postponed to or resumed at another time under Article 44-20, paragraph 4 of the Regulations Governing the Administration of Shareholder Services of Public Companies, if the virtual meeting platform or participation in the virtual meeting is obstructed due to natural disasters, accidents or other force majeure events before the chair has announced the meeting adjourned, and the obstruction continues for more than 30 minutes, the meeting shall be postponed to or resumed on another date within five days, in which case Article 182 of the Company Act shall not apply.

For a meeting to be postponed or resumed as described in the preceding paragraph, shareholders who have not registered to participate in the affected shareholders meeting online shall not attend the postponed or resumed session.

For a meeting to be postponed or resumed under the second paragraph, the number of shares represented by, and voting rights and election rights exercised by the shareholders who have registered to participate in the affected shareholders meeting and have successfully signed in the meeting, but do not attend the postpone or resumed session, at the affected shareholders meeting, shall be counted towards the total number of shares, number of voting rights and number of election rights represented at the postponed or resumed session.

During a postponed or resumed session of a shareholders meeting held under the second paragraph, no further discussion or resolution is required for proposals for which votes have been cast and counted and results have been announced, or list of elected directors and supervisors.

When the Company convenes a hybrid shareholders meeting, and the virtual meeting cannot continue as described in second paragraph, if the total number of shares represented at the meeting, after deducting those represented by shareholders attending the virtual shareholders meeting online, still meets the minimum legal requirement for a shareholder meeting, then the shareholders meeting shall continue, and not postponement or resumption thereof under the second paragraph is required.

Under the circumstances where a meeting should continue as in the preceding paragraph, the shares represented by shareholders attending the virtual meeting online shall be counted towards the total number of shares represented by shareholders present at the meeting, provided these shareholders shall be deemed abstaining from voting on all proposals on meeting agenda of that shareholders meeting.

When postponing or resuming a meeting according to the second paragraph, the Company shall handle the preparatory work based on the date of the original shareholders meeting in accordance with the requirements listed under Article 44-20, paragraph 7 of the Regulations Governing the Administration of Shareholder Services of Public Companies.

For dates or period set forth under Article 12, second half, and Article 13, paragraph 3 of Regulations Governing the Use of Proxies for Attendance at Shareholder Meetings of Public Companies, and Article 44-5, paragraph 2, Article 44-15, and Article 44-17, paragraph 1 of the Regulations Governing the

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Administration of Shareholder Services of Public Companies, the Company hall handle the matter based on the date of the shareholders meeting that is postponed or resumed under the second paragraph.

Article22

When convening a virtual-only shareholders meeting, the Company shall provide appropriate alternative measures available to shareholders with difficulties in attending a virtual shareholders meeting online.

Article23

These Rules and all subsequent amendments shall come into force after being adopted by the shareholders’ meeting.

These Rules were duly established on April 16[th] , 1998 and the first amendment was approved on June 25[th] , 2010. The second amendment was approved on June 24[th] , 2011. The third amendment was approved on June 22[th] , 2012. The fourth amendment was approved on June 19[th] , 2013. The fifth amendment was approved on June 18[th] , 2014. The sixth amendment was approved on June 22 th, 2017. The seventh amendment was approved on July 20th, 2021. The eighth amendment was approved on June 23th, 2022.

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APPENDIX VII

Rules for Governing the Election of Directors of President Securities Corp.

Election of directors of the President Securities Corporation (hereinafter referred to as the Corporation), unless otherwise provided in the Company Act, Securities and Exchange Act or the Corporation’s bylaws, shall be conducted in accordance with these rules.
Election of directors of the Corporation shall be conducted at the shareholders’ meeting.
Election of directors of the Corporation shall be conducted through cumulative voting; each share shall confer voting rights equal in number to the number of directors to be elected; votes may be cast for a single candidate or allocated to multiple candidates.
3-1 Election of directors of the Corporation shall be conducted using the candidate nomination system. The Corporation’s independent directors and non-independent directors shall be concurrently elected, but with their ballots separately calculated.
3-2 For election of directors, shareholders can exercise voting rights either through present or electronic.
At an election of directors of the Corporation as conducted in accordance with the quota as provided by the laws, candidates that receive the highest number of voting rights shall be elected as directors. When two or more candidates receive identical number of votes and the number of elected candidates exceeds the stipulated number of posts, said candidates shall draw lots to decide the appointments, and the chairperson shall draw lots on behalf of nonattendee(s).
Matters pertaining to the monitoring and counting of ballots shall be handled by ballot counters and a scrutineer as designated by the chairperson at the start of the election.
During the preparation of ballots, the Corporation shall indicate the number of voting rights on each ballot in accordance with the respective shareholder attendance identification number. This is not applicable to voters exercising their voting rights through electronic means and ballots shall not be separately prepared for such voters. Said voters shall carry out voting through the website platform as indicated in the notice of meeting.
Should a candidate be a shareholder, voters are required to fill in said candidate’s name and shareholder number in the “Candidate” column of the ballot; should a candidate be a nonshareholder, voters shall fill in said candidate’s full-name and ID number. In the event that the candidate is a shareholder that is a government agency or juristic person, voters shall fill in said government agency or juristic person’s name in the “Candidate” column of the ballot, and may also fill in the name of said government agency or juristic person’s representative. Should there be more than one representative, only one representative’s name may be included in the ballot.
A ballot shall be deemed invalid under any of the following circumstances:

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1) Ballot cast was not prepared by the Corporation.
2) Blank ballot cast into the ballot box.
3) Handwriting is illegible.
4) Name (full name) of election candidate in ballot is identical to that of another shareholder, and it is not distinguished by the inclusion of a shareholder number or ID number.
5) Name and/or shareholder number of candidate, who is a shareholder, is inconsistent with records in shareholder register; name and/or ID number of candidate, who is a non-shareholder, is found to be inconsistent after verification.
6) A single ballot containing names of two or more candidates.
7) Other texts, excluding the name (full name) and shareholder number (ID number) of candidates, are found within the ballot. Not applicable if ballot was handled in accordance with Article VII.
Counting of votes will commence immediately after voting is completed, and election results will be announced at the meeting by the chairperson or master of ceremonies.
The Board of Directors shall respectively issue notices of appointment to elected directors.
These rules are required to be passed at a shareholders’ meeting before their implementation; any amendment to these rules are also required to be approved at a shareholders’ meeting.

