PSC - Interim / Quarterly Report 2024

PRESIDENT SECURITIES CORPORATION AND

SUBSIDIARIES

CONSOLIDATED FINANCIAL STATEMENTS AND

INDEPENDENT AUDITORS’ REPORT

JUNE 30, 2024 AND 2023

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

~1~

INDEPENDENT AUDITORS’ REPORT TRANSLATED FROM CHINESE

PWCR24001577 To the Board of Directors and Shareholders of PRESIDENT SECURITIES CORPORATION

Opinion

We have audited the accompanying consolidated balance sheets of President Securities Corporation and subsidiaries as (the “Group”) as at June 30, 2024, December 31, 2023 and June 30, 2023, and the related consolidated statements of comprehensive income for the three months and six months ended June 30, 2024 and 2023, as well as the consolidated statements of changes in equity and of cash flows for the six months ended June 30, 2024 and 2023, and notes to the consolidated financial statements, including a summary of material accounting policies.

In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the consolidated financial position of the Group as at June 30, 2024, December 31, 2023 and June 30, 2023, and its consolidated financial performance for the three months and six months ended June 30, 2024 and 2023 and its consolidated cash flows for the six months ended June 30, 2024 and 2023 in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Firms, Regulations Governing the Preparation of Financial Reports by Futures Commission Merchants, and the International Accounting Standard No. 34, Interim Financial Reporting that came into effect as endorsed by the Financial Supervisory Commission.

Basis for opinion

We conducted our audits in accordance with the Regulations Governing Financial Statement Audit and Attestation Engagements of Certified Public Accountants and Standards on Auditing of the Republic of China. Our responsibilities under those standards are further described in the Auditors’ responsibilities for the audit of the consolidated financial statements section of our report. We are independent of the Group in accordance with the Norm of Professional Ethics for Certified Public Accountant of the Republic of China, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe

~2~

that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Key audit matters

Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the consolidated financial statements for the six months ended June 30, 2024. These matters were addressed in the context of our audit of the consolidated financial statements as a whole and, in forming our opinion thereon, we do not provide a separate opinion on these matters.

Key audit matters for the consolidated financial statements for the six months ended June 30, 2024 are stated as follows:

Fair value measurement of unlisted stocks without active market

Description

Please refer to Note 4 for the accounting policies on unlisted stocks without active market (shown as “financial assets at fair value through other comprehensive income”) and Note 5 for details of critical accounting judgements, estimates and assumption uncertainty. As at June 30, 2024, the unlisted stocks without active market held by the Group totaled 1,381,269 thousand New Taiwan Dollars and were shown as “financial assets at fair value through other comprehensive income” (Level 3 fair value).

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

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

~3~

How our audit addressed the matter

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

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

Other matter – Parent company only financial reports

We have audited and expressed an unqualified opinion on the parent company only financial statements of President Securities Corporation, as at and for the six months ended June 30, 2024 and 2023.

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

Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Firms, Regulations Governing the Preparation of Financial Reports by Futures Commission Merchants, and International Accounting Standard No. 34, “Interim Financial Reporting” that came into effect as endorsed by the Financial Supervisory Commission, and for such internal control as management determines is necessary to enable the preparation of consolidated financial statement that are free from material misstatement, whether due to fraud or error.

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

~4~

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

Auditors’ responsibilities for the audit of the consolidated financial statements

Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Standards on Auditing of the Republic of China will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial statements.

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

Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group’s internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty

~5~

exists related to events or conditions that may cast significant doubt on the Group’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors’ report to the related disclosures in the consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors’ report. However, future events or conditions may cause the Group to cease to continue as a going concern.

Evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures, and whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion.

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

We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the consolidated financial statements for the six months ended June 30, 2024 and are therefore the key audit matters. We describe these matters in our auditors’ report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be

~6~

communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

Lin, Se-Kai

Independent Auditors

Kuo, Puo-Ju

For and on behalf of PricewaterhouseCoopers, Taiwan

August 28, 2024

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

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

~7~

PRESIDENT SECURITIES CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS JUNE 30, 2024, DECEMBER 31, 2023 AND JUNE 30, 2023

(Expressed in thousands of New Taiwan dollars)

Assets	Notes	June 30,2024	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`	June 30,2023
		AMOUNT `$` `6,110,450` `67,958,249` `3,711,912` `20,803` `22,155,682` `31,242` `25,650` `18,574,372` `23,620,653` `734,086` `1,923,721` `935` `32,275,579` `1,545` `57,569` `312,402` `118` `2,447,674` `179,962,642` `117,390` `1,381,269` `3,382,507` `2,622,439` `160,373` `183,442` `293,287` `131,340` `1,451,448` `9,723,495` `$` `189,686,137`	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 `$` `5,796,669` `48,308,175` `3,172,267` `-` `13,683,335` `3,226` `2,687` `6,710,931` `21,500,798` `382,649` `1,557,725` `631` `25,979,009` `1,435` `52,928` `110,822` `83` `1,439,055` `128,702,425` `114,162` `1,213,540` `3,320,087` `2,580,844` `141,970` `265,252` `273,560` `99,089` `1,418,581` `9,427,085` `$` `138,129,510`	%
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 114010 Bonds purchased under resale agreements 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(7) 6(7) 6(8) 6(9) 6(2) 6(3) 6(12) 6(13) 6(14) 6(16) 6(17) 6(47) 6(18)				`4` `35` `2` `-` `10` `-` `-` `5` `16` `-` `1` `-` `19` `-` `-` `-` `-` `1`
					`93`
					`-` `1` `3` `2` `-` `-` `-` `-` `1`
					`7`
					`100`

(Continued)

~8~

PRESIDENT SECURITIES CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS JUNE 30, 2024, DECEMBER 31, 2023 AND JUNE 30, 2023

(Expressed in thousands of New Taiwan dollars)

Liabilities andEquity	Notes	June 30,2024	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`	June 30,2023
		AMOUNT `$` `12,835,120` `32,808,987` `14,104,485` `14,747,689` `693,604` `920,618` `4,162,931` `23,597,437` `1,466,262` `32,019,656` `2,928` `746,254` `4,483,128` `12,736,224` `197,362` `59,777` `101,242` `155,683,704` `15,551` `98,044` `60,439` `46,032` `220,066` `155,903,770` `14,558,313` `91,261` `4,233,889` `9,803,068` `3,076,599` `1,923,498` `33,686,628` `95,739` `33,782,367` `$` `189,686,137`	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 `$` `10,064,854` `23,269,671` `7,109,671` `9,915,036` `715,580` `911,453` `1,014,235` `21,477,529` `406,953` `24,388,065` `3,198` `613,809` `2,422,688` `4,504,843` `166,343` `66,247` `97,187` `107,147,362` `15,463` `69,485` `25,764` `7,332` `118,044` `107,265,406` `14,558,313` `91,261` `3,959,127` `9,253,546` `1,633,347` `1,279,849` `30,775,443` `88,661` `30,864,104` `$` `138,129,510`	%
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(19) 6(20) 6(21) 6(22) 6(6) 6(23) 6(24) 6(25) 6(47) 6(26) 6(28) 6(28) 6(28)(29)				`7` `17` `5` `7` `1` `1` `1` `16` `-` `18` `-` `-` `2` `3` `-` `-` `-`
					`78`
					`-` `-` `-` `-`
					`-`
					`78`
					`10` `-` `3` `7` `1` `1`
					`22`
					`-`
					`22`
					`100`

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

~9~

PRESIDENT SECURITIES CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME THREE MONTHS AND SIX MONTHS ENDED JUNE 30, 2024 AND 2023

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

				Threemonths ended June 30	Threemonths ended June 30	Threemonths ended June 30	Threemonths ended June 30		Six months ended June 30	Six months ended June 30	Six months ended June 30
				2024			2023		2024		2023
	Items	Notes		AMOUNT	%		AMOUNT	%	AMOUNT	%	AMOUNT	%
400000	Revenues
401000	Brokerage handling fee	6(30)
	revenue			`$ 1,264,553`	`35`	`$`	`850,293`	`30`	`$ 2,333,248`	`31`	`$ 1,544,273`	`33`
404000	Revenues from underwriting	6(31)
	business			`32,343`	`1`		`35,134`	`1`	`64,309`	`1`	`49,607`		`1`
406000	Net gain (loss) on wealth
	management			`16,379`	`-`		`9,765`	`-`	`36,293`	`-`	`17,269`		`-`
410000	Net gain (loss) on sale of	6(32)
	operating securities			`3,329,240`	`93`		`139,339`	`5`	`5,937,655`	`78`	`950,907`	`20`
421100	Revenue from providing
	agency service for stock affairs			`27,092`	`1`		`25,059`	`1`	`48,049`	`1`	`45,496`		`1`
421200	Interest income	6(33)		`498,338`	`14`		`314,189`	`11`	`1,000,299`	`13`	`595,882`	`13`
421300	Dividend income			`226,181`	`6`		`2,757,452`	`96`	`340,907`	`5`	`2,799,317`	`59`
421500	Net valuation gain (loss) on	6(34)
	operating securities at fair
	value through profit or loss			`1,661,470`	`46 (`		`347,820) (`	`12)`	`3,266,537`	`43`	`542,436`	`12`
421600	Net gain (loss) on covering of	6(35)
	borrowed securities and bonds
	with resale agreements-short
	sales		`(`	`296,681) (`	`8)`		`105,454`	`4 (`	`622,783) (`	`8) (`	`39,224) (`		`1 )`
421610	Net valuation gain (loss) on	6(36)
	borrowed securities and bonds
	with resale agreements-short
	sales at fair value through
	profit or loss			`26,017`	`1 (`		`42,586) (`	`2) (`	`130,655) (`	`2) (`	`949,571) (`	`20 )`
421800	Valuation gain (loss) on
	securities for futures margin at
	fair value through profit or loss		`(`	`81,590) (`	`2)`		`-`	`-`	`-`	`-`	`-`		`-`
422000	Net gain (loss) on issuance of
	ETNs		`(`	`35,266) (`	`1) (`		`70,332) (`	`2) (`	`101,470) (`	`1) (`	`221,726) (`		`5 )`
422100	Administrative and handling
	fee revenues from issuance of
	ETNs			`1,427`	`-`		`2,369`	`-`	`2,958`	`-`	`4,765`		`-`
422200	Net gain (loss) from issuance	6(37)
	of call (put) warrants		`(`	`427,198) (`	`12) (`		`162,049) (`	`6) (`	`898,654) (`	`12) (`	`247,773) (`		`5 )`
424400	Net gain (loss) from	6(38)
	derivatives		`(`	`2,868,986) (`	`80) (`		`936,821) (`	`33) (`	`4,218,764) (`	`56) (`	`699,205) (`	`15 )`
425300	Expected credit impairment	6(39)
	loss and reversal of
	impairment gain		`(`	`4,380)`	`- (`		`4,462)`	`-`	`17,829`	`- (`	`7,341)`		`-`
428000	Other operating income	6(40)		`231,422`	`6`		`188,552`	`7`	`522,719`	`7`	`344,830`		`7`
	Total revenues			`3,600,361`	`100`		`2,863,536`	`100`	`7,598,477`	`100`	`4,729,942`	`100`
500000	Expenditures and expenses
501000/
502000/
503000	Handling charges	6(41)	`(`	`203,537) (`	`6) (`		`135,742) (`	`5) (`	`374,483) (`	`5) (`	`250,264) (`		`6 )`
507000	ETNs administrative expenses		`(`	`1,351)`	`- (`		`1,521)`	`- (`	`5,104)`	`- (`	`4,574)`		`-`
521200	Financial costs	6(42)	`(`	`380,577) (`	`11) (`		`229,894) (`	`8) (`	`739,627) (`	`10) (`	`386,482) (`		`8 )`
524100	Futures commission expense		`(`	`22,649) (`	`1) (`		`23,376) (`	`1) (`	`45,305) (`	`1) (`	`46,262) (`		`1 )`
524300	Expense of clearing and
	settlement		`(`	`38,614) (`	`1) (`		`28,115) (`	`1) (`	`70,499) (`	`1) (`	`55,475) (`		`1 )`
528000	Other operating expenditure		`(`	`1,639)`	`- (`		`96)`	`- (`	`1,886)`	`- (`	`96)`		`-`
531000	Employee benefits expense	6(43)	`(`	`1,034,378) (`	`29) (`		`856,412) (`	`30) (`	`2,240,755) (`	`29) (`	`1,539,249) (`	`33 )`
532000	Depreciation and amortization	6(44)	`(`	`88,788) (`	`2) (`		`77,149) (`	`2) (`	`174,117) (`	`2) (`	`154,382) (`		`3 )`
533000	Other operating expenses	6(45)	`(`	`622,524) (`	`17) (`		`486,342) (`	`17) (`	`1,147,673) (`	`15) (`	`895,542) (`	`19 )`
	Total expenditures and
	expenses		`(`	`2,394,057) (`	`67) (`		`1,838,647) (`	`64) (`	`4,799,449) (`	`63) (`	`3,332,326) (`	`71 )`

(Continued)

~10~

PRESIDENT SECURITIES CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME THREE MONTHS AND SIX MONTHS ENDED JUNE 30, 2024 AND 2023

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

					Threemonths ended June 30	Threemonths ended June 30	Threemonths ended June 30	Threemonths ended June 30			Six months ended June 30	Six months ended June 30	Six months ended June 30	Six months ended June 30
					2024			2023			2024			2023
	Items	Notes			AMOUNT	%		AMOUNT	%		AMOUNT	%	AMOUNT		%
	Operating profit			`$`	`1,206,304`	`33`	`$`	`1,024,889`	`36`	`$`	`2,799,028`	`37`	`$`	`1,397,616`	`29`
601000	Share of the profit or loss of	6(12)
	associates and joint ventures
	accounted for under the equity
	method				`62,688`	`2`		`8,727`	`-`		`103,682`	`1`		`49,839`		`1`
602000	Other gains and losses	6(46)			`227,965`	`6`		`207,061`	`7`		`438,443`	`6`		`365,820`		`8`
902001	Profit before tax				`1,496,957`	`41`		`1,240,677`	`43`		`3,341,153`	`44`		`1,813,275`	`38`
701000	Income tax (expense) benefit	6(47)	`(`		`149,931) (`	`4) (`		`67,247) (`	`2) (`		`265,669) (`	`4) (`		`180,402) (`		`4 )`
902005	Net income			`$`	`1,347,026`	`37`	`$`	`1,173,430`	`41`	`$`	`3,075,484`	`40`	`$`	`1,632,873`	`34`
	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			`$`	`291,139`	`8`	`$`	`10,377`	`-`	`$`	`461,770`	`6`	`$`	`118,675`		`3`
805550	Other comprehensive gain
	(loss) of associates and joint
	ventures accounted for under
	the equity method				`11,842`	`-`		`1,367`	`-`		`14,455`	`-`		`3,780`		`-`
	Items may be reclassified to
	profit of loss subsequently
805610	Translation gain (loss) on
	the financial statements of
	foreign operating entities				`32,689`	`1 (`		`70,625) (`	`2)`		`119,167`	`2 (`		`75,481) (`		`2 )`
805615	Net unrealized gain (loss)
	from investments in debt
	instruments at fair value
	through other
	comprehensive income		`(`		`13,268)`	`- (`		`119,244) (`	`4) (`		`101,302) (`	`1) (`		`49,590) (`		`1 )`
805000	Current other comprehensive
	income (loss) (post-tax)			`$`	`322,402`	`9 ($`		`178,125) (`	`6)`	`$`	`494,090`	`7 ($`		`2,616)`		`-`
902006	Total current comprehensive
	income			`$`	`1,669,428`	`46`	`$`	`995,305`	`35`	`$`	`3,569,574`	`47`	`$`	`1,630,257`	`34`
	Income attributable to:
913100	Parent company			`$`	`1,343,991`	`37`	`$`	`1,170,491`	`41`	`$`	`3,069,644`	`40`	`$`	`1,628,023`	`34`
913200	Non-controlling interests			`$`	`3,035`	`-`	`$`	`2,939`	`-`	`$`	`5,840`	`-`	`$`	`4,850`		`-`
	Current comprehensive income
	(loss) attributable to:
914100	Parent company			`$`	`1,662,378`	`46`	`$`	`991,903`	`35`	`$`	`3,558,833`	`47`	`$`	`1,624,125`	`34`
914200	Non-controlling interests			`$`	`7,050`	`-`	`$`	`3,402`	`-`	`$`	`10,741`	`-`	`$`	`6,132`		`-`
	Earnings per share	6(48)
975000	Basic earnings per share (in
	dollars)			`$`		`0.92`	`$`		`0.80`	`$`		`2.11`	`$`		`1.12`
985000	Diluted earnings per share (in
	dollars)			`$`		`0.92`	`$`		`0.80`	`$`		`2.11`	`$`		`1.12`

