PSC - Interim / Quarterly Report 2024

PRESIDENT SECURITIES CORPORATION AND

SUBSIDIARIES

CONSOLIDATED FINANCIAL STATEMENTS AND

INDEPENDENT AUDITORS’ REVIEW REPORT SEPTEMBER 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.

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INDEPENDENT AUDITORS’ REVIEW REPORT TRANSLATED FROM CHINESE

PWCR24001983

To the Board of Directors and Shareholders of PRESIDENT SECURITIES CORPORATION

Introduction

We have reviewed the accompanying consolidated balance sheets of President Securities Corporation and subsidiaries as at September 30, 2024 and 2023, and the related consolidated statements of comprehensive income for the three months and nine months then ended, as well as the consolidated statements of changes in equity and of cash flows for the nine months then ended and notes to the consolidated financial statements, including a summary of material accounting policies. Management is responsible for the preparation and fair presentation of these consolidated financial statements in accordance with “Regulations Governing the Preparation of Financial Reports by Securities Firms”, “Regulations Governing the Preparation of Financial Reports by Futures Commission Merchants” and International Accounting Standard 34, “Interim Financial Reporting” that came into effect as endorsed by the Financial Supervisory Commission. Our responsibility is to express a conclusion on these consolidated financial statements based on our reviews.

Scope of Review

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

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Basis for Qualified Conclusion

As explained in Notes 4(3) and 6(12), the financial statements of certain insignificant consolidated subsidiaries and investments accounted for under the equity method were not reviewed by independent auditors. Those statements reflect total assets of $1,525,365 thousand and $1,548,161 thousand, constituting 0.78% and 1.21% of the consolidated total assets, and total liabilities of $59,882 thousand and $50,979 thousand, constituting 0.04% and 0.05 % of the consolidated total liabilities as at September 30, 2024 and 2023, and total comprehensive income (loss) of ($10,312) thousand, ($4,678) thousand, $12,203 thousand and $7,890 thousand, constituting (1.50%), (0.55%), 0.29% and 0.32% of the consolidated total comprehensive income for the three months and nine months then ended. The balance of such investments accounted for under the equity method as at September 30, 2024 and 2023 were $852,964 thousand and $741,468 thousand, respectively; President Securities Corporation and subsidiaries’ share of comprehensive income of associates and joint ventures accounted for under the equity method, including share of profit or loss of associates and joint ventures accounted for under the equity method and share of other comprehensive income of associates and joint ventures accounted for under the equity method, for the three months and nine months then ended were $89,248 thousand, $61,907 thousand, $275,150 thousand, and $161,275 thousand, constituting 12.97%, 7.32%, 6.46% and 6.51% of total consolidated comprehensive income, respectively.

Qualified Conclusion

Except for the adjustments to the consolidated financial statements, if any, as might have been determined to be necessary had the financial statements of certain insignificant consolidated subsidiaries and investments accounted for under the equity method been reviewed by independent auditors, that we might have become aware of had it not been for the situation described above, based on our reviews, nothing has come to our attention that causes us to believe that the accompanying consolidated financial statements do not present fairly, in all material respects, the consolidated financial position of President Securities Corporation and subsidiaries as at September 30, 2024 and 2023, and of its consolidated financial performance and its consolidated cash flows for the three months and nine months

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then ended 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.

Lin, Se-Kai

Independent Auditors

Kuo, Puo-Ju

For and on behalf of PricewaterhouseCoopers, Taiwan November 6, 2024

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

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

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

(Expressed in thousands of New Taiwan dollars)

Assets	Notes	September 30, 2024 AMOUNT % `$` `8,606,548` `5` `66,707,331` `34` `732,093` `-` `55,045` `-` `21,625,807` `11` `2,270` `-` `1,891` `-` `17,036,699` `9` `33,043,105` `17` `661,732` `-` `610,153` `-` `1,128` `-` `32,837,310` `17` `1,060` `-` `51,483` `-` `81,948` `-` `160` `-` `3,918,860` `2` `185,974,623` `95` `117,742` `-` `1,395,127` `1` `3,502,522` `2` `2,610,500` `1` `213,331` `-` `183,086` `-` `282,415` `-` `131,553` `-` `1,571,143` `1` `10,007,419` `5` `$` `195,982,042` `100`	December 31, 2023 AMOUNT % `$` `5,509,978` `4` `53,698,997` `38` `3,078,680` `2` `-` `-` `17,395,242` `12` `1,982` `-` `1,476` `-` `9,247,169` `7` `20,526,117` `15` `451,397` `-` `475,705` `-` `1,475` `-` `19,095,101` `14` `1,191` `-` `49,546` `-` `74,632` `-` `125` `-` `1,725,872` `1` `131,334,685` `93` `118,280` `-` `1,168,288` `1` `3,412,924` `3` `2,645,077` `2` `132,026` `-` `184,153` `-` `292,437` `-` `130,674` `-` `1,246,679` `1` `9,330,538` `7` `$` `140,665,223` `100`	September 30, 2023	September 30, 2023
		AMOUNT `$` `8,606,548` `66,707,331` `732,093` `55,045` `21,625,807` `2,270` `1,891` `17,036,699` `33,043,105` `661,732` `610,153` `1,128` `32,837,310` `1,060` `51,483` `81,948` `160` `3,918,860` `185,974,623` `117,742` `1,395,127` `3,502,522` `2,610,500` `213,331` `183,086` `282,415` `131,553` `1,571,143` `10,007,419` `$` `195,982,042`	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 `$` `5,723,966` `44,013,457` `3,302,669` `-` `15,460,334` `529` `441` `8,025,878` `19,544,164` `335,988` `1,621,791` `562` `19,292,297` `1,352` `52,390` `83,367` `99` `1,237,647` `118,696,931` `118,058` `1,260,826` `3,442,696` `2,566,334` `129,896` `264,727` `270,276` `99,120` `1,589,121` `9,741,054` `$` `128,437,985`	%
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(48) 6(18)				`5` `34` `3` `-` `12` `-` `-` `6` `15` `-` `1` `-` `15` `-` `-` `-` `-` `1`
					`92`
					`-` `1` `3` `2` `-` `-` `-` `-` `2`
					`8`
					`100`

(Continued)

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

(Expressed in thousands of New Taiwan dollars)

Liabilities and Equity	Notes	September 30, 2024 AMOUNT % `$` `9,304,150` `5` `31,122,534 16` `13,407,987` `7` `17,800,121` `9` `827,949` `-` `1,083,714` `-` `3,088,615` `2` `32,966,331 17` `1,861,046` `1` `30,993,322 16` `2,684` `-` `1,939,325` `1` `2,551,675` `1` `13,965,948` `7` `169,590` `-` `69,390` `-` `138,121` `-` `161,292,502 82` `15,568` `-` `139,883` `-` `25,828` `-` `37,617` `-` `218,896` `-` `161,511,398 82` `14,558,313` `8` `91,261` `-` `4,233,889` `2` `9,803,068` `5` `3,616,364` `2` `2,069,193` `1` `34,372,088 18` `98,556` `-` `34,470,644 18` `$` `195,982,042 100`	December 31, 2023 AMOUNT % `$` `6,944,759` `5` `21,130,934` `15` `10,471,312` `7` `19,140,506` `14` `921,093` `1` `1,163,504` `1` `1,632,008` `1` `20,497,894` `14` `852,083` `1` `17,091,415` `12` `3,642` `-` `614,380` `-` `2,259,582` `2` `5,224,019` `4` `265,324` `-` `58,542` `-` `84,055` `-` `108,355,052` `77` `15,507` `-` `68,894` `-` `19,173` `-` `64,489` `-` `168,063` `-` `108,523,115` `77` `14,558,313` `10` `91,261` `-` `3,959,127` `3` `9,253,546` `7` `2,752,936` `2` `1,434,309` `1` `32,049,492` `23` `92,616` `-` `32,142,108` `23` `$` `140,665,223` `100`	September 30, 2023	September 30, 2023
		AMOUNT `$` `9,304,150` `31,122,534` `13,407,987` `17,800,121` `827,949` `1,083,714` `3,088,615` `32,966,331` `1,861,046` `30,993,322` `2,684` `1,939,325` `2,551,675` `13,965,948` `169,590` `69,390` `138,121` `161,292,502` `15,568` `139,883` `25,828` `37,617` `218,896` `161,511,398` `14,558,313` `91,261` `4,233,889` `9,803,068` `3,616,364` `2,069,193` `34,372,088` `98,556` `34,470,644` `$` `195,982,042`	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 `$` `6,516,364` `18,985,380` `8,404,336` `9,768,313` `956,748` `1,282,854` `1,066,516` `19,510,939` `403,838` `18,488,675` `3,804` `695,066` `1,895,394` `8,318,689` `180,111` `60,854` `97,586` `96,635,467` `15,485` `61,452` `10,842` `5,366` `93,145` `96,728,612` `14,558,313` `91,261` `3,959,127` `9,253,546` `2,455,984` `1,298,087` `31,616,318` `93,055` `31,709,373` `$` `128,437,985`	%
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(48) 6(26) 6(28) 6(28) 6(28)(29)				`5` `15` `7` `8` `1` `1` `1` `15` `-` `14` `-` `1` `1` `6` `-` `-` `-`
					`75`
					`-` `-` `-` `-`
					`-`
					`75`
					`12` `-` `3` `7` `2` `1`
					`25`
					`-`
					`25`
					`100`

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

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PRESIDENT SECURITIES CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME THREE MONTHS AND NINE MONTHS ENDED SEPTEMBER 30, 2024 AND 2023

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

Items	Notes	Three months ended September 30	Three months ended September 30
		2024	2023
400000 Revenues 401000 Brokerage handling fee revenue 404000 Revenues from underwriting business 406000 Net gain (loss) on wealth management 410000 Net gain (loss) on sale of operating securities 421100 Revenue from providing agency service for stock affairs 421200 Interest income 421300 Dividend income 421500 Net valuation gain (loss) on operating securities at fair value through profit or loss 421600 Net gain (loss) on covering of borrowed securities and bonds with resale agreements-short sales 421610 Net valuation gain (loss) on borrowed securities and bonds with resale agreements-short sales at fair value through profit or loss 421750 Net realized gain on financial liabilities measured at fair value through other comprehensive income 422000 Net gain (loss) on issuance of ETNs 422100 Administrative and handling fee revenues from issuance of ETNs 422200 Net gain (loss) from issuance of call (put) warrants 424400 Net gain (loss) from derivatives 425300 Expected credit impairment loss and reversal of impairment gain 428000 Other operating income Total revenues 500000 Expenditures and expenses 501000/ 502000/ 503000 Handling charges 507000 ETNs administrative expenses 521200 Financial costs 524100 Futures commission expense 524300 Expense of clearing and settlement 528000 Other operating expenditure 531000 Employee benefits expense 532000 Depreciation and amortization 533000 Other operating expenses Total expenditures and expenses

(Continued)

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PRESIDENT SECURITIES CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME THREE MONTHS AND NINE MONTHS ENDED SEPTEMBER 30, 2024 AND 2023

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

Items	Threemonths ended September 30	Threemonths ended September 30	Threemonths ended September 30	Ninemonths ended September 30	Ninemonths ended September 30	Ninemonths ended September 30
	2024	% `13` `3` `9` `25` `5) (` `20` `1` `-` `1` `4 (` `6` `26` `20` `-` `26` `-` `0.37` `0.37`	2023	2024	% `31` `2` `6` `39` `3) (` `36` `5` `-` `1` `- (` `6` `42` `36` `-` `42` `-` `2.48` `2.47`	2023
			AMOUNT `$` `621,204` `37,625` `204,278` `863,107` `37,166) (` `$` `825,941` `$` `11,934` `3,216` `102,677` `98,499) (` `$` `19,328` `$` `845,269` `$` `822,637` `$` `3,304` `$` `840,875` `$` `4,394` `$`	AMOUNT `$` `3,138,835` `180,678` `684,485` `4,003,998` `384,863 ) (` `$` `3,619,135` `$` `473,319` `11,301` `148,694` `5,402` `$` `638,716` `$` `4,257,851` `$` `3,609,409` `$` `9,726` `$` `4,244,293` `$` `13,558` `$`		AMOUNT `$` `2,018,820` `87,464` `570,098` `2,676,382` `217,568) (` `$` `2,458,814` `$` `130,609` `6,996` `27,196` `148,089) (` `$` `16,712` `$` `2,475,526` `$` `2,450,660` `$` `8,154` `$` `2,465,000` `$` `10,526` `$`
Operating profit 601000 Share of the profit or loss of associates and joint ventures accounted for under the equity method 602000 Other gains and losses 902001Profit before tax 701000 Income tax (expense) benefit 902005Net income Other comprehensive income Components of other comprehensive income that will not be reclassified to profit or loss 805540 Net unrealized gain (loss) from investments in equity instruments at fair value through other comprehensive income 805550 Other comprehensive gain (loss) of associates and joint ventures accounted for under the equity method Items may be reclassified to profit of loss subsequently 805610 Translation gain (loss) on the financial statements of foreign operating entities 805615 Net unrealized gain (loss) from investments in debt instruments at fair value through other comprehensive income 805000 Current other comprehensive income (loss) (post-tax) 902006Total current comprehensive income Income attributable to: 913100 Parent company 913200 Non-controlling interests Current comprehensive income (loss) attributable to: 914100 Parent company 914200 Non-controlling interests Earnings per share 975000 Basic earnings per share (in dollars) 985000 Diluted earnings per share (in dollars)
	`$`		`$`	`$`		`$`

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

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

(Expressed in thousands of New Taiwan dollars)