The company will set up an audit committees to replace supervisors since the tenth Board of Meeting. The adjustment of supervisors’ regulations will cease to apply till the tenth Board election.

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Appendix VIII

Shareholdings of Directors

In accordance with Article 26 of the Securities and Exchange Act: The aggregate minimum shareholding for all directors is 34,939,952 shares.
As of the date of record for the General Shareholder Meeting, i.e., April 29, 2024, the total shareholdings of directors were as follows:

Title	Name	Shares Held	Shares Ratio%
Director	KAI NAN INVESTMENT CO.,LTD	42,253,212	2.902
Director	CANKING INVESTMENT CORP.,LTD	17,947,517	1.233
Director	HUI TUNG INVESTMENT CO.,LTD	10,819,675	0.743
Director	LEG HORN INVESTMENT CO.,LTD	13,162,425	0.904
Director	TA LE INVESTMENT HOLDING CO.,LTD	4,850,749	0.333
Director	CHINA F.R.P. CORPORATION.	10,400,000	0.714
Director	DUH, BOR-TSANG	4,444,693	0.305
Director	LI, ZONG-SYUN	870,387	0.060
Director	JUANG, JING-YAU	3,182	0
Independent Director	PAI , CHUN-NAN	0	0
Independent Director	SONG, YUNG-FONG	0	0
Independent Director	HORNG , YUAN-CHUAN	0	0
Independent Director	LIANG, YANN-PING	0	0
TOTAL		104,751,840	7.195

~58~

AI assistant

PSC — AGM Information 2024

52209_rns_2024-07-09_00e3fa65-5c32-456a-8b49-3456ee23fdae.pdf

2024 General Shareholders’ Meeting Meeting Agenda

Table of Contents

1. Meeting Agenda of 2024 General Shareholders’ Meeting

2. Report Items

(1) 2023 Business Report

(2) 2023 Audit Committee's Review Report

(3) 2023 Remuneration of Employees and Directors

3. Items to be Adopted

■ Motion 1 (proposed by the Board of Directors)

■ Motion 2 (Proposed by the Board of Directors)

4. Items for Discussion

■ Item 1 (Proposed by the Board of Directors)

5. Election item

 Item 1 (Proposed by the Board of Directors)

Information of Candidates Nominated for Directors

6. Extraordinary Motions

 Motion 1 (proposed by the Board of Directors)

7. Provisional Motions

8. Meeting Adjourned

2023 Business Report

[Macroeconomic Environment and Business Plan]

[Implementation and Results]

[Profitability Analysis and Operating Income/Expenditure in Budget Execution]

[Future Operations]

Audit Committee’s Review Report

To: The General Meeting of Shareholders as of year 2024

Opinion

Basis for Opinion

Key audit matters

Fair value measurement of unlisted stocks without active market

Description

How our audit addressed the matter

Impairment assessment of investments accounted for under the equity method

Description

How our audit addressed the matter

Other matter – Parent company only financial reports

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

Auditors’ responsibilities for the audit of the consolidated financial statements

Lin, Se-Kai

Independent Auditors

Lo, Chiao-Sen

For and on behalf of PricewaterhouseCoopers, Taiwan March 4, 2024

PRESIDENT SECURITIES CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS DECEMBER 31, 2023 AND 2022

PRESIDENT SECURITIES CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS

DECEMBER 31, 2023 AND 2022

PRESIDENT SECURITIES CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME YEARS ENDED DECEMBER 31, 2023 AND 2022

PRESIDENT SECURITIES CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME YEARS ENDED DECEMBER 31, 2023 AND 2022

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

PRESIDENT SECURITIES CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY YEARS ENDED DECEMBER 31, 2023 AND 2022

PRESIDENT SECURITIES CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

YEARS ENDED DECEMBER 31, 2023 AND 2022

PRESIDENT SECURITIES CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS

YEARS ENDED DECEMBER 31, 2023 AND 2022

INDEPENDENT AUDITORS’ REPORT TRANSLATED FROM CHINESE

Opinion

Basis for opinion

Key audit matters

Fair value measurement of unlisted stocks without active market

Description

How our audit addressed the matter

Impairment indication assessment of investments accounted for under the equity method

Description

How our audit addressed the matter

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

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

Lin, Se-Kai

Independent Auditors

Lo, Chiao-Sen

For and on behalf of PricewaterhouseCoopers, Taiwan March 4, 2024

PRESIDENT SECURITIES CORPORATION

PARENT COMPANY ONLY BALANCE SHEETS DECEMBER 31, 2023 AND 2022

PRESIDENT SECURITIES CORPORATION

PARENT COMPANY ONLY BALANCE SHEETS DECEMBER 31, 2023 AND 2022

PRESIDENT SECURITIES CORPORATION

PARENT COMPANY ONLY STATEMENTS OF COMPREHENSIVE INCOME YEARS ENDED DECEMBER 31, 2023 AND 2022

PRESIDENT SECURITIES CORPORATION

PSC AGM Information 2024