PSC — Interim / Quarterly Report 2024

Dec 20, 2024

PRESIDENT SECURITIES CORPORATION AND

SUBSIDIARIES

CONSOLIDATED FINANCIAL STATEMENTS AND

INDEPENDENT AUDITORS’ REVIEW REPORT MARCH 31, 2024 AND 2023

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For the convenience of readers and for information purpose only, the auditors’ review 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’ review report and financial statements shall prevail.

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INDEPENDENT AUDITORS’ REVIEW REPORT TRANSLATED FROM CHINESE

PWCR24000189 To the Board of Directors and Shareholders of PRESIDENT SECURITIES CORPORATION

Introduction

We have reviewed the accompanying consolidated balance sheets of President Securities Corporation and subsidiaries as at March 31, 2024 and 2023, and the related consolidated statements of comprehensive income, of changes in equity and of cash flows for the three months then ended, and notes to the consolidated financial statements, including a summary of material accounting policies. Management is responsible for the preparation and fair presentation of these consolidated financial statements in accordance with “Regulations Governing the Preparation of Financial Reports by Securities Firms”, “Regulations Governing the Preparation of Financial Reports by Futures Commission Merchants” and International Accounting Standard 34, “Interim Financial Reporting” that came into effect as endorsed by the Financial Supervisory Commission. Our responsibility is to express a conclusion on these consolidated financial statements based on our reviews.

Scope of Review

Except as stated in the following paragraph, we conducted our reviews in accordance with the Standard on Review Engagements 2410, “Review of Financial Information Performed by the Independent Auditor of the Entity” of the Republic of China. A review of consolidated financial statements consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express such an opinion.

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Basis for Qualified Conclusion

As explained in Notes 4(3) and 6(11), the financial statements of certain insignificant consolidated subsidiaries and investments accounted for under the equity method were not reviewed by independent auditors. Those statements reflect total assets of $1,541,174 thousand and $1,635,923 thousand, constituting 0.85% and 1.44% of the consolidated total assets, and total liabilities of $51,804 thousand and $116,218 thousand, constituting 0.04 % and 0.14 % of the consolidated total liabilities as at March 31, 2024 and 2023, and total comprehensive income (loss) of $13,681 thousand and $8,055 thousand, constituting 0.72% and 1.27% of the consolidated total comprehensive income for the three months then ended. The balance of such investments accounted for under the equity method as at March 31, 2024 and 2023 were $878,051 thousand and $794,598 thousand, respectively; President Securities Corporation and subsidiaries’ share of comprehensive income of associates and joint ventures accounted for under the equity method, including share of profit or loss of associates and joint ventures accounted for under the equity method and share of other comprehensive income of associates and joint ventures accounted for under the equity method, for the three months then ended were $80,844 thousand and $46,518 thousand, constituting 4.25% and 7.33% of total consolidated comprehensive income, respectively.

Qualified Conclusion

Except for the adjustments to the consolidated financial statements, if any, as might have been determined to be necessary had the financial statements of certain insignificant consolidated subsidiaries and investments accounted for under the equity method been reviewed by independent auditors, that we might have become aware of had it not been for the situation described above, based on our reviews, nothing has come to our attention that causes us to believe that the accompanying consolidated financial statements do not present fairly, in all material respects, the consolidated financial position of President Securities Corporation and subsidiaries as at March 31, 2024 and 2023, and of its consolidated financial performance and its consolidated cash flows for the three months then ended in accordance with the “Regulations Governing the Preparation of Financial

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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.

Lin, Se-Kai

Independent Auditors

Kuo, Puo-Ju

For and on behalf of PricewaterhouseCoopers, Taiwan May 8, 2024

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

As the financial statements are the responsibility of the management, PricewaterhouseCoopers 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 MARCH 31, 2024, DECEMBER 31, 2023 AND MARCH 31, 2023

(Expressed in thousands of New Taiwan dollars)

Assets	Notes	March31,2024	% 3 36 2 11 - - 8 12 - - - 21 - - - - 2 95 - 1 2 1 - - - - 1 5 100	December31,2023 AMOUNT % $ 5,509,978 4 53,698,997 38 3,078,680 2 17,395,242 12 1,982 - 1,476 - 9,247,169 7 20,526,117 15 451,397 - 475,705 - 1,475 - 19,095,101 14 1,191 - 49,546 - 74,632 - 125 - 1,725,872 1 131,334,685 93 118,280 - 1,168,288 1 3,412,924 3 2,645,077 2 132,026 - 184,153 - 292,437 - 130,674 - 1,246,679 1 9,330,538 7 $ 140,665,223 100	March31,2023
		AMOUNT $ 6,059,557 65,319,903 3,554,862 19,080,210 - - 13,344,585 21,580,795 488,925 454,430 370 38,276,619 1,307 50,630 66,910 145 2,828,300 171,107,548 124,118 1,214,857 3,505,138 2,641,460 172,977 183,798 305,047 132,778 1,331,932 9,612,105 $ 180,719,653		AMOUNT $ 5,509,978 53,698,997 3,078,680 17,395,242 1,982 1,476 9,247,169 20,526,117 451,397 475,705 1,475 19,095,101 1,191 49,546 74,632 125 1,725,872 131,334,685 118,280 1,168,288 3,412,924 2,645,077 132,026 184,153 292,437 130,674 1,246,679 9,330,538 $ 140,665,223	AMOUNT $ 6,465,825 34,758,788 3,198,523 11,952,731 2,670 2,170 5,589,215 20,512,413 196,914 2,271,290 476 17,488,914 1,305 53,993 58,143 61 1,682,599 104,236,030 123,038 1,231,843 3,570,049 2,580,968 149,929 265,777 249,647 96,875 1,290,940 9,559,066 $ 113,795,096	%
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)					6 31 3 11 - - 5 18 - 2 - 15 - - - - 1
						92
						- 1 3 3 - - - - 1
						8
						100

(Continued)

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PRESIDENT SECURITIES CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS MARCH 31, 2024, DECEMBER 31, 2023 AND MARCH 31, 2023

(Expressed in thousands of New Taiwan dollars)

Liabilities andEquity	Notes	March31,2024	% 7 15 7 12 - - 1 12 1 19 - 1 1 5 - - - 81 - - - - - 81 8 - 2 5 3 1 19 - 19 100	December31,2023 AMOUNT % $ 6,944,759 5 21,130,934 15 10,471,312 7 19,140,506 14 921,093 1 1,163,504 1 1,632,008 1 20,497,894 14 852,083 1 17,091,415 12 3,642 - 614,380 - 2,259,582 2 5,224,019 4 265,324 - 58,542 - 84,055 - 108,355,052 77 15,507 - 68,894 - 19,173 - 64,489 - 168,063 - 108,523,115 77 14,558,313 10 91,261 - 3,959,127 3 9,253,546 7 2,752,936 2 1,434,309 1 32,049,492 23 92,616 - 32,142,108 23 $ 140,665,223 100	March31,2023
		AMOUNT $ 12,494,400 26,853,933 12,609,928 21,001,692 580,775 837,472 2,021,823 21,502,913 1,434,312 34,488,324 8,814 897,140 2,233,452 8,952,901 328,991 62,071 131,714 146,440,655 15,528 105,016 60,161 56,039 236,744 146,677,399 14,558,313 91,261 3,959,127 9,253,546 4,478,589 1,605,111 33,945,947 96,307 34,042,254 $ 180,719,653		AMOUNT $ 6,944,759 21,130,934 10,471,312 19,140,506 921,093 1,163,504 1,632,008 20,497,894 852,083 17,091,415 3,642 614,380 2,259,582 5,224,019 265,324 58,542 84,055 108,355,052 15,507 68,894 19,173 64,489 168,063 108,523,115 14,558,313 91,261 3,959,127 9,253,546 2,752,936 1,434,309 32,049,492 92,616 32,142,108 $ 140,665,223	AMOUNT $ 1,951,100 13,690,763 9,447,280 9,677,565 630,014 712,176 1,822,600 20,446,473 310,382 18,437,878 2,765 552,631 1,362,660 3,787,486 260,739 68,019 88,804 83,249,335 15,441 73,439 7,612 7,829 104,321 83,353,656 14,558,313 91,261 3,877,849 9,090,989 1,274,465 1,458,437 30,351,314 90,126 30,441,440 $ 113,795,096	%
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 12 8 9 1 1 2 18 - 16 - - 1 3 - - -
						73
						- - - -
						-
						73
						13 - 4 8 1 1
						27
						-
						27
						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 ENDED MARCH 31, 2024 AND 2023

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

Three months ended March 31

	Three months ended March 31
Items	2024 2023 Notes AMOUNT % AMOUNT % 6(29) $ 1,068,695 27 $ 693,980 37 6(30) 31,966 1 14,473 1 19,914 - 7,504 - 6(31) 2,608,415 65 811,568 44 20,957 1 20,437 1 6(32) 501,961 13 281,693 15 114,726 3 41,865 2 6(33) 1,605,067 40 890,256 48 6(34) ( 326,102 ) ( 8) ( 144,678) ( 8 ) 6(35) ( 156,672 ) ( 4) ( 906,985) ( 49 ) 81,590 2 - - ( 66,204 ) ( 2) ( 151,394) ( 8 ) 1,531 - 2,396 - 6(36) ( 471,456 ) ( 12) ( 85,724) ( 4 ) 6(37) ( 1,349,778 ) ( 34) 237,616 13 6(38) 22,209 1 ( 2,879) - 6(39) 291,297 7 156,278 8 3,998,116 100 1,866,406 100 6(40) ( 170,946 ) ( 4) ( 114,522) ( 6 ) ( 3,753 ) - ( 3,053) - 6(41) ( 359,050 ) ( 9) ( 156,588) ( 8 ) ( 22,656 ) ( 1) ( 22,886) ( 1 ) ( 31,885 ) ( 1) ( 27,360) ( 2 ) ( 247 ) - - - 6(42) ( 1,206,377 ) ( 30) ( 682,837) ( 37 ) 6(43) ( 85,329 ) ( 2) ( 77,233) ( 4 ) 6(44) ( 525,149 ) ( 13) ( 409,200) ( 22 ) ( 2,405,392 ) ( 60) ( 1,493,679) ( 80 )
400000 Revenues 401000 Brokerage handling fee revenue 404000 Revenues from underwriting business 406000 Net gain (loss) on wealth management 410000 Net gain (loss) on sale of operating securities 421100 Revenue from providing agency service for stock affairs 421200 Interest income 421300 Dividend income 421500 Net valuation gain (loss) on operating securities at fair value through profit or loss 421600 Net gain (loss) on covering of borrowed securities and bonds with resale agreements-short sales 421610 Net valuation gain (loss) on borrowed securities and bonds with resale agreements-short sales at fair value through profit or loss 421800 Valuation gain (loss) on securities for futures margin at fair value through profit or loss 422000 Net gain (loss) on issuance of ETNs 422100 Administrative and handling fee revenues from issuance of ETNs 422200 Net gain (loss) from issuance of call (put) warrants 424400 Net gain (loss) from derivatives 425300 Expected credit impairment loss and reversal of impairment gain 428000 Other operating income Total revenues 500000 Expenditures and expenses 501000/ 502000/ 503000 Handling charges 507000 ETNs administrative expenses 521200 Financial costs 524100 Futures commission expense 524300 Expense of clearing and settlement 528000 Other operating expenditure 531000 Employee benefits expense 532000 Depreciation and amortization 533000 Other operating expenses Total expenditures and expenses

(Continued)

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PRESIDENT SECURITIES CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