Notes				Equity attributable	Equity attributable	to owners of the parent	to owners of the parent	to owners of the parent	to owners of the parent			Non-controlling interests
	Common stock	Capital reserve		R	etained earnings		Other equityinterest				Total
			Legal reserve		Special reserve	Unappropriated earnings	Exchange differences on translation of foreign financial statements	a f	Unrealised gain or loss on financial ssets measured at air value through other comprehensive income
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` `2,450,660` `-` `2,450,660` `(` `81,278` `)` `(` `162,557` `)` `(` `567,774` `)` `-` `$ 2,455,984` `$ 2,752,936` `3,609,409` `-` `3,609,409` `(` `274,762` `)` `(` `549,522` `)` `(` `1,921,697` `)` `-` `$ 3,616,364`	`$` `103,010` `-` `27,196` `27,196` `-` `-` `-` `-` `$` `130,206` `$` `43,973` `-` `148,694` `148,694` `-` `-` `-` `-` `$` `192,667`	`$ 1,180,737` `-` `(` `12,856 )` `(` `12,856 )` `-` `-` `-` `-` `$ 1,167,881` `$ 1,390,336` `-` `486,190` `486,190` `-` `-` `-` `-` `$ 1,876,526`		`$ 29,719,092` `2,450,660` `14,340` `2,465,000` `-` `-` `(` `567,774` `)` `-` `$ 31,616,318` `$ 32,049,492` `3,609,409` `634,884` `4,244,293` `-` `-` `(` `1,921,697` `)` `-` `$ 34,372,088`		`$` `87,396` `8,154` `2,372` `10,526` `-` `-` `-` `(` `4,867` `)` `$` `93,055` `$` `92,616` `9,726` `3,832` `13,558` `-` `-` `-` `(` `7,618` `)` `$` `98,556`	`$ 29,806,488` `2,458,814` `16,712` `2,475,526` `-` `-` `(` `567,774 )` `(` `4,867 )` `$ 31,709,373` `$ 32,142,108` `3,619,135` `638,716` `4,257,851` `-` `-` `(` `1,921,697 )` `(` `7,618 )` `$ 34,470,644`

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

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PRESIDENT SECURITIES CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

NINE MONTHS ENDED SEPTEMBER 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 Nine months ended September 30
Notes
2024
2023
$
4,003,998 $
2,676,382
6(2)(34)
349,735 (
538,579 )
6(36)
(
59,558 )
869,275
6(40)
(
16,403 )
12,935
6(45)
188,725
175,041
6(45)
74,106
57,582
6(43)
1,172,029
645,366
6(33)(47)
(
2,107,914 ) (
1,362,991 )
(
776,470 ) (
3,645,935 )
6(12)
(
180,678 ) (
87,464 )
6(13)
36
76
(
52 ) (
1 )
6(47)
1,078
317
(
13,356,597 ) (
19,097,874 )
2,719,781 (
757,779 )
(
55,045 )
-
(
4,211,133 ) (
4,940,374 )
(
288 )
93,607
(
415 )
71,958
(
7,789,530 ) (
3,930,970 )
(
12,516,988 )
1,239,091
(
210,335 )
823,589
(
134,448 )
1,755,839
347
201
(
13,238,252 ) (
9,077,690 )
131 (
157 )
(
1,937 ) (
13,822 )
(
10,218 ) (
12,272 )
(
2,192,988 )
713,314
2,996,233 (
1,622,259 )
(
1,340,385 )
2,802,889
(
93,144 ) (
852,608 )
(
79,790 ) (
527,108 )
1,456,607 (
740,075 )
12,468,437 (
1,252,647 )
1,008,963
137,912
13,625,307
7,599,555
(
958 )
1,528
1,324,945 (
49,654 )
276,895
297,439
8,741,929
5,534,603
54,066
14,373

(Continued)

~10~

PRESIDENT SECURITIES CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

NINE MONTHS ENDED SEPTEMBER 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
Distribution of cash dividends
Changes in non-controlling interest
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 Nine months ended September 30
Notes
2024
2023
( $
7,910,178 ) ( $
22,987,387 )
1,918,735
1,283,781
976,870
3,795,726
(
474,856 ) (
192,380 )
(
5,489,429 ) (
18,100,260 )
6(13)
(
55,962 ) (
36,443 )
6(17)
(
17,969 ) (
18,389 )
(
313,029 ) (
290,137 )
(
95,775 ) (
86,290 )
(
482,735 ) (
431,259 )
2,359,391
6,241,364
10,000,000
13,170,000
(
26,872 ) (
2,562 )
(
58,346 ) (
60,798 )
(
1,190,892 ) (
599,650 )
(
1,921,697 ) (
567,774 )
(
7,618 ) (
4,867 )
9,153,966
18,175,713
(
85,232 ) (
114,801 )
3,096,570 (
470,607 )
5,509,978
6,194,573
$
8,606,548 $
5,723,966

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

~11~

PRESIDENT SECURITIES CORPORATION AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS NINE MONTHS ENDED SEPTEMBER 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 September 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 1,756 and 1,685 as of September 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 reported to the Board of Directors on November 6, 2024.
APPLICATION OF NEW STANDARDS, AMENDMENTS AND INTERPRETATIONS 1) Effect of the adoption of new issuances of or amendments to International Financial Reporting Standards (“IFRS[®] ”) Accounting Standards that came into effect as endorsed by the Financial Supervisory Commission (“FSC”)

New standards, interpretations and amendments that came into effect as endorsed by FSC and became effective from 2024 are as follows:

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

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	Effective date by
	International Accounting
New Standards, Interpretations and Amendments	Standards Board
Amendments to IAS 1, ‘Classification of liabilities as current or non- current’	January 1, 2024
Amendments to IAS 1, ‘Non-current liabilities with covenants’	January 1, 2024
Amendments to IAS 7 and IFRS 7, ‘Supplier finance arrangements’	January 1, 2024

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

2) Effect of new issuances of or amendments to IFRS Accounting Standards 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 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 andAmendments 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	Effective date by International Accounting Standards Board
	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 andAmendments
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

Effective date by
International Accounting
Standards Board

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

~13~

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. This 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 assets or 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.

~14~

B. Subsidiaries included in the consolidated financial statements:

Name of Investor	Name of Subsidiary	Main Business Activities September 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 - (Note2) Nominee Service - (Note2)	December 31,2023 96.69% 100% 100% 100% 100% 100% 100% Ownership (%)	September 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)) President Securities (Nominee) Ltd. (President Securities (Nominee))			96.69% 100% 100% 100% 100% 100% 100%

Note 1: Subsidiary President Securities (HK) Ltd. was approved by the Board of Directors in March 2022 to deal with the dissolution and liquidation matters, and the liquidation process is currently in progress.
Note 2: The dissolution and liquidation of President Securities (Nominee) and President Wealth management (HK) were approved by the Board of Directors in March 2022. The liquidation of President Securities (Nominee) was completed in January 2024, and that of President Wealth Management (HK) was completed in July 2024, so they were no longer 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.
Note 4: Except for President Futures’ financial statements for the nine months ended September 30, 2024 and 2023 that were reviewed by independent auditors, the above-listed subsidiaries included in the consolidated financial statements for the nine months ended September 30, 2024 and 2023, were not reviewed by independent auditors.

~15~

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 September 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	September 30,2024 1,650 $ 627,228 2,882,128 2,014,634 3,080,908 8,606,548 $	December 31,2023 150 $ 608,351 811,348 722,937 3,367,192 5,509,978 $	September 30,2023
			1,650 $ 557,326 865,987 1,127,968 3,171,035
			5,723,966 $

As of September 30, 2024 , December 31, 2023 and September 30, 2023, the annual interest rates of time deposits, including foreign time deposits were 0.665%~5.430%, 0.555%~5.500%, and 0.555%~5.413%, respectively.

~16~

2) Financial assets at fair value through profit or loss

September 30, 2024 December 31, 2023 September 30, 2023

==> picture [434 x 555] intentionally omitted <==

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

Current items:
Financial assets mandatorily measured at fair
value through profit or loss:
Security lending
Security lending $ 197,688 $ 89,389 $ 216,503
Adjustment of security lending 11,313 ( 1,613) ( 12,498)
Total 209,001 87,776 204,005
-
Open ended funds, money market instruments
and securities investment by brokers
Open-ended mutual funds beneficiary 201,935 240,985 342,562
Exchange-traded funds 101,949 65,080 57,581
Subtotal 303,884 306,065 400,143
Adjustment of open-ended funds, money
market instruments and securities investment
by brokers 18,575 11,488 2,294
Total 322,459 317,553 402,437
Trading securities - dealer
Listed (TSE and OTC) stocks 8,741,582 6,431,803 8,999,037
Government bonds 49,488 1,693,534 599,917
Corporate bonds 3,358,382 4,054,695 2,219,616
Convertible corporate bonds 2,988,718 1,358,491 950,548
Emerging stocks 248,435 259,975 241,063
Overseas stocks 14,784,713 12,310,430 6,377,522
Exchange-traded funds 4,613,113 2,572,774 2,604,987
Unlisted stocks 168,943 170,943 138,107
Subtotal 34,953,374 28,852,645 22,130,797
Adjustment of trading securities - dealer 422,076 623,506 20,061
Total 35,375,450 29,476,151 22,150,858
Trading securities - underwriter
Listed (TSE and OTC) stocks 78,816 95,604 60,900
Convertible corporate bonds 700,435 602,696 611,285
Subtotal 779,251 698,300 672,185
Adjustment of trading securities - underwriter 241,196 175,242 174,215
Total 1,020,447 873,542 846,400
Trading securities - hedging
Listed (TSE and OTC) stocks 9,711,544 8,028,344 6,887,947
Corporate bonds 3,090,000 100,000 100,000
Convertible corporate bonds 11,800,762 9,315,389 7,712,674
Warrants 47,646 15,694 23,732
Overseas stocks 417,351 104,122 128,787
Exchange traded funds 12,355 15,141 6,153
Subtotal 25,079,658 17,578,690 14,859,293
Adjustment of trading securities - hedging 364,539 527,952 16,567
Total 25,444,197 18,106,642 14,875,860
Options bought - futures 23,346 5,547 8,399
Futures Margin - Own Funds 4,300,763 4,830,957 5,510,916
Derivative financial instrument assets - OTC 11,668 829 14,582
Total $ 66,707,331 $ 53,698,997 $ 44,013,457
----- End of picture text -----

~17~

Non-current items: Financial assets mandatorily measured at fair value through profit or loss: Trading securities - dealer - government bonds Unlisted stocks Others Subtotal Adjustment of trading securities Total	September 30,2024 $ 49,866 435 50,000 100,301 17,441 117,742 $	December 31,2023 $ 49,829 435 50,000 100,264 18,016 118,280 $	September 30,2023 $ 49,816 435 50,000 100,251 17,807 118,058 $

a. For the three months and nine months ended September 30, 2024 and 2023, net realized and unrealized gains (losses) on financial assets and liabilities at fair value through profit or loss amounted to $223,828, $139,669, $3,458,652 and ($519,722), 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

Current items: Equity instruments: Trading securities-dealer Listed (TSE and OTC) stocks Adjustment of trading securities - dealer Subtotal Debt instruments: Trading securities-dealer Overseas bonds Adjustment of trading securities - dealer Subtotal Total Non-current items: Equity instruments: Unlisted stocks Adjustment of trading securities Total	September 30,2024 279,894 $ 452,199 732,093 - - - 732,093 $ September 30,2024 37,565 $ 1,357,562 1,395,127 $	December 31,2023 September 30,2023 189,812 $ 189,812 $ 205,719 159,029 395,531 348,841 2,681,326 3,137,048 1,823 183,220) ( 2,683,149 2,953,828 3,078,680 $ 3,302,669 $ December 31,2023 September 30,2023 37,565 $ 37,565 $ 1,130,723 1,223,261 1,168,288 $ 1,260,826 $	September 30,2023
			189,812 $ 159,029
			348,841
			2,953,828
			3,302,669 $
			September 30,2023
			37,565 $ 1,223,261
			1,260,826 $

a. The Group has elected to classify stocks 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
$2,127,220, $1,563,819 and $1,609,667 as at September 30, 2024, December 31, 2023 and September 30, 2023, respectively.

