PSC - Interim / Quarterly Report 2023

PRESIDENT SECURITIES CORPORATION AND

SUBSIDIARIES

CONSOLIDATED FINANCIAL STATEMENTS AND

INDEPENDENT AUDITORS’ REPORT

JUNE 30, 2023 AND 2022

For the convenience of readers and for information purpose only, the auditors’ report and the accompanying financial statements have been translated into English from the original Chinese version prepared and used in the Republic of China. In the event of any discrepancy between the English version and the original Chinese version or any differences in the interpretation of the two versions, the Chinese-language auditors’ report and financial statements shall prevail.

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INDEPENDENT AUDITORS’ REPORT TRANSLATED FROM CHINESE

PWCR23001343

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 as (the “Group”) at June 30, 2023, December 31, 2022 and June 30, 2022, and the related consolidated statements of comprehensive income for the three months and six months ended June 30, 2023 and 2022, as well as the consolidated statements of changes in equity and of cash flows for the six months ended June 30, 2023 and 2022, 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 June 30, 2023, December 31, 2022 and June 30, 2022, and its consolidated financial performance for the three months and six months ended June 30, 2023 and 2022 and its consolidated cash flows for the six months ended June 30, 2023 and 2022 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 Accounting Standard No. 34, Interim Financial Reporting that came into effect as endorsed by the Financial Supervisory Commission.

Basis for opinion

We conducted our audits in accordance with the Regulations Governing Auditing and Attestation of Financial Statements by Certified Public Accountants and 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

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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 consolidated financial statements for the six months ended June 30, 2023. 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 consolidated financial statements for the six months ended June 30, 2023 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 June 30, 2023, the unlisted stocks without active market held by the Group totaled 1,213,540 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 the 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 judgements and estimates may affect the ultimate result of accounting estimates and have an impact on the financial statements of the Group. Thus,

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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:

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

Impairment indication 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 June 30, 2023, the amount was 679,561 thousand New Taiwan Dollars. Impairment assessment for the interim period was based on the review for indications of whether the investee was significantly impaired after the end of the prior financial year in order to determine whether a detailed calculation is needed.

As the review for indications of significant impairment involved multiple subjective judgements in relation to internal and external information, this significantly affected the result of the review for indications of significant impairment. Thus, we consider the impairment of investments accounted for under the equity method as a key audit matter.

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How our audit addressed the matter

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

Obtained management’s documents for reviewing indications of asset impairment and understood the approval process.
Sampled documents in relation to reviewing for indications of significant impairment, in order to understand reasonableness of the evidence.

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 six months ended June 30, 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 International Accounting Standard No. 34, “Interim Financial Reporting” 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.

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.

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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.

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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 for the six months ended June 30, 2023 and are therefore the key audit matters. We describe these matters in our auditors’ report unless law or regulation precludes public

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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 Aduitors

Lo, Chiao-Sen

For and on behalf of PricewaterhouseCoopers, Taiwan August 24, 2023

------------------------------------------------------------------------------------------------------------------------------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 JUNE 30, 2023, DECEMBER 31, 2022 AND JUNE 30, 2022

(Expressed in thousands of New Taiwan dollars)

Assets	Notes	June 30,2023	December31,2022 AMOUNT % `$` `6,194,573` `6` `24,395,868` `26` `2,497,782` `3` `10,533,221` `11` `94,136` `-` `72,399` `-` `4,094,908` `4` `20,783,255` `22` `1,159,577` `1` `3,377,630` `4` `763` `-` `10,140,951` `11` `1,195` `-` `38,289` `-` `60,108` `-` `43` `-` `1,950,961` `2` `85,395,659` `90` `99,283` `-` `1,179,907` `1` `3,512,098` `4` `2,609,642` `3` `165,557` `-` `266,302` `-` `246,506` `-` `106,146` `-` `1,309,762` `2` `9,495,203` `10` `$` `94,890,862` `100`	June 30,2022
		AMOUNT `$` `5,796,669` `48,308,175` `3,172,267` `13,683,335` `3,226` `2,687` `6,710,931` `21,500,798` `382,649` `1,557,725` `631` `25,979,009` `1,435` `52,928` `110,822` `83` `1,439,055` `128,702,425` `114,162` `1,213,540` `3,320,087` `2,580,844` `141,970` `265,252` `273,560` `99,089` `1,418,581` `9,427,085` `$` `138,129,510`	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`	AMOUNT `$` `6,119,917` `20,000,440` `317,492` `12,281,420` `2,543` `2,117` `2,877,903` `21,223,111` `326,981` `2,688,313` `683` `17,754,435` `1,330` `51,298` `267,750` `2,163` `3,086,377` `87,004,273` `96,709` `1,011,415` `2,917,526` `2,507,780` `204,398` `267,352` `212,346` `136,325` `1,334,202` `8,688,053` `$` `95,692,326`	%
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(1) 6(2) 6(3) 6(4) 6(5) 6(6) 6(6) 6(7) 6(8) 6(2) 6(3) 6(11) 6(12) 6(13) 6(15) 6(16) 6(46) 6(17)				`7` `21` `-` `13` `-` `-` `3` `22` `-` `3` `-` `19` `-` `-` `-` `-` `3`
					`91`
					`-` `1` `3` `3` `-` `-` `-` `-` `2`
					`9`
					`100`

(Continued)

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PRESIDENT SECURITIES CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS JUNE 30, 2023, DECEMBER 31, 2022 AND JUNE 30, 2022

(Expressed in thousands of New Taiwan dollars)

Liabilities andEquity	Notes	June 30,2023	December31,2022 June 30,2022 AMOUNT % AMOUNT `$` `275,000` `-` `$` `2,225,000` `5,827,431` `6` `2,899,480` `9,157,320` `10` `6,959,193` `6,965,424` `7` `2,075,715` `1,809,356` `2` `1,001,979` `1,809,962` `2` `1,224,185` `1,806,591` `2` `2,531,448` `20,763,586` `22` `21,157,185` `265,926` `-` `151,740` `10,852,394` `12` `14,970,579` `2,276` `-` `4,350` `744,720` `1` `543,549` `1,582,207` `2` `4,493,059` `2,784,086` `3` `6,229,944` `161,117` `-` `92,417` `72,740` `-` `84,204` `83,213` `-` `107,597` `64,963,349` `69` `66,751,624` `15,418` `-` `15,372` `86,061` `-` `111,515` `11,618` `-` `4,668` `7,928` `-` `52,572` `121,025` `-` `184,127` `65,084,374` `69` `66,935,751` `14,558,313` `15` `14,558,313` `91,261` `-` `91,261` `3,877,849` `4` `3,877,849` `9,090,989` `10` `9,090,989` `816,933` `1 (` `161,611)` `1,283,747` `1` `1,220,894` `29,719,092` `31` `28,677,695` `87,396` `-` `78,880` `29,806,488` `31` `28,756,575` `$` `94,890,862` `100` `$` `95,692,326`
		AMOUNT `$` `10,064,854` `23,269,671` `7,109,671` `9,915,036` `715,580` `911,453` `1,014,235` `21,477,529` `406,953` `24,388,065` `3,198` `613,809` `2,422,688` `4,504,843` `166,343` `66,247` `97,187` `107,147,362` `15,463` `69,485` `25,764` `7,332` `118,044` `107,265,406` `14,558,313` `91,261` `3,959,127` `9,253,546` `1,633,347` `1,279,849` `30,775,443` `88,661` `30,864,104` `$` `138,129,510`	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(18) 6(19) 6(20) 6(21) 6(5) 6(22) 6(23) 6(24) 6(46) 6(25) 6(27) 6(27) 6(27)(28)			`2` `3` `7` `2` `1` `1` `3` `22` `-` `16` `-` `1` `5` `7` `-` `-` `-`
				`70`
				`-` `-` `-` `-`
				`-`
				`70`
				`15` `-` `4` `10` `-` `1`
				`30`
				`-`
				`30`
				`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 THREE MONTHS AND SIX MONTHS ENDED JUNE 30, 2023 AND 2022

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

					Threemonths ended June 30	Threemonths ended June 30	Threemonths ended June 30	Threemonths ended June 30		Six months ended June 30	Six months ended June 30	Six months ended June 30
					2023			2022		2023		2022
	Items	Notes			AMOUNT	%		AMOUNT	%	AMOUNT	%	AMOUNT	%
400000	Revenues
401000	Brokerage handling fee	6(29)
	revenue			`$`	`850,293`	`30`	`$`	`840,396`	`50`	`$ 1,544,273`	`33`	`$ 1,742,395`	`68`
404000	Revenues from underwriting	6(30)
	business				`35,134`	`1`		`5,244`	`-`	`49,607`	`1`	`26,099`		`1`
406000	Net gain (loss )on wealth
	management				`9,765`	`-`		`11,614`	`1`	`17,269`	`-`	`21,758`		`1`
410000	Net gain (loss) on sale of	6(31)
	operating securities				`139,339`	`5 (`		`1,462,990) (`	`87)`	`950,907`	`20 (`	`2,106,301) (`	`82 )`
421100	Revenue from providing
	agency service for stock affairs				`25,059`	`1`		`24,477`	`2`	`45,496`	`1`	`44,297`		`2`
421200	Interest income	6(32)			`314,189`	`11`		`239,523`	`14`	`595,882`	`13`	`507,685`	`20`
421300	Dividend income				`2,757,452`	`96`		`994,226`	`59`	`2,799,317`	`59`	`1,032,905`	`40`
421500	Net valuation gain (loss) on	6(33)
	operating securities at fair
	value through profit or loss		`(`		`347,820) (`	`12) (`		`1,705,957) (`	`102)`	`542,436`	`12 (`	`2,421,317) (`	`95 )`
421600	Net gain (loss) on covering of	6(34)
	borrowed securities and bonds
	with resale agreements-short
	sales				`105,454`	`4`		`66,613`	`4 (`	`39,224) (`	`1)`	`26,009`		`1`
421610	Net valuation gain (loss) on	6(35)
	borrowed securities and bonds
	with resale agreements-short
	sales at fair value through
	profit or loss		`(`		`42,586) (`	`2)`		`1,139,104`	`68 (`	`949,571) (`	`20)`	`1,671,634`	`65`
422000	Net gain (loss) on issuance of
	ETNs		`(`		`70,332) (`	`2)`		`227,311`	`14 (`	`221,726) (`	`5)`	`523,804`	`20`
422100	Administrative and handling
	fee revenues from issuance of
	ETNs				`2,369`	`-`		`2,717`	`-`	`4,765`	`-`	`6,995`		`-`
422200	Net gain (loss) from issuance	6(36)
	of call (put) warrants		`(`		`162,049) (`	`6)`		`783,657`	`47 (`	`247,773) (`	`5)`	`1,265,442`	`50`
424400	Net gain (loss) from	6(37)
	derivatives		`(`		`936,821) (`	`33)`		`325,816`	`19 (`	`699,205) (`	`15) (`	`105,266) (`		`4 )`
425300	Expected impairment loss and	6(38)
	reversal of impairment gain		`(`		`4,462)`	`-`		`12,815`	`1 (`	`7,341)`	`-`	`16,174`		`1`
428000	Other operating income	6(39)			`188,552`	`7`		`171,922`	`10`	`344,830`	`7`	`303,373`	`12`
	Total revenues				`2,863,536`	`100`		`1,676,488`	`100`	`4,729,942`	`100`	`2,555,686`	`100`
500000	Expenditures and expenses
501000/
502000/
503000	Handling charges	6(40)	`(`		`135,742) (`	`5) (`		`142,518) (`	`9) (`	`250,264) (`	`6) (`	`294,691) (`	`12 )`
507000	ETNs administrative expenses		`(`		`1,521)`	`- (`		`1,575)`	`- (`	`4,574)`	`- (`	`4,730)`		`-`
521200	Financial costs	6(41)	`(`		`229,894) (`	`8) (`		`19,662) (`	`1) (`	`386,482) (`	`8) (`	`35,444) (`		`1 )`
524100	Futures commission expense		`(`		`23,376) (`	`1) (`		`25,537) (`	`2) (`	`46,262) (`	`1) (`	`51,108) (`		`2 )`
524300	Expense of clearing and
	settlement		`(`		`28,115) (`	`1) (`		`37,888) (`	`2) (`	`55,475) (`	`1) (`	`73,438) (`		`3 )`
528000	Other operating expenditure		`(`		`96)`	`-`		`-`	`- (`	`96)`	`- (`	`2)`		`-`
531000	Employee benefits expense	6(42)	`(`		`856,412) (`	`30) (`		`576,751) (`	`34) (`	`1,539,249) (`	`33) (`	`1,205,821) (`	`47 )`
532000	Depreciation and amortization	6(43)	`(`		`77,149) (`	`2) (`		`68,001) (`	`4) (`	`154,382) (`	`3) (`	`130,064) (`		`5 )`
533000	Other operating expenses	6(44)	`(`		`486,342) (`	`17) (`		`438,948) (`	`26) (`	`895,542) (`	`19) (`	`901,989) (`	`35 )`
	Total expenditures and
	expenses		`(`		`1,838,647) (`	`64) (`		`1,310,880) (`	`78) (`	`3,332,326) (`	`71) (`	`2,697,287) (`	`105 )`

(Continued)

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PRESIDENT SECURITIES CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME THREE MONTHS AND SIX MONTHS ENDED JUNE 30, 2023 AND 2022

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

					Threemonths ended June 30	Threemonths ended June 30	Threemonths ended June 30	Threemonths ended June 30				Six months ended June 30	Six months ended June 30	Six months ended June 30	Six months ended June 30
					2023			2022				2023			2022
	Items	Notes			AMOUNT	%	AMOUNT			%		AMOUNT	%	AMOUNT			%
	Operating profit			`$`	`1,024,889`	`36`	`$`	`365,608`		`22`	`$`	`1,397,616`	`29 ($`		`141,601) (`		`5 )`
601000	Share of the profit or loss of	6(11)
	associates and joint ventures
	accounted for under the equity
	method				`8,727`	`-`		`3,265`		`-`		`49,839`	`1 (`		`45,006) (`		`2 )`
602000	Other gains and losses	6(45)			`207,061`	`7`		`90,835`		`6`		`365,820`	`8`		`147,018`		`6`
902001	Profit (loss) before tax				`1,240,677`	`43`		`459,708`		`28`		`1,813,275`	`38 (`		`39,589) (`		`1 )`
701000	Income tax (expense) benefit	6(46)	`(`		`67,247) (`	`2) (`		`59,981) (`		`4) (`		`180,402) (`	`4) (`		`123,156) (`		`5 )`
902005	Net income (loss)			`$`	`1,173,430`	`41`	`$`	`399,727`		`24`	`$`	`1,632,873`	`34 ($`		`162,745) (`		`6 )`
	Other comprehensive income
	Components of other
	comprehensive income that will
	not be reclassified to profit or
	loss
805540	Net unrealized gain (loss) from
	investments in equity
	instruments at fair value
	through other comprehensive
	income			`$`	`10,377`	`- ($`		`487,684) (`		`29)`	`$`	`118,675`	`3 ($`		`219,054) (`		`9 )`
805550	Other comprehensive income
	(loss) of associates and joint
	ventures accounted for under
	the equity method				`1,367`	`- (`		`36,022) (`		`3)`		`3,780`	`- (`		`12,940)`		`-`
	Items may be reclassified to
	profit of loss subsequently
805610	Translation gain (loss) on the
	financial statements of foreign
	operating entities		`(`		`70,625) (`	`2)`		`14,589`		`1 (`		`75,481) (`	`2)`		`138,999`		`5`
805615	Net unrealized gain (loss) from
	investments in debt
	instruments at fair value
	through other comprehensive
	income		`(`		`119,244) (`	`4)`			`-`	`- (`		`49,590) (`	`1)`			`-`	`-`
805000	Current other comprehensive
	income (loss) (post-tax)		`($`		`178,125) (`	`6) ($`		`509,117) (`		`31) ($`		`2,616)`	`- ($`		`92,995) (`		`4 )`
902006	Total current comprehensive
	income (loss)			`$`	`995,305`	`35 ($`		`109,390) (`		`7)`	`$`	`1,630,257`	`34 ($`		`255,740) (`		`10 )`
	Income (loss) attributable to:
913100	Parent company			`$`	`1,170,491`	`41`	`$`	`397,984`		`24`	`$`	`1,628,023`	`34 ($`		`165,761) (`		`6 )`
913200	Non-controlling interests			`$`	`2,939`	`-`	`$`	`1,743`		`-`	`$`	`4,850`	`-`	`$`	`3,016`		`-`
	Current comprehensive income
	(loss) attributable to:
914100	Parent company			`$`	`991,903`	`35 ($`		`98,919) (`		`6)`	`$`	`1,624,125`	`34 ($`		`254,368) (`		`10 )`
914200	Non-controlling interests			`$`	`3,402`	`- ($`		`10,471) (`		`1)`	`$`	`6,132`	`- ($`		`1,372)`		`-`
	Earnings (loss) per share	6(47)
975000	Basic earnings (loss) per share
	(in dollars)			`$`		`0.80`	`$`			`0.27`	`$`		`1.12 ($`				`0.11 )`
985000	Diluted earnings (loss) per
	share (in dollars)			`$`		`0.80`	`$`			`0.27`	`$`		`1.12 ($`				`0.11 )`

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

~12~

PRESIDENT SECURITIES CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY SIX MONTHS ENDED JUNE 30, 2023 AND 2022

(Expressed in thousands of New Taiwan dollars)

Notes				Equity attributable	Equity attributable	to owners of the parent	to owners of the parent	to owners of the parent	to owners of the parent			Non-controlling interests
	Commonstock	Capital reserve		R	etainedEarnings		Otherequityinterest				Total
			Legal reserve		Special reserve	Unappropriated earnings	Exchange differences on translation of foreign financial statements		Unrealised gains (losses) on financial assets measured at fair value through other comprehensive income
6(28) 6(28)	`$ 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` `(` `165,761` `)` `-` `(` `165,761` `)` `(` `390,101` `)` `(` `776,790` `)` `( 2,751,521` `)` `-` `($ 161,611` `)` `$ 816,933` `1,628,023` `-` `1,628,023` `(` `81,278` `)` `(` `162,557` `)` `(` `567,774` `)` `-` `$ 1,633,347`	`($` `65,809 )` `-` `138,999` `138,999` `-` `-` `-` `-` `$` `73,190` `$` `103,010` `-` `(` `75,481 )` `(` `75,481 )` `-` `-` `-` `-` `$` `27,529`	`$ 1,375,310` `-` `(` `227,606 )` `(` `227,606 )` `-` `-` `-` `-` `$ 1,147,704` `$ 1,180,737` `-` `71,583` `71,583` `-` `-` `-` `-` `$ 1,252,320`		`$ 31,683,584` `(` `165,761 )` `(` `88,607 )` `(` `254,368 )` `-` `-` `(` `2,751,521 )` `-` `$ 28,677,695` `$ 29,719,092` `1,628,023` `(` `3,898 )` `1,624,125` `-` `-` `(` `567,774 )` `-` `$ 30,775,443`		`$` `83,046` `3,016` `(` `4,388` `)` `(` `1,372` `)` `-` `-` `-` `(` `2,794` `)` `$` `78,880` `$` `87,396` `4,850` `1,282` `6,132` `-` `-` `-` `(` `4,867` `)` `$` `88,661`	`$ 31,766,630` `(` `162,745 )` `(` `92,995 )` `(` `255,740 )` `-` `-` `(` `2,751,521 )` `(` `2,794 )` `$ 28,756,575` `$ 29,806,488` `1,632,873` `(` `2,616 )` `1,630,257` `-` `-` `(` `567,774 )` `(` `4,867 )` `$ 30,864,104`

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

~13~

PRESIDENT SECURITIES CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

SIX MONTHS ENDED JUNE 30, 2023 AND 2022

(Expressed in thousands of New Taiwan dollars)

CASH FLOWS FROM OPERATING ACTIVITIES
Profit (loss) 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 impairment loss and reversal of impairment gain

Depreciation

Amortization

Financial expense

Interest income (include financial income)

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

(Gain) loss on disposal of property and equipment

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

Changes in assets/liabilities relating to operating activities
Net changes in assets relating to operating activities
Financial assets at fair value through profit or loss
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
Customer margin account
Receivables from security lending
Security lending deposits
Notes receivable
Accounts receivable
Accounts receivable-related parties
Prepayments
Other receivables
Other current assets
Net changes in liabilities relating to operating activities
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
Futures traders’ equity
Equity for each customer in the account
Accounts payable
Advance receipts
Collections on behalf of third parties
Other payables
Other financial liabilities - current
Other current liabilities Six months ended June 30
Notes
2023
2022
$
1,813,275 ( $
39,589 )
6(2)(33)
(
542,436 )
2,421,317
6(35)
949,571 (
1,671,634 )
6(38)
8,079 (
15,810 )
6(43)
117,093
103,938
6(43)
37,289
26,126
6(41)
386,482
35,444
6(32)(45)
(
856,260 ) (
564,463 )
(
2,827,928 ) (
1,062,003 )
6(11)
(
49,839 )
45,006
6(12)
75
3
(
1 ) (
92 )
6(45)
(
433 )
18,134
(
23,384,136 )
11,123,153
(
592,875 )
-
-
27,401
(
3,158,596 )
6,077,749
90,910
27,387
69,712
22,816
(
2,616,023 ) (
1,295,910 )
(
717,543 )
112,421
776,928
74,038
1,819,905 (
1,251,018 )
132
136
(
12,942,034 ) (
91,420 )
(
240 ) (
183 )
(
14,360 ) (
26,286 )
(
31,147 ) (
23,013 )
511,906
5,875,669
(
2,997,220 )
458,225
2,949,612 (
7,567,325 )
(
1,093,776 ) (
200,608 )
(
898,509 ) (
334,977 )
(
792,356 )
562,241
713,943 (
170,989 )
141,027
53,744
13,315,877 (
3,362,538 )
922
313
(
130,911 ) (
5,198,551 )
263,829 (
893,323 )
1,720,757
1,246,805
13,974
23,749

(Continued)

~14~

PRESIDENT SECURITIES CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

SIX MONTHS ENDED JUNE 30, 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
Acquisition of property and equipment

Acquisition of intangible assets

(Increase) decrease in other non-current assets
(Increase) decrease in prepayment for equipment
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
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 period
Cash and cash equivalents at end of period Six months ended June 30
Notes
2023
2022
( $
27,945,325 ) $
4,566,083
845,301
592,307
286,572
88,528
(
154,013 ) (
648,881 )
(
26,967,465 )
4,598,037
6(12)
(
20,905 ) (
40,687 )
6(16)
(
12,350 ) (
26,356 )
(
134,987 )
54,822
(
51,425 ) (
92,975 )
(
219,667 ) (
105,196 )
9,789,854
1,635,000
17,470,000 (
5,750,000 )
(
596 ) (
16,713 )
(
40,570 ) (
46,687 )
(
390,499 ) (
39,266 )
26,828,189 (
4,217,666 )
(
38,961 )
87,730
(
397,904 )
362,905
6,194,573
5,757,012
$
5,796,669 $
6,119,917

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

~15~

PRESIDENT SECURITIES CORPORATION AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

SIX MONTHS ENDED JUNE 30, 2023 AND 2022

(Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

1. HISTORY AND ORGANIZATION

1) President Securities Corporation (the “Company”) was incorporated as a company limited by shares under the provisions of the Company Law of the Republic of China (R.O.C.) on December 17, 1988 and was renamed as President Securities Corporation on March 4, 1989. The Company started commercial operations on April 3, 1989. As of June 30, 2023, the Company had 31 operating branches (including the Head Office), and established Offshore Securities Unit in July 2014.
2) The Company and its subsidiaries (collectively referred herein as the “Group”) are primarily engaged in underwriting of securities, dealing or brokerage business of securities at the securities exchange markets and business premises, registration and transfer agency service for securities, margin loans and short sales business of securities, securities lending and borrowing business, futures introducing brokerage services, futures dealing, issuance of call (put) warrants, new financial instrument transactions, wealth management business, and trust business.
3) The Company’s shares are listed on the Taiwan Stock Exchange.
4) The number of employees of the Group were 1,691 and 1,689 as of June 30, 2023 and 2022, respectively.
THE DATE OF AUTHORIZATION FOR ISSUANCE OF THE CONSOLIDATED FINANCIAL STATEMENTS AND PROCEDURES FOR AUTHORIZATION
These consolidated financial statements were authorized for issuance by the Board of Directors on August 24, 2023.
APPLICATION OF NEW STANDARDS, AMENDMENTS AND INTERPRETATIONS
1) Effect of the adoption of new issuances of or amendments to International Financial Reporting Standards (“IFRS”) that came into effect as endorsed by the Financial Supervisory Commission (“FSC”)

New standards, interpretations and amendments that came into effect as endorsed by FSC and became effective from 2023 are as follows:

and became effective from 2023 are as follows:
New Standards,Interpretations and Amendments	Effective Date by International Accounting Standards Board
Amendments to IAS 1, ‘Disclosure of accounting policies’ Amendments to IAS 8, ‘Definition of accounting estimates’	January 1, 2023 January 1, 2023

~16~

New Standards,Interpretations and Amendments	Effective Date by International Accounting Standards Board
Amendments to IAS 12, ‘Deferred tax related to assets and liabilities arising from a single transaction’	January 1, 2023

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

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

adopted by the Group

None.