THREE MONTHS ENDED MARCH 31, 2024 AND 2023

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

Three months ended March 31

Items	Notes 6(11) 6(45) 6(46) ( ( 6(47)	2024	2023 % AMOUNT 40 $ 372,727 1 41,112 5 158,759 46 572,598 3) ( 113,155) ( 43 $ 459,443 5 $ 108,298 - 2,413 2 ( 4,856) 2) 69,654 5 $ 175,509 48 $ 634,952 43 $ 457,532 - $ 1,911 48 $ 632,222 - $ 2,730 1.19 $ 1.18 $	2023	% 20 2 9 31 6 ) 25 6 - - 3 9 34 25 - 34 - 0.31 0.31
		AMOUNT $ 1,592,724 40,994 210,478 1,844,196 115,738 ) ( $ 1,728,458 $ 170,631 2,613 86,478 88,034 ) ( $ 171,688 $ 1,900,146 $ 1,725,653 $ 2,805 $ 1,896,455 $ 3,691 $
Operating profit 601000 Share of the profit or loss of associates and joint ventures accounted for under the equity method 602000 Other gains and losses 902001Profit before tax 701000 Income tax (expense) benefit 902005Net income Other comprehensive income Components of other comprehensive income that will not be reclassified to profit or loss 805540 Net unrealized gain (loss) from investments in equity instruments at fair value through other comprehensive income 805550 Other comprehensive gain (loss) of associates and joint ventures accounted for under the equity method Items may be reclassified to profit of loss subsequently 805610 Translation gain (loss) on the financial statements of foreign operating entities 805615 Net unrealized gain (loss) from investments in debt instruments at fair value through other comprehensive income 805000 Current other comprehensive income (loss) (post-tax) 902006Total current comprehensive income Income attributable to: 913100 Parent company 913200 Non-controlling interests Current comprehensive income (loss) attributable to: 914100 Parent company 914200 Non-controlling interests Earnings per share 975000 Basic earnings per share (in dollars) 985000 Diluted earnings per share (in dollars)
		$		$

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

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PRESIDENT SECURITIES CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY THREE MONTHS ENDED MARCH 31, 2024 AND 2023

(Expressed in thousands of New Taiwan dollars)

For the three months ended March 31, 2023 Balance at January 1, 2023 Net income for the three months ended March 31, 2023 Other comprehensive income (loss) for the three months ended March 31, 2023 Total comprehensive income (loss) Balance at March 31, 2023 For the three months ended March 31, 2024 Balance at January 1, 2024 Net income for the three months ended March 31, 2024 Other comprehensive income for the three months ended March 31, 2024 Total comprehensive income Balance at March 31, 2024								Equity attributab	le	to owners of the parent	to owners of the parent	to owners of the parent	to owners of the parent	to owners of the parent				Non-controlling interests $ 87,396 1,911 819 2,730 $ 90,126 $ 92,616 2,805 886 3,691 $ 96,307		Total equity
		Common stock		Capital reserve				Retained earnings				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
		$ 14,558,313 - - - $ 14,558,313 $ 14,558,313 - - - $ 14,558,313		$ 91,261 - - - $ 91,261 $ 91,261 - - - $ 91,261		$ 3,877,849 - - - $ 3,877,849 $ 3,959,127 - - - $ 3,959,127		$ 9,090,989 - - - $ 9,090,989 $ 9,253,546 - - - $ 9,253,546		$ 816,933 457,532 - 457,532 $ 1,274,465 $ 2,752,936 1,725,653 - 1,725,653 $ 4,478,589	$ 103,010 - ( 4,856 ) ( 4,856 ) $ 98,154 $ 43,973 - 86,478 86,478 $ 130,451			$ 1,180,737 - 179,546 179,546 $ 1,360,283 $ 1,390,336 - 84,324 84,324 $ 1,474,660		$ 29,719,092 457,532 174,690 632,222 $ 30,351,314 $ 32,049,492 1,725,653 170,802 1,896,455 $ 33,945,947				$ 29,806,488 459,443 175,509 634,952 $ 30,441,440 $ 32,142,108 1,728,458 171,688 1,900,146 $ 34,042,254

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

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PRESIDENT SECURITIES CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

THREE MONTHS ENDED MARCH 31, 2024 AND 2023

(Expressed in thousands of New Taiwan dollars)

CASH FLOWS FROM OPERATING ACTIVITIES Profit before tax Adjustments Income and expenses having no effect on cash flows Net valuation (gain) loss on operating securities at fair value through profit or loss Net valuation (gain) loss on borrowed securities and bonds with resale agreements-short sales at fair value through profit or loss Valuation gain (loss) on securities for futures margin 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 on valuation of non-operating financial instrument Changes in assets/liabilities relating to operating activities Changes in operating assets Financial assets at fair value through profit or loss Financial assets at fair value through other comprehensive income 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

Three months ended March 31 Notes 2024 2023 $ 1,844,196 $ 572,598 6(2)(33) ( 1,605,067 ) ( 890,256 ) 6(35) 156,672 906,985 ( 81,590 ) - 6(38) ( 22,031 ) 2,926 6(43) 61,209 59,588 6(43) 24,120 17,645 6(41) 359,050 156,588 6(32)(45) ( 653,751 ) ( 403,100 ) ( 115,031 ) ( 42,100 ) 6(11) ( 40,994 ) ( 41,112 ) 6(12) 32 74 6(45) ( 8,513 ) ( 2,300 ) ( 9,930,783 ) ( 9,494,027 ) ( 320,955 ) ( 589,841 ) ( 1,662,317 ) ( 1,423,338 ) 1,982 91,466 1,476 70,229 ( 4,097,416 ) ( 1,494,307 ) ( 1,054,678 ) 270,842 ( 37,528 ) 962,663 21,275 1,106,340 1,105 287 ( 19,099,989 ) ( 7,203,320 ) ( 116 ) ( 110 ) ( 1,084 ) ( 15,425 ) ( 6,622 ) 6,556 ( 1,102,428 ) 268,362 1,981,944 ( 617,025 ) 1,861,186 2,712,141 ( 340,318 ) ( 1,179,342 ) ( 326,032 ) ( 1,097,786 ) 389,815 16,009 1,005,019 ( 317,113 ) 582,229 44,456 17,381,307 7,464,148 5,172 489 282,760 ( 192,089 ) ( 41,959 ) ( 227,356 ) 3,728,882 1,003,400 47,659 5,591

(Continued)

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PRESIDENT SECURITIES CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

THREE MONTHS ENDED MARCH 31, 2024 AND 2023

(Expressed in thousands of New Taiwan dollars)

Cash outflow generated from operations Interest received Dividends received Income tax paid Net cash flows used in operating activities CASH FLOWS FROM INVESTING ACTIVITIES Acquisition of property and equipment Acquisition of intangible assets (Increase) decrease in other non-current assets Increase 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 financing activities Effect of exchange rate changes on cash and cash equivalents Net increase in cash and cash equivalents Cash and cash equivalents at beginning of period Cash and cash equivalents at end of period

Three months ended March 31 Notes 2024 2023 ( $ 10,812,112 ) ( $ 9,490,564 ) 585,366 373,117 82,288 31,885 ( 13,207 ) ( 8,286 ) ( 10,157,665 ) ( 9,093,848 ) 6(12) ( 19,321 ) ( 8,168 ) 6(16) ( 10,068 ) ( 5,752 ) ( 90,207 ) 22,307 ( 40,763 ) ( 18,798 ) ( 160,359 ) ( 10,411 ) 5,549,641 1,676,100 5,730,000 7,870,000 ( 8,450 ) ( 99 ) ( 20,196 ) ( 24,004 ) ( 303,955 ) ( 144,770 ) 10,947,040 9,377,227 ( 79,437 ) ( 1,716 ) 549,579 271,252 5,509,978 6,194,573 $ 6,059,557 $ 6,465,825

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

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PRESIDENT SECURITIES CORPORATION AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

THREE MONTHS ENDED MARCH 31, 2024 AND 2023

(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 March 31, 2024, 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 1,703 and 1,699 as of March 31, 2024 and 2023, respectively.

• THE DATE OF AUTHORIZATION FOR ISSUANCE OF THE CONSOLIDATED FINANCIAL STATEMENTS AND PROCEDURES FOR AUTHORIZATION

• These consolidated financial statements were reported to the Board of Directors on May 8, 2024.

• APPLICATION OF NEW STANDARDS, AMENDMENTS AND INTERPRETATIONS 1) Effect of the adoption of new issuances of or amendments to International Financial Reporting Standards (“IFRS[®] ”) Accounting Standards 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 2024 are as follows:

Effective Date by International Accounting New Standards, Interpretations and Amendments Standards Board Amendments to IFRS 16, ‘Lease liability in a sale and leaseback’ January 1, 2024

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	Effective Date by
	International Accounting
New Standards,Interpretations and Amendments	Standards Board
Amendments to IAS 1, ‘Classification of liabilities as current or non- current’	January 1, 2024
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

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 IFRS Accounting Standards as endorsed by

the FSC but not yet adopted by the Group

None.

3) IFRS Accounting Standards issued by IASB but not yet endorsed by the FSC

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

==> picture [436 x 42] intentionally omitted <==

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Effective Date by
International Accounting
New Standards, Interpretations and Amendments Standards Board
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New Standards,Interpretations and Amendments	Effective Date by International Accounting Standards Board
Amendments to IFRS 10 and IAS 28, ‘Sale or contribution of assets between an investor and its associate or joint venture’	To be determined by International Accounting Standards Board
IFRS 17, ‘Insurance contracts’	January 1, 2023
Amendments to IFRS 17, ‘Insurance contracts’	January 1, 2023
Amendment to IFRS 17, ‘Initial application of IFRS 17 and IFRS 9 – comparative information’	January 1, 2023
IFRS 18, ‘Presentation and disclosure in financial statements’	January 1, 2027
Amendments to IAS 21, ‘Lack of exchangeability’	January 1, 2025

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

the Group’s financial condition and financial performance based on the Group’s assessment: IFRS 18, ‘Presentation and disclosure in financial statements’

IFRS 18, ‘Presentation and disclosure in financial statements’ replaces IAS 1. The standard introduces a defined structure of the statement of profit or loss, disclosure requirements related to management-defined performance measures, and enhanced principles on aggregation and disaggregation which apply to the primary financial statements and notes.

4. SUMMARY OF MATERIAL 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

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the Regulations Governing the Preparation of Financial Reports by Securities Firms, and Regulations Governing the Preparation of Financial Reports by Futures Commission Merchants and the International Accounting Standard No. 34, ‘Interim financial reporting’ that came into effect as endorsed by the FSC.

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 International Financial Reporting Standards, International Accounting Standards, IFRIC Interpretations, and SIC Interpretations that came into effect as endorsed by the FSC (collectively referred herein as the “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

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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.

• (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.

(Blank below)

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B. Subsidiaries included in the consolidated financial statements:

Name of Investor	Name of Subsidiary	Main Business Activities March 31,2024 Futures brokerage and dealer 96.69% Securities investment consulting 100% Securities dealer, brokerage, underwriting and consulting 100% Insurance Agent 100% Consultation of investment management and venture capital; other unprohibited or unrestricted businesses beyond the permit 100% Wealth management 100% Nominee Service - (Note2)	December 31,2023 96.69% 100% 100% 100% 100% 100% 100% Ownership (%)	March 31,2023
The Company 〃 〃 〃 〃 〃 〃	President Futures Corp. (President Futures) President Capital Management Corp. (President Capital Management) President Securities (HK) Ltd.(President Securities (HK)) (Note 1) 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 1) President Securities (Nominee) Ltd. (President Securities (Nominee))			96.69% 100% 100% 100% 100% 100% 100%

• Note 1: Subsidiary President Securities (HK) Ltd. and President Wealth Management (HK) 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. had remitted all funds on account on April 27, 2023 for the subsequent liquidation process.