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

~11~

PRESIDENT SECURITIES CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY SIX MONTHS ENDED JUNE 30, 2024 AND 2023

(Expressed in thousands of New Taiwan dollars)

Notes					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
	Commonstock	Capital reserve		R	etained earnings
			Legal reserve		Special reserve		Unappropriated earnings	t	Exchange differences on ranslation of foreign financialstatements
6(29) 6(29)	`$ 14,558,313` `-` `-` `-` `-` `-` `-` `-` `$ 14,558,313` `$ 14,558,313` `-` `-` `-` `-` `-` `-` `-` `$ 14,558,313`	`$ 91,261` `-` `-` `-` `-` `-` `-` `-` `$ 91,261` `$ 91,261` `-` `-` `-` `-` `-` `-` `-` `$ 91,261`	`$ 3,877,849` `-` `-` `-` `81,278` `-` `-` `-` `$ 3,959,127` `$ 3,959,127` `-` `-` `-` `274,762` `-` `-` `-` `$ 4,233,889`		`$ 9,090,989` `-` `-` `-` `-` `162,557` `-` `-` `$ 9,253,546` `$ 9,253,546` `-` `-` `-` `-` `549,522` `-` `-` `$ 9,803,068`	`$` `816,933` `1,628,023` `-` `1,628,023` `(` `81,278 )` `(` `162,557 )` `(` `567,774 )` `-` `$ 1,633,347` `$ 2,752,936` `3,069,644` `-` `3,069,644` `(` `274,762 )` `(` `549,522 )` `(` `1,921,697 )` `-` `$ 3,076,599`		`$` `103,010` `-` `(` `75,481` `)` `(` `75,481` `)` `-` `-` `-` `-` `$` `27,529` `$` `43,973` `-` `119,167` `119,167` `-` `-` `-` `-` `$` `163,140`		`$` `1,180,737` `-` `71,583` `71,583` `-` `-` `-` `-` `$` `1,252,320` `$` `1,390,336` `-` `370,022` `370,022` `-` `-` `-` `-` `$` `1,760,358`	`$ 29,719,092` `1,628,023` `(` `3,898 )` `1,624,125` `-` `-` `(` `567,774 )` `-` `$ 30,775,443` `$ 32,049,492` `3,069,644` `489,189` `3,558,833` `-` `-` `(` `1,921,697 )` `-` `$ 33,686,628`	`$` `87,396` `4,850` `1,282` `6,132` `-` `-` `-` `(` `4,867 )` `$` `88,661` `$` `92,616` `5,840` `4,901` `10,741` `-` `-` `-` `(` `7,618 )` `$` `95,739`	`$ 29,806,488` `1,632,873` `(` `2,616` `)` `1,630,257` `-` `-` `(` `567,774` `)` `(` `4,867` `)` `$ 30,864,104` `$ 32,142,108` `3,075,484` `494,090` `3,569,574` `-` `-` `(` `1,921,697` `)` `(` `7,618` `)` `$ 33,782,367`

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

~12~

PRESIDENT SECURITIES CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

SIX MONTHS ENDED JUNE 30, 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

Expected impairment loss and reversal of impairment gain

Depreciation

Amortization

Financial expense

Interest income (include financial income)

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

(Gain) loss on disposal of property and equipment

(Gain) loss from lease modification
(Gain) loss on valuation of non-operating financial
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
Bonds purchased under resale agreements
Margin loans receivable
Refinancing security deposits
Receivables from refinance guaranty
Receivable of securities business money lending
Customer margin account
Receivables from security lending
Security lending deposits
Notes receivable
Accounts receivable
Accounts receivable-related parties
Prepayments
Other receivables
Other current assets
Net changes in liabilities relating to operating activities
Financial liabilities at fair value through profit or loss
Bonds sold under repurchase agreements
Deposits on short sales
Short sale proceeds payable
Guarantee deposit received on borrowed securities
Futures traders’ equity
Equity for each customer in the account
Accounts payable
Advance receipts
Collections on behalf of third parties
Other payables
Other financial liabilities - current
Other current liabilities Six months ended June 30
Notes
2024
2023
$
3,341,153 $
1,813,275
6(2)(34)
(
3,266,537 ) (
542,436 )
6(36)
130,655
949,571
6(39)
(
17,417 )
8,079
6(44)
125,210
117,093
6(44)
48,907
37,289
6(42)
739,627
386,482
6(33)(46)
(
1,327,975 ) (
856,260 )
(
347,858 ) (
2,827,928 )
6(12)
(
103,682 ) (
49,839 )
6(13)
35
75
(
11 ) (
1 )
6(46)
(
7,267 ) (
433 )
(
10,983,115 ) (
23,384,136 )
(
325,670 ) (
592,875 )
(
20,803 )
-
(
4,741,679 ) (
3,158,596 )
(
29,260 )
90,910
(
24,174 )
69,712
(
9,327,203 ) (
2,616,023 )
(
3,094,536 ) (
717,543 )
(
282,689 )
776,928
(
1,448,016 )
1,819,905
540
132
(
12,935,111 ) (
12,942,034 )
(
354 ) (
240 )
(
8,023 ) (
14,360 )
(
14,000 ) (
31,147 )
(
721,802 )
511,906
3,502,518 (
2,997,220 )
(
4,392,817 )
2,949,612
(
227,489 ) (
1,093,776 )
(
242,886 ) (
898,509 )
2,530,923 (
792,356 )
3,099,543
713,943
614,179
141,027
14,843,270
13,315,877
(
714 )
922
131,874 (
130,911 )
292,905
263,829
7,512,205
1,720,757
17,187
13,974

(Continued)

~13~

PRESIDENT SECURITIES CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

SIX MONTHS ENDED JUNE 30, 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
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period Six months ended June 30
Notes
2024
2023
( $
16,960,357 ) ( $
27,945,325 )
1,290,690
845,301
219,295
286,572
(
293,024 ) (
154,013 )
(
15,743,396 ) (
26,967,465 )
6(13)
(
38,318 ) (
20,905 )
6(17)
(
15,162 ) (
12,350 )
(
197,314 ) (
134,987 )
(
66,115 ) (
51,425 )
(
316,909 ) (
219,667 )
5,890,361
9,789,854
11,700,000
17,470,000
(
18,457 ) (
596 )
(
37,467 ) (
40,570 )
(
765,618 ) (
390,499 )
16,768,819
26,828,189
(
108,042 ) (
38,961 )
600,472 (
397,904 )
5,509,978
6,194,573
$
6,110,450 $
5,796,669

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

~14~

PRESIDENT SECURITIES CORPORATION AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

SIX MONTHS ENDED JUNE 30, 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 June 30, 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 1,737 and 1,691 as of June 30, 2024 and 2023, respectively.
THE DATE OF AUTHORIZATION FOR ISSUANCE OF THE CONSOLIDATED FINANCIAL STATEMENTS AND PROCEDURES FOR AUTHORIZATION
These consolidated financial statements were authorized for issuance by the Board of Directors on August 28, 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

~15~

	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 effect as endorsed

by the FSC but not yet adopted by the Group

New standards, interpretations and amendments endorsed by the FSC and will become effective from 2025 are as follows:

Effective date by International Accounting New Standards, Interpretations and Amendments Standards Board Amendments to IAS 21, ‘Lack of exchangeability’ January 1, 2025

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

3) 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:

New Standards,Interpretations and Amendments	Effective date by International Accounting Standards Board
Amendments to IFRS 9 and IFRS 7, ‘Amendments to the classification and measurement of financial instruments’ Amendments to IFRS 10 and IAS 28, ‘Sale or contribution of assets between an investor and its associate or joint venture’ IFRS 17, ‘Insurance contracts’ Amendments to IFRS 17, ‘Insurance contracts’ Amendment to IFRS 17, ‘Initial application of IFRS 17 and IFRS 9 – comparative information’ IFRS 18, ‘Presentation and disclosure in financial statements’ IFRS 19, ‘Subsidiaries without public accountability: disclosures’ Annual Improvements to IFRS Accounting Standards—Volume 11	January 1, 2026 To be determined by International Accounting Standards Board January 1, 2023 January 1, 2023 January 1, 2023 January 1, 2027 January 1, 2027 January 1, 2026

New Standards,Interpretations and Amendments

Effective date by
International Accounting
Standards Board

Amendments to IFRS 9 and IFRS 7, ‘Amendments to the classification and
measurement of financial instruments’
Amendments to IFRS 10 and IAS 28, ‘Sale or contribution of assets between
an investor and its associate or joint venture’
IFRS 17, ‘Insurance contracts’
Amendments to IFRS 17, ‘Insurance contracts’
Amendment to IFRS 17, ‘Initial application of IFRS 17 and IFRS 9 –
comparative information’
IFRS 18, ‘Presentation and disclosure in financial statements’
IFRS 19, ‘Subsidiaries without public accountability: disclosures’
Annual Improvements to IFRS Accounting Standards—Volume 11

January 1, 2026
To be determined by
International Accounting
Standards Board
January 1, 2023
January 1, 2023
January 1, 2023
January 1, 2027
January 1, 2027
January 1, 2026

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

~16~

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 adopted are consistent with Note 4 in the consolidated financial statements for the year ended December 31, 2023, except for the compliance statement, basis of preparation, basis of consolidation and the portions applicable to interim financial statements as set out below. These policies have been consistently applied to all the periods presented, unless otherwise stated.

1) Compliance statement

A. The consolidated financial statements of the Group have been prepared in accordance with the Regulations Governing the Preparation of Financial Reports by Securities 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.
B. These consolidated financial statements should be read in conjunction with the consolidated financial statements for the year ended December 31, 2023.

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:
The principles for the preparation of this consolidated financial statements are the same as those for the consolidated financial statements for the year ended December 31, 2023.

~17~

B. Subsidiaries included in the consolidated financial statements:

Name of Investor	Name of Subsidiary	Main Business Activities June 30,2024 Futures brokerage and dealer 96.69% Securities investment consulting 100% Securities dealer, brokerage, underwriting and consulting (Note 3) 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 (%)	June 30,2023
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: Subsidaries 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: President Securities (HK) Ltd. has completed the deregistration of securities trading-related licenses on March 27, 2024, and has no securities-related business activities.

~18~

4) Employee benefits

A. Except for the following explanation of interim standards, please refer to Note 4(22) of the consolidated financial statements for the year ended December 31, 2023.
B. 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.
5) Income tax
A. Except for the following explanation of interim standards, please refer to Note 4(24) of the consolidated financial statements for the year ended December 31, 2023.
B. 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.

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

There were no significant changes as of June 30, 2024. Please refer to the explanation in Note

5 of the consolidated financial statements for the year ended December 31, 2023.

6. DETAILS OF SIGNIFICANT ACCOUNTS

1) Cash and cash equivalents

Cash and cash equivalents
Petty cash Checking deposits Current deposits: Deposits denominated in NTD Deposits denominated in foreign currencies Time deposits Total	June 30,2024 1,650 $ 582,130 1,024,677 1,146,339 3,355,654 6,110,450 $	December 31, 2023 150 $ 608,351 811,348 722,937 3,367,192 5,509,978 $	June 30,2023
			1,650 $ 511,992 608,873 1,217,154 3,457,000
			5,796,669 $

As of June 30, 2024, December 31, 2023 and June 30, 2023, the annual interest rates of time deposits, including foreign time deposits were 0.565%~5.430%, 0.555%~5.500%, and 0.325%~5.413%, respectively.

~19~

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 Exchange-traded funds Subtotal Adjustment of open-ended funds, money market instruments and securities investment by brokers Total Trading securities-dealer Listed (TSE and OTC) stocks Government bonds Corporate bonds Convertible corporate bonds Emerging stocks Overseas stocks Exchange-traded funds Unlisted stocks Subtotal Adjustment of trading securities - dealer Total Trading securities-underwriter Listed (TSE and OTC) stocks Convertible corporate bonds Subtotal Adjustment of trading securities - underwriter Total Trading securities-hedging Listed (TSE and OTC) stocks Corporate bonds Convertible corporate bonds Warrants Overseas stocks Exchange traded funds Subtotal Adjustment of trading securities - hedging Total Options bought - futures Futures Margin-Own Funds Derivative financial instrument assets-OTC Total	June 30,2024 306,662 $ 5,515 312,177 423,394 105,585 528,979 27,081 556,060 14,360,706 49,875 2,506,273 1,948,552 247,585 8,614,680 3,999,077 183,343 31,910,091 2,729,510 34,639,601 114,740 678,210 792,950 269,902 1,062,852 11,696,554 3,090,000 9,568,011 15,866 402,377 7,511 24,780,319 1,743,999 26,524,318 5,216 4,822,159 35,866 67,958,249 $	December 31,2023 June 30,2023 89,389 $ 304,587 $ 1,613) ( 483 87,776 305,070 240,985 155,310 65,080 48,252 306,065 203,562 11,488 6,496 317,553 210,058 6,431,803 13,474,182 1,693,534 899,888 4,054,695 1,953,487 1,358,491 880,597 259,975 242,973 12,310,430 6,684,428 2,572,774 2,389,471 170,943 142,921 28,852,645 26,667,947 623,506 77,666 29,476,151 26,745,613 95,604 47,850 602,696 533,847 698,300 581,697 175,242 171,614 873,542 753,311 8,028,344 8,173,807 100,000 - 9,315,389 5,970,110 15,694 19,238 104,122 152,124 15,141 13,812 17,578,690 14,329,091 527,952 ( 48,625) 18,106,642 14,280,466 5,547 2,254 4,830,957 5,990,735 829 20,668 53,698,997 $ 48,308,175 $	June 30,2023
			304,587 $ 483
			305,070
			155,310 48,252
			203,562 6,496
			210,058
			13,474,182 899,888 1,953,487 880,597 242,973 6,684,428 2,389,471 142,921
			26,667,947 77,666
			26,745,613
			47,850 533,847
			581,697 171,614
			753,311
			8,173,807 - 5,970,110 19,238 152,124 13,812
			14,280,466
			2,254
			5,990,735
			20,668
			48,308,175 $

~20~

June 30, 2024 December 31, 2023 June 30, 2023

	June 30,2024	December 31,2023	June 30,2023
Non-current items:
Financial assets mandatorily measured at fair
value through profit or loss:
Trading securities - dealer - government bonds	$ 49,853	$ 49,829	$ 49,804
Unlisted stocks	435	435	435
Others	50,000	50,000	50,000
Subtotal	100,288	100,264	100,239
Adjustment of trading securities	17,102	18,016	13,923
Total	$117,390	$118,280	$ 114,162

a. For the three months and six months ended June 30, 2024 and 2023, net realized and unrealized gains (losses) on financial assets and liabilities at fair value through profit or loss amounted to $1,308,433, ($1,312,446), $3,234,824 and ($659,391), respectively.
b. Details of the Group’s financial assets at fair value through profit or loss pledged to others as collateral are provided in Note 8.
c. Information relating to credit risk is provided in Note 12(2).