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

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

IFRSs as endorsed by the FSC are as follows:
	Effective Date by
	International Accounting
New Standards,Interpretations and Amendments	Standards Board
Amendments to IFRS 10 and IAS 28, ‘Sale or contribution of assets	To be determined by
between an investor and its associate or joint venture’	International Accounting
	Standards Board
Amendments to IFRS 16, ‘Lease liability in a sale and leaseback’	January 1, 2024
IFRS 17, ‘Insurance contracts’	January 1, 2023
Amendments to IFRS 17, 'Insurance contracts'	January 1, 2023
Amendment to IFRS 17, 'Initial application of IFRS 17 and IFRS 9 -	January 1, 2023
comparative information'
Amendments to IAS 1, ‘Classification of liabilities as current or non-	January 1, 2024
current’
Amendments to IAS 1, ‘Non-current liabilities with covenants’	January 1, 2024
Amendments to IAS 7 and IFRS 7, ‘Supplier finance arrangements’	January 1, 2024
Amendments to IAS 12, ‘International tax reform - pillar two model	May 23, 2023
rules’

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

4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

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

1) Compliance statement

The consolidated financial statements of the Group have been prepared in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Firms, and Regulations Governing the Preparation of Financial Reports by Futures Commission Merchants, and International Accounting Standards No. 34, ‘Interim financial reporting’ that came into effect as endorsed by the FSC.

~17~

2) Basis of preparation

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

3) Basis of consolidation

A. Basis for preparation of consolidated financial statements:
(A) All subsidiaries are included in the Group’s consolidated financial statements. Subsidiaries are all entities (including structured entities) controlled by the Group. The Group controls an entity when the Group is exposed, or has rights, to variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. Consolidation of subsidiaries begins from the date the Group obtains control of the subsidiaries and ceases when the Group loses control of the subsidiaries.
(B) Intercompany transactions, balances and unrealized gains or losses on transactions between companies within the Group are eliminated. Accounting policies of subsidiaries have been adjusted where necessary to ensure consistency with the policies adopted by the Group.
(C) Profit or loss and each component of other comprehensive income are attributed to the owners of the parent and to the non-controlling interests. Total comprehensive income is attributed to the owners of the parent and to the non-controlling interests even if this results in the non-controlling interests having a deficit balance.
(D) Changes in a parent’s ownership interest in a subsidiary that do not result in the parent losing control of the subsidiary (transactions with non-controlling interests) are accounted for as equity transactions, i.e. transactions with owners in their capacity as owners. Any difference between the amount by which the noncontrolling interests are adjusted and the fair value of the consideration paid or received is recognized directly in equity.

~18~

(E) When the Group loses control of a subsidiary, the Group remeasures any investment retained in the former subsidiary at its fair value. That fair value is regarded as the fair value on initial recognition of a financial asset or the cost on initial recognition of the associate or joint venture. Any difference between fair value and carrying amount is recognized in profit or loss. All amounts previously recognized in other comprehensive income in relation to the subsidiary are reclassified to profit or loss, on the same basis as would be required if the related assets or liabilities were disposed of. That is, when the Group loses control of a subsidiary, all gains or losses previously recognized in other comprehensive income in relation to the subsidiary should be reclassified from equity to profit or loss, if such gains or losses would be reclassified to profit or loss when the related assets or liabilities are disposed of.
B. Subsidiaries included in the consolidated financial statements:

Name of Investor	Name of Subsidiary	Main Business Activities		Ownership (%)
			June 30,2023 96.69% 100% 100% 100% 100% 100% 100%	December 31,2022 96.69% 100% 100% 100% 100% 100% 100%	June 30,2022
The Company `〃` `〃` `〃` `〃` `〃` `〃`	President Futures Corp. (President Futures) President Capital Management Corp. (President Capital Management) President Securities (HK) Ltd.(President Securities (HK)) (Note) President Insurance Agency Corp. (President Insurance Agency) PSC Venture Capital Investment Company Limited (President Venture Capital) President Wealth Management(HK) Ltd.(President Wealth Management (HK)) (Note) President Securities (Nominee) Ltd. (President Securities (Nominee)) (Note)	Futures brokerage and dealer Securities investment consulting Securities dealer, brokerage, underwriting and consulting Insurance Agent Consultation of investment management and venture capital; other unprohibited or unrestricted businesses beyond the permit Wealth management Nominee Service			96.69% 100% 100% 100% 100% 100% 100%

Note : Subsidiary President Securities (HK) Ltd., President Wealth Management (HK) Ltd. and President Securities (Nominee) Ltd. were approved by the board of directors in March 2022 to deal with the dissolution and liquidation matters, and the liquidation process are all currently in progress, of which President Wealth Management (HK) Ltd. and President Securities (Nominee) Ltd. had remitted all funds on account on April 27, 2023 for the subsequent liquidation process.

~19~

4) Classification of current and non-current items
A. Assets that meet one of the following criteria are classified as current assets; otherwise they are classified as non-current assets:
- (A) Assets arising from operating activities that are expected to be realized, or are intended to be sold or consumed within the normal operating cycle;
- (B) Assets held mainly for trading purposes;
- (C) Assets that are expected to be realized within twelve months from the balance sheet date;
- (D) Cash and cash equivalents, excluding restricted cash and cash equivalents and those that are to be exchanged or used to pay off liabilities more than twelve months after the balance sheet date.
B. Liabilities that meet one of the following criteria are classified as current liabilities; otherwise they are classified as non-current liabilities:
- (A) Liabilities that are expected to be paid off within the normal operating cycle;
- (B) Liabilities arising mainly from trading activities;
- (C) Liabilities that are to be paid off within twelve months from the balance sheet date;
- (D) Liabilities for which the repayment date cannot be extended unconditionally to more than twelve months after the balance sheet date. Terms of a liability that could, at the option of the counterparty, result in its settlement by the issue of equity instruments do not affect its classification.
5) Translation of foreign currency transactions
A. Foreign currency translation and presentation
- Items included in the consolidated financial statements of the Group are measured using the currency of the primary economic environment in which the Group operates (the “functional currency”). Functional currency and bookkeeping currency of the Company and its domestic subsidiaries are all New Taiwan Dollars; functional currency and bookkeeping currency of overseas subsidiaries-President Securities (HK), President Wealth Management (HK), and President Securities (Nominee) are Hong Kong Dollars. The consolidated financial statements are presented in New Taiwan Dollars.
B. Foreign currency transactions and balances
- Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions.
- Monetary assets and liabilities denominated in foreign currencies are translated by the closing exchange rate at balance sheet date. The closing exchange rate is determined by the market exchange rate. Non-monetary assets and liabilities denominated in foreign currencies which are carried at historical cost are translated by the exchange rates prevailing at the original transaction date. Non-monetary assets and liabilities denominated in foreign currencies held at fair value through profit or loss are retranslated at the exchange rates prevailing at the balance sheet date; their translation

~20~

differences are recognized in profit or loss. Non-monetary assets and liabilities denominated in foreign currencies held at fair value through other comprehensive income are re-translated at the exchange rates prevailing at the balance sheet date; their translation differences are recognized in other comprehensive income.

C. Translation of foreign operations

The operating results and financial position of all the group entities, associates and joint arrangements that have a functional currency different from the presentation currency are translated into the presentation currency as follows:

  - (A) Assets and liabilities for each balance sheet presented are translated at the closing exchange rate at the date of that balance sheet;

  - (B) Income and expenses for each statement of comprehensive income are translated at average exchange rates of that period; and

  - (C) All resulting exchange differences are recognized in other comprehensive income.

6) Cash and cash equivalents
A. In the consolidated statement of cash flows, cash and cash equivalents includes cash on hand, deposits held at call with banks, and other short-term highly liquid investments.
B. Cash equivalents refer to short-term, highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value. Time deposits that meet the definition above and are held for the purpose of meeting short-term cash commitments in operations are classified as cash equivalents.
7) Financial assets and financial liabilities at fair value through profit or loss
A. Financial assets at fair value through profit or loss are financial assets that are not measured at amortized cost or fair value through other comprehensive income.
B. On a regular way purchase or sale basis, financial assets at fair value through profit or loss are recognized and derecognized using trade date accounting.
C. At initial recognition, the Group measures the financial assets at fair value and recognizes the transaction costs in profit or loss. The Group subsequently measures the financial assets at fair value, and recognizes the gain or loss in profit or loss.
D. The Group recognizes the dividend income when the right to receive payment is established, future economic benefits associated with the dividend will flow to the Group and the amount of the dividend can be measured reliably.
8) Financial assets at fair value through other comprehensive income
A. Financial assets at fair value through other comprehensive income comprise equity securities which are not held for trading, and for which the Group has made an irrevocable election at initial recognition to recognize changes in fair value in other comprehensive income and debt instruments which meet all of the following criteria:

~21~

  - (A) The objective of the Group’s business model is achieved both by collecting contractual cash flows and selling financial assets; and

  - (B) The assets’ contractual cash flows represent solely payments of principal and interest.

B. On a regular way purchase or sale basis, available-for-sale financial assets are recognized and derecognized using trade date accounting.
C. At initial recognition, the Group measures the financial assets at fair value plus transaction costs. The Group subsequently measures the financial assets at fair value:
- (A) The changes in fair value of equity investments that were recognized in other comprehensive income are reclassified to retained earnings and are not reclassified to profit or loss following the derecognition of the investment. Dividends are recognized as revenue when the right to receive payment is established, future economic benefits associated with the dividend will flow to the Group and the amount of the dividend can be measured reliably.
- (B) Except for the recognition of impairment loss, interest income and gain or loss on foreign exchange which are recognized in profit or loss, the changes in fair value of debt instruments are taken through other comprehensive income. When the financial asset is derecognized, the cumulative gain or loss previously recognized in other comprehensive income is reclassified from equity to profit or loss.
9) Notes and accounts receivable, other receivables and margin loans receivable
A. Accounts and notes receivable and margin loans receivables entitle the Group a legal right to receive consideration in exchange for transferred goods or rendered services.
B. The short-term accounts and notes receivable without bearing interest are subsequently measured at initial invoice amount as the effect of discounting is immaterial.
10) Bonds sold under repurchase agreements and bonds purchased under resale agreements Bond transactions under repurchase or resale agreements are stated at the amount of actual payment or receipt. When transactions of bonds with a condition of resale agreements occur, the actual payment or receipt shall be recognized in ‘bonds purchased under resale agreements’ under current assets. When transactions of bonds with a condition of repurchase agreements occur, the actual payment or receipt shall be recognized in ‘bonds sold under repurchase agreements’ under current liabilities. Any difference between the actual payment/receipt and predetermined redemption (repurchase) price is recognized in interest income or interest expense.

11) Impairment of financial assets

For debt instruments measured at fair value through other comprehensive income, at each reporting date, the Group recognizes the impairment provision for 12 months expected credit losses if there has not been a significant increase in credit risk since initial recognition or recognizes the impairment provision for the lifetime expected credit losses

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(ECLs) if such credit risk has increased since initial recognition after taking into consideration all reasonable and verifiable information that includes forecasts. On the other hand, for accounts receivable or contract assets that do not contain a significant financing component, the Group recognizes the impairment provision for lifetime ECLs.

12) Derecognition of financial instruments

A. Derecognition of financial assets
The Group derecognizes a financial asset when one of the following conditions is met:
(A) The contractual rights to receive cash flows from the financial asset expire.
(B) The contractual rights to receive cash flows from the financial asset have been transferred and the Group has transferred substantially all risks and rewards of ownership of the financial asset.
(C) The contractual rights to receive cash flows of the financial asset have been transferred; however, the Group has not retained control of the financial asset.
B. Derecognition of financial liabilities
A financial liability is derecognized when the obligation under the liability specified in the contract is discharged or cancelled or expires.

13) Offsetting financial instruments-associates

Financial assets and liabilities are offset and reported in the net amount in the balance sheet when there is a legally enforceable right to offset the recognized amounts and there is an intention to settle on a net basis or realize the asset and settle the liability simultaneously.

14) Investments accounted for under the equity method-associates
A. Associates are all entities over which the Group has significant influence but not control. In general, it is presumed that the investor has significant influence, if an investor holds, directly or indirectly 20 percent or more of the voting power of the investee. Investments in associates are accounted for using the equity method and are initially recognized at cost.
B. The Group’s share of its associates’ post-acquisition profits or losses is recognized in profit or loss, and its share of post-acquisition movements in other comprehensive income is recognized in other comprehensive income. When the Group’s share of losses in an associate equals or exceeds its interest in the associate, including any other unsecured receivables, the Group does not recognize further losses, unless it has incurred statutory/constructive obligations or made payments on behalf of the associate.
C. When changes in an associate’s equity that are not recognized in profit or loss or other comprehensive income of the associate and such changes not affecting the Group’s ownership percentage of the associate, the Group recognizes its share of change in equity of the associate in ‘capital reserve’ in proportion to its ownership.

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D. Unrealized gains on transactions between the Group and its associates are eliminated to the extent of the Group’s interest in the associates. Unrealized losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred. Accounting policies of associates have been adjusted where necessary to ensure consistency with the policies adopted by the Group.
E. When there are objective evidences of impairment, at balance sheet date, the Group considers the whole investment carrying amount as single asset, and compares its recoverable amount (value in use or fair value less costs of disposal) with the carrying amount, to test its impairment. Value in use is determined by the present value of the Group’s share of the expected future cash flow from the associates. If the recoverable amount is less than its carrying amount, an impairment loss should be recognized. The loss will not be allocated to any of the components (including goodwill), which comprise the carrying amount of the investment. An impairment loss recognized in prior periods shall be reversed if circumstances of impairment no longer exist or have decreased.

15) Property and equipment

A. Property and equipment are initially recorded at cost. Borrowing costs incurred during the construction period are capitalized.
B. Subsequent costs are included in the asset’s carrying amount or recognized as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Group and the cost of the item can be measured reliably. The carrying amount of the replaced part is derecognized. All other repairs and maintenance are charged to profit or loss during the financial period in which they are incurred.
C. Land is not depreciated. Other property and equipment are subsequently measured using the cost model and depreciated using the straight-line method to allocate their cost over their estimated useful lives.
D. The assets’ residual values, useful lives and depreciation methods are reviewed, and adjusted if appropriate, at each balance sheet date. If expectations for the assets’ residual values and useful lives differ from previous estimates or the patterns of consumption of the assets’ future economic benefits embodied in the assets have changed significantly, any change is accounted for as a change in estimate under IAS 8, ‘Accounting Policies, Changes in Accounting Estimates and Errors’, from the date of the change. The estimated useful lives of property and equipment are as follows:

Buildings Equipment Leasehold improvements	Useful lives
	5~50 years 3~10 years 3~5 years

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E. When an asset is sold or retired, the cost and accumulated depreciation are removed from the respective accounts and the resulting gain or loss is included in current operations.
16) Leasing arrangements (lessee) － right-of-use assets/ lease liabilities
A. Leases are recognized as a right-of-use asset and a corresponding lease liability at the date at which the leased asset is available for use by the Group. For short-term leases or leases of low value assets, lease payments are recognized as an expense on a straightline basis over the lease term.
B. Lease liabilities include the net present value of the remaining lease payments at the commencement date, discounted using the incremental borrowing interest rate. Lease payments are mainly comprised of fixed payments.
- The Group subsequently measures the lease liability at amortized cost using the interest method and recognizes interest expense over the lease term. The lease liability is remeasured and the amount of remeasurement is recognized as an adjustment to the right-of-use asset when there are changes in the lease term or lease payments and such changes do not arise from contract modifications.
C. At the commencement date, the right-of-use asset is stated at cost comprising mainly the amount of the initial measurement of lease liability.
- The right-of-use asset is measured subsequently using the cost model and is depreciated from the commencement date to the earlier of the end of the asset’s useful life or the end of the lease term. When the lease liability is remeasured, the amount of remeasurement is recognized as an adjustment to the right-of-use asset.
17) Investment property
A. Investment property of the Group is the property held either to earn long-term rental income or for capital appreciation or for both.
B. Part of the property may be held by the Group for self-use purpose and the remaining are used to generate rental income or capital appreciation. If the property held by the Group can be sold individually, then the accounting treatment should be made respectively. If each part of the property cannot be sold individually and the self-use proportion is not material, then the property is deemed as investment property in its entirety.
C. When the future economic benefit related to the investment property is highly likely to flow into the Group and the costs can be reliably measured, the investment property shall be recognized as assets. When the future economic benefit generated from subsequent costs is highly likely to flow into the entity and the costs can be reliably measured, the subsequent expenses of the assets shall be capitalized. All maintenance cost are recognized in profit or loss as incurred.

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D. Investment property is subsequently measured using the cost model. Depreciated cost is used to calculate amortization expense after initial measurement. The depreciation method, remaining useful life and residual value should apply the same rules as applicable for property and equipment.
18) Intangible assets
A. The cost of computer software is amortized using the straight-line method over the useful lives based on acquisition cost, with an amortization period of 4 years.
B. Membership in a foreign futures exchange is stated at acquisition cost and has an indefinite useful life as it was assessed to generate continuous net cash inflow in the foreseeable future. It is not amortized, but is tested annually for impairment.
C. In accordance with IFRS 3 ‘Business combinations’ as endorsed by FSC, goodwill arises when the acquisition cost exceeds the fair value of identifiable assets and liabilities of the consolidated subsidiary on the consolidation date. The goodwill arising from the consolidated subsidiary is included in the intangible asset. Goodwill is tested annually for impairment and any impairment loss will be recognized when impairment occurs. Impairment losses on goodwill are not reversed.
19) Impairment of non-financial assets
A. The Group assesses at each balance sheet date the recoverable amounts of those assets where there is an indication that they are impaired. An impairment loss is recognized for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs to sell or value in use. Except for goodwill, when the circumstances or reasons for recognizing impairment loss for an asset in prior years no longer exist or diminish, the impairment loss is reversed. The increased carrying amount due to reversal should not be more than what the depreciated or amortized historical cost would have been if the impairment had not been recognized.
B. The recoverable amounts of goodwill, intangible assets with an indefinite useful life and intangible assets that have not yet been available for use are evaluated periodically. An impairment loss is recognized for the amount by which the asset’s carrying amount exceeds its recoverable amount. Impairment loss of goodwill previously recognized in profit or loss shall not be reversed in the following years.
C. For the purpose of impairment testing, goodwill acquired in a business combination is allocated to each of the cash-generating units, or groups of cash-generating units, that is expected to benefit from the synergies of the business combination. Each unit or group of units to which the goodwill is allocated represents the lowest level within the entity at which the goodwill is monitored for internal management purposes. Goodwill is monitored at the operating segment level.

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20) Financial liabilities at fair value through profit or loss

A. Financial liabilities are classified in this category of held for trading if acquired principally for the purpose of repurchasing in the short-term. Derivatives are also categorized as financial liabilities held for trading unless they are designated as hedges.
B. At initial recognition, the Group measures the financial liabilities at fair value. All related transaction costs are recognized in profit or loss. The Group subsequently measures these financial liabilities at fair value with any gain or loss recognized in profit or loss.

21) Contingent liabilities

Contingent liability is a possible obligation that arises from past event, whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Group. Or it could be a present obligation as a result of past event but the payment is not probable or the amount cannot be measured reliably. The Group did not recognize any contingent liabilities but made appropriate disclosure in compliance with relevant regulations.

22) Employee benefits

A. Short-term employee benefits

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

B. Termination benefits

Termination benefits are employee benefits provided in exchange for the termination of employment as a result from either the Group’s decision to terminate an employee’s employment before the normal retirement date, or an employee’s decision to accept an offer of redundancy benefits in exchange for the termination of employee. The Group recognized expense as it can no longer withdraw an offer of termination benefit or it recognizes relating restructuring costs, whichever is earlier. Benefits that are expected to be due more than 12 months after balance sheet date shall be discounted to their present value.

C. Pensions
(A) Defined contribution plans

Effective July 1, 2005, the Group established the defined contribution plan for employees of R.O.C. nationality. The employees have the option to participate in the New Plan. Under the New Plan, the Company contributes monthly an amount equivalent to 6% of employees’ salaries to the employees’ personal pension accounts with the “Bureau of Labor Insurance”. Benefits accrued under the New Plan are portable upon termination of employment. Net defined benefit asset can only be recognized when there is a cash refund or elimination in the future accrued pension liabilities.

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(B) Defined benefit plans

  - a. In a defined benefit plan, the pension paid is determined based on the amount that an employee shall receive upon retirement, which could vary with age, work seniority and salary compensations. The Group recognizes the accrued pension obligations in the consolidated balance sheet based on the net amount of actuarial present value of defined benefit obligation less the fair value of fund, which is adjusted with the net of past service cost recognized as liabilities. Defined benefit obligation is assessed annually using projected unit credit method by the actuary. The present value of the defined benefit obligation is determined using the market yield of government bonds of a currency and term consistent with the currency and term of the employment benefit obligations.

  - b. Remeasurement arising on defined benefit plans are recognized in other comprehensive income in the period in which they arise and are recorded as retained earnings.

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

D. Employees’ remuneration and directors’ remuneration
Employees’ and directors’ remuneration are recognized as expenses and liabilities, provided that such recognition is required under legal or constructive obligation and those amounts can be reliably estimated. Any difference between the resolved amounts and the subsequently actual distributed amounts is accounted for as changes in estimates.

23) Revenues and expenses

The Group’s revenues and expenses are recognized as incurred, which mainly include:

A. Gains (losses) on sale of securities, securities brokerage fees, and commissions on brokerage and trading are recognized on the transaction date.
B. Underwriting fees and related service charges: application fees are recognized upon collection; underwriting fees and service charges are recognized when the contract is completed.
C. Gains (losses) on futures contracts: The margin of futures transaction is recognized as cost. Costs and expenses are recognized as incurred.

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D. Operating expenses: operating expenses refer to required expenses invested in the Group’s operations, which primarily include employee benefit expense, depreciation and amortization, and other business and administrative expenses.
24) Income tax
A. Current income tax
- Income tax payable (refundable) is calculated on the basis of the tax laws enacted in the countries where a company operates and generates taxable income. Except for the transactions or other matters directly recognized in other comprehensive income or equity, in which cases the related income taxes in the period are recognized in other comprehensive income or directly derecognized from equity, all the others should be recognized as income or expense for the period.
B. Deferred income tax
- Deferred income tax assets and liabilities are measured based on the tax rate of the anticipated period that the future assets realization or the liabilities settlement requires, which is based on the effective or existing tax rate at the consolidated balance sheet date. The carrying amounts and temporary differences of assets and liabilities included in the consolidated balance sheet are calculated using the balance sheet method and recognized as deferred income tax. However, the deferred income tax is not accounted for if it arises from initial recognition of an asset or liability in a transaction other than a business combination that at the time of the transaction affects neither accounting nor taxable profit (loss). Deferred income tax assets are recognized only to the extent that it is probable that taxable profit will be available against which the deductible temporary differences can be utilized. If the future taxable income is probable to provide unused loss carryforwards or deferred income tax credit which can be realized in the future, the proportion of realization is deemed as deferred income tax asset.
C. The current income tax expense is calculated on the basis of the tax laws enacted or substantively enacted at the balance sheet date in the countries where the Group operates and generates taxable income. Management periodically evaluates positions taken in tax returns with respect to situations in accordance with applicable tax regulations. It establishes provisions for income tax liabilities where appropriate based on the amounts expected to be paid to the tax authorities. An additional tax is levied on the unappropriated retained earnings and is recorded as income tax expense in the year the stockholders resolve to retain the earnings.
D. Current income tax assets and liabilities are offset and the net amount reported in the balance sheet when there is a legally enforceable right to offset the recognized amounts and there is an intention to settle on a net basis or realize the asset and settle the liability simultaneously. Deferred income tax assets and liabilities are offset on the balance sheet when the entity has the legally enforceable right to offset current tax assets against

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current tax liabilities and they are levied by the same taxation authority on either the same entity or different entities that intend to settle on a net basis or realize the asset and settle the liability simultaneously.

E. The interim period income tax expense is recognised based on the estimated average annual effective income tax rate expected for the full financial year applied to the pretax income of the interim period, and the related information is disclosed accordingly.
F. If a change in tax rate is enacted or substantively enacted in an interim period, the Group recognises the effect of the change immediately in the interim period in which the change occurs. The effect of the change on items recognised outside profit or loss is recognised in other comprehensive income or equity while the effect of the change on items recognised in profit or loss is recognised in profit or loss.
25) Share capital
A. Incremental costs directly attributable to the issuance of new shares are shown as a deduction, net of tax, from equity. Dividends from common stocks are recognized as equity in the financial period in which they are approved by the Company’s shareholders. If the date of dividends declared is later than the consolidated balance sheet date, common stocks are disclosed in the subsequent events.
B. Where the Company repurchases the Company’s equity share capital that has been issued, the consideration paid, including any directly attributable incremental costs (net of income taxes) is deducted from equity attributable to the Company’s equity holders. Where such shares are subsequently reissued, the difference between their book value and any consideration received, net of any directly attributable incremental transaction costs and the related income tax effects, is included in equity attributable to the Company’s equity holders.