• Note 2: The dissolution and liquidation of President Securities (Nominee) was approved by the Board of Directors in March 2022, and the liquidation was completed in January 2024, so it no longer was included in the consolidated entity.

• Note 3: Except for President Futures’ financial statements for the three months ended March 31, 2024 and 2023 that were reviewed by independent auditors, the above-listed subsidiaries included in the consolidated financial statements for the three months ended March 31, 2024 and 2023, were not reviewed by independent auditors.

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• 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) It does not have the right at the end of the reporting period to defer settlement of the liability at least twelve months after the reporting period.

• 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 differences are recognized in profit or loss. Non-monetary assets and liabilities denominated in foreign currencies held at fair value through other comprehensive

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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 maturing within one year 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:

  • (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.

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• B. On a regular way purchase or sale basis, financial assets at fair value through other comprehensive income 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 (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.

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• 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.

• 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.

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• 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

• 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

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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.

• 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.

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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.

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

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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.

• (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

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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. Also, 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.

• 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

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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) and does not give rise to equal taxable and deductible temporary differences. 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 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

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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 carrying amount 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.

• 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 as endorsed by the FSC. Estimates and assumptions are made based on past experience and other factors deemed relevant; however, the actual results may differ from the estimates. The Group evaluates the

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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.

• (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.

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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	March 31,2024 1,650 $ 560,510 1,252,508 1,078,399 3,166,490 6,059,557 $	December 31,2023 150 $ 608,351 811,348 722,937 3,367,192 5,509,978 $	March 31, 2023
			1,650 $ 511,055 608,497 1,937,466 3,407,157
			6,465,825 $

As of March 31, 2024 , December 31, 2023 and March 31, 2023, the annual interest rates of time deposits, including foreign time deposits were 0.565%~5.400%, 0.555%~5.500%, and 0.330%~5.014%, respectively.

2) Financial assets at fair value through profit or loss

Current items: Financial assets mandatorily measured at fair value through profit or loss: Security lending Security lending Adjustment of security lending Total Open-ended funds, money market instruments and securities investment by brokers Open-ended mutual funds beneficiary Commerial papers Exchange-traded funds Subtotal Adjustment of open-ended funds, money market instruments and securities investment by brokers Total	March 31,2024 241,833 $ 3,001 244,834 222,515 29,572 98,711 350,798 21,844 372,642	December 31,2023 89,389 $ 1,613) ( 87,776 240,985 - 65,080 306,065 11,488 317,553	March 31,2023
			252,895 $ 222) (
			252,673
			153,622 - 63,035
			216,657 2,052
			218,709

~29~

==> picture [435 x 548] intentionally omitted <==

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

March 31, 2024 December 31, 2023 March 31, 2023
Trading securities - dealer
Listed (TSE and OTC) stocks $ 11,607,552 $ 6,431,803 $ 5,573,987
Government bonds 349,346 1,693,534 899,802
Corporate bonds 5,194,069 4,054,695 1,712,237
Convertible corporate bonds 2,046,350 1,358,491 524,767
Emerging stocks 236,820 259,975 174,080
Overseas stocks 11,640,515 12,310,430 8,136,461
Exchange-traded funds 3,695,259 2,572,774 2,599,429
Unlisted stocks 168,943 170,943 138,121
Subtotal 34,938,854 28,852,645 19,758,884
Adjustment of trading securities - dealer 1,534,984 623,506 282,420
Total 36,473,838 29,476,151 20,041,304
Trading securities - underwriter
Listed (TSE and OTC) stocks 107,100 95,604 5,253
Convertible corporate bonds 618,100 602,696 572,539
Subtotal 725,200 698,300 577,792
Adjustment of trading securities - underwriter 207,154 175,242 114,764
Total 932,354 873,542 692,556
-
Trading securities hedging
Listed (TSE and OTC) stocks 11,124,693 8,028,344 3,745,898
Convertible corporate bonds 9,471,816 9,315,389 3,852,933
Corporate bonds 100,000 100,000 -
Warrants 18,907 15,694 13,820
Overseas stocks 253,126 104,122 174,402
Exchange traded funds 1,408 15,141 10,515
Subtotal 20,969,950 17,578,690 7,797,568
Adjustment of trading securities - hedging 1,335,817 527,952 145,378
Total 22,305,767 18,106,642 7,942,946
Options bought - futures 8,609 5,547 17,900
Futures Margin - Own Funds 4,471,325 4,830,957 5,588,335
Futures Margin - Securities 482,900 - -
Derivative financial instrument assets - OTC 27,634 829 4,365
Total $ 65,319,903 $ 53,698,997 $ 34,758,788
March 31, 2024 December 31, 2023 March 31, 2023
Non-current items:
Financial assets mandatorily measured at fair
value through profit or loss:
Trading securities - dealer - government bonds $ 49,841 $ 49,829 $ 49,792
Unlisted stocks 435 435 2,609
Others 50,000 50,000 50,000
Subtotal 100,276 100,264 102,401
Adjustment of trading securities 23,842 18,016 20,637
Total $ 124,118 $ 118,280 $ 123,038
----- End of picture text -----

• a. For the three months ended March 31, 2024 and 2023, net realized and unrealized gains (losses) on financial assets and liabilities at fair value through profit or loss amounted to $1,926,391 and $653,055, 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).

~30~

3) Financial assets at fair value through other comprehensive income

==> picture [433 x 243] intentionally omitted <==

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

March 31, 2024 December 31, 2023 March 31, 2023
Current items:
Equity instruments:
Trading securities - dealer
Listed (TSE and OTC) stocks $ 189,812 $ 189,812 $ 189,812
Adjustment of trading securities - dealer 329,781 205,719 165,699
Subtotal 519,593 395,531 355,511
Debt instruments:
Trading securities - dealer
Overseas bonds 3,053,084 2,681,326 2,863,145
Adjustment of trading securities - dealer ( 17,815) 1,823 ( 20,133)
Subtotal 3,035,269 2,683,149 2,843,012
Total $ 3,554,862 $ 3,078,680 $ 3,198,523
March 31, 2024 December 31, 2023 March 31, 2023
Non-current items:
Equity instruments:
Unlisted stocks $ 37,565 $ 37,565 $ 37,565
Adjustment of trading securities 1,177,292 1,130,723 1,194,278
Total $ 1,214,857 $ 1,168,288 $ 1,231,843
----- End of picture text -----

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 $1,734,450, $1,563,819 and $1,587,354 as at March 31, 2024, December 31, 2023 and March 31 2023, respectively.

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

Equity instruments at fair value through other comprehensive income		Three months ended March 31,2024		Three months ended March 31,2023
Fair value change recognised in other comprehensive income - parent company Fair value change recognised in other comprehensive income - non-controlling interest Total Dividend income recognised in profit or loss Held at end of period Debt instruments at fair value through other comprehensive income		169,745 $ 886 170,631 $ 2,334 $ Three months ended March 31,2024		107,479 $ 819 108,298 $ 1,834 $ Three months ended March 31,2023
Fair value change recognised in other comprehensive income Interest income recognised in profit or loss	88,034) ($ 27,510 $			69,654 $ 22,119 $

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.

~31~

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

Bank deposit Futures clearing house Other futures commission merchant Securities Total	March 31, 2024 December 31, 2023 March 31, 2023 14,443,967 $ 14,568,406 $ 13,846,015 $ 4,406,096 3,207,614 4,101,411 2,730,349 2,749,733 2,564,736 383 364 251 21,580,795 $ 20,526,117 $ 20,512,413 $

The difference between the customer margin deposits accounts and futures traders’ equity as of March 31, 2024, December 31, 2023 and March 31 2023, were outlined below:

		March 31, 2024		December 31,2023	December 31,2023		March 31,2023
Customer margin deposits accounts	$	21,580,795	$		20,526,117	$	20,512,413
Futures trading margins receivable
Add: Early customer margin deposits		2,265			8,915		15,361
Less: Service fee income pending for transfer	(	46,347)	(		29,470)	(	44,790)
Futures exchange tax pending for transfer	(	1,326)	(		725)	(	1,042)
Net interest income pending for transfer		-			-	(	20,536)
Temporary receipts	(	32,474)	(		6,943)	(	14,933)
Futures trader’s equity	$	21,502,913	$		20,497,894	$	20,446,473

6) Accounts receivable

		March 31,2024		December 31,2023	December 31,2023		March 31,2023
Accounts receivable - related parties	$	1,307	$		1,191	$	1,305
Accounts receivable - non related parties
Settlement price receivable-brokers	$	20,341,825	$		13,698,197	$	10,686,913
Settlement price receivable-dealer		7,202,165			1,473,114		453,865
Settlement price receivable-foreign bonds		4,819,945			916,071		4,295,935
Spot exchange receivable, foreign currencies		-			37,393		158,375
Interest receivable		558,259			478,227		337,913
Settlement price		4,954,604			1,780,200		1,328,088
Others		400,122			712,540		228,384
Subtotal		38,276,920			19,095,742		17,489,473
Less: Allowance for uncollectable accounts	(	301)	(		641)	(	559)
Total	$	38,276,619	$		19,095,101	$	17,488,914

~32~

• A. The ageing analysis of accounts receivable that were past due but not impaired is as 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		Up to 30 days		31 to 90 days		91 to 180 days 181 days to 12 months - $ - $ 184,118 160,492 184,118 $ 160,492 $ 91 to 180 days 181 days to 12 months March 31,2024 December 31,2023	91 to 180 days 181 days to 12 months - $ - $ 184,118 160,492 184,118 $ 160,492 $ 91 to 180 days 181 days to 12 months March 31,2024 December 31,2023	91 to 180 days 181 days to 12 months - $ - $ 184,118 160,492 184,118 $ 160,492 $ 91 to 180 days 181 days to 12 months March 31,2024 December 31,2023	More than 12 months	More than 12 months		Total
		879 $ 37,782,756 37,783,635 $ Up to 30 days		428 $ 79,878 80,306 $ 31 to 90 days					- $ 69,676 69,676 $ More than 12 months			1,307 $ 38,276,920
												38,278,227 $ Total
		763 $ 18,635,202 18,635,965 $		428 $ 119,962 120,390 $		- $ - $ 151,182 122,488 151,182 $ 122,488 $ March 31, 2023				- $ 66,908 66,908 $		1,191 $ 19,095,742
												19,096,933 $
		Up to 30 days		31 to 90 days		91 to 180 days		181 days to 12 months	More than 12 months			Total
		1,305 $ 17,163,424 17,164,729 $		- $ 43,263 43,263 $		- $ 89,745 89,745 $		- $ 107,727 107,727 $		- $ 85,314 85,314 $		1,305 $ 17,489,473
												17,490,778 $

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

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

• 7) Other receivables

Other receivables
		March 31,2024	December	31,2023		March 31,2023
Interest receivable	$	40,605	$	54,949	$	35,646
Others		26,580		19,958		22,822
Subtotal		67,185		74,907		58,468
Less: Allowance for uncollectible accounts	(	275)	(	275)	(	325)
Total	$	66,910	$	74,632	$	58,143

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

~33~

8) 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	March 31,2024 335,708 $ 500,000 53,852 257,625 1,434,312 246,803 2,828,300 $	December 31,2023 282,289 $ 400,000 47,264 90,245 852,083 53,991 1,725,872 $	March 31,2023 343,125 $ 400,000 612,174 15 310,382 16,903 1,682,599 $