~18~

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 160] intentionally omitted <==

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

Equity instruments at fair value through Three months ended Three months ended Nine months ended Nine months ended
other comprehensive income September 30, 2024 September 30, 2023 September 30, 2024 September 30, 2023
Fair value change recognised in other
comprehensive income - parent company $ 12,618 $ 10,844 $ 469,487 $ 128,237
Fair value change recognised in other
comprehensive income - non-controlling
interest ( 1,069) 1,090 3,832 2,372
Total $ 11,549 $ 11,934 $ 473,319 $ 130,609
Dividend income recognised in profit or loss
Held at end of period $ 25,641 $ 6,125 $ 30,310 $ 32,086
Debt instruments at fair value through Three months ended Three months ended Nine months ended Nine months ended
other comprehensive income September 30, 2024 September 30, 2023 September 30, 2024 September 30, 2023
Fair value change recognised in other $ 106,704 ($ 98,499) $ 5,402 ($ 148,089)
comprehensive income
Interest income recognised in profit or loss $ 12,559 $ 24,052 $ 70,265 $ 69,753
----- 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

Foreign bonds

==> picture [247 x 22] intentionally omitted <==

The above bonds purchased under resale agreements as of September 30, 2024, December 31, 2023, and September 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 $55,524, $0, and $0, respectively, and the annual interest rates in every currency were shown as follows:

Currency September 30, 2024 December 31, 2023 September 30, 2023 EUR 3.42% ～ 3.51% - -

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	September 30,2024 21,246,716 $ 5,245,134 6,550,934 321 33,043,105 $	December 31,2023 14,568,406 $ 3,207,614 2,749,733 364 20,526,117 $	September 30,2023
			13,936,406 $ 3,918,184 1,689,278 296
			19,544,164 $

~19~

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

below:
	September 30,2024			December 31,2023		September 30,2023
Customer margin deposits accounts	$	33,043,105	$		20,526,117	$	19,544,164
Futures trading margins receivable		6			-		1
Add: Early customer margin deposits		20,442			8,915		32,414
Less: Service fee income pending for transfer	(	35,889)	(		29,470)	(	42,970)
Futures exchange tax pending for transfer	(	1,930)	(		725)	(	1,223)
Temporary receipts	(	59,403)	(		6,943)	(	21,447)
Futures trader’s equity	$	32,966,331	$		20,497,894	$	19,510,939
Accounts receivable
	September 30,2024			December 31,2023		September 30,2023
Accounts receivable - related parties	$	1,060	$		1,191	$	1,352
Accounts receivable - non related parties
Settlement price receivable-brokers	$	18,544,505	$		13,698,197	$	13,236,129
Settlement price receivable-dealer		5,280,994			1,473,114		347,748
Settlement price receivable-foreign bonds		4,514,782			916,071		3,135,802
Spot exchange receivable, foreign currencies		333,023			37,393		42,388
Interest receivable		663,822			478,227		375,553
Settlement price		2,496,440			1,780,200		1,355,766
Dividends receivable		47,128			28,136		34,556
Others		957,002			684,404		764,940
Subtotal		32,837,696			19,095,742		19,292,882
Less: Allowance for uncollectable accounts	(	386)	(		641)	(	585)
Total	$	32,837,310	$		19,095,101	$	19,292,297

7) Accounts receivable

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			September 30,2024			Total
	Up to 30 days	31 to 90 days	91 to 180 days - $ 239,594 239,594 $ December	181 days to 12 months	More than 12 months
	878 $ 32,199,513 32,200,391 $	182 $ 105,455 105,637 $		- $ 182,281 182,281 $ 31,2023	- $ 110,853 110,853 $	1,060 $ 32,837,696 32,838,756 $ Total
	Up to 30 days	31 to 90 days	91 to 180 days	181 days to 12 months	More than 12 months
	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 $

~20~

==> picture [436 x 97] intentionally omitted <==

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

September 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 $ 888 $ 464 $ - $ - $ - $ 1,352
Accounts receivable
- non related parties 18,926,612 73,595 113,559 91,854 87,262 19,292,882
Total $ 18,927,500 $ 74,059 $ 113,559 $ 91,854 $ 87,262 $ 19,294,234
----- 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
	September	30,2024	December	31,2023	September	30,2023
Interest receivable	$	52,047	$	54,949	$	41,991
Others		30,176		19,958		41,651
Subtotal		82,223		74,907		83,642
Less: Allowance for uncollectible accounts	(	275)	(	275)	(	275)
Total	$	81,948	$	74,632	$	83,367

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	September 30,2024 179,037 $ 500,000 37,377 1,259,322 1,861,046 82,078 3,918,860 $	December 31, 2023 282,289 $ 400,000 47,264 90,245 852,083 53,991 1,725,872 $	September 30,2023
			184,192 $ 400,000 145,353 13,200 403,839 91,063
			1,237,647 $

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.

~21~

B. Financial assets that do not meet the derecognition conditions and related financial 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 19,243,174 $ 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 $ Financial assets category Carrying amount of transferred financial assets Financial assets measured at fair value through profit or loss Repurchase agreement 6,718,483 $ Financial assets measured at fair value through other comprehensive income Repurchase agreement 2,469,476 $ September30,2024 December31,2023 September 30, 2023	Carrying amount of related financial liabilities
	17,800,121 $ Carrying amount of related financial liabilities
	16,573,700 $ 2,566,806 $ Carrying amount of related financial liabilities
	7,249,827 $ 2,518,486 $

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.

~22~

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

(1)Financial assets

(1)Financial assets
		September30,2024
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 7,964 $ - $ 54,744 - 62,708 $ - $ Net set off in the balance sheet	Net amount
					Financial instruments 7,964 $ 54,744 62,708 $
	7,964 $ 55,045 63,009 $					- $ 301
						301 $

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 $ - $ Net set off in the balance sheet	Net amount
					Financial instruments 829 $
	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 657 $ - $ Net set off in the balance sheet	Net amount
	14,582 $	- $	14,582 $			13,925 $

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(2) Financial liabilities

) Financial liabilities
		September30,2024
Derivative financial instruments Bonds sold under repurchase agreements Total Derivative financial instruments Bonds sold under repurchase agreements Total Description 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 7,964 $ - $ 14,578,047 - 14,586,011 $ - $ Financial instruments Cash collateral received 829 $ - $ 13,998,281 - 13,999,110 $ - $ Net set off inthe balance sheet Net set off inthe balance sheet	Net amount
	39,788 $ 14,578,047 14,617,835 $ Gross amounts of recognised financial liabilities				31,824 $ -
					31,824 $
					Net amount
				Financial instruments 829 $ 13,998,281 13,999,110 $
	33,039 $ 13,998,281 14,031,320 $				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 657 $ - $ 7,255,316 - 7,255,973 $ - $ Net set off inthe balance sheet	Net amount
				Financial instruments 657 $ 7,255,316 7,255,973 $
	657 $ 7,255,316 7,255,973 $	- $ - - $	657 $ 7,255,316 7,255,973 $		- $ -
					- $

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12) Investments accounted for under the equity method

September 30,2024 December 31,2023 Uni-President Asset Management Corp. 852,964 $ 797,207 $ Jin Yuan President Securities Co., Ltd. 2,649,558 2,615,717 3,502,522 $ 3,412,924 $	September 30,2023 741,468 $ 2,701,228 3,442,696 $

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 nine months ended September 30, 2024 and 2023 were $76,996, $37,625, $180,678 and $87,464, 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	Shareholding ratio		Nature of relationship	Methods of measurement
Uni-President Asset Management Corp. Jin Yuan President Securities Co., Ltd.	September 30, 2024 Taipei city 42.49% Xiamen 49%	December 31,2023	September 30,2023	Associate Associate	Equity method Equity method
		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
		September 30, 2024 (Note)	December 31,2023
	1,243,795 $ 918,268 504,634) ( 72,767) ( 1,584,662 $ 673,442 $ 179,522 852,964 $		1,132,776 $ 822,436 443,166) ( 58,583) ( 1,453,463 $ 617,685 $ 179,522 797,207 $	897,307 $ 818,354 355,877) ( 37,479) ( 1,322,305 $ 561,946 $ 179,522 741,468 $

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Balance sheet

==> picture [454 x 146] intentionally omitted <==

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

Jin Yuan President Securities Co., Ltd.
September 30, 2024 December 31, 2023 September 30, 2023
Current assets $ 10,585,962 $ 5,641,883 $ 5,956,946
Non-current assets 292,122 243,503 254,352
Current liabilities ( 5,416,548) ( 487,824) ( 648,893)
Non-current liabilities ( 54,275) ( 59,363) ( 49,696)
Total net assets $ 5,407,261 $ 5,338,199 $ 5,512,709
Share in associate's net assets $ 2,649,558 $ 2,615,717 $ 2,701,228
Carrying amount of the associate $ 2,649,558 $ 2,615,717 $ 2,701,228
Statement of comprehensive income
----- End of picture text -----

Carrying amount of the associate 2,649 $ 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)
		1,673,685 $ 620,858 $ 26,593 647,451 $ 219,394 $ Nine months ended September 30,2024 Jin Yuan President	1,103,415 $ 363,031 $ 16,463 379,494 $ 167,887 $ Nine months ended September 30,2023 Securities Co.,Ltd.
	328,406 $ 169,737) ($ 169,737) ($		357,138 $ 146,864) ($ 146,864) ($

Note: The financial statements for the nine months ended September 30, 2024 and 2023, that were not reviewed by independent auditors, were prepared by the company.

13) Property and equipment

) Property and equipment
January1		Nine months ended September 30,2024			Total
	Land	Buildings	Equipment	Leasehold improvements
Cost Accumulated depreciation and impairment Total January 1 Additions Disposal Reclassifications Depreciation September 30	1,738,051 $ - 1,738,051 $ 1,738,051 $ - - - - 1,738,051 $	1,176,715 $ 571,899) ( 604,816 $ 604,816 $ 1,266 - 3,140 31,749) ( 577,473 $	564,286 $ 274,664) ( 289,622 $ 289,622 $ 52,641 36) ( 18,796 92,668) ( 268,355 $	34,050 $ 21,462) ( 12,588 $ 12,588 $ 2,055 - 16,290 4,312) ( 26,621 $	3,513,102 $ 868,025) ( 2,645,077 $ 2,645,077 $ 55,962 36) ( 38,226 128,729) ( 2,610,500 $

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September 30	Land	Buildings Equipment Leasehold improvements 1,179,031 $ 593,664 $ 44,945 $ 601,558) ( 325,309) ( 18,324) ( 577,473 $ 268,355 $ 26,621 $ 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 $ - 35,095 1,348 - 76) ( - 2,228 30,919 681 30,888) ( 78,935) ( 3,680) ( 591,401 $ 281,179 $ 13,625 $ Buildings Equipment Leasehold improvements 1,140,996 $ 532,301 $ 33,851 $ 549,595) ( 251,122) ( 20,226) ( 591,401 $ 281,179 $ 13,625 $ Nine months ended September 30,2023 Nine months ended September 30,2024	Buildings Equipment Leasehold improvements 1,179,031 $ 593,664 $ 44,945 $ 601,558) ( 325,309) ( 18,324) ( 577,473 $ 268,355 $ 26,621 $ 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 $ - 35,095 1,348 - 76) ( - 2,228 30,919 681 30,888) ( 78,935) ( 3,680) ( 591,401 $ 281,179 $ 13,625 $ Buildings Equipment Leasehold improvements 1,140,996 $ 532,301 $ 33,851 $ 549,595) ( 251,122) ( 20,226) ( 591,401 $ 281,179 $ 13,625 $ Nine months ended September 30,2023 Nine months ended September 30,2024	Buildings Equipment Leasehold improvements 1,179,031 $ 593,664 $ 44,945 $ 601,558) ( 325,309) ( 18,324) ( 577,473 $ 268,355 $ 26,621 $ 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 $ - 35,095 1,348 - 76) ( - 2,228 30,919 681 30,888) ( 78,935) ( 3,680) ( 591,401 $ 281,179 $ 13,625 $ Buildings Equipment Leasehold improvements 1,140,996 $ 532,301 $ 33,851 $ 549,595) ( 251,122) ( 20,226) ( 591,401 $ 281,179 $ 13,625 $ Nine months ended September 30,2023 Nine months ended September 30,2024	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				3,555,691 $ 945,191) ( 2,610,500 $ Total 3,367,963 $ 758,321) ( 2,609,642 $ 2,609,642 $ 36,443 76) ( 33,828 113,503) ( 2,566,334 $ Total
Cost Accumulated depreciation and impairment Total January 1 Additions Disposal Reclassifications Depreciation September 30 September 30		1,140,158 $ 520,097) ( 620,061 $ 620,061 $ - - 2,228 30,888) ( 591,401 $ Buildings	500,641 $ 206,465) ( 294,176 $ 294,176 $ 35,095 76) ( 30,919 78,935) ( 281,179 $ Equipment	47,035 $ 31,759) ( 15,276 $ 15,276 $ 1,348 - 681 3,680) ( 13,625 $ Leasehold improvements
Cost Accumulated depreciation and impairment Total	1,680,129 $ - 1,680,129 $	1,140,996 $ 549,595) ( 591,401 $	532,301 $ 251,122) ( 281,179 $	33,851 $ 20,226) ( 13,625 $	3,387,277 $ 820,943) ( 2,566,334 $

A. No interest was capitalized for property and equipment for the nine months ended September 30, 2024 and 2023.
B. The information on property and equipment pledged or restricted as of September 30, 2024, December 31, 2023 and September 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.