3) Financial assets at fair value through other comprehensive income

June 30,2024 Current items: Equity instruments: Trading securities-dealer Listed (TSE and OTC) stocks 189,812 $ Adjustment of trading securities - dealer 454,510 Subtotal 644,322 Debt instruments: Trading securities-dealer Overseas bonds 3,125,117 Adjustment of trading securities - dealer 57,527) ( Subtotal 3,067,590 Total 3,711,912 $ June 30,2024 Non-current items: Equity instruments: Unlisted stocks 37,565 $ Adjustment of trading securities 1,343,704 Total 1,381,269 $	December 31,2023 June 30,2023 189,812 $ 189,812 $ 205,719 194,380 395,531 384,192 2,681,326 2,919,138 1,823 131,063) ( 2,683,149 2,788,075 3,078,680 $ 3,172,267 $ December 31,2023 June 30,2023 37,565 $ 37,565 $ 1,130,723 1,175,975 1,168,288 $ 1,213,540 $	June 30,2023
		189,812 $ 194,380
		384,192
		2,788,075
		3,172,267 $
		June 30,2023
		37,565 $ 1,175,975
		1,213,540 $

a. The Group has elected to classify stock investments that are considered to be strategic investments and stably receiving dividends as financial assets at fair value through other comprehensive income. The fair value of such investments amounts to $2,025,591, $1,563,819 and $1,597,732 as at June 30, 2024, December 31, 2023 and June 30 2023, respectively.

~21~

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

==> picture [425 x 156] intentionally omitted <==

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

Equity instruments at fair value through Three months ended Three months ended Six months ended Six months ended
other comprehensive income June 30, 2024 June 30, 2023 June 30, 2024 June 30, 2023
Fair value change recognised in other
comprehensive income - parent company $ 287,124 $ 9,914 $ 456,869 $ 117,393
Fair value change recognised in other
comprehensive income - non-controlling
interest 4,015 463 4,901 1,282
Total $ 291,139 $ 10,377 $ 461,770 $ 118,675
Dividend income recognised in profit or loss
Held at end of period $ 2,335 $ 24,127 $ 4,669 $ 25,961
Debt instruments at fair value through Three months ended Three months ended Six months ended Six months ended
other comprehensive income June 30, 2024 June 30, 2023 June 30, 2024 June 30, 2023
Fair value change recognised in other
comprehensive income ($ 13,268) ($ 119,244) ($ 101,302) ($ 49,590)
Interest income recognised in profit or loss $ 30,195 $ 23,582 $ 57,705 $ 45,701
----- End of picture text -----

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

4) Bonds purchased under resale agreements

==> picture [437 x 25] intentionally omitted <==

The above bonds purchased under resale agreements as of June 30, 2024, December 31, 2023, and June 30, 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 $20,984, $0, and $0, respectively, and the annual interest rates in every currency were shown as follows:

Currency June 30, 2024 EUR 3.48%	December 31,2023 -	June 30,2023
		-

5) Margin loans receivable

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

6) Customer margin account

Customer margin account
Bank deposit Futures clearing house Other futures commission merchant Securities Total	June 30,2024 16,013,762 $ 5,477,065 2,129,369 457 23,620,653 $	December 31,2023 14,568,406 $ 3,207,614 2,749,733 364 20,526,117 $	June 30,2023
			14,430,546 $ 4,673,227 2,396,715 310
			21,500,798 $

~22~

The difference between the customer margin deposits accounts and futures traders’ equity as of June 30, 2024, December 31, 2023 and June 30 2023, were outlined below:

		June 30,2024		December 31, 2023	December 31, 2023		June 30, 2023
Customer margin deposits accounts	$	23,620,653	$		20,526,117	$	21,500,798
Futures trading margins receivable		-			-		177
Add: Early customer margin deposits		18,743			8,915		22,938
Less: Service fee income pending for transfer	(	20,155)	(		29,470)	(	23,093)
Futures exchange tax pending for transfer	(	2,295)	(		725)	(	1,097)
Temporary receipts	(	19,509)	(		6,943)	(	22,194)
Futures trader’s equity	$	23,597,437	$		20,497,894	$	21,477,529
7) Accounts receivable
		June 30,2024		December 31,2023			June 30,2023
Accounts receivable - related parties	$	1,545	$		1,191	$	1,435
Accounts receivable - non related parties
Settlement price receivable-brokers	$	19,471,715	$		13,698,197	$	14,583,252
Settlement price receivable-dealer		5,691,073			1,473,114		965,783
Settlement price receivable-foreign bonds		3,253,294			916,071		4,506,574
Spot exchange receivable, foreign currencies		126,916			37,393		247,707
Interest receivable		505,938			478,227		303,944
Settlement price		2,676,060			1,780,200		2,112,910
Dividends receivable		156,698			28,136		2,723,118
Others		394,223			684,404		536,247
Subtotal		32,275,917			19,095,742		25,979,535
Less: Allowance for uncollectable accounts	(	338)	(		641)	(	526)
Total	$	32,275,579	$		19,095,101	$	25,979,009

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

follows:
Accounts receivable Accounts receivable - related parties Accounts receivable - non related parties Total Accounts receivable Accounts receivable - related parties Accounts receivable - non related parties Total			June 30,2024
	Up to 30 days	31 to 90 days	91 to 180 days	181 days to 12 months	More than 12 months	Total
	917 $ 31,787,862 31,788,779 $	628 $ 127,434 128,062 $	- $ 119,603 119,603 $ December	- $ 153,016 153,016 $ 31,2023	- $ 88,002 88,002 $	1,545 $ 32,275,917
						32,277,462 $

	Up to 30 days	31 to 90 days	91 to 180 days	181 days to 12 months	More than 12 months	Total
	763 $ 18,635,202 18,635,965 $	428 $ 119,962 120,390 $	- $ 151,182 151,182 $	- $ 122,488 122,488 $	- $ 66,908 66,908 $	1,191 $ 19,095,742
						19,096,933 $

~23~

==> picture [435 x 103] intentionally omitted <==

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

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

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

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

8) Other receivables

Other receivables
		June 30,2024	December	31, 2023		June 30, 2023
Interest receivable	$	59,325	$	54,949	$	48,007
Dividends receivable		219,394		-		2,585
Others		33,958		19,958		60,525
Subtotal		312,677		74,907		111,117
Less: Allowance for uncollectible accounts	(	275)	(	275)	(	295)
Total	$	312,402	$	74,632	$	110,822

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

9) Other current assets

Other current assets
Pending settlements Pledged time deposits Deposits-in for foreign currency securities Underwriting share proceeds collected on behalf of customers Amounts held for each customer in the account Others Total	June 30,2024 292,757 $ 500,000 24,743 117,970 1,466,262 45,942 2,447,674 $	December 31,2023 282,289 $ 400,000 47,264 90,245 852,083 53,991 1,725,872 $	June 30,2023
			221,688 $ 400,000 385,219 46 406,953 25,149
			1,439,055 $

10) 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.

~24~

B. Financial assets that do not meet the derecognition conditions and related financial liabilities are analysed below:

liabilities are analysed below:	liabilities are analysed below:
Financial assets category Carrying amount of transferred financial assets Financial assets measured at fair value through profit or loss Repurchase agreement 12,535,554 $ Financial assets measured at fair value through other comprehensive income Repurchase agreement 3,067,591 Financial assets category Carrying amount of transferred financial assets Financial assets measured at fair value through profit or loss Repurchase agreement 17,723,768 $ Financial assets measured at fair value through other comprehensive income Repurchase agreement 2,651,447 June 30,2024 December 31,2023 June 30, 2023		Carrying amount of related financial liabilities
		11,700,978 $ 3,046,711 Carrying amount of related financial liabilities
	17,723,768 $ 2,651,447 June 30, 2023	16,573,700 $ 2,566,806 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
	6,342,400 $ 2,788,075	7,094,957 $ 2,820,079

11) 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.

~25~

B. The offsetting of financial assets and financial liabilities are set as follows:

(1)Financial assets

(1)Financial assets
		June 30,2024
Derivative financial instruments Bonds purchased under resale agreements Total Description	Gross amounts of recognised financial assets	Gross amounts of recognised financial liabilities set off in the balance sheet		Net amounts of financial assets presented in the balance sheet	Financial instruments Cash collateral received 3,074 $ - $ 20,301 - 23,375 $ - $ Not set off in the balance sheet	Net amount
					Financial instruments
	35,866 $ 20,803 56,669 $		- $ 35,866 $ - 20,803 - $ 56,669 $ December 31,2023		3,074 $ 20,301 23,375 $	32,792 $ 502
						33,294 $

Derivative financial instruments Description	Gross amounts of recognised financial assets	Gross amounts of recognised financial liabilities set off in the balance sheet		Net amounts of financial assets presented in the balance sheet	Financial instruments Cash collateral received 829 $ - $ Not set off in the balance sheet	Net amount
					Financial instruments
	829 $		- $ 829 $ June 30,2023		829 $	- $

Derivative financial instruments Description	Gross amounts of recognised financial assets	Gross amounts of recognised financial liabilities set off in the balance sheet		Net amounts of financial assets presented in the balance sheet	Financial instruments Cash collateral received 1,758 $ - $ Not set off in the balance sheet	Net amount
					Financial instruments
	20,668 $		- $	20,668 $	1,758 $	18,910 $

~26~

(2) Financial liabilities

) Financial liabilities
		June 30,2024
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 3,074 $ - $ 12,297,175 - 12,300,249 $ - $ Not set off in the balance sheet	Net amount
				Financial instruments
	3,074 $ 12,297,175 12,300,249 $	- $ 3,074 $ - 12,297,175 - $ 12,300,249 $ December 31,2023		3,074 $ 12,297,175 12,300,249 $	- $ -
					- $

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 $ June 30,2023		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 1,758 $ - $ 7,189,422 - 7,191,180 $ - $ Not set off in the balance sheet	Net amount
				Financial instruments
	1,758 $ 7,189,422 7,191,180 $	- $ - - $	1,758 $ 7,189,422 7,191,180 $	1,758 $ 7,189,422 7,191,180 $	- $ -
					- $

~27~

12) Investments accounted for under the equity method

Uni-President Asset Management Corp. Jin Yuan President Securities Co., Ltd.	June 30,2024 763,715 $ 2,618,792 3,382,507 $	December 31,2023 797,207 $ 2,615,717 3,412,924 $	June 30,2023 679,561 $ 2,640,526 3,320,087 $

A. The Group’s share of its associates’ profits or losses recognized in long-term equity investment accounted for under the equity method for the three and six months ended June 30, 2024 and 2023 were $62,688, $8,727, $103,682 and $49,839, 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:

Companyname Princial place of businesss Uni-President Asset Management Corp. Taipei city Jin Yuan President Securities Co., Ltd. Xiamen		Shareholdingratio		Nature of relationship	Methods of measurement
	June 30,2024	December 31,2023	June 30,2023	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

Balance sheet
Current assets Non-current assets Current liabilities Non-current liabilities Total net assets Share in associate's net assets Goodwill and others Carrying amount of the associate		June 30,2024 December 31,2023 June 30,2023 Uni-President Asset Management Corp.
		June 30,2024	December 31,2023
	1,528,505 $ 900,283 979,169) ( 74,967) ( 1,374,652 $ 584,193 $ 179,522 763,715 $		1,132,776 $ 822,436 443,166) ( 58,583) ( 1,453,463 $ 617,685 $ 179,522 797,207 $	708,053 $ 815,147 310,225) ( 36,342) ( 1,176,633 $ 500,039 $ 179,522 679,561 $

~28~

Balance sheet

Balance sheet
		Jin Yuan President		Securities	Co.,	Ltd.
		June 30, 2024	December 31,2023			June 30, 2023
Current assets	$	7,024,441	$	5,641,883	$	7,061,605
Non-current assets		238,410		243,503		256,793
Current liabilities	(	1,872,512)	(	487,824)	(	1,878,386)
Non-current liabilities	(	45,864)	(	59,363)	(	51,183)
Total net assets	$	5,344,475	$	5,338,199	$	5,388,829
Share in associate's net assets	$	2,618,792	$	2,615,717	$	2,640,526
Carrying amount of the associate	$	2,618,792	$	2,615,717	$	2,640,526

Statement of comprehensive income

Statement of comprehensive income
Revenue Profit for the period from continuing operations Other comprehensive income (loss) - net of tax Total comprehensive income (loss) Dividends received from associates Revenue Loss for the period from continuing operations Total comprehensive income (loss)		Six months ended June 30,2024 Six months ended June 30,2023 1,091,354 $ 670,206 $ 403,427 $ 224,927 $ 34,013 8,895 437,440 $ 233,822 $ 219,394 $ 167,887 $ Uni-President Asset Management Corp. Jin Yuan President Securities Co.,Ltd.
		1,091,354 $ 403,427 $ 34,013 437,440 $ 219,394 $ Jin Yuan President
		Six months ended June 30,2024		Six months ended June 30,2023
	183,235 $ 138,296) ($ 138,296) ($		218,632 $ 103,901) ($ 103,901) ($

Loss for the period from continuing operations Total comprehensive income (loss)