26) Earnings per share

A. Earnings per share is calculated by dividing net income by the weighted average number of shares outstanding during the year after taking into consideration the retroactive effect of stock dividends and capital reserve capitalized.
B. When the Group calculates earnings per share, basic earnings per share and diluted earnings per share for all potential ordinary shares shall all be disclosed in accordance with IAS 33 “Earnings per share”.

27) Operating segments

The Group’s operating segments are reported in a manner consistent with the internal reports provided to the Chief Operating Decision-Maker. The Group’s performance of segment profit (loss) is assessed based on the profit (loss) before tax, but not segment income, assets and liabilities. The Chief Operating Decision-Maker is responsible for allocating resources and assessing performance of the operating segments.

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

1) As the consolidated financial statements of the Group may be affected by the adoption of accounting policy, accounting estimate and assumption, the Group’s management shall properly exercise its professional judgement, estimates, and assumptions on the information of the key risks that is obtained from other resources and could affect the carrying amounts of financial assets and liabilities in the next fiscal year while adopting critical accounting policies as stated in Note 4. Estimates and assumptions of the Group are the best estimates made in compliance with IFRSs that came into effect as endorsed by the FSC. Estimates and assumptions are made based on past experience and other factors (including the influence of COVID 19) deemed relevant; however, the actual results may differ from the estimates. The Group evaluates the estimates and assumptions on an ongoing basis and recognizes the adjustment of the estimates only in the period which is affected by the adjustment. If the adjustment simultaneously affects both the current and future periods, it should be recognized in both periods.
2) Relevant information on key assumptions to be made in the future, key sources of assumption uncertainty made at balance sheet date, and assumptions and estimates that may cause key risks that could affect the carrying amounts of financial assets and liabilities are as follows:
A. Fair value of financial instruments
- Financial instruments with no active market or quoted price use valuation technique to determine the fair value. Under such condition, fair value is assessed through the observable information or models of similar financial instruments. If there is no observable input available in a market, the fair value of financial instrument is assessed through appropriate assumptions. When valuation models are adopted to determine the fair value, all the models should be calibrated to ensure that the output can actually reflect actual information and market price. Models should try to take only observable information as much as possible.
B. Expected credit losses
- For financial assets, the measurement of expected credit losses uses complex models and multiple assumptions. These models and assumptions take into account future macro-economic conditions and credit behaviors of borrowers (e.g. probability of customer default and loss). Please refer to Note 12(2) for detailed information on parameters, assumptions, and estimation methods used in measuring expected credit losses and disclosure of the sensitivity of credit loss to the aforementioned factors. The measurement of expected credit losses according to applicable accounting rules involves significant judgement in several areas, for example:
- (A)The criteria used to judge whether there is significant increase in credit risk.

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(B)The selection of appropriate models and assumptions for measuring expected credit losses.

For judgements and estimations of the above expected credit losses, please refer to Note 12(2).

C. Impairment assessment on investment accounted for under the equity method When there are impairment indicators that show the investments accounted for under equity method are impaired and the carrying amount can no longer be recovered, the Group will assess the impairment of the investment. The Group assesses its share of the recoverable amount which is based on the discounted value of expected cash flow, and assess the reasonableness of relevant assumptions, including revenue growth rate, operating profit margin, net profit margin, financial forecast, and discount rate.
D. Impairment assessment of goodwill The periodic impairment assessment of goodwill includes allocation of assets, liabilities, and goodwill to brokerage segment, and determines the recoverable amount based on brokerage segment’s present value of expected future cash flow. The periodic assessment also analyzes reasonableness of relevant assumptions, including expected future trading volumes, market share, segment’s operating profit margin, and discount rates.

6. DETAILS OF SIGNIFICANT ACCOUNTS

1) Cash and cash equivalents

Cash and cash equivalents
Petty cash Checking deposits Current deposits: Deposits denominated in NTD Deposits denominated in foreign currencies Time deposits Total	June 30,2023 1,650 $ 511,992 608,873 1,217,154 3,457,000 5,796,669 $	December 31, 2022 150 $ 533,970 565,586 1,432,460 3,662,407 6,194,573 $	June 30,2022
			1,669 $ 808,447 813,413 2,288,792 2,207,596
			6,119,917 $

As of June 30, 2023,December 31, 2022 and June 30, 2022, the annual interest rates of time deposits, including foreign time deposits were 0.325%~5.413%, 0.335%~5.150%, and 0.090%~2.700%, respectively.

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2) Financial assets at fair value through profit or loss

		June 30,2023		December 31,2022		June 30,2022
Current items:
Financial assets mandatorily measured at fair
value through profit or loss:
Security lending
Security lending	$	304,587	$	208	$	-
Adjustment of security lending		483	(	45)		-
Total		305,070		163		-
Open-ended funds, money market instruments
and securities investment by brokers
Open-ended mutual funds beneficiary		155,310		156,336		64,488
Exchange-traded funds		48,252		36,450		33,046
Subtotal		203,562		192,786		97,534
Adjustment of open-ended funds ,money
market instruments and securities investment
by brokers		6,496	(	2,653)	(	4,493)
Total		210,058		190,133		93,041
Trading securities-dealer
Listed (TSE and OTC) stocks		13,474,182		2,701,353		5,566,108
Government bonds		899,888		850,036		850,369
Corporate bonds		1,953,487		1,575,767		1,406,952
Convertible corporate bonds		880,597		487,753		246,126
Emerging stocks		242,973		156,736		137,357
Overseas stocks		6,684,428		3,838,545		927,229
Exchange-traded funds		2,389,471		2,375,510		1,953,235
Unlisted stocks		142,921		138,121		70,656
Subtotal		26,667,947		12,123,821		11,158,032
Adjustment of trading securities - dealer		77,666	(	107,376)	(	1,132,522)
Total Trading securities-underwriter		26,745,613		12,016,445		10,025,510
Listed (TSE and OTC) stocks		47,850		2,122		11,154
Convertible corporate bonds		533,847		728,535		489,554
Subtotal		581,697		730,657		500,708
Adjustment of trading securities - underwriter		171,614		58,520		38,096
Total		753,311		789,177		538,804
Trading securities-hedging
Listed (TSE and OTC) stocks		8,173,807		2,758,422		3,926,748
Convertible corporate bonds		5,970,110		3,371,436		418,393
Warrants		19,238		24,283		19,600
Overseas stocks		152,124		190,309		193,859
Exchange traded funds		13,812		7,320		15,072
Subtotal		14,329,091		6,351,770		4,573,672
Adjustment of trading securities - hedging	(	48,625)	(	287,674)	(	704,004)
Total		14,280,466		6,064,096		3,869,668
Options bought-futures		2,254		11,935		58,954
Futures Margin-Own Funds		5,990,735		5,318,882		5,410,922
Derivative financial instrument assets-OTC		20,668		5,037		3,541
Total	$	48,308,175	$	24,395,868	$	20,000,440

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Non-current items: Financial assets mandatorily measured at fair value through profit or loss: Trading securities - dealer - government bonds Unlisted stocks Others Subtotal Adjustment of trading securities Total	June 30,2023 49,804 $ 435 50,000 100,239 13,923 114,162 $	December 31,2022 49,779 $ 2,609 35,000 87,388 11,895 99,283 $	June 30,2022 49,986 $ 2,609 35,000 87,595 9,114 96,709 $

a. For the three months and six months ended June 30, 2023 and 2022, net realized and unrealized gains (losses) on financial assets and liabilities at fair value through profit or loss amounted to ($1,312,446), ($623,729), ($659,391) and ($1,139,000), respectively.
b. Details of the Group’s financial assets at fair value through profit or loss pledged to others as collateral are provided in Note 8.
c. Information relating to credit risk is provided in Note 12(2).

3) Financial assets at fair value through other comprehensive income

others as collateral are provided in Note 8. c. Information relating to credit risk is provided in Note 12(2). Financial assets at fair value through other comprehensive income
June 30,2023 December 31,2022 Current items: Equity instruments Trading securities-dealer Listed (TSE and OTC) stocks 189,812 $ 189,812 $ Adjustment of trading securities - dealer 194,380 109,338 Subtotal 384,192 299,150 Debt instruments Trading securities-dealer Overseas bonds 2,919,138 2,317,088 Adjustment of trading securities - dealer 131,063) ( 118,456) ( Subtotal 2,788,075 2,198,632 Total 3,172,267 $ 2,497,782 $ June 30,2023 December 31,2022 Non-current items: Equity instruments Unlisted stocks 37,565 $ 37,565 $ Adjustment of trading securities 1,175,975 1,142,342 Total 1,213,540 $ 1,179,907 $	June 30, 2022
	189,812 $ 127,680
	317,492 - -
	-
	317,492 $
	June 30,2022
	37,565 $ 973,850
	1,011,415 $

a. The Group has elected to classify stocks investments that are considered to be strategic investments and receive steady dividend as financial assets at fair value through other comprehensive income. The fair value of such investments amounts to $1,597,732, $1,479,057 and $1,328,907 as at June 30, 2023, December 31, 2022 and June 30, 2022, respectively.

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

==> picture [462 x 231] intentionally omitted <==

c. Details of the Group’s financial assets at fair value through other comprehensive income pledged to others as collateral are provided in Note 8.
d. Information relating to credit risk is provided in Note 12(2).

4) Margin loans receivable

Margin loans receivable were secured by the securities purchased by customers under margin loans. The annual interest rate was 6.4%.

5) Customer margin account

Customer margin account
Bank deposit Futures clearing house Other futures commission merchant Securities Total	June 30,2023 14,430,546 $ 4,673,227 2,396,715 310 21,500,798 $	December 31,2022 14,648,460 $ 3,713,648 2,420,946 201 20,783,255 $	June 30,2022
			14,408,896 $ 3,968,775 2,845,267 173
			21,223,111 $

The difference between the customer margin deposits accounts and futures traders’ equity as of June 30, 2023, December 31, 2022 and June 30, 2022 were outlined below:

		June 30,2023		December 31,2022		June 30,2022
Customer margin deposits accounts	$	21,500,798	$	20,783,255	$	21,223,111
Futures trading margins receivable		177		2		37
Add: Early customer margin deposits		22,938		9,962		10,832
Net interest expense pending for transfer		-		-		8
Less: Service fee income pending for transfer	(	23,093)	(	11,628)	(	38,691)
Futures exchange tax pending for transfer	(	1,097)	(	872)	(	1,719)
Net interest income pending for transfer		-	(	6,920)	(	2,620)
Temporary receipts	(	22,194)	(	10,213)	(	33,773)
Futures traders' equity	$	21,477,529	$	20,763,586	$	21,157,185

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6) Accounts receivable

Accounts receivable
			June 30,2023		December 31,2022				June 30,2022
Accounts receivable - related parties		$	1,435		$	1,195		$	1,330
Accounts receivable - non related parties
Settlement price receivable-brokers		$	14,583,252		$	8,317,064		$	12,954,428
Settlement price receivable-dealer			965,783			87,067			1,574,530
Settlement price receivable-foreign bonds			4,506,574			757,711			586,807
Spot exchange receivable, foreign currencies			247,707			47,624			-
Interest receivable			303,944			315,061			304,276
Settlement price			2,112,910			438,735			1,186,747
Dividend receivable			2,723,118			16,460			977,152
Others			536,247			161,888			171,258
Subtotal			25,979,535			10,141,610			17,755,198
Less: Allowance for uncollectable accounts	(		526)	(		659)	(		763)
Total	$		25,979,009	$		10,140,951	$		17,754,435

A. The ageing analysis of accounts receivable that were past due but not impaired is as follows:

follows:
Accounts receivable Accounts receivable - related parties Accounts receivable - non related parties Total Accounts receivable Accounts receivable - related parties Accounts receivable - non related parties Total Accounts receivable Accounts receivable - related parties Accounts receivable - non related parties Total			June 30,2023				Total
	Up to 30 days	31 to 90 days	91 to 180 days	181 days to 12 months	More than 12 months
	832 $ 25,682,377 25,683,209 $	603 $ 60,263 60,866 $	- $ - $ 57,145 95,735 57,145 $ 95,735 $ December 31, 2022			- $ 84,015	1,435 $ 25,979,535 25,980,970 $ Total
						84,015 $

	Up to 30 days	31 to 90 days	91 to 180 days	181 days to 12 months	More than 12 months
	1,195 $ 9,837,104 9,838,299 $	- $ 46,581 46,581 $	- $ - $ 52,096 95,860 52,096 $ 95,860 $ June 30,2022			- $ 109,969	1,195 $ 10,141,610 10,142,805 $ Total
						109,969 $

	Up to 30 days	31 to 90 days	91 to 180 days	181 days to 12 months	More than 12 months
	1,330 $ 17,458,191 17,459,521 $	- $ 24,950 24,950 $	- $ 51,077 51,077 $	- $ 137,936 137,936 $		- $ 83,044	1,330 $ 17,755,198 17,756,528 $
						83,044 $

Note ： The above ageing analysis was based on invoice date.

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

~36~

7) Other receivables

Other receivables
			June 30,2023		December	31,2022			June 30,2022
Interest receivable		$	48,007		$	31,085		$	11,489
Dividends receivable			2,585			-			206,910
Others			60,525			29,378			50,196
Subtotal			111,117			60,463			268,595
Less: Allowance for uncollectible accounts	(		295)	(		355)	(		845)
Total		$	110,822		$	60,108		$	267,750

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

8) Other current assets

Other current assets
Pending settlements Pledged time deposits Deposits-in for foreign currency securities Underwriting share proceeds collected on behalf of customers Amounts held for each customer in the account Others Total	June 30,2023 221,688 $ 400,000 385,219 46 406,953 25,149 1,439,055 $	December 31, 2022 196,758 $ 400,000 808,290 249,404 265,926 30,583 1,950,961 $	June 30, 2022
			478,810 $ 529,171 1,905,577 9,027 151,740 12,052
			3,086,377 $

9) Transfer of financial assets

A. During the Group’s activities, the transferred financial assets that do not meet derecognition conditions are mainly debt instruments with purchase agreements or debt instruments lent out in accordance with securities borrowing and lending agreement. The cash flow of the contract has been transferred and related liabilities of transferred financial assets that will be repurchased at a fixed price in the future have been reflected. The Group may not use, sell or pledge the transferred financial assets during the valid period of the transaction. The financial assets were not derecognized as the Group is still exposed to interest rate risk and credit risk.
B. Financial assets that do not meet the derecognition conditions and related financial liabilities are analysed below:

liabilities are analysed below:
	Carrying amount of transferred financial assets Carrying amount of related financial liabilities June 30,2023
Financial assets category Financial assets measured at fair value through profit or loss Repurchase agreement Financial assets measured at fair value through other comprehensive income Repurchase agreement
	6,342,400 $ 7,094,957 $ 2,788,075 2,820,079

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December 31,2022	December 31,2022	Carrying amount of related financial liabilities
Financial assets category Financial assets measured at fair value through profit or loss Repurchase agreement Financial assets measured at fair value through other comprehensive income Repurchase agreement	Carrying amount of transferred financial assets
	4,814,535 $ 2,198,632 June 30,2022	4,738,787 $ 2,226,637 Carrying amount of related financial liabilities
Financial assets category Financial assets measured at fair value through profit or loss Repurchase agreement	Carrying amount of transferred financial assets
	2,022,001 $	2,075,715 $

10) Offsetting financial assets and financial liabilities

A. The Group has transactions that are or are similar to net settled master netting arrangements but do not meet the offsetting criteria, i.e. derivative financial instruments, resale and repurchase agreements. If one party breaches the contract, the counterparty can choose to use net settlement for the above transactions.
B. The offsetting of financial assets and financial liabilities are set as follows:

(Blank below)

~38~

(1) Financial assets

nancial assets
		June 30,2023
Derivative financial instruments Derivative financial instruments Description Description	Gross amounts of recognised financial assets	- $ 20,668 $ December 31,2022 Gross amounts of recognised financial liabilities set off in the balance sheet Net amounts of financial assets presented in the balance sheet Gross amounts of recognised financial liabilities set off in the balance sheet Net amounts of financial assets presented in the balance sheet			Financial instruments Cash collateral received 1,758 $ - $ Financial instruments Cash collateral received 5,037 $ - $ Not set off in the balance sheet Not set off in the balance sheet	Net amount
					Financial instruments
	20,668 $ Gross amounts of recognised financial assets					18,910 $
						Net amount
					Financial instruments
	5,037 $		- $ 5,037 $ June 30, 2022		5,037 $	- $

Derivative financial instruments Description	Gross amounts of recognised financial assets	Gross amounts of recognised financial liabilities set off in the balance sheet		Net amounts of financial assets presented in the balance sheet	Financial instruments Cash collateral received 761 $ - $ Not set off in the balance sheet	Net amount
					Financial instruments
	3,419 $	- $		3,419 $	761 $	2,658 $

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(2) Financial liabilities

nancial liabilities
		June 30,2023
Derivative financial instruments Bonds sold under repurchase agreements Total Description	Gross amounts of recognised financial liabilities	Gross amounts of recognised financial assets set off in the balance sheet	Net amounts of financial liabilities presented in the balance sheet	Financial instruments Cash collateral received 1,758 $ - $ 7,189,422 - 7,191,180 $ - $ Not set off in the balance sheet	Net amount
				Financial instruments
	1,758 $ 7,189,422 7,191,180 $	- $ 1,758 $ - 7,189,422 - $ 7,191,180 $ December 31,2022		1,758 $ 7,189,422 7,191,180 $	- $ -
					- $

Derivative financial instruments Bonds sold under repurchase agreements Total Description	Gross amounts of recognised financial liabilities	Gross amounts of recognised financial assets set off in the balance sheet	Net amounts of financial liabilities presented in the balance sheet	Financial instruments Cash collateral received 5,037 $ - $ 4,718,843 - 4,723,880 $ - $ Not set off in the balance sheet	Net amount
				Financial instruments
	8,320 $ 4,718,843 4,727,163 $	- $ 8,320 $ - 4,718,843 - $ 4,727,163 $ June 30,2022		5,037 $ 4,718,843 4,723,880 $	3,283 $ -
					3,283 $

Derivative financial instruments Bonds sold under repurchase agreements Total Description	Gross amounts of recognised financial liabilities	Gross amounts of recognised financial assets set off in the balance sheet	Net amounts of financial liabilities presented in the balance sheet	Financial instruments Cash collateral received 761 $ - $ 390,642 - 391,403 $ - $ Not set off in the balance sheet	Net amount
				Financial instruments
	761 $ 390,642 391,403 $	- $ - - $	761 $ 390,642 391,403 $	761 $ 390,642 391,403 $	- $ -
					- $

~40~

11) Investments accounted for under the equity method

nvestments accounted for under the equity method
June 30,2023 Uni-President Asset Management Corp. 679,561 $ Jin Yuan President Securities Co., Ltd. 2,640,526 3,320,087 $	December 31,2022 748,080 $ 2,764,018 3,512,098 $	June 30,2022
		649,186 $ 2,268,340
		2,917,526 $

A. The Group’s share of its associates’ profits or losses recognized in long-term equity investment accounted for under the equity method for the three and six months ended June 30, 2023 and 2022 were $8,727, $3,265, $49,839 and ($45,006), respectively.
B. The Group holds 42.49% of the equity of Uni-President Asset Management Corp., making it the single largest shareholder of the company, while the other equity is mainly held by the other 18 shareholders. Half of the voting rights of the shareholders attending the shareholders’ meeting exceeds the voting rights of the Group, and the Group does not take an active role in the management of the company. This shows that the Group has no actual ability to direct relevant activities. The Group has no control over Uni-President Asset Management Corp., but has significant influence over it.
C. The financial information of the Group’s principal associates is summarized as follows:
(a) The basic information of the associates that are material to the Group is as follows:

Company name	Principal place of businesss	Shareholdingratio	Nature of relationship	Methods of measurement
Uni-President Asset Management Corp. Jin Yuan President Securities Co., Ltd. (Note)	Taipei city Xiamen	June30,2023 December 31, 2022 June 30, 2022	Associate Associate	Equity method Equity method
		42.49% 42.49% 42.49% 49% 49% 49%

Note: The Company participated in the cash capital increase of Jin Yuan President Securities Co., Ltd. in proportion to its shareholdings in the third quarter of 2022.

(b) The summarized financial information of the associates that are material to the Group is as follows:

Balance sheet

Balance sheet	Balance sheet	Balance sheet
June 30,2023 December 31,2022 June 30,2022 Current assets 708,053 $ 944,707 $ 735,709 $ Non-current assets 815,147 784,976 752,409 Current liabilities 310,225) ( 334,677) ( 321,906) ( Non-current liabilities 36,342) ( 57,145) ( 61,053) ( Total net assets 1,176,633 $ 1,337,861 $ 1,105,159 $ Share in associate net assets 500,039 $ 568,558 $ 469,664 $ Goodwill and others 179,522 179,522 179,522 Carrying amount of the associate 679,561 $ 748,080 $ 649,186 $ Uni-President Asset Management Corp.
	December 31,2022
	944,707 $ 784,976 334,677) ( 57,145) ( 1,337,861 $ 568,558 $ 179,522 748,080 $	735,709 $ 752,409 321,906) ( 61,053) ( 1,105,159 $ 469,664 $ 179,522 649,186 $

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Balance sheet

Balance sheet
		Jin Yuan President		Securities Co.,		Ltd.
		June 30, 2023	December 31, 2022			June 30, 2022
Current assets	$	7,061,605	$	6,937,077	$	8,900,706
Non-current assets		256,793		233,398		267,028
Current liabilities	(	1,878,386)	(	1,491,521)	(	4,471,268)
Non-current liabilities	(	51,183)	(	38,100)	(	67,201)
Total net assets	$	5,388,829	$	5,640,854	$	4,629,265
Share in associate net assets	$	2,640,526	$	2,764,018	$	2,268,340
Carrying amount of the associate	$	2,640,526	$	2,764,018	$	2,268,340

Statement of comprehensive income

Statement of comprehensive income
Revenue Profit for the period from continuing operations Other comprehensive income (loss) - net of tax Total comprehensive income (loss) Dividends received from associates Revenue Loss for the period from continuing operations Total comprehensive income (loss)		Uni-President Asset		Six months ended June 30, 2022 Management Corp.
		Six months ended June 30, 2023
		670,206 $ 224,927 $ 8,895 233,822 $ 167,887 $ Jin Yuan President	661,771 $ 238,007 $ 30,449) ( 207,558 $ 199,809 $ Securities Co.,Ltd.
		Six months ended June 30, 2023		Six months ended June 30, 2022
	218,632 $ 103,901) ($ 103,901) ($		55,092 $ 298,272) ($ 298,272) ($

12) Property and equipment

Property and equipment
January1		Six months ended June 30,2023			Total
	Land	Buildings	Equipment	Leasehold improvements
Cost Accumulated depreciation and impairment Total January 1 Additions Disposal Reclassifications Depreciation June 30	1,680,129 $ - 1,680,129 $ 1,680,129 $ - - - - 1,680,129 $	1,140,158 $ 520,097) ( 620,061 $ 620,061 $ - - 2,228 20,604) ( 601,685 $	500,641 $ 206,465) ( 294,176 $ 294,176 $ 20,247 75) ( 22,412 51,895) ( 284,865 $	47,035 $ 31,759) ( 15,276 $ 15,276 $ 658 - 681 2,450) ( 14,165 $	3,367,963 $ 758,321) ( 2,609,642 $ 2,609,642 $ 20,905 75) ( 25,321 74,949) ( 2,580,844 $

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Six months ended June 30, 2023

		Six months ended June 30,2023	Six months ended June 30,2023	30,2023
June 30	Land	Buildings Equipment Leasehold improvements 1,140,996 $ 515,555 $ 33,160 $ 539,311) ( 230,690) ( 18,995) ( 601,685 $ 284,865 $ 14,165 $ Buildings Equipment Leasehold improvements 1,110,116 $ 313,717 $ 35,121 $ 488,075) ( 177,406) ( 26,474) ( 622,041 $ 136,311 $ 8,647 $ 622,041 $ 136,311 $ 8,647 $ 1,852 38,070 765 - 3) ( - 15,220 60,272 - 19,204) ( 34,329) ( 1,991) ( 619,909 $ 200,321 $ 7,421 $ Buildings Equipment Leasehold improvements 1,127,188 $ 390,385 $ 36,318 $ 507,279) ( 190,064) ( 28,897) ( 619,909 $ 200,321 $ 7,421 $ Six months ended June 30,2022		Leasehold improvements	Total
Cost Accumulated depreciation and impairment Total January1	1,680,129 $ - 1,680,129 $ Land 1,680,129 $ - 1,680,129 $ 1,680,129 $ - - - - 1,680,129 $ Land				3,369,840 $ 788,996) ( 2,580,844 $ Total 3,139,083 $ 691,955) ( 2,447,128 $ 2,447,128 $ 40,687 3) ( 75,492 55,524) ( 2,507,780 $ Total
Cost Accumulated depreciation and impairment Total January 1 Additions Disposal Reclassifications Depreciation June 30 June 30		1,110,116 $ 488,075) ( 622,041 $ 622,041 $ 1,852 - 15,220 19,204) ( 619,909 $ Buildings	313,717 $ 177,406) ( 136,311 $ 136,311 $ 38,070 3) ( 60,272 34,329) ( 200,321 $ Equipment	35,121 $ 26,474) ( 8,647 $ 8,647 $ 765 - - 1,991) ( 7,421 $ Leasehold improvements
Cost Accumulated depreciation and impairment Total	1,680,129 $ - 1,680,129 $	1,127,188 $ 507,279) ( 619,909 $	390,385 $ 190,064) ( 200,321 $	36,318 $ 28,897) ( 7,421 $	3,234,020 $ 726,240) ( 2,507,780 $

A. No interest was capitalized for property and equipment for the six months ended June 30, 2023 and 2022.
B. The information on property and equipment pledged or restricted as of June 30, 2023, December 31, 2022 and June 30, 2022 is described in Note 8.
－
13) Leasing arrangements lessee
A. The Group leases various assets including buildings, machinery and equipment, business vehicles and multifunction printers. Rental contracts are typically made for periods of 1 to 10 years. Lease terms are negotiated on an individual basis and contain a wide range of different terms and conditions. The lease agreements do not impose covenants, but leased assets may not be used as security for borrowing purposes.