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:
	March 31,2024	Carrying amount of related financial liabilities
Financial assets category Carrying amount of transferred financial assets Financial assets measured at fair value through profit or loss Repurchase agreement 17,947,439 $ Financial assets measured at fair value through other comprehensive income Repurchase agreement 3,035,269 December 31,2023	Carrying amount of transferred financial assets
		18,048,925 $ 2,952,767 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
	17,723,768 $ 2,651,447	16,573,700 $ 2,566,806

~34~

	March 31,2023	March 31,2023
		Carrying amount of	Carrying amount of related
Financial assets category	transferred financial assets			financial liabilities
Financial assets measured at fair value
through profit or loss
Repurchase agreement	$	6,976,156	$	6,879,239
Financial assets measured at fair value
through other comprehensive income
Repurchase agreement		2,843,012		2,798,326

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)

~35~

(1)Financial assets

==> picture [656 x 259] intentionally omitted <==

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

March 31, 2024
Gross amounts Gross amounts of Net amounts of financial Not set off in the balance sheet
of recognised recognised financial liabilities assets presented in the Financial Cash collateral
Description financial assets set off in the balance sheet balance sheet instruments received Net amount
Derivative financial
instruments $ 27,634 $ - $ 27,634 $ 1,001 $ - $ 26,633
December 31, 2023
Gross amounts Gross amounts of Net amounts of financial Not set off in the balance sheet
of recognised recognised financial liabilities assets presented in the Financial Cash collateral
Description financial assets set off in the balance sheet balance sheet instruments received Net amount
Derivative financial
instruments $ 829 $ - $ 829 $ 829 $ - $ -
March 31, 2023
Gross amounts Gross amounts of Net amounts of financial Not set off in the balance sheet
of recognised recognised financial liabilities assets presented in the Financial Cash collateral
Description financial assets set off in the balance sheet balance sheet instruments received Net amount
Derivative financial
instruments $ 4,351 $ - $ 4,351 $ 4,351 $ - $ -
----- End of picture text -----

~36~

(2) Financial liabilities

) Financial liabilities
				March 31,2024
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 1,001 $ - $ 15,176,749 - 15,177,750 $ - $ Not set off in the balance sheet		Net amount
								Financial instruments
		1,001 $ 15,176,749 15,177,750 $		- $ 1,001 $ - 15,176,749 - $ 15,177,750 $ December 31,2023				1,001 $ 15,176,749 15,177,750 $		- $ -
										- $
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 829 $ - $ 13,998,281 - 13,999,110 $ - $ Not set off in the balance sheet		Net amount
								Financial instruments
		33,039 $ 13,998,281 14,031,320 $		- $ 33,039 $ - 13,998,281 - $ 14,031,320 $ March 31,2023				829 $ 13,998,281 13,999,110 $		32,210 $ -
										32,210 $
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 4,350 $ - $ 7,042,930 - 7,047,280 $ - $ Not set off in the balance sheet		Net amount
								Financial instruments
		6,605 $ 7,042,930 7,049,535 $		- $ - - $		6,605 $ 7,042,930 7,049,535 $		4,350 $ 7,042,930 7,047,280 $		2,255 $ -
										2,255 $

~37~

11) Investments accounted for under the equity method

Uni-President Asset Management Corp. Jin Yuan President Securities Co., Ltd.	March 31,2024 878,051 $ 2,627,087 3,505,138 $	December 31,2023 797,207 $ 2,615,717 3,412,924 $	March 31,2023 794,598 $ 2,775,451 3,570,049 $

• 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 months ended March 31, 2024 and 2023 were $40,994 and $41,112, 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 19 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:

Princial

	Princial
Companyname	place of businesss		Shareholdingratio		Nature of relationship	Methods of measurement
Uni-President Asset Management Corp. Jin Yuan President Securities Co., Ltd.	Taipei city Xiamen	March 31,2024	December 31,2023	March 31,2023	Associate Associate	Equity method Equity method
		42.49% 49%	42.49% 49%	42.49% 49%

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

Balance sheet

follows: Balance sheet
Current assets Non-current assets Current liabilities Non-current liabilities Total net assets Share in associate net assets Goodwill and others Carrying amount of the associate		Uni-President Asset Management Corp.
		March 31, 2024 (Note)	December 31,2023	March 31, 2023 (Note)
	1,284,205 $ 828,557 419,538) ( 49,527) ( 1,643,697 $ 698,529 $ 179,522 878,051 $		1,132,776 $ 822,436 443,166) ( 58,583) ( 1,453,463 $ 617,685 $ 179,522 797,207 $	964,475 $ 807,998 286,920) ( 38,229) ( 1,447,324 $ 615,076 $ 179,522 794,598 $
					1,447,324 $
					615,076 $ 179,522
					794,598 $

~38~

Balance sheet

Balance sheet
Current assets Non-current assets Current liabilities Non-current liabilities Total net assets Share in associate net assets Carrying amount of the associate	Jin Yuan President Securities Co.,Ltd.
	March 31,2024	December 31,2023	March 31,2023
	6,476,850 $ 230,250 1,298,238) ( 47,461) ( 5,361,401 $ 2,627,087 $ 2,627,087 $	5,641,883 $ 243,503 487,824) ( 59,363) ( 5,338,199 $ 2,615,717 $ 2,615,717 $	6,931,191 $ 277,263 1,480,101) ( 64,167) ( 5,664,186 $ 2,775,451 $ 2,775,451 $

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) Revenue Loss for the period from continuing operations Total comprehensive income (loss)	Three months ended March 31,2024(Note) Three months ended March 31,2023(Note) 518,178 $ 317,336 $ 184,085 $ 103,784 $ 6,150 5,679 190,235 $ 109,463 $ Uni-President Asset Management Corp. Jin Yuan President Securities Co.,Ltd.
		518,178 $ 184,085 $ 6,150 190,235 $ Jin Yuan President	317,336 $ 103,784 $ 5,679 109,463 $ Securities Co.,Ltd.
		Three months ended March 31,2024	Three months ended March 31,2023 128,139 $ 16,727) ($ 16,727) ($
	80,359 $ 75,994) ($ 75,994) ($

Note: The financial statements for the three months ended March 31, 2024 and 2023, that were not reviewed by independent auditors, were prepared by the company.

12) Property and equipment

Property and equipment
January1			Three months ended March 31,2024			Total
		Land	Buildings	Equipment	Leasehold improvements
Cost Accumulated depreciation and impairment Total January 1 Additions Disposal Reclassifications Depreciation March 31		1,738,051 $ - 1,738,051 $ 1,738,051 $ - - - - 1,738,051 $	1,176,715 $ 571,899) ( 604,816 $ 604,816 $ 310 - 1,560 10,574) ( 596,112 $	564,286 $ 274,664) ( 289,622 $ 289,622 $ 17,868 32) ( 15,896 30,090) ( 293,264 $	34,050 $ 21,462) ( 12,588 $ 12,588 $ 1,143 - 1,600 1,298) ( 14,033 $	3,513,102 $ 868,025) ( 2,645,077 $ 2,645,077 $ 19,321 32) ( 19,056 41,962) ( 2,641,460 $

~39~

Three months ended March 31, 2024

			Three months ended March 31,2024	Three months ended March 31,2024	ch 31,2024
March 31		Land	Buildings Equipment Leasehold improvements 1,178,585 $ 574,316 $ 36,793 $ 582,473) ( 281,052) ( 22,760) ( 596,112 $ 293,264 $ 14,033 $ Buildings Equipment Leasehold improvements 1,140,158 $ 500,641 $ 47,035 $ 520,097) ( 206,465) ( 31,759) ( 620,061 $ 294,176 $ 15,276 $ 620,061 $ 294,176 $ 15,276 $ - 8,168 - - 74) ( - - 1) ( - 10,299) ( 25,196) ( 1,272) ( 609,762 $ 277,073 $ 14,004 $ Buildings Equipment Leasehold improvements 1,140,158 $ 488,856 $ 32,056 $ 530,396) ( 211,783) ( 18,052) ( 609,762 $ 277,073 $ 14,004 $ Three months ended March 31,2023		Leasehold improvements	Total
Cost Accumulated depreciation and impairment Total January1		1,738,051 $ - 1,738,051 $ Land 1,680,129 $ - 1,680,129 $ 1,680,129 $ - - - - 1,680,129 $ Land				3,527,745 $ 886,285) ( 2,641,460 $ Total 3,367,963 $ 758,321) ( 2,609,642 $ 2,609,642 $ 8,168 74) ( 1) ( 36,767) ( 2,580,968 $ Total
Cost Accumulated depreciation and impairment Total January 1 Additions Disposal Reclassifications Depreciation March 31 March 31			1,140,158 $ 520,097) ( 620,061 $ 620,061 $ - - - 10,299) ( 609,762 $ Buildings	500,641 $ 206,465) ( 294,176 $ 294,176 $ 8,168 74) ( 1) ( 25,196) ( 277,073 $ Equipment	47,035 $ 31,759) ( 15,276 $ 15,276 $ - - - 1,272) ( 14,004 $ Leasehold improvements
Cost Accumulated depreciation and impairment Total		1,680,129 $ - 1,680,129 $	1,140,158 $ 530,396) ( 609,762 $	488,856 $ 211,783) ( 277,073 $	32,056 $ 18,052) ( 14,004 $	3,341,199 $ 760,231) ( 2,580,968 $

• A. No interest was capitalized for property and equipment for the three months ended March 31, 2024 and 2023.

• B. The information on property and equipment pledged or restricted as of March 31, 2024, December 31, 2023 and March 31, 2023 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.

~40~

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

March 31,2024 December 31,2023 CarryingAmount CarryingAmount Buildings 154,738 $ 111,575 $ Transportation equipment (Business vehicles) 13,619 15,296 Office equipment (Photocopiers) 4,620 5,155 Total 172,977 $ 132,026 $ Three months ended March 31, 2024 Depreciation charge Buildings 16,485 $ Transportation equipment (Business vehicles) 1,677 Office equipment (Photocopiers) 730 Total 18,892 $		March 31,2023
		CarryingAmount
		126,621 $ 16,333 6,975 149,929 $ Three months ended March 31, 2023
		Depreciation charge
		19,926 $ 1,671 699 22,296 $

• C. For the three months ended March 31, 2024 and 2023, the additions to right-of-use assets amounted to $59,808 and $6,796, respectively.

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

Items affecting profit or loss	Three months ended March 31,2024 Three months ended March 31, 2023 329 $ 267 $ 1,276 1,267 21 16
Interest expense on lease liabilities Expense on short-term lease contracts Expense on variable lease payment

• E. For the three months ended March 31, 2024 and 2023, the Group’s total cash outflow for leases amounted to $21,822 and $25,554, 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 three months ended March 31, 2024 and 2023, the Group recognized rent income in the amount of $2,967 and $4,586, respectively, based on the operating lease agreement, which does not include variable lease payments.