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

Buildings Transportation equipment (Business vehicles) Office equipment (Photocopiers) Total Buildings Transportation equipment (Business vehicles) Office equipment (Photocopiers) Total	Three months ended September 30,2024 Depreciation charge 17,413 $ 1,272 732 19,417 $	September 30,2024 CarryingAmount 193,123 $ 17,052 3,156 213,331 $ Three months ended September 30, 2023 Depreciation charge 16,490 $ 1,675 704 18,869 $	December 31,2023 CarryingAmount 111,575 $ 15,296 5,155 132,026 $ Nine months ended September 30,2024 Depreciation charge		September 30,2023
					CarryingAmount
					107,160 $ 16,973 5,763 129,896 $ Nine months ended September 30, 2023
					Depreciation charge
			52,249 $ 4,485 2,195 58,929 $		52,844 $ 5,016 2,103 59,963 $

C. For the nine months ended September 30, 2024 and 2023, the additions to right-of-use assets amounted to $143,051 and $24,382, respectively.
D. The information on income and expense accounts relating to lease contracts is as follows:

Items affecting profit or loss	Three months ended September 30,2024	Three months ended September 30,2023	Nine months ended September 30,2024 Nine months ended September 30, 2023
Interest expense on lease liabilities Expense on short-term lease contracts Expense on variable lease payment	575 $ 1,475 35	295 $ 3,102 31	1,362 $ 835 $ 3,974 7,790 86 74

E. For the nine months ended September 30, 2024 and 2023, the Group’s total cash outflow for leases amounted to $63,768 and $69,497, 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 nine months ended September 30, 2024 and 2023, the Group recognized rent income in the amount of $9,072 and $13,033, 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 2028 2029 Total		September 30,2024		December 31,2023		September 30,2023
		- $ 3,052 11,269 10,956 10,414 7,240 641 43,572 $		- $ 4,488 2,420 2,420 2,420 1,638 - 13,386 $		2,368 $ 2,139 72 72 72 72 - 4,795 $

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16) Investment property

==> picture [484 x 380] intentionally omitted <==

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

Nine months ended September 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 - ( 1,067) ( 1,067)
September 30 $ 140,176 $ 42,910 $ 183,086
September 30 Land Buildings Total
Cost $ 140,176 $ 72,533 $ 212,709
Accumulated depreciation and impairment - ( 29,623) ( 29,623)
Total $ 140,176 $ 42,910 $ 183,086
Nine months ended September 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 - ( 1,575) ( 1,575)
September 30 $ 198,099 $ 66,628 $ 264,727
September 30 Land Buildings Total
Cost $ 198,099 $ 107,076 $ 305,175
Accumulated depreciation and impairment - ( 40,448) ( 40,448)
Total $ 198,099 $ 66,628 $ 264,727
----- End of picture text -----

A. For the three and nine months ended Stptember 30, 2024 and 2023, rental income from the lease of the investment property were $2,559, $3,297, $7,583 and $11,310, respectively, and direct operating expenses arising from the investment property were $630, $915, $1,890 and $2,754, respectively.

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

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17) Intangible assets

Intangible assets
January1	Nine months ended			September 30,2024
	Computer software		Goodwill	Customer relationships and others Total 89,929 $ 604,169 $ 54,236) ( 311,732) ( 35,693 $ 292,437 $ 35,693 $ 292,437 $ - 17,969 - 46,104 13) ( 74,095) ( 35,680 $ 282,415 $ Customer relationships and others Total 89,929 $ 642,053 $ 54,249) ( 359,638) ( 35,680 $ 282,415 $ September 30,2023
Cost Accumulated amortization and impairment Total January 1 Additions Reclassifications Amortization September 30 September 30	472,236 $ 257,496) ( 214,740 $ 214,740 $ 17,969 46,104 74,082) ( 204,731 $ Computer software		42,004 $ - 42,004 $ 42,004 $ - - - 42,004 $ Goodwill
Cost Accumulated amortization and impairment Total January1
		Computer sofware	Goodwill	Customer relationships and others Total 89,929 $ 493,966 $ 54,218) ( 247,460) ( 35,711 $ 246,506 $ 35,711 $ 246,506 $ - 18,389 - 62,864 14) ( 57,483) ( 35,697 $ 270,276 $ Customer relationships and others Total 89,929 $ 561,309 $ 54,232) ( 291,033) ( 35,697 $ 270,276 $
Cost Accumulated amortization and impairment Total January 1 Additions Reclassifications Amortization September 30 September 30	362,033 $ 193,242) ( 168,791 $ 168,791 $ 18,389 62,864 57,469) ( 192,575 $ Computer software		42,004 $ - 42,004 $ 42,004 $ - - - 42,004 $ Goodwill
Cost Accumulated amortization and impairment Total	429,376 $ 236,801) ( 192,575 $		42,004 $ - 42,004 $

A. No interest was capitalized for intangible assets for the nine months ended September 30, 2024 and 2023.

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B. Goodwill and customer relationships were acquired through acceptance of transfer of the securities brokerage business of Standard Chartered (Taiwan) Bank’s retail banking business, and were all allocated to the Group’s brokerage segment.
C. The recoverable amount of goodwill was periodically determined based on its value in use. Calculations of value in use after-tax cash flow projections are based on financial budgets approved by the management covering a five-year period. Cash flows beyond the five-year period are extrapolated using the estimated growth rates stated below.

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

follows:
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

	September 30,2024	September 30,2024	December 31,2023	December 31,2023	September 30,2023	September 30,2023
Operation guaranteed deposits	$	640,000	$	655,000	$	655,000
Clearing and settlement fund		326,937		308,649		328,212
Refundable deposits		535,089		225,738		456,450
Prepaid pension expenses		4,404		4,013		95,516
Prepayment for equipment		62,203		50,757		51,418
Overdue receivables		5,248		1,965		8,052
Others		2,510		2,522		2,525
Subtotal		1,576,391		1,248,644		1,597,173
Less: Allowance for
uncollectible accounts	(	5,248)	(	1,965)	(	8,052)
Total	$	1,571,143	$	1,246,679	$	1,589,121

19) Short-term loans

Unsecured loans Secured loans Call loans from banks Total	September 30, 2024 8,366,000 $ 590,000 348,150 9,304,150 $	December 31, 2023 6,944,759 $ - - 6,944,759 $	September 30,2023
			6,116,364 $ 400,000 -
			6,516,364 $

As of September 30, 2024, December 31, 2023 and September 30, 2023, the interest rates of shortterm loans, including foreign interest rates were 1.835%~5.730%, 1.650%~5.910%, and 1.550%~5.860%, respectively.

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20) Commercial papers payable

		September30,2024	September30,2024	December31,2023	December31,2023	September30,2023	September30,2023
Face value		$	31,150,000	$	21,150,000	$	19,000,000
Less: discount on commercial papers	payable	(	27,466)	(	19,066)	(	14,620)
Total		$	31,122,534	$	21,130,934	$	18,985,380

As of September 30, 2024, December 31, 2023 and September 30, 2023, the interest rates of commercial papers, including foreign interest rates were 1.673%~1.920%, 1.460%~1.580%, and 1.400%~1.630%, respectively.

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

		September 30,2024		December 31,2023		September 30,2023	September 30,2023
Investments in bonds under resale
agreements - short sales	$	150,768	$	-		$	-
Valuation adjustment of financial assets held for
trading		394		-			-
Subtotal		151,162		-			-
Liabilities on sale of borrowed securities - hedged		1,025,962		490,037			448,066
Valuation adjustment on liabilities on sale of borrowed securities - hedged		23,528		27,380	(		6,519)
Liabilities on sale of borrowed securities - non-hedged		5,546,074		5,270,361			4,552,909
Valuation adjustment on liabilities on sale
of borrowed securities - non-hedged		331,982		389,037	(		84,117)
Subtotal		6,927,546		6,176,815			4,910,339
Issuance of call (put) warrants		19,404,818		14,926,912			14,770,253
Loss (gain) on price fluctuation	(	5,181,131)	(	2,567,109)	(		3,779,300)
Market value (A)		14,223,687		12,359,803			10,990,953
Warrants redeemed	(	16,499,605)	(	13,268,465)	(		13,379,853)
Loss (gain) on price fluctuation		4,000,824		1,944,352			3,410,476
Market value (B)	(	12,498,781)	(	11,324,113)	(		9,969,377)
Warrants - net (A+B)		1,724,906		1,035,690			1,021,576
Options sold - TAIFEX		25,982		9,671			12,801
Outstanding Liability for Issuance of ETNs		356,104		492,775			641,288
Valuation adjustment on outstanding
Liability for Issuance of ETNs		72,020		59,115	(		625)
Subtotal		428,124		551,890			640,663
Derivative financial liabilities - OTC		4,150,267		2,697,246			1,818,957
Total	$	13,407,987	$	10,471,312		$	8,404,336

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

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22) Bonds sold under repurchase agreements

Government bonds Corporate bonds Bank debentures International bonds Foreign bonds Total	September 30,2024 49,000 $ 5,369,292 100,000 1,419,546 10,862,283 17,800,121 $	December 31,2023 September 30,2023 1,673,927 $ 644,486 $ 3,738,850 1,595,846 100,000 100,000 664,516 172,665 12,963,213 7,255,316 19,140,506 $ 9,768,313 $

The above bonds sold under repurchase agreements as of September 30, 2024, December 31, 2023 and September 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 $17,949,983, $19,322,093 and $9,865,224, respectively, and the annual interest rates in every currency were shown as follows:

Currency	September 30,2024 December	September 30,2024 December	September 30,2024 December	31, 2023	September 30, 2023	September 30, 2023	September 30, 2023
NTD	1.14%~1.57%		0.97%~1.41%			0.95%~1.33%
Foreign currencies (Note)	1.60%~5.50%		2.20%~5.80%			2.20%~5.67%
Note: Foreign currencies include AUD, EUR, USD, GBP and RMB.
Accounts payable
	September 30,2024		December 31, 2023		September 30,2023
Settlement accounts payable
- brokered trading	$	18,656,162	$	14,683,802	$		13,407,278
Settlement proceeds		2,400,082		838,340			1,044,006
Settlement accounts payable - operating		3,790,902		244,238			503,423
Settlement accounts payable - foreign bonds		5,431,968		977,154			3,165,901
Spot exchange payable, foreign currencies		333,235		37,386			42,415
Others		380,973		310,495			325,652
Total	$	30,993,322	$	17,091,415	$		18,488,675
Other payables
	September 30,2024		December 31,2023		September 30,2023
Salary and bonus payable	$	1,686,027	$	1,397,414	$		1,186,940
Employees' and directors' remuneration payable		183,103		143,088			123,022
Others		682,545		719,080			585,432
Total	$	2,551,675	$	2,259,582	$		1,895,394

23) Accounts payable

24) Other payables

25) Other financial liabilities - current

Principal guaranteed notes (PGN) - fixed income

September30,2024 December 31, 2023 13,965,948 $ 5,224,019 $	September30,2023 8,318,689 $

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

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are financial instruments under the supervision of the SFB (Securities and Futures Bureau).

26) Other liabilities - non-current

September 30,2024 Guarantee deposits received 7,806 $ Net defined benefit obligation 29,811 Total 37,617 $	December 31,2023 September 30,2023 4,188 $ 5,025 $ 60,301 341 64,489 $ 5,366 $

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 nine months ended September 30, 2024 and 2023 in the statement of comprehensive income in the amounts of $564, $55, $1,692 and $165, respectively.
(C) Expected contributions to the defined benefit pension plans of the Group for the year ending December 31, 2025 amount to $45,271.
B. Defined contribution plans
“Labor Pension Act”, which covers employees with R.O.C. nationality and those who chose or are required to apply the “Labor Pension Act”. The contributions are made monthly based on not less than 6% of the employees’ monthly salaries and wages to the employees’ individual pension accounts at the Bureau of Labor Insurance. The payment of pension benefits is based on the employees’ individual pension fund accounts and the cumulative profit in such accounts. The employees can choose to receive such pension benefits monthly or in lump sum. The pension costs under defined contribution pension plans of the Group for the three and nine months ended

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September 30, 2024 and 2023 were $23,928, $19,892, $68,003 and $58,951, respectively.

C. President Securities (HK) has 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 $64, $2,169, $9,069 and $6,409, respectively, for the three and nine months ended September 30, 2024 and 2023.

28) Equity

A. Common stock

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

September 30, 2024 December 31, 2023 September 30, 2023		Sharepremium		Treasury share transactions		Expired stock options		Difference between consideration and carrying amount of subsidiaries acquired or disposed		Total
		24,663 $ 24,663 $ 24,663 $		65,675 $ 65,675 $ 65,675 $		483 $ 483 $ 483 $		440 $ 440 $ 440 $		91,261 $ 91,261 $ 91,261 $

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

C. Legal reserve

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

D. Special reserve

In accordance with the “Rules Governing the Administration of Securities Firms”, 20% of the current year’s earnings, after paying all taxes and offsetting prior years’ operating losses, and plus the items other than the after-tax net profit for the period, that are included in the unappropriated earnings of the period, if any, shall be set aside as special reserve until the cumulative balance equals the total amount of paid-in capital. The special reserve shall be used exclusively to cover accumulated deficit or to increase capital and shall not be used for any other purpose. Such

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capitalization shall not be permitted unless the Company had already accumulated a special reserve of at least 25% of its paid-in capital stock and only quarter of such special reserve may be capitalized.