~43~

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

Three months ended June 30,2023 Depreciation charge	June 30,2023 CarryingAmount	June 30,2022 CarryingAmount 177,543 $ 18,615 8,240 204,398 $ Six months ended June 30, 2022 Depreciation charge
	121,082 $ 14,591 6,297 141,970 $ Three months ended June 30, 2022
	Depreciation charge
16,428 $ 1,670 700 18,798 $	21,341 $ 1,656 664 23,661 $	42,715 $ 3,312 1,337 47,364 $

C. For the six months ended June 30, 2023 and 2022, the additions to right-of-use assets amounted to $17,666 and $56,924, respectively.
D. The information on income and expense accounts relating to lease contracts is as follows:

Items affecting profit or loss	Three months ended June30,2023	Three months ended June30,2022	Six months ended June 30,2023	Six months ended June 30,2022
Interest expense on lease liabilities Expense on short-term lease contracts Expense on variable lease payment	273 $ 3,421 27	319 $ 616 25	540 $ 4,688 43	650 $ 900 39

E. For the six months ended June 30, 2023 and 2022, the Group’s total cash outflow for leases amounted to $45,841 and $48,276, respectively.

14) Leasing arrangements – lessor

A. The Group leases various assets including office and parking space. Rental contracts are typically made for periods of 1 and 5 years. Lease terms are negotiated on an individual basis and contain a wide range of different terms and conditions.
B. For the six months ended June 30, 2023 and 2022, the Group recognized rent income in the amount of $9,177 and $8,907, respectively, based on the operating lease agreement, which does not include variable lease payments.
C. The maturity analysis of the lease payments under the operating leases is as follows:

2022 2023 2024 2025 After 2026 Total	June 30,2023		December 31,2022 - $ 18,299 4,850 - - 23,149 $	June 30, 2022
	- $ 9,180 4,339 36 90 13,645 $			9,091 $ 17,752 4,303 - -
				31,146 $

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15) Investment property

==> picture [488 x 399] intentionally omitted <==

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

Six months ended June 30, 2023
January 1 Land Buildings Total
Cost $ 198,099 $ 107,076 $ 305,175
Accumulated depreciation and impairment - ( 38,873) ( 38,873)
Total $ 198,099 $ 68,203 $ 266,302
January 1 $ 198,099 $ 68,203 $ 266,302
Depreciation - ( 1,050) ( 1,050)
June 30 $ 198,099 $ 67,153 $ 265,252
June 30 Land Buildings Total
Cost $ 198,099 $ 107,076 $ 305,175
Accumulated depreciation and impairment - ( 39,923) ( 39,923)
Total $ 198,099 $ 67,153 $ 265,252
Six months ended June 30, 2022
January 1 Land Buildings Total
Cost $ 198,099 $ 107,076 $ 305,175
Accumulated depreciation and impairment - ( 36,773) ( 36,773)
Total $ 198,099 $ 70,303 $ 268,402
January 1 $ 198,099 $ 70,303 $ 268,402
Depreciation - ( 1,050) ( 1,050)
June 30 $ 198,099 $ 69,253 $ 267,352
June 30 Land Buildings Total
Cost $ 198,099 $ 107,076 $ 305,175
Accumulated depreciation and impairment - ( 37,823) ( 37,823)
Total $ 198,099 $ 69,253 $ 267,352
----- End of picture text -----

A. For the three and six months ended June 30, 2023 and 2022, rental income from the lease of the investment property were $4,007 $4,279, $8,013 and $8,557 respectively, and direct operating expenses arising from the investment property were $917, $920, $1,839 and $1,838, respectively.

B. Details of fair value of investment property are provided in Note 12(5).

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16) Intangible assets

) Intangible assets
January1			Six months ended June 30,2023
	Computer software			Goodwill
Cost Accumulated amortization and impairment Total January 1 Additions Reclassifications Amortization Jnue 30 Jnue 30	362,033 $ 193,242) ( 168,791 $ 168,791 $ 12,350 51,925 37,212) ( 195,854 $ Computer software			42,004 $ - 42,004 $ 42,004 $ - - - 42,004 $ Goodwill
Cost Accumulated amortization and impairment Total January1	418,904 $ 223,050) ( 195,854 $
		Computer sofware		Goodwill	Customer relationships and others Total 89,929 $ 405,273 $ 54,199) ( 209,805) ( 35,730 $ 195,468 $ 35,730 $ 195,468 $ - 26,356 - 16,416 9) ( 25,894) ( 35,721 $ 212,346 $ Customer relationships and others Total 89,929 $ 446,489 $ 54,208) ( 234,143) ( 35,721 $ 212,346 $
Cost Accumulated amortization and impairment Total January 1 Additions Reclassifications Amortization Jnue 30 Jnue 30	273,340 $ 155,606) ( 117,734 $ 117,734 $ 26,356 16,416 25,885) ( 134,621 $ Computer software			42,004 $ - 42,004 $ 42,004 $ - - - 42,004 $ Goodwill
Cost Accumulated amortization and impairment Total	314,556 $ 179,935) ( 134,621 $			42,004 $ - 42,004 $

~46~

A. No interest was capitalized for intangible assets for the six months ended June 30, 2023 and 2022.
B. Goodwill and customer relationships were acquired through acceptance of transfer of the securities brokerage business of Standard Chartered (Taiwan) Bank's retail banking business, and were all allocated to the Group’s brokerage segment.
C. The recoverable amount of goodwill was periodically determined based on its value in use. Calculations of value in use after-tax cash flow projections are based on financial budgets approved by the management covering a five-year period. Cash flows beyond the five-year period are extrapolated using the estimated growth rates stated below.

The recoverable amount calculated based on the value in use exceeded the carrying amount, thus the goodwill was not impaired. The key assumptions used for calculation of value in use are as follows:

Growth rate Discount rate	Brokerage Segment 2022 0.00% 13.26%

Management determined the growth rate based on past performance and its expectations of market development. The discount rates were based on the weighted average financing cost rates determined by the Company’s capital asset pricing model. The discount rates also reflect specific risks related to relevant operating segments.

17) Other non-current assets

		June 30,2023	December 31,2022	December 31,2022		June 30,2022
Operation guaranteed deposits	$	655,000	$	655,000	$	655,000
Clearing and settlement fund		316,091		316,017		314,389
Refundable deposits		320,332		196,823		250,038
Deferred expenses		56		131		15,342
Prepaid pension expenses		88,604		77,193		1,043
Prepayment for equipment		35,998		62,098		95,890
Overdue receivables		8,013		8,224		11,113
Others		2,500		2,500		2,500
Subtotal		1,426,594		1,317,986		1,345,315
Less: Allowance for
uncollectible accounts	(	8,013)	(	8,224)	(	11,113)
Total	$	1,418,581	$	1,309,762	$	1,334,202

~47~

18) Short-term loans

June 30,2023 Unsecured loans 9,880,294 $ Secured loans 60,000 Call loans from banks 124,560 Total 10,064,854 $	December 31,2022 275,000 $ - - 275,000 $	June 30,2022 2,225,000 $ - - 2,225,000 $

As of June 30, 2023, December 31, 2022 and June 30, 2022, the interest rates of short-term loans, including foreign interest rates were 1.650%~5.850%, 1.700%, and 1.130%~1.375%, respectively. 19) Commercial papers payable

Commercial papers payable
		June30,2023	December31,2022			June30,2022
Face value	$	23,300,000	$	5,830,000	$	2,900,000
Less: discount on commercial
papers payable	(	30,329)	(	2,569)	(	520)
Total	$	23,269,671	$	5,827,431	$	2,899,480

As of June 30, 2023, December 31, 2022 and June 30, 2022, the interest rates of commercial papers, including foreign interest rates were 1.400%~1.680%, 1.250%~1.400%, and 0.800%~0.950%, respectively.

20) Financial liabilities at fair value through profit or loss - current

			June 30,2023		December 31,2022	December 31,2022			June 30,2022
Liabilities on sale of borrowed securities
- hedged		$	527,724		$	1,769,451		$	800,807
Valuation adjustment on liabilities on
sale of borrowed securities - hedged			12,535	(		47,847)	(		40,553)
Liabilities on sale of borrowed securities
- non-hedged			3,324,265			6,668,328			5,933,167
Valuation adjustment on liabilities on sale
of borrowed securities - non-hedged	(		22,875)	(		912,064)	(		1,209,975)
Subtotal			3,841,649			7,477,868			5,483,446
Issuance of call ( put ) warrants			11,213,850			8,388,823			13,689,211
Loss (Gain) on price fluctuation	(		365,489)	(		3,700,001)	(		8,761,889)
Market value (A)			10,848,361			4,688,822			4,927,322
Warrants redeemed	(		10,482,634)	(		6,461,030)	(		11,114,335)
Loss on price fluctuation			605,080			2,084,404			6,560,452
Market value (B)	(		9,877,554)	(		4,376,626)	(		4,553,883)
Warrants - net (A+B)			970,807			312,196			373,439
Options sold - TAIFEX			3,103			3,970			46,273
Outstanding Liability for Issuance of ETNs			780,398			971,128			1,069,569
Valuation adjustment on outstanding
Liability for Issuance of ETNs			15,809	(		198,830)	(		231,192)
Subtotal			796,207			772,298			838,377
Derivative financial liabilities - OTC			1,497,905			590,988			217,658
Total	$		7,109,671	$		9,157,320	$		6,959,193

~48~

Among the warrants issued by the Group, except for contract-based warrants which are Europeanstyle warrants, all other warrants are American-style warrants. Warrants are stated as liabilities for issuance of warrants at issuance price prior to expiration. Upon repurchase of warrants after issuance, the repurchased amounts are recognized as warrants repurchase and charged as a deduction to liabilities for issuance of warrants. The warrants have six to twelve months exercise period from the date of issuance. The issuer has the option to settle either by cash or stock delivery.

21) Bonds sold under repurchase agreements

Bonds sold under repurchase agreements
Government bonds Corporate bonds Bank debentures International bonds Foreign bonds Total	June 30,2023 966,749 $ 1,494,142 100,000 164,722 7,189,423 9,915,036 $	December 31,2022 919,875 $ 1,001,131 100,408 225,167 4,718,843 6,965,424 $	June 30,2022
			921,314 $ 200,364 300,081 263,314 390,642
			2,075,715 $

The above bonds sold under repurchase agreements as of June 30, 2023, December 31, 2022 and June 30, 2022 were due within one year and were contracted to be repurchased at the agreed-upon price plus interest charge on the specific date after the transaction. The total repurchase amounts were $10,005,853, $7,016,989 and $2,079,109, respectively, and the annual interest rates in every currency were shown as follows:

were shown as follows:
Accounts payable Other payables Currency June 30,2023 December 31,2022 NTD 0.85%～1.40% 0.72%~1.22% Foreign currencies (Note) 1.80%～5.50% 1.40%~4.80% Note`：`Foreign currencies include AUD, EUR, USD, GBP, RMB and NZD. June 30, 2023 December 31,2022 Settlement accounts payable - brokered trading 15,533,856 $ 7,705,822 $ Settlement proceeds 1,277,870 1,252,785 Settlement accounts payable - operating 2,807,203 935,022 Settlement accounts payable - foreign bonds 4,308,669 703,424 Spot exchange payable, foreign currencies 247,874 47,566 Others 212,593 207,775 Total 24,388,065 $ 10,852,394 $ June 30,2023 December 31,2022 Salary and bonus payable 1,003,896 $ 952,907 $ Employees' and directors' remuneration payable 124,077 49,470 Dividends payable 572,642 - Others 722,073 579,830 Total 2,422,688 $ 1,582,207 $	June 30,2022
	0.30%~0.65% 0.50%~3.05% June 30,2022
	12,020,787 $ 1,943,901 414,936 399,365 - 191,590
	14,970,579 $
	June 30,2022
	832,517 $ 198,920 2,754,315 707,307
	4,493,059 $

22) Accounts payable

23) Other payables

~49~

24) Other financial liabilities - current

Equity-linked notes (ELN) - Options Principal guaranteed notes (PGN) - fixed income Total	June 30, 2023 December31,2022 - $ - $ 4,504,843 2,784,086 4,504,843 $ 2,784,086 $	June30,2022 5,000 $ 6,224,944 6,229,944 $

The Group deals in equity-linked products and combines fixed income instruments with call or put options. These products are categorized into ELN (Equity-Linked Notes) and PGN (Principal Guaranteed Notes). On trade date, the contracted amounts are collected in full from the counterparties. The payout amount on maturity will depend on the price fluctuation of the instruments linked to these contracts and be calculated as trading price less option strike price on maturity. All the linked products are financial instruments under the supervision of the SFB (Securities and Futures Bureau).

25) Other liabilities-non-current

Other liabilities-non-current
Guarantee deposits received Net defined benefit obligation Total	June 30, 2023		December 31,2022 June 30, 2022 7,056 $ 8,028 $ 872 44,544 7,928 $ 52,572 $
	6,806 $ 526 7,332 $

26) Pension plan

A. Defined benefit plans

(A) The Group has a defined benefit pension plan in accordance with the Labor Standards Law, covering all regular employees’ service years prior to the enforcement of the Labor Pension Act on July 1, 2005 and service years thereafter of employees who chose to continue to be subject to the pension mechanism under the Law. Pension benefits are based on the number of units accrued and the average monthly salaries and wages of the last 6 months prior to retirement. Under the defined benefit pension plan, two units are accrued for each year of service for the first 15 years and one unit for each additional year thereafter, subject to a maximum of 45 units. The Group contributes monthly an amount which ranges between 2.0% and 7.2% of the employees’ monthly salaries and wages to the retirement fund deposited with Bank of Taiwan, the trustee, under the name of the supervisory committee of workers' retirement reserve fund, and with Cathay United Bank, under the name of the management committee of employees’ retirement fund. Also, the Group would assess the balance in the aforementioned labor pension reserve account by the end of December 31, every year. If the account balance is insufficient to pay the pension calculated by the aforementioned method, to the employees expected to be qualified for retirement next year, the Group will make contributions to cover the deficit by next March.

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(B) Under the defined benefit pension plan, the Group recognized the pension costs for the three and six months ended June 30, 2023 and 2022 in the statement of comprehensive income in the amount of $55, $911, $110 and $1,824, respectively.
(C) Expected contributions to the defined benefit pension plans of the Group for the year ending December 31, 2024 amount to $26,391.
B. Defined contribution plans:
Effective from July 1, 2005, the Group established a defined contribution plan pursuant to the “Labor Pension Act”, which covers employees with R.O.C. nationality and those who chose or are required to apply the “Labor Pension Act”. The contributions are made monthly based on not less than 6% of the employees’ monthly salaries and wages to the employees’ individual pension accounts at the Bureau of Labor Insurance. The payment of pension benefits is based on the employees’ individual pension fund accounts and the cumulative profit in such accounts. The employees can choose to receive such pension benefits monthly or in lump sum. The pension costs under defined contribution pension plans of the Group for the three and six months ended June 30, 2023 and 2022 were $19,463, $20,326, $39,059 and $41,655, respectively.
C. President Securities (HK), President Wealth Management (HK), and President Securities (Nominee) have defined benefit pension plans in accordance with local laws, and recognized the current pension expenses by contributing to the accrued pension assets. President Securities (HK) recognized pension expenses of $2,429, $1,379, $4,240 and $1,766, respectively, for the three and six months ended June 30, 2023 and 2022.

27) Equity

A. Common stock
(A) As of June 30, 2023, the Company’s authorized capital was $15,000,000 with a par value of $10 (in dollars) per share. As of June 30, 2023, December 31, 2022 and June 30, 2022, the common stocks issued and the outstanding common stocks were all 1,455,831 thousand shares.
B. Capital reserve

June 30, 2023 December 31, 2022 June 30, 2022		Sharepremium		Treasury share transactions		Expired stock options		Difference between consideration and carrying amount of subsidiaries acquired or disposed		Total
		24,663 $ 24,663 $ 24,663 $		65,675 $ 65,675 $ 65,675 $		483 $ 483 $ 483 $		440 $ 440 $ 440 $		91,261 $ 91,261 $ 91,261 $

Pursuant to the R.O.C. Company Law, capital reserve arising from paid-in capital in excess of par value on issuance of common stocks and donations can be used to cover accumulated deficit or to issue new stocks or cash to shareholders in proportion to their share ownership, provided it should not exceed 10% of the paid-in capital each year. Capital reserve should not be used to cover accumulated deficit unless the legal reserve is insufficient.

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C. Legal reserve

Under the Company’s Articles of Incorporation, the current year’s earnings, if any, shall first be used to pay all taxes and offset prior years’ operating losses and then 10% of the remaining amount shall be set aside as legal reserve. Except for covering accumulated deficit or issuing new stocks or cash to shareholders in proportion to their share ownership, the legal reserve shall not be used for any other purpose. The use of legal reserve for the issuance of stocks or cash to shareholders in proportion to their share ownership is permitted, provided that the balance of the reserve exceeds 25% of the Company’s paid-in capital.

D. Special reserve
In accordance with the “Rules Governing the Administration of Securities Firms”, 20% of the current year's earnings, after paying all taxes and offsetting prior years' operating losses, and plus the items other than the after-tax net profit for the period, that are included in the unappropriated earnings of the period, if any, shall be set aside as special reserve until the cumulative balance equals the total amount of paid-in capital. The special reserve shall be used exclusively to cover accumulated deficit or to increase capital and shall not be used for any other purpose. Such capitalization shall not be permitted unless the Company had already accumulated a special reserve of at least 25% of its paid-in capital stock and only quarter of such special reserve may be capitalized.

In accordance with the regulations, the Company shall set aside an equivalent amount of special reserve from accumulated unappropriated retained earnings of the current year based on the decreased amount of equity. If there is any subsequent reversal of the decrease in equity, the earnings may be distributed based on the reversal proportion.

In accordance with Jing-Guan-Zheng-Chuan Letter No. 10500278285 dated August 5, 2016, securities firms should set aside 0.5% to 1% of net income after tax as special reserve, upon the distribution of earnings from 2016 to 2018. From fiscal year 2017, special reserve as mentioned above may be reversed based on an amount equal to employees’ transformation training expenditure, transfer and arrangement expenditure arising from the development of Fintech. Further, according to Jing-Guan-Zheng-Chuan Letter No. 1080321644 dated July 10, 2019, securities firms are no longer required to set aside special reserve starting from 2019. And the special reserve, within the balance of special reserve set aside in the previous years, could be reversed at the same amount for the aforementioned expenditures.

28) Unappropriated earnings and dividends policy

A. Under the Company’s Articles of Incorporation, the current year’s earnings, if any, shall be used to pay all taxes and offset prior years’ operating losses first, and then set aside as legal reserve, accounted for as 10% of the remaining amount, and special reserve, accounted for as 20% of the remaining amount. Upon provision or reversal of special reserve in accordance with the law, any remaining amount together with unappropriated earnings at beginning of the period shall be

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distributed according to the following resolution adopted at the stockholders’ meeting: Distribution shall not be made if the balance of distributable earnings is less than 5% of paid-in capital.

B. In addition, the total amount of dividends declared every year shall be at least 70% of distributable earnings, of which stock dividends shall be at least 50% and cash dividends shall be lower than 50%.
C. The Company may determine a better proportion of cash and stock dividends distribution based on its actual operating conditions and capital utilization plan for the following year.
D. The earnings distribution for 2022 as resolved by the shareholders on May 31, 2023; the appropriation of 2021 earnings was resolved by the shareholders on June 23, 2022. Details are as follows:

Provision of legal reserve Provision of special reserve Reversal of special reserve (Note) Cash dividends Total		For the year ended December 31,2022	Amount Dividends per share (in dollars) 390,101 $ 780,203 3,413) ( 2,751,521 1.89 $ 3,918,412 $ For the year ended December 31,2021	Amount Dividends per share (in dollars) 390,101 $ 780,203 3,413) ( 2,751,521 1.89 $ 3,918,412 $ For the year ended December 31,2021
		Amount Dividends per share (in dollars) 81,278 $ 162,557 - 567,774 0.39 $ 811,609 $
			390,101 $ 780,203 3,413) ( 2,751,521 3,918,412 $	1.89 $

Note: Special reserve was provided for employees’ transition for financial technology development according to Jing-Guan-Zheng-Chuan Letter No. 1080321644 and can be reversed for employees’ transition.