13) Property and equipment

Six months ended June 30, 2024

Leasehold

					Leasehold
January1		Land	Buildings	Equipment	improvements	Total
Cost Accumulated depreciation and impairment Total January 1 Additions Disposal Reclassifications Depreciation June 30		1,738,051 $ - 1,738,051 $ 1,738,051 $ - - - - 1,738,051 $	1,176,715 $ 571,899) ( 604,816 $ 604,816 $ 778 - 2,660 21,180) ( 587,074 $	564,286 $ 274,664) ( 289,622 $ 289,622 $ 36,397 35) ( 18,796 61,080) ( 283,700 $	34,050 $ 21,462) ( 12,588 $ 12,588 $ 1,143 - 2,610 2,727) ( 13,614 $	3,513,102 $ 868,025) ( 2,645,077 $ 2,645,077 $ 38,318 35) ( 24,066 84,987) ( 2,622,439 $

~29~

Six months ended June 30, 2024

		Six months ended June 30,2024	Six months ended June 30,2024	30,2024
June 30	Land	Buildings Equipment Leasehold improvements 1,178,063 $ 587,719 $ 37,803 $ 590,989) ( 304,019) ( 24,189) ( 587,074 $ 283,700 $ 13,614 $ 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 $ - 20,247 658 - 75) ( - 2,228 22,412 681 20,604) ( 51,895) ( 2,450) ( 601,685 $ 284,865 $ 14,165 $ Buildings Equipment Leasehold improvements 1,140,996 $ 515,555 $ 33,160 $ 539,311) ( 230,690) ( 18,995) ( 601,685 $ 284,865 $ 14,165 $ Six months ended June 30,2023		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				3,541,636 $ 919,197) ( 2,622,439 $ Total 3,367,963 $ 758,321) ( 2,609,642 $ 2,609,642 $ 20,905 75) ( 25,321 74,949) ( 2,580,844 $ Total
Cost Accumulated depreciation and impairment Total January 1 Additions Disposal Reclassifications Depreciation June 30 June 30		1,140,158 $ 520,097) ( 620,061 $ 620,061 $ - - 2,228 20,604) ( 601,685 $ Buildings	500,641 $ 206,465) ( 294,176 $ 294,176 $ 20,247 75) ( 22,412 51,895) ( 284,865 $ Equipment	47,035 $ 31,759) ( 15,276 $ 15,276 $ 658 - 681 2,450) ( 14,165 $ Leasehold improvements
Cost Accumulated depreciation and impairment Total	1,680,129 $ - 1,680,129 $	1,140,996 $ 539,311) ( 601,685 $	515,555 $ 230,690) ( 284,865 $	33,160 $ 18,995) ( 14,165 $	3,369,840 $ 788,996) ( 2,580,844 $

A. No interest was capitalized for property and equipment for the six months ended June 30, 2024 and 2023.
B. The information on property and equipment pledged or restricted as of June 30, 2024, December 31, 2023 and June 30, 2023 is described in Note 8.

`－` 14) 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.

~30~

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

Three months ended June 30,2024 Depreciation charge	June 30,2024 CarryingAmount 143,984 $ 12,491 3,898 160,373 $ Three months ended June 30, 2023	December 31,2023 CarryingAmount 111,575 $ 15,296 5,155 132,026 $ Six months ended June 30,2024	June 30,2023
			CarryingAmount
			121,082 $ 14,591 6,297 141,970 $ Six months ended June 30, 2023
	Depreciation charge	Depreciation charge 34,836 $ 3,213 1,463 39,512 $	Depreciation charge
18,351 $ 1,536 733 20,620 $	16,428 $ 1,670 700 18,798 $		36,354 $ 3,341 1,399 41,094 $

C. For the six months ended June 30, 2024 and 2023, the additions to right-of-use assets amounted to $69,294 and $17,666, respectively.
D. The information on income and expense accounts relating to lease contracts is as follows:

Items affecting profit or loss	Three months ended June 30,2024 Three months ended June 30, 2023	Six months ended June 30,2024 Six months ended June 30, 2023
Interest expense on lease liabilities Expense on short-term lease contracts Expense on variable lease payment	458 $ 273 $ 1,223 3,421 30 27	787 $ 540 $ 2,499 4,688 51 43

E. For the six months ended June 30, 2024 and 2023, the Group’s total cash outflow for leases amounted to $40,804 and $45,841, respectively.

15) Leasing arrangements – lessor

A. The Group leases various assets including office and parking space. Rental contracts are typically made for periods of 1 and 5 years. Lease terms are negotiated on an individual basis and contain a wide range of different terms and conditions.
B. For the six months ended June 30, 2024 and 2023, the Group recognized rent income in the amounts of $6,020 and $9,177, respectively, based on the operating lease agreement, which does not include variable lease payments.
C. The maturity analysis of the lease payments under the operating leases is as follows:

2023 2024 2025 2026 2027 After 2028 Total		June 30,2024		December 31,2023		June 30,2023
		- $ 6,104 10,628 10,315 9,773 6,599 43,419 $		- $ 4,488 2,420 2,420 2,420 1,638 13,386 $		9,180 $ 4,339 36 36 36 18 13,645 $

~31~

16) Investment property

==> picture [483 x 400] intentionally omitted <==

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

Six months ended June 30, 2024
January 1 Land Buildings Total
Cost $ 140,176 $ 72,533 $ 212,709
Accumulated depreciation and impairment - ( 28,556) ( 28,556)
Total $ 140,176 $ 43,977 $ 184,153
January 1 $ 140,176 $ 43,977 $ 184,153
Depreciation - ( 711) ( 711)
June 30 $ 140,176 $ 43,266 $ 183,442
June 30 Land Buildings Total
Cost $ 140,176 $ 72,533 $ 212,709
Accumulated depreciation and impairment - ( 29,267) ( 29,267)
Total $ 140,176 $ 43,266 $ 183,442
Six months ended June 30, 2023
January 1 Land Buildings Total
Cost $ 198,099 $ 107,076 $ 305,175
Accumulated depreciation and impairment - ( 38,873) ( 38,873)
Total $ 198,099 $ 68,203 $ 266,302
January 1 $ 198,099 $ 68,203 $ 266,302
Depreciation - ( 1,050) ( 1,050)
June 30 $ 198,099 $ 67,153 $ 265,252
June 30 Land Buildings Total
Cost $ 198,099 $ 107,076 $ 305,175
Accumulated depreciation and impairment - ( 39,923) ( 39,923)
Total $ 198,099 $ 67,153 $ 265,252
----- End of picture text -----

A. For the three and six months ended June 30, 2024 and 2023, rental income from the lease of the investment property were $2,558, $4,007, $5,024 and $8,013 respectively, and direct operating expenses arising from the investment property were $616, $917, $1,260, and $1,839, respectively.

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

~32~

17) Intangible assets

Six months ended June 30, 2024

January1	Computer software	Computer software	Goodwill	Goodwill
Cost Accumulated amortization and impairment Total January 1 Additions Reclassifications Amortization June 30 June 30	472,236 $ 257,496) ( 214,740 $ 214,740 $ 15,162 34,588 48,891) ( 215,599 $ Computer software		42,004 $ - 42,004 $ 42,004 $ - - - 42,004 $ Goodwill
Cost Accumulated amortization and impairment Total January1	498,885 $ 283,286) ( 215,599 $
		Computer sofware	Goodwill	Customer relationships and others Total 89,929 $ 493,966 $ 54,218) ( 247,460) ( 35,711 $ 246,506 $ 35,711 $ 246,506 $ - 12,350 - 51,925 9) ( 37,221) ( 35,702 $ 273,560 $ Customer relationships and others Total 89,929 $ 550,837 $ 54,227) ( 277,277) ( 35,702 $ 273,560 $
Cost Accumulated amortization and impairment Total January 1 Additions Reclassifications Amortization June 30 June 30	362,033 $ 193,242) ( 168,791 $ 168,791 $ 12,350 51,925 37,212) ( 195,854 $ Computer software		42,004 $ - 42,004 $ 42,004 $ - - - 42,004 $ Goodwill
Cost Accumulated amortization and impairment Total	418,904 $ 223,050) ( 195,854 $		42,004 $ - 42,004 $

~33~

A. No interest was capitalized for intangible assets for the six months ended June 30, 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:

the goodwill was not impaired. The key assumptions used for calculation follows:	of value in use are as
Growth rate Discount rate	Brokerage Segment
	2023
	0.00% 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.

18) Other non-current assets

Other non-current assets
		June 30,2024	December 31,2023			June 30,2023
Operation guaranteed deposits	$	640,000	$	655,000	$	655,000
Clearing and settlement fund		324,680		308,649		316,091
Refundable deposits		421,827		225,738		320,332
Prepaid pension expenses		4,207		4,013		88,604
Prepayment for equipment		58,220		50,757		35,998
Overdue receivables		3,611		1,965		8,013
Others		2,514		2,522		2,556
Subtotal		1,455,059		1,248,644		1,426,594
Less: Allowance for
uncollectible accounts	(	3,611)	(	1,965)	(	8,013)
Total	$	1,451,448	$	1,246,679	$	1,418,581
Short-term loans
		June 30,2024	December 31, 2023			June 30,2023
Unsecured loans	$	11,773,070	$	6,944,759	$	9,880,294
Secured loans		770,000		-		60,000
Call loans from banks		292,050		-		124,560
Total	$	12,835,120	$	6,944,759	$	10,064,854

19) Short-term loans

As of June 30, 2024, December 31, 2023 and June 30, 2023, the interest rates of short-term loans, including foreign interest rates were 1.775%~5.770%, 1.650%~5.910%, and 1.650%~5.850%, respectively.

~34~

20) Commercial papers payable

Commercial papers payable
		June 30, 2024	December 31,2023			June 30,2023
Face value	$	32,850,000	$	21,150,000	$	23,300,000
Less: discount on commercial papers payable	(	41,013)	(	19,066)	(	30,329)
Total	$	32,808,987	$	21,130,934	$	23,269,671

As of June 30, 2024, December 31, 2023 and June 30, 2023, the interest rates of commercial papers, including foreign interest rates were 1.680%~2.030%, 1.460%~1.580%, and 1.400%~1.680%, respectively.

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

		June 30,2024		December 31,2023		June 30,2023
Investments in bonds under resale
agreements - short sales	$	94,720	$	-	$	-
Valuation adjustment of financial assets held for
trading	(	609)		-		-
Subtotal		94,111		-		-
Liabilities on sale of borrowed securities - hedged		1,369,174		490,037		527,724
Valuation adjustment on liabilities on sale of borrowed securities - hedged		55,545		27,380		12,535
Liabilities on sale of borrowed securities - non-hedged		4,843,449		5,270,361		3,324,265
Valuation adjustment on liabilities on sale
of borrowed securities - non-hedged		492,112		389,037	(	22,875)
Subtotal		6,760,280		6,176,815		3,841,649
Issuance of call (put) warrants		16,932,746		14,926,912		11,213,850
Loss (gain) on price fluctuation	(	988,695)	(	2,567,109)	(	365,489)
Market value (A)		15,944,051		12,359,803		10,848,361
Warrants redeemed	(	14,850,241)	(	13,268,465)	(	10,482,634)
Loss (gain) on price fluctuation		1,258,164		1,944,352		605,080
Market value (B)	(	13,592,077)	(	11,324,113)	(	9,877,554)
Warrants - net (A+B)		2,351,974		1,035,690		970,807
Options sold - TAIFEX		4,681		9,671		3,103
Outstanding Liability for Issuance of ETNs		357,978		492,775		780,398
Valuation adjustment on outstanding
Liability for Issuance of ETNs		112,869		59,115		15,809
Subtotal		470,847		551,890		796,207
Derivative financial liabilities - OTC		4,422,592		2,697,246		1,497,905
Total	$	14,104,485	$	10,471,312	$	7,109,671

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.

~35~

22) Bonds sold under repurchase agreements

Government bonds Corporate bonds Bank debentures International bonds Foreign bonds Total	June 30,2024 50,000 $ 4,917,641 100,000 646,694 9,033,354 14,747,689 $	December 31,2023 June 30,2023 1,673,927 $ 966,749 $ 3,738,850 1,494,142 100,000 100,000 664,516 164,722 12,963,213 7,189,423 19,140,506 $ 9,915,036 $

The above bonds sold under repurchase agreements as of June 30, 2024, December 31, 2023 and June 30, 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 $14,876,694, $19,322,093 and $10,005,853, respectively, and the annual interest rates in every currency were shown as follows:

currency were shown as follows:	currency were shown as follows:
Accounts payable Currency June 30,2024 December 31, 2023 NTD 1.14%~1.56% 0.97%~1.41% Foreign currencies (Note) 3.75%~5.75% 2.20%~5.80% Note: Foreign currencies include AUD, EUR, USD, GBP and SGD. June 30, 2024 December 31,2023 Settlement accounts payable - brokered trading 21,168,360 $ 14,683,802 $ Settlement proceeds 1,093,439 838,340 Settlement accounts payable - operating 4,957,769 244,238 Settlement accounts payable - foreign bonds 4,088,332 977,154 Spot exchange payable, foreign currencies 126,907 37,386 Others 584,849 310,495 Total 32,019,656 $ 17,091,415 $		June 30,2023
		0.85%~1.40% 1.80%~5.50% June 30,2023
	14,683,802 $ 838,340 244,238 977,154 37,386 310,495	15,533,856 $ 1,277,870 2,807,203 4,308,669 247,874 212,593
	17,091,415 $	24,388,065 $

23) Accounts payable

24) Other payables

Other payables
Other financial liabilities-current Salary and bonus payable Employees' and directors' remuneration payable Dividends payable Others Total Principal guaranteed notes (PGN) - fixed income	June 30,2024 1,516,294 $ 284,691 1,929,315 752,828 4,483,128 $ June30,2024 12,736,224 $	December 31,2023 1,397,414 $ 143,088 - 719,080 2,259,582 $ December31,2023 5,224,019 $	June 30,2023
			1,003,896 $ 124,077 572,642 722,073
			2,422,688 $
			June30,2023
			4,504,843 $

25) Other financial liabilities - current

Principal guaranteed notes (PGN) - fixed income

The Group deals in equity-linked products and combines fixed income instruments with call or put options. These products are categorized into ELN (Equity-Linked Notes) and PGN (Principal Guaranteed Notes). On trade date, the contracted amounts are collected in full from the counterparties. The payout amount on maturity will depend on the price fluctuation of the instruments linked to these

~36~

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).

26) Other liabilities - non-current

Other liabilities-non-current
June 30, 2024 December31,2023 Guarantee deposits received 5,596 $ 4,188 $ Net defined benefit obligation 40,436 60,301 Total 46,032 $ 64,489 $	June30,2023
	6,806 $ 526 7,332 $

27) 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 and six months ended June 30, 2024 and 2023 in the statement of comprehensive income in the amounts of $564, $55, $1,128 and $110, respectively.
(C) Expected contributions to the defined benefit pension plans of the Group for the year ending December 31, 2025 amount to $46,328.
B. Defined contribution plans

Effective from July 1, 2005, the Group established a defined contribution plan pursuant to the “Labor Pension Act”, which covers employees with R.O.C. nationality and those who chose or are required to apply the “Labor Pension Act”. The contributions are made monthly based on not less than 6% of the employees’ monthly salaries and wages to the employees’ individual pension accounts at the Bureau of Labor Insurance. The payment of pension benefits is based on the employees’ individual pension fund accounts and the cumulative profit in such accounts. The employees can choose to receive such pension benefits monthly or in lump sum. The pension

~37~

costs under defined contribution pension plans of the Group for the three and six months ended June 30, 2024 and 2023 were $22,585, $19,463, $44,075 and $39,059, respectively.