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

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

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

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

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30) Brokerage handling fee revenue

Three months ended September 30, 2024 T S Revenues from brokered trading - TWSE 689,218 $ $ Revenues from brokered trading - OTC 236,605 Revenues from brokered trading - Futures 212,853 Others 96,860 Total 1,235,536 $ $	hree months ended eptember 30,2023 604,457 188,054 204,042 52,758 1,049,311	Nine months ended September 30,2024 Nine months ended September 30,2023 2,060,559 $ 1,434,781 $ 662,543 495,382 607,713 543,798 237,969 119,623 3,568,784 $ 2,593,584 $

31) Revenues from underwriting business

venues from underwriting business
Revenues from underwriting securities on a firm commitment basis Others Total	Three months ended September 30,2024	Three months ended September 30,2023	Nine months ended September 30,2024	Nine months ended September 30,2023
	12,078 $ 9,588 21,666 $	16,382 $ 14,952 31,334 $	40,170 $ 45,805 85,975 $	38,220 $ 42,721 80,941 $

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 September 30,2024	Three months ended September 30,2023	Nine months ended September 30,2024 Nine months ended September 30, 2023
	876,024 $ 149,480 193,312 1,218,816 26,370 66,387 92,757 123,007) ( 267,246 22,969 167,208 1,478,781 $	594,884 $ 5,343) ( 75,313) ( 514,228 209 21,416 21,625 481,879) ( 114,622 5,553 361,704) ( 174,149 $	3,216,018 $ 1,126,496 $ 665,249 238,204 553,812 52,361) ( 4,435,079 1,312,339 51,401 5,095 114,966 117,272 166,367 122,367 1,954,321 428,217) ( 809,135 113,139 51,534 5,428 2,814,990 309,650) ( 7,416,436 $ 1,125,056 $

33) Interest income

erest income
Interest income from margin loans Interest income from bonds Others Total	Three months ended September 30,2024	Three months ended September 30,2023	Nine months ended September 30,2024	Nine months ended September 30,2023
	269,397 $ 198,563 120,607 588,567 $	194,130 $ 112,850 43,005 349,985 $	747,995 $ 568,132 272,739 1,588,866 $	502,670 $ 346,390 96,807 945,867 $

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 September 30,2024	Three months ended September 30,2023	Nine months ended September 30,2024	Nine months ended September 30,2023
	2,208,105) ($ 28,707) ( 1,379,460) ( 3,616,272) ($	71,639) ($ 2,601 65,181 3,857) ($	252,276) ($ 65,954 163,413) ( 349,735) ($	118,643 $ 115,695 304,241 538,579 $

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

	Three months ended	Three months ended	Three months ended	Three months ended	Nine months ended	Nine months ended	Nine months ended	Nine months ended
	Spetember 30, 2024		September 30, 2023		September 30, 2024		September 30, 2023
Gain (loss) from the bond investments under
resale agreements	($	4,285)	$	-	($	4,187)	$	-
Gain (loss) from securities borrowing
transactions	(	15,790)	(	89,255)	(	625,758)	(	29,399)
Gain (loss) from covering	(	56,415)		56,335	(	69,328)	(	42,745)
Total	($	76,490)	($	32,920)	($	699,273)	($	72,144)

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

value through profit or loss

lue through profit or loss
Three months ended September 30, 2024 Valuation gain (loss) from securities borrowing transactions 156,420 $ Valuation gain (loss) from covering 35,727 Valuation gain from the bond investments under resale agreements 1,934) ( Total 190,213 $	Three months ended September 30,2023	Nine months ended September 30,2024 Nine months ended September 30,2023 54,687 $ 831,632) ($ 6,220 37,643) ( 1,349) ( - 59,558 $ 869,275) ($
	63,411 $ 16,885 - 80,296 $

37) Net realized gain on financial liabilities measured at fair value through other comprehensive income

Foreign bonds	Three months ended September 30,2024 63,462 ($	Three months ended September 30,2023 Nine months ended September 30, 2024	Nine months ended September 30,2023
		) 34,699) ($ 63,462) ($	34,699) ($

38) 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 September 30,2024	Three months ended September 30,2023	Nine months ended September 30,2024	Nine months ended September 30,2023
	900,840 $ 104,578) ( 132,034) ( 664,228 $	236,640 $ 30,402) ( 94,106) ( 112,132 $	442,176 $ 243,483) ( 433,119) ( 234,426) ($	180,508 $ 50,933) ( 265,216) ( 135,641) ($

39) Net gain (loss) from derivatives

t 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 September 30,2024	Three months ended September 30,2023	Nine months ended September 30,2024	Nine months ended September 30,2023
	1,142,363 $ ( 12,476) ( 157,954 ( 83,981) 431,797 83,275) ( 1,552,382 $ (	164,618) $ ( 9,827) ( 127,112) ( 39,766 110,353 ( 46,800) ( 198,238) $ (	1,680,358) $ 39,907) 670,198) 63,958 135,860) 204,017) 2,666,382) $	756,406) ($ 3,881 152,776) ( 125,252 25,752) ( 91,642) ( 897,443) ($

40) Expected credit impairment loss and reversal of impairment gain

T S Impairment (loss) and reversal of impairment gain ($ Recovery of bad debts Total ($	hree months ended eptember 30,2024 T S	hree months ended eptember 30,2023 N S	ine months ended eptember 30,2024 N S	ine months ended eptember 30,2023
	1,014) ($ 39 975) ($	4,856) $ 90 4,766) $	16,403 ($ 451 16,854 ($	12,935) 828 12,107)

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41) Other operating income

ther operating income
Income from securities lending Net currency exchange gain (loss) ( Handling fee revenues from funds Others Total	Three months ended September 30,2024	Three months ended September 30,2023	Nine months ended September 30,2024	Nine months ended September 30,2023
	131,346 $ 7,802) 25,525 47,548	94,770 $ 72,526 22,605 42,521 232,422 $	324,161 $ 125,479 74,555 195,141 719,336 $	292,022 $ 92,393 61,316 131,521 577,252 $
	196,617 $

42) Handling charges

andling charges
Brokerage handling fee expense Dealer handling fee expense Refinancing processing fee expense Total	Three months ended September 30, 2024 Three months ended September 30, 2023	Nine months ended September 30, 2024	Nine months ended September 30,2023
	139,693 $ 124,504 $ 59,234 44,419 142 845 199,069 $ 169,768 $	407,299 $ 165,374 879 573,552 $	310,500 $ 107,809 1,723 420,032 $

43) Financial costs

inancial costs Brokerage handling fee expense Dealer handling fee expense Refinancing processing fee expense Total	139,693 $ 59,234 142 199,069 $	124,504 $ 44,419 845 169,768 $	407,299 $ 165,374 879 573,552 $	310,500 $ 107,809 1,723 420,032 $
mployee benefits expense Interest expense from repurchase agreements Loans interest expense Other interest expense Total Salaries Labor and health insurance Pension Other employee benefits Total	Three months ended September 30,2024	Three months ended September 30, 2023	Nine months ended September 30, 2024	Nine months ended September 30,2023
	151,825 $ 220,785 59,792 432,402 $ Three months ended September 30, 2024	106,251 $ 128,609 24,024 258,884 $ Three months ended September 30,2023	471,524 $ 559,334 141,171 1,172,029 $ Nine months ended September 30,2024	289,547 $ 276,918 78,901 645,366 $ Nine months ended September 30,2023
	793,133 $ 46,347 24,556 36,961 900,997 $	747,954 $ 39,944 22,116 29,416 839,430 $	2,804,865 $ 142,860 78,764 115,263 3,141,752 $	2,097,752 $ 124,065 65,525 91,337 2,378,679 $

44) Employee benefits expense

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 nine months ended September 30, 2024 and 2023, employees’ compensation was accrued at $13,143, $17,407, $81,468, and $54,276, respectively; directors’ remuneration was accrued at $13,143, $17,407, $81,468, and $54,276, respectively. The aforementioned amounts were recognized in salary expenses.
C. For the nine months ended September 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.

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45) Depreciation and amortization

Depreciation Amortization Total	Three months ended September 30,2024 Three months ended September 30,2023 63,515 $ 57,948 $ 25,199 20,293 88,714 $ 78,241 $	Nine months ended September 30,2024 Nine months ended September 30,2023 188,725 $ 175,041 $ 74,106 57,582 262,831 $ 232,623 $

46) Other operating expenses

Other operating expenses
Taxes Security lending expenses Computer information expenses TDCC service fee Postage Others Total	Three months ended September 30,2024	Three months ended September 30,2023	Nine months ended September 30,2024	Nine months ended September 30,2023
	301,348 $ 65,483 58,633 36,301 25,890 145,098 632,753 $	317,918 $ 49,580 55,440 28,747 23,773 116,183 591,641 $	856,155 $ 177,446 176,406 103,232 74,173 393,014 1,780,426 $	666,640 $ 175,391 159,058 70,786 69,713 345,595 1,487,183 $

47) Other gains and losses

Other gains and losses
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 (expenses) Total	Three months ended September 30,2024	Three months ended September 30,2023 Nine months ended September 30,	Nine months ended September 30,
	191,371 $ 8,475 8,345) ( 966) ( 55,507 246,042 $	156,746 $ 519,048 $ 3,184 27,283 750) ( 1,078) ( 8,317 6,273 36,781 132,959 204,278 $ 684,485 $	417,124 $ 1,255 317) ( 10,580 141,456 570,098 $

48) 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 September 30,2024	Three months ended September 30,2023	Nine months ended September 30,2024	Nine months ended September 30,2023
	154,009 $ - ( - 154,009 34,815) ( 34,815) ( 119,194 $	69,521 $ 17,403) ( - 52,118 14,952) 14,952) 37,166 $	392,053 $ 13,233) 81 378,901 5,962 5,962 384,863 $	246,260 $ 35,000) ( 58 211,318 6,250 6,250 217,568 $

B. As of September 30, 2024, the Company’s income tax returns have been approved by the Tax Authority until 2022, except for 2020 and 2021. 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.

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49) Earnings per share

Earnings per share
Basic earnings per share Net income attributable to common shareholders Dilutive effect of common stock equivalents Employee bonus Basic earnings per share Net income attributable to common shareholders Dilutive effect of common stock equivalents Employee bonus Basic earnings per share Net income attributable to common shareholders Dilutive effect of common stock equivalents Employee bonus	Amount after tax Weighted-average outstanding common shares(In thousands) Earnings per share (In dollars) 539,765 $ 1,455,831 0.37 $ - 697 539,765 $ 1,456,528 0.37 $ Amount after tax Weighted-average outstanding common shares(In thousands) Earnings per share (In dollars) 3,609,409 $ 1,455,831 2.48 $ - 3,017 3,609,409 $ 1,458,848 2.47 $ Amount after tax Weighted-average outstanding common shares(In thousands) Earnings per share (In dollars) 822,637 $ 1,455,831 0.57 $ - 776 822,637 $ 1,456,607 0.56 $ Three months ended September 30,2023 Three months ended September 30,2024 Nine months ended September 30,2024
	Amount after tax	Weighted-average outstanding common shares(In thousands)

	Amount after tax	Weighted-average outstanding common shares(In thousands)

	Amount after tax	Weighted-average outstanding common shares(In thousands)
	822,637 $ - 822,637 $	1,455,831 776 1,456,607	0.57 $ 0.56 $

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==> picture [484 x 155] intentionally omitted <==

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

Nine months ended September 30, 2023
Weighted-average Earnings per
Amount outstanding common share
after tax shares (In thousands) (In dollars)
Basic earnings per share
Net income attributable to common
shareholders $ 2,450,660 1,455,831 $ 1.68
Dilutive effect of common stock equivalents
Employee bonus - 2,895
$ 2,450,660 1,458,726 $ 1.68
----- End of picture text -----

7. RELATED PARTY TRANSACTIONS

1) Names and relationships of related parties

Names of related parties Relationship with the Company Uni-President Enterprises Corp. Entity having significant influence on the Company Uni-President Asset Management Corp. Associate President Tokyo Co., Ltd. Other related party President Tokyo Auto Leasing Co., Ltd. Other related party ScinoPharm Taiwan, Ltd. Other related party Ton Yi Industrial Corp. Other related party President Chain Store Corp. 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 President Information Corp. 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

A. Accounts receivable
Entity having significant influence on the company: Uni-President Enterprises Corp. Associate: Uni-President Assets Management Corp. Other related party: ScinoPharm Taiwan, Ltd. Ton Yi Industrial Corp. President Chain Store Corp. Others Total		September 30,2024		December 31,2023		September 30,2023
		318 $ 10 323 100 231 78 1,060 $		332 $ - 322 - 434 103 1,191 $		352 $ - 323 100 458 119 1,352 $

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B. Prepayments

B.	Prepayments
C. D. E. F. G.	Other receivables Acquisition of property and equipment Acquisition of other assets Prepayment for equipment Guarantee deposit received September 30,2024 Other related party: Q-WARE Systems & Services Corp. 5,063 $ Tung Ho Development Co., Ltd. 600 President Chain Store Corp. 158 Presco Netmarketing Co., Ltd. 121 President Information Corp. 109 Others 25 Total 6,076 $ September 30,2024 Associate: Uni-President Assets Management Corp. 111 $ Other related party: Others 18 Total 129 $ Other related party: President Information Corp. Listeditems Other related party: President Information Corp. Intangible assets September 30,2024 Other related party: President Information Corp. $- September 30,2024 Associate: Uni-President Assets Management Corp. 1,497 $ Other related party: President Tokyo Co., Ltd. - Total 1,497 $	September 30,2024 5,063 $ 600 158 121 109 25 6,076 $ September 30,2024		December 31,2023 4,682 $ 600 157 121 - 18 5,578 $ December 31,2023		September 30,2023 7,390 $ 600 158 125 - 18 8,291 $ September 30, 2023 - $ 50 50 $ Nine months ended September 30,2023
				4 $ -
				4 $
				Nine months ended September 30,2024 $- Nine months ended September 30,2024 Purchase price
	Acquisition of other assets Prepayment for equipment Guarantee deposit received Other related party: President Information Corp. Other related party: President Information Corp. Other related party: President Information Corp. Associate: Uni-President Assets Management Corp. Other related party: President Tokyo Co., Ltd. Total
						$ 2,472 Nine months ended September 30, 2023

						Purchase price
			Intangible assets September 30,2024	$ Dectember 31,2024	-	$4,103 September 30,2023

			$-	$	-	$315 September 30,2023 1,044 $ 1,418 2,462 $
			September 30,2024	December 31,2023
			1,497 $ - 1,497 $	1,435 $ - 1,435 $

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H. Other payables

Other related party: President Tokyo Co., Ltd. Presco Netmarketing Co., Ltd. President Information Corp. Others Total	September 30,2024 22 $ 122 438 - 582 $	December 31,2023 12 $ 125 - - 137 $	September 30,2023 418 $ - - 63 481 $

`－` I. Lease transactions lessee

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

Nine months ended Nine months ended September 30, 2024 September 30, 2023 Other related party: President Tokyo Co., Ltd. $ 9,237 $ 5,623

b. Disposition of right-of-use assets

Other related party: President Tokyo Co., Ltd.