29) Brokerage handling fee revenue

Brokerage handling fee revenue
Revenues from brokered trading - TWSE Revenues from brokered trading - OTC Revenues from brokered trading - Futures Others Total	Three months ended June 30,2023	Three months ended June 30,2022	Six months ended June 30,2023	Six months ended June 30,2022
	475,846 $ 168,795 169,869 35,783 850,293 $	432,905 $ 137,508 226,253 43,730 840,396 $	830,324 $ 307,328 339,756 66,865 1,544,273 $	937,284 $ 289,063 439,902 76,146 1,742,395 $

30) Revenues from underwriting business

Revenues from underwriting business
Revenues from underwriting securities on a firm commitment basis Others Total	Three months ended June30,2023	Three months ended June30,2022	Six months ended June30,2023	Six months ended June30,2022
	16,032 $ 19,102 35,134 $	234 $ 5,010 5,244 $	21,838 $ 27,769 49,607 $	17,785 $ 8,314 26,099 $

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31) Net gain (loss) on sale of operating securities

Three months ended June 30,2023 Dealers: -TAIEX 186,505 $ -OTC 126,853 -Overseas trading 44,442) ( Subtotal 268,916 Underwriters: -TAIEX 2,187 -OTC 18,346 Subtotal 20,533 Hedging: -TAIEX 76,150) ( -OTC 76,557) ( -Overseas trading 2,597 Subtotal 150,110) ( Total 139,339 $	Three months ended June 30,2022

32) Interest income

Interest income
Interest income from margin loans Interest income from bonds Others Total	Three months ended June 30, 2023	Three months ended June 30,2022	Six months ended June 30,2023	Six months ended June 30,2022
	163,842 $ 119,147 31,200 314,189 $	204,173 $ 24,101 11,249 239,523 $	308,540 $ 233,540 53,802 595,882 $	432,972 $ 53,959 20,754 507,685 $

33) Net valuation gain (loss) on operating securities at fair value through profit or loss

Gain (loss) on sale of securities - dealer Gain (loss) on sale of securities - underwriting Gain (loss) on sale of securities - hedging Total	Three months ended June 30,2023	Three months ended June 30,2022	Six months ended June 30,2023	Six months ended June 30,2022
	210,680) ($ 56,849 193,989) ( 347,820) ($	1,058,715) ($ 57,690) ( 589,552) ( 1,705,957) ($	190,282 $ 113,094 239,060 542,436 $	1,329,413) ($ 83,375) ( 1,008,529) ( 2,421,317) ($

34) Net gain (loss) on covering of borrowed securities and bonds with resale agreements - short sales

Gain (loss) from the bond investments under resale agreements Gain (loss) from securities borrowing transactions Gain (loss) from covering ( Total	Three months ended June 30,2023	Three months ended June 30,2022	Six months ended June 30,2023	Six months ended June 30,2022
	- $ 106,239 785) 105,454 $	56 $ 11,917 54,640 66,613 $	- $ 59,856 99,080) ( 39,224) ($	56 $ 47,480) ( 73,433
				26,009 $

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

value through profit or loss
Valuation gain (loss) from securities borrowing transactions Valuation gain (loss) from covering Total	Three months ended June 30,2023	Three months ended June 30,2022	Six months ended June 30,2023	Six months ended June 30,2022
	35,916) ($ 6,670) ( 42,586) ($	1,107,635 $ 31,469 $ 1,139,104 $	895,043) ($ 54,528) ( 949,571) ($	1,624,938 $ 46,696 1,671,634 $

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36) Net gain (loss) from issuance of call (put) warrants

Three months ended
June 30, 2023
Three months ended
June 30,2022
Six months ended
June 30, 2023
Net gain (loss) on changes in fair value of call
(put) warrant liabilities and redemption
59,108)
($ 863,000
$ 56,132)
($ Net gain (loss) on exercise of call (put) warrants
before maturity
9,286)
(
18,355)
(
20,531)
(
(
Expenses arising out of issuance of call
(put) warrants
93,655)
(
60,988)
(
171,110)
(
(
Total
162,049)
($
783,657
$ 247,773)
($

Six months ended
June 30,2022

1,491,373
$ 85,505)

140,426)

1,265,442
$

37) Net gain (loss) from derivatives

Futures contract gain (loss) ( Option trading gain (loss) OTC option trading gain (loss) ( Net gain (loss) on foreign exchange derivatives Asset SWAP Others ( Total (	Three months ended June 30,2023 Three months ended June 30, 2022	Six months ended June 30,2023	Six months ended June 30,2022
	968,920) $ 209,523 $ ( 8,392 51,364 109,932) 17,791 ( 70,778 37,834 86,336 21,606 ( 23,475) 12,302) ( ( 936,821) $ 325,816 $ (	591,788) $ ( 13,708 ( 25,664) 85,486 136,105) 44,842) ( 699,205) $ (	224,731) $ 3,739) 68,678 53,327 20,159 18,960) 105,266) $

38) Expected credit impairment loss and reversal of impairment gain

Impairment (loss) and reversal of impairment gain Recovery of bad debts Total	Three months ended June 30,2023	Three months ended June 30,2022	Six months ended June 30,2023	Six months ended June 30,2022
	5,153) ($ 691 4,462) ($	12,802 $ 13 12,815 $	8,079) ($ 738 7,341) ($	15,810 $ 364 16,174 $

39) Other operating income

Other operating income
Handling charges Income from securities lending Net currency exchange gain (loss) Handling fee revenues from funds Others Total Brokerage handling fee expense Dealer handling fee expense Refinancing processing fee expense Total	Three months ended June 30, 2023	Three months ended June 30,2022	Six months ended June 30,2023	Six months ended June 30,2022
	104,031 $ 19,345 20,204 44,972 188,552 $ Three months ended June 30,2023	101,051 $ 26,272 15,844 28,755 171,922 $ Three months ended June 30,2022	197,252 $ 19,867 38,711 89,000 344,830 $ Six months ended June 30,2023	196,520 $ 11,156 31,243 64,454 303,373 $ Six months ended June 30,2022
	101,736 $ 33,619 387 135,742 $	105,567 $ 36,228 723 142,518 $	185,996 $ 63,390 878 250,264 $	216,201 $ 77,441 1,049 294,691 $

40) Handling charges

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41) Financial costs

Financial costs
Interest expense from repurchase agreements Loans interest expense Other interest expense Total	Three months ended June 30, 2023	Three months ended June 30, 2022 Six months ended June 30,2023 6,117 $ 183,296 $ 8,213 148,309 5,332 54,877 19,662 $ 386,482 $	Six months ended June 30, 2022
	102,303 $ 99,523 28,068 229,894 $		10,846 $ 16,595 8,003 35,444 $

42) Employee benefits expense

Employee benefits expense
Three months ended June 30,2023 Salaries 768,605 $ Labor and health insurance 36,537 Pension 21,947 Other employee benefits 29,323 Total 856,412 $	Three months ended June 30,2022 Six months ended June 30, 2023	Six months ended June 30,2022
	484,065 $ 1,349,798 $ 35,972 84,121 22,616 43,409 34,098 61,921 576,751 $ 1,539,249 $	1,012,092 $ 75,087 45,245 73,397
		1,205,821 $

A. In accordance with the Company’s Article of Incorporation, the remainder of the year-end income before taxes less income before appropriating employees’ compensation and directors’ remuneration, if any, shall appropriate an employees’ compensation no less than 1.6% and directors’ remuneration no more than 2%. However, when the Company has an accumulated deficit, earnings to cover the deficit shall first be retained before appropriating employees’ compensation and directors’ remuneration.
B. For the three months and six months ended June 30, 2023 and 2022, employees’ compensation was accrued at $25,344, $0, $36,869 and $0, respectively; directors’ remuneration was accrued at $25,344, $0, $36,869 and $0, respectively. The aforementioned amounts were recognized in salary expenses.
C. For the six months ended June 30, 2022, employees’ compensation was estimated at 2% and directors’ remuneration at 2%, based on the period-end income before taxes less income before appropriating employees’ compensation and directors’ remuneration.
D. The actual distributed amount of employees’ and directors’ remuneration for 2022 as resolved by the Board of Directors was in agreement with the estimates in the 2022 financial statements.
E. Information on the appropriation of the Company’s earnings as resolved by the Board of Directors would be posted in the “Market Observation Post System” on the Taiwan Stock Exchange official website.

43) Depreciation and amortization

website. Depreciation and amortization
Depreciation Amortization Total	Three months ended June 30,2023	Three months ended June 30,2022	Six months ended June 30,2023	Six months ended June 30,2022
	57,505 $ 19,644 77,149 $	54,271 $ 13,730 68,001 $	117,093 $ 37,289 154,382 $	103,938 $ 26,126
				130,064 $

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44) Other operating expenses

Other operating expenses
Taxes Security lending expenses Computer information expenses TDCC service fee Postage Others Total	Three months ended June 30, 2023 Three months ended June 30,2022 198,771 $ 182,498 $ 63,532 68,875 54,743 49,463 23,630 20,616 23,372 24,005 122,294 93,491 486,342 $ 438,948 $	Six months ended June 30, 2023	Six months ended June 30,2022
		348,722 $ 125,811 103,618 42,039 45,940 229,412 895,542 $	408,874 $ 123,421 93,943 43,832 46,460 185,459 901,989 $

45) Other gains and losses

Three months ended June 30, 2023 Financial income 138,971 $ Net gain (loss) on disposal of investments 621) ( Net gain (loss) on valuation of non-operating financial instrument 1,867) ( Net currency exchange gain (loss) 3,521 Other non-operating revenues (expenses) 67,057 Total 207,061 $	Three months ended June 30,2022 Six months ended June 30, 2023 Six months ended June 30,2022 32,049 $ 260,378 $ 56,778 $ 540) ( 1,929) ( 284) ( 11,325) ( 433 18,134) ( 4,443 2,263 10,704 66,208 104,675 97,954 90,835 $ 365,820 $ 147,018 $

46) Income tax

A. Income tax expense

(a) Components of income tax expense:

Three months ended June 30,2023	Three months ended June 30,2022	Six months ended June 30,2023	Six months ended June 30,2022
68,849 $ 17,597) ( 58 51,310 15,937 15,937 67,247 $	38,951 $ 1,648) ( - 37,303 22,678 22,678 59,981 $	176,739 $ 17,597) ( 58 159,200 21,202 21,202 180,402 $	98,973 $ 1,648) ( -
			97,325
			25,831
			25,831
			123,156 $

B. As of June 30, 2023, the Company’s income tax returns have been approved by the Tax Authority until 2018. The income tax returns through 2021 of all company subsidiaries have been assessed, except for President Futures approval until 2019.
C. With respect to the income tax returns of the Company for 2018, the Tax Authority assessed to increase income tax payable by $4,581. The Company disagreed with the assessment and had filed for administrative remedy and had recognized the income tax expense based on the assessment.

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47) Earnings per share

Earnings per share
Basic earnings per share Net income attributable to common shareholders Dilutive effect of common stock equivalents Employee bonus Basic earnings per share Net income attributable to common shareholders Dilutive effect of common stock equivalents Employee bonus Basic earnings per share Net income attributable to common shareholders Dilutive effect of common stock equivalents Employee bonus	Three	months ended June 30,		Earnings per share (In dollars) 2023
	Amount after tax		Weighted-average outstanding common shares(In thousands)

	Amount after tax		Weighted-average outstanding common shares(In thousands)
	1,628,023 $ - 1,628,023 $ Three	1,455,831 2,119 1,457,950 months ended June 30,		1.12 $ 1.12 $ Earnings per share (In dollars) 2022
	Amount after tax		Weighted-average outstanding common shares (In thousands)
	397,984 $ - 397,984 $		1,455,831 - 1,455,831		0.27 $ 0.27 $

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Six months ended June 30, 2022

			Weighted-average
			outstanding	Earnings per
		Amount	common shares		share
		after tax	(In thousands)	(In	dollars)
Basic earnings per share
Net income (loss) attributable to common
shareholders	($	165,761)	1,455,831	($	0.11)
Dilutive effect of common stock equivalents
Employee bonus		-	-
	($	165,761)	1,455,831	($	0.11)

7. RELATED PARTY TRANSACTIONS

1) Names and relationships of related parties

Names of related parties Relationship with the Company Uni-President Enterprises Corp. Entity having significant influence on the Company Uni-President Asset Management Corp. Associate President Tokyo Co., Ltd. Other related party President Tokyo Auto Leasing Co., Ltd. Other related party ScinoPharm Taiwan, Ltd. Other related party Ton Yi Industrial Corp. Other related party President Chain Store Corp. (PCSC) Other related party Presco Netmarketing Co., Ltd. Other related party President Professional Baseball Team Co., Ltd. Other related party Q-WARE Systems & Services Corp. Other related party Tung Ho Development Co., Ltd. Other related party Cayman President Holdings, Ltd. Other related party Fund managed by Uni-President Asset Security investment trust fund raised by the Management Corp. Uni-President Assets Management Corp.

2) Significant related party transactions and balances

A. Accounts receivable

Accounts receivable
Entity having significant influence on the company: Uni-President Enterprises Corp. Associate: Uni-President Assets Management Corp. Other related party: ScinoPharm Taiwan, Ltd. President Chain Store Corp. (PCSC) Others Total		June 30,2023		December 31,2022		June 30,2022
		744 $ 10 375 221 85 1,435 $		350 $ - 336 406 103 1,195 $		364 $ - 660 224 82 1,330 $

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B. Prepayments

B. Prepayments
C. Other receivables D. Guarantee deposit received E. Other payables Other related party: Q-WARE Systems & Services Corp. Tung Ho Development Co., Ltd. President Chain Store Corp. (PCSC) Presco Netmarketing Co., Ltd. Others Total Associate: Uni-President Assets Management Corp. Other related party: Others Total Associate: Uni-President Assets Management Corp. Other related party: President Tokyo Co., Ltd. Total Other related party: President Tokyo Co., Ltd. President Tokyo Auto Leasing Co., Ltd. Total	June 30,2023 7,376 $ 600 243 7 18 8,244 $ June 30,2023	December 31,2022 7,663 $ 600 340 8 9 8,620 $ December 31,2022	June 30,2022 1,799 $ 600 246 8 152 2,805 $ June 30,2022 $ 199,648 31 199,679 $ June 30,2022 1,044 $ 1,418 2,462 $ June 30,2022
	$ - 23 23 $ June 30, 2023	$ - 14 14 $ December 31, 2022
	1,044 $ 1,418 2,462 $ June 30,2023	1,044 $ 1,418 2,462 $ December 31,2022
	412 $ 63 475 $	- $ - - $	- $ - - $

－
F. Lease transactions lessee
(A) The Group leases business vehicles and multifunction printers, etc., from President Tokyo Co., Ltd. Rental contracts periods are typically 1 to 5 years. Rents are paid monthly.
(B) Right-of-use assets:
- a. Acquisition of right-of-use assets

ight-of-use assets: . Acquisition of right-of-use assets
Other related party: President Tokyo Co., Ltd.		Six months ended June 30,2023	Six months ended June 30,2022
		1,427 $	3,044 $

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b. Disposition of right-of-use assets

. Disposition of right-of-use assets
Other related party: President Tokyo Co., Ltd.	Six months ended June 30,2023 1,290 $	Six months ended June 30,2022
		1,018 $

(C) Lease liabilities

`－` a. Lease liabilities current

ease liabilities . Lease liabilities`－`current
. Lease liabilities`－`non-current Other related party: President Tokyo Co., Ltd. $ President Tokyo Auto Leasing Co., Ltd. Total $ Other related party: President Tokyo Co., Ltd. President Tokyo Auto Leasing Co., Ltd. Total	June 30, 2023 December 31,2022 7,333 7,616 $ 744 742 8,077 8,358 $ June 30,2023 December 31,2022 9,975 $ 12,362 $ 1,819 2,192 11,794 $ 14,554 $	December 31,2022		June 30, 2022
		$	7,616 742 8,358 December 31,2022	7,879 $ 739 8,618 $ June 30,2022
		$

			12,362 $ 2,192 14,554 $		13,929 $ 2,563 16,492 $

`－` b. Lease liabilities non-current

c. Interest expense

Other related party: President Tokyo Co., Ltd. President Tokyo Auto Leasing Co., Ltd. Total	Three months ended June 30,2023	Three months ended June 30,2022	Six months ended June 30, 2023	Six months ended June 30,2022
	32 $ 4 36 $	38 $ 5 43 $	68 $ 9 77 $	85 $ 11 96 $

d. Gain from lease modification

Other related party: President Tokyo Co., Ltd.	Three months ended June 30,2023	Three months ended June 30,2022	Six months ended June 30,2023	Six months ended June 30,2022
	1 $	1 $	1 $	1 $

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G. Handling fee revenue

Handling fee revenue
Entity having significant influence on the company: Uni-President Enterprises Corp. Security investment trust fund raised by the Uni-President Asset Management Corp.: Fund managed by Uni-President Asset Management Corp. Other related party: Others Total	Three months ended June 30,2023 $ - 24,411 539 24,950 $	Three months ended June 30,2022	Six months ended June 30,2023 Six months ended June 30,2022 $ - $ 4 41,644 38,247 756 847 42,400 $ 39,098 $
		$ 3 18,461 216 18,680 $

Terms of handling fee revenue mentioned above are similar to those of transactions with third parties.

H. Net gain (loss) on wealth management - trust income from sales of funds

Associates: Uni-President Assets Management Corp.	Three months ended June 30,2023	Three months ended June 30, 2022	Six months ended June 30,2023	Six months ended June 30, 2022
	3,708 $	2,695 $	7,121 $	4,913 $

The revenues were collected on a monthly basis in accordance with contract terms.

I. Other operating revenue - handling fee revenues from underwriting funds

Associates: Uni-President Assets Management Corp.

e revenues from underwriting funds
Three months ended June 30,2023 Three months ended June 30, 2022 Six months ended June 30, 2023	Six months ended June 30,2022
19,721 $ 15,182 $ 37,676 $	29,598 $

The revenues were collected on a monthly basis in accordance with contract terms.

J. Other operating revenue - Other

Other operating revenue-Other
Associates: Uni-President Assets Management Corp.	Three months ended June 30,2023	Three months ended June 30,2022	Six months ended June 30,2023	Six months ended June 30,2022
	720 $	600 $	1,440 $	1,200 $

K. Rent income

Rent income
Associates: Uni-President Assets Management Corp. Other related party: President Tokyo Co., Ltd. Total	Period 2016.01.01~2024.03.31 2019.04.01~2024.03.31	Deposit 1,044 $ 1,418	Three months ended June 30,2023	Three months ended June 30,2022	Six months ended June 30,2023	Six months ended June 30,2022
			1,713 $ 2,236 3,949 $	1,566 $ 2,236 3,802 $	3,427 $ 4,471 7,898 $	3,132 $ 4,471 7,603 $

Rental income mentioned above is derived from leasing part of the Group’s office space and business premises to various related parties and calculated as agreed by both parties. Lease payments are collected on schedule in accordance with the terms of the lease contracts.

L. Revenues from underwriting business

Entity having significant influence on the company: Uni-President Enterprises Corp.	Three months ended June 30,2023	Three months ended June 30,2022	Six months ended June 30,2023	Six months ended June 30,2022
	2,800 $	- $	2,800 $	- $

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M.Stock custodian income

Stock custodian income
Three months ended June 30, 2023 Entity having significant influence on the company: Uni-President Enterprises Corp. 1,119 $ Associate: Uni-President Assets Management Corp. 35 Other related party: ScinoPharm Taiwan, Ltd. 647 Ton Yi Industrial Corp. 321 President Chain Store Corp. (PCSC) 676 Others 177 Total 2,975 $	Three months ended June 30,2022 Six months ended June 30, 2023 1,120 $ 2,169 $ 35 75 660 1,157 320 629 693 1,285 171 343 2,999 $ 5,658 $	Six months ended June 30,2022
		2,056 $ 74 1,190 628 1,313 338 5,599 $

Terms of stock custodian income mentioned above are similar to third parties.

N. Other operating expenses - Other

Other operating expenses-Other
Other related party: President Tokyo Co., Ltd. Presco Netmarketing Co., Ltd. President Professional Baseball Team Co., Ltd. Total	Three months ended June 30, 2023	Three months ended June 30,2022	Six months ended June 30,2023	Six months ended June 30, 2022
	19 $ 751 2,310 3,080 $	104 $ 546 770 1,420 $	32 $ 837 2,310 3,179 $	150 $ 3,814 770 4,734 $

O. Financial expense

Financial expense President Tokyo Co., Ltd. Presco Netmarketing Co., Ltd. President Professional Baseball Team Co., Ltd. Total	19 $ 751 2,310 3,080 $	104 $ 546 770 1,420 $	32 $ 837 2,310 3,179 $	150 $ 3,814 770 4,734 $
Other related party: Cayman President Holdings, Ltd.	Three months ended June 30,2023	Three months ended June 30,2022	Six months ended June 30,2023	Six months ended June 30,2022
	- $	2 $	- $	56 $

P. Purchases of trading securities – dealer

Entity having significant influence on the company: Uni-President Enterprises Corp. Security investment trust fund raised by the Uni-President Asset Management Corp.: Uni-President Asset Management Corp. Other related parties: President Chain Store Corp. Ton Yi Industrial Corp. Total	June 30,2023	June 30,2023	Three months ended June 30,2023	Three months ended June 30,2023		Six months ended June 30,2023
	Ending Shares (In thousands)	Ending Balance		Gain(loss) 1,887 $ 6,262 7 - 8,156 $		Gain(loss) 2,265 $ 360 7 11 2,643 $
	112 - 5 -	8,546 $ 29,529 1,413 - 39,488 $

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Entity having significant influence on the company: Uni-President Enterprises Corp. Security investment trust fund raised by the Uni-President Asset Management Corp.: Uni-President Asset Management Corp. Other related parties: President Chain Store Corp. Others Total	Ending Shares (In thousands) EndingBalance 72 4,795 $ - 501,237 - - 21 358 506,390 $ December 31,2022		Year ended June 30,2022
		Gain(loss) 588) ($ 25,384) ( 275) ( 726 25,521) ($

Entity having significant influence on the company: Uni-President Enterprises Corp. Security investment trust fund raised by the Uni-President Asset Management Corp.: Uni-President Asset Management Corp. Other related parties: President Chain Store Corp. ScinoPharm Taiwan, Ltd. Others Total		Ending Shares (In thousands) EndingBalance June 30,2022	Ending Shares (In thousands) EndingBalance June 30,2022	Three months ended June 30,2022 Six months ended June 30, 2022
		Ending Shares (In thousands)		Gain(loss) Gain(loss) 17) ($ 280) ($ 9,748) ( 4,306) ( 41 8) ( - - 302 333 9,422) ($ 4,261) ($
		8 - - - 2	536 $ 483,140 - - 54 483,730 $

Q. Compensation of key management personnel

The compensation of key management such as directors, general managers, vice general managers were as follows:

ere as follows:
Salary and short-term employee benefits Retirement benefits Other long-term employee benefits Termination benefits Share-based payment Total	Three months ended June 30,2023	Three months ended June 30,2022	Six months ended June 30,2023	Six months ended June 30,2022
	72,209 $ 421 - - - 72,630 $	23,011 $ 386 - - - 23,397 $	92,755 $ 826 - - - 93,581 $	44,273 $ 804 - - - 45,077 $

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8. PLEDGED ASSETS

The Company’s assets pledged or restricted for use were as follows:

Assets Trading securities (par value) - Corporate bonds - Government bonds - Overseas bonds - International bonds - Bank debentures Financial assets at fair value through other comprehensive income - current - Overseas bonds (par value) Others current assets: - Pledged demand deposits - Pledged time deposits - Government bonds (par value) Property and equipment - Land and buildings (book value) Pledged time deposits - Operating guarantee deposits - Refundable deposits Financial assets at fair value through profit or loss - current: Financial assets at fair value through profit or loss - non -current:	June 30,2023 1,500,000 $ 900,000 4,680,404 174,969 100,000 3,000,400 777 400,000 50,000 1,088,369 655,000 2,000	December 31,2022 1,000,000 $ 848,100 2,661,333 237,302 100,000 2,400,355 250,167 400,000 50,000 1,091,048 655,000 2,000	June 30,2022 200,000 $ 847,700 416,000 275,555 300,000 - 9,746 529,171 50,000 1,101,798 655,000 2,000	Purposes
				Securities for bonds sold under repurchase agreements Securities for bonds sold under repurchase agreements Securities for bonds sold under repurchase agreements Securities for bonds sold under repurchase agreements Securities for bonds sold under repurchase agreements Securities for bonds sold under repurchase agreements Collections on behalf of third parties and reimbursement for wages and stocks Securities for short-term loans and guarantees for issuance of commercial papers Trust fund deposit-out Securities for short-term loans and guarantees for issuance of commercial papers Security deposits Security deposits

9. SIGNIFICANT COMMITMENTS

None.

10. SIGNIFICANT LOSS FROM NATURAL DISASTER

None.

11. SIGNIFICANT SUBSEQUENT EVENT

None.

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12. OTHER

1) Management objective and policy of financial risks

A. Risk management objective

The Group continually strengthens risk culture to every employee and makes sure that the Group can actively develop various businesses under a healthy and effective risk management system. At the same time, by creating value of an entity and continually increasing profit, profit maximization may be achieved within appropriate risk tolerance.

B. Risk management system
In order to ensure the completeness of risk management system, run the balancing mechanism of risk management, and improve the division efficiency of risk management, the Group sets up “Risk Management Policy”. Such policy aims to establish internal system compliance and the guiding tools for policies communication within the Group and enable every layer of the Group engaged in different tasks to identify, evaluate, monitor, and control various risks with establishment of consistent compliance rules for risks of each business so that the risks can be controlled within the limits set in advance.

The Group’s risk management system covers risks incurred from businesses on and off the balance sheet, such as market risk, credit risk, liquidity risk, operating risk, legal risk, model risk, reputation risk and climate risk, which are all included in the risk management.

C. Risk management organization
Risk management organization: Board of Directors, Risk Management Committee, Risk Control Office, Business units and other related segments (such as Office of Auditing, Office of General Manager, Compliance segment, Legal segment, Finance segment, Settlement segment and General Affair segment) are in charge of planning, supervising and execution.
(A) The Board of Directors should ensure the effectiveness of risk management and be responsible for the ultimate result and the following duties:
- a. To establish proper risk management system, operating process, and risk management culture in the Group with allocation of necessary resource for better execution and operation.
- b. Policy of risk management review.
- c. Review and approval of business application, transaction authorization and risk limit.
(B) The Risk Management Committee reports to the Board of Directors and is responsible for the following:
- a. Review risk management policy.
- b. Review the highest risk tolerance.
- c. Submit regular reports to the Board of Directors in relation to the risk management status of the whole Group.
(C) The General Manager supervises daily risk management of the entire Group and is responsible for the following:
- a. Supervise and monitor daily risk management of the entire Group.
- b. Approval of management exceptions.
(D) Assets and Liabilities Committee reports to the General Manager and is responsible for the following:
- a. Set up the ultimate guidelines for assets and liabilities management of the entire Group.
- b. Analyze and control the entire Group’s assets and liabilities portfolio.
- c. Approval of various businesses’ quotas.
- d. Gather and analyze information on domestic and offshore interest rate, exchange rate, prosperity fluctuation, political and economic environmental changes, and predict the financial trend in the future.