C. President Securities (HK) and President Wealth Management (HK) 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 $5,427, $2,429, $9,005 and $4,240, respectively, for the three and six months ended June 30, 2024 and 2023.

28) Equity

A. Common stock

As of June 30, 2024, the Company’s authorized capital was $15,000,000 with a par value of $10 (in dollars) per share. As of June 30, 2024, December 31, 2023 and June 30, 2023, the common stocks issued and the outstanding common stocks were all 1,455,831 thousand shares.

B. Capital reserve

June 30, 2024 December 31, 2023 June 30, 2023	Sharepremium 24,663 $ 24,663 $ 24,663 $		Treasury share transactions		Expired stock options		Difference between consideration and carrying amount of subsidiaries acquired or disposed		Total
			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 earnings of the period, if any, shall be set aside as special reserve until the cumulative balance

~38~

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 a 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.

29) 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 and 2022 as resolved by the stockholders’ meeting on June 27, 2024 and May 31, 2023. Details are as follows:

~39~

Amount Dividends per share (in dollars) Provision of legal reserve 274,762 $ Provision of special reserve 549,522 Cash dividends 1,921,697 1.32 $ 2,745,981 $ For the year ended December 31,2023	Amount Dividends per share (in dollars) 81,278 $ 162,557 567,774 0.39 $ 811,609 $ For the year ended December 31,2022

30) Brokerage handling fee revenue

Brokerage handling fee revenue
Revenues from brokered trading - TWSE Revenues from brokered trading - OTC Revenues from brokered trading - Futures Others Total	Three months ended June 30, 2024	Three months ended June 30,2023	Six months ended June 30,2024	Six months ended June 30, 2023
	756,127 $ 221,834 215,245 71,347 1,264,553 $	475,846 $ 168,795 169,869 35,783 850,293 $	1,371,341 $ $ 425,938 394,860 141,109 2,333,248 $ $	830,324 307,328 339,756 66,865
				1,544,273

31) Revenues from underwriting business

Revenues from underwriting business
Revenues from underwriting securities on a firm commitment basis Others Total	Three months ended June 30, 2024	Three months ended June 30,2023	Six months ended June 30,2024 Six months ended June 30, 2023
	15,695 $ 16,648 32,343 $	16,032 $ 19,102 35,134 $	28,092 $ 21,838 $ 36,217 27,769 64,309 $ 49,607 $

32) 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 June 30,2024	Three months ended June 30,2023	Six months ended June 30,2024	Six months ended June 30,2023
	1,307,987 $ 116,796 64,190 1,488,973 19,110 14,078 33,188 1,459,360 329,093 18,626 1,807,079 3,329,240 $	186,505 $ 126,853 44,442) ( 268,916 2,187 18,346 20,533 76,150) ( 76,557) ( 2,597 150,110) ( 139,339 $	2,339,994 $ 515,769 360,500 3,216,263 25,031 48,579 73,610 2,077,328 541,889 28,565 2,647,782 5,937,655 $	531,612 $ 243,547 22,952 798,111 4,886 95,856 100,742 53,662 1,483) ( 125) ( 52,054 950,907 $

33) Interest income

Interest income
Interest income from margin loans Interest income from bonds Others Total	Three months ended June 30,2024	Three months ended June 30,2023	Six months ended June 30,2024	Six months ended June 30,2023
	253,972 $ 155,462 88,904 498,338 $	163,842 $ 119,147 31,200 314,189 $	478,598 $ 369,569 152,132 1,000,299 $	308,540 $ 233,540 53,802 595,882 $

~40~

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

Gain (loss) on sale of securities - dealer Gain (loss) on sale of securities - underwriting Gain (loss) on sale of securities - hedging Total	Three months ended June 30,2024 1,190,539 $ 62,749 408,182 1,661,470 $	Three months ended June 30,2023	Six months ended June 30,2024 1,955,829 $ 94,661 1,216,047 3,266,537 $	Six months ended June 30,2023
		210,680) ($ 56,849 193,989) ( 347,820) ($		190,282 $ 113,094 239,060 542,436 $

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

Gain (loss) from the bond investments under resale agreements Gain (loss) from securities borrowing transactions Gain (loss) from covering Total	Three months ended June 30,2024	Three months ended June 30, 2023 Six months ended June 30,2024 Six months ended June 30, 2023 - $ 98 $ - $ 106,239 609,968) ( 59,856 785) ( 12,913) ( 99,080) ( 105,454 $ 622,783) ($ 39,224) ($
	98 $ 312,303) ( 15,524 296,681) ($

36) Net valuation gain (loss) on borrowed securities and bonds with resale agreements-short sales at fair

value through profit or loss

value through profit or loss
Valuation gain (loss) from securities borrowing transactions Valuation gain (loss) from covering Valuation gain from the bond investments under resale agreements Total	Three months ended June 30,2024	Three months ended June 30,2023	Six months ended June 30,2024	Six months ended June 30,2023
	84,671 $ 59,239) ( 585 26,017 $	35,916) ($ 6,670) ( - 42,586) ($	101,733) ($ 29,507) ( 585 130,655) ($	895,043) ($ 54,528) ( - 949,571) ($

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

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	Three months ended June 30,2024	Three months ended June 30,2023 Six months ended June 30, 2024	Six months ended June 30,2023
	219,952) ($ 98,469) ( 108,777) ( 427,198) ($	59,108) ($ 458,664) ($ 9,286) ( 138,905) ( 93,655) ( 301,085) ( 162,049) ($ 898,654) ($	56,132) ($ 20,531) ( 171,110) ( 247,773) ($

38) Net gain (loss) from derivatives

Futures contract gain (loss) ( Option trading gain (loss) ( OTC option trading gain (loss) ( Net gain (loss) on foreign exchange derivatives Asset SWAP ( Others ( Total (	Three months ended June 30,2024	Three months ended June 30,2023	Six months ended June 30,2024	Six months ended June 30,2023
	1,915,257) $ ( 41,415) 498,499) ( 60,469 392,133) 82,151) ( 2,868,986) $ (	968,920) $ ( 8,392 ( 109,932) ( 70,778 86,336 ( 23,475) ( 936,821) $ (	2,822,721) $ ( 27,431) 828,152) ( 147,939 567,657) ( 120,742) ( 4,218,764) $ (	591,788) $ 13,708 25,664) 85,486 136,105) 44,842)
				699,205) $

~41~

39) Expected credit impairment loss and reversal of impairment gain

Three months ended June 30,2024 Three months ended June 30, 2023 Impairment (loss) and reversal of impairment gain 4,614) ($ 5,153) ($ Recovery of bad debts 234 691 Total 4,380) ($ 4,462) ($	Six months ended June 30, 2024 Six months ended June 30,2023 17,417 $ 8,079) ($ 412 738 17,829 $ 7,341) ($

40) Other operating income

Other operating income
Income from securities lending Net currency exchange gain (loss) Handling fee revenues from funds Others Total	Three months ended June 30, 2024	Three months ended June 30,2023 Six months ended June 30, 2024	Six months ended June 30, 2023
	115,248 $ 4,648 25,453 86,073 231,422 $	104,031 $ 192,815 $ 19,345 133,281 20,204 49,030 44,972 147,593 188,552 $ 522,719 $	197,252 $ 19,867 38,711 89,000 344,830 $

41) Handling charges

Brokerage handling fee expense Dealer handling fee expense Refinancing processing fee expense Total	Three months ended June 30,2024	Three months ended June 30, 2023	Six months ended June 30, 2024	Six months ended June 30,2023
	145,696 $ 57,205 636 203,537 $	101,736 $ 33,619 387 135,742 $	267,606 $ 106,140 737 374,483 $	185,996 $ 63,390 878 250,264 $

42) Financial costs

Interest expense from repurchase agreements Loans interest expense Other interest expense Total	Three months ended June 30,2024	Three months ended June 30,2023	Six months ended June 30,2024	Six months ended June 30,2023
	135,458 $ 196,448 48,671 380,577 $	102,303 $ 99,523 28,068 229,894 $	319,699 $ 338,549 81,379 739,627 $	183,296 $ 148,309 54,877 386,482 $

43) Employee benefits expense

Employee benefits expense
Salaries Labor and health insurance Pension Other employee benefits Total	Three months ended June 30,2024	Three months ended June 30,2023	Six months ended June 30,2024	Six months ended June 30, 2023
	923,179 $ 41,381 28,576 41,242 1,034,378 $	768,605 $ 36,537 21,947 29,323 856,412 $	2,011,732 $ 96,513 54,208 78,302 2,240,755 $	1,349,798 $ 84,121 43,409 61,921 1,539,249 $

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 and six months ended June 30, 2024 and 2023, employees’ compensation was accrued at $30,502, $25,344, $68,325 and $36,869, respectively; directors’ remuneration was accrued at $30,502, $25,344, $68,325 and $36,869, respectively. The aforementioned amounts were recognized in salary expenses.

~42~

C. For the six months ended June 30, 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.

44) Depreciation and amortization

website. Depreciation and amortization
Depreciation Amortization Total	Three months ended June 30,2024 Three months ended June 30, 2023	Six months ended June 30,2024	Six months ended June 30, 2023
	64,001 $ 57,505 $ 24,787 19,644 88,788 $ 77,149 $	125,210 $ 48,907 174,117 $	117,093 $ 37,289 154,382 $

45) Other operating expenses

Other operating expenses
Taxes Security lending expenses Computer information expenses TDCC service fee Postage Others Total	Three months ended June 30,2024	Three months ended June 30,2023	Six months ended June 30, 2024	Six months ended June 30,2023
	297,907 $ 66,568 62,355 36,725 24,546 134,423 622,524 $	198,771 $ 63,532 54,743 23,630 23,372 122,294 486,342 $	554,807 $ 111,963 117,773 66,931 48,283 247,916 1,147,673 $	348,722 $ 125,811 103,618 42,039 45,940 229,412 895,542 $

46) Other gains and losses

Other gains and losses TDCC service fee Postage Others Total	36,725 24,546 134,423 622,524 $	23,630 23,372 122,294 486,342 $	66,931 48,283 247,916 1,147,673 $	42,039 45,940 229,412 895,542 $
Financial income Net gain (loss) on disposal of investments Net gain (loss) on valuation of non-operating financial instruments Net currency exchange gain (loss) Other non-operating revenues Total	Three months ended June 30,2024	Three months ended June 30,2023	Six months ended June 30,2024	Six months ended June 30,2023
	175,887 $ 8,250 1,246) ( 929 44,145 227,965 $	138,971 $ 621) ( 1,867) ( 3,521 67,057 207,061 $	327,677 $ 18,808 7,267 7,239 77,452 438,443 $	260,378 $ 1,929) ( 433 2,263 104,675 365,820 $

47) Income tax

A. Income tax expense

Components of income tax expense:

Current tax: Current tax on profits for the periods Prior year income tax underestimation (overestimation) ( Tax on undistributed surplus Total current tax Deferred taxes: Temporary differences Total deferred taxes Income tax expense (gain)	Three months ended June 30,2024	Three months ended June 30,2023	Six months ended June 30,2024	Six months ended June 30,2023
	163,474 $ 15,350) ( 81 148,205 1,726 1,726 149,931 $	68,849 $ 17,597) ( 58 51,310 15,937 15,937 67,247 $	238,044 $ 13,233) 81 224,892 40,777 40,777 265,669 $	176,739 $ 17,597) ( 58 159,200 21,202 21,202 180,402 $

~43~

B. As of June 30, 2024, the Company’s income tax returns have been approved by the Tax Authority until 2019. The income tax returns through 2022 of all subsidiaries have been assessed, except for President Futures approval until 2019.
C. With respect to the income tax returns of the Company for 2019, the Tax Authority assessed to increase income tax payable by $2,222. The Company disagreed with the assessment and had filed for administrative remedy and had recognized the income tax expense based on the assessment.

48) Earnings per share

Three months ended June 30, 2024

Amount after tax	Weighted-average outstanding common shares(In thousands)		Earnings per share (In dollars)

Amount after tax	Weighted-average outstanding common shares(In thousands)
		2.11 $ 2.11 $ Earnings per share (In dollars) 2023
Amount after tax	Weighted-average outstanding common shares(In thousands)
1,170,491 $ - 1,170,491 $	1,455,831 1,403 1,457,234		0.80 $ 0.80 $

~44~

Basic earnings per share Net income attributable to common shareholders Dilutive effect of common stock equivalents Employee bonus		Amount after tax Weighted-average outstanding common shares(In thousands) Earnings per share (In dollars) 1,628,023 $ 1,455,831 1.12 $ - 2,119 1,628,023 $ 1,457,950 1.12 $ Six months ended June 30,2023	Amount after tax Weighted-average outstanding common shares(In thousands) Earnings per share (In dollars) 1,628,023 $ 1,455,831 1.12 $ - 2,119 1,628,023 $ 1,457,950 1.12 $ Six months ended June 30,2023	Amount after tax Weighted-average outstanding common shares(In thousands) Earnings per share (In dollars) 1,628,023 $ 1,455,831 1.12 $ - 2,119 1,628,023 $ 1,457,950 1.12 $ Six months ended June 30,2023	Amount after tax Weighted-average outstanding common shares(In thousands) Earnings per share (In dollars) 1,628,023 $ 1,455,831 1.12 $ - 2,119 1,628,023 $ 1,457,950 1.12 $ Six months ended June 30,2023	Amount after tax Weighted-average outstanding common shares(In thousands) Earnings per share (In dollars) 1,628,023 $ 1,455,831 1.12 $ - 2,119 1,628,023 $ 1,457,950 1.12 $ Six months ended June 30,2023
		Amount after tax		Weighted-average outstanding common shares(In thousands)
		1,628,023 $ - 1,628,023 $		1,455,831 2,119 1,457,950		1.12 $ 1.12 $

7. RELATED PARTY TRANSACTIONS

1) Names and relationships of related parties

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

2) Significant related party transactions and balances

A. Accounts receivable

nificant related party transactions and Accounts receivable		balances
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		June 30,2024		December 31,2023		June 30,2023
		334 $ 110 375 100 504 122 1,545 $		332 $ - 322 - 434 103 1,191 $		744 $ 10 375 - 221 85 1,435 $