Nine months ended Nine months ended September 30, 2024 September 30, 2023 $ 8,375 $ 1,290

a. Lease liabilities - current

se liabilities ease liabilities - current
ease liabilities - non-current Other related party: President Tokyo Co., Ltd. President Tokyo Auto Leasing Co., Ltd. Total Other related party: President Tokyo Co., Ltd. President Tokyo Auto Leasing Co., Ltd. Total	September 30,2024	December 31,2023	September 30,2023
	6,367 $ 750 7,117 $ September 30,2024	7,428 $ 747 8,175 $ December 31,2023	7,795 $ 746 8,541 $ September 30,2023
	11,895 $ 882 12,777 $	10,152 $ 1,445 11,597 $	11,669 $ 1,632 13,301 $

b. Lease liabilities - non-current

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c. Financial costs

Financial costs
Three months ended September 30,2024 Other related party: President Tokyo Co., Ltd. 55 $ President Tokyo Auto Leasing Co., Ltd. 3 Total 58 $	Three months ended September 30,2023 47 $ 4 51 $	Nine months ended September 30, 2024 Nine months ended September 30, 2023
		137 $ 115 $ 9 13 146 $ 128 $

d. Net gain from lease modification

Three months ended Three months ended Nine months ended Nine months ended September 30, 2024 September 30, 2023 September 30, 2024 September 30, 2023 Other related party: President Tokyo Co., Ltd. $ 40 $ - $ 52 $ 1

J. Handling fee revenue

Handling fee revenue
Security investment trust fund raised by the Uni-President Asset Management Corp.: Fund managed by Uni-President Asset Management Corp. Other related party: Others Total	Three months ended September 30, 2024	Three months ended September 30,2023	Nine months ended September 30,2024	Nine months ended September 30,2023
	49,469 $ 683	29,401 $ 403 29,804 $	163,809 1,555 165,364 $	71,045 1,159 72,204 $
	50,152 $

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

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

Associates: Uni-President Assets Management Corp.	Three months ended September 30,2024	Three months ended September 30,2023	Nine months ended September 30,2024	Nine months ended September 30,2023
	7,333 $	3,904 $	21,433 $	11,025 $

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

L. Other operating revenue - Other

Other operating revenue-Other
Other operating revenue-handling fee Associates: Uni-President Assets Management Corp.	Three months ended September 30,2024	Three months ended September 30,2023	Nine months ended September 30,2024	Nine months ended September 30,2023
	revenues from u 600 $	nderwriting funds 1,480 $ 2,480 $ Three months ended September 30,2023 Nine months ended September 30,2024		2,920 $ Nine months ended September 30,2023
Associates: Uni-President Assets Management Corp.	Three months ended September 30,2024	Three months ended September 30,2023 S
	24,910 $	22,145 $	72,554 $	59,821 $

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

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

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N. Rent income

Rent income
Period Associates: Uni-President Assets Management Corp. 2016.01.01~2028.08.31 Other related party: President Tokyo Co., Ltd. 2019.04.01~2023.08.31 Total	Deposit 1,497 $ -	Three months ended September 30, 2024	Three months ended September 30,2023 Nine months ended September 30, 2024 1,714 $ 7,124 $ 1,490 - 3,204 $ 7,124 $	Nine months ended September 30,2023
		2,405 $ - 2,405 $		5,141 $ 5,961 11,102 $

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.

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

Entity having significant influence on the company: Uni-President Enterprises Corp.	Three months ended September 30,2024	Three months ended September 30,2023	Nine months ended September 30,2024	Nine months ended September 30,2023
	- $	825 $	75 $	3,625 $

P. Stock custodian income

Stock custodian income
Entity having significant influence on the company: Uni-President Enterprises Corp. Associate: Uni-President Assets Management Corp. Other related party: ScinoPharm Taiwan, Ltd. Ton Yi Industrial Corp. President Chain Store Corp. Others Total	Three months ended September 30,2024	Three months ended September 30,2023	Nine months ended September 30,2024 Nine months ended September 30, 2023
	1,026 $ 31 586 308 749 185 2,885 $	1,063 $ 31 592 323 679 186 2,874 $	3,079 $ 106 1,730 940 2,170 556 8,581 $	3,232 $ 106 1,749 952 1,964 529 8,532 $

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

Q. Other operating expenses – Other

Other related party: President Tokyo Co., Ltd. Presco Netmarketing Co., Ltd. President Professional Baseball Team Corp. Q-WARE Systems & Services Co., Ltd. President Information Corp. Total	Three months ended September 30,2024	Three months ended September 30,2023	Nine months ended September 30,2024	Nine months ended September 30,2023
	39 $ 769 - 289 329 1,426 $	53 $ 222 - - - 275 $	138 $ 1,368 2,310 289 329 4,434 $	85 $ 1,059 2,310 - - 3,454 $

R. Other non-operating expenses – Other

Three months ended Three months ended Nine months ended Nine months ended September 30, 2024 September 30, 2023 September 30, 2024 September 30, 2023

Other related party: President Tokyo Co., Ltd.

$ - $ 243 $ -

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S. Purchases of trading securities - dealer

Ending Shares (In thousands) 56 9 Ending Shares (In thousands) 136 9 - Ending Shares (In thousands) December September September	EndingBalance 4,883 $ 179,804 2,655 187,342 $ EndingBalance 10,149 $ 52,587 2,426 - 65,162 $ EndingBalance 31,2023 30,2023 30,2024	Three months ended September 30,2024	Nine months ended September 30,2024
		Gain(loss) 785 $ 6,692 123 7,600 $ Year ended December 31,2023	Gain(loss) 786 $ 20,274 123 21,183 $ Nine months ended September 30,2023 Gain(loss) 2,052 $ 2,600 (31) 11 4,632 $
		Gain(loss) 1,826 $ 7,376 31) ( 11 9,182 $ Three months ended September 30,2023
		Gain (loss) 213) ($ 2,240 38) ( - 1,989 $
152 9 -	10,655 $ 53,391 2,363 - 66,409 $

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T. Compensation of key management personnel

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

ere as follows:
Salary and short-term employee benefits Retirement benefits Other long-term employee benefits Termination benefits Share-based payment Total	Three months ended September 30,2024	Three months ended September 30,2023	Nine months ended September 30,2024	Nine months ended September 30,2023
	38,740 $ 354 - - - 39,094 $	42,479 $ 430 - - - 42,909 $	168,434 $ 1,300 - - - 169,734 $	135,234 $ 1,256 - - -
				136,490 $

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	September30,2024 5,365,000 $ 44,200 11,646,282 1,538,507 100,000 - 1,260,078 500,000 50,000 1,081,670 640,000 2,000	December31,2023 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	September30,2023 1,600,000 $ 599,800 5,086,626 184,750 100,000 2,729,300 13,930 400,000 50,000 1,087,029 655,000 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.

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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.

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,

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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.
- 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

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“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 relation to market risk control. All trading positions of the Group have been included in the daily risk control system for the calculation of Value at Risk (VaR). Limit exceeding indicators are mainly the nominal principal, stop-loss, sensitivity (Greeks) and VaR. The risk management report is presented on a daily basis for implementation of regular control and limit exceeding handling procedures.
(B) Credit risk management
In relation to risk control, the quantitative model of default rate adopts KMV model to calculate the default rate of issuers with credit exposure of the issuing company and the trading counterparties, and credit risk of securities disclosed in the report. The credit exposure is mitigated through regular review of credit status.
(C) Fund liquidity risk
Unit in charge of fund procurement regularly predicts future fund demand and supply, and consolidates company guarantee or endorsement and capital lending businesses to monitor the condition of fund procurement on a daily basis.
(D) Operating risks

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

(E) Legal risk

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

(F) Climate risks
- Based on the two major risk indicators of climate risk, the physical risk and the transition risk, the potential climate risk on investment position is estimated by different scenario analyses. The Company regularly discloses implementation of climate risk management annually that complies with the policy guidelines set by the competent authorities and initiatives or guidelines internationally and generally recognised to enhance the quality and transparency of information disclosure.
E. Hedging and risk-offsetting strategy
(A) Policies of hedging and risk mitigating are parts of the Group’s risk management policies, and the hedging position and hedged trading position are supposed to be one portfolio, of which the gain and loss and risk information are measured on a consolidated basis.
(B) The overall position (hedging position and trading position) is included in the daily risk management system to calculate Value at Risk and other relevant information. Limit exceeding indicators mainly include nominal principal, stop-loss point, price sensitivity and

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

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

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

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

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

B. Maximum credit risk exposure and credit risk concentration

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

(A) Cash and cash equivalents

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

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

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

b. Commercial papers

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

c. Debt securities

Debt securities are mainly positions like government bonds, convertible corporate bonds and foreign bonds and the issuers are primarily R.O.C. government, domestic and foreign legal entities. 10% of convertible corporate bond is guaranteed by banks. Details are as follows:

(a) Government bonds

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

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(b) Corporate bonds

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

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

(d) Foreign bonds

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

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

(D) Derivatives - futures trade margin

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

(E) Derivatives - OTC

The Group signs International Swaps and Derivatives Association (ISDA) agreements with each counterparty when engaging in OTC derivatives as an agreement regarding such transactions for both parties. In the agreement, it provides a fundamental contractual model for OTC derivative transactions. If any party breaches the contract or terminates the transactions early, then all the open interest covered in the agreement should be settled by net amount as bound in the contract. When the ISDA agreement is signed, the Credit Support Annex (CSA) is also signed. According to the CSA, collateral will be transferred from a party to the other during transaction process to mitigate the risk of counterparty in open interest. Please refer to Note 6(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 investment under a resale agreement
Bonds sold under a resale agreement are the bonds that the client sold to the Group at a price, interest rate, length of period as agreed by two parties and the client shall repurchase the bonds at the specified price upon maturity. The Group needs to assume credit risk from counterparties when underwriting such business, as the payment being delivered to the other party. With consideration of good collateral obtained, the net of credit risk exposure from counterparties can be effectively reduced. As all the counterparties are financial institutions with good credit rating, the credit risks from counterparties are extremely low. Please refer to Note 6(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.

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(H) Receivables of securities business money lending
Receivables of securities business money lending are the non-restricted purpose loan business and monetary financing business, pursuant to an agreement between a securities firm and a customer, using customer securities and other commodities as collateral. The Group regularly assesses its customer line of credit and implements appropriate credit control. As the margin ratio of margin trading is set at 130% according to Regulations Governing the Conduct of Securities Trading Margin Purchase and Short Sale Operations by Securities Firms, the credit risk is extremely low.
(I) Guaranteed price for securities lending
Guaranteed price for securities lending is the sale price of the Group’s securities sold by other securities firms through margin trading after deduction of securities transactions tax and service fee, which is deposited in other securities firms as collateral. As all the counterparties are financial institutions with good credit rating, the credit risk from counterparties is extremely low.
(J) Refundable deposits for securities lending
Refundable deposits for securities lending are the margins deposited in other securities firm as collateral when the Group’s securities are sold. As all the counterparties are financial institutions with good credit, the credit risk from counterparties is extremely low.
(K) Receivables
Receivables are the credit rights arising from the securities business including settlement receivables of consignment trading, settlement receivables of operating securities sold, financing interest receivables of self-operating credit transaction, receivables of consignment trading for securities, and receivables from banks’ underwriting on foreign exchange transactions and foreign fund demand. As the majority of the Group’s receivables from the consignment businesses and self-operating businesses are settlement of securities from 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 underwrite trust business, the Group deposits central government bonds in the Central Bank as collateral. Regardless of the bonds themselves or the financial institutions where the bonds are deposited, the credit risk is extremely low.
(N) Other non-current assets

Other non-current assets mainly comprise operating guarantee deposits, settlement funds, and refundable deposits. Operating guarantee deposits are mainly deposited in domestic banks with good credit rating. Settlement funds are deposited in securities exchange. Settlement funds are used as compensation when a party to a marketable securities transaction fails to fulfil the settlement obligation. The credit risks from the institutions where these two assets are deposited are extremely low. The refundable deposits refer to cash or other assets which are deposited externally by the Group and can be used as refundable deposits. Because deposits are placed in various financial institutions and each deposit amount is small, the credit risk is dispersed and the credit exposure of overall refundable deposit is extremely low.