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(E) Risk Control Office implements risk management policy and related regulations and reports to the Risk Management Committee. Risk Control Office also reports daily risk management to the General Manager and is responsible for the following:
- a. Establish Risk Management Policy of the entire Group.
- b. Develop effective method for measurement and risk management in an entity.
- c. Review risk management system of business units.
- d. Generate risk report through information gathering and consolidation.
- e. Analyze various business risks and report to the General Manager.
- f. Report the risk management situation to the Risk Management Committee according to a meeting’s nature and needs.
- g. Carry out duties as designated by the Risk Management Committee and control risks of business units.
(F) Auditing Office is responsible for the following:
- a. Execute operating risk control.
- b. Include the risk management system into internal audit program and carry out the daily audit schedule.
- c. Assess the effectiveness of internal control and verify the executed result.
(G) Compliance segment and legal segment under the Office of General Manager are responsible for the following:
- a. Compliance segment should make sure that the business operation and risk management system are in compliance with relevant regulations.
- b. Legal segment is responsible for legal risk control.
- c. Compliance segment also provides services of Anti-Money Laundering and Counter Terrorism Financing, including designs specification and internal control, establishes transaction monitoring, oversees the effective implementation of business units, conducts the employee training and reports any suspicion of money laundering.
(H) Finance segment is responsible for the following:
- a. Verify the correctness of position information and reasonability of profit and loss calculation.
- b. Control and analyze self-owned capital adequacy ratio.
- c. Analyze the appropriateness of structures of the assets and liabilities.
(I) Business units are responsible for the following:
- a. Set up risk management details of various businesses according to the risk management policy and other related regulations.
- b. Provide sufficient position information and risk control information to the Risk Control Office.
(J) Settlement division is responsible for the following:
- a. Clearing and settlement; risk control and management of margin purchase and short sale of securities.
- b. Risk control and management of trading middle office and enforcement of rules governing risk management of business segments.
(K) General Affair segment is responsible for the following:
- a. Verify and manage greenhouse gas.
- b. Sustainable resources management, responsible procurement and supplier management.
D. Risk management policy

In order to ensure the completeness of risk management system, run the balancing mechanism of risk management, and improve the division efficiency of risk management, the Group sets up “Risk Management Policy”. Such policy aims to establish internal system compliance and the guiding tools for policies communication within the Group and enable every layer of the Group

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engaged in different tasks to identify, evaluate, monitor, and control various risks with establishment of consistent compliance rules for risks of each business so that the risks can be controlled within the limits set in advance.

Risk management processes include risk identification, risk evaluation, risk supervision and various risk control. Each kind of risk evaluations and responding strategies are described as follows:

(A) Market risk management

The Group has implemented risk management information system (Risk Manager) in relation to market risk control. All trading positions of the Group have been included in the daily risk control system for the calculation of Value at Risk (VaR). Limit exceeding indicators are mainly the nominal principal, stop-loss, sensitivity (Greeks) and VaR. The risk management report is presented on a daily basis for implementation of regular control and limit exceeding handling procedures.

(B) Credit risk management

In relation to risk control, the quantitative model of default rate adopts KMV model to calculate the default rate of issuers with credit exposure of the issuing company and the trading counterparties, and credit risk of securities disclosed in the report. The credit exposure is mitigated through regular review of credit status.

Unit in charge of fund procurement regularly predicts future fund demand and supply, and consolidates company guarantee or endorsement and capital lending businesses to monitor the condition of fund procurement on a daily basis.

(D) Operating risks

Settlement segment is responsible for confirming the settlement and clearing, accounts opening and the actual disbursement. Finance segment prepares vouchers based on the actual transaction evidence and compares whether the accounts and cash accounts are matched, and confirms the operating risks of accuracy of the transaction from an accounting perspective. Auditing segment is responsible for internal audit and internal control, and regularly samples and checks the performance of each unit.

(E) Legal risk

Legal segment is responsible for reviewing of the Company’s various derivative financial instrument contracts, ISDA and individual account contracts, etc. and handle all legalrelated issues.

(F) Climate risks

The potential climate risk on investment position is estimated based on the two main risk indicators of climate risk, the physical risk and the transition risk. The Company complies with the policy guidelines set by the competent authorities and initiatives or guidelines internationally and generally recognised to enhance the quality and transparency of information disclosure.

E. Hedging and risk-offsetting strategy
(A) Policies of hedging and risk mitigating are parts of the Group’s risk management policies, and the hedging position and hedged trading position are supposed to be one portfolio, of which the gain and loss and risk information are measured on a consolidated basis.
(B) The overall position (hedging position and trading position) is included in the daily risk management system to calculate Value at Risk and other relevant information. Limit exceeding indicators mainly include nominal principal, stop-loss point, price sensitivity and

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VaR. With the presentation of daily risk management report, routine control and limit exceeding treatment can be executed.

(C) The continued effectiveness of hedging and risk-offsetting strategy is measured by the gain and loss of overall position (hedging position and trading position), in order to track reasonableness of the profit or loss of hedging position and the offsetting relationship with the profit or loss of trading position, and to control them within a reasonable range.
2) Credit risk
A. Source and definition of credit risk

The credit risk exposure of the Group as a result of engagement in financial transactions include issuer’s credit risk, credit risk of counterparty and credit risk of underlying assets:

(A) Credit risk of the issuer refers to the issuers of financial debt instruments held by the Group failing to repay its obligation due to the fact that the issuer breaches the contract resulting in the risk of financial loss to the Group.
(B) Credit risk of counterparty refers to risk of financial loss to the Group arising from default by the counterparty of financial instruments on the settlement or payment obligation.
(C) Credit risk of the underlying assets happens when the credit rating of the underlying assets linked to the financial instrument is downgraded by the rating agency or when the losses occur as a result of contract default.

The financial assets held by the Group which could result in credit risk include bank deposit, debt securities, derivatives transactions in OTC, bonds purchased/sold under resale/repurchase agreements, refundable deposit of securities lending, futures trade margins, other refundable deposits and receivables.

B. Maximum credit risk exposure and credit risk concentration

The maximum exposure to credit risk of financial assets in the consolidated balance sheet, without consideration of the collateral or other credit enhancements, is equivalent to the carrying amount. In Taiwan, the sources of credit risk of the Group are primarily resulting from cash deposited with banks or other financial institutions, debt securities issued or guaranteed by a bank, derivative instruments transaction underwritten by the Group, and all counterparties of customer margin deposits accounts being financial institutions. Credit risks of various financial assets are as follows:

(A) Cash and cash equivalents

Cash and cash equivalents include time deposit, demand deposits and checking deposits. Correspondent institutions are mainly domestic financial institutions.

(B) Financial assets at fair value through profit and loss -current
a. Fund

The funds held by the Group are bond funds. As the positions held are not significant, credit risk is deemed low.

b. Commercial papers

The commercial papers held by the Group are under resale agreements. As all the counterparties are financial institutions with good credit, the credit risk from counterparties is extremely low.

c. Debt securities

Debt securities are mainly positions like government bonds, convertible corporate bonds and foreign bonds and the issuers are primarily R.O.C. government, domestic and foreign legal entities. 15% of convertible corporate bond is guaranteed by banks. Details are as follows:

(a) Government bonds

The bonds held by the Group are mostly government bonds (inclusive of central and local government). As a whole, the credit risk of the bonds held by the Group is low.

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(b) Corporate bonds

The corporate bonds held by the Group are mainly underlying investment with good credit rating and those with rating above (S&P BB).

The convertible corporate bonds held by the Group are mostly issued by the domestic legal entities. The Group mitigates highly risky credit exposure of the issuers by control through Taiwan Corporate Credit Risk Index (TCRI).

(d) Foreign bonds

The foreign bonds held by the Group are mainly underlying investment with good credit rating and those with rating above (S&P BB).

The foreign government bonds held by the Group are classified as debt instruments at fair value through other comprehensive income. In general, the bonds held by the Group are with lower credit risk.

(D) Derivatives- futures trade margin

When engaging in futures trades in stock exchange market, the Group needs to deposit margin into a margin deposit account of a financial institution designated by the futures merchants as a guarantee to fulfil contractual obligation in the future. As a result, the credit risk is low.

(E) Derivatives-OTC

The Group signs International Swaps and Derivatives Association (ISDA) agreements with each counterparty when engaging in OTC derivatives as an agreement regarding such transactions for both parties. In the agreement, it provides a fundamental contractual model for OTC derivative transactions. If any party breaches the contract or terminates the transactions early, then all the open interest covered in the agreement should be settled by net amount as bound in the contract. When the ISDA agreement is signed, the Credit Support Annex (CSA) is also signed. According to the CSA, collateral will be transferred from a party to the other during transaction process to mitigate the risk of counterparty in open interest. Please refer to Note 6(10).

Types of OTC derivative transactions in which the Group is engaged include structured notes and swap transaction. The counterparties are all from financial service industry and mainly located in Taiwan, United States, and United Kingdom.

(F) Bonds investment under a resale agreement

Bonds sold under a resale agreement are the bonds that the client sold to the Group at a price, interest rate, length of period as agreed by two parties and the client shall repurchase the bonds at the specified price upon maturity. The Group needs to assume credit risk from counterparties when underwriting such business, as the payment being delivered to the other party. With consideration of good collateral obtained, the net of credit risk exposure from counterparties can be effectively reduced. As all the counterparties are financial institutions with good credit rating, the credit risks from counterparties are extremely low. Please refer to Note 6(10).

(G) Margin loans receivable

Margin loans receivable are the loans provided to the client in order to process businesses of margin trading and short sale using the securities purchased through financing as collateral. The Group monitors the clients’ margin ratio through information system on a daily basis. As the margin ratio of margin trading is set at 130% according to Regulations Governing the Conduct of Securities Trading Margin Purchase and Short Sale Operations by Securities Firms, the credit risk is extremely low.

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(H) Receivables of securities business money lending
Receivables of securities business money lending are the non-restricted purpose loan business and monetary financing business, pursuant to an agreement between a securities firm and a customer, using customer securities and other commodities as collateral. The Group regularly assesses its customer line of credit and implements appropriate credit control. As the margin ratio of margin trading is set at 130% according to Regulations Governing the Conduct of Securities Trading Margin Purchase and Short Sale Operations by Securities Firms, the credit risk is extremely low.
(I) Guaranteed price for securities lending Guaranteed price for securities lending is the sale price of the Group’s securities sold by other securities firms through margin trading after deduction of securities transactions tax and service fee, which is deposited in other securities firms as collateral. As all the counterparties are financial institutions with good credit rating, the credit risk from counterparties is extremely low.
(J) Refundable deposits for securities lending
Refundable deposits for securities lending are the margins deposited in other securities firm as collateral when the Group’s securities are sold. As all the counterparties are financial institutions with good credit, the credit risk from counterparties is extremely low.
(K) Receivables
Receivables are the credit rights arising from the securities business including settlement receivables of consignment trading, settlement receivables of operating securities sold, financing interest receivables of self-operating credit transaction, receivables of consignment trading for securities, and receivables from banks’ underwriting on foreign exchange transactions and foreign fund demand. As the majority of the Group’s receivables from the consignment businesses and self-operating businesses are settlement of securities from OCT or TWSE, the credit risk is extremely low. As the foreign exchange transactions are simply the receipt or payment of different currencies and the correspondent banks are of good credit rating, the credit risk is extremely low.
(L) Other current assets
Other current assets are mainly the collateral deposited in the bank for application for shortterm debt limit and guarantee for application for issuance of commercial papers. As the correspondent banks are all financial institutions with good credit rating, the credit risk is extremely low.
(M) Financial assets at fair value through profit and loss – non-current In order to underwrite trust business, the Group deposits central government bonds in the Central Bank as collateral. Regardless of the bonds themselves or the financial institutions where the bonds are deposited, the credit risk is extremely low.
(N) Other non-current assets
Other non-current assets mainly comprise operating guarantee deposits, settlement funds, and refundable deposits. Operating guarantee deposits are mainly deposited in domestic banks with good credit rating. Settlement funds are deposited in securities exchange. Settlement funds are used as compensation when a party to a marketable securities transaction fails to fulfil the settlement obligation. The credit risks from the institutions where these two assets are deposited are extremely low. The refundable deposits refer to cash or other assets which are deposited externally by the Group and can be used as refundable deposits. Because deposits are placed in various financial institutions and each deposit amount is small, the credit risk is dispersed and the credit exposure of overall refundable deposit is extremely low.

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C. Expected credit loss assessment

In the assessment of impairment and calculation of expected credit losses, the Group considers reasonable and supporting information about past events, current conditions and future economic conditions. The Group determines at the balance sheet date whether there has been a significant increase in credit risk since initial recognition or whether credit impairment has occurred, and recognizes expected credit loss according to which stage the asset belongs: no significant increase in credit risk or low credit risk at balance sheet date (Stage 1), significant increase in credit risk (Stage 2), and credit impaired (Stage 3). 12-month expected credit losses are recognized for assets in Stage 1, and lifetime expected credit loses are recognized for assets in Stage 2 and Stage 3.

The definition of and expected credit losses recognized for each stage are as follows:

Item	Stage 1	Stage 2	Stage 3
Definition	No significant deterioration of credit quality of the financial asset since initial recognition, or the financial asset is considered low-risk at the balance sheet date.	Significant deterioration of credit quality of the financial asset since initial recognition, but the asset is not yet credit impaired.	The financial asset is credit impaired at the financial reporting date.
Expected credit losses recognition	12-month expected credit losses	Lifetime expected credit losses	Lifetime expected credit losses

(A) Judgements of the significant increase in credit risk since initial recognition Judgements and assumptions used to determine whether the credit risk has a significant increase since initial recognition when the Group calculates expected credit loss under IFRS 9 are as follows:
a. If contractual payments are over 30 days past due according to the payment terms, the financial asset is considered to have significant increase in credit risk since initial recognition.
b. There is significant increase in credit risk at the reporting date if the credit rating of the issuer has been downgraded by more than 2 grades and the final external credit rating at the reporting date is non-investment grade, if the interest payments are over 30 days past due, or if there has been a default in the past.
(B) Definition of default and credit-impaired financial assets
According to the definition of credit impairment set by IFRS 9, a financial asset is creditimpaired when one or more events that have occurred and have a significant impact on the expected future cash flows of the financial asset. The criteria used to judge whether a financial asset is credit-impaired since initial recognition includes but is not limited to the following:
a. Contractual payments or principal or interest payments on bonds are over 3 months (90 days) past due.
b. Bond investment is rated as “in default” by external credit rating agencies.

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c. Bond issuer has filed for bankruptcy, restructure, or other debt clearance procedures.
d. Issuer or counterparty has financial difficulties.
(C) Writing-off policy
If any of the following condition applies, the Group will write off the non-recoverable portion of the overdue receivables as bad debt.
a. Debt cannot be fully or partially recovered due to dissolution of, disappearance of, settlement with, bankruptcy declaration by the debtor, or any other reason.
b. The collateral and the assets of the primary and secondary debtors could not be auctioned off after multiple attempts and multiple price discounts, and the Company has not received any real benefits in assuming the collateral.
c. Payments are over two years past due and could not be recovered after attempts to collect.
(D) Measurement of expected credit losses
The Group considers reasonable supporting information which shows significant increase in credit risk since initial recognition when calculating expected credit losses. Main indexes include: internal/external credit rating, information of past due, credit spread, other market information in relation to the borrower, issuer or counterparty, and significant increase in credit risk of other financial instrument of the same borrower.
Investments in bills and bonds
(a)Probability of default was based on external credit rating, which include forward-looking information.
(b)Loss given default was based on the average loss given default of external credit rating of investment position and counterparties.
(c)Exposure at default

Stage 1, Stage 2 and Stage 3: Total carrying amount (including interest receivable).

(E) Consideration of forward-looking information
- Historical loss rate (based on the historical experience in the past 3 to 5 years) as obtained and compared with economic environment in the past, nowadays and future (forwardlooking factor) to see whether there is any significant change, and then to properly adjust future loss rate standards. If any significant default event occurs, the loss rate in the current year will be included in the calculation of future loss rate standard.
D.Table of movements in loss provision of the Group
(A) At June 30, 2023, December 31, 2022 and June 30, 2022, there were no changes in the loss allowance for investments in debt instruments measured at fair value through other comprehensive income.
(B) Except for bond interest receivable which was evaluated along with debt investments, the Group applies the simplified approach to measure the loss allowance at an amount equal to lifetime expected credit losses for marginal receivables, accounts receivable, other receivable-others and overdue receivables. The movements in loss provision of marginal receivables, accounts receivable, other receivable-others and other non-current assetsoverdue receivables of the Group are as follows:

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	Marginal receivable	Accounts receivable Other receivable Other non-current assets-overdue receivables 659 $ 355 $ 8,224 $ 133) ( 60) ( 211) ( 526 $ 295 $ 8,013 $ Accounts receivable Other receivable Other non-current assets-overdue receivables 742 $ 853 $ 12,517 $ 54) ( 317) ( 1,455) ( 29) ( 181) ( 2,838) ( 659 $ 355 $ 8,224 $ Accounts receivable Other receivable Other non-current assets-overdue receivables 742 $ 853 $ 12,517 $ 21 8) ( 1,404) ( 763 $ 845 $ 11,113 $ Six months ended June 30,2022 Six months ended June 30,2023 Year ended December 31,2022	Accounts receivable Other receivable Other non-current assets-overdue receivables 659 $ 355 $ 8,224 $ 133) ( 60) ( 211) ( 526 $ 295 $ 8,013 $ Accounts receivable Other receivable Other non-current assets-overdue receivables 742 $ 853 $ 12,517 $ 54) ( 317) ( 1,455) ( 29) ( 181) ( 2,838) ( 659 $ 355 $ 8,224 $ Accounts receivable Other receivable Other non-current assets-overdue receivables 742 $ 853 $ 12,517 $ 21 8) ( 1,404) ( 763 $ 845 $ 11,113 $ Six months ended June 30,2022 Six months ended June 30,2023 Year ended December 31,2022	Accounts receivable Other receivable Other non-current assets-overdue receivables 659 $ 355 $ 8,224 $ 133) ( 60) ( 211) ( 526 $ 295 $ 8,013 $ Accounts receivable Other receivable Other non-current assets-overdue receivables 742 $ 853 $ 12,517 $ 54) ( 317) ( 1,455) ( 29) ( 181) ( 2,838) ( 659 $ 355 $ 8,224 $ Accounts receivable Other receivable Other non-current assets-overdue receivables 742 $ 853 $ 12,517 $ 21 8) ( 1,404) ( 763 $ 845 $ 11,113 $ Six months ended June 30,2022 Six months ended June 30,2023 Year ended December 31,2022	Other non-current assets-overdue receivables June 30,2023
	28,315 $ 8,483 36,798 $ Marginal receivable	659 $ 133) ( 526 $ Accounts receivable Year				37,553 $ 8,079 45,632 $ Total 61,545 $ 20,944) ( 3,048) ( 37,553 $ Total
47,433 $ 19,118) ( - 28,315 $ Marginal receivable					12,517 $ 1,455) ( 2,838) ( 8,224 $ Other non-current assets-overdue receivables June 30,2022
47,433 $ 14,419) ( 33,014 $			742 $ 21 763 $	853 $ 8) ( 845 $	12,517 $ 1,404) ( 11,113 $	61,545 $ 15,810) ( 45,735 $

3) Liquidity risk

A. Definition and source of liquidity risk

Liquidity risk refers to possible financial losses arising from the inability to realize the asset or to obtain sufficient fund to fulfil the financial liabilities soon to be matured. Above situations may weaken the sources of cash from the Group’s trading and investment activities.

B. Liquidity risk management procedure and stimulation test

In order to prevent operational crisis as a result of liquidity risk, the Group has established responding crisis process with regular monitoring over liquidity gap of fund.

(A) Procedure

In addition to the operating capital for various business and long-term investment, the Group needs to maintain revolving funds at a certain level for daily operation. The use of remaining fund shall avoid high concentration and should be based on the principle of holding sound earning assets with high liquidity and treated in compliance with policies of the Group.

The responsive unit for fund procurement adjusts the liquidity gap to ensure proper liquidity according to the daily volume and movement in the market.

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(B) Stimulation test
- a. The Group reviews fund liquidity risk from a perspective of supply and demand of fund every month with simulation analysis of available fund for emergency including scenario analysis of cash, funding limit of financial institutions, margin loans and short sale, and value of disposal of position in order to compute maximum available fund and fund demand. Finally, safety stock of fund is reviewed to monitor liquidity risk.
- b. Above liquidity risk is generally reviewed monthly. However, if the available limit of increment banking credit risk in financing limit of a financial institution is lower than a certain amount (that is, the amount may be timely adjusted according to the fund liquidity in the market and the actual fund demand and supply in an entity), the safety stock will be reviewed weekly. After the early warning report for fund is submitted, the head of finance segment will call for a fund control meeting.
- c. Other than individual funding liquidity risk of an entity, stress test of minimization funding supply and maximization funding demand in the event of significant crisis is simulated, including:
  - (a)When there is a significant crisis in the market, the financing limit of the financial institutions and the value of disposal of position can be deemed the minimized ratio of fund supply which is then adjusted according to actual condition to compute the total fund supply under maximum stress.
  - (b)Except for the operating expense, the stock concept is adopted for the calculation of total fund demand under maximum stress.
  - (c)The Group should conduct a review to see whether the total minimized fund supply is more than maximized total fund demand. The Group should further review how long (by month) the difference may cover the operating expenses so that the safety stock of fund (by month) under stress test can be computed.
  - (d)The minimum safety stock of fund under stress test (by month) may be adjusted according to the crisis itself and only operating expense for at least 6 months under a normal stimulation can be deemed safe.
C. Maturity analysis for the financial assets and financial liabilities held for liquidity risk management
(A) The Group holds cash and sound earning assets with high liquidity in order to fulfil the payment obligation and potential emergency fund demand in the market. Financial assets held for liquidity risk management are mainly cash and cash equivalents, among which, all time deposits mature within a year. Financial assets at fair value through profit and loss are mainly listed stocks, convertible bonds and debt securities. As all of them have positions in active market, the liquidity risk is deemed low.

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(B) Maturity analysis for the financial liabilities is as follows:

		June 30,2023
Immediately	Less than 3 months	3-12 months	1-5years - $ - - - - - - 34,094 - - 86,599 - - 69,485 190,178 $	Total
- $ - 3,841,649 3,267,743 - 715,580 911,453 - 21,477,529 24,312,118 516,861 122,134 - - 55,165,067 $	10,064,854 $ 21,800,000 - - 10,005,853 - - 681,731 - 75,947 10,349 846,007 3,943,223 19,833 47,447,797 $	- $ 1,500,000 - 279 - - - 298,410 - - - 1,454,547 561,620 46,414 3,861,270 $		10,064,854 $ 23,300,000 3,841,649 3,268,022 10,005,853 715,580 911,453 1,014,235 21,477,529 24,388,065 613,809 2,422,688 4,504,843 135,732
				106,664,312 $

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December 31, 2022

Short-term loans Commercial papers payable Financial liabilities at fair value through profit or loss-current Non-derivative financial liabilities Derivative financial liabilities Bonds sold under repurchase agreements Deposits on short sales Deposits payable for securities financing Securities lending refundable deposits Futures traders’ equity Accounts payable (includes notes payable) Collections on behalf of third parties Other payables Other financial liabilities -current Lease liabilities Total		Immediately		Less than 3 months		3-12 months		1-5years - $ - - - - - - 33,278 - - 87,709 - - 86,061 207,048 $	Total
		- $ - 7,477,868 1,679,452 - 1,809,356 1,809,962 - 20,763,586 10,791,302 639,497 9,064 - - 44,980,087 $		275,000 $ 5,830,000 - - 7,016,989 - - 829,409 - 61,092 17,514 309,281 2,158,151 23,767 16,521,203 $		- $ - - - - - - 943,904 - - - 1,263,862 625,935 48,973 2,882,674 $			275,000 $ 5,830,000 7,477,868 1,679,452 7,016,989 1,809,356 1,809,962 1,806,591 20,763,586 10,852,394 744,720 1,582,207 2,784,086 158,801
									64,591,012 $

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		June 30,2022
Immediately	Less than 3 months 200,000 $ 2,500,000 - - 2,079,109 - - 1,952,350 - 43,918 9,647 3,003,715 4,665,136 25,069 14,478,944 $	3-12 months - $ - - - - - - 471,983 - - - 1,299,361 1,564,808 59,135 3,395,287 $	1-5years - $ - - - - - - 107,115 - - 87,783 - - 111,515 306,413 $	Total
2,025,000 $ 400,000 5,483,446 1,475,747 - 1,001,979 1,224,185 - 21,157,185 14,926,661 446,119 189,983 - - 48,330,305 $				2,225,000 $ 2,900,000 5,483,446 1,475,747 2,079,109 1,001,979 1,224,185 2,531,448 21,157,185 14,970,579 543,549 4,493,059 6,229,944 195,719
				66,510,949 $

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4) Market risk

A. Definition of market risk

Market risk refers to the risk of decrease in the Group’s revenue or value of investment portfolio as a result of the changes in exchange rate, commodity price, interest rate, and stock price or other market risk factors.

The Group continually exercises risk management tools such as sensitivity analysis, Value at Risk, stress test and so on to completely and effectively measure, monitor and manage market risk.

B. Value at Risk (VaR)

Value at Risk is used to measure the possible maximum potential losses in investment portfolio as a result of movement in market risk factor in a specified period and confidence level. The Group currently uses confidence level of 95% to calculate Value at Risk of one day.