~45~

B. Prepayments

B.	Prepayments
C. D. E. F.	Other receivables Guarantee deposit received Other payables Lease transactions`－`lessee Other related party: Q-WARE Systems & Services Corp. Tung Ho Development Co., Ltd. President Chain Store Corp. (PCSC) Presco Netmarketing Co., Ltd. Others Total Associate: Uni-President Assets Management Corp. Other related party: Others Total Associate: Uni-President Assets Management Corp. Other related party: President Tokyo Co., Ltd. Total Other related party: President Tokyo Co., Ltd. Presco Netmarketing Co., Ltd. Others Total	June 30,2024 5,096 $ 600 158 121 26 6,001 $ June 30,2024 219,288 $ 18 219,306 $ June 30,2024	December 31,2023 4,682 $ 600 157 121 18 5,578 $ December 31,2023	June 30,2023 7,376 $ 600 243 7 18 8,244 $ June 30,2023 - $ 23 23 $ June 30,2023
			4 $ - 4 $ December 31, 2023
		1,497 $ - 1,497 $ June 30,2024	1,435 $ - 1,435 $ December 31, 2023	1,044 $ 1,418 2,462 $ June 30,2023
		49 $ 154 - 203 $	12 $ 125 - 137 $	412 $ - 63 475 $

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

Six months ended Six months ended June 30, 2024 June 30, 2023 Other related party: President Tokyo Co., Ltd. $ 2,040 $ 1,427

~46~

b. Disposition of right-of-use assets

Disposition of right-of-use assets
Other related party: President Tokyo Co., Ltd.	Six months ended June 30,2024		Six months ended June 30,2023
	3,561 $		1,290 $

a. Lease liabilities - current

ase liabilities ease liabilities - current
Other related party: President Tokyo Co., Ltd. President Tokyo Auto Leasing Co., Ltd. Total	June 30, 2024 6,468 $ 749 7,217 $	December31,2023 7,428 $ 747 8,175 $	June 30, 2023
			7,333 $ 744 8,077 $

b. Lease liabilities - non-current

Lease liabilities - non-current
Other related party: President Tokyo Co., Ltd. President Tokyo Auto Leasing Co., Ltd. Total	June30,2024 7,705 $ 1,070 8,775 $	December 31, 2023	June30,2023
		10,152 $ 1,445 11,597 $	9,975 $ 1,819 11,794 $

c. Financial costs

Other related party: President Tokyo Co., Ltd. President Tokyo Auto Leasing Co., Ltd. Total	Three months ended June 30, 2024	Three months ended June 30,2023	Six months ended June 30, 2024	Six months ended June 30,2023
	39 $ 3 42 $	32 $ 4 36 $	82 $ 6 88 $	68 $ 9 77 $

d. Net gain from lease modification

d.Net gain from lease modification
Handling fee revenue Other related party: President Tokyo Co., Ltd. Security investment trust fund raised by the Uni-President Asset Management Corp.: Fund managed by Uni-President Asset Management Corp. Other related party: Others Total	Three months ended June 30,2024	Three months ended June 30,2023	Six months ended June 30,2024	Six months ended June 30,2023
	12 $ Three months ended June 30,2024	1 $ Three months ended June 30,2023	12 $ Six months ended June 30,2024	1 $ Six months ended June 30,2023 41,644 756 42,400 $
	58,139 $ 339 58,478 $	24,411 $ 539 24,950 $	114,340 872 115,212 $

G. Handling fee revenue

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

~47~

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

Three months ended Three months ended Six months ended Six months ended June 30, 2024 June 30, 2023 June 30, 2024 June 30, 2023 Associates: Uni-President Assets Management Corp. $ 7,043 $ 3,708 $ 14,100 $ 7,121

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

I. Other operating revenue - Other

Other operating revenue-Other
Other operating revenue-handling fee Associates: Uni-President Assets Management Corp.	Three months ended June 30, 2024	Three months ended June 30, 2023	Six months ended June 30, 2024	Six months ended June 30, 2023
	revenues from underwriting funds 710 $ 720 $ 1,880 $ Six months ended June 30,2024 Six months ended June 30,2023 Six months ended June 30,2024			1,440 $ Six months ended June 30,2023
Associates: Uni-President Assets Management Corp.	Six months ended June 30,2024	Six months ended June 30,2023
	24,422 $	19,721 $	47,644 $	37,676 $

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

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

K. Rent income

Period 2016.01.01~2028.08.31 2019.04.01~2023.08.31	Deposit 1,497 $ -	Three months ended June 30,2024	Three months ended June 30,2023 Six months ended June 30, 2024	Six months ended June 30,2023
		2,406 $ - 2,406 $	1,713 $ 4,719 $ 2,236 - 3,949 $ 4,719 $	3,427 $ 4,471 7,898 $

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

L. Revenues from underwriting business – other revenues from underwriting business

Stock custodian income Entity having significant influence on the company: Uni-President Enterprises Corp. 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 June 30,2024	Three months ended June 30,2023	Six months ended June 30, 2024	Six months ended June 30,2023
	75 $ Three months ended June 30,2024	2,800 $ Three months ended June 30,2023	75 $ Six months ended June 30,2024	2,800 $ Six months ended June 30,2023
	1,057 $ 35 656 323 770 187 3,028 $	1,119 $ 35 647 321 676 177 2,975 $	2,053 $ 75 1,144 632 1,421 371 5,696 $	2,169 $ 75 1,157 629 1,285 343 5,658 $

M.Stock custodian income

~48~

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

N. Other operating expenses - Other

Other related party: President Tokyo Co., Ltd. Presco Netmarketing Co., Ltd. President Professional Baseball Team Corp. Total	Three months ended June 30,2024	Three months ended June 30,2023	Six months ended June 30,2024	Six months ended June 30,2023
	96 $ 343 2,310 2,749 $	19 $ 751 2,310	99 $ 599 2,310 3,008 $	32 $ 837 2,310 3,179 $
		3,080 $

O. Other non-operating expenses – Others

Three months ended June 30, 2024 Other related party: President Tokyo Co., Ltd. 243 $	Three months ended June 30, 2023	Six months ended June 30,2024	Six months ended June 30,2023
	- $	243 $	- $

P. Purchases of trading securities - dealer

June 30,2024	June 30,2024	Three months ended June 30,2024
Ending Shares (In thousands)	EndingBalance 8,455 $ 205,460 2,462 216,377 $ EndingBalance 10,149 $ 52,587 2,426 ( - 65,162 $ 31,2023	Gain(loss) 5 $ 4,913 - 4,918 $ Year ended December 31,2023 Gain(loss) 1,826 $ 7,376 31) 11 9,182 $
104 9 Ending Shares (In thousands) December
136 9 -

~49~

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

Q. Compensation of key management personnel

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

ere as follows:
Salary and short-term employee benefits Retirement benefits Other long-term employee benefits Termination benefits Share-based payments Total	Three months ended June 30, 2024	Three months ended June 30,2023	Six months ended June 30, 2024	Six months ended June 30,2023
	61,488 $ 462 - - - 61,950 $	72,209 $ 421 - - - 72,630 $	129,694 $ 946 - - - 130,640 $	92,755 $ 826 - - - 93,581 $

(Blank below)

~50~

8. PLEDGED ASSETS

The Group’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	June 30,2024 1,650,000 $ 45,100 6,420,648 689,238 100,000 3,177,575 118,738 500,000 50,000 1,083,009 640,000 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	June 30,2023 1,500,000 $ 900,000 4,680,404 174,969 100,000 3,000,400 777 400,000 50,000 1,088,369 655,000 2,000	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.

~51~

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.

~52~

  - 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

~53~

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

(B) Credit risk management

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

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

(D) Operating risks

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

  - (E) Legal risk

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

  - (F) Climate risks

     - 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:

~54~

(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. 13% 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 (S&P BB).

(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).

~55~

(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(11).

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

(F) Bonds purchased under resale agreements Bonds purchased under resale agreements are the bonds that the client sold to the Group at a price, interest rate, length of period as agreed by two parties and the client shall repurchase the bonds at the specified price upon maturity. The Group needs to assume credit risk from counterparties when conducting such business, as the payment being delivered to the other party. With consideration of good collateral obtained, the net of credit risk exposure from counterparties can be effectively reduced. As all the counterparties are financial institutions with good credit rating, the credit risks from counterparties are extremely low. Please refer to Note 6(11).
(G) Margin loans receivable
Margin loans receivable are the loans provided to the client in order to process businesses of margin trading and short sale using the securities purchased through financing as collateral. The Group monitors the clients’ margin ratio through information system on a daily basis. As the margin ratio of margin trading is set at 130% according to Regulations Governing the Conduct of Securities Trading Margin Purchase and Short Sale Operations by Securities Firms, the credit risk is extremely low.
(H) Receivables of securities business money lending Receivables of securities business money lending are the non-restricted purpose loan business and monetary financing business, pursuant to an agreement between a securities firm and a customer, using customer securities and other commodities as collateral. The Group regularly assesses its customer line of credit and implements appropriate credit control. As the margin ratio of margin trading is set at 130% according to Regulations Governing the Conduct of Securities Trading Margin Purchase and Short Sale Operations by Securities Firms, the credit risk is extremely low.
(I) Guaranteed price for securities lending Guaranteed price for securities lending is the sale price of the Group’s securities sold by other securities firms through margin trading after deduction of securities transactions tax

~56~

and service fee, which is deposited in other securities firms as collateral. As all the counterparties are financial institutions with good credit rating, the credit risk from counterparties is extremely low.

(J) Refundable deposits for securities lending Refundable deposits for securities lending are the margins deposited in other securities firm as collateral when the Group’s securities are sold. As all the counterparties are financial institutions with good credit, the credit risk from counterparties is extremely low.
(K) Receivables
- Receivables are the credit rights arising from the securities business including settlement receivables of consignment trading, settlement receivables of operating securities sold, financing interest receivables of self-operating credit transaction, receivables of consignment trading for securities, and receivables from banks’ underwriting on foreign exchange transactions and foreign fund demand. As the majority of the Group’s receivables from the consignment businesses and self-operating businesses are settlement of securities from 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.
(L) Other current assets
- Other current assets are mainly the collateral deposited in the bank for application for shortterm debt limit and guarantee for application for issuance of commercial papers. As the correspondent banks are all financial institutions with good credit rating, the credit risk is extremely low.
(M) Financial assets at fair value through profit and loss - non-current
- In order to conduct trust business, the Group deposits central government bonds in the Central Bank as collateral. Regardless of the bonds themselves or the financial institutions where the bonds are deposited, the credit risk is extremely low.
(N) Other non-current assets
- Other non-current assets mainly comprise operating guarantee deposits, settlement funds, and refundable deposits. Operating guarantee deposits are mainly deposited in domestic banks with good credit rating. Settlement funds are deposited in securities exchange. Settlement funds are used as compensation when a party to a marketable securities transaction fails to fulfil the settlement obligation. The credit risks from the institutions where these two assets are deposited are extremely low. The refundable deposits refer to cash or other assets which are deposited externally by the Group and can be used as refundable deposits. Because deposits are placed in various financial institutions and each deposit amount is small, the credit risk is dispersed and the credit exposure of overall refundable deposit is extremely low.
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.

~57~

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.

~58~

(D) Measurement of expected credit losses
- The Group considers reasonable supporting information which shows significant increase in credit risk since initial recognition when calculating expected credit losses. Main indexes include: internal/external credit rating, information of past due, credit spread, other market information in relation to the borrower, issuer or counterparty, and significant increase in credit risk of other financial instrument of the same borrower. Investments in bills and bonds
- (a)Probability of default was based on external credit rating, which include forward-looking information.
- (b)Loss given default was based on the average loss given default of external credit rating of investment position and counterparties.
- (c)Exposure at default
  - Stage 1, Stage 2 and Stage 3: Total carrying amount (including interest receivable).
(E) Consideration of forward-looking information
- Historical loss rate (based on the historical experience in the past 3 to 5 years) as obtained and compared with economic environment in the past, nowadays and future (forwardlooking factor) to see whether there is any significant change, and then to properly adjust future loss rate standards. If any significant default event occurs, the loss rate in the current year will be included in the calculation of future loss rate standard.
D.Table of movements in loss provision of the Group
(A) At June 30, 2024, December 31, 2023 and June 30, 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 June 30			Six months ended June 30,2024	Six months ended June 30,2024	Six months ended June 30,2024	Six months ended June 30,2024	Six months ended June 30,2024	Total
		Marginal receivable	Accounts receivable		Other receivables		Other non-current assets-overdue receivables
	46,779 $ 18,760) ( 28,019 $		641 $ 303) ( 338 $		275 $ - 275 $		1,965 $ 1,646 3,611 $	49,660 $ 17,417) ( 32,243 $

~59~

At January 1 Provision (reversal of provision) for impairment Derecognized At December 31 At January 1 Provision (reversal of provision) for impairment At June 30		Marginal receivable	Accounts receivable Other receivables Other non-current assets-overdue receivables 659 $ 355 $ 8,224 $ 18) ( 80) ( 450) ( - - 5,809) ( 641 $ 275 $ 1,965 $ Accounts receivable Other receivables Other non-current assets-overdue receivables 659 $ 355 $ 8,224 $ 133) ( 60) ( 211) ( 526 $ 295 $ 8,013 $ Six months ended June 30,2023 Year ended December 31,2023	Total	Total
		28,315 $ 18,464 - 46,779 $ Marginal receivable		37,553 $ 17,916 5,809) ( 49,660 $ Total
		28,315 $ 8,483 36,798 $			37,553 $ 8,079 45,632 $

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

~60~

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)

~61~

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

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						June 30,2024
		Immediately		Less than 3 months		3-12 months		1-5years - $ - - - - - - 5,986 - - 88,710 - - 98,044 192,740 $	Total
		2,716,620 $ 600,000 6,854,391 6,598,458 - 693,604 920,618 - 23,597,437 31,883,866 638,593 68,130 - - 74,571,717 $		10,118,500 $ 32,250,000 - - 14,876,694 - - 3,405,762 - 135,790 18,951 2,248,666 12,269,309 17,907 75,341,579 $		- $ - - 651,636 - - - 751,183 - - - 2,166,332 466,915 41,870 4,077,936 $			12,835,120 $ 32,850,000 6,854,391 7,250,094 14,876,694 693,604 920,618 4,162,931 23,597,437 32,019,656 746,254 4,483,128 12,736,224 157,821 154,183,972 $

~62~

		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 $

~63~

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

~64~

4) Market risk

A. Definition of market risk

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

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

B. Value at Risk (VaR)

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

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

Statistical table for one-day VaR of transactions	Statistical table for one-day VaR of transactions	Statistical table for one-dayVaR of transactions
Six months ended June 30, 2024 June 30, 2024 VaR Maximum VaR Average VaR Minimum	Amount 160,172 $ 288,828 181,509 43,520	Six months ended June 30,2023 Amount June 30, 2023 166,720 $ VaR Maximum 203,880 VaR Average 95,416 VaR Minimum 33,479

Statistical table for VaR of various risk indicators of transactions

Six months ended

Six months ended
June 30,2024	Foreign exchange 17,860 $ 29,753 13,952 6,794 Foreign exchange 6,569 $ 47,965 10,312 1,597	Interest 7,410 $ 28,898 10,950 855 Interest 40,144 $ 81,522 51,148 5,259	Share ownership
June 30, 2024 VaR Maximum VaR Average VaR Minimum Six months ended June 30,2023			161,029 $ 290,630 183,021 38,055 Share ownership
June 30, 2023 VaR Maximum VaR Average VaR Minimum			173,982 $ 218,572 79,788 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 June 30, 2024, December 31, 2023 and June 30, 2023 ：

~65~

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 Bonds purchased under resale agreements 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				June 30,2024
	USD 1,063,714 $ 7,872,684 1,677,095 - - 10,821,454 1,220,120 410,751 6,526,665 15,166,703	EUR 3,121 $ 1,049,224 - 20,803 - 476,638 - 61,542 925,818 331,812	AUD 1,674 $ 880,695 1,390,495 - - 161,206 - 493 2,152,523 144,252	RMB 33,573 $ 13,996 - - 2,618,792 1,097 - 844 - 268,841	HKD 892,298 $ 2,830 - - - 93,921 - - - 91,442	Others 139,630 $ 646,715 - - - 121,704 - 65 75,043 129,181	Total
							2,134,010 $ 10,466,144 3,067,590 20,803 2,618,792 11,676,020 1,220,120 473,695 9,680,049 16,132,231

Note: As of June 30, 2024, foreign exchange rates of the above currencies to TWD were 1 USD = 32.450 TWD; 1 EUR= 34.710 TWD; 1 AUD= 21.520 TWD; 1 RMB= 4.445 TWD; and 1 HKD=4.155 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.

~66~

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 900,886 $ 4,852,079 1,461,852 - 10,537,084 1,279,854 84,755 4,798,905 11,676,077	EUR 3,530 $ 1,436,943 - - 1,213,525 - 17 736,799 1,355,296	AUD 12,534 $ 312,727 1,326,223 - 155,679 - 268 1,607,621 22,758	RMB 90,607 $ 207,614 - 2,640,526 14,448 - 999 102,227 228,788 June 30,2023	HKD Others 989,860 $ 115,569 $ 85,820 689,409 - - - - 105,014 105,889 - - - - - 108,593 97,805 171,864	Total
						2,112,986 $ 7,584,592 2,788,075 2,640,526 12,131,639 1,279,854 86,039 7,354,145 13,552,588

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

~67~

     - 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 and six months ended June 30, 2024 and 2023, amounted to $5,577, $22,866, $140,520 and $22,130, respectively.

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

Non-financial assets June 30, 2024 Investment property December 31, 2023 Investment property June 30, 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) Significant non-observable inputs (level 3) 532,752 $ - $ 515,813 - 698,655 -
		- $ - -

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

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

~68~

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

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

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

b. Level 2

Inputs other than quoted market prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. Investments of the Group such as emerging stock without active markets, off-the-run issue of government bonds, corporate bonds, bank debentures, convertible corporate bonds, currency swaps, interest rate swaps, options, asset swaps, and most derivatives are all classified within level 2. For the six months ended June 30, 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 unlisted stocks is included in Level 3. For the six months ended June 30, 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)

~69~

(B) Hierarchy of fair value estimation of financial instruments

Recurring fair value Non-derivative financial instruments Assets Financial assets at fair value through profit or loss - current Stock investments Bond investments Others Financial assets at fair value through other comprehensive income - current Stock investments Bond investments Financial assets at fair value through profit or loss - non-current Stock investments Bond investments Others Financial assets at fair value through other comprehensive income - non-current Stock investments Liabilities Financial liabilities at fair value through profit or loss - current Derivative financial instruments Assets Financial assets at fair value through profit or loss - current Liabilities Financial liabilities at fair value through profit or loss - current		June30,2024	June30,2024
	Total 31,378,605 $ 26,657,545 5,058,858 644,322 3,067,590 1,574 49,316 66,500 1,381,269 6,854,391 4,863,241 7,250,094	Level 1 31,122,150 $ 8,727,964 5,058,858 644,322 3,067,590 - - - - 6,854,391 4,827,375 2,827,502	Level 2 114,865 $ 17,929,581 - - - - 49,316 - - - 35,866 4,422,592	Level3
				141,590 $ - - - - 1,574 - 66,500 1,381,269 - - -

~70~

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 - - -

~71~

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

~72~

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

		Six months ended June 30,2024	Six months ended June 30,2024	Six months ended June 30,2024	Six months ended June 30,2024
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		June 30
		Recorded in profit or loss	Recorded in other comprehensive income(loss)	Acquired/ Issued	Transfers into level 3	Sold/ Diposed or Settled	Transfers out from level 3
	140,165 $ 10,004 58,500 1,168,288	3,425 $ - $ - $ 8,430) ( - - 8,000 - - - 212,981 - Year ended December 31,2023			- $ - - -	2,000) ($ - - -	- $ - - -	141,590 $ 1,574 66,500 1,381,269
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) ( - Six months ended June 30,2023			- $ - - -	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		June 30
		Recorded in profit or loss	Recorded in other comprehensive income(loss)	Acquired/ Issued	Transfers into level 3	Sold/ Diposed or Settled	Transfers out from level 3
	140,494 $ 16,604 32,900 1,179,907	4,085 $ 8,113) ( 10,100 -	- $ - - 33,633	4,799 $ - 15,000 -	- $ - - -	- $ 2,174) ( - -	- $ - - -	149,378 $ 6,317 58,000 1,213,540

~73~

(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:

sed in Level 3 fair value measurement:

June 30,2024
Fair value
Valuation
technique
Significant unobservable
input
Financial assets at fair
value through profit or
loss - current
Price to book ratio
multiple
Price to earnings ratio
multiple
Discount for lack of
marketability
Latest transaction price
Financial assets at fair
value through profit or
loss - non-current
Venture capital shares
1,574
Net asset
value
Not applicable
Others
66,500
Net asset
value
Not applicable
Financial assets at fair
value through other
comprehensive income
- non-current
Market price net profit
after tax multiplier
Price to book ratio
multiple
Discount for lack of
marketability
Unlisted stocks
1,381,269
Market
approach
Unlisted stocks
141,590
$ Market
approach

Range (weighted
average)
Relationship of inputs to fair
value

2.11~6.28
21.68
25%
The higher the discount for
lack of marketability, the
lower the fair value
Not applicable
Not applicable
Not applicable
Not applicable
Not applicable
Not applicable
25.33~25.42
2.30
25%
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)

~74~

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 June 30,2023 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	6,317 58,000 149,378 $ 1,213,540	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	1.90~5.26 46.43 25% Not applicable Not applicable Not applicable 21.26~23.36 2.58~2.97 33%	The higher the multiple, the higher the fair value Price to book ratio will be judged on a case-by-case basis by different country, region, industries, markets, etc The higher the discount for lack of marketability, the lower the fair value Not applicable Not applicable Not applicable The higher the discount for lack of marketability, the lower the fair value The higher the multiple, the higher the fair value

~75~

(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 IFRS Accounting Standards.

(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%:

Item	Recognised inprofit or loss	Recognised inprofit or loss	Recognised in other comprehensive income	Recognised in other comprehensive income
June 30, 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 Item	Favourable change	Unfavourable change	Favourable change	Unfavourable change
	1,416 $ 1,416) ($ Not applicable Not applicable Not applicable Not applicable - - Recognised inprofit or loss		- $ - $ - - - - 13,813 13,813) ( Recognised in other comprehensive income
December 31, 2023 Financial assets at fair value through profit or loss - current Unlisted stocks Financial assets at fair value through profit or loss - non-current Venture capital shares Others Financial assets at fair value through other comprehensive income - non-current Unlisted stocks	Favourable change	Unfavourable change	Favourable change	Unfavourable change
	1,402 $ Not applicable Not applicable -	1,402) ($ Not applicable Not applicable -	- $ - - 11,683	- $ - - 11,683) (

~76~

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

6) Capital management

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

The Group calculates and reports the capital adequacy ratio according to “Rules Governing Securities Firms”. As of June 30, 2024, December 31, 2023 and June 30, 2023, the capital adequacy ratios were 287%, 299% and 311%, respectively, as required by the regulations.

~77~

7) Assets and liabilities of trust accounts

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

A. Balance sheet of trust accounts

BALANCE SHEETS JUNE 30, 2024 AND 2023

==> picture [383 x 242] intentionally omitted <==

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

Trust assets June 30, 2024 June 30, 2023
Bank savings $ 639,154 $ 604,885
Structured notes 2,893,675 1,014,164
Stock 1,850,496 1,358,528
Bond 1,537,058 882,526
Bonds sold under repurchase agreements 39,638 43,616
Fund 9,767,729 6,226,308
Accounts receivable 116,289 81,636
Total of trust assets $ 16,844,039 $ 10,211,663
Trust liabilities and equity June 30, 2024 June 30, 2023
Accounts payable $ 25,032 $ 15,808
Trust capital 14,321,989 9,525,110
Net income (loss) 2,822,471 600,720
Accumulated surplus (deficit) ( 325,453) 70,025
Total of trust liabilities and equity $ 16,844,039 $ 10,211,663
----- End of picture text -----

(Blank below)

~78~

B. Income statement of trust accounts

STATEMENTS OF INCOME SIX MONTHS ENDED JUNE 30, 2024 AND 2023

Six months ended June 30,2024 Trust income Interest income 68,358 $ Cash dividends received 6,309 Investment realised gains - bond 365 Investment realised gains - stock 2,036 Investment realised gains - fund 481,676 Investment realised gains - structured notes 14,077 Investment unrealised gains - bond 17,539 Investment unrealised gains - stock 962,745 Investment unrealised gains - fund 1,669,424 Investment unrealised gains - structured notes 37,899 Other income 6 Subtotal 3,260,434 Trust expenses Administrative expenses 787) ( Service fee 20,417) ( Investment realised losses - bond 4,602) ( Investment realised losses - stock 97) ( Investment realised losses - fund 26,750) ( Investment realised losses - structured notes 263) ( Investment unrealised losses - bond 108,316) ( Investment unrealised losses - stock 40,713) ( Investment unrealised losses - fund 217,269) ( Investment unrealised losses - structured notes 18,412) ( Income before income tax 2,822,808 Income tax expense 337) ( Net income 2,822,471 $ Item		Six months ended June 30,2023
	34,306 $ 20,816 182 6,169 111,683 7,837 5,247 491,484 499,856 1,952 5 1,179,537 735) ( 204) ( 668) ( 2,734) ( 44,392) ( - 108,395) ( 50,561) ( 366,022) ( 4,940) ( 600,886 166) ( 600,720 $

~79~

C. Property list of trust accounts

PROPERTY LIST OF TRUST ACCOUNTS JUNE 30, 2024 AND 2023

==> picture [383 x 143] intentionally omitted <==

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

Item June 30, 2024 June 30, 2023
Bank savings $ 639,154 $ 604,885
Structured notes 2,893,675 1,014,164
Fund 9,767,729 6,226,308
Bond 1,537,058 882,526
Bonds sold under repurchase agreements 39,638 43,616
Stock 1,850,496 1,358,528
Others 116,289 81,636
Total $ 16,844,039 $ 10,211,663
----- End of picture text -----

(Blank below)

~80~

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”.

==> picture [718 x 181] intentionally omitted <==

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

Article Calculation formula June 30, 2024 June 30, 2023 Standard Enforcement
Calculation Ratio Calculation Ratio
Stockholders’ equity 2,096,342 2,290,855 Met the
17 13.54 66.99 ≧ 1
(Total liability－futures trader’s equity) 154,797 34,197 requirement
Current assets 5,296,581 6,540,442 Met the
17 34.22 191.26 ≧ 1
Current liabilities 154,797 34,197 requirement
Stockholders’ equity 2,096,342 2,290,855 ≧ 60% Met the
22 524.09% 572.71%
Minimum paid-in capital 400,000 400,000 ≧ 40% requirement
Adjusted net capital 1,062,141 1,434,090 ≧ 20%
Met the
22 Total amount of customer margins required 54.61% 91.56%
1,944,980 1,566,316 ≧ 15% requirement
for the open positions of futures traders
----- End of picture text -----

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	June 30,2024	June 30,2024	June 30,2023	June 30,2023	Standard	Enforcement
		Calculation	Ratio	Calculation	Ratio
17	Stockholders’ equity (Total liability－futures trader’s equity)	2,886,666 488,737	5.91	2,672,635 369,748	7.23	`≧`1	Met the requirement
17	Current assets Current liabilities	29,765,080 28,348,710	1.05	28,669,150 27,383,837	1.05	`≧`1	Met the requirement
22	Stockholders’ equity Minimumpaid-in capital	2,886,666 645,000	447.55%	2,672,635 645,000	414.36%	`≧`60% `≧`40%	Met the requirement
22	Adjusted net capital Total amount of customer margins required for the open positions of futures traders	2,537,816 5,848,650	43.39%	2,304,597 4,672,565	49.32%	`≧`20% `≧`15%	Met the requirement

~81~

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)

~82~

13. OTHER DISCLOSURE ITEMS

1) Information about significant transactions

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

==> picture [715 x 202] intentionally omitted <==

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

Details of transactions (Six months ended June 30, 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 4,300,065 Note 4 2.27%
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 3,000 Note 4 0.00%
0 President Securities Corp. President Futures Corp. 1 Deposit-in 16,000 Note 4 0.01%
0 President Securities Corp. President Futures Corp. 1 Other receivables 228,223 Note 4 0.12%
0 President Securities Corp. President Futures Corp. 1 Other payables 1,905 Note 4 0.00%
0 President Securities Corp. President Futures Corp. 1 Equity for each customer in the account 9,852 Note 4 0.01%
0 President Securities Corp. President Futures Corp. 1 Future commission revenue 17,905 Note 4 0.24%
0 President Securities Corp. President Futures Corp. 1 Clearing charges 12,256 Note 4 0.16%
0 President Securities Corp. President Futures Corp. 1 Other non-operating revenues - Compensation of directors 5,951 Note 4 0.08%
0 President Securities Corp. President Capital Management Corp. 1 Expense from investment advisory 25,322 Note 4 0.33%
0 President Securities Corp. President Capital Management Corp. 1 Other non-operating revenues - Rent revenue 1,973 Note 4 0.03%
----- End of picture text -----

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

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

~83~

company and subsidiaries or between subsidiaries refer to the same transaction, it is not required to disclose twice. For example, if the parent company has already disclosed its transaction with a subsidiary, then the subsidiary is not required to disclose the transaction; for transactions between two subsidiaries, if one of the subsidiaries has disclosed the transaction, then the other is not required to disclose the transaction.) 1. Parent company to subsidiaries.

Subsidiaries to parent company.
Subsidiaries to subsidiaries.

Note 3 ： The calculation basis of the trading amount accounting for the total consolidated net revenues or assets is that the account ending balance is divided by the total consolidated assets if it is attributed to the balance sheet accounts, and the accumulated trading amount of the interim period is divided by the total consolidated net revenues if it is attributed to the profit or loss accounts. Note 4 ： All the prices provided between related parties were traded by contracts.