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C. Expected credit loss assessment

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

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

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

(A) Judgements of the significant increase in credit risk since initial recognition

Judgements and assumptions used to determine whether the credit risk has a significant increase since initial recognition when the Group calculates expected credit loss under IFRS 9 are as follows:

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

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

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

(E) Consideration of forward-looking information
- Historical loss rate (based on the historical experience in the past 3 to 5 years) as obtained and compared with economic environment in the past, nowadays and future (forwardlooking factor) to see whether there is any significant change, and then to properly adjust future loss rate standards. If any significant default event occurs, the loss rate in the current year will be included in the calculation of future loss rate standard.
D.Table of movements in loss provision of the Group
(A) At September 30, 2024, December 31, 2023 and September 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:

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Marginal receivable	Marginal receivable	Accounts receivable Other receivables Other non-current assets-overdue receivables 641 $ 275 $ 1,965 $ 255) ( - 3,283 386 $ 275 $ 5,248 $ 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 $ 74) ( 80) ( 172) ( 585 $ 275 $ 8,052 $ Nine months ended September 30,2023 Nine months ended September 30,2024 Year ended December 31,2023	Accounts receivable Other receivables Other non-current assets-overdue receivables 641 $ 275 $ 1,965 $ 255) ( - 3,283 386 $ 275 $ 5,248 $ 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 $ 74) ( 80) ( 172) ( 585 $ 275 $ 8,052 $ Nine months ended September 30,2023 Nine months ended September 30,2024 Year ended December 31,2023	Accounts receivable Other receivables Other non-current assets-overdue receivables 641 $ 275 $ 1,965 $ 255) ( - 3,283 386 $ 275 $ 5,248 $ 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 $ 74) ( 80) ( 172) ( 585 $ 275 $ 8,052 $ Nine months ended September 30,2023 Nine months ended September 30,2024 Year ended December 31,2023	Total	Total
46,779 $ 19,431) ( 27,348 $ Marginal receivable		641 $ 255) ( 386 $ Accounts receivable Year			49,660 $ 16,403) ( 33,257 $ Total 37,553 $ 17,916 5,809) ( 49,660 $ Total
	28,315 $ 18,464 - 46,779 $ Marginal receivable
	28,315 $ 13,261 41,576 $	659 $ 74) ( 585 $	355 $ 80) ( 275 $	8,224 $ 172) ( 8,052 $		37,553 $ 12,935 50,488 $

3) Liquidity risk

A. Definition and source of liquidity risk

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

B. Liquidity risk management procedure and stimulation test

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

(A) Procedure

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

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

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

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

		September 30,2024
Immediately	Less than 3 months	3-12 months	1-5years - $ - - - - - - 21,227 - - 90,374 - - 139,883 251,484 $	Total
2,090,000 $ 1,200,000 7,078,708 5,423,211 - 827,949 1,083,714 - 32,966,331 30,885,806 1,834,788 17,771 - - 83,408,277 $	7,214,150 $ 29,950,000 - - 17,949,983 - - 2,509,838 - 107,516 14,163 338,217 12,027,956 16,585 70,128,408 $	- $ - - 906,068 - - - 557,550 - - - 2,195,687 1,937,992 52,805 5,650,102 $		9,304,150 $ 31,150,000 7,078,708 6,329,279 17,949,983 827,949 1,083,714 3,088,615 32,966,331 30,993,322 1,939,325 2,551,675 13,965,948 209,273
				159,438,272 $

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

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	September 30,2023
Immediately	Less than 3 months 3-12 months 5,121,364 $ - $ 18,800,000 - - - - 30,351 9,865,224 - - - - - 925,575 113,959 - - 99,700 - 9,556 - 288,290 1,596,020 7,656,363 662,326 15,835 45,019 42,781,907 $ 2,447,675 $	1-5years - $ - - - - - - 26,982 - - 86,077 - - 61,452 174,511 $	Total
1,395,000 $ 200,000 4,910,339 3,463,646 - 956,748 1,282,854 - 19,510,939 18,388,975 599,433 11,084 - - 50,719,018 $			6,516,364 $ 19,000,000 4,910,339 3,493,997 9,865,224 956,748 1,282,854 1,066,516 19,510,939 18,488,675 695,066 1,895,394 8,318,689 122,306
			96,123,111 $

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4) Market risk

A. Definition of market risk

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

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

B. Value at Risk (VaR)

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

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

Statistical table for one-dayVaR of transactions	Nine months ended September 30,2023 Amount September 30, 2023 95,837 $ VaR Maximum 204,861 VaR Average 111,566 VaR Minimum 33,479 Statistical table for one-dayVaR of transactions
Nine months ended September 30,2024 Amount September 30, 2024 245,631 $ VaR Maximum 387,756 VaR Average 196,327 VaR Minimum 43,520

September 30,2024 September 30, 2024 VaR Maximum VaR Average VaR Minimum	Amount September 30,2023 Amount 245,631 $ September 30, 2023 95,837 $ 387,756 VaR Maximum 204,861 196,327 VaR Average 111,566 43,520 VaR Minimum 33,479	Amount September 30,2023 Amount 245,631 $ September 30, 2023 95,837 $ 387,756 VaR Maximum 204,861 196,327 VaR Average 111,566 43,520 VaR Minimum 33,479
Nine months ended September 30,2024 Statistical	Foreign exchange Interest Share ownership 22,062 $ 24,695 $ 249,198 $ 30,481 31,113 381,161 15,437 12,108 197,946 6,794 855 38,055 Foreign exchange Interest Share ownership 7,791 $ 18,662 $ 97,180 $ 47,965 81,522 218,572 9,045 43,921 100,899 1,597 5,259 28,108 table for VaR of various risk indicators of transactions
September 30, 2024 VaR Maximum VaR Average VaR Minimum Nine months ended September 30,2023		249,198 $ 381,161 197,946 38,055 Share ownership
September 30, 2023 VaR Maximum VaR Average VaR Minimum		97,180 $ 218,572 100,899 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 September 30, 2024, December 31, 2023 and September 30, 2023 ：

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Financial assets in foreign currencies Cash and cash equivalents Financial asset at fair value through profit or loss 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			September 30,2024	September 30,2024	September 30,2024
	USD 1,722,077 $ 11,996,472 - - 13,801,192 1,614,150 498,657 8,314,558 18,192,469	EUR 117,880 $ 3,002,672 55,045 - 1,062,438 - 58,017 2,359,495 1,173,384	AUD 2,092 $ 1,435,756 - - 228,753 - 2,434 1,312,472 95,772	RMB 37,607 $ 233,922 - 2,649,558 5,907 - 1,278 120,972 222,344	HKD 1,037,273 $ 252,647 - - 720,945 - 2,986 - 1,109,546	Others 43,608 $ 742,417 - - 317,526 - 4,026 174,332 250,685	Total
							2,960,537 $ 17,663,886 55,045 2,649,558 16,136,761 1,614,150 567,398 12,281,829 21,044,200

Note: As of September 30, 2024, foreign exchange rates of the above currencies to TWD were 1 USD = 31.650 TWD; 1 EUR = 35.380 TWD; 1 AUD = 21.930 TWD; 1 RMB = 4.523 TWD; and 1 HKD = 4.075 TWD, respectively.

Financial assets in foreign currencies Cash and cash equivalents Financial asset at fair value through profit or loss Financial assets at fair value through other comprehensive income - current Investments accounted for under the equity method Others Financial liabilities in foreign currencies Short-term loans Financial liabilities at fair value through profit or loss Bonds sold under repurchase agreements Others			December 31,2023	December 31,2023	December 31,2023
	USD 688,758 $ 10,472,325 1,307,681 - 7,462,170 1,034,759 63,591 9,381,587 9,432,548	EUR 5,394 $ 2,117,378 - - 38,366 - 565 1,880,550 29,268	AUD 1,562 $ 882,164 1,375,468 - 11,620 - 91 2,122,450 28,693	RMB 28,200 $ 47,581 - 2,615,717 3,086 - 709 34,594 59,619	HKD 856,354 $ 34,235 - - 90,733 - 4 - 102,503	Others 76,679 $ 694,094 - - 100,251 - 10,879 208,549 97,809	Total
							1,656,947 $ 14,247,777 2,683,149 2,615,717 7,706,226 1,034,759 75,839 13,627,730 9,750,440

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

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Financial assets in foreign currencies Cash and cash equivalents Financial assets at fair value through profit or loss Financial assets at fair value through other comprehensive income - current Investments accounted for under equity method Others Financial liabilities in foreign currencies Short-term loans Financial liabilities at fair value through profit or loss Bonds sold under repurchase agreements Others	USD 937,187 $ 5,422,142 1,650,358 - 8,311,788 1,071,364 37,685 5,267,824 10,191,242	EUR 37,631 $ 892,030 - - 522,123 - 181 593,346 443,813	AUD RMB HKD Others 2,305 $ 72,059 $ 889,302 $ 162,133 $ 219,579 48,717 175,834 514,898 1,303,470 - - - - 2,701,228 - - 72,160 8,128 103,388 95,171 - - - - 339 928 43 51 1,514,661 23,304 - 28,847 61,195 218,477 103,406 90,561 September 30,2023	Total
				2,100,617 $ 7,273,200 2,953,828 2,701,228 9,112,758 1,071,364 39,227 7,427,982 11,108,694

Note: As of September 30, 2023, foreign exchange rates of the above currencies to TWD were 1 USD = 32.270 TWD; 1 EUR = 33.910 TWD; 1 AUD = 20.550 TWD; 1 RMB = 4.415 TWD; and 1 HKD = 4.123 TWD, respectively.

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     - D. The total exchange gain (loss), including realized and unrealized, arising from significant foreign exchange variation on the monetary items held by the Group for the three and nine months ended September 30, 2024 and 2023, amounted to ($8,768), $80,843, $131,752 and $102,973, 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 September 30, 2024 Investment property December 31, 2023 Investment property September 30, 2023 Investment property	Total 514,817 $ 515,813 698,655	Quoted prices of the same assets in active markets (level 1) Other significant observable inputs (level 2) - $ 514,817 $ - 515,813 - 698,655	Significant non-observable inputs(level 3)
			- $ - -

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

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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 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 financial assets at fair value through other comprehensive income 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 nine months ended September 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 nine months ended September 30, 2024 and 2023, the year ended December 31, 2023, some of the unlisted stocks became the emerging stocks, therefore these stocks were transferred from Level 3 to Level 2.

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(B)Hierarchy of fair value estimation of financial instruments

Recurring fair value Non-derivative financial instruments Assets Financial assets at fair value through profit or loss - current Stock investments Bond investments Others Financial assets at fair value through other comprehensive income - current Stock investments 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		September	30,2024
	Total 20,773,792 $ 36,307,934 5,289,828 732,093 1,735 49,507 66,500 1,395,127 7,078,708 4,335,777 6,329,279	Level 1 20,512,033 $ 9,562,580 5,289,828 732,093 - - - - 7,078,708 4,324,109 2,179,013	Level 2 132,260 $ 26,745,354 - - - 49,507 - - - 11,668 4,150,266	Level3
				129,499 $ - - - 1,735 - 66,500 1,395,127 - - -

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Recurring fair value Non-derivative financial instruments Assets Financial assets at fair value through profit or loss - current Stock investments Bond investments Others Financial assets at fair value through other comprehensive income - current Stock investments Bond investments Financial assets at fair value through profit or loss - non-current Stock investments Bond investments Others Financial assets at fair value through other comprehensive income - non-current Stock investments Liabilities Financial liabilities at fair value through profit or loss - current Derivative financial instruments Assets Financial assets at fair value through profit or loss - current Liabilities Financial liabilities at fair value through profit or loss - current		December	31,2023
	Total 16,227,361 $ 29,548,975 3,085,328 395,531 2,683,149 10,004 49,776 58,500 1,168,288 6,176,815 4,837,333 4,294,497	Level 1 15,988,641 $ 7,543,011 3,085,328 395,531 2,683,149 - - - - 6,176,815 4,836,504 1,597,251	Level 2 98,555 $ 22,005,964 - - - - 49,776 - - - 829 2,697,246	Level3
				140,165 $ - - - - 10,004 - 58,500 1,168,288 - - -

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Recurring fair value Non-derivative financial instruments Assets Financial assets at fair value through profit or loss - current Stock investments Bond investments Others Financial assets at fair value through other comprehensive income - current Stock investments Bond investments Financial assets at fair value through profit or loss - non-current Stock investments Bond investments Others Financial assets at fair value through other comprehensive income - non-current Stock investments Liabilities Financial liabilities at fair value through profit or loss - current Derivative financial instruments Assets Financial assets at fair value through profit or loss - current Liabilities Financial liabilities at fair value through profit or loss - current		September	30,2023
	Total 17,443,078 $ 17,747,717 3,288,765 348,841 2,953,828 9,793 49,765 58,500 1,260,826 4,910,339 5,533,897 3,493,997	Level 1 17,165,330 $ 7,057,676 3,288,765 348,841 2,953,828 - - - - 4,910,339 5,519,315 1,675,040	Level 2 137,235 $ 10,690,041 - - - - 49,765 - - - 14,582 1,818,957	Level3
				140,513 $ - - - - 9,793 - 58,500 1,260,826 - - -

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

		Nine months ended September 30,2024	Nine months ended September 30,2024	Nine months ended September 30,2024	Nine months ended September 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		September 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	8,666) ($ - $ - $ 8,269) ( - - 8,000 - - - 226,839 - Year ended December 31,2023			- $ - - -	2,000) ($ - - -	- $ - - -	129,499 $ 1,735 66,500 1,395,127
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) ( - - Nine months ended September 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		September 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	2,719 $ 6,811) ( 10,600 -	- $ - - 80,919	4,800 $ - 15,000 -	- $ - - -	7,500) ($ - - -	- $ - - -	140,513 $ 9,793 58,500 1,260,826

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

September 30,2024	Fair value	Valuation technique Significant unobservable input Price to book ratio multiple Price to earnings ratio multiple Discount for lack of marketability Latest transaction price Net asset value Not applicable Net asset value Not applicable Market price net profit after tax multiplier Price to book ratio multiple Discount for lack of marketability Market approach Market approach	Range (weighted average)	Relationship of inputs to fair value
Financial assets at fair value through profit or loss - current Financial assets at fair value through profit or loss - non-current Venture capital shares Others Financial assets at fair value through other comprehensive income - non-current Unlisted stocks Unlisted stocks	1,735 66,500 1,395,127 129,499 $		1.95~5.97 18.51 25% Not applicable Not applicable Not applicable 19.53~22.28 2.53 25%	The higher the discount for lack of marketability, the lower the fair value Not applicable Not applicable Not applicable The higher the discount for lack of marketability, the lower the fair value The higher the multiple, the higher the fair value The higher the multiple, the higher the fair value

(Blank below)

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December 31,2023	Fair value	Valuation technique	Significant unobservable input	Range (weighted average)	Relationship of inputs to fair value
Financial assets at fair value through profit or loss - current Financial assets at fair value through profit or loss - non-current Venture capital shares Others Financial assets at fair value through other comprehensive income - non-current September 30,2023 Unlisted stocks Unlisted stocks	10,004 58,500 Fair value 1,168,288 140,165 $	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	9,793 58,500 1,260,826 140,513 $	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	1.71~4.99 28.05 25% Not applicable Not applicable Not applicable 21.12~27.24 2.55 25%	The higher the discount for lack of marketability, the lower the fair value Not applicable Not applicable Not applicable The higher the discount for lack of marketability, the lower the fair value The higher the multiple, the higher the fair value The higher the multiple, the higher the fair value

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(E) Valuation process for fair value at Level 3

The parent company’s risk management department is responsible for the verification of fair value categorized in Level 3. The department assesses the independence, reliability, consistency and representativeness of the source information, regularly verifies the valuation models and calibrates the parameters to ensure the valuation process and results are in compliance with 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
September 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
	1,295 $ 1,295) ($ Not applicable Not applicable Not applicable Not applicable - - Recognised inprofit or loss		- $ - $ - - - - 13,951 13,951) ( 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) (

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Recognised in other
Item Recognised in profit or loss comprehensive income
Favourable Unfavourable Favourable Unfavourable
September 30, 2023 change change change change
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September 30, 2023		change		change	c	hange	c	hange
Financial assets at fair value through
profit or loss - current
Unlisted stocks	$	1,405	($	1,405)	$	-	$	-
Financial assets at fair value through
profit or loss - non-current
Venture capital shares	Not	applicable	Not	applicable		-		-
Others	Not	applicable	Not	applicable		-		-
Financial assets at fair value through
other comprehensive income
- non-current
Unlisted stocks		-		-		12,608	(	12,608)

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 September 30, 2024, December 31, 2023 and September 30, 2023, the capital adequacy ratios were 277%, 299% and 328%, respectively, as required by the regulations.

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7) Assets and liabilities of trust accounts

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

(Blank Below)

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8) Status of the company in the limitations on financial ratios imposed by futures trading act, and the related implementation The table below is prepared according to “Regulations Governing Futures Commission Merchants”.

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September 30, 2024 September 30, 2023
Article Calculation formula Standard Enforcement
Calculation Ratio Calculation Ratio
Stockholders’ equity 3,135,065 2,019,028 Met the
17 25.17 40.05 ≧ 1
(Total liability－futures trader’s equity) 124,566 50,408 requirement
17 Current assets 5,573,704 44.74 5,966,802 118.37 ≧ 1 Met the
Current liabilities 124,566 50,408 requirement
Stockholders’ equity 3,135,065 2,019,028 ≧ 60% Met the
22 783.77% 504.76%
Minimum paid-in capital 400,000 400,000 ≧ 40% requirement
Adjusted net capital 2,663,913 1,541,516 ≧ 20%
Met the
22 Total amount of customer margins required 330.46% 193.31%
806,113 797,432 ≧ 15% requirement
for the open positions of futures traders
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9) Status of the subsidiary in the limitations on financial ratios imposed by the futures trading act and the related implementation The table below is prepared according to “Regulations Governing Futures Commission Merchants”.

Article	Calculation formula	September 30,2024	September 30,2024	September 30,2023	September 30,2023	Standard	Enforcement
		Calculation	Ratio	Calculation	Ratio
17	Stockholders’ equity (Total liability－futures trader’s equity)	2,971,840 309,399	9.61	2,805,510 241,960	11.59	`≧`1	Met the requirement
17	Current assets Current liabilities	38,459,109 36,926,211	1.04	26,184,204 24,798,072	1.06	`≧`1	Met the requirement
22	Stockholders’ equity Minimumpaid-incapital	2,971,840 645,000	460.75%	2,805,510 645,000	434.96%	`≧`60% `≧`40%	Met the requirement
22	Adjusted net capital Total amount of customer margins required for the open positions of futures traders	2,626,686 6,322,866	41.54%	2,429,451 3,675,434	66.10%	`≧`20% `≧`15%	Met the requirement

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10) Prospective risk for futures trading

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

(Blank below)

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13. OTHER DISCLOSURE ITEMS

1) Information about significant transactions

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

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Details of transactions (Nine months ended September 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 3,693,659 Note 4 1.88%
0 President Securities Corp. President Futures Corp. 1 Deposit-out 34,000 Note 4 0.02%
0 President Securities Corp. President Futures Corp. 1 Accounts receivables 2,659 Note 4 0.00%
0 President Securities Corp. President Futures Corp. 1 Deposit-in 16,000 Note 4 0.01%
0 President Securities Corp. President Futures Corp. 1 Other payables 1,469 Note 4 0.00%
0 President Securities Corp. President Futures Corp. 1 Equity for each customer in the account 9,852 Note 4 0.00%
0 President Securities Corp. President Futures Corp. 1 Future commission revenue 27,975 Note 4 0.27%
0 President Securities Corp. President Futures Corp. 1 Clearing charges 19,645 Note 4 0.19%
0 President Securities Corp. President Futures Corp. 1 Other non-operating revenues - Compensation of directors 6,176 Note 4 0.06%
0 President Securities Corp. President Capital Management Corp. 1 Expense from investment advisory 37,922 Note 4 0.37%
0 President Securities Corp. President Capital Management Corp. 1 Other non-operating revenues - Rent revenue 2,987 Note 4 0.03%
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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 company and subsidiaries or between subsidiaries refer to the same transaction, it is not required to disclose twice. For example, if the parent

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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 operating activities	Balance on September 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 Futures Corp. President Capital Management Corp. President Securities (HK) Ltd.	Taipei Taipei Hong Kong	1994.03.01 1997.04.15 1994.07.26	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	Futures brokerage and dealer Securities investment consulting Securities dealer, underwriting, brokerage and consulting (Note 4)	644,650 $ 326,000 848,735	644,650 $ 326,000 848,735	63,817,303 30,000,000 192,600,000	96.69% 100% 100%	2,873,562 $ 298,252 847,930	632,095 $ 63,133 200	294,095 $ 12,271) ( 7,534	284,363 $ 12,200) ( 7,534	222,722 $ - -	Subsidiary of the Company Subsidiary of the Company Subsidiary of the Company

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Name of the investor	Name of the investee company	Location	Date of registration Reference number and the date of approval letter issued byFSC 1992.09.03 2000.07.19 (89) Tai-Cai-Zheng (2) Letter No.56407 2008.04.29 (Note2) 2013.10.29 2013.08.08 Jing- Guan-Zheng-Chuan Letter No.1020028529 1992.09.03 2000.07.19 (89) Tai-Cai-Zheng (2) Letter No.56407	Major operating activities	Balance on September 30, 2024 Original	investment	Shares Percentage EndingBalanc	Shares Percentage EndingBalanc	Book vlaue e	Revenue of investee company	Net income (loss) of investee company Investment income (loss) recognised by the Company 620,858 $ 263,637 $ 56,667 56,683 6,435) ( 6,431) ( 620,858 212	Cash dividends	Notes
						Balance on December 31, 2023
President Securities Corp. President Securities Corp. President Securities Corp. President Insurance Agency Corp.	Uni-President Asset Management Corp. President Insurance Agency Corp. PSC Venture Capital Investment Limited Company Uni-President Asset Management Corp.	Taipei Taipei Taipei Taipei		Investment Trust Insurance Agent Consultation of investment management and venture capital; other unprohibited or unrestricted businesses beyond the permit Investment Trust	667,622 $ 10,000 300,000 478	667,622 $ 10,000 300,000 478	14,904,630 1,000,000 30,000,000 12,000	42.46% 100% 100% 0.03%	852,273 $ 80,374 239,780 691	1,673,685 $ 135,564 955) ( 1,673,685		219,218 $ 41,621 - 176	Associates Subsidiary of the Company Subsidiary of the Company Associates

Note 1: As FSC was established in July, 2004, President Futures Corp. was apporved by the Investment Commission, Ministry of Economic Affairs. Note 2: When securities corporations invest in domestic business within FSC's limitation, there is no need to obtain the approval from FSC in advance, according to Tai-Cai-Zheng (2) Letter No.0930000005. Therefore, there was no reference numbers for President Insurance Agency Corp.

Note 3: Subsidiary President Securities (HK) Ltd. was 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. 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.

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3) Information of overseas branches and representative office: None.
4) Disclosure of investment in Mainland China

a) Information of investment in Mainland China

Investee in Mainland China	Main business activities	Paid-in capital (Note 4)	Investment method (Note 1)	Accumulated amount of remittance from Taiwan to Mainland China as of January 1, 2024	Amount remitted from Taiwan to Mainland China/ Amount remitted back to Taiwan for the nine months ended September 30,2024	Amount remitted from Taiwan to Mainland China/ Amount remitted back to Taiwan for the nine months ended September 30,2024	Accumulated amount of remittance from Taiwan to Mainland China as of September 30, 2024	Net income of investee as of September 30, 2024	Ownership held by the Company (direct or indirect)	Investment income (loss) recognized by the Company for the nine months ended September 30, 2024 (Note 2)	Book value of investments in Mainland China as of September 30, 2024	Accumulated amount of investment income remitted back to Taiwan as of September 30, 2024
					Remitted to Mainland China	Remitted back to Taiwan
Jin Yuan President Securities Co., Ltd.	Securities brokering, securities dealing, securities underwriting and sponsoring service	$ 6,784,500	Directly invest in a company in Mainland China	$ 3,138,169	$ -	$ -	$ 3,138,169	($ 169,737)	49%	($ 83,171) The financial statements that are reviewed by international accounting firm which has cooperative relationship with accounting firm in R.O.C.	$ 2,649,558	$ -

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

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Company name	Accumulated amount of remittance from Taiwan to Mainland China as of September 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 $	$ 20,682,386

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.

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Note 2: In the ‘Investment income (loss) recognized by the Company for the nine months ended September 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 Number of shares held (thousands) Shareholding ratio Uni-President Enterprises Corp. 417,517 28.67%

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

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

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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”.

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3) Profit or loss of segments information

		Three months ended	Three months ended	Three months ended	September 30,2024	September 30,2024	September 30,2024
Brokerage segment	Quantitative Tradingsegment	Proprietary Tradingsegment		Financial Instrument segment		Reinvestment segment	Other operating segments	Others 42,154 $ 22,828 $	Total
1,456,735 $ 494,736 $	367,665 $ 53,977 $	302,197) ($ 305,065 $ 364,301) ($ 75,210 $ Three months ended			267,906 $ 523,354 $ 146,328 $ 234,067 $ September 30,2023				2,660,682 $
									662,845 $

Brokerage segment	Quantitative Tradingsegment		Proprietary Tradingsegment	Financial Instrument segment			Other operating segments	Others 67,808 $ 90,066 $	Total
1,135,112 $ 334,804 $	266,518 $ 44,923 $								2,620,807 $
									863,107 $

Brokerage segment	Quantitative Tradingsegment		Proprietary Tradingsegment	Financial Instrument segment		Reinvestment segment	Other operating segments	Others 295,150 $ 7,874 $ Others 159,922 $ 108,638 $	Total
4,118,785 $ 1,357,688 $ Brokerage segment	1,432,553 $ 542,171 $ Quantitative Tradingsegment		1,455,172 $ 1,047,219 $ 830,036 $ 1,080,244 $ 1,051,692 $ 377,151 $ 423,416 $ 244,006 $ Proprietary Tradingsegment Financial Instrument segment Reinvestment segment Other operating segments Nine months ended September 30,2023						10,259,159 $
									4,003,998 $
									Total
2,879,318 $ 689,236 $	772,199 $ 256,416 $		1,390,833 $ 1,019,615 $	624,305 $ 126,079 $		760,549 $ 350,488 $	763,623 $ 125,910 $		7,350,749 $
									2,676,382 $

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

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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)

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AI assistant

PSC — Interim / Quarterly Report 2024

52209_rns_2024-12-20_14d29ae7-60da-4b99-b5fb-5851b3439935.pdf

PRESIDENT SECURITIES CORPORATION AND

SUBSIDIARIES

CONSOLIDATED FINANCIAL STATEMENTS AND

Introduction

Scope of Review

Basis for Qualified Conclusion

Qualified Conclusion

Lin, Se-Kai

Independent Auditors

Kuo, Puo-Ju

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

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

PRESIDENT SECURITIES CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME THREE MONTHS AND NINE MONTHS ENDED SEPTEMBER 30, 2024 AND 2023

PRESIDENT SECURITIES CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME THREE MONTHS AND NINE MONTHS ENDED SEPTEMBER 30, 2024 AND 2023

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

PRESIDENT SECURITIES CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

NINE MONTHS ENDED SEPTEMBER 30, 2024 AND 2023

PRESIDENT SECURITIES CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

NINE MONTHS ENDED SEPTEMBER 30, 2024 AND 2023

PRESIDENT SECURITIES CORPORATION AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS NINE MONTHS ENDED SEPTEMBER 30, 2024 AND 2023

1. HISTORY AND ORGANIZATION

4. SUMMARY OF MATERIAL ACCOUNTING POLICIES

1) Compliance statement

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

4) Bonds purchased under resale agreements

5) Margin loans receivable

6) Customer margin account

7) Accounts receivable

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

13) Property and equipment

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

D. Special reserve

30) Brokerage handling fee revenue

31) Revenues from underwriting business

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

33) Interest income

value through profit or loss

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

39) Net gain (loss) from derivatives

40) Expected credit impairment loss and reversal of impairment gain

41) Other operating income

42) Handling charges

43) Financial costs

PSC Interim / Quarterly Report 2024

`－` I. Lease transactions lessee