A VaR model must reasonably, completely and accurately measure the maximum potential risks of financial instruments or investment portfolio before being adopted as a risk management model by the Group. The VaR model used in risk management is continually certified and retrospectively tested to demonstrate that the model can reasonably and effectively measure the maximum potential risks of financial instruments or investment portfolios.

Statistical table for one-day VaR of transactions	Statistical table for one-day VaR of transactions	Statistical table for one-dayVaR of transactions
Six months ended June 30, 2023 June 30, 2023 VaR Maximum VaR Average VaR Minimum	Amount 166,720 $ 203,880 95,416 33,479	Six months ended June 30,2022 Amount June 30, 2022 39,449 $ VaR Maximum 167,015 VaR Average 57,105 VaR Minimum 18,055

Statistical table for VaR of various risk indicators of transactions

Six months ended

Six months ended
June 30,2023 Foreign exchange June 30, 2023 6,569 $ VaR Maximum 47,965 VaR Average 10,312 VaR Minimum 1,597 Six months ended June 30,2022 Foreign exchange June 30, 2022 1,787 $ VaR Maximum 16,205 VaR Average 2,991 VaR Minimum 856	Interest 40,144 $ 81,522 51,148 5,259 Interest 3,869 $ 25,100 8,398 2,867		Share ownership
			173,982 $ 218,572 79,788 28,108 Share ownership 38,324 $ 167,807 57,553 19,069

C. Information on gap of foreign exchange risk

The following table summarizes financial instruments of foreign assets or liabilities by currency and the foreign exchange exposure presented by book value as of June 30, 2023, December 31, 2022 and June 30, 2022 ：

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Financial assets in foreign currencies Cash and cash equivalents Financial assets at fair value through profit or loss Financial assets at fair value through other comprehensive income - current Investments accounted for under equity method Others Financial liabilities in foreign currencies Short-term loans Financial liabilities at fair value through profit or loss Bonds sold under repurchase agreements Others				June 30,2023
	USD 900,886 $ 4,852,079 1,461,852 - 10,537,084 1,279,854 84,755 4,798,905 11,676,077	EUR 3,530 $ 1,436,943 - - 1,213,525 - 17 736,799 1,355,296	AUD 12,534 $ 312,727 1,326,223 - 155,679 - 268 1,607,621 22,758	RMB 90,607 $ 207,614 - 2,640,526 14,448 - 999 102,227 228,788	HKD 989,860 $ 85,820 - - 105,014 - - - 97,805	Others 115,569 $ 689,409 - - 105,889 - - 108,593 171,864	Total
							2,112,986 $ 7,584,592 2,788,075 2,640,526 12,131,639 1,279,854 86,039 7,354,145 13,552,588

Note: As of June 30, 2023, foreign exchange rates of the above currencies to TWD were 1 USD = 31.140 TWD; 1 EUR= 33.810 TWD; 1 AUD= 20.620 TWD; 1 RMB= 4.282 TWD; and 1 HKD= 3.974 TWD, respectively.

Financial assets in foreign currencies Cash and cash equivalents Financial assets at fair value through profit or loss Financial assets at fair value through other comprehensive income - current Investments accounted for under equity method Others Financial liabilities in foreign currencies Financial liabilities at fair value through profit or loss Bonds sold under repurchase agreements Others			December 31,2022	December 31,2022	December 31,2022
	USD 1,086,414 $ 3,696,267 1,118,655 - 7,579,012 347,447 3,243,659 9,408,659	EUR 4,306 $ 150,892 - - 18,804 57 89,976 18,296	AUD 1,854 $ 414,575 1,079,977 - 157,024 598 1,459,403 43,949	RMB 66,762 $ 105,713 - 2,764,018 3,985 1,347 81,148 206,124	HKD 1,508,479 $ 61,214 - - 169,872 99 - 150,830	Others 44,017 $ 280,670 - - 326,549 1,821 69,823 308,288	Total
							2,711,833 $ 4,709,330 2,198,632 2,764,018 8,255,247 351,369 4,944,009 10,136,145

Note: As of December 31, 2022, foreign exchange rates of the above currencies to TWD were 1 USD =30.710 TWD; 1 EUR= 32.720 TWD; 1 AUD= 20.830 TWD; 1 RMB= 4.408 TWD; and 1 HKD= 3.938 TWD, respectively.

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Financial assets in foreign currencies Cash and cash equivalents Financial assets at fair value through profit or loss Investments accounted for under equity method Others Financial liabilities in foreign currencies Financial liabilities at fair value through profit or loss Bonds sold under repurchase agreements Others				June 30,2022
	USD 1,206,348 $ 1,567,161 - 8,823,409 396,377 463,217 10,523,635	EUR 4,223 $ 19,371 - 16,488 - - 16,450	AUD 1,508 $ - - - - - -	RMB 256,584 $ 243,698 2,268,340 8,471 2,402 125,093 361,206	HKD 1,131,319 $ 82,132 - 550,849 25 - 385,871	Others 82,914 $ 282,638 - 340,225 - 65,646 339,009	Total
							2,682,896 $ 2,195,000 2,268,340 9,739,442 398,804 653,956 11,626,170

Note: As of June 30, 2022, foreign exchange rates of the above currencies to TWD were 1 USD = 29.72 TWD; 1 EUR= 31.05 TWD; 1 AUD= 20.45 TWD; 1 RMB= 4.439 TWD; and 1 HKD= 3.788 TWD, respectively.

(Blank below)

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     - D. The total exchange gain, including realized and unrealized, arising from significant foreign exchange variation on the monetary items held by the Group for the three and six months ended June 30, 2023 and 2022, amounted to $ 22,866, $30,715, $ 22,130 and $21,860, respectively.

5) Fair values and hierarchy information
A. Financial instruments and non-financial instruments not measured at fair value.
- Except for those listed in the table below, the carrying amounts of the Group’s financial instruments not measured at fair value (including cash and cash equivalents, bonds purchased under resale agreements, margin loans receivable, refinancing guaranty deposits, guaranteed proceeds receivable from refinancing, guaranteed price deposits for security borrowing, security borrowing deposits, customer margin deposit account, notes and accounts receivable, other receivables, short-term loans, commercial paper payable, bonds sold under repurchase agreements, guarantee deposit received from short sales, guaranteed price deposits received from securities borrowers, security borrowing deposits, equity of futures traders, accounts payable, collection for others, and other payables) approximate their fair values. The fair value information of financial instruments measured at fair value is provided in Note 12(5)3.

Non-financial assets June 30, 2023 Investment property December 31, 2022 Investment property June 30, 2022 Investment property	Total Quoted prices of the same assets in active markets (level 1) 698,655 $ - $ 743,741 - 698,655 -	Other significant observable inputs (level 2) Significant non-observable inputs (level 3) $ 698,655 - $ 743,741 - 698,655 -

The fair value of investment property held by the Group was assessed by external valuation experts using comparison approach and income approach, or the fair value can be assessed based on the market price of the area adjacent to the location where the Group’s investment property is located.

B. Valuation techniques
(A)For financial instruments held for trading purposes which are classified as non-derivative instruments, their fair values are based on their quoted prices in an active market. If there is no quoted market price for reference, a valuation technique will be adopted to measure the fair value. Estimates and assumptions of valuation technique adopted by the Group are in agreement with the information of estimates and assumptions adopted by market users for financial instrument pricing and the said information shall be accessible to the Group. For those classified as derivative instruments, their fair values are based on their market prices if

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their quoted prices are available from an active market. If quoted market prices in an active market are not available, SWAP and IRS are valued at the discounted cash flow method, and options are valued at the Black-Scholes model.

(B)When available-for-sale financial assets have quoted market prices available in an active market, the fair value is determined using the market price.
C. Fair value hierarchy of the financial instruments
(A)Definitions for the hierarchy classifications of financial instruments measured at fair value a. Level 1

Level 1, are quoted prices (unadjusted) in active markets for identical assets or liabilities that the Group can access at the measurement date. An active market has to satisfy all the following conditions: a market in which transactions for the asset or liability take place with sufficient frequency and volume to provide pricing information on an ongoing basis. The Group’s investments in listed stocks, beneficiary certificates, on-the-run Taiwan central government bonds and derivative instruments with quoted market prices, are deemed as level 1.

b. Level 2

Inputs other than quoted market prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. Investments of the Group such as emerging stock without active markets, off-the-run issue of government bonds, corporate bonds, bank debentures, convertible corporate bonds, currency swaps, interest rate swaps, options, asset swaps, and most derivatives are all classified within level 2. For the six months ended June 30, 2023 and 2022, there was no significant transfer of financial instruments between Level 1 and Level 2.

c. Level 3

Unobservable inputs for the assets or liability. The fair value of the Group’s investment in equity investment without active market is included in Level 3. For the six months ended June 30, 2023 and 2022, some of the unlisted stocks became the emerging stocks, therefore these stocks were transferred from Level 3 to Level 2.

(Blank below)

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(B)Hierarchy of fair value estimation of financial instruments

Recurring fair value Non-derivative financial instruments Assets Financial assets at fair value through profit or loss-current Stock investments Bond investments Others Financial assets at fair value through other comprehensive income-current Stock investments Bond investments Financial assets at fair value through profit or loss - non-current Stock investments Bond investments Others Financial assets at fair value through other comprehensive income- non-current Stock investments Liabilities Financial liabilities at fair value through profit or loss -current Derivative financial instruments Assets Financial assets at fair value through profit or loss-current Liabilities Financial liabilities at fair value through profit or loss - current		June30,2023	June30,2023
	Total 23,590,924 $ 15,759,697 2,943,897 384,192 2,788,075 6,317 49,845 58,000 1,213,540 3,841,649 6,013,657 3,268,022	Level 1 23,356,332 $ 5,401,082 2,943,897 384,192 2,788,075 - - - - 3,841,649 5,992,989 1,770,117	Level 2 85,214 $ 10,358,615 - - - - 49,845 - - - 20,668 1,497,905	Level3
				149,378 $ - - - - 6,317 - 58,000 1,213,540 - - -

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Recurring fair value Non-derivative financial instruments Assets Financial assets at fair value through profit or loss-current Stock investments Bond investments Others Financial assets at fair value through other comprehensive income- current Stock investments Bond investments Financial assets at fair value through profit or loss - non-current Stock investments Bond investments Others Financial assets at fair value through other comprehensive income- non-current Stock investments Liabilities Financial liabilities at fair value through profit or loss -current Derivative financial instruments Assets Financial assets at fair value through profit or loss-current Liabilities Financial liabilities at fair value through profit or loss - current		December	31,2022
	Total 5,798,959 $ 10,677,908 2,583,147 299,150 2,198,632 16,604 49,779 32,900 1,179,907 7,477,868 5,335,854 1,679,452	Level 1 5,568,337 $ 2,916,006 2,583,147 299,150 2,198,632 - - - - 7,477,868 5,330,817 1,088,464	Level 2 90,128 $ 7,761,902 - - - - 49,779 - - - 5,037 590,988	Level3
				140,494 $ - - - - 16,604 - 32,900 1,179,907 - - -

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Recurring fair value Non-derivative financial instruments Assets Financial assets at fair value through profit or loss-current Stock investments Bond investments Others Financial assets at fair value through other comprehensive income- current Stock investments Financial assets at fair value through profit or loss - non-current Stock investments Bond investments Others Financial assets at fair value through other comprehensive income- non-current Stock investments Liabilities Financial liabilities at fair value through profit or loss -current Derivative financial instruments Assets Financial assets at fair value through profit or loss-current Liabilities Financial liabilities at fair value through profit or loss - current		June30,2022	June30,2022
	Total 8,219,615 $ 4,211,240 2,096,168 317,492 13,464 49,995 33,250 1,011,415 5,483,446 5,473,417 1,475,747	Level 1 8,116,377 $ 809,418 2,096,168 317,492 - - - - 5,483,446 5,469,876 1,258,089	Level 2 43,126 $ 3,401,822 - - - 49,995 - - - 3,541 217,658	Level3
				60,112 $ - - - 13,464 - 33,250 1,011,415 - - -

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(C) The following table is the movement of financial assets at Level 3:

		Six months ended June 30,2023	Six months ended June 30,2023	Six months ended June 30,2023	Six months ended June 30,2023
Financial assets at fair value through profit or loss- current Unlisted stocks Financial assets at fair value through profit or loss - non-current Venture capital shares Others Financial assets at fair value through other comprehensive income - non-current Unlisted stocks	January1	Valuation amount		Increased		Decreased		June 30
		Recorded in profit or loss	Recorded in other comprehensive income(loss)	Acquired/ Issued	Transfers into level 3	Sold/ Diposed or Settled	Transfers out from level 3
	140,494 $ 16,604 32,900 1,179,907	4,085 $ - $ 4,799 $ 8,113) ( - - 10,100 - 15,000 - 33,633 - Year ended December 31,2022			- $ - - -	- $ (2,174) - -	- $ - - -	149,378 $ 6,317 58,000 1,213,540
Financial assets at fair value through profit or loss- current Unlisted stocks Financial assets at fair value through profit or loss - non-current Venture capital shares Others Financial assets at fair value through other comprehensive income - non-current Unlisted stocks	January1	Valuation amount		Increased		Decreased		December 31
		Recorded in profit or loss	Recorded in other comprehensive income(loss)	Acquired/ Issued	Transfers into level 3	Sold/ Diposed or Settled	Transfers out from level 3
	65,712 $ 12,650 13,950 1,137,756	433) ($ - $ 106,765 $ 3,954 - - 1,050) ( - 20,000 - 42,151 - Six months ended June 30,2022			- $ - - -	3,750) ($ - - -	27,800) ($ - - -	140,494 $ 16,604 32,900 1,179,907
Financial assets at fair value through profit or loss- current Unlisted stocks Financial assets at fair value through profit or loss - non-current Venture capital shares Others Financial assets at fair value through other comprehensive income - non-current Unlisted stocks	January1	Valuation amount		Increased		Decreased		June 30
		Recorded in profit or loss	Recorded in other comprehensive income(loss)	Acquired/ Issued	Transfers into level 3	Sold/ Diposed or Settled	Transfers out from level 3
	65,712 $ 12,650 13,950 1,137,756	13,350) ($ 814 700) ( -	- $ - - 126,341) (	11,500 $ - 20,000 -	- $ - - -	3,750) ($ - - -	- $ - - -	60,112 $ 13,464 33,250 1,011,415

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(D) The following is the qualitative information of significant unobservable inputs and sensitivity analysis of changes in significant unobservable inputs to valuation model used in Level 3 fair value measurement:

June 30,2023	Fair value	Valuation technique	Significant unobservable input	Range (weighted average)	Relationship of inputs to fair value
Financial assets at fair value through profit or loss - current Financial assets at fair value through profit or loss - non-current Venture capital shares Others Financial assets at fair value through other comprehensive income - non-current December 31,2022 Unlisted stocks Unlisted stocks	6,317 58,000 Fair value 1,213,540 149,378 $	Net asset value Net asset value Valuation technique Market approach Market approach	Price to book ratio multiple Price to earnings ratio multiple Discount for lack of marketability Latest transaction price Not applicable Not applicable Market price net profit after tax multiplier Price to book ratio multiple Discount for lack of marketability Significant unobservable input	1.90~5.26 46.43 25% Not applicable Not applicable Not applicable 21.26~23.36 2.58~2.97 33% Range (weighted average)	The higher the multiple, the higher the fair value Price to book ratio will be judged on a case-by-case basis by different country, region, industries, markets, etc The higher the discount for lack of marketability, the lower the fair value Not applicable Not applicable Not applicable The higher the discount for lack of marketability, the lower the fair value Relationship of inputs to fair value The higher the multiple, the higher the fair value
Financial assets at fair value through profit or loss - current Financial assets at fair value through profit or loss - non-current Venture capital shares Others Unlisted stocks	16,604 32,900 140,494 $	Net asset value Net asset value Market approach	Price to earnings ratio multiple Price to book ratio multiple Discount for lack of marketability Latest transaction price Not applicable Not applicable	8.27 1.43~5.49 25% Not applicable Not applicable Not applicable	The higher the discount for lack of marketability, the lower the fair value Not applicable Not applicable Not applicable The higher the multiple, the higher the fair value

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December 31,2022	Fair value	Valuation technique Significant unobservable input Market price net profit after tax multiplier Price to book ratio multiple Discount for lack of marketability Valuation technique Significant unobservable input Price to book ratio multiple Discount for lack of marketability Latest transaction price Net asset value Not applicable Net asset value Not applicable Enterpeise Value EBIT Multiplier Market price net profit after tax multiplier Price to book ratio multiple Discount for lack of marketability Market approach Market approach Market approach	Range (weighted average)	Relationship of inputs to fair value
Financial assets at fair value through other comprehensive income - non-current June 30,2022 Unlisted stocks	Fair value 1,179,907 $		23.03~24.62 2.93~4.92 20%~30% Range (weighted average)	The higher the discount for lack of marketability, the lower the fair value Relationship of inputs to fair value The higher the multiple, the higher the fair value
Financial assets at fair value through profit or loss - current Financial assets at fair value through profit or loss - non-current Venture capital shares Others Financial assets at fair value through other comprehensive income - non-current Unlisted stocks Unlisted stocks	13,464 33,250 1,011,415 60,112 $		5.48~7.10 25% Not applicable Not applicable Not applicable 11.85 27.23 2.17 9.20%~35%	The higher the multiple, the higher the fair value The higher the discount for lack of marketability, the lower the fair value Not applicable Not applicable Not applicable The higher the discount for lack of marketability, the lower the fair value The higher the multiple, the higher the fair value

(E) Valuation process for fair value at Level 3

The parent company’s risk management department is responsible for the verification of fair value categorized in Level 3. The department assesses the independence, reliability, consistency and representativeness of the source information, regularly verifies the valuation models and calibrates the parameters to ensure the valuation process and results are in compliance with IFRSs.

(F) For the fair value measurement of Level 3, the sensitivity analysis of the fair value to the reasonable alternative hypothesis shows that the fair value measurement of the financial assets by the Group is reasonable. However, use of different

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valuation models or assumptions may result in different measurement. The following is the impact to profit or loss or to other comprehensive income from financial assets and liabilities categorized within Level 3 if the inputs used in valuation models have changed up or down by 1%:

June 30,2023	Recognised inprofit or loss	Recognised inprofit or loss	Recognised in other comprehensive income	Recognised in other comprehensive income
	Favourable change	Unfavourable change	Favourable change	Unfavourable change
Financial assets at fair value through profit or loss - current Unlisted stocks Financial assets at fair value through profit or loss -non-current Venture capital shares Others Financial assets at fair value through other comprehensive income - non-current Unlisted stocks December 31,2022	1,494 $ 1,494) ($ Not applicable Not applicable Not applicable Not applicable - - Recognised inprofit or loss		- $ - $ - - - - 12,135 (12,135) Recognised in other comprehensive income
	Favourable change	Unfavourable change	Favourable change	Unfavourable change
Financial assets at fair value through profit or loss - current Unlisted stocks Financial assets at fair value through profit or loss -non-current Venture capital shares Others Financial assets at fair value through other comprehensive income - non-current Unlisted stocks June 30,2022	1,405 $ 1,405) ($ Not applicable Not applicable Not applicable Not applicable - - Recognised inprofit or loss		- $ - $ - - - - 11,799 11,799) ( Recognised in other comprehensive income
	Favourable change	Unfavourable change	Favourable change	Unfavourable change
Financial assets at fair value through profit or loss - current Unlisted stocks Financial assets at fair value through profit or loss -non-current Venture capital shares Others Financial assets at fair value through other comprehensive income - non-current Unlisted stocks	601 $ Not applicable Not applicable -	601) ($ Not applicable Not applicable -	- $ - - 10,114	- $ - - 10,114) (

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6) Capital management

A. Objective of capital management
(A) The represented capital adequacy ratio basically shall not be lower than 200% in compliance with the warning standard addressed in the “Rules Governing Securities Firms”.
(B) The Group includes all risks involved in the investment position as a part of risk management, such as market risk, credit risk, liquidity risk, operating risk, legal risk, and model risk and so on. Each risk management responsive unit should identify, evaluate, monitor and control various risks in order to enable the Group to defend impact from financial market, reflect the current operating strategies and make the investment portfolio applied to business planning and development.
B. Capital management policy and procedure
In order to secure the long-term and stable development of various businesses and effectively assume risks, the Group manages capital based on the business development, related regulations and financial market environment. Major capital evaluation processes include:
(A) Each segment should provide accurate and valid source of information to maintain calculation accuracy of capital adequacy ratio.
(B) After the reporting at the 10th of each month, capital adequacy ratio should be computed by the end of every month. If the result is close to the legal standard, every unit will be called to attend a meeting for discussion and strategic planning to ensure that the basic objective of capital adequacy ratio is not less than 200%.
(C) Both the risk limits and economic capital of the Group should be agreed by the Board of Directors. The Group should quarterly report details of risk control with disclosure of investment condition in order to assess whether the risk position exceeds the limit and whether the investment direction is in line with the market trend. Within the authorized risk limits, the Group is actively engaged in development of various businesses and continually increases profit, creates company value, and complies with the capital management objective.

The Group calculates and reports the capital adequacy ratio according to “Rules Governing Securities Firms”. As of June 30, 2023, December 31, 2022 and June 30, 2022, the capital adequacy ratios were 311%, 390% and 394%, respectively, as required by the regulations.

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7) Assets and liabilities of trust accounts

Pursuant to Article 17 of Enforcement Rules of the Trust Enterprise Act, balance sheet, income statement, and property list of trust accounts shall be disclosed in the consolidated financial statements on a semiannual basis.

A. Balance sheet of trust accounts

BALANCE SHEETS

JUNE 30,	2023 AND 2022	2023 AND 2022
Trust assets	June 30,2023			June 30,2022
Bank savings	$	604,885	$	483,210
Structured notes		1,014,164		1,824,435
Stock		1,358,528		1,035,223
Bond		882,526		477,527
Repurchase bond		43,616		17,074
Fund		6,226,308		4,644,202
Accounts receivable		81,636		28,448
Total of trust assets	$	10,211,663	$	8,510,119
Trust liabilities and equity	June 30,2023			June 30,2022
Accounts payable	$	15,808	$	8,449
Trust capital		9,525,110		8,578,155
Net income (loss)		600,720	(	139,884)
Retained earnings		70,025		63,399
Total of trust liabilities and equity	$	10,211,663	$	8,510,119

(Blank below)

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B. Income statement of trust accounts

STATEMENTS OF INCOME

FOR THE SIX MONTHS ENDED JUNE 30, 2023 AND 2022

Item Six months ended June 30,2023 Trust income Interest income 34,306 $ Cash dividends received 20,816 Investment realised gains - bond 182 Investment realised gains - stock 6,169 Investment realised gains - fund 111,683 Investment realised gains - structured notes 7,837 Investment unrealised gains - bond 5,247 Investment unrealised gains - stock 491,484 Investment unrealised gains - fund 499,856 Investment unrealised gains - structured notes 1,952 Other income 5 Subtotal 1,179,537 Trust expenses Administrative expenses 735) ( Service fee 204) ( Investment realised losses - bond 668) ( Investment realised losses - stock 2,734) ( Investment realised losses - fund 44,392) ( Investment realised losses - structured notes - Investment unrealised losses - bond 108,395) ( Investment unrealised losses - stock 50,561) ( Investment unrealised losses - fund 366,022) ( Investment unrealised losses - structured notes 4,940) ( Income before income tax 600,886 Income tax benefit (expense) 166) ( Net income 600,720 $		Six months ended June 30,2022
	34,220 $ 13,050 213 585 115,866 3,835 1,406 365,324 212,834 1,215 4 748,552 655) ( 229) ( 4,400) ( 142) ( 50,611) ( 297) ( 109,891) ( 32,666) ( 573,031) ( 116,492) ( 139,862) ( 22) ( 139,884) ($

C. Property list of trust accounts

PROPERTY LIST OF TRUST ACCOUNTS

JUNE 30, 2023 AND 2022

Item Bank savings Structured notes Fund Bond Bonds under repurchase agreements Stock Others Total	June 30,2023 604,885 $ 1,014,164 6,226,308 882,526 43,616 1,358,528 81,636 10,211,663 $	June 30,2022
		483,210 $ 1,824,435 4,644,202 477,527 17,074 1,035,223 28,448
		8,510,119 $

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Status of the company in the limitations on financial ratios imposed by futures trading act, and the related implementation The table below is prepared according to“Regulations Governing Futures Commission Merchants”.	Status of the company in the limitations on financial ratios imposed by futures trading act, and the related implementation The table below is prepared according to“Regulations Governing Futures Commission Merchants”.	Status of the company in the limitations on financial ratios imposed by futures trading act, and the related implementation The table below is prepared according to“Regulations Governing Futures Commission Merchants”.	Status of the company in the limitations on financial ratios imposed by futures trading act, and the related implementation The table below is prepared according to“Regulations Governing Futures Commission Merchants”.	Status of the company in the limitations on financial ratios imposed by futures trading act, and the related implementation The table below is prepared according to“Regulations Governing Futures Commission Merchants”.	Status of the company in the limitations on financial ratios imposed by futures trading act, and the related implementation The table below is prepared according to“Regulations Governing Futures Commission Merchants”.	Status of the company in the limitations on financial ratios imposed by futures trading act, and the related implementation The table below is prepared according to“Regulations Governing Futures Commission Merchants”.	Status of the company in the limitations on financial ratios imposed by futures trading act, and the related implementation The table below is prepared according to“Regulations Governing Futures Commission Merchants”.
22 22 17 17 Article	Stockholders’ equity (Total liability－futures trader’s equity) Current assets Current liabilities Stockholders’ equity Minimumpaid-in capital Adjusted net capital Total amount of customer margins required for the openpositions of futures traders Calculation formula	June 30,2023		June 30,2022		`≧`60% `≧`40% `≧`20% `≧`15% `≧`1 `≧`1 Standard	Met the requirement Met the requirement Met the requirement Met the requirement Enforcement
		Calculation 2,290,855 34,197 6,540,442 34,197 2,290,855 400,000 1,434,090 1,566,316	Ratio 572.71% 91.56% 191.26 66.99	Calculation 2,242,135 31,597 5,757,005 31,597 2,242,135 400,000 1,521,213 1,282,040	Ratio 560.53% 118.66% 182.20 70.96
Status of the subsidiary in the limitations on financial ratios imposed by the futures trading act and the related implementation The table below is prepared according to “Regulations Governing Futures Commission Merchants”.