~41~

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

2023 2024 2025 2026 2027 2028 Total		March 31,2024		December 31,2023		March 31,2023
		- $ 7,675 9,593 9,593 9,593 6,599 43,053 $		- $ 4,488 2,420 2,420 2,420 1,638 13,386 $		13,757 $ 4,303 - - - - 18,060 $

15) Investment property

Three months ended March 31, 2024

January1 Cost Accumulated depreciation and impairment Total January 1 Depreciation March 31 March 31 Cost Accumulated depreciation and impairment Total January1 Cost Accumulated depreciation and impairment Total January 1 Depreciation March 31 March 31 Cost Accumulated depreciation and impairment Total

Land Buildings Total 140,176 $ 72,533 $ 212,709 $ - 28,556) ( 28,556) ( 140,176 $ 43,977 $ 184,153 $ 140,176 $ 43,977 $ 184,153 $ - 355) ( 355) ( 140,176 $ 43,622 $ 183,798 $ Land Buildings Total 140,176 $ 72,533 $ 212,709 $ - 28,911) ( 28,911) ( 140,176 $ 43,622 $ 183,798 $ Land Buildings Total 198,099 $ 107,076 $ 305,175 $ - 38,873) ( 38,873) ( 198,099 $ 68,203 $ 266,302 $ 198,099 $ 68,203 $ 266,302 $ - 525) ( 525) ( 198,099 $ 67,678 $ 265,777 $ Land Buildings Total 198,099 $ 107,076 $ 305,175 $ - 39,398) ( 39,398) ( 198,099 $ 67,678 $ 265,777 $ Three months ended March 31, 2023

A. For the three months ended March 31, 2024 and 2023, rental income from the lease of the investment property were $2,466 and $4,006 respectively, and direct operating expenses arising from the investment property were $644 and $922, respectively.

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

~42~

16) Intangible assets

Intangible assets
January1	Three months ended March 31,2024
	Computer software			Goodwill
Cost Accumulated amortization and impairment Total January 1 Additions Reclassifications Amortization March 31 March 31	472,236 $ 257,496) ( 214,740 $ 214,740 $ 10,068 26,658 24,111) ( 227,355 $ Computer software			42,004 $ - 42,004 $ 42,004 $ - - - 42,004 $ Goodwill
Cost Accumulated amortization and impairment Total January1
		Computer sofware		Goodwill	Customer relationships and others Total 89,929 $ 493,966 $ 54,218) ( 247,460) ( 35,711 $ 246,506 $ 35,711 $ 246,506 $ - 5,752 - 14,997 5) ( 17,608) ( 35,706 $ 249,647 $ Customer relationships and others Total 89,929 $ 514,075 $ 54,223) ( 264,428) ( 35,706 $ 249,647 $
Cost Accumulated amortization and impairment Total January 1 Additions Reclassifications Amortization March 31 March 31	362,033 $ 193,242) ( 168,791 $ 168,791 $ 5,752 14,997 17,603) ( 171,937 $ Computer software			42,004 $ - 42,004 $ 42,004 $ - - - 42,004 $ Goodwill
Cost Accumulated amortization and impairment Total	382,142 $ 210,205) ( 171,937 $			42,004 $ - 42,004 $

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• A. No interest was capitalized for intangible assets for the three months ended March 31, 2024 and 2023.

• 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:

follows:
	Brokerage Segment
	2023
Growth rate	0.00%
Discount rate	12.68%

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

Other non-current assets
		March 31,2024	December 31,2023			March 31,2023
Operation guaranteed deposits	$	640,000	$	655,000	$	655,000
Clearing and settlement fund		316,745		308,649		299,980
Refundable deposits		322,847		225,738		185,779
Prepaid pension expenses		4,016		4,013		81,975
Prepayment for equipment		45,806		50,757		65,619
Overdue receivables		2,924		1,965		7,452
Others		2,518		2,522		2,587
Subtotal		1,334,856		1,248,644		1,298,392
Less: Allowance for
uncollectible accounts	(	2,924)	(	1,965)	(	7,452)
Total	$	1,331,932	$	1,246,679	$	1,290,940
Short-term loans
		March 31, 2024	December31,2023			March31,2023
Unsecured loans	$	11,104,400	$	6,944,759	$	1,766,100
Secured loans		1,390,000		-		185,000
Total	$	12,494,400	$	6,944,759	$	1,951,100

18) Short-term loans

As of March 31, 2024, December 31, 2023 and March 31, 2023, the interest rates of short-term

loans, including foreign interest rates were 1.650%~5.870%, 1.650%~5.910%, and 1.650%~5.360%, respectively.

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19) Commercial papers payable

Commercial papers payable
			March31,2024	December31,2023			March31,2023
Face value		$	26,880,000	$	21,150,000	$	13,700,000
Less: discount on commercial papers	payable	(	26,067)	(	19,066)	(	9,237)
Total		$	26,853,933	$	21,130,934	$	13,690,763

As of March 31, 2024, December 31, 2023 and March 31, 2023, the interest rates of commercial papers, including foreign interest rates were 1.400%~1.800%, 1.460%~1.580%, and 1.240%~1.430%, respectively.

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

			March 31,2024		December 31,2023	December 31,2023			March 31,2023
Covering bonds	$		99,491		$	-		$	-
Liabilities on sale of borrowed securities - hedged			1,153,203			490,037			483,468
Valuation adjustment on liabilities on sale of borrowed securities - hedged	(		28,020)			27,380	(		193)
Liabilities on sale of borrowed securities - non-hedged			5,401,300			5,270,361			6,748,240
Valuation adjustment on liabilities on sale
of borrowed securities - non-hedged			601,109			389,037	(		52,733)
Subtotal			7,127,592			6,176,815			7,178,782
Issuance of call (put) warrants			15,708,924			14,926,912			8,527,311
Loss (gain) on price fluctuation	(		1,505,532)	(		2,567,109)	(		371,140)
Market value (A)			14,203,392			12,359,803			8,156,171
Warrants redeemed	(		14,004,555)	(		13,268,465)	(		7,688,827)
Loss (gain) on price fluctuation			1,554,404			1,944,352			60,660
Market value (B)	(		12,450,151)	(		11,324,113)	(		7,628,167)
Warrants - net (A+B)			1,753,241			1,035,690			528,004
Options sold - TAIFEX			17,250			9,671			16,938
Outstanding Liability for Issuance of ETNs			401,216			492,775			887,099
Valuation adjustment on outstanding
Liability for Issuance of ETNs			99,232			59,115	(		47,009)
Subtotal			500,448			551,890			840,090
Derivative financial liabilities - OTC			3,111,906			2,697,246			883,466
Total		$	12,609,928	$		10,471,312		$	9,447,280

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 issuer has the option to settle either by cash or stock delivery.

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21) Bonds sold under repurchase agreements

Government bonds Corporate bonds Bank debentures International bonds Foreign bonds Total	March 31,2024 957,588 $ 6,592,455 100,000 866,807 12,484,842 21,001,692 $	December 31,2023 March 31,2023 1,673,927 $ 976,097 $ 3,738,850 1,194,401 100,000 100,000 664,516 364,137 12,963,213 7,042,930 19,140,506 $ 9,677,565 $

The above bonds sold under repurchase agreements as of March 31, 2024, December 31, 2023 and March 31, 2023 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 $21,181,346, $19,322,093 and $9,762,353, respectively, and the annual interest rates in every currency were shown as follows:

currency were shown as follows:
Accounts payable Other payables Other financial liabilities-current Currency March 31, 2024 December 31, 2023 NTD 0.970%~1.525% 0.970%~1.410% Foreign currencies (Note) 2.500%~5.750% 2.200%~5.800% Note: Foreign currencies include AUD, EUR, USD, GBP and NZD. March 31, 2024 December 31,2023 Settlement accounts payable - brokered trading 23,902,002 $ 14,683,802 $ Settlement proceeds 547,119 838,340 Settlement accounts payable - operating 5,292,524 244,238 Settlement accounts payable - foreign bonds 4,230,557 977,154 Spot exchange payable, foreign currencies - 37,386 Others 516,122 310,495 Total 34,488,324 $ 17,091,415 $ March 31,2024 December 31, 2023 Salary and bonus payable 1,180,805 $ 1,397,414 $ Employees' and directors' remuneration payable 223,757 143,088 Others 828,890 719,080 Total 2,233,452 $ 2,259,582 $ March 31,2024 December 31,2023 Equity-linked notes (ELN) - Options - $ - $ Principal guaranteed notes (PGN) - fixed income 8,952,901 5,224,019 Total 8,952,901 $ 5,224,019 $		March 31,2023
		0.760%~1.300% 1.800%~5.150% March 31,2023
		11,452,381 $ 542,782 377,678 5,596,352 158,274 310,411
		18,437,878 $
		March 31,2023
		699,840 $ 75,900 586,920
		1,362,660 $
		March 31,2023 2,000 $ 3,785,486 3,787,486 $

22) Accounts payable

23) Other payables

24) Other financial liabilities - current

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.

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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

Guarantee deposits received Net defined benefit obligation Total	March 31,2024 4,270 $ 51,769 56,039 $	December 31,2023 March 31,2023 4,188 $ 7,119 $ 60,301 710 64,489 $ 7,829 $

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 March 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.

• (B) Under the defined benefit pension plan, the Group recognized the pension costs for the three months ended March 31, 2024 and 2023 in the statement of comprehensive income in the amounts of $564 and $55, respectively.

• (C) Expected contributions to the defined benefit pension plans of the Group for the year ending December 31, 2025 amount to $35,111.

• 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

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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 months ended March 31, 2024 and 2023 were $21,490 and $19,596, 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 $3,578 and $1,811, respectively, for the three months ended March 31, 2024 and 2023.

27) Equity

• A. Common stock

As of March 31, 2024, the Company’s authorized capital was $15,000,000 with a par value of $10 (in dollars) per share. As of March 31, 2024, December 31, 2023 and March 31, 2023, the common stocks issued and the outstanding common stocks were all 1,455,831 thousand shares.

• B. Capital reserve

March 31, 2024 December 31, 2023 March 31, 2023	Share premium		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.

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

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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 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 2023 as resolved by the Board of Directors on March 4, 2024; the appropriation of 2022 earnings was resolved by the shareholders on May 31, 2023. Details are as follows:

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Provision of legal reserve Provision of special reserve Cash dividends	Amount Dividends per share (in dollars) Amount Dividends per share (in dollars) 274,761 $ 81,278 $ 549,523 162,557 1,921,697 1.32 $ 567,774 0.39 $ 2,745,981 $ 811,609 $ For the year ended December 31,2023 For the year ended December 31,2022

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 March 31,2024		Three months ended March 31,2023
		615,214 $ 204,104 179,615 69,762 1,068,695 $		354,478 $ 138,533 169,887 31,082 693,980 $

30) Revenues from underwriting business

Revenues from underwriting business
Revenues from underwriting securities on a firm commitment basis Others Total	Three months ended March 31, 2024	Three months ended March 31,2023
	12,397 $ 19,569 31,966 $	5,806 $ 8,667 14,473 $

(Blank below)

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

Dealers: -TAIEX -OTC -Overseas trading Subtotal Underwriters: -TAIEX -OTC Subtotal Hedging: -TAIEX -OTC -Overseas trading Subtotal Total		Three months ended March 31,2024		Three months ended March 31,2023
		1,032,007 $ 398,973 296,310 1,727,290 5,921 34,501 40,422 617,968 212,796 9,939 840,703 2,608,415 $	345,107 $ 116,694 67,394 529,195 2,699 77,510 80,209 129,812 75,074 2,722) ( 202,164 811,568 $

32) Interest income

Interest income
Interest income from margin loans Interest income from bonds Others Total		Three months ended March 31,2024		Three months ended March 31,2023
		224,626 $ 214,107 63,228 501,961 $		144,698 $ 114,393 22,602 281,693 $

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 March 31,2024 765,290 $ 31,912 807,865 1,605,067 $	Three months ended March 31, 2023
			400,962 $ 56,245 433,049 890,256 $

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

	Three months ended	Three months ended	Three months ended	Three months ended
		March 31,2024		March 31,2023
Gain (loss) from securities borrowing transactions	($	297,665)	($	46,383)
Gain (loss) from covering	(	28,437)	(	98,295)
Total	($	326,102)	($	144,678)