Note 5 ： Based on materiality, only the amounts of the transactions that were above $1 million would be shown in the table. 2) Related information of investee companies

A. Related information of investee companies

Name of the investor	Name of the investee company	Location	Date of registration	Reference number and the date of approval letter issued byFSC	Major operatingactivities	Balance on June 30,2024 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 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 (Note 4) 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%	2,791,203 $ 300,836 857,959 -	406,628 $ 43,527 199 -	176,588 $ 9,652) ( 996 -	170,741 $ 9,616) ( 996 -	222,722 $ - - -	Subsidiary of the Company Subsidiary of the Company Subsidiary of the Company Subsidiary of the Company

~84~

Original investment Ending Balance Reference number Net income Investment and the date of Balance on Revenue of (loss) of income (loss) Name of the Name of the Date of approval letter Major Balance on December 31, investee investee recognised by Cash investor investee company Location registration issued by FSC operating activities June 30, 2024 2023 Shares Percentage Book vlaue company company the Company dividends Notes President Uni-President Taipei 1992.09.03 2000.07.19 (89) Investment Trust $ 667,622 $ 667,622 14,904,630 42.46% $ 763,095 $ 1,091,354 $ 403,427 $ 171,309 $ 219,218 Associates Securities Corp. Asset Management Tai-Cai-Zheng (2) Corp. Letter No.56407 President President Insurance Taipei 2008.04.29 (Note2) Insurance Agent 10,000 10,000 1,000,000 100% 69,199 100,756 45,496 45,504 41,621 Subsidiary of Securities Corp. Agency Corp. the Company President PSC Venture Taipei 2013.10.29 2013.08.08 JingConsultation of 300,000 300,000 30,000,000 100% 254,152 11,020 7,940 7,941 - Subsidiary of Securities Corp. Capital Investment Guan-Zheng-Chuan investment the Company Limited Company Letter management and No.1020028529 venture capital; other unprohibited or unrestricted businesses beyond the permit President Uni-President Taipei 1992.09.03 2000.07.19 (89) Investment Trust 478 478 12,000 0.03% 620 1,091,354 403,427 138 176 Associates Insurance Asset Management Tai-Cai-Zheng (2) Agency Corp. Corp. Letter No.56407

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

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

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

Note 3: Subsidaries 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 4: President Securities (HK) Ltd. has completed the deregistration of securities trading-related licenses on March 27, 2024, and has no securities-related business activities.

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.

~85~

H. Accordance with Jing-Guan-Zheng-Chuang Letter No. 100703209011, the Company is required to disclose details of businesses run by foreign enterprises that were incorporated in the countries identified as non-signatories to the IOSCO MMoU or have not obtained securities or futures license of signatories to the IOSCO MMoU:
a) Revenue from engagement in consultation on assets management business, service contents and litigation: None.
b) Balance sheets

PRESIDENT WEALTH MANAGEMENT (HK) LTD. BALANCE SHEETS JUNE 30, 2024 AND 2023

Expressed in HK dollars

		June 30,	2024			June 30,	2023
Assets		Amount		%		Amount		%
Current assets	$	15,428,111		100	$	15,428,111			100
Stockholders’ current account		15,428,111		100		15,428,111			100
Total current assets	$	15,428,111		100	$	15,428,111			100
Total assets
Liabilities and shareholders’equity
Total liabilities	$	-		-	$	-			-
Shareholders’equity
Share capital		23,400,000		152		23,400,000			152
Retained earnings
Accumulated deficit	(	7,971,889)	(	52)	(	7,971,889)	(		52)
Total shareholders’ equity		15,428,111		100		15,428,111			100
Total liabilities and shareholders’ equity	$	15,428,111		100	$	15,428,111			100

~86~

PRESIDENT SECURITIES(HK) LTD.

BALANCE SHEETS

JUNE 30, 2024 AND 2023

Expressed in HK dollars

Current assets
Cash and cash equivalents
Other receivables
Prepayments
Total current assets
Non-current assets
Property and equipment, net
Right-of-use assets
Other assets - non-current
Total non-current assets
Total Assets
Current liabilities
Accounts payable
Collections on behalf of third parties
Other payables
Current lease liabilities
Total Liabilities
Shareholders’ equity
Share capital
Retained earnings
Accumulated surplus (deficit)
Total shareholders’ equity
Total liabilities and shareholders’ equity
Assets
Liabilities and shareholders’equity

Amount
%
Amount
%
203,937,555
$ 99
210,064,581
$ 99
2,538,512
1
2,133,929
1
100,870
-
55,721
-
206,576,937
100
212,254,231
100
-
-
8,988
-
232,990
-
223,095
-
91,950
-
480,000
-
324,940
-
712,083
-
206,901,877
$ 100
212,966,314
$ 100
-
$ -
2,997,559
$ 2
-
-
720
-
155,466
-
880,887
-
258,462
-
3,654,719
2
413,928
-
7,533,885
4
192,600,000
93
192,600,000
90
13,643,938
7
16,719,420
8
244,011
-
3,886,991)
(
2)
(
206,487,949
100
205,432,429
96
206,901,877
$ 100
212,966,314
$ 100
June 30,2023
June 30,2024

Amount
203,937,555
$ 2,538,512
100,870
206,576,937
-
232,990
91,950
324,940
206,901,877
$ -
$ -
155,466
258,462
413,928
192,600,000
13,643,938
244,011
206,487,949
206,901,877
$

~87~

c) Statements of comprehensive income

PRESIDENT WEALTH MANAGEMENT (HK) LTD. STATEMENTS OF COMPREHENSIVE INCOME SIX MONTHS ENDED JUNE 30, 2024 AND 2023

Expenditures and expenses Other operating expenses Total expenditures and expenses Non-operating gains and losses Other gains and losses Profit before tax Income tax expense Net income Accounts	Amount % - $ - - - - - - - - - - $ - Six months ended June 30,2024	Amount % - $ - - - - - - - - - - $ - Six months ended June 30,2024
		-
		- -
		-

		Expressed in HK dollars	Expressed in HK dollars	Expressed in HK dollars
	Six	months ended	June	30,2023
		Amount		%
($		4,939)	(	11)
(		4,939)	(	11)
		51,220		111
		46,281		100
		-		-
$		46,281		100

(Blank below)

~88~

PRESIDENT SECURITIES(HK) LTD. STATEMENTS OF COMPREHENSIVE SIX MONTHS ENDED JUNE 30, 2024 AND 2023

								Expressed in HK dollars	Expressed in HK dollars
			Six months ended	June	30,2024		Six	months ended June 30,2023
	Accounts		Amount		%			Amount	%
Revenue
Interest income		$	253		-	$		1,956	-
Other operating income			48,542		20	(		12,684)	-
Total revenue			48,795		20	(		10,728)	-
Expenditures and expenses
Handling charges			-		-	(		462)	-
Financial costs		(	6,483)	(	3)	(		7,015)	-
Other operating expenses		(	4,044,787)	(	1,657)	(		7,693,668)	198
Total expenditures and expenses		(	4,051,270)	(	1,660)	(		7,701,145)	198
Non-operating gains and losses
Other gains and losses			4,246,486		1,740			3,824,882	98
Loss before tax			244,011		100	(		3,886,991)	100
Income tax expense			-		-			-	-
Net income (loss)		$	244,011		100	($		3,886,991)	100

(Blank below)

~89~

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

4) Disclosure of investment in Mainland China

a) Information of investment in Mainland China

==> picture [713 x 198] intentionally omitted <==

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

Amount remitted from Taiwan to
Accumulated
Mainland China/ Amount Accumulated Investment income Accumulated
amount of remitted back to Taiwan for the amount of Ownership (loss) recognized by Book value of amount of
Investee in Main business Paid-in capital Investment remittance from six months remittance from Net income of held by the the Company for investments in investment income
Mainland activities (Note 4) method Taiwan to ended June 30, 2024 Taiwan to investee as of Company the six months Mainland China as remitted back to
China (Note 1) Mainland China June 30, 2024 (direct or
Remitted to Mainland China as ended June 30, of June 30, 2024 Taiwan as of June
as of January 1, Remitted back indirect)
Mainland of June 30, 2024 2024 (Note 2) 30, 2024
2024 to Taiwan
China
($ 67,765)
The financial
statements that are
Securities Directly audited by
Jin Yuan
brokering, securities invest in a international
President
dealing, securities $ 6,667,500 company in $ 3,138,169 $ - $ - $ 3,138,169 ($ 138,296) 49% accounting firm $ 2,618,792 $ -
Securities
underwriting and Mainland which has
Co., Ltd.
sponsoring service China cooperative
relationship with
accounting firm in
R.O.C.
----- End of picture text -----

b) Limitation on investment in Mainland China (expressed in thousands of dollars)

Company name	Accumulated amount of remittance from Taiwan to Mainland China as of June 30, 2024	Investment amount approved by the Investment Commission of the Ministry of Economic Affairs (MOEA)	Ceiling on investments in Mainland China imposed by the Investment Commission of MOEA
Jin Yuan President Securities Co., Ltd.	3,138,169 $	3,138,169 $	$ 20,269,420

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.

~90~

Note 2: In the ‘Investment income (loss) recognized by the Company for the six months ended June 30, 2024’ column:
(1) It should be indicated if the investee was still in the incorporation arrangements and had not yet any profit during this period.
(2) Indicate the basis for investment income (loss) recognition in the number of one of the following three categories:
- a. The financial statements that are audited and attested by international accounting firm which has cooperative relationship with accounting firm in R.O.C.
- b. The financial statements that are audited and attested by R.O.C. parent company's CPA.
- c. Others.

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

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

5) Major shareholder information

Major shareholder information
Major shareholder	Number of shares held(thousands)	Shareholdingratio
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.

~91~

14. SEGMENTS INFORMATION

1) General information

Financial information by the Group’s segments is disclosed in accordance with IFRS 8. Management has determined the reportable operating segments based on the reports reviewed by the Chief Operating Decision-Maker (CODM) that are used to make strategic decisions. The Group’s operating segments are classified into Brokerage, Quantitative Trading, Proprietary Trading, 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. 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.
D. 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.
E. Reinvestment segment: companies reinvested by the consolidated entities.
F. Other operating segments include Capital Market segment, 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”.

~92~

3) Profit or loss of segments information

			Three months ended June 30,2024	Three months ended June 30,2024	Three months ended June 30,2024
Brokerage segment	Quantitative Tradingsegment	Proprietary Tradingsegment		Financial Instrument segment	Reinvestment segment		Other operating segments		Others 89,328 $ 86,205 $	Total
1,437,869 $ 481,294 $	542,172 $ 198,544 $	549,690 $ 407,355 $	442,148 $ 297,226 $ 188,135 $ 141,562 $ Three months ended June 30,2023			241,928 $ 6,138) ($				3,600,361 $
										1,496,957 $

Brokerage segment	Quantitative Tradingsegment	Proprietary Tradingsegment		Financial Instrument segment	Reinvestment segment		Other operating segments		Others 124,542 $ 22,305 $	Total
947,009 $ 227,972 $	281,778 $ 112,437 $	953,884 $ 796,568 $		186,931 $ 237,155 $ 42,220 $ 125,525 $ Six months ended June 30,2024		132,237 $ 86,350) ($				2,863,536 $
										1,240,677 $

Brokerage segment	Quantitative Tradingsegment	Proprietary Tradingsegment		Financial Instrument segment	Reinvestment segment		Other operating segments	Others 252,996 $ 14,954) ($		Total
2,662,050 $ 862,952 $	1,064,888 $ 488,194 $	1,757,369 $ 1,415,993 $		742,154 $ 562,130 $ 301,941 $ 277,088 $ Six months ended June 30,2023			556,890 $ 9,939 $			7,598,477 $
										3,341,153 $

Brokerage segment	Quantitative Tradingsegment	Proprietary Tradingsegment		Financial Instrument segment	Reinvestment segment		Other operating segments		Others 92,114 $ 18,572 $	Total
1,744,206 $ 354,432 $	505,681 $ 211,493 $	958,665 $ 738,275 $		285,257 $ 39,652 $	486,051 $ 219,925 $		657,968 $ 230,926 $			4,729,942 $
										1,813,275 $

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

~93~

Note 2: The Group 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.

(Blank below)

~94~

AI assistant

PSC — Interim / Quarterly Report 2024

52209_rns_2024-12-20_6f21407a-6b02-469d-81b7-96595cf771ad.pdf

PRESIDENT SECURITIES CORPORATION AND

SUBSIDIARIES

CONSOLIDATED FINANCIAL STATEMENTS AND

INDEPENDENT AUDITORS’ REPORT TRANSLATED FROM CHINESE

Opinion

Basis for opinion

Key audit matters

Fair value measurement of unlisted stocks without active market

Description

How our audit addressed the matter

Other matter – Parent company only financial reports

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

Auditors’ responsibilities for the audit of the consolidated financial statements

Independent Auditors

August 28, 2024

PRESIDENT SECURITIES CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS JUNE 30, 2024, DECEMBER 31, 2023 AND JUNE 30, 2023

PRESIDENT SECURITIES CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS JUNE 30, 2024, DECEMBER 31, 2023 AND JUNE 30, 2023

PRESIDENT SECURITIES CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME THREE MONTHS AND SIX MONTHS ENDED JUNE 30, 2024 AND 2023

PRESIDENT SECURITIES CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME THREE MONTHS AND SIX MONTHS ENDED JUNE 30, 2024 AND 2023

PRESIDENT SECURITIES CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY SIX MONTHS ENDED JUNE 30, 2024 AND 2023

PRESIDENT SECURITIES CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

SIX MONTHS ENDED JUNE 30, 2024 AND 2023

PRESIDENT SECURITIES CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

SIX MONTHS ENDED JUNE 30, 2024 AND 2023

PRESIDENT SECURITIES CORPORATION AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

SIX MONTHS ENDED JUNE 30, 2024 AND 2023

1. HISTORY AND ORGANIZATION

2) Effect of new issuances of or amendments to IFRS Accounting Standards effect as endorsed

by the FSC but not yet adopted by the Group

4. SUMMARY OF MATERIAL ACCOUNTING POLICIES

1) Compliance statement

2) Basis of preparation

3) Basis of consolidation

B. Subsidiaries included in the consolidated financial statements:

4) Employee benefits

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

6. DETAILS OF SIGNIFICANT ACCOUNTS

1) Cash and cash equivalents

2) Financial assets at fair value through profit or loss

3) Financial assets at fair value through other comprehensive income

4) Bonds purchased under resale agreements

5) Margin loans receivable

6) Customer margin account

8) Other receivables

9) Other current assets

10) Transfer of financial assets

11) Offsetting financial assets and financial liabilities

B. The offsetting of financial assets and financial liabilities are set as follows:

(1)Financial assets

(2) Financial liabilities

12) Investments accounted for under the equity method

Balance sheet

Balance sheet

Statement of comprehensive income

13) Property and equipment

－ 14) Leasing arrangements lessee

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

15) Leasing arrangements – lessor

16) Investment property

17) Intangible assets

18) Other non-current assets

19) Short-term loans

20) Commercial papers payable

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

22) Bonds sold under repurchase agreements

23) Accounts payable

24) Other payables

25) Other financial liabilities - current

26) Other liabilities - non-current

27) Pension plan

28) Equity

C. Legal reserve

D. Special reserve

30) Brokerage handling fee revenue

31) Revenues from underwriting business

PSC Interim / Quarterly Report 2024

`－` 14) Leasing arrangements lessee