Article	Calculation formula	June 30,2023	June 30,2023	June 30,2022	June 30,2022	Standard	Enforcement
		Calculation	Ratio	Calculation	Ratio
17	Stockholders’ equity (Total liability－futures trader’s equity)	2,672,635 369,748	7.23	2,376,894 315,330	7.54	`≧`1	Met the requirement
17	Current assets Current liabilities	28,669,150 27,383,837	1.05	27,554,768 26,377,238	1.04	`≧`1	Met the requirement
22	Stockholders’ equity Minimumpaid-in capital	2,672,635 645,000	414.36%	2,376,894 645,000	368.51%	`≧`60% `≧`40%	Met the requirement
22	Adjusted net capital Total amount of customer margins required for the openpositions of futures traders	2,304,597 4,672,565	49.32%	2,015,031 4,736,244	42.54%	≧20% `≧`15%	Met the requirement

~94~

10) Prospective risk for futures trading

The main risk for futures merchants engaging in futures trading is credit risk, which could happen if the margin call cannot be made when it should have been made. While being consigned to conduct the futures trading, the Group pays attention to the individual margin account on a daily basis and request additional margin call or reduction in trading volume when necessary according to the condition of individual customer transactions in order to control the credit risk accordingly. The main risk faced by the Group while engaging in self-operating businesses is market price risk- that is risk of changes in market prices of futures or options contracts as a result of fluctuation in underlying investment index. Losses may occur if the market index price and underlying investment move adversely. However, the Group has set up stop-loss point to control such risk for reasons of risk management.

(Blank below)

~95~

13. OTHER DISCLOSURE ITEMS

1) Information about significant transactions

A. Lending to others: Excluding security margin trading and conditional bond trading business, there is no lending of funds to either the shareholders or other parties.
B. Endorsements and guarantees for others ： None.
C. Acquisitions of real estate exceeding $300 million or 20 percent of contributed capital ： None.
D. Disposals of real estate exceeding $300 million or 20 percent of contributed capital ： None.
E. Purchases or sales transactions discount on brokers’ charges with related parties in excess of $5 million ： None.
F. Receivables from related parties exceeding $100 million or 20 percent of contributed capital ： None.
G. Significant transactions between parent company and subsidiaries

==> picture [719 x 226] intentionally omitted <==

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

Details of transactions (Six months ended June 30, 2023)
Percentage (%) of
total consolidated
No. Relationship net revenues or
(Note1) Company Counterparty (Note 2) Account Amount Conditions assets (Note 3)
0 President Securities Corp. President Futures Corp. 1 Futures Margin - Own Funds 5,573,993 Note 4 4.04%
0 President Securities Corp. President Futures Corp. 1 Deposit-out 34,000 Note 4 0.02%
0 President Securities Corp. President Futures Corp. 1 Accounts receivables 2,734 Note 4 0.00%
0 President Securities Corp. President Futures Corp. 1 Deposit-in 16,000 Note 4 0.01%
0 President Securities Corp. President Futures Corp. 1 Other receivables 145,802 Note 4 0.11%
0 President Securities Corp. President Futures Corp. 1 Other payables 1,412 Note 4 0.00%
0 President Securities Corp. President Futures Corp. 1 Equity for each customer in the account 19,564 Note 4 0.01%
0 President Securities Corp. President Futures Corp. 1 Future commission revenue 15,087 Note 4 0.32%
0 President Securities Corp. President Futures Corp. 1 Clearing charges 8,866 Note 4 0.19%
0 1 Other non-operating income - remuneration of 3,940 Note 4
President Securities Corp. President Futures Corp. 0.08%
directors and supervisors
0 President Securities Corp. President Capital Management Corp. 1 Expense from investment advisory 25,200 Note 4 0.53%
0 President Securities Corp. President Capital Management Corp. 1 Other receivables 1,917 Note 4 0.04%
----- End of picture text -----

Note 1 ： The numbers in the No. column are represented as follows:

The number zero is for parent company.
According to the sequential order, subsidiaries are numbered from 1.

~96~

Note 2 ： There are three kinds of transactions between related parties and numbered from 1 to 3 were shown as follows (If transactions between parent company and subsidiaries or between subsidiaries refer to the same transaction, it is not required to disclose twice. For example, if the parent company has already disclosed its transaction with a subsidiary, then the subsidiary is not required to disclose the transaction; for transactions between two subsidiaries, if one of the subsidiaries has disclosed the transaction, then the other is not required to disclose the transaction.)
Parent company to subsidiaries.
Subsidiaries to parent company.
Subsidiaries to subsidiaries.
Note 3 ： The calculation basis of the trading amount accounting for the total consolidated net revenues or assets is that the account ending balance is divided by the total consolidated assets if it is attributed to the balance sheet accounts, and the accumulated trading amount of the interim period is divided by the total consolidated net revenues if it is attributed to the profit or loss accounts.
Note 4 ： All the prices provided between related parties were traded by contracts.

Note 5 ： Based on materiality, only the amounts of the transactions that were above $1 million would be shown in the table.

2) Related information of investee companies
A. Related information of investee companies

Name of the investor	Name of the investee company	Location	Date of registration	Reference number and the date of approval letter issued byFSC	Major operating activities	Balance on June 30,2023 Original i	Balance on December 31, 2022 nvestment	Shares Percentage EndingBalan	Shares Percentage EndingBalan	ce	Revenue of investee company	Net income (loss) of investee company	Investment income (loss) recognised by the Company	Cash dividends	Notes
									Percentage	Book vlaue
President Securities Corp.	President Futures Corp. President Capital Management Corp. President Securities (HK) Ltd. President Wealth Management (HK) Ltd.	Taipei Taipei Hong Kong Hong Kong	1994.03.01 1997.04.15 1994.07.26 2002.03.31	1994.03.01 Jing- Tou-Shen (83) Gong-Shang Letter No.1114 (Note 1) 1997.02.25 (86) Tai-Cai-Zheng (4) Letter No.17769 1993.11.4 (82) Tai- Cai-Zheng (2) Letter No.40913 2001.12.11 (90) Tai-Cai-Zheng (2) Letter No.166728	Futures brokerage and dealer Securities investment consulting Securities dealer, underwriting, brokerage and consulting Wealth management	644,650 $ 326,000 848,735 92,091	644,650 $ 326,000 848,735 92,091	63,817,303 30,000,000 192,600,000 23,400,000	96.69% 100% 100% 100%	2,584,262 $ 306,349 816,389 -	359,794 $ 36,550 42) ( -	146,661 $ 1,453 15,151) ( 180	141,807 $ 1,455 13,787) ( 180	142,313 $ - 503,620 -	Subsidiary of the Company Subsidiary of the Company Subsidiary of the Company Subsidiary of the Company

~97~

Original investment Ending Balance Reference number Net income Investment and the date of Major Balance on Revenue of (loss) of income (loss) Name of the Name of the Date of approval letter operating Balance on December 31, investee investee recognised by Cash investor investee company Location registration issued by FSC activities June 30, 2023 2022 Shares Percentage Book vlaue company company the Company dividends Notes President Securities Hong 1999.08.06 1997.10.27 (86) Nominee Service $ 3,403 $ 3,403 1,000,000 100% $ - $ - $ - $ - $ Subsidiary of(Nominee) Ltd. Kong Tai-Cai-Zheng (2) the Company Letter No.04840 Uni-President Taipei 1992.09.03 2000.07.19 (89) Investment Trust 667,622 667,622 14,904,630 42.46% 679,010 670,206 224,927 95,511 167,751 Associates Asset Management Tai-Cai-Zheng (2) Corp. Letter No.56407 President Insurance Taipei 2008.04.29 (Note2) Insurance Agent 10,000 10,000 1,000,000 100% 56,744 72,607 33,056 33,056 33,496 Subsidiary of Agency Corp. the Company PSC Venture Taipei 2013.10.29 2013.08.08 JingConsultation of 300,000 300,000 30,000,000 100% 281,327 17,142 13,828 13,826 Subsidiary ofCapital Investment Guan-Zheng-Chuan investment the Company Limited Company Letter management and No.1020028529 venture capital; other unprohibited or unrestricted businesses beyond the permit President Uni-President Taipei 1992.09.03 2000.07.19 (89) Investment Trust 478 478 12,000 0.03% 551 670,206 224,927 77 136 Associates Insurance Asset Management Tai-Cai-Zheng (2) Agency Corp. Corp. Letter No.56407

Note 1 ： As FSC was established in July, 2004, President Futures Corp. was apporved by the Investment Commission, Ministry of Economic Affairs.

Note 2 ： When securities corporations invest in domestic business within FSC's limitation, there is no need to obtain the approval from FSC in advance, according to Tai-Cai-Zheng (2) Letter No.0930000005.

Therefore, there was no reference numbers for President Insurance Agency Corp.

Note 3 ： Subsidiary President Securities (HK) Ltd., President Wealth Management (HK) Ltd. and President Securities (Nominee) Ltd. were approved by the board of directors in March 2022 to deal with the dissolution and liquidation matters, and the liquidation process are currently in progress, of which President Wealth Management (HK) Ltd. and President Securities (Nominee) Ltd. had remitted all funds on account on April 27, 2023 for the subsequent liquidation process.

B. Lending to others: Excluding security margin trading and conditional bond trading business, there is no lending of funds to either the shareholders or other parties.
C. Endorsements and guarantees for others ： None.
D. Acquisitions of real estate exceeding $300 million or 20 percent of contributed capital ： None.
E. Disposals of real estate exceeding $300 million or 20 percent of contributed capital ： None.
F. Purchases or sales transactions discount on brokers’ charges with related parties in excess of $5 million ： None.

~98~

G. Receivables from related parties exceeding $100 million or 20 percent of contributed capital ： None.
H. Accordance with Jing-Guan-Zheng-Chuang Letter No. 10703209011, the Company is required to disclose details of businesses run by foreign enterprises that were incorporated in the countries identified as non-signatories to the IOSCO MMoU or have not obtained securities or futures license of signatories to the IOSCO MMoU:
a) Revenue from engagement in consultation on assets management business, service contents and litigation: None

(Blank below)

~99~

b) Balance sheets

PRESIDENT WEALTH MANAGEMENT (HK) LTD. BALANCE SHEETS

JUNE 30, 2023 AND 2022

Expressed in HK dollars

Assets		June 30,2023	June 30,2023	June 30,2023		June 30,2022	June 30,2022	June 30,2022
		Amount		%		Amount		%
Current assets Cash and cash equivalents Other receivables Prepayments Stockholders’ current account Total current assets Total assets Liabilities and shareholders’equity	- $ - - 15,428,111 15,428,111 15,428,111 $ - $ - 23,400,000 7,971,889) ( 15,428,111 15,428,111 $		- - - 100 100 100 - - 152 52) ( 100 100		15,222,355 $ 10,150 6,996 - 15,239,501 15,239,501 $ 10,200 $ 10,200 23,400,000 8,170,699) ( 15,229,301 15,239,501 $		100 - - - 100 100 - - 154 54) ( 100 100
Current liabilities Other payables Total liabilities Shareholders’ equity Share capital Retained earnings Accumulated deficit Total shareholders’ equity Total liabilities and shareholders’ equity

~100~

PRESIDENT SECURITIES (NOMINEE) LTD. BALANCE SHEETS

JUNE 30, 2023 AND 2022

Expressed in HK dollars

Assets		June 30,2023	June 30,2023	June 30,2022
	Amount - $ 393,949 393,949 393,949 $ - $ - 1,000,000 606,051) ( 393,949 393,949 $		%	%
Current assets Cash and cash equivalents Stockholders’ current account Total current assets Total assets Liabilities and shareholders’equity		- 100 100 100 - - 254 154) ( 100 100
Current liabilities Other payables Total liabilities Shareholders’ equity Share capital Retained earnings Accumulated deficit Total shareholders’ equity Total liabilities and shareholders’ equity

~101~

c) Statements of comprehensive income

PRESIDENT WEALTH MANAGEMENT (HK) LTD. STATEMENTS OF COMPREHENSIVE INCOME FOR THE SIX MONTHS ENDED JUNE 30, 2023 AND 2022

Expressed in HK dollars

Accounts Amount Expenditures and expenses Other operating expenses 4,939) ($ Total expenditures and expenses 4,939) ( Non-operating gains and losses Other gains and losses 51,220 Profit before tax 46,281 Income tax expense - Net income (loss) 46,281 $ Six months ended June	% 30,2023	Six months ended June	30,2022	30,2022
		Amount		%
	11) ( 11) ( 111 100 - 100	24,504) ($ 24,504) ( 17,627 6,877 - 6,877) ($	356 356 256) ( 100 - 100

~102~

PRESIDENT SECURITIES (NOMINEE) LTD. STATEMENTS OF COMPREHENSIVE INCOME FOR THE SIX MONTHS ENDED JUNE 30, 2023 AND 2022

Expressed in HK dollars

Accounts	Six months ended June	30,2023	30,2023	Six months ended June	30,2022	30,2022
	Amount		%	Amount		%
Expenditures and expenses Other operating expenses Total expenditures and expenses Non-operating gains and losses Other gains and losses Loss before tax Income tax expense Net loss	809) ($ 809) ( 732 77) ( - 77) ($	1,051 1,051 951) ( 100 - 100		11,820) ($ 11,820) ( 43 11,777) ( - 11,777) ($		100 100 - 100 - 100

~103~

3) Information of overseas branches and representative office: None.

4) Disclosure of investment in Mainland China

a) Information of investment in Mainland China

==> picture [716 x 298] intentionally omitted <==

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

Accumulated Amount remitted from Taiwan to
Accumulated Investment income Accumulated
amount of Mainland China/ Amount remitted Ownership
Investee in Investment remittance from back to Taiwan for the six months amount of Net income of held by the (loss) recognized by Book value of amount of
Main business Paid-in capital remittance from the Company for investments in investment income
Mainland method Taiwan to ended June 30, 2023 investee as of Company
activities (Note 4) Taiwan to the six months Mainland China as remitted back to
China (Note 1) Mainland China June 30, 2023 (direct or
Remitted to Mainland China as ended June 30, of June 30, 2023 Taiwan as of June
as of January 1, Remitted back indirect)
Mainland of June 30, 2023 2023 (Note 2) 30, 2023
2023 to Taiwan
China
Jin Yuan Securities $ 6,423,000 Directly $ 3,138,169 $ - $ - $ 3,138,169 ($ 103,901) 49% ($ 45,749) $ 2,640,526 $ -
President brokering, securities invest in a
The financial
Securities dealing, securities company in
statements that are
Co., Ltd. underwriting and Mainland
reviewed by
sponsoring service China
international
accounting firm
which has
cooperative
relationship with
accounting firm in
R.O.C.
b) Limitation on investment in Mainland China (expressed in thousands of dollars)
Accumulated amount of remittance Investment amount approved by the Ceiling on investments in Mainland
Company name from Taiwan to Mainland China as of Investment Commission of the Ministry of China imposed by the Investment
June 30, 2023 Economic Affairs (MOEA) Commission of MOEA
Jin Yuan President Securities
$ 3,138,169 $ 3,138,169 $ 18,518,462
Co., Ltd.
----- End of picture text -----

Note 1: Investment methods are classified into the following three categories; fill in the number of category each case belongs to:

(1) Directly invest in a company in Mainland China.
(2) Through investing in an existing company in the third area, which then invested in the investee in Mainland. (Please indicate investment company in the third area.)
(3) Others.

~104~

Note 2: In the ‘Investment income (loss) recognized by the Company for the six months ended June 30, 2023’ column:

(1) It should be indicated if the investee was still in the incorporation arrangements and had not yet any profit during this period.
(2) Indicate the basis for investment income (loss) recognition in the number of one of the following three categories:.
a. The financial statements that are audited and attested by international accounting firm which has cooperative relationship with accounting firm in R.O.C.
b. The financial statements that are audited and attested by R.O.C. parent company's CPA.
c. Others.

Note 3: The numbers in this table are expressed in New Taiwan Dollars.

Note 4: The paid-in capital of Jin Yuan President Securities Co.,Ltd is CNY 1.5 billion.

5) Major shareholder information

==> picture [732 x 35] intentionally omitted <==

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

Major shareholder Number of shares held (thousands) Shareholding ratio
Uni-President Enterprises Corp. 417,517 28.67%
----- End of picture text -----

Note 1:The information of major shareholders in this table is based on the last business day of the end of each quarter by Taiwan Depository and Clearing Corp., which determines shareholders holding more than 5% of ordinary shares and special shares of securities firms that have completed unregistered delivery (including treasury shares). As for the share capital recorded in the financial report of the securities firm and the actual number of shares delivered by the securities firm without physical registration, there may be differences due to different calculation bases.
Note 2:In the case of the above information, if a shareholder delivers shares to the trust, it is disclosed in individual accounts by the trustee who opened the trust account by the trustee. As for the shareholders’ declaration of insider’s shareholding in accordance with the Securities and Exchange Act, their shareholding includes their own shareholding plus the shares delivered to the trust and the right to use the trust property. For information on insider’s equity declaration, please refer to the Market Observation Post System.

~105~

14. SEGMENTS INFORMATION

1) General information

Financial information by the Group’s segments is disclosed in accordance with IFRS 8. Management has determined the reportable operating segments based on the reports reviewed by the Chief Operating Decision-Maker (CODM) that are used to make strategic decisions. The Group’s operating segments are classified into Brokerage, Quantitative Trading, Proprietary Trading, Fixed Income and Reinvestment according to the sources of income. The remaining operating results which have not reached the threshold requirements are consolidated in ‘other operating segments’. Sources of income from products and services rendered by each segment are as follows:

A. Brokerage segment: consigned trading of the listed securities, margin trading and short sale, assistance in futures trading and other instruments trading as approved by the regulations.
B. Quantitative Trading segment: trading of domestic/overseas futures and options, ETF arbitrage, market maker, liquidity provider, hedging, spot/futures arbitrage as approved by Law.
C. Capital Market segment: assisted companies in applying for public offerings and listings, undertook cash capital increase assessments, assisted in corporate mergers and acquisitions, and provided professional consulting on finance and financial management.
D. Proprietary Trading segment: using the self-owned equity to conduct securities trading such as stocks and bonds trading, and futures and options hedging in Stock Exchange and OTC.
E. Reinvestment segment: companies reinvested by the consolidated entities.
F. Other operating segments include Fixed Income segment, Financial Instrument segment and Shareholder Services segment.

2) Segments information

The accounting policies applied to the Group’s operating segments and summary of accounting policies disclosed in the notes to the financial statements are consistent and identical. The operating gains and losses are measured by the amount before tax and used as basis for performance appraisal. Income and expense attributable to each operating segment are attributed to the segmental gains and losses. Non-attributable indirect expenses and expenses from logistic support segment are amortized to each operating segment based on reasonable calculation standards and the expense nature. Those that cannot be reasonably amortized are listed under “Others”

~106~

3) Profit or loss of segments information

Three months ended June 30, 2023

Brokerage segment		Quantitative Tradingsegment		Capital Market segment		Proprietary Tradingsegment	Reinvestment segment		Others 124,542 $ 22,305 $
947,009 $ 227,972 $		281,778 $ 112,437 $		132,894 $ 89,163 $		953,884 $ 237,155 $ 796,568 $ 125,525 $ Three months ended June 30,2022
Brokerage segment		Quantitative Tradingsegment		Capital Market segment		Proprietary Tradingsegment	Reinvestment segment		Others 60,951 $ 121,479 $
965,097 $ 289,119 $		150,349 $ 8,630 $	74,559) ($ 104,406) ($			192,893 $ 278,202 $ 159,221 $ 48,441 $ Six months ended June 30,2023
Brokerage segment		Quantitative Tradingsegment		Capital Market segment		Proprietary Tradingsegment	Reinvestment segment	Other operating segments 636,902 $ 48,823 $	Others 92,114 $ 18,572 $
1,744,206 $ 354,432 $		505,681 $ 211,493 $		306,323 $ 221,755 $		958,665 $ 486,051 $ 738,275 $ 219,925 $ Six months ended June 30,2022
Brokerage segment		Quantitative Tradingsegment		Capital Market segment		Proprietary Tradingsegment	Reinvestment segment
2,008,642 $ 620,184 $	201,046 $ 79,734) ($		57,456) ($ 116,403) ($		322,712) ($ 446,187) ($		559,796 $ 82,157 $

Note 1: As operating income (loss) in total is consistent with consolidated statement of comprehensive income, there is no need for adjustment.

~107~

Note 2: The Company measures the performance of reportable operating segment based on specific performance indicators instead of assets and liabilities. The performance of reportable operating segment is regularly reviewed and assessed by the CODM as a reference for making resources allocation decision.

4) Information on products and services

The Group’s segments are based on different products and services, and had disclosed in the general information. It discloses the types of products and services of the Group’s segments 's source of income. There is no additional disclosure requirement on the income information of products and services.

5) Geographical information

The Group's external customer income from a single foreign country is immaterial, so it is not required to be disclosed.

6) Major customer information

The Group did not have any significant customers that account for more than 10% of its revenue, so it is not required to be disclosed.

(Blank below)

~108~

AI assistant

PSC — Interim / Quarterly Report 2023

52209_rns_2023-12-22_aa668109-8df9-4111-995f-604cb5a26a27.pdf

PRESIDENT SECURITIES CORPORATION AND

SUBSIDIARIES

CONSOLIDATED FINANCIAL STATEMENTS AND

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

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

PRESIDENT SECURITIES CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS JUNE 30, 2023, DECEMBER 31, 2022 AND JUNE 30, 2022

PRESIDENT SECURITIES CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS JUNE 30, 2023, DECEMBER 31, 2022 AND JUNE 30, 2022

PRESIDENT SECURITIES CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME THREE MONTHS AND SIX MONTHS ENDED JUNE 30, 2023 AND 2022

PRESIDENT SECURITIES CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME THREE MONTHS AND SIX MONTHS ENDED JUNE 30, 2023 AND 2022

PRESIDENT SECURITIES CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY SIX MONTHS ENDED JUNE 30, 2023 AND 2022

PRESIDENT SECURITIES CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

SIX MONTHS ENDED JUNE 30, 2023 AND 2022

PRESIDENT SECURITIES CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

SIX MONTHS ENDED JUNE 30, 2023 AND 2022

PRESIDENT SECURITIES CORPORATION AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

SIX MONTHS ENDED JUNE 30, 2023 AND 2022

1. HISTORY AND ORGANIZATION

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

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

4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

1) Compliance statement

2) Basis of preparation

3) Basis of consolidation

11) Impairment of financial assets

12) Derecognition of financial instruments

13) Offsetting financial instruments-associates

15) Property and equipment

20) Financial liabilities at fair value through profit or loss

21) Contingent liabilities

22) Employee benefits

(B) Defined benefit plans

23) Revenues and expenses

26) Earnings per share

27) Operating segments

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

6. DETAILS OF SIGNIFICANT ACCOUNTS

1) Cash and cash equivalents

2) Financial assets at fair value through profit or loss

3) Financial assets at fair value through other comprehensive income

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

4) Margin loans receivable

5) Customer margin account

6) Accounts receivable

7) Other receivables

8) Other current assets

9) Transfer of financial assets

10) Offsetting financial assets and financial liabilities

(1) Financial assets

(2) Financial liabilities

11) Investments accounted for under the equity method

Balance sheet

Balance sheet

Statement of comprehensive income

12) Property and equipment

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

14) Leasing arrangements – lessor

15) Investment property

16) Intangible assets

17) Other non-current assets

18) Short-term loans

20) Financial liabilities at fair value through profit or loss - current

21) Bonds sold under repurchase agreements

22) Accounts payable

PSC Interim / Quarterly Report 2023

`－` a. Lease liabilities current

`－` b. Lease liabilities non-current