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
Net gain (loss) from issuance of call (put) warrants Net gain (loss) from derivatives Valuation gain (loss) from securities borrowing transactions Valuation gain (loss) from covering Total Net gain (loss) on changes in fair value of call (put) warrant liabilities and redemption Net gain (loss) on exercise of call (put) warrants before maturity Expenses arising out of issuance of call (put) warrants Total 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 March 31,2024	Three months ended March 31,2023
	186,404) ($ 29,732 156,672) ($ Three months ended March 31,2024	859,127) ($ 47,858) ( 906,985) ($ Three months ended March 31,2023
	238,712) ($ 40,436) ( 192,308) ( 471,456) ($ Three months ended March 31,2024	2,976 $ 11,245) ( 77,455) ( 85,724) ($ Three months ended March 31,2023
	907,464) ($ 13,984 329,653) ( 87,470 175,524) ( 38,591) ( 1,349,778) ($	377,132 $ 5,316 84,268 14,708 222,441) ( 21,367) ( 237,616 $

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

37) Net gain (loss) from derivatives

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38) Expected credit impairment loss and reversal of impairment gain

39)	Other operating income Impairment (loss) and reversal of impairment gain Recovery of bad debts Total Income from securities lending Net currency exchange gain (loss) Handling fee revenues from funds Others Total	Three months ended March 31, 2024	Three months ended March 31,2023 2,926) ($ 47 (2,879) $ Three months ended March 31,2023	Three months ended March 31,2023 2,926) ($ 47 (2,879) $ Three months ended March 31,2023
		22,031 $ 178 22,209 $ Three months ended March 31,2024
		77,567 $ 128,633 23,577 61,520 291,297 $		93,221 $ 522 18,507 44,028 156,278 $

	Income from securities lending Net currency exchange gain (loss) Handling fee revenues from funds Others Total	77,567 $ 128,633 23,577 61,520 291,297 $		93,221 $ 522 18,507 44,028 156,278 $
40) 41) 42)	Handling charges Financial costs Employee benefits expense Brokerage handling fee expense Dealer handling fee expense Refinancing processing fee expense Total Interest expense from repurchase agreements Loans interest expense Other interest expense Total Salaries Labor and health insurance Pension Other employee benefits Total	Three months ended March 31, 2024		Three months ended March 31,2023
		121,910 $ 48,935 101 170,946 $ Three months ended March 31,2024		84,260 $ 29,771 491 114,522 $ Three months ended March 31,2023
		184,241 $ 142,101 32,708 359,050 $ Three months ended March 31,2024		80,993 $ 48,786 26,809 156,588 $ Three months ended March 31,2023
		1,088,553 $ 55,132 25,632 37,060 1,206,377 $		581,193 $ 47,584 21,462 32,598 682,837 $

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• 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 ended March 31, 2024 and 2023, employees’ compensation was accrued at $37,823 and $11,525, respectively; directors’ remuneration was accrued at $37,823 and $11,525, respectively. The aforementioned amounts were recognized in salary expenses.

• C. For the three months ended March 31, 2024, 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 2023 as resolved by the Board of Directors was in agreement with the estimates in the 2023 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 March 31,2024	Three months ended March 31,2023
		61,209 $ 24,120 85,329 $	59,588 $ 17,645 77,233 $

44) Other operating expenses

Other operating expenses
Taxes Security lending expenses Computer information expenses TDCC service fee Postage Others Total		Three months ended March 31,2024		Three months ended March 31,2023
		256,900 $ 45,395 55,418 30,206 23,737 113,493 525,149 $		149,951 $ 62,279 48,875 18,409 22,568 107,118 409,200 $

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45) Other gains and losses

Other gains and losses
	Three months ended		Three months ended
		March 31, 2024		March 31, 2023
Financial income	$	151,790	$	121,407
Net gain (loss) on disposal of investments		10,558	(	1,308)
Net gain (loss) on valuation of
non-operating financial instruments		8,513		2,300
Net currency exchange gain (loss)		6,310	(	1,258)
Other non-operating revenues		33,307		37,618
Total	$	210,478	$	158,759

46) Income tax

• A. Income tax expense

Components of income tax expense:

tax me tax expense mponents of income tax expense:
Current tax: Current tax on profits for the periods Prior year income tax underestimation (overestimation) Total current tax Deferred taxes: Temporary differences Total deferred taxes Income tax expense (gain)		Three months ended March 31,2024 74,570 $ 2,117 76,687 39,051 39,051 115,738 $	Three months ended March 31, 2023
			107,890 $ - 107,890 5,265 5,265 113,155 $

B. As of March 31, 2024, the Company’s income tax returns have been approved by the Tax Authority until 2019. The income tax returns through 2021 of all subsidiaries have been assessed, except for President Futures approval until 2019 and President Venture Capital approval until 2022.

(Blank below)

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47) Earnings per share

==> picture [484 x 336] intentionally omitted <==

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

Three months ended March 31, 2024
Weighted-average Earnings per
Amount outstanding common share
after tax shares (In thousands) (In dollars)
Basic earnings per share
Net income attributable to common
shareholders $ 1,725,653 1,455,831 $ 1.19
Dilutive effect of common stock equivalents
Employee bonus - 1,537
$ 1,725,653 1,457,368 $ 1.18
Three months ended March 31, 2023
Weighted-average Earnings per
Amount outstanding common share
after tax shares (In thousands) (In dollars)
Basic earnings per share
Net income attributable to common
shareholders $ 457,532 1,455,831 $ 0.31
Dilutive effect of common stock equivalents
Employee bonus - 716
$ 457,532 1,456,547 $ 0.31
----- End of picture text -----

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 Q-WARE Systems & Services Corp. Other related party Tung Ho Development Co., Ltd. Other related party Fund managed by Uni-President Asset Security investment trust fund raised by the Management Corp. Uni-President Assets Management Corp.

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2) Significant related party transactions and balances

A. Accounts receivable

A.	Accounts receivable
B. C. D.	Prepayments Other receivables Guarantee deposit received Entity having significant influence on the company: Uni-President Enterprises Corp. Associate: Uni-President Assets Management Corp. Other related party: ScinoPharm Taiwan, Ltd. Ton Yi Industrial Corp. President Chain Store Corp. (PCSC) Others Total 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	March 31,2024 332 $ 10 323 100 434 108 1,307 $ March 31,2024		December 31,2023 332 $ - 322 - 434 103 1,191 $ December 31,2023	March 31,2023
					350 $ 40 336 100 406 73 1,305 $ March 31,2023 8,531 $ 600 308 8 32 9,479 $ March 31,2023 - $ 13 13 $ March 31,2023
		5,165 $ 600 157 121 18 6,061 $ March 31,2024 129 $ 9 138 $ March 31,2024		4,682 $ 600 157 121 18 5,578 $ December 31,2023 4 $ - 4 $ December 31,2023
			129 $ 9 138 $ March 31,2024
		1,435 $ - 1,435 $		1,435 $ - 1,435 $	1,044 $ 1,418 2,462 $

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E. Other payables

Other payables
Other related party: President Tokyo Co., Ltd. Presco Netmarketing Co., Ltd. Total		March 31,2024		December 31,2023
		- $ 80 80 $		12 $ 125 137 $

－ 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) Acquisition of right-of-use assets

Other related party: President Tokyo Co., Ltd.	Three months ended March 31,2024 152 $	Three months ended March 31,2023 1,427 $

• (C) Lease liabilities

• a. Lease liabilities - current

se liabilities ease 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		March 31,2024	December 31,2023	March 31,2023
		6,992 $ 748 7,740 $ March 31, 2024	7,428 $ 747 8,175 $ December 31,2023	7,624 $ 743
				8,367 $
				March 31,2023
		8,694 $ 1,258 9,952 $	10,152 $ 1,445 11,597 $	11,771 $ 2,006 13,777 $

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 March 31,2024	Three months ended March 31, 2023
		43 $ 3 46 $	36 $ 5 41 $

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G. Handling fee revenue

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 March 31,2024		Three months ended March 31,2023
		56,201 $ 533 56,734 $		17,233 $ 217 17,450 $

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 March 31,2024		Three months ended March 31,2023
		7,057 $		3,413 $

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

I. Other operating revenue - Other

J.	Other operating revenue-handling fee revenues from underwriting funds Three months ended March 31,2024 Associates: Uni-President Assets Management Corp. 1,170 $ Three months ended March 31,2024 Associates: Uni-President Assets Management Corp. 23,222 $		Three months ended March 31,2024		Three months ended March 31,2023 720 $ Three months ended March 31,2023
	Associates: Uni-President Assets Management Corp.
			23,222 $		17,955 $

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

• K. Rent income

Associates: Uni-President Assets Management Corp. Other related party: President Tokyo Co., Ltd. Total	Period 2016.01.01~2028.08.31 2019.04.01~2023.08.31	Deposit 1,435 $ -		Three months ended March 31,2024		Three months ended March 31,2023
				2,313 $ - 2,313 $		1,714 $ 2,235
						3,949 $

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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. Stock custodian income

tock custodian income
Entity having significant influence on the company: Uni-President Enterprises Corp. Associate: Uni-President Assets Management Corp. Other related party: ScinoPharm Taiwan, Ltd. Ton Yi Industrial Corp. President Chain Store Corp. (PCSC) Others Total	Three months ended March 31,2024 996 $ 40 488 309 651 184 2,668 $	Three months ended March 31,2023
		1,050 $ 40 510 308 609 166 2,683 $

Terms of stock custodian income mentioned above are similar to third parties. M.Other operating expenses - Other

Other related party: President Tokyo Co., Ltd. Presco Netmarketing Co., Ltd. Total		Three months ended March 31,2024 3 $ 256 259 $	Three months ended March 31, 2023
			13 $ 86 99 $

N. Purchases of trading securities - dealer

urchases of trading securities-dealer Other related party: President Tokyo Co., Ltd. Presco Netmarketing Co., Ltd. Total	$ $		3 $ 256 259 $	13 86 99
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: President Chain Store Corp. Total			March 31,2024
	Ending Shares (In thousands)		EndingBalance Gain(loss) 7,595 $ 4) ($ 85,947 8,668 2,399 - 95,941 $ 8,664 $
	98 - 9

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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.: Fund managed by Uni-President Asset Management Corp. Other related party: President Chain Store Corp. Others Total 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: President Chain Store Corp. Others Total	Ending Shares (In thousands) 136 - 9 - Ending Shares (In thousands)		EndingBalance Gain(loss) 10,149 $ 1,826 $ 52,587 7,376 2,426 31) ( - 11 65,162 $ 9,182 $ EndingBalance Gain (loss) 30,773 $ 378 $ 488,834 5,902) ( 5,121 - - 11 524,728 $ 5,513) ($ December 31,2023 March 31, 2023
	428 - 19 -

O. Compensation of key management personnel

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

Salary and short-term employee benefits Retirement benefits Other long-term employee benefits Termination benefits Share-based payment Total		Three months ended March 31,2024		Three months ended March 31,2023
		68,206 $ 484 - - - 68,690 $		20,546 $ 405 - - - 20,951 $

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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 (stated as other non-current asset) - 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:	March 31,2024 6,591,000 $ 898,100 10,315,426 935,362 100,000 3,105,400 258,393 500,000 50,000 1,084,349 640,000 2,000	December 31,2023 3,735,000 $ 1,600,200 11,159,717 725,479 100,000 2,712,153 91,001 400,000 50,000 1,085,689 655,000 2,000	March 31,2023 1,200,000 $ 898,300 4,477,379 388,689 100,000 2,945,600 733 400,000 50,000 1,089,709 655,000 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.

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.

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• 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.

• (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.

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  - 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 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

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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.

• (C) Fund liquidity risk

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

     - Based on the two major risk indicators of climate risk, the physical risk and the transition risk, the potential climate risk on investment position is estimated by different scenario analyses. The Company regularly discloses implementation of climate risk management annually that 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 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:

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• (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.

• (b) Corporate bonds

The corporate bonds held by the Group are mainly underlying investment with good credit rating and those with rating above.

(c) Convertible corporate bond

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).

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• (C) Financial assets at fair value through other comprehensive income - current 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) 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.

• (G) 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.

• (H) 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.

• (I) 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.

• (J) Receivables

• Receivables are the credit rights arising from the securities business including settlement

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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 OTC 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.

• (K) 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.

• (L) 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.

• (M) 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.

• 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.

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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.

• 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.

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• (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 March 31, 2024, December 31, 2023 and March 31, 2023, 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:

At January 1 Provision (reversal of provision) for impairment At March 31			Three months ended	Three months ended	Three months ended	March 31,2024	March 31,2024	Total
		Marginal receivable	Accounts receivable		Other receivable		Other non-current assets-overdue receivables
	46,779 $ 22,651) ( 24,128 $		641 $ 340) ( 301 $		275 $ - 275 $		1,965 $ 960 2,925 $	49,660 $ 22,031) ( 27,629 $

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Year ended December 31, 2023

At January 1 Provision (reversal of provision) for impairment Derecognized At December 31 At January 1 Provision (reversal of provision) for impairment At March 31		Marginal receivable	Accounts receivable Other receivable 659 $ 355 $ 18) ( 80) ( - - 641 $ 275 $ Accounts receivable Other receivables 659 $ 355 $ 100) ( 30) ( 559 $ 325 $ Three months ended	Other receivable	Other non-current assets-overdue receivables 8,224 $ 450) ( 5,809) ( 1,965 $ Other non-current assets-overdue receivables March 31,2023	Total	Total
		28,315 $ 18,464 - 46,779 $ Marginal receivable 28,315 $ 3,828 32,143 $				37,553 $ 17,916 5,809) ( 49,660 $ Total
			659 $ 100) ( 559 $	355 $ 30) ( 325 $	8,224 $ 772) ( 7,452 $		37,553 $ 2,926 40,479 $

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.

• (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

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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.

(Blank below)

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

March 31, 2024

						March 31,2024
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 - $ - - - - - - 11,397 - - 87,218 - - 105,016 203,631 $	Total
		4,430,000 $ 650,000 7,227,083 5,319,125 - 580,775 837,472 - 21,502,913 34,297,961 783,036 29,380 - - 75,657,745 $		8,064,400 $ 26,230,000 - - 21,181,346 - - 1,463,172 - 190,363 26,886 302,460 7,168,659 16,668 64,643,954 $		- $ - - 63,720 - - - 547,254 - - - 1,901,612 1,784,242 45,403 4,342,231 $			12,494,400 $ 26,880,000 7,227,083 5,382,845 21,181,346 580,775 837,472 2,021,823 21,502,913 34,488,324 897,140 2,233,452 8,952,901 167,087
									144,847,561 $

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Short-term loans Commercial papers payable 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 Financial liabilities at fair value through profit or loss-current					December 31,2023	December 31,2023
		Immediately		Less than 3 months		3-12 months		1-5years - $ - - - - - - 29,747 - - 86,888 - - 68,894 185,529 $	Total
		1,160,000 $ - 6,176,815 4,263,589 - 921,093 1,163,504 - 20,497,894 16,960,308 514,753 7,845 - - 51,665,801 $		5,784,759 $ 21,150,000 - - 19,322,093 - - 1,342,474 - 131,107 12,739 370,954 4,442,218 19,472 52,575,816 $		- $ - - 30,908 - - - 259,786 - - - 1,880,783 781,801 39,070 2,992,348 $			6,944,759 $ 21,150,000 6,176,815 4,294,497 19,322,093 921,093 1,163,504 1,632,007 20,497,894 17,091,415 614,380 2,259,582 5,224,019 127,436
									107,419,494 $

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March 31, 2023

					March 31,2023
Short-term loans Commercial papers payable 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 Financial liabilities at fair value through profit or loss-current		Immediately		Less than 3 months 1,951,100 $ 13,700,000 - - 9,762,353 - - 1,035,685 - 80,585 9,172 247,996 3,297,878 15,856 30,100,625 $	3-12 months - $ - - 281 - - - 745,262 - - - 1,105,495 489,608 52,163 2,392,809 $		1-5years - $ - - - - - - 41,653 - - 87,739 - - 73,439 202,831 $	Total
		- $ - 7,178,782 2,268,217 - 630,014 712,176 - 20,446,473 18,357,293 455,720 9,169 - - 50,057,844 $						1,951,100 $ 13,700,000 7,178,782 2,268,498 9,762,353 630,014 712,176 1,822,600 20,446,473 18,437,878 552,631 1,362,660 3,787,486 141,458
								82,754,109 $

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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
Three months ended March 31, 2024 March 31, 2024 VaR Maximum VaR Average VaR Minimum	Amount 167,643 $ 287,435 172,440 43,520	Three months ended March 31,2023 Amount March 31, 2023 122,535 $ VaR Maximum 143,579 VaR Average 76,218 VaR Minimum 33,479

Statistical table for VaR of various risk indicators of transactions

Three months ended

Three months ended
March 31,2024	Foreign exchange 9,716 $ 29,753 14,877 7,894 Foreign exchange 10,921 $ 47,965 11,164 2,100	Interest 4,164 $ 28,898 11,691 4,164 Interest 81,522 $ 81,522 51,224 25,359	Share ownership
March 31, 2024 VaR Maximum VaR Average VaR Minimum Three months ended March 31,2023			166,008 $ 285,493 172,934 38,055 Share ownership
March 31, 2023 VaR Maximum VaR Average VaR Minimum			87,575 $ 114,445 51,554 28,108

• 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 March 31, 2024, December 31, 2023 and March 31, 2023 ：

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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 the 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				March 31,2024
	USD 908,594 $ 10,216,950 1,665,067 - 9,804,329 1,654,400 223,720 9,328,900 12,194,710	EUR 106,728 $ 1,613,470 - - 883,629 - - 1,640,037 628,125	AUD 53,831 $ 1,025,254 1,370,202 - 603,917 - 33 2,223,770 598,593	RMB 29,427 $ 49,183 - 2,627,087 2,861 - 541 23,569 56,858	HKD 877,883 $ 74,119 - - 97,102 - - - 102,992	Others 74,674 $ 748,996 - - 335,070 - 930 135,373 167,264	Total
							2,051,137 $ 13,727,972 3,035,269 2,627,087 11,726,908 1,654,400 225,224 13,351,649 13,748,542

Note: As of March 31, 2024, foreign exchange rates of the above currencies to TWD were 1 USD = 32.000 TWD; 1 EUR= 34.460 TWD; 1 AUD= 20.820 TWD; 1 RMB= 4.408 TWD; and 1 HKD= 4.089 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 the 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			December 31,2023	December 31,2023	December 31,2023
	USD 688,758 $ 10,472,325 1,307,681 - 7,462,170 1,034,759 63,591 9,381,587 9,432,548	EUR 5,394 $ 2,117,378 - - 38,366 - 565 1,880,550 29,268	AUD 1,562 $ 882,164 1,375,468 - 11,620 - 91 2,122,450 28,693	RMB 28,200 $ 47,581 - 2,615,717 3,086 - 709 34,594 59,619	HKD 856,354 $ 34,235 - - 90,733 - 4 - 102,503	Others 76,679 $ 694,094 - - 100,251 - 10,879 208,549 97,809	Total
							1,656,947 $ 14,247,777 2,683,149 2,615,717 7,706,226 1,034,759 75,839 13,627,730 9,750,440

Note: As of December 31, 2023, foreign exchange rates of the above currencies to TWD were 1 USD =30.705 TWD; 1 EUR= 33.980 TWD; 1 AUD= 20.980 TWD; 1 RMB= 4.327 TWD; and 1 HKD= 3.929 TWD, respectively.

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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	USD 1,586,743 $ 6,523,610 1,470,806 - 9,821,144 1,766,100 175,343 4,661,578 12,946,278	EUR 4,175 $ 705,649 - - 430,290 - 1,029 474,411 380,729	AUD 2,065 $ 780,018 1,372,206 - 961,525 - 282 1,885,306 879,318	RMB 107,017 $ 161,415 - 2,775,451 4,754 - 940 82,458 209,021 March 31,2023	HKD Others 1,031,376 $ 38,080 $ 127,446 746,147 - - - - 159,998 201,314 - - 8 3,963 - 303,314 166,752 180,819	Total
						2,769,456 $ 9,044,285 2,843,012 2,775,451 11,579,025 1,766,100 181,565 7,407,067 14,762,917

Note: As of March 31, 2023, foreign exchange rates of the above currencies to TWD were 1 USD = 30.450 TWD; 1 EUR= 33.150 TWD; 1 AUD= 20.330 TWD; 1 RMB= 4.431 TWD; and 1 HKD= 3.879 TWD, respectively.

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     - D. The total exchange gain (loss), including realized and unrealized, arising from significant foreign exchange variation on the monetary items held by the Group for the three months ended March 31, 2024 and 2023, amounted to $134,943 and ($736), 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 March 31, 2024 Investment property December 31, 2023 Investment property March 31, 2023 Investment property	Total 532,752 $ 515,813 698,655	Quoted prices of the same assets in active markets (level 1) Other significant observable inputs (level 2) - $ 532,752 $ - 515,813 - 698,655	Significant non-observable inputs(level 3)
			- $ - -

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 three months ended March 31, 2024 and 2023, 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 three months ended March 31, 2024 and 2023, 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 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		March31,2024	March31,2024
	Total 26,574,917 $ 29,276,327 4,478,191 519,593 3,035,269 74,557 49,561 1,214,857 7,127,592 4,990,468 5,482,336	Level 1 26,327,426 $ 8,635,892 4,478,191 519,593 3,035,269 - - - 7,127,592 4,962,834 2,370,430	Level 2 103,701 $ 20,640,435 - - - - 49,561 - - 27,634 3,111,906	Level3
				143,790 $ - - - - 74,557 - 1,214,857 - - -

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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	31,2023
	Total 16,227,361 $ 29,548,975 3,085,328 395,531 2,683,149 10,004 49,776 58,500 1,168,288 6,176,815 4,837,333 4,294,497	Level 1 15,988,641 $ 7,543,011 3,085,328 395,531 2,683,149 - - - - 6,176,815 4,836,504 1,597,251	Level 2 98,555 $ 22,005,964 - - - - 49,776 - - - 829 2,697,246	Level3
				140,165 $ - - - - 10,004 - 58,500 1,168,288 - - -

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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		March31,2023	March31,2023
	Total 10,970,047 $ 15,094,926 3,083,215 355,511 2,843,012 14,802 49,736 58,500 1,231,843 7,178,782 5,610,600 2,268,498	Level 1 10,750,037 $ 4,966,007 3,083,215 355,511 2,843,012 - - - - 7,178,782 5,606,235 1,385,032	Level 2 76,728 $ 10,128,919 - - - - 49,736 - - - 4,365 883,466	Level3
				143,282 $ - - - - 14,802 - 58,500 1,231,843 - - -

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

		Three months ended March 31,2024	Three months ended March 31,2024	Three months ended March 31,2024	Three months ended March 31,2024
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		March 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
	140,165 $ 10,004 58,500 1,168,288	5,625 $ - $ - $ 1,947) ( - - 8,000 - - - 46,569 - Year ended December 31,2023			- $ - - -	2,000) ($ - - -	- $ - - -	143,790 $ 8,057 66,500 1,214,857
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
	140,494 $ 16,604 32,900 1,179,907	30,455) ($ - $ 42,351 $ 4,426) ( - - 10,600 - 15,000 - (11,619) - Three months ended March 31,2023			- $ - - -	7,500) ($ (2,174) - -	4,725) ($ - - -	140,165 $ 10,004 58,500 1,168,288
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		March 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
	140,494 $ 16,604 32,900 1,179,907	2,788 $ 1,802) ( 10,600 -	- $ - - 51,936	- $ - 15,000 -	- $ - - -	- $ - - -	- $ - - -	143,282 $ 14,802 58,500 1,231,843

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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:

March 31,2024	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 Unlisted stocks Unlisted stocks	8,057 66,500 1,214,857 143,790 $	Net asset value Net asset value 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	1.87~5.99 22.70 25% Not applicable Not applicable Not applicable 23.92~23.94 2.30 25%	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 The higher the multiple, the higher the fair value

(Blank below)

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December 31,2023	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 March 31,2023 Unlisted stocks Unlisted stocks	10,004 58,500 Fair value 140,165 $ 1,168,288	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	1.78~7.34 32.76 25% Not applicable Not applicable Not applicable 22.62~24.52 2.48 25% Range (weighted average)	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 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	14,802 58,500 143,282 $ 1,231,843	Net asset value Net asset value Market approach Market approach	Price to book 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	1.42~5.19 25% Not applicable Not applicable Not applicable 20.3~23.14 3.12~3.44 33%	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 The higher the multiple, the higher the fair value

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(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 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%:

March 31,2024	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 31,2023	1,438 $ 1,438) ($ Not applicable Not applicable Not applicable Not applicable - - Recognised inprofit or loss		- $ - $ - - - - 12,149 12,149) ( 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	1,402 $ Not applicable Not applicable -	1,402) ($ Not applicable Not applicable -	- $ - - 11,683	- $ - - 11,683) (

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

Recognised in other
Recognised in profit or loss comprehensive income
Favourable Unfavourable Favourable Unfavourable
March 31, 2023 change change change change
----- End of picture text -----

Financial assets at fair value through
profit or loss - current
Unlisted stocks	$	1,433	($	1,433)	$	-	$	-
Financial assets at fair value through
profit or loss - non-current
Venture capital shares	Not	applicable	Not	applicable		-		-
Others	Not	applicable	Not	applicable		-		-
Financial assets at fair value through
other comprehensive income
- non-current
Unlisted stocks		-		-		12,318	(	12,318)

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 March 31, 2024, December 31, 2023 and March 31, 2023, the capital adequacy ratios were 294%, 299% and 320%, 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.

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8) 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”.

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

Article Calculation formula March 31, 2024 March 31, 2023 Standard Enforcement
Calculation Ratio Calculation Ratio
Stockholders’ equity 2,059,817 2,320,587 Met the
17 3.56 80.67 ≧ 1
(Total liability－futures trader’s equity) 578,102 28,766 requirement
Current assets 5,449,752 6,169,881 Met the
17 9.43 214.49 ≧ 1
Current liabilities 578,102 28,766 requirement
Stockholders’ equity 2,059,817 2,320,587 ≧ 60% Met the
22 514.95% 580.15%
Minimum paid-in capital 400,000 400,000 ≧ 40% requirement
Adjusted net capital 913,827 1,629,728 ≧ 20%
Met the
22 Total amount of customer margins required 59.04% 133.17%
1,547,720 1,223,838 ≧ 15% requirement
for the open positions of futures traders
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9) 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		March 31,2024	March 31,2024		March 31,2023	March 31,2023	Standard	Enforcement
				Calculation	Ratio		Calculation	Ratio
17		Stockholders’ equity (Total liability－futures trader’s equity)		2,903,837 272,943	10.64		2,716,942 225,048	12.07	≧1	Met the requirement
17		Current assets Current liabilities		27,230,556 25,678,464	1.06		27,143,757 25,797,818	1.05	≧1	Met the requirement
22		Stockholders’ equity Minimumpaid-in capital		2,903,837 645,000	450.21%		2,716,942 645,000	421.23%	≧60% ≧40%	Met the requirement
22		Adjusted net capital Total amount of customer margins required for the open positions of futures traders		2,535,476 5,081,296	49.90%		2,378,223 4,036,105	58.92%	≧20% ≧15%	Met the requirement

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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)

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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

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Details of transactions (Three months ended March 31, 2024)
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 3,940,644 Note 4 2.18%
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 3,366 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 payables 2,652 Note 4 0.00%
0 President Securities Corp. President Futures Corp. 1 Equity for each customer in the account 8,126 Note 4 0.00%
0 President Securities Corp. President Futures Corp. 1 Future commission revenue 7,989 Note 4 0.20%
0 President Securities Corp. President Futures Corp. 1 Clearing charges 6,239 Note 4 0.16%
0 President Securities Corp. President Capital Management Corp. 1 Expense from investment advisory 12,600 Note 4 0.32%
0 President Securities Corp. President Insurance Agency Corp. 1 Other receivables 41,622 Note 4 0.02%
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Note 1 ： The numbers in the No. column are represented as follows:

1. The number zero is for parent company.

2. According to the sequential order, subsidiaries are numbered from 1.

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

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between two subsidiaries, if one of the subsidiaries has disclosed the transaction, then the other is not required to disclose the transaction.)

1. Parent company to subsidiaries.

2. Subsidiaries to parent company.

3. 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 March 31, 2024 Original	investment	Shares Percentage EndingBalanc	Shares Percentage EndingBalanc	Book vlaue e	Revenue of investee company	Net income (loss) of investee company	Investment income (loss) recognised by the Company	Cash dividends	Notes
							Balance on December 31, 2023
President Securities Corp. President Securities Corp. President Securities Corp. 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%	2,807,811 $ 303,856 843,321 -	184,588 $ 20,578 5 -	84,827 $ 6,593) ( 11) ( -	82,019 $ 6,596) ( 11) ( -	- $ - - -	Subsidiary of the Company Subsidiary of the Company Subsidiary of the Company Subsidiary of the Company

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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 March 31, 2024 Original	Balance on December 31, 2023 investment	Shares Percentage EndingBalanc	Shares Percentage EndingBalanc	e	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 Securities Corp. President Securities Corp. President Insurance Agency Corp.	Uni-President Asset Management Corp. President Insurance Agency Corp. PSC Venture Capital Investment Limited Company Uni-President Asset Management Corp.	Taipei Taipei Taipei Taipei	1992.09.03 2008.04.29 2013.10.29 1992.09.03	2000.07.19 (89) Tai-Cai-Zheng (2) Letter No.56407 (Note2) 2013.08.08 Jing- Guan-Zheng-Chuan Letter No.1020028529 2000.07.19 (89) Tai-Cai-Zheng (2) Letter No.56407	Investment Trust Insurance Agent Consultation of investment management and venture capital; other unprohibited or unrestricted businesses beyond the permit Investment Trust	667,622 $ 10,000 300,000 478	667,622 $ 10,000 300,000 478	14,904,630 1,000,000 30,000,000 12,000	42.46% 100% 100% 0.03%	877,340 $ 43,938 257,375 711	518,178 $ 48,522 11,212 518,178	184,085 $ 20,255 11,165 184,085	78,168 $ 20,254 11,164 63	- $ 41,622 - -	Associates Subsidiary of the Company Subsidiary of the Company Associates

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. and President Wealth Management (HK) Ltd. were approved by the board of directors in March 2022 to deal with the dissolution and liquidation matters.

• 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.

• G. Receivables from related parties exceeding $100 million or 20 percent of contributed capital: None.

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

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4) Disclosure of investment in Mainland China

a) Information of investment in Mainland China

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Amount remitted from Taiwan to
Accumulated
Mainland China/ Amount Accumulated Investment income Accumulated
amount of remitted back to Taiwan for the amount of Net income of Ownership (loss) recognized by Book value of amount of
Investee in Main business Paid-in capital Investment remittance from three months remittance from investee as of held by the the Company for investments in investment income
Mainland activities (Note 4) method Taiwan to ended March 31, 2024 Taiwan to March 31, Company the three months Mainland China as remitted back to
China (Note 1) Mainland China (direct or
Remitted to Mainland China as 2024 ended March 31, of March 31, 2024 Taiwan as of March
as of January 1, Remitted back indirect)
Mainland of March 31, 2024 2024 (Note 2) 31, 2024
2024 to Taiwan
China
($ 37,237)
The financial
statements that are
Securities Directly reviewed by
Jin Yuan
brokering, securities invest in a international
President
dealing, securities $ 6,612,000 company in $ 3,138,169 $ - $ - $ 3,138,169 ($ 75,994) 49% accounting firm $ 2,627,087 $ -
Securities
underwriting and Mainland which has
Co., Ltd.
sponsoring service China cooperative
relationship with
accounting firm in
R.O.C.
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
March 31, 2024 Economic Affairs (MOEA) Commission of MOEA
Jin Yuan President Securities Co., Ltd. $ 3,138,169 $ 3,138,169 $ 20,425,352
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b) Limitation on investment in Mainland China (expressed in thousands of dollars)

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.

Note 2: In the ‘Investment income (loss) recognized by the Company for the three months ended March 31, 2024’ column:

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• (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

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

• 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.

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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, Capital Market, Proprietary Trading, Financial Instrument 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: assist companies to apply for public issuance, listing and listing on the OTC, undertake cash capital increase assessments, assist with corporate mergers and acquisitions, and provide professional consulting on corporate finance, corporate financial management, etc.

• 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. Financial Instrument segment: call (put) warrants (including negotiated warrants) and Callable Bull/Bear Contracts (CBBC) issuance, Structured Notes Trading, equity derivative trading, and Exchange Traded Note (ETN) and other derivative financial products approved by the competent authority.

• F. Reinvestment segment: companies reinvested by the consolidated entities.

• G. Other operating segments include Fixed Income 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”.

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3) Profit or loss of segments information

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Three months ended March 31, 2024
Financial
Brokerage Quantitative Capital Market Proprietary Instrument Reinvestment Other operating
segment Trading segment segment Trading segment segment segment segments Others Total
Segment revenues $ 1,224,181 $ 522,716 $ 106,586 $ 1,207,679 $ 300,006 $ 264,904 $ 208,376 $ 163,668 $ 3,998,116
Segment profit or loss $ 381,658 $ 289,650 $ 67,344 $ 1,008,638 $ 113,806 $ 135,526 ($ 51,267) ($ 101,159) $ 1,844,196
Three months ended March 31, 2023
Financial
Brokerage Quantitative Capital Market Proprietary Instrument Reinvestment Other operating
segment Trading segment segment Trading segment segment segment segments Others Total
Segment revenues $ 797,197 $ 223,903 $ 173,429 $ 4,781 $ 98,327 $ 248,896 $ 352,301 ($ 32,428) $ 1,866,406
Segment profit or loss $ 126,460 $ 99,056 $ 132,592 ($ 58,292) ($ 2,567) $ 94,400 $ 184,682 ($ 3,733) $ 572,598
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Note 1: As operating income (loss) in total is consistent with consolidated statement of comprehensive income, there is no need for adjustment.

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 been disclosed in general information. It discloses the types of products and services of the Group’s segments 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 would not 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 would not be disclosed